2. OBJECTIVE
A new company NEWBE is planning to launch a new product in the category of
makeup products. To reach target market segment, company wants to understand
the factors affecting consumer’s cosmetic consumption as well as decision making
process for purchasing the cosmetic products to plan for their future advertising
campaigns.
This research will help us to make strategies that our company can adopt to attract
maximum customers
3. Identifying Variables:
•Dependent variable:
Consumer Buying
Behaviours
•Independent Variables=
Price, Brand Loyalty,
Quality, medicinal
benefits, Health
benefits(Herbal/organic),
Variety, Free Samples
Additional Preferences
Type of
data:
Primary &
Secondary:
Internet,
Magazines,
Newspaper
Instruments
of Data
Collection:
Survey
Questionnaire
s, Focus
Group
Interviews
Sampling Method &
Sampling Size:
Convenience Sampling as
we have conducted
surveys with people who
are easily approachable:
& 100 is the sampling size
METHODOLOGY AND DESIGN
4. What’s your Occupational Status? [ Working/Non-Working], What is your age?
Please specify your Income Group: 0 - 20000, 20000 – 30000, 30000 – 40000,
40000 Above
Do you use make up products? If yes, then which brand do you prefer?
“The quality of the product is important while buying it”- Likert scale
“Having varied options influences my willingness to buy the product”-Likert
“I always buy make-up products which are herbal/organic”- Likert Scale
“I always buy make-up products which are herbal/organic”- Likert Scale
“I prefer being price conscious while buying make-up products”- Likert Scale
Will you consider buying a product if it has a free sample of a new product ?
What additional preferences you look for in a product?
QUESTIONNAIRE
5. Need
Recognition
• Buyer becomes aware of a particular unsatisfied need/problem/opportunity- Recognition of a particular brand
eg. Maybelline, Revlon, Nivea etc.
Search for
Information
• Customer recalls how he/she has solved such a problem in the past, if relevant
• Consumer will try to solve the problem by asking a friend or going to the market to seek advice concerning
which product will best serve the need
Evaluation of
Alternatives
• Consumers evaluate alternatives according to various criteria such as features, characteristics and benefits
that a consumer desires in solving the specified problem.
Purchase
Decision
• Selection of a brand and the retail outlet at which to purchase the desired product. And final step of
transaction with either cash or credit
Post
Purchase
Evaluation
• If post-purchase evaluation is favorable, the customer will be satisfied with the process.
• If the product’s perceived performance level is below expectation, then this will in due course lead to
dissatisfaction
CUSTOMER’S DECISION MAKING PROCESS
6. Need
Recognition
• INTERNAL STIMULI: fashion consciousness, wishing to emulate others and the need for greater self-esteem
• EXTERNAL STIMULI: actions and opinions of friends, doctors, beauticians, advertisements and others
Search for
Information
• Product range availability, price, product suitability and use and the nature of the products. Opinions of
family, friends, doctors and beauticians, as well as reference to company websites and advertisements
Evaluation
of
Alternatives
• Price, quality, brand image, ingredients, suitability, availability and other relevant features
Purchase
Decision
• Here consumers evaluate the purchase decision considering various risks like functional risks, physical
risks, financial risks and psychological risks.
Post
Purchase
Evaluation
• Customer satisfied- Likely to use the same cosmetics brand in future and gives rise eventually to brand
loyalty.
• If particular products do not perform as per their expectations- Consumers
likely to switch to another brand if one is available and it is perceived to exceed the performance of the
current product.
FACTORS AFFECTING CUSTOMER’S DECISION MAKING
PROCESS PROCESS
7. Geographic Segmentation
The company has to focus more
on Tier-1,Tier-2 and Tier -3
cities
Demographic Segmentation
Based on the age group, income
levels and social class has to be
considered for the demographic
segmentation.
Psycho demographic
Segmentation
Costumer lifestyle and
Personality fall under this
category.
Behavioral Segmentation
Divide the market into
beginners and advanced users.
Young beginners are target
market because they pursue
beauty and appearance. Pricing
will also be a deciding factor for
this age group.
SEGMENTATION
STRATEGY
SEGMENTATION STRATEGY
8. Search
The company increases the visibility of the product by increasing the product
portfolio and also by occupying the shelf space in the stores
Alternative Evaluation
The company has to check the price and products offered by competitors and has to
maintain a differentiating factor. Costumer retention has to be maintained through
out which can be only possible by capitalizing on the price and availability of the
wide variety of products in stores. Providing beauty services along with sale of
products helps to improve costumer retention.
Outlet Selection
The outlet selection has to be based on the population distribution across different
regions.In Tier 3 cities the product has to be available in all the beauty parlors,
Fancy stores and in Tier-1& Tier-2 cities standalone stores has to be opened to
provide services
IMPLEMENTATION STRATEGY
9. •Create customer review blogs under each product listing
to collect feedback on product range, delivery & service.
•Urge customers to participate in feedback surveys by
offering discount coupons.
•Use mobile apps(make up apps) to provide a virtual
experience and use the same as a source to accumulate
feedback & promote new products.
•Create visibility on social media(facebook, twitter) for
customers to provide feedback & make recommendations.
POST
PURCHASE
FEEDBACK
10. RECOMMENDATIONS &
CONCLUSION
Surveys results provided various insights to balance quality & price of makeup
products with varied options in color, fragrances & other choices
NEWBE should engage beauty & lifestyle bloggers into product testing inviting
them to test products, provide feedback & give reviews on their blogs, social media,
word of mouth, Youtube, etc.
NEWBE should provide free samples with already existing successful products.
Upper middle class female customers are looking for various benefits from makeup
cosmetic products like looking good & glamorous, hygiene & long lasting effects are
other benefits which a customer is looking for
Marketers should find it useful to understand how loyalty factors can affect
consumer-buying behavior in the marketplace, which can help in segmenting
consumers and markets for their brands and marketing communication.
