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Research Report On

“PERCEPTION AND BUYING BEHAVIOUR OF MODERN CONSUMERS 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 Das

National Institute of Technology & Management

Lucknow (U.P.)

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CANDIDATE’S DECLARATION

I SWAMIT GUPTA, student of MBA at BABU BANARSI DAS NATIONAL INSTITUTE

OF TECNOLOGY AND MANAGEMENT LUCKNOW, 2008-10 batch, hereby declare

that the Project Report titled ―PERCEPTION AND BUYING BEHAVIOUR OF MODERN

CONSUMERS TOWARDS PERSONAL CARE PRODUCTS‖ is the outcome of my own

work and the same has not been submitted by any Institute for the award of any degree

or any Professional diploma.

Date:

SWAMIT GUPTA

MBA IV SEM

ROLL.NO.0805470089

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ABSTRACT The first and most objective of my study is comparative study of perception and

consumers buying behavior regarding personal care products. The study of consumer

behavior is the most important factor for marketing of any goods and services. The

consumer behavior suggest how individual, groups and organization select, buy, use

and 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, devising

channels etc. Since liberalization 100% FDI is allowed in India. This has attracted foreign

companies to penetrate the Indian market. The marketers always look for emergent

trends that suggest new marketing opportunities and here in India a lot of

opportunities are available.

The personal care sector is one of the best and important sectors at the

present time. There is a lot of future opportunity in this sector. The increasing trend of

different cosmetic products, beauty care products, skin care products, hair care

products etc fuels the market growing opportunity for cosmetic products.

From the last couple of years, the demand of personal care products is not only

increase 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 arising

and change is made in consumers’ perception

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ACKNOWLEDGEMGNT

Success of my project depends upon two factors Internal and External factor

includes sincere efforts, dedication to the work and good potential whereas internal

factors includes cooperation and supports of potential customers who patiently hears

about the schemes and plans of products and then gives response.

Good guidance and cooperation from others are such external factors, which

affects the percentage of success. Though in completing this project I tried my level

best 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 and

suggestions, which I sincerely value and appreciate.

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Index

a) Acknowledgement

b) Preface

c) Executive summary

d) contents

1. Introduction

2. Back Ground of the Study

3. History of cosmetic products in india

4. Scope of Study

5. Need of Study

6. Objective of the study

7. Research Methodology

8. Problems & Limitations

9. Finding, Analysis & Interpretations

10. Suggestion

11. Conclusion

12. Questionnaire

13. Bibliography

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INTRODUCTION

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INTRODUCTION TO THE TOPIC

Generally, personal care products are these products which a consumer uses

for his personal purpose. It includes different types of cosmetic and skin care products

like talc, cold cream, fairness cream, toothpaste, toothbrush, perfume, deodorant, hair

oil, shampoo, soap, and all type of baby care and beauty care products. These are the

core FMCG products. Any person need for these products every day.

Personal care products are a part of FMCG industry. In some words we can say

that personal care products are the backbone of FMCG industry. As per the time passes

away, the demand of personal care products are also increasing day per day and future

of these products are also very bright and profitable.

There was a time when consumers not spend too much amount on the personal

care products. But in those days, they are not only eager for spending more money on

the cosmetic products, but at the same time they are looking for a good and prestigious

brand for the particular product. Modern media and advertisement plays an important

role in the increasing of demand of personal care goods. People of metro cities are too

much brand conscious but if we look at the people of semi urban and rural areas, they

are also looking for a good brand for the particular product.

Himani Fair and Handsome Mardon Wali Fairness Cream, Thanda Thanda Cool

Cool Navratna talc, International Lux etc. are the some of the front drive of

advertisement in the way of the success of personal care products.

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BACKGROUND OF

THE STUDY

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Background of the Study

The Indian cosmetic Industry has witnessed rapid growth over the last couple of

decades. In that time the range of cosmetic and beauty products in India has widened

tremendously. Beauty products manufacturers in India mostly cater to the great demand

for cosmetics and toiletries that fall into the low or medium-price categories as the

greatest demand in India has always been for these economically priced products.

