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Use of cosmetics is not latest trend, it has its roots deep within the annals of
history. The word cosmetic has been given this modern name lately. Through
regular and formal use of cosmetics has gained momentum now, it has been in some
To cite an example of the long usage of cosmetic, the cosmetics depict had
Indian too has not remained far behind in the development and frequent usage of
cosmetics. Household utility like haldi, chandan, basan uptoon have been used
centuries to preserve the natural beauty of skin. The reason for their usage was
The cosmetics industry, which started glowing in the early 1990s, is expanding
exponentially. With more women and men becoming conscious of their and
willing to spend on their grooming, this industry has been growing at 20-25
percent the last few years. No wonder then that the shelves are stocked with a
various needs of customers. The enormous growth in this segment has not only
attracted many MNCs but also provided space for many Indian companies to foray
An ORG-Marg study reveals that while most FMCG products were affected by the
general slowdown, this segment witnessed relatively good growth in volume and
value 2001. Not only have more people started using cosmetics, they are also
willing to pay more to look and feel good. The penetration rate is higher in the skin-
care segment compared to lipsticks. While volume growth has remained low,
at 3 percent, in the case of lipsticks, much of the value growth ha come from price
rises.
This not only means that consumers are willing to spend the extra bit to look
and feel good, but also indicates the constant up gradation from mass to
premium products. Though mass products still constitute a major portion of the
promotions targeting various consumer segments are some reasons for these
positive signals about the industry prospects. With numerous players fighting
for market share, is the industry really big enough and the growth high enough
to accommodate all the players? What makes a player tick and create a niche for itself
% % %
Skin Care 11 8 5
Lipsticks 13 3 3
Though most players see huge opportunity in this industry, what would actually
work wonders for the players is strong brand promotion, good distribution
quality.
Cosmetics are still seen as elitist products and may be the last thing on an
average Indian consumer's mind. Though the low penetration levels for most
cosmetic products suggest much potential, the market for cosmetic products
Despite the tall claims, the actual growth prospects would be limited to this
extent.
From the investment perspective, though many big listed companies have a
presence in the various sub-segments of the industry, HLL is the only listed
company that has a visible presence across all segments. Being a diversified
large company, the turnover from this segment may be too small for HLL to
affect investment decisions. As to the recent entrants such as Dabur and Dr.
Morepen, it may be a while before their financials reflect the dynamics of this
industry. The other listed players are Emami and J.L. Morison (India). Despite
their good financial track records, investing in these stocks may be highly risky
for a retail investor as low traded volumes and equity base characterize the
stocks.
COSMETICS
The cosmetic segment primarily comprises of colour cosmetics (Face, eye, lip
and nail care products), perfumes, talcum powder and deodorants. All these are
very small segments. Talcum powder is the most popular cosmetic product in
India. This market is estimated at Rs.3.5 bn and is yet growing at 10-12% in pa.
Awareness is very high at 80% with a penetration of 45.4% in urban areas and
25.2% in rural areas. Pond's dominates the talcum market with a 70% share
Attar and alcoholic perfumes each account for 50% of the fragrance market
skin on account of chemical ingredients restricts usage of face care products. The
Rs. 0.3 bn. Wordwide, deodorants is the largest market followed by skin care,
segment.
MARKET SEGMENTATION
The Indian market can be segmented in terms of product category and price.
Again oral care, hair care shampoos & oils, skin care, soaps and distribution
ORAL CARE
The oral care market can be segregated into toothpaste (60%), toothpowder
(23%) and toothbrushes (17%). While 60% of toothpaste is sold on the family
while toothpowder accounts for 52% of the market, red toothpowder accounts
for 40% and black toothpowder accounts 8%. The penetration level of
Frequency of usage for toothpaste is only 1.5 times among other consumers,
Given the low per capita consumption and penetration rates, toothpaste demand is
mainly being driven by the overall market growth of 8-10.The rural segment is also
HAIRCAREOILS
The hair oil market is huge, valued at Rs.6 bn. Due to the varied consumption
habits of consumers across the country, where coconut oil and edible oil are
interchange used, the size of the market is likely to be higher than estimated.
Usage of hair oil is a typical Indian habit with 50% of the population out of
which some perceive that massaging the head with hair oil has a cooling impact. The
penetration of hair oil is fairly high at around 87% and evenly distributed among
The shampoo market in India is valued at Rs.4.5 bn with the penetration level at
13% only. The market is expected to increase due to lower duties and
cosmetic and antidandruff. It is basically an upper middle class product, as more than
50% of the consumers use ordinary toilet soap for washing hair.
While the awareness level is high, the penetration level is very low even in the
metros, which is only 30%. Urban markets account for 80% of the total
shampoo market; the penetration level is rapidly increasing due to decline in excise
SKINCARE
The skin care market is at a very nascent stage with basic requirements of the
consumers being protecting the skin from cold and dryness in winter, and
improving fairness of the skin. Most of the product categories are niche
segments.
