Perception and buying behaviour of modern consumers towards personal care products


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Perception and buying behaviour of modern consumers towards personal care products

  1. 1. Research Report On“PERCEPTION AND BUYING BEHAVIOUR OF MODERNCONSUMERS TOWARDS PERSONAL CARE PRODUCTS” Submitted for the permission of pursuing research project report MBA-043 Under the Guidance of: Mr. Vinay Kumar (Lecturer) Submitted By: Swamit Gupta (MBA IV Semester) Roll no 0805470089 SESSION 2009-10 DEPARTMENT OF MANAGEMENT Babu Banarasi DasNational Institute of Technology & Management Lucknow (U.P.) 1
  2. 2. CANDIDATE’S DECLARATIONI SWAMIT GUPTA, student of MBA at BABU BANARSI DAS NATIONAL INSTITUTEOF TECNOLOGY AND MANAGEMENT LUCKNOW, 2008-10 batch, hereby declarethat the Project Report titled ―PERCEPTION AND BUYING BEHAVIOUR OF MODERNCONSUMERS TOWARDS PERSONAL CARE PRODUCTS‖ is the outcome of my ownwork and the same has not been submitted by any Institute for the award of any degreeor any Professional diploma.Date: SWAMIT GUPTA MBA IV SEM ROLL.NO.0805470089 2
  3. 3. ABSTRACT The first and most objective of my study is comparative study of perception andconsumers buying behavior regarding personal care products. The study of consumerbehavior is the most important factor for marketing of any goods and services. Theconsumer behavior suggest how individual, groups and organization select, buy, useand dispose of goods, services, ideas or experience to satisfy their needs and wants.It also clues for improving or introducing products or services, setting price, devisingchannels etc. Since liberalization 100% FDI is allowed in India. This has attracted foreigncompanies to penetrate the Indian market. The marketers always look for emergenttrends that suggest new marketing opportunities and here in India a lot ofopportunities are available. The personal care sector is one of the best and important sectors at thepresent time. There is a lot of future opportunity in this sector. The increasing trend ofdifferent cosmetic products, beauty care products, skin care products, hair careproducts etc fuels the market growing opportunity for cosmetic products. From the last couple of years, the demand of personal care products is not onlyincrease in only women but also it increases in men.e.g. Himani Fair and Handsome-“mardon wali fairness cream”. Like that there are many opportunities has been arisingand change is made in consumers’ perception 3
  4. 4. ACKNOWLEDGEMGNT Success of my project depends upon two factors Internal and External factorincludes sincere efforts, dedication to the work and good potential whereas internalfactors includes cooperation and supports of potential customers who patiently hearsabout the schemes and plans of products and then gives response. Good guidance and cooperation from others are such external factors, whichaffects the percentage of success. Though in completing this project I tried my levelbest but it could not be possible without proper guidance of my profs. I wants to give my thanks to Mr. Adnan Khan for his valuable guidance andsuggestions, which I sincerely value and appreciate. 4
  5. 5. Indexa) Acknowledgementb) Prefacec) Executive summaryd) contents1. Introduction2. Back Ground of the Study3. History of cosmetic products in india4. Scope of Study5. Need of Study6. Objective of the study7. Research Methodology8. Problems & Limitations9. Finding, Analysis & Interpretations10. Suggestion11. Conclusion12. Questionnaire13. Bibliography 5
  7. 7. INTRODUCTION TO THE TOPIC Generally, personal care products are these products which a consumer usesfor his personal purpose. It includes different types of cosmetic and skin care productslike talc, cold cream, fairness cream, toothpaste, toothbrush, perfume, deodorant, hairoil, shampoo, soap, and all type of baby care and beauty care products. These are thecore FMCG products. Any person need for these products every day. Personal care products are a part of FMCG industry. In some words we can saythat personal care products are the backbone of FMCG industry. As per the time passesaway, the demand of personal care products are also increasing day per day and futureof these products are also very bright and profitable. There was a time when consumers not spend too much amount on the personalcare products. But in those days, they are not only eager for spending more money onthe cosmetic products, but at the same time they are looking for a good and prestigiousbrand for the particular product. Modern media and advertisement plays an importantrole in the increasing of demand of personal care goods. People of metro cities are toomuch brand conscious but if we look at the people of semi urban and rural areas, theyare also looking for a good brand for the particular product. Himani Fair and Handsome Mardon Wali Fairness Cream, Thanda Thanda CoolCool Navratna talc, International Lux etc. are the some of the front drive ofadvertisement in the way of the success of personal care products. 7