However, in recent years in the cosmetics market India competitors have begun

to manufacture products to cater to an International need. For instance, herbal

cosmetics from India have a great demand in the overseas market and many cosmetic

products that are manufactured in India today are supplied to international suppliers of

branded cosmetics products like The Body Shop for example. New facts that have been

unveiled by a series of cosmetics business market analysis India reveal that many

International companies are now outsourcing cosmetics to India and that the industry of

cosmetic products India is growing at an average rate of almost twenty percent

annually. This increase is attributed to two main factors. The first being the increase for

the demand in Indian cost-effective products and the second being the increased

purchasing power of the average Indian.

There are also many reasons for the increased demand for cosmetic

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products in particular. With the introduction of satellite television and a wide array of

television channels as well as the Internet, the average Indian consumer is constantly

bombarded with advertisements and information on new cosmetic products which often

translates into the desire to purchase them. A boom in the Indian fashion industry has

also been linked to the increased awareness of Indian people about their appearances

and 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 cosmetic

products than consumers from every other part of the world. This means that the Indian

cosmetic industry has an even greater potential for growth than it is presently

experiencing.

In the entire range of products that fall within the territory of the Indian

cosmetic and toiletries market, the most popular items are color cosmetics, of which nail

varnish, lipsticks and lip glosses account for the most sales. In this area, popular local

brand names include Lakme and Revlon. Skin-care cosmetics have experienced a

slower growth and products such as anti-wrinkle creams, cleansers and toners, for

instance are not as popular as facial creams, moisturizers and fairness creams in this

genre. 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 Egyptians

did. The history of ancient cosmetics can also be traced back to the culture of ancient

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Greece and make-up was also popular in the Roman Empire. There is sufficient

evidence to suggest that people from all these three cultures used hair dyes for

instance. These people used herbal concoctions with components like henna, sage and

chamomile to darken their hair. It was only in the renaissance period that blond hair

became fashionable.

Although cosmetic products have undergone many changes in modern times, the basic

concept 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 as

opposed to pale skin and nail polish can be used to conceal brittle or dry nails. The

history of makeup cosmetics however is tarnished by the ill-effects that were often

experienced after applying many ancient make-up products. This was because many

such products were created using dangerous components and also because cleansing

lotions are not anywhere to be found in the early history of cosmetics

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History of cosmetic products in India:-

The history of the cosmetics industry includes very dark chapters in European

and Western countries from about six centuries back. Mixtures and pastes were then

used to whiten the face, a practice which remained popular till over four hundred years

later. The early mixtures that were used in Europe for this purpose were so potent that

they often led to paralysis, strokes or death. In that era, another method that was

employed to make the skin appear fairer was to bleed oneself using leeches.

Up to the late nineteenth century, women in Western countries may have

secretly worn make-up made from mixtures of household products, as make-up was

then deemed the domain of film stars. Cosmetics were only openly put up for sale in the

early part of the twentieth century for the first time. Tanned or darker skin tones became

popular only as late as the early twentieth century. It was in this era that tanning the skin

became a popular fad.

The history of cosmetics in the 1930s and 1940s shows how the fashion or

trend with respect to lipstick colors was changed annually, getting darker and closer to

red every passing year.

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Cosmetic products were once the sole domain of film personalities and stage

actors. The use of cosmetics in those eras was restricted to the purpose of creating a

dramatic effect.

However, with the passage of time, women started using cosmetics to highlight

their facial features as well. In India beetroot was used to redden the cheeks, while in

Western countries, certain chemicals were used to darken the hair. Finally, because of

the world-wide demand for make-up for the average person, cosmetics finally became

available for sale to the common man. Some common cosmetics include lipsticks,

blush-on or rouge as it is sometimes known, eyeliners, mascaras, foundations and eye

shadows.

Lipsticks are made using color pigments, oils, waxes and often fragrances as

well. Different cosmetic companies also add various other substances to create other

effects with lipstick. The oldest use of lipstick can be traced back to almost five

thousand years ago, when women of the Mesopotamian culture and of the Indus valley

civilization are believed to have crushed semi- precious stones and mixed them into a

paste to apply to the lips for added color. Through the centuries, lipstick remained

popular with women of different cultures and while some ancient lipstick-manufacturing

techniques employed the use of potent and toxic chemicals, others used vegetable or

animal extracts. Today, a wide range of lipsticks are available in the cosmetic market to

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cater to the various needs of the consumer. There are organic and natural lipsticks as

well as lip-gloss and lip pencils which come in a wide variety of colors to suit a huge

spectrum of skin tones. Worldwide, lipsticks are the most popular cosmetic in the

cosmetic market today.

