Lakme Report by Pallavi

A
DISSERTATION
ON
“A study of factors affecting towards lakme brand with
reference to Kota city”
Submitted
In Partial Fulfillment of the Requirements for the Degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED TO- SUBMITTED BY -

Miss Priyanka Kukreja Swapnil Dhara
Assistant Professor MBA 4th Sem.
Career Point University K-14338
CAREER POINT UNIVERSITY, KOTA (RAJ.)

MAY 2019
DECLARATION BY THE CANDIDATE
CERTIFICATE
I, hereby, declare that the work presented in this Dissertation, entitled “A STUDY OF
FACTORS AFFECTING TOWARDS LAKME BRAND WITH REFRENCE TO
KOTA CITY” in fulfillment of the requirements for the award of Degree of MASTER OF
BUSINESS ADMINISTRATION from Career Point University, Kota Rajasthan is an
authentic record of my own research work carried out under the supervision of “Miss
Priyanka Kukreja”. I, also declare that the work embodied in the present Dissertation is
my original work and has not been submitted by me for any other Degree or Diploma in any
University/Institution.
1
CERTIFICATE
This is to certify that the Dissertation, entitled “A STUDY OF FACTORS AFFECTING

TOWARDS LAKME BRAND WITH REFRENCE TO KOTA CITY” submitted by
pallavi sharma embodies the findings of his/her original research work carried out under
my/our supervision and it fulfils all the conditions prescribed by Career Point University,
Kota Rajasthan for the award of MASTER OF BUSINESS ADMINISTRATION. To the best
of my knowledge, the matter embodied in this thesis has not been submitted elsewhere for the
award of any other degree or diploma.
Signature
Miss Priyanka Kukreja
Assistant Professor
Date
3
ACKNOWLEDGEMENT
I owe a special sense of gratitude to my supervisor Ms.priyanka kukreja not only for
providing me guidance at each stage of the study but also for broadening the horizon of my
vision in the field of my dissertation report. This feat was possible only because of the
unconditional support provided by ma’am. A person with an amicable and positive
disposition, ma’am has always made herself available to clarify my doubts despite his busy
schedules and I consider it as a great opportunity to do my post graduate programme under
his guidance and to learn from his dissertation expertise. Thank you, Ma’am, for all your help
and support. Words indeed cannot adequately express my profound indebtedness towards her
as my guide, philosopher and mentor in the conduct of this report.
I acknowledge with pleasure the cooperation extended to me by the library staff of CPU,
Kota. Faculty of School of Commerce and Management for searching the relevant material
for my researches
Finally, and most important, I would like to appreciate the support and encouragement of my
family members.
Pallavi Sharma
MBA(4th sem)
4
TABLE OF CONTENTS
CHAPTER TOPIC PAGE NO.
1 Introduction 6
Profile of Organization 26
2 Review of Literature 28
3 Research Methodology 32
Hypothesis 33
4 Data Analysis and Interpretation 35
Hypothesis Testing 48
Findings 53
5 Conclusion And Recommendations 56
Questionnaire 59
List of Tables for Questions & Charts