  9. 9. Background of the Study The Indian cosmetic Industry has witnessed rapid growth over the last couple ofdecades. In that time the range of cosmetic and beauty products in India has widenedtremendously. Beauty products manufacturers in India mostly cater to the great demandfor cosmetics and toiletries that fall into the low or medium-price categories as thegreatest demand in India has always been for these economically priced products. However, in recent years in the cosmetics market India competitors have begunto manufacture products to cater to an International need. For instance, herbalcosmetics from India have a great demand in the overseas market and many cosmeticproducts that are manufactured in India today are supplied to international suppliers ofbranded cosmetics products like The Body Shop for example. New facts that have beenunveiled by a series of cosmetics business market analysis India reveal that manyInternational companies are now outsourcing cosmetics to India and that the industry ofcosmetic products India is growing at an average rate of almost twenty percentannually. This increase is attributed to two main factors. The first being the increase forthe demand in Indian cost-effective products and the second being the increasedpurchasing power of the average Indian. There are also many reasons for the increased demand for cosmetic 9
  10. 10. products in particular. With the introduction of satellite television and a wide array oftelevision channels as well as the Internet, the average Indian consumer is constantlybombarded with advertisements and information on new cosmetic products which oftentranslates into the desire to purchase them. A boom in the Indian fashion industry hasalso been linked to the increased awareness of Indian people about their appearancesand consequently contributed to an increase in the demand for cosmetic products. However, even with the massive surge in the popularity of cosmetic products,statistics have shown that the average Indian consumer spends much less on cosmeticproducts than consumers from every other part of the world. This means that the Indiancosmetic industry has an even greater potential for growth than it is presentlyexperiencing. In the entire range of products that fall within the territory of the Indiancosmetic and toiletries market, the most popular items are color cosmetics, of which nailvarnish, lipsticks and lip glosses account for the most sales. In this area, popular localbrand names include Lakme and Revlon. Skin-care cosmetics have experienced aslower growth and products such as anti-wrinkle creams, cleansers and toners, forinstance are not as popular as facial creams, moisturizers and fairness creams in thisgenre. Companies like Ponds and Fair and Lovely rule the roost in this segment.Few cultures valued beauty and cosmetic products in ancient times as the Egyptiansdid. The history of ancient cosmetics can also be traced back to the culture of ancient 10
  11. 11. Greece and make-up was also popular in the Roman Empire. There is sufficientevidence to suggest that people from all these three cultures used hair dyes forinstance. These people used herbal concoctions with components like henna, sage andchamomile to darken their hair. It was only in the renaissance period that blond hairbecame fashionable.Although cosmetic products have undergone many changes in modern times, the basicconcept of using cosmetics to enhance the features of good health has not changed.For instance, blush-on is used to conceal pale present a picture of rosy cheeks asopposed to pale skin and nail polish can be used to conceal brittle or dry nails. Thehistory of makeup cosmetics however is tarnished by the ill-effects that were oftenexperienced after applying many ancient make-up products. This was because manysuch products were created using dangerous components and also because cleansinglotions are not anywhere to be found in the early history of cosmetics 11
  12. 12. History of cosmetic products in India:- The history of the cosmetics industry includes very dark chapters in Europeanand Western countries from about six centuries back. Mixtures and pastes were thenused to whiten the face, a practice which remained popular till over four hundred yearslater. The early mixtures that were used in Europe for this purpose were so potent thatthey often led to paralysis, strokes or death. In that era, another method that wasemployed to make the skin appear fairer was to bleed oneself using leeches. Up to the late nineteenth century, women in Western countries may havesecretly worn make-up made from mixtures of household products, as make-up wasthen deemed the domain of film stars. Cosmetics were only openly put up for sale in theearly part of the twentieth century for the first time. Tanned or darker skin tones becamepopular only as late as the early twentieth century. It was in this era that tanning the skinbecame a popular fad. The history of cosmetics in the 1930s and 1940s shows how the fashion ortrend with respect to lipstick colors was changed annually, getting darker and closer tored every passing year. 12