While the awareness rate is high in both urban areas accounting for 60R and
rural areas accounting for 30% the penetration level is low for both. This is
because of apprehensions that usage of skin care products may benefit in the long
run due to the chemical contents. Many households prefer to use traditional and
Since the market is at a very nascent stage with very low penetration levels, the
growth rates are expected to be higher at 24-255 over the next five years. New
players such as Avon and Oriflame have entered the market with the natural
SOAPS
The product categories can be classified into three segments; premium (Lux,
Dove), popular (Nirma, Cinthol), and economy (Nirma Bath, Lifebuoy). The
price differential between the premium and economy segments is about 2X. The
popular and economy segments account for about 4/5ths of the entire market for
soaps.
levels remain low India's per capita consumption of soap at 460 gms per annum is
Soaps are available in 5 ml retail outlets in India, 3.75 m of which are in the rural
population is in the rural areas; hence about 50% of the soaps are sold in the rural
markets.
PRICE SEMENTATION
Price is common basis for segmenting the cosmetics market. The market
POPULAR SEGMENT
The sector is divided into two distinct segments-the premium segment catering
mostly to urban higher/upper middle class and the popular segment with prices as
and rural markets. The premium segment is less price sensitive and more brand
conscious.
ECONONY SEGMENT
India's rural markets have been a lot of activity in the last few years. Since
penetration levels are pretty high in most categories, future growth can come only
deeper rural penetration. FMCG majors are aggressively looking at rural India since
High consumer awareness and penetration levels will enable the market to grow at
an average 8-10% per annum with slightly higher growth in the rural areas.
increase in per capita consumption, there is tremendous scope for movement up the
value chain.
HLL, Nirma and P&G are the major players in the market with 40%, 30% and 12%
share, respectively. While HLL dominates the premium segment, Nirma is the
CONSUMER
The term consumer is often used to describe two different kinds of consuming
The personal consumer buys goods and services for is or her own (e. g. soap,
shampoo etc.) for use of the household (e.g.TV VCR or car) or as a gift for a
friend (e.g. bike, camera etc.). In each of these cases, individual who are
referred to as end uses or ultimate consumers buys the goods for final use.
The organizational consumer buys goods and services in order to run their
sell their own products. Institutions buy the material they need to maintain
themselves.
buying an image that is associated with the brand. Every marketer, and
relevant to the target segment. In ensures that the company is able to bring the
brand so close to the consumer that the brand creates a special place for itself in the
consumer's mind
product has cotnrived in his mind. This image, when confronted by a need state
translated itself into a purchase decision. During this period, the consumer is
unique associative image in obtained, in then becomes the task of the brand
Consumerology to craft relevant fit for the brand into the consumer-selected
image. From this fit an image is interpreted into a social and vocational set that is
consonance with the consumer's image and the image of the brand through the
Having identified the image solution, the next task is to deliver it through the
constantly changing, so do the image solutions. Thus, these image solutions are
check if a brand's drivers are changing, if the consumer's image is changing and
id the image of the brand is being molded according to the changing situation.
to the brand consumerlogist who, in turn, interprets it for the creation of new
image solution. If the listening stops, the solutions are no longer the result of
consumer understanding, but merely the products of the experiential biases of the
solution creators.
CONSUMER BEHAVIOUR
while the individual decides to spend his/her time, effort and money on
of products and services that they expect will satisfy their needs.
They study of consumer behaviour is the study of how individual make decision
to spend their available resources viz. Time, money and effort on they buy from,
where they buy it, how often they buy it and how often they use it.
Take the case of consumer durable e.g. the T.V. set. What features they look for?
What is the reason for buying particular T.V. Set? How likely are they to replace
their old models when new models with added features become available?
The answer to such question can only be found through consumer research that
Although this study focuses on how and why consumers make decision to buy
T.V Consumer behavior and considers the uses consumers make of the good
they buy and then subsequent equations. For example, a buyer may experience
decision or may vow never to buy same brand or model again, prescribing his own
decisions. If marketers understand consumer behavior they are able to predict how
consumer are likely to react to various informational and environmental cues, and
They also wanted to know how people receive, store and use consumption
applied marketing science; if they could predict consumer behavior, they could
influence it.
DEVELOPMENT OF THE FIELDS OF CONSUMER BEHAVIOUR
There are a number of reasons why the study of consumer behavior developed as
separate marketing discipline. Marketing had long noted that consumer did not
always act or react as marketing theory would suggest. The size of the
where needs of good and services are always homogeneous than in consumer
purchase behavior.
total potential markets into smaller, homogeneous segment for which they could
consumer i.e. their needs, preference, changing life style. Research into
major economics of scale. Marketers now use cross cultural consumer research
studies as the basis for product development and promotional strategies to meet the
PSYCHOLOGICAL FACTORS
Diversity in human behavior often causes us to look the fact that people are
really very much alike. Psychologists and consumer behavior agree that most
people tend to experience the same kinds of needs and motives, they simply
major factors that influence the buying behavior of the consumer. Under the
HUMAN NEEDS
MOTIVATION
PRECEPTION
LEARNIGN
ATTITUDE
HUMAN NEEDS
Very individual has some needs some are innate, others acquired. Every person
made purchase according to his needs e.g. purchase of food to satisfy need to
As far as the purchase of T.V. is concerned, it has become the needs of every
MOTIVATION
force some object or condition e.g. a person may be impelled towards a hotel to
Objectives are the route map of any research. Without setting objectives any
research would be meaningless and all the efforts of the researcher will go in vain.
cosmetics" were:
to purchase cosmetics.