PARTICULAR PAGE NO.
Respondents Age Category outcome. 35

Respondent’s Current Employment Status 36
Respondent’s Residential Area 37
Pie Chart for Question : 1 38
5
CHAPTER 1
INTRODUCTION
INTRODUCTION TO CONSUMER BEHAVIOR
Consumer behaviour is the study of when, why, how, and where people do or do not buy
product. It blends elements from psychology, sociology, social anthropology and economics.
It attempts to understand the buyer decision making process, both individually and in groups.
It studies characteristics of individual consumers such as demographics and behavioural
variables in an attempt to understand people's wants. It also tries to assess influences on the
consumer from groups such as family, friends, reference groups, and society in general.
Customer behaviour study is based on consumer buying behaviour, with the customer playing
the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset
for customer behaviour analysis as it has a keen interest in the re- discovery of the true
meaning of marketing through the re-affirmation of the importance of the customer or buyer.
A greater importance is also placed on consumer retention, customer relationship
management, personalisation, customisation and one-to-one marketing. Social functions can
be categorized into social choice and welfare functions.
Each method for vote counting is assumed as a social function but if Arrow’s possibility
theorem is used for a social function, social welfare function is achieved. Some specifications
of the social functions are decisiveness, neutrality, anonymity, monotonocity, unanimity,
homogeneity and weak and strong Pareto optimality. No social choice function meets these
requirements in an ordinal scale simultaneously. The most important characteristic of a social
function is identification of the interactive effect of alternatives and creating a logical relation
with the ranks. Marketing provides services in order to satisfy customers. With that in mind,
the productive system is considered from its beginning at the production level, to the end of
the cycle, the consumer.
Belch and Belch define consumer behaviour as 'the process and activities people engage in
when searching for, selecting, purchasing, using, evaluating, and disposing of products and
services so as to satisfy their needs and desires'.'
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FACTORS WHICH INFLUENCE CONSUMER BEHAVIOR
Internal influences
Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality,

motivation, knowledge, attitudes, beliefs, and feelings. consumer behaviour concern with
consumer need consumer actions in the direction of satisfying needs leads to his behaviour of
every individuals depend on thinking.
External influences
Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family,