Perfume is another popular cosmetic product. It is a fragrant mixture made using

various oils and aromatic compounds. Usually every perfume manufacturer keeps the

exact combination of ingredients a secret, especially in the case of perfumes that are

manufactured by large brand names. Rouge or blush-on is a cosmetic which is used to

redden the cheeks. In ancient times, women resorted to pinching their cheeks, or using

the extracts of mulberries, beetroot or other such extracts to color their cheeks and

acquire a healthy look. Typically women use this product to highlight cheekbones but

newer make-up techniques involve using rouge to add color to the apple of one's

cheeks. 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 many

kinds of eyeliners like liquid eyeliners, or kohl and kajal, all of which can be used to

create different effects and looks. Smoky eyes and the gothic look are in vogue

nowadays and these looks can be created using kohl over and under the eye with

metallic gold or silver eye shadow.

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SCOPE OF THE

STUDY

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Scope of the Study

The Indian cosmetic Industry has witnessed rapid growth in the last couple of

years, growing at a CAGR of around 7.5% between 2006 and 2008. With improving

purchasing power and increasing fashion consciousness, the industry is expected to

maintain 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.

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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.

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Need of the Study

The study is done for getting a deep knowledge and idea about Indian

cosmetic//personal care sector. The need or objective of the study is to know the how

much consumers give preferences to the brand of cosmetic goods whether the

customers are satisfied with the cosmetic products of the company and how far

the company is able to satisfy the customer in terms of quality and cost factors

since in today’s modern era customers are the focus for any company, any

organization that without satisfying them no company can survive in this global

competitive age. Non satisfaction of the potential customers can lead them to switch

over to another one. Now the policy every company or organization is to provide

satisfaction as there exists a lot of competition for them. Hence it becomes necessary to

conduct a comprehensive research in terms of customer satisfaction so that it is able to

know how far it stands before others. This also helps to judge whether if there is any lag

in the policy and could take immediate action to rectify it.

The need of this project also arose because an extensive survey can help the

company whether the work done by the company in the area of new products is

able to satisfy the customers or not. The major focus of the research conducted

therefore is to discover the factors that people are aware about the upcoming

new products and the attribute of the product which attracted them for a trial. The

study was restricted to only around 50-60 percent of our target audience, because the

respondents included in the study are people who are regular user of cosmetic goods

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OBJECTIVE

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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.

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MAJOR COMPANIES OF

PERSONAL CARE SECTOR

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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

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17. Yves Rocher

18. Mary Kay

19. Kosé

20. Alticor

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MAJOR INDIAN COSMETIC COMPANIES:-

In India, there is a complete range of cosmetic companies.it includes regional

companies, national and MNCs. Hindustan Unilever leads the companies which is

followed by Godrej consumer care, Procter & Gamble, Emami, Dabur and Calvin Care.

A broad list of these companies has been given below:-

1. HUL

2. GODREJ CONSUMER CARE.

3. EMAMI

4. ITC.

5. DABUR.

6. PROCTER & GAMBLE.

7. CALVIN CARE.

8. HANKEL INDIA LTD.

9. MARICO.

10. RECKITT BENCKISER (INDIA) LTD.

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11. COLGATE PALMOLIVE PVT. LTD.

12. CHOLYIL PVT.LTD.

13. J.K.HELEN COUTIES LTD.

14. J L MORISON INDIA LTD.

15. MODI RAVLON LTD.

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1. HUL (Hindustan Unilever Ltd.)

CEO:- Nitin Pranjape.

Hindustan Unilever Ltd. Has takes first position in the cosmetic products selling in

India. Every one out of two peoples uses the products of HUL. There is a wide range of

variety 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

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2. GODREJ CONSUMER PRODUCTS LTD.

CEO:- Adi Godrej .

Godrej Consumer Care is one of the biggest companies in the field of FMCG

business. Every one out of three Indians uses the product of Godrej. It also has a wide

verity 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

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3. EMAMI

CEO: - 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,

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4. ITC

CEO: - Y.C.Deveswer

Product Range (Cosmetic):-

Essenja De Wills, Inizio, Femme, Fi ma(5varities), Vivel,Superia

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5,DABUR :-

CEO:- Sunil Duggal.