2) To find out the variety of cosmetics, the women and students prefer most.
3) The brands, which are popular for the particular type of product.
5) Determining the sources from where the women get the information
about cosmetics.
Problem Formulation:
It has normally observed that most of the marketers are spectacle about
consumers in India. Each company tries to provide more information about their
products for consumers. Very few companies are really providing information
according to the requirement of Consumers. They look for bargaining and lack of
Thus being a MBA student I felt, I should study the effectiveness of information of the
market in India is growing rapidly and enormous untapped potential lies there. Thus
Research Methodology:
almost impossible to reach at any tangible decision. Although various methods are
adopted to undertake this activity but the goal is almost same i.e. to reach on a final
There is a very famous quote "if you are confident of doing something, half of
the work is done". And confidence comes when you have a proper framework
for the particular job . Hence to carry out any work of necessary to chalk out a
framework.
To carry out the research project, we first define the research methodology that is to
scientifically. In it we study the various steps that are generally adopted during
the course of research along with the logic behind them. It is necessary for the
research to know not only the research methods but also the methodology.
The purpose of the research is to discover the answers to the questions through the
application of scientific procedures. Though each research study has its own
Yamuna Nagar area. Data is collected people who are living in Yamuna Nagar
area.
Survey Planning:
Planning is the most essential part for a successful survey. A right approach has to be
4) Sources of data
7) Miscellaneous consideration
SAMPLING PLAN:
Sample Size
Consumer (100)
Survey Methodology
Collection of Data:
This is the first step of the process. It forms the foundation for the whole of
statistical analysis. Faulty data can lead to unreliable conclusions so most care is
c) Presentation:
After collecting and analyzing the data, it is ready for presentation. There
etc. The main purpose of presentation is to put the collected data into an
easy readable form. In the present project report data has been graphically
d) Analysis of data:
Having gathered the data, the researcher has to proceed towards drawing
form and requires to be interpreted. With SPSS Software to analysis the data.
involves.
e) Interpretation:
In the present scenario, all the females use cosmetics. However the
Cosmetics are generally used for improving there looks and personality.
body.
Cosmetics now a days has become a necessity for all the females.
Cosmetics are purchased keeping in mind the brand name, price and
quality. Packaging and ease of use do not hold much significance. This is
Friends and media play a very important role in making females aware of
cosmetics.
Cosmetics are generally purchased from general stores by all the three
categories of females.
Working women buy cosmetics in medium size, student in small sie and
There is trend to use herbal cosmetics. Due to the awareness, the ill-
switching.
environment. After the liberaliation and the globalization there has been a sea
change in the Indian market scenario. The MNC's have entered the fray, which
marketers have realized the value of consumers. Consumers orientation is the key
I feel it my pleasure to work on this topic and present this study in form of
research project report a that is essential for every MBA student. The purpose of this
project is to provide the students with the practical exposure of the market in
analytical thinking process. It provides with basic skills required to perform the
survey; and statistical tools required analyzing the data. Also it makes more
aware about the perceptions and tastes of consumers. Thus it helps in molding the
Consumers buying preferences tastes choices have changed and they have
of unsatisfaction among consumers. There has been a lot of change in the rural
consumers. Their living standard has got uplifted and they are ready to spend
The present study is based on the behaviour of the consumers in urban area
(Hisar) while purchasing cosmetics. It gives the information about the attitude,
product.
products.
cosmetic store.
exploited.
BOOKS
MAGAZINE
Reader Digest
WEBSITES
www.googlesearch.com
www.khoj.com
CONSUMER BUYING BEHAVIOUR AS REGARDS COSMETICS
11) Do you regularly use the same brand of cosmetics or change the bran
frequently? If yes, then reasons for changing.
Prince change ( )
New brand introduction ( )
Product improvement ( )
Package changes ( )
Advertising intensity ( )
Any other ( )
12) Do you use the same brand of cosmetics for all the existing product
categories in cosmetics? (Yes/No)
13) Have you eve experienced any inferiority/duplicity in cosmetics you have
purchased. If yes, how has that influenced your buying behaviour?
Brand switching ( )
Category switching ( )
Brand loyal ( )
Any other ( )
14) Does variety of cosmetics of a particular brand create a healthy
impression on your mind about the quality of cosmetics?
(Yes/No)
15) Does all your family members use same brand/ type of cosmetics
Same ( )
Different ( )
16) Do you think that the price of cosmetics in general is consummate with
the utility they offer?
(Yes/No)
Name
Age
Profession
Address