EXECUTIVE SUMMARY
Cosmetic products play an essential role in everyone’s life. They range from make-up, skincare and perfumes, to personal hygiene such as shampoos and soaps. The cosmetic market is driven by innovation as they constantly add new features to their existing products and it is a highly competitive market where more choice, greater efficacy and better results are expected by customers.
In the current globalised world where the demographics of Western countries change, ethnic groups are gaining an increasing recognition in the marketing and business scene and responding to their needs and wants appear to be the key factor to success. It is particularly true in the cosmetic industry. The Global Cosmetic Industry and India. The market size of the cosmetics industry in India is estimated to be worth US$1. 5 billion. It is projected to reach almost US$3 billion by 2014 The industry has been growing at an annual rate of almost 20%.
A market surge of 19% Compound Annual Growth Rate (CAGR) is anticipated by 2014. The Indian cosmetic industry growth is twice as fast as that of the United States or Europe. In this fast growing industry it is essential to know about the customer perception and buying behavior. The customers perception about cosmetics has been changed from the traditional perspective. People are more aware of the brands of cosmetics. they started spending more on cosmetics. They consider cosmetics as a basic need in recent days. This project is a study about the females’ perception and buying behavior towards cosmetics in recent days.
BACK GROUND 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. Indian cosmetic industry facts There are also many reasons for the increased demand for cosmetic 10 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. Indian market for personal care products
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 11 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 cleansinglotions are not anywhere to be found in the early history of cosmetics
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 of 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.
APPROACH TO THE PROBLEM AND SCOPE OF THE STUDY
Consumer buying behavior is the output of how individual or household consumers behave or the decision making on buying any goods or services. Consumer buying behavior is an important part of marketing, which studies the reasons of why, when, where, what and how the consumers are behaving on their buying decisions. Consumer buyer behavior depends on different types of marketing (Products, Place, Price, Promotions) and other stimuli (Economic, Technological, Political and Cultural) these factors influence the consumer black box to produce responses for making decision about selecting products.
Cultural, social, personal and psychological these four factors have great influence on consumer buyer behavior. Human wants, perceptions, values, behavior learned from society, family other institutions. Social factor consists of a person’s reference group family, friend’s organizations. Personal factor is included age of lifecycle, economic situation, profession, personality and other personal characteristics influence buyer decision process. Different psychological factors like motivation, perception, attitude, belief have influence on consumer buying decision.
Market segmentation is dividing the entire market into some specific partitions according to different factors and attributes of the target market as well as the product or services you will be offering to the market. Consumer market segmentation is influenced by different variables. Consumer market segmentation variables are geographic, demographic, psychographic and behavioral segmentation. Geographic segmentation is done based on regions, cities, states or other geographic factors. In demographic segmentation age, gender, family life cycle, education, occupation.
Personality, lifestyle other psychographic factors are the points of psychographic segmentation and behavioral segmentation are based on benefits, usage rate, knowledge, attitude, to a product or service. Segmenting the market is not an easy job the people working on it, they have to consider different factors from many aspects. So segmenting market dependent on one variable is not wise idea. Marketing people use combination of different variables like geographic, psychographic, demographic and behavioral to make the segmentation precise.
Consumer buying behavior is influenced by for factors cultural, social, personal and psychological, these factors are consists of different points like perceptions, values, reference groups, occupations, life style, belief, attitude etc. In case of market segmentation the same points are repeated like gender, family life cycle, occupation, perception, income, life style etc in four variables use to segmenting the market for a product or services.
In studying consumer behavior to a particular product or service and segmenting the market for the product or service some similar points are studied like age, occupation, life styles, education, and perception in different part of the process of study. In market segmentation the consumer buying behavior has relevance as segmentation of market is more or less dependent on buying behavior. 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 2008 and 2010.
With improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth . It is projected to grow at a CAGR of around 7%during the forecast period, says Indian Cosmetic Sector Analysis (2009-2012)”. * 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.
LITERATURE REVIEW
The author Loudon and Della Bitta (1988) has stated that brand image of a specific brand is the picture or notion that people are having in their mind. It is a expression, sign or any other characteristic that is acknowledged by promotion of goods. Brand image is the whole thought or feeling in the customer’s intellect which is made up from different resources.
Because of their high quality in their mind they choose familiar brand. The purchase risks become lessen by the brand image. In the article the author stated that according to industry sources, the total size of the Indian retail beauty and cosmetics market is currently estimated at $1. 5 billion, with fragrance comprising the largest component. Color cosmetics account for 14%, fragrances – 21%, hair care – 19%, skin care – 17%, beauty services -13%, herbal products – 9%, others – 7%.
If the overall beauty and wellness market is considered, which includes beauty services, the market is estimated to be around $2. 68 billion. The cosmetics market in India is growing at 15-20% annually, twice as fast as that of the United States and European markets. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. In the International Review of Business and Social Sciences it is stated that cosmetics are those important and significant things which strengthen the loveliness of human structure.
That is why we reimburse for cosmetics. Various products like soap, shampoo, hair cares, makeup and perfumes are involved in cosmetics. These days thousands of brands and kinds are present in cosmetics. Women are often more concerned with cosmetics. No doubt cosmetics have enhanced their good looks and facade. These are the grounds they are more responsive to beauty than their physical condition. Also it is mentioned that females are more aware to cosmetics to definite patterns of attractiveness. To seem to be change is the prior preference of every woman.