Product Range (Cosmetic):-

Amla hair oil., Amla light oil, vatika, anmol sarson Amla,Gulabary,Crème, lotion,

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6. P&G

CEO:-A.J.LAFELY

Product Range (Cosmetic):-

Pantene,Head & Shoulders, Gillette, Safeguard, Zest, Old Spi Olay, Aussie(shampoo),

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7. Marico

CEO: - Saugat Gupta

Product Range (Cosmetic):-

Parachute, Medikar, Hair & Care, Santi Amla, Nihar Cemelia, Kaya Lite, Kaya Skin

Care, Aromati

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8. CAVIN KARE CEO: - C.Ranganathan

Product Range (Cosmetic):-

Chick, Nyle, Indica, meera badam shampoo, Karthika, Fairever, Spinz(talk&deo.),nyle

coldcream

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OTHER

COMPANIES:-

There are some other companies engaged in the business of cosmetic

products. Including them, some are the multinational companies like- L’oreal, RECKITT

BENCKISER (INDIA) LTD etc. and as well as some local giants which are perform

much 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 personal

care segment of FMCG industry. HUL is leading the market in many segments from last

couple of decade. But right now it is facing a good competition from the other existing

companies like P&G, Marico, Godrej Consumer Care Ltd., Dabur etc. A full data of

these companies and there market share is given in the following above table.

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TABLE 1:- MARKET SHARE OF DIFFERENT FMCG COMPANIES IN THESE

SECTORS.

COMPANIES SHAMPOO

(%)

SOAP

(%)

DETERGENT

(%)

SKINCARE

(%)

TOOTHPASTE

(%)

HUL 44.7 47.5 36.8 47.2 28

P&G 24.3 - 14.2 6.4 -

DABUR 6.1 - - 5.0 10

ITC 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 - - 50.1

OTHERS 4.3 8.2 45 11.9

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PIE CHART SHOWING DIFFERENT COMPANIES

PERFORMANCE IN DIFFERENT SECTORS:-

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The country’s largest maker of home and personal care products, Hindustan

Unilever Ltd (HUL), has lost market share by value over the five quarters ended 31

March2009, 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 that

contribute three-quarters of its sales, securities house DSP Merrill Lynch Ltd said in a

recent 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 and

coffee, HUL expanded its market share marginally. In tea, for instance, its share rose to

23%, from 22.6%.

In soaps, the company’s market share dropped in each of the five quarters even

as the overall soap market, according to ACNielsen, grew 18% in the year to Rs7,967

crore. HUL’s soap portfolio includes popular brands such as Dove, Lux, Hamam and

Breeze.

“Discount brands such as Godrej No.1 and Santoor have been gaining share

from HUL’s Breeze and Lux,” said India Info line’s Nagwekar.

Godrej No.1 is a product of Godrej Consumer Products Ltd (GCPL) and Santoor

is made by Wipro Consumer Care and Lighting, a unit of Wipro Ltd.

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HUL’s market share in the laundry segment grew to around 37.8% in the quarter

ended June from 35.5% in the same period last year, according the market research

firm ACNielsen.

However, this time, the increase was not at the expense of price war with its

multinational rival Procter & Gamble Co. P&G also gained 0.5 percentage points, up to

a 7.6% share. Nirma Ltd, the Ahmedabad-based manufacturer, however, saw its market

share dip by 1.7% percentage points to 13.5%. Wheel, a value brand that, according to

Vats contributes around 50% of HUL’s laundry segment revenues, increased its market

share by 2 percentage points in the same period, with a total share of about

18%.“Laundry has been an attractive segment in the past and is likely to keep growing

in the near future. The recent price war between companies led to erosion in their

profitability but now, the industry is stabilizing,” says Umesh Sharma, an analyst at

Macquarie Securities here.

According to Vats, the laundry business is witnessing a surge in demand from

cities and HUL is focusing on Tier I and II cities to tap that demand.

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LITERATURE REVIEW

LITERATURE RIVEW

Indian cosmetic industry is one of the profitable and stable sector. There is a

bright and golden opportunity in this sector. Many of the scholars, research agencies

has done their research on this sector and given their own different views and

suggestions.

The global outlook series on Personal Care Products provides a collection of

statistical anecdotes, market briefs, and concise summaries of research findings. The

report offers exclusive preludes, and primers on the global Cosmetics and Toiletries

markets 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 of

recent mergers, acquisitions and strategic corporate developments. Major regional

markets discussed include United States, Japan, Europe, France, Germany, Italy, UK,

Spain, Asia, China, India, South Korea, Brazil, and Mexico, among others. The report

also includes an indexed, easy-to-refer, fact-finder directory listing the addresses, and

contact details of 997 companies worldwide.