  13. 13. Cosmetic products were once the sole domain of film personalities and stageactors. The use of cosmetics in those eras was restricted to the purpose of creating adramatic effect. However, with the passage of time, women started using cosmetics to highlighttheir facial features as well. In India beetroot was used to redden the cheeks, while inWestern countries, certain chemicals were used to darken the hair. Finally, because ofthe world-wide demand for make-up for the average person, cosmetics finally becameavailable for sale to the common man. Some common cosmetics include lipsticks,blush-on or rouge as it is sometimes known, eyeliners, mascaras, foundations and eyeshadows. Lipsticks are made using color pigments, oils, waxes and often fragrances aswell. Different cosmetic companies also add various other substances to create othereffects with lipstick. The oldest use of lipstick can be traced back to almost fivethousand years ago, when women of the Mesopotamian culture and of the Indus valleycivilization are believed to have crushed semi- precious stones and mixed them into apaste to apply to the lips for added color. Through the centuries, lipstick remainedpopular with women of different cultures and while some ancient lipstick-manufacturingtechniques employed the use of potent and toxic chemicals, others used vegetable oranimal extracts. Today, a wide range of lipsticks are available in the cosmetic market to 13
  14. 14. cater to the various needs of the consumer. There are organic and natural lipsticks aswell as lip-gloss and lip pencils which come in a wide variety of colors to suit a hugespectrum of skin tones. Worldwide, lipsticks are the most popular cosmetic in thecosmetic market today. Perfume is another popular cosmetic product. It is a fragrant mixture made usingvarious oils and aromatic compounds. Usually every perfume manufacturer keeps theexact combination of ingredients a secret, especially in the case of perfumes that aremanufactured by large brand names. Rouge or blush-on is a cosmetic which is used toredden the cheeks. In ancient times, women resorted to pinching their cheeks, or usingthe extracts of mulberries, beetroot or other such extracts to color their cheeks andacquire a healthy look. Typically women use this product to highlight cheekbones butnewer make-up techniques involve using rouge to add color to the apple of onescheeks. Rouge is available as a pressed powder or as a cream-based paste. Eye liner is used to emphasize the shape of the eyes. Today there are manykinds of eyeliners like liquid eyeliners, or kohl and kajal, all of which can be used tocreate different effects and looks. Smoky eyes and the gothic look are in voguenowadays and these looks can be created using kohl over and under the eye withmetallic gold or silver eye shadow. 14
  15. 15. SCOPE OF THE STUDY 15
  16. 16. Scope of the Study The Indian cosmetic Industry has witnessed rapid growth in the last couple ofyears, growing at a CAGR of around 7.5% between 2006 and 2008. With improvingpurchasing power and increasing fashion consciousness, the industry is expected tomaintain the growth momentum (with marginal slowdown due to economic slowdown)during our forecast period (2009-2012). It is projected to grow at a CAGR of around 7%during the forecast period, says Indian Cosmetic Sector Analysis (2009-2012)”.1. Increase in the Demand of Beauty products. --- From the last few years, the demand of beauty products in India has been increased in a good speed. Not only women but men are also very conscious towards their face and other personal care. Many companies are engaged in producing the products according to them. So, the market is seeking to be very bright.2. A Large Rural Urban Penetration – The penetration ratio in rural market is very challenging and prospective. So, there is a good scope in these areas. 16
  17. 17. 3. Opportunity in Semi-Urban Market—There is a good opportunity of cosmetic products in the semi urban market. The people are looking towards a good brand name and quality within them.4. An Untapped Rural Market— There is an untapped market is available for cosmetic products in the rural area in India. It is an awesome opportunity for these companies. 17