social class, reference groups, lifestyle, and market mix factors
Consumer purchases are influenced strongly by or there are four factors. The following are
the certain factors which influence the consumer behavior:
Cultural Factor :-
Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class
Culture:-
The set of basic values perceptions, wants, and behaviours learned by a member of society
from family and other important institutions. Culture is the most basic cause of a person’s
wants and behaviour. Every group or society has a culture, and cultural influences on buying
behaviour may vary greatly from country to country.
Sub Culture :-
A group of people with shared value systems based on common life experiences and
situations. Each culture contains smaller sub cultures a group of people with shared value
system based on common life experiences and situations. Sub culture includes nationalities,
religions, racial group and geographic regions. Many sub culture make up important market
segments and marketers often design products.
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Social Class:-
Almost every society has some form of social structure, social classes are society’s relatively
permanent and ordered divisions whose members share similar values, interests and
behaviour.
Social Factors :-
A consumer’s behaviour also is influenced by social factors, such as the (i) Groups (ii)
Family (iii) Roles and status
Groups :-
Two or more people who interact to accomplish individual or mutual goals.A person’s
behavious is influenced by many small groups. Groups that have a direct influence and to
which a person belongs are called membership groups. Some are primary groups includes
family, friends, neighbours and coworkers. Some are secondary groups, which are more
formal and have less regular interaction. These includes organizations like religious groups,
professional association and trade unions.
Family:-
Family members can strongly influence buyer behaviour. The family is the most important
consumer buying organization society and it has been researched extensively. Marketers are
interested in the roles, and influence of the husband, wife and children on the purchase of
different products and services
Roles and Status :-
A person belongs to many groups, family, clubs, organizations.The person’s position in each
group can be defined in terms of both role and status.
Personal Factors :-
It includes Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v)
Personality and self concept.
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Age and Life cycle Stage:-
People changes the goods and services they buy over their lifetimes. Tastes in food, clothes,
furniture, and recreation are often age related. Buying is also shaped by the stage of the
family life cycle.
Occupation :-
A person’s occupation affects the goods and services bought. Blue collar workers tend to buy
more rugged work clothes, whereas white-collar workers buy more business suits. A Co. can
even specialize in making products needed by a given occupational group. Thus, computer
software companies will design different products for brand managers, accountants,
engineers, lawyers, and doctors
Economic situation :-
A person’s economic situation will affect product choice.
Life Style :-
Life Style is a person’s Pattern of living, understanding these forces involves measuring
consumer’s major AIO dimensions. i.e. activities (Work, hobbies, shopping, support etc)
interest (Food, fashion, family recreation) and opinions (about themselves, Business,
Products)
Personality and Self concept :-
Each person’s distinct personality influence his or her buying behaviour. Personality refers to
the unique psychological characteristics that lead to relatively consistent and lasting
responses to one’s own environment.
Psychological Factors :-
It includes these Factors. i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes
Motivation :-
Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of
the need.
9
Perception :-
The process by which people select, Organize, and interpret information to form a
meaningful picture of the world.
Learning:-
Changes in an individuals behaviour arising from experience.
Beliefs and attitudes :-
Belief is a descriptive thought that a person holds about something Attitude, a Person’s
consistently favourable or unfavourable evaluations, feelings, and tendencies towards an
object or idea
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INTRODUCTION TO COSMETICS INDUSTRY IN INDIA
India, with a population of nearly a billion people, is a country of contrasts. India's urban
population is the main engine that fuels the demand for various cosmetic products. The
‘morphing’ of India is subtle and the changes are not visible for the first time visitor.
However, the market liberalization process that began in 1991, along with the crowning of
three Indians as Miss World and Miss Universe during the preceding four years, have made
Indian women conscious of their appearance. Consequently, the cosmetic consumption
patterns of Indian women have changed, and this trend is fuelling growth in the cosmetic
sector. The Indian cosmetics and toiletries market grew by 8.7% in current value terms in
2001, with value sales amounting to Rs126 billion.
The market for cosmetics and toiletries in India is characterized by high volume sales of low-
end toiletry products, while at the same time the legendary emerging middle- class has
generally been fuelling demand for cosmetics and upper-mass toiletries.Products that are too
specialized have yet to be successful on the Indian market. Examples include toners, hand
care and other value-added skin care products, bath & shower products and aftershave balm.
Only the richest consumers can afford these; indeed, the average consumer may be unaware
of their purpose or even existence.This also explains the relatively poor showing of perfumes,
especially the premium variety.
This cosmetics and personal care industry has been growing at an average rate of 20 per cent
for the last few years. The growing Indian cosmetics market offers promising prospects for
international brands. The growth rate in the cosmetics market reflects an increasing demand
for beauty care products in India. Perfumes and fragrances, skin care, and hair care products
are some of the major segments with promising prospects for U.S. companies. Penetration of
most cosmetic and toiletries is very low in India. Current consumption of many products is
well below that of many countries in Asia. The low market penetration of many cosmetics
and personal care products offers room for growth.
Market Overview :
The current size of the Indian cosmetic market is approximately US$ 600 million. Of this, the
fastest growing segment is color cosmetics, accounting for around US$ 60 million of the
market. Industry sources estimate a rapid growth rate of 20 percent per annum across
different segments of the cosmetics industry reflecting an increasing demand for all kinds of
11
beauty and personal care product. Growth has come mainly from the low and medium-priced
categories that account for 90 percent of the cosmetics market in terms of volume.
Nail enamels and lipsticks account for around 65 percent of total color cosmetic sales in
India. Lakme, a brand originally introduced by the Tata group of India, now bought over by
Hindustan Lever (HLL) of the Unilever group, Tips & Toes, another domestic player, and
Revlon dominate the US$ 60 million color cosmetics market.
Multinationals, Revlon of the U.S. and L'Oreal's Maybelline has a dominant share of the
small premium lipsticks and nail enamels market. Mass-market products account for a major
share; while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per
cent in nail enamels. The skin care market in India is estimated at US$ 180 million. Within
the last decade, this segment has seen many consumers slowly shift from the mass to the
premium end of the market. In the skin-care segment, price and volume played an equal role
in value growth. From a very basic level of most consumers using only face cream and
moisturizers, the market for more specialized skin care products such as sun screens, toners,
cleansers, and astringents, dark circle removing creams, anti-wrinkle creams and day and
night creams seems