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The specific product segments analyzed are Stick & Solid Deodorants, Spray

Deodorants, 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 forecasts

are 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 market

analytics. The report profiles 186 companies including many key and niche players

worldwide such as Beiersdorf AG, Church & Dwight Co., Inc., Colgate-Palmolive

Company, 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. The

report provides separate comprehensive analytics for the US, Canada, Japan, Europe,

Asia-Pacific, Middle East, and Latin America. Annual forecasts are provided for each

region for the period of 2001 through 2015. A ten-year historic analysis is also provided

for these markets with annual market analytics. The report profiles 127 companies

including 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, Vichy

Laboratories, and Wyeth Corporation. Market data and analytics are derived from

primary and secondary research.

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The major product segments analyzed are Face Care Products (Facial

Moisturizers,Facial Cleansers, & Others), Body & Hand Care, and Depilatories (Hand &

Body Lotions/Creams, & Others), and, Sun Care Products.The report provides

separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific,

Latin America, and Rest of World. Annual forecasts are 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 market analytics. The report profiles 697

companies 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 are

derived from primary and secondary research.

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RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY :-

METHOD OF DATA COLLECTION

a) Primary Data

b) Secondary

My research aims to gather primary data for understanding Consumer behavior through

questionnaire.

DATA SOURCE

Primary data is the first hand data, which are selected a fresh and thus happen to be

original in character. Primary Data was crucial to know various customers and past consumer

views. The research is descriptive type of research survey includes research instrument like

questionnaire which can be structured and unstructured.

`

Secondary data are those which has been collected by some one else and which

already have been passed through statistical process. Secondary data has been taken from

internet, newspaper, magazines and companies web sites.

SAMPLE DESIGEN AND TYPE

Simple random sampling.

UNIVERSE

Lucknow.

SAMPLE SIZE

Sample for questionnaire is 150 persons.

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SAMPLE UNIT

Sampling unit is individual customers.

STATISTICAL TOOLS

Bar charts, Pie charts.

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SAMPLE

While deciding about the sample of research, it is required from the researcher’s point

to pay attention to these under mentioned points:

a) Sample Units: A decision has to be taken concerning a sampling unit

before 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 be

drawn, it caters name of all the items of a universe (in case of finite universe

only).Researcher has to prepare it

c) Sampling size: This refers to the no. of items to be selected from the

universe to constitute a sample. This is a major problem before the researcher. The size

of sample should neither be excessively large not too small, it should be optimum. This

size of population must be kept in view for this also limits the sample size .Sample size

in this research is 150 customers.

d) Sampling procedure: Finally the researcher must decide the type of

sample he must be .That is he must decide about the technique to be used in selecting

items for the sample .In fact this technique or procedure stands for the sample design

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itself. In this we used the random sampling on the basis of first survey results, which is

from 150 respondents.

INSTRUMENTS USED

We collected primary data through sample survey or census surveys from the selected

elements in malls and super markets. So for this purpose we have used the most

popular tool of primary data collection through direct communication with respondents.

The tools we used are questionnaires.

METHOD OF DATA COLLECTION

Actually 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 the

first time and this happen to be original in character.

b) Secondary Data: Secondary data are those data which have already been

collected by someone else and which have already been used as per required.

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There are basically two sources to collect secondary data

a) Internally: Provided by the company/organization

b) Externally: Various publication of central, state and local Government.

• Books, magazines, newspapers

• Internet

After only keeping in mind one can think about what type of data has to be collected

during research as our research is concerned we have to gather primary data for

Customer behavior

QUESTIONNAIRE

This method is more popular .The questionnaire is sent to the person concerned

to answer the questions formatted and return the same soon.

A Questionnaire consists of a number of questions printed or typed in definite

order on a form or set of forms. The Questionnaire is sent to the respondents. In order

to achieve the research objective it is necessary to collect accurate and relevant data,

secondary data are already published data collected for purposed other than the

specific research needs at hand.

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 collecting

primary data namely observations, experiments and surveys .

49

DATA ANALYSIS

50

DATA ANALYSIS :-

There is a number of data analysis has been done on the basis of questionnaire

and different basis. Theses basis of questionnaire has been made on different

preference and buying habit of consumers. The data analysis is given as follows:-

51

TABLE 1:- EXPENDITURE ON COSMETICS

expenditure No of consumers

0-500 30

500-1500 50

1500-2500 60

Above 2500 10

20%

33%

40%

7%

0-500 500-1500 1500-2500 above 2500

no of consumers

no of consumers

.

52

Interpretation:-

The above data shows the expenses percentage of consumers on cosmetic

products. 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.1500-2500

on cosmetics. At last remaining 7% consumers spend more than Rs.2500 on cosmetics.

53

TABLE 2:- VALUE TO THE DIFFERENT PURCHASING FACTORS

1 2 3 4 5

1. Price

2. Packaging

3. Ingredients

4. Location of retail store

5. Promoters’ service

6. Function

Interpretation :-

The above table shows the measurement of different quality factor of a product on the

basis of a lickert scale. As the result, there is a good priority has been given to the

price 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 average

priority is given to the look of a product for purchase criteria.

TABLE 3- TRUSTWORTHINESS OF BRANDS

54

Factors No. of consumers

Product origin 30

Awards received 50

Laboratory reports 50

Editorial recommendation 20

0

10

20

30

40

50

60

no of consumers

Interpretation: - The above data shows that the 33% of consumers trust on brands on

the basis of awards received by the brands & laboratory reports. Only 20% of

consumers want to know product origin.

55

TABLE 4:- SOURCES OF BRAND AWARENESS.

SOURCES NO. Of CONSUMERS

Internet 20

Seminar 10

Newspaper 60

Samples 25

Leaflets 10

Words of mouth 25

2010

60

25

10

25

Internet Seminar Newspaper Samples Leaflets Words ofmouth

Chart Title

Column2

56

Interpretation:-

The above table shows the different sources from where consumers are able to

know about cosmetic products. 50% of the consumers are getting aware with the

products from advertising in T.V or some other medium. 28% of the consumers are

get aware about the product by their friends.23% of consumers are able to know

about the products through some other sources like free sampling, mass media,

brand promotion etc.

57

TABLE 5:- areas interest the consumer most

Area No. of consumers

Discount 60

Latest product 50

Product reviews 10

beauty 30

60

50

10

30

0

10

20

30

40

50

60

70

Discount Latest product Product reviews beauty

Column1

Column1

Interpretation: - The above data shows the customer interest.40% of customer look

for discount and 33% of consumers take interest towards the availability of latest

product in the market and 20% are beauty conscious.

58

TABLE 3: BRAND CONCIOUSNESS OF PEOPLE

BRAND

CONCIOUSNESS

N0. 0f consumers

Yes 110

No 15

For some products 25

79%

8%13%

YES NO FOR SOME PRODUCTS

BRAND COCIOUSNESS

YES NO FOR SOME PRODUCTS

Interpretation:-

The above table shows the brand consciousness of the common consumers. On the

basis of above table, at the present time there are 79% people of India are brand

conscious 13% consumers are brand conscious for only few brands and remaining 8%

people who belongs to backward areas are not brand conscious

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TABLE6:- PREFERECE OF DIFFERENT BRANDS (COUNTRY WISE)

brands No. of consumers

National 82

international 51

Local 17

55%

34%

11%

NATIONAL INTERNATIONAL LOCAL

PREFERENCE OF BRANDS

NATIONAL INTERNATIONAL LOCAL

60

Interpretation:-

The above data table shows the preference of consumers towards different

brands of cosmetic products on the basis of country. 55% of consumers prefer the

brands of different national companies. The main reason is less price and relatively

good quality. 34% consumers prefer the brands international companies or imported

products. These consumers contains models, relatively rich people, professionals etc.

last 11% consumers prefers local goods.

TABLE7: - SHOPPING HABIT OF CONSUMERS FOR PLACE

61

places No. of consumers

Malls 32

Supermarkets 72

Traditional shops 37

e-shopping 9

21%

48%

25%

6%

MALLS SUPER MARKETS TRADITIONALSHOPS

E- SHOPPING

SHOPPING HABIT OF CONSUMER

SHOPPING HABIT

Interpretation:-

62

The above data shows the different habits of consumers during they are on a

way to purchase the products. There was a time when consumers gone to only one or

two stores available in an area. They purchase only those things which the retailer gives

them. At the time, the consumers have very limited choice due to unavailability of more

retail 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 a

super market, 25% goes to same old traditional stores, these persons are either

from backward area or some semi urban areas. 21% peoples goes to malls for

shopping, these are the peoples of metro cities or good developed city like

Lucknow, Ahemdabad, and Pune etc. Remaining 6% people deals with e- shopping.

TABLE 8:- FFECTING FACTORS RESPONSBLE FOR THE BUYING DECISION OF

CONSUMERS.

Effecting factors No of consumers

63

Company 17

Packaging 28

Brand name 57

price 48

BRAND NAME38%

PRICE32%

PACKAGING19%

COMPANY11%

EFFECTING FACTORS

Interpretation:-

64

The above table shows the different factors which effects the buying decision

of the consumers. At the present time more than 35%(38%) of consumers prefers the

brand name before purchasing of a cosmetic product. 32% of consumers prefers price

as a important factor in the purchasing of a cosmetic product. 19% preference goes to

the packaging and remaining 11% preference goes to reputation of companies.

65

CONCLUSION AND

SUGGESTION

66

CONCLUSION:- As the research has shown the comparison between customer buying behavior

regarding Indian and International product in recent time. Since the consumer buying

behavior is the important factor to forecast the sales of any product in a particular

area. So company should keep close eye on the market situation. yet, customer

were price sensitive, but the changing market trend and customer view and

preference shown that customer are now quality sensitive .They want quality

product, good services, easy availability of product and better performance by the

product.

These days no of customer buying from malls has been increased. Also the

frequency to visit the malls has been increased substantially. People are more

brands conscious and they are satisfied with the range of products available there.

We can conclude from our study that still more inclination is towards indigenous

product the preference ratio of indigenous to imported products is 7: 3This is

because of the relatively higher price of imported product.

67

Suggestions

1. Customer like best quality product on any price, so company should add

latest technology to their products.

2. After sales services is the area where Indian and International Company can

highly satisfy the existing customer, because they can make more customer through

their word of mouth. So Indian and International Company should provide latest and

reliable service to their customers.

3. Customer’s behavior always looks for some extra benefit with purchasing. They

demand for affordable price for product and gifts with purchasing.

4. International Company should make strategy to cater every income group

customers in city. Upper income group are affordable to purchase but lower

income group is not. So International Company should make policies to send

their product and every home.

5. The Indian company should give more emphasis on advertising to create

market awareness and to make a brand image in the minds of investors.

68

6. Companies should do more publicity through road shows, newspaper and

advertisement. As this will create awareness about he fund and schemes that are at

present managed by the International Company.

7. They should keep a close eye on competitor strategy.

69

Reference:-

News paper: - The Economic Times.

Business Standard.

Journals: - Business World, Business Today.

Website: - www.wikipedia.com

www.fmcgmarketers.blogspot.com

www.google.com

www.a2zmba.com

Book: - Kotler Philip, Principle of Management

Kothari C R, Research Methodology

70

A) PERSONAL BACKGROUND

a. Name……………

b. Gender………….

c. Age

Blow 18 18-22 23-27

28-32 above 32

d. Education level

Primary secondary hr. Secondary

Graduate post graduate

e. Monthly income

<10,000 10,001-20,000 20,001-30,000

30,000-40,000 >40,000

B) GENERAL CONSUMPTION DETAILS

7. 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 your

personal care products 1-most imp; 5-least important)

1 2 3 4 5

8. Price

9. Packaging

10. Ingredients

11. Location of retail store

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12. Promoters’ service

13. Function

14. How do you determine the trust worthiness of the cosmetic brand you are

using?

Product origin Awards received

Laboratory recommendation Editorial recommendation

C) RELATIONSHIP BETWEEN PRODUCTS KNOWLEDGE AND

CONSUMPTION

15. How do you get to know your cosmetic products?

Internet Sample

Newspaper leaflets

Seminars words of mouth

16. Which areas interest you the most?

Discount Latest product

Product reviews Beauty

17. Are you satisfied with the variety of brand availability in the market?

Yes No

18. If yes you prefer?

National brand International brand

19. Where do you like to go for shopping?

Super market Mall

Traditional shop e-shopping

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20. How do you differentiate one brand from the other?

Brand name spokesperson

Function Leaflets

21. What kind of promotion would you attract you to buy skin care products the

most?

Newspapers seminars

Promoters’ persuasion Leaflets & TV comments