  18. 18. Need of the Study The study is done for getting a deep knowledge and idea about Indiancosmetic//personal care sector. The need or objective of the study is to know the howmuch consumers give preferences to the brand of cosmetic goods whether thecustomers are satisfied with the cosmetic products of the company and how farthe company is able to satisfy the customer in terms of quality and cost factorssince in today’s modern era customers are the focus for any company, anyorganization that without satisfying them no company can survive in this globalcompetitive age. Non satisfaction of the potential customers can lead them to switchover to another one. Now the policy every company or organization is to providesatisfaction as there exists a lot of competition for them. Hence it becomes necessary toconduct a comprehensive research in terms of customer satisfaction so that it is able toknow how far it stands before others. This also helps to judge whether if there is any lagin the policy and could take immediate action to rectify it. The need of this project also arose because an extensive survey can help thecompany whether the work done by the company in the area of new products isable to satisfy the customers or not. The major focus of the research conductedtherefore is to discover the factors that people are aware about the upcomingnew products and the attribute of the product which attracted them for a trial. Thestudy was restricted to only around 50-60 percent of our target audience, because therespondents included in the study are people who are regular user of cosmetic goods 18
  19. 19. OBJECTIVE 19
  20. 20. RESEARCH OBJECTIVE To know about consumer’s perception and buying behavior about cosmetic goods when they purchased it. SUB OBJECTIVE To determine the actual demand of consumers. To know about the performance of popular brands of different companies in market. 20
  22. 22. MAJOR COSMETIC COMPANIES (WORLD WIDE) Company: 1. L’Oréal 2. Procter & Gamble 3. Unilever 4. Estée Lauder 5. Shiseido 6. Avon 7. Beiersdorf 8. Johnson & Johnson 9. Alberto-Culver 10. Henkel 11. Kao 12. Limited 13. LVMH 14. Colgate-Palmolive 15. Kanebo 16. Coty 22
  23. 23. 17. Yves Rocher18. Mary Kay19. Kosé20. Alticor 23
  24. 24. MAJOR INDIAN COSMETIC COMPANIES:- In India, there is a complete range of cosmetic includes regionalcompanies, national and MNCs. Hindustan Unilever leads the companies which isfollowed by Godrej consumer care, Procter & Gamble, Emami, Dabur and Calvin Care.A broad list of these companies has been given below:-1. HUL2. GODREJ CONSUMER CARE.3. EMAMI4. ITC.5. DABUR.6. PROCTER & GAMBLE.7. CALVIN CARE.8. HANKEL INDIA LTD.9. MARICO.10. RECKITT BENCKISER (INDIA) LTD. 24
  26. 26. 1. HUL (Hindustan Unilever Ltd.)CEO:- Nitin Pranjape. Hindustan Unilever Ltd. Has takes first position in the cosmetic products selling inIndia. Every one out of two peoples uses the products of HUL. There is a wide range ofvariety of products of HUL in India.Product Range (Cosmetic):- Lux, Lifeboy, Hamam,Liril, Breeze, Dove, Pears, Rexona Fair&Lovely, Ponds,Vasaline, Avience , Sunsilk,Clinic ,Axe, Ayush ,Lakme Surfexel,Rin,Sunlight, Wheel,Closeup,,Pepsodent 26
  27. 27. 2. GODREJ CONSUMER PRODUCTS LTD.CEO:- Adi Godrej . Godrej Consumer Care is one of the biggest companies in the field of FMCGbusiness. Every one out of three Indians uses the product of Godrej. It also has a wideverity of cosmetic products.Product Range (Cosmetic):- Cinthol, Fair glow, Evita, No. 1, Vigil, Shikakai, Colour soft, Nupur(mehandi),No.1, Powder hair die, Renew (hair colour), Cinthol (shampoo,deo,talc, Saving gel),Ezee 27
  28. 28. 3. EMAMICEO: - N.VENKAT.Product Range (Cosmetic):- BoroPlus, Fair &Handsome, Fast Relief, Hair Life, Malai Kesar Cold Cream,Navratna Oil(Oil, Lite, Extra Thanda, Cool Talc) Baby massage oil, 28
  29. 29. 4. ITCCEO: - Y.C.DeveswerProduct Range (Cosmetic):-Essenja De Wills, Inizio, Femme, Fi ma(5varities), Vivel,Superia 29
  30. 30. 5,DABUR :-CEO:- Sunil Duggal.Product Range (Cosmetic):-Amla hair oil., Amla light oil, vatika, anmol sarson Amla,Gulabary,Crème, lotion, 30
  31. 31. 6. P&GCEO:-A.J.LAFELYProduct Range (Cosmetic):-Pantene,Head & Shoulders, Gillette, Safeguard, Zest, Old Spi Olay, Aussie(shampoo), 31
  32. 32. 7. MaricoCEO: - Saugat GuptaProduct Range (Cosmetic):-Parachute, Medikar, Hair & Care, Santi Amla, Nihar Cemelia, Kaya Lite, Kaya SkinCare, Aromati 32
  33. 33. 8. CAVIN KARECEO: - C.RanganathanProduct Range (Cosmetic):-Chick, Nyle, Indica, meera badam shampoo, Karthika, Fairever, Spinz(talk&deo.),nylecoldcream 33
  34. 34. OTHERCOMPANIES:- There are some other companies engaged in the business of cosmeticproducts. Including them, some are the multinational companies like- L’oreal, RECKITTBENCKISER (INDIA) LTD etc. and as well as some local giants which are performmuch better job in the cosmetic sector like-Hankel, Nirma, etc.COMPETITION AMONG MAJOR COMPANIES:- There is a huge competition among the companies working with the personalcare segment of FMCG industry. HUL is leading the market in many segments from lastcouple of decade. But right now it is facing a good competition from the other existingcompanies like P&G, Marico, Godrej Consumer Care Ltd., Dabur etc. A full data ofthese companies and there market share is given in the following above table. 34
  35. 35. TABLE 1:- MARKET SHARE OF DIFFERENT FMCG COMPANIES IN THESESECTORS.COMPANIES SHAMPOO SOAP DETERGENT SKINCARE TOOTHPASTE (%) (%) (%) (%) (%)HUL 44.7 47.5 36.8 47.2 28P&G 24.3 - 14.2 6.4 -DABUR 6.1 - - 5.0 10ITC 6.0 10.2 9.0 6.0 -GCPL 5.5 13.3 - 2.1 -EMAMI - - - 15.4 -CAVIN KARE 5.2 5 - 12.5 -MARICO 3.9 4.7 - 9.9 -COLGATE - 6 - - 50.1OTHERS 4.3 8.2 45 11.9 35
  37. 37. The country’s largest maker of home and personal care products, HindustanUnilever Ltd (HUL), has lost market share by value over the five quarters ended 31March2009, the erosion cutting across key categories such as soaps, shampoos,toothpastes and skin creams, even as the broader market expanded significantly HUL lost considerable market share in soaps, detergents and shampoos thatcontribute three-quarters of its sales, securities house DSP Merrill Lynch Ltd said in arecent report, citing data from market research firm ACNielsen. Market share for soaps, detergents and shampoos declined to 47.5%, 36.8%,and 44.7% in the three months ended March, from 53.4%, 38.9% and 46.3%,respectively, in the January-March quarter of 2008. In some categories such as tea andcoffee, HUL expanded its market share marginally. In tea, for instance, its share rose to23%, from 22.6%. In soaps, the company’s market share dropped in each of the five quarters evenas the overall soap market, according to ACNielsen, grew 18% in the year to Rs7,967crore. HUL’s soap portfolio includes popular brands such as Dove, Lux, Hamam andBreeze. “Discount brands such as Godrej No.1 and Santoor have been gaining sharefrom HUL’s Breeze and Lux,” said India Info line’s Nagwekar. Godrej No.1 is a product of Godrej Consumer Products Ltd (GCPL) and Santooris made by Wipro Consumer Care and Lighting, a unit of Wipro Ltd. 37
  38. 38. HUL’s market share in the laundry segment grew to around 37.8% in the quarterended June from 35.5% in the same period last year, according the market researchfirm ACNielsen. However, this time, the increase was not at the expense of price war with itsmultinational rival Procter & Gamble Co. P&G also gained 0.5 percentage points, up toa 7.6% share. Nirma Ltd, the Ahmedabad-based manufacturer, however, saw its marketshare dip by 1.7% percentage points to 13.5%. Wheel, a value brand that, according toVats contributes around 50% of HUL’s laundry segment revenues, increased its marketshare by 2 percentage points in the same period, with a total share of about18%.“Laundry has been an attractive segment in the past and is likely to keep growingin the near future. The recent price war between companies led to erosion in theirprofitability but now, the industry is stabilizing,” says Umesh Sharma, an analyst atMacquarie Securities here. According to Vats, the laundry business is witnessing a surge in demand fromcities and HUL is focusing on Tier I and II cities to tap that demand. 38
  39. 39. LITERATURE REVIEWLITERATURE RIVEW Indian cosmetic industry is one of the profitable and stable sector. There is abright and golden opportunity in this sector. Many of the scholars, research agencieshas done their research on this sector and given their own different views andsuggestions. The global outlook series on Personal Care Products provides a collection ofstatistical anecdotes, market briefs, and concise summaries of research findings. Thereport offers exclusive preludes, and primers on the global Cosmetics and Toiletriesmarkets such as Skin Care Products, Hair Care, Oral Hygiene, Shaving Products, Bath& Shower Products, Facial Care, Lip Care, Feminine Hygiene Products, Deodorants,Fragrances & Perfumes, and Baby Toiletries. The report also includes a compilation ofrecent mergers, acquisitions and strategic corporate developments. Major regionalmarkets discussed include United States, Japan, Europe, France, Germany, Italy, UK,Spain, Asia, China, India, South Korea, Brazil, and Mexico, among others. The reportalso includes an indexed, easy-to-refer, fact-finder directory listing the addresses, andcontact details of 997 companies worldwide. 39
  40. 40. The specific product segments analyzed are Stick & Solid Deodorants, SprayDeodorants, Roll-On Deodorants, and Other Deodorants (Creams, Gels and Wipes).The report provides separate comprehensive analytics for the US, Canada, Japan,Europe, Asia-Pacific, Middle East, Latin America, and Rest of World. Annual forecastsare provided for each region and product segment for the period of 2001 through 2015.A ten-year historic analysis is also provided for these markets with annual marketanalytics. The report profiles 186 companies including many key and niche playersworldwide such as Beiersdorf AG, Church & Dwight Co., Inc., Colgate-PalmoliveCompany, Henkel KGaA, Kao Corp., Lion Corporation., Procter & Gamble Company,Sara Lee Corporation, and The Unilever Group. The specific product segments analyzed are Traditional Lip Care Products,Medicated and Therapeutic Lip Care Products, and Sun Care (Lip Care) Products. Thereport provides separate comprehensive analytics for the US, Canada, Japan, Europe,Asia-Pacific, Middle East, and Latin America. Annual forecasts are provided for eachregion for the period of 2001 through 2015. A ten-year historic analysis is also providedfor these markets with annual market analytics. The report profiles 127 companiesincluding many key and niche players worldwide such as Beiersdorf AG, Blistex Inc.,Carma Laboratories, Chattem Inc., GlaxoSmithKline PLC, Johnson & Johnson,Laboratoire Dermophil Indien, L’Oreal SA, Rohto Pharmaceuticals Co., Ltd.,Mentholatum Company, Inc., The Body Shop International Plc, Unilever NV, VichyLaboratories, and Wyeth Corporation. Market data and analytics are derived fromprimary and secondary research. 40
  41. 41. The major product segments analyzed are Face Care Products (FacialMoisturizers,Facial Cleansers, & Others), Body & Hand Care, and Depilatories (Hand &Body Lotions/Creams, & Others), and, Sun Care Products.The report providesseparate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific,Latin America, and Rest of World. Annual forecasts are provided for each region andproduct segment for the period of 2001 through 2015. A ten-year historic analysis isalso provided for these markets with annual market analytics. The report profiles 697companies including many key and niche players worldwide such as Amway Corp.,Avon Products, Inc., Beiersdorf AG, Chattem, Inc., Clarins, Estee Lauder, Inc., Johnson& Johnson, AMBI Skincare, Neutrogena Corp, Kao Corporation, Kao Brands Company,Kracie Holdings Ltd., L’Oréal S.A, Nu Skin Enterprises, Inc., Oriflame Cosmetics AB,Playtex Products Inc., Procter & Gamble, Revlon, Inc., Sara Lee Corporation, Schering-Plough Corp., Shiseido Co. Ltd., and Unilever N V. Market data and analytics arederived from primary and secondary research. 41
  43. 43. RESEARCH METHODOLOGY :-METHOD OF DATA COLLECTIONa) Primary Datab) SecondaryMy research aims to gather primary data for understanding Consumer behavior throughquestionnaire.DATA SOURCE Primary data is the first hand data, which are selected a fresh and thus happen to beoriginal in character. Primary Data was crucial to know various customers and past consumerviews. The research is descriptive type of research survey includes research instrument likequestionnaire which can be structured and unstructured.` Secondary data are those which has been collected by some one else and whichalready have been passed through statistical process. Secondary data has been taken frominternet, newspaper, magazines and companies web sites.SAMPLE DESIGEN AND TYPE Simple random sampling.UNIVERSE Lucknow.SAMPLE SIZE Sample for questionnaire is 150 persons. 43
  44. 44. SAMPLE UNIT Sampling unit is individual customers.STATISTICAL TOOLS Bar charts, Pie charts. 44
  45. 45. SAMPLEWhile deciding about the sample of research, it is required from the researcher’s pointto pay attention to these under mentioned points:a) Sample Units: A decision has to be taken concerning a sampling unitbefore selecting a sample, sampling unit may be a geographical one such as state,district, village Etc. so in this research sampling unit is individual consumer in lko.b) Source list: It is also called sampling frame from which sample is to bedrawn, it caters name of all the items of a universe (in case of finite universeonly).Researcher has to prepare itc) Sampling size: This refers to the no. of items to be selected from theuniverse to constitute a sample. This is a major problem before the researcher. The sizeof sample should neither be excessively large not too small, it should be optimum. Thissize of population must be kept in view for this also limits the sample size .Sample sizein this research is 150 customers.d) Sampling procedure: Finally the researcher must decide the type ofsample he must be .That is he must decide about the technique to be used in selectingitems for the sample .In fact this technique or procedure stands for the sample design 45
  46. 46. itself. In this we used the random sampling on the basis of first survey results, which isfrom 150 respondents.INSTRUMENTS USEDWe collected primary data through sample survey or census surveys from the selectedelements in malls and super markets. So for this purpose we have used the mostpopular tool of primary data collection through direct communication with respondents.The tools we used are questionnaires.METHOD OF DATA COLLECTIONActually data is of two kinds so researchers should keep in mind both types of data.a) Primary Data: Primary data are those, which are collected afresh and for thefirst time and this happen to be original in character.b) Secondary Data: Secondary data are those data which have already beencollected by someone else and which have already been used as per required. 46
  47. 47. There are basically two sources to collect secondary dataa) Internally: Provided by the company/organizationb) Externally: Various publication of central, state and local Government.• Books, magazines, newspapers• InternetAfter only keeping in mind one can think about what type of data has to be collectedduring research as our research is concerned we have to gather primary data forCustomer behaviorQUESTIONNAIRE This method is more popular .The questionnaire is sent to the person concernedto answer the questions formatted and return the same soon. A Questionnaire consists of a number of questions printed or typed in definiteorder on a form or set of forms. The Questionnaire is sent to the respondents. In orderto achieve the research objective it is necessary to collect accurate and relevant data,secondary data are already published data collected for purposed other than thespecific research needs at hand. 47
  48. 48. Primary data that are collected specifically for the research situation at hand,were collected by surveys ,using respondents surveys is one of the ways of collectingprimary data namely observations, experiments and surveys . 48
  49. 49. DATA ANALYSIS 49
  50. 50. DATA ANALYSIS :- There is a number of data analysis has been done on the basis of questionnaireand different basis. Theses basis of questionnaire has been made on differentpreference and buying habit of consumers. The data analysis is given as follows:- 50
  51. 51. TABLE 1:- EXPENDITURE ON COSMETICSexpenditure No of consumers0-500 30500-1500 501500-2500 60Above 2500 10 no of consumers no of consumers 40% 33% 20% 7% 0-500 500-1500 1500-2500 above 2500. 51
  52. 52. Interpretation:- The above data shows the expenses percentage of consumers on cosmeticproducts. According to this table, 20% of consumers below 500 Rs. on cosmetic items,33%peoples spend Rs.500-1500 on cosmetics.40 % consumers spend Rs.1500-2500on cosmetics. At last remaining 7% consumers spend more than Rs.2500 on cosmetics. 52
  53. 53. TABLE 2:- VALUE TO THE DIFFERENT PURCHASING FACTORS 1 2 3 4 51. Price2. Packaging3. Ingredients4. Location of retail store5. Promoters’ service6. FunctionInterpretation :-The above table shows the measurement of different quality factor of a product on thebasis of a lickert scale. As the result, there is a good priority has been given to theprice of the product. An excellent priority is given to the ingredients and function.Consumer also looking for a very good durability of a product. There is a very averagepriority is given to the look of a product for purchase criteria.TABLE 3- TRUSTWORTHINESS OF BRANDS 53
  54. 54. Factors No. of consumersProduct origin 30Awards received 50Laboratory reports 50Editorial recommendation 20 no of consumers 60 50 40 30 20 10 0Interpretation: - The above data shows that the 33% of consumers trust on brands onthe basis of awards received by the brands & laboratory reports. Only 20% ofconsumers want to know product origin. 54
  55. 55. TABLE 4:- SOURCES OF BRAND AWARENESS.SOURCES NO. Of CONSUMERSInternet 20Seminar 10Newspaper 60Samples 25Leaflets 10Words of mouth 25 Chart Title Column2 60 25 25 20 10 10 Internet Seminar Newspaper Samples Leaflets Words of mouth 55
  56. 56. Interpretation:- The above table shows the different sources from where consumers are able toknow about cosmetic products. 50% of the consumers are getting aware with theproducts from advertising in T.V or some other medium. 28% of the consumers areget aware about the product by their friends.23% of consumers are able to knowabout the products through some other sources like free sampling, mass media,brand promotion etc. 56
  57. 57. TABLE 5:- areas interest the consumer mostArea No. of consumersDiscount 60Latest product 50Product reviews 10beauty 30 Column1 70 60 60 50 50 40 Column1 30 30 20 10 10 0 Discount Latest product Product reviews beautyInterpretation: - The above data shows the customer interest.40% of customer lookfor discount and 33% of consumers take interest towards the availability of latestproduct in the market and 20% are beauty conscious. 57
  58. 58. TABLE 3: BRAND CONCIOUSNESS OF PEOPLEBRAND N0. 0f consumersCONCIOUSNESSYes 110No 15For some products 25 BRAND COCIOUSNESS YES NO FOR SOME PRODUCTS 79% 13% 8% YES NO FOR SOME PRODUCTSInterpretation:-The above table shows the brand consciousness of the common consumers. On thebasis of above table, at the present time there are 79% people of India are brandconscious 13% consumers are brand conscious for only few brands and remaining 8%people who belongs to backward areas are not brand conscious 58
  60. 60. Interpretation:- The above data table shows the preference of consumers towards differentbrands of cosmetic products on the basis of country. 55% of consumers prefer thebrands of different national companies. The main reason is less price and relativelygood quality. 34% consumers prefer the brands international companies or importedproducts. These consumers contains models, relatively rich people, professionals etc.last 11% consumers prefers local goods.TABLE7: - SHOPPING HABIT OF CONSUMERS FOR PLACE 60
  61. 61. places No. of consumersMalls 32Supermarkets 72Traditional shops 37e-shopping 9 SHOPPING HABIT OF CONSUMER SHOPPING HABIT 48% 25% 21% 6% MALLS SUPER MARKETS TRADITIONAL E- SHOPPING SHOPSInterpretation:- 61