In the article “The Influence of Brand Loyalty on Cosmetics Buying Behavior of UAE Female Consumers” the author Dr. Hamza Salim Khraim Stated that how the respondents are influenced by factors of brand loyalty towards cosmetics brands. Brand loyalty is important for an organization to ensure that its product is kept in the minds of and prevent them from switching to consumers other brands. His findings revealed that product quality plays a significant role in influencing consumers to be brand loyal customers.
Consumers prefer brand name, product quality, price, promotion, store environment and service quality as relevant factors attributable to brand loyalty. All these factors showed positive relationships with brand loyalty except design which had no relationship. According to Shahzad khan (2011) quality means that how excellent and worse the things are or highly valued. Quality is the unending procedure of making and keeping association by preparing and satisfying the affirmed and required needs. Quality is the achievement of the customer’s needs especially it goes beyond the customer’s hopes.
According to Russell’s and Taylor’s (2006), words quality of a product makes the product for utilization and it fulfills the required needs. In the article the stated that group and family is an important societal group in a culture, naturally having one or two people combine in a residence and they contribute principles, aim, and have long standing agreement to one another. An individual cannot be considering as one person; he/she is in link to others.
A woman plays a very significant role in buying things exactly and correctly. In view of Kotler and Keller (2009) the above variable has a nearness and well-built relationship with an individual manner and mind-set while in the eyes of Noel (2009) on the customer conduct family has a direct and most important affect.
ANALYSIS
- Chart no-1. Number of people using makeup as an essential element Inference- More than 97 percent People says They put make up and they using makeup in daily basis as an essential element of their life
- Chart No -2. Most of the people Profession Inference- In occupation 50 percent people are student, 10 percent people are housewife mostly, 8 percent is collage professor, 2percent Entrepreneur, and 20 percent is school teacher.
- Chart no- 3. People age fall in who used makeup mostly Inference- 45 percent people fall in the age of 18-25 year, 11 percent people fall in 30-40 years age, 36 percent people fall in the age of 25 to 30 year and rest of 8 percent people fall in above 40
- Chart No- 4. People using makeup Inference- 96 percent people say they use make up in regular basis they cannot think a single day without make up. 3 people said they use makeup weekly basis because they believe in natural beauty so they use make up weekly twice and 2 people said they put make up only weekly once.
- Chart No- 5. Purpose of using makeup Inference- People use make up in this question majority of the population says they use make up to look better and feel better 29 people said they use make up because they want to look most prettiest, 8percent said they use make up to look more awake and beautiful and rest 5 percent said they put make up to protect themselves to cover the spots.
- Chart No-6. Frequency of purchasing makeup Product Inference- Buying pattern of people about makeup product 53 people said they buy when they feel any need of makeup product. 40 people said they buy on monthly basis and 7 people buy in weekly basis.
- Chart no-7. Percentage of money spend on makeup product Inference- People are ready to spend on makeup in this question 40 people said they spend above 500 on cosmetic and make up and 46 people said they spend near about 100 to 2000 rupees and 5 percent people spend above 5000 rupees rest 9 percent said they spend 2000-5000 rupees.
- Chart No-8. Favourite brand of make up Inference- 43 people said they use Lakme because they feel it gives the best touch to their makeup ensemble with the lakme they prefer other branded product also like Revlon and L’Oreal too. 3 percent said they use Mac Cosmetics product because its satisfy their self esteem. In other category 3 percent use Maybelline product too.
- Chart no-9. Reason Behind of using branded product Inference- 80 percent people said they always prefer branded product because of their good quality and also price competitiveness which make their brand belief complete and they don’t want to take any risk in their make up things so 80 percent people mark on quality and also price factor and 40 percent people for them self esteem is also a important factor to choose branded product for their makeup list.
- Chart no-10. Time spend on to put make up mostly Inference- 42 percent take 20 minute to put makeup and 20 percent people take 1 hour to get ready and 38percent people take 40 minutes.
- Chart No- 11. Most used makeup product Inference- Most of the people prefer all of these item people using all of these simultaneously some of them mark on kajal as well as lipstick and foundation and also other items too. ^0 percent said they use mascara, 90 percent people said they use Kajal they cannot think a single day without kajal, 60 percent people use eye shadow as an essential belonging, 75 percent people use eyebrow pencil, 50 percent people lipstick as well as foundation and 20 percent using eye liner.
FINDINGS AND CONCLUSION FINDINGS
People cannot think a single day without makeup it’s an essential part of their everyday life. For the makeup people always prefer branded product because they can believe on branded product quality esteem and also give them the fresh look which will make them pretty and most importantly they do not want to take any risk in terms of quality so they always prefer branded product. From the young to middle aged person everyone using branded product makeup. People using makeup to look and feel better in the eyes of others, to look good and very importantly when they put makeup they feel confident, very few people using makeup to cover their spots.
People are ready to spend enormous money on makeup but the student generation mostly prefer to spend less on makeup other than of that everyone are ready to spend above 2000 rupees. Conclusion: Through the consecutive study it can easily conclude that in terms of makeup product and cosmetic product no one wants to compromise in terms of quality and brand is also a major factor for everyone which gives them 100 percent assurance to take care of their makeover session.
People are so much conscious about their skin care articulates, they keep on eye on every new technology for upcoming new branded makeup product which will make them most prettiest and give them glory to their makeover particulates.