  62. 62. The above data shows the different habits of consumers during they are on away to purchase the products. There was a time when consumers gone to only one ortwo stores available in an area. They purchase only those things which the retailer givesthem. At the time, the consumers have very limited choice due to unavailability of moreretail stores in an area. But now a day there is a bunch of availability of super markets,malls, and different ways to shopping. At the present time, 48% of people goes to asuper market, 25% goes to same old traditional stores, these persons are eitherfrom backward area or some semi urban areas. 21% peoples goes to malls forshopping, these are the peoples of metro cities or good developed city likeLucknow, Ahemdabad, and Pune etc. Remaining 6% people deals with e- shopping.TABLE 8:- FFECTING FACTORS RESPONSBLE FOR THE BUYING DECISION OFCONSUMERS.Effecting factors No of consumers 62
  63. 63. Company 17Packaging 28Brand name 57price 48 EFFECTING FACTORS COMPANY 11% BRAND NAME PACKAGING 38% 19% PRICE 32%Interpretation:- 63
  64. 64. The above table shows the different factors which effects the buying decisionof the consumers. At the present time more than 35%(38%) of consumers prefers thebrand name before purchasing of a cosmetic product. 32% of consumers prefers priceas a important factor in the purchasing of a cosmetic product. 19% preference goes tothe packaging and remaining 11% preference goes to reputation of companies. 64
  66. 66. CONCLUSION:- As the research has shown the comparison between customer buying behaviorregarding Indian and International product in recent time. Since the consumer buyingbehavior is the important factor to forecast the sales of any product in a particulararea. So company should keep close eye on the market situation. yet, customerwere price sensitive, but the changing market trend and customer view andpreference shown that customer are now quality sensitive .They want qualityproduct, good services, easy availability of product and better performance by theproduct.These days no of customer buying from malls has been increased. Also thefrequency to visit the malls has been increased substantially. People are morebrands conscious and they are satisfied with the range of products available there.We can conclude from our study that still more inclination is towards indigenousproduct the preference ratio of indigenous to imported products is 7: 3This isbecause of the relatively higher price of imported product. 66
  67. 67. Suggestions1. Customer like best quality product on any price, so company should addlatest technology to their products.2. After sales services is the area where Indian and International Company canhighly satisfy the existing customer, because they can make more customer throughtheir word of mouth. So Indian and International Company should provide latest andreliable service to their customers.3. Customer’s behavior always looks for some extra benefit with purchasing. Theydemand for affordable price for product and gifts with purchasing.4. International Company should make strategy to cater every income groupcustomers in city. Upper income group are affordable to purchase but lowerincome group is not. So International Company should make policies to sendtheir product and every home.5. The Indian company should give more emphasis on advertising to createmarket awareness and to make a brand image in the minds of investors. 67
  68. 68. 6. Companies should do more publicity through road shows, newspaper andadvertisement. As this will create awareness about he fund and schemes that are atpresent managed by the International Company.7. They should keep a close eye on competitor strategy. 68
  69. 69. Reference:-News paper: - The Economic Times. Business Standard.Journals: - Business World, Business Today.Website: - www.a2zmba.comBook: - Kotler Philip, Principle of Management Kothari C R, Research Methodology 69
  70. 70. A) PERSONAL BACKGROUNDa. Name……………b. Gender………….c. Age Blow 18 18-22 23-27 28-32 above 32d. Education level Primary secondary hr. Secondary Graduate post graduatee. Monthly income <10,000 10,001-20,000 20,001-30,000 30,000-40,000 >40,000B) GENERAL CONSUMPTION DETAILS7. On an average how much do you spend on personal care product each month? 0-500 500-1000 1000-1500 1500-2500 above 2500(Please indicate the importance of the following criteria in choosing yourpersonal care products 1-most imp; 5-least important) 1 2 3 4 58. Price9. Packaging10. Ingredients11. Location of retail store 70
  71. 71. 12. Promoters’ service13. Function14. How do you determine the trust worthiness of the cosmetic brand you are using? Product origin Awards received Laboratory recommendation Editorial recommendationC) RELATIONSHIP BETWEEN PRODUCTS KNOWLEDGE AND CONSUMPTION15. How do you get to know your cosmetic products? Internet Sample Newspaper leaflets Seminars words of mouth16. Which areas interest you the most? Discount Latest product Product reviews Beauty17. Are you satisfied with the variety of brand availability in the market? Yes No18. If yes you prefer? National brand International brand19. Where do you like to go for shopping? Super market Mall Traditional shop e-shopping 71
  72. 72. 20. How do you differentiate one brand from the other? Brand name spokesperson Function Leaflets21. What kind of promotion would you attract you to buy skin care products the most? Newspapers seminars Promoters’ persuasion Leaflets & TV comments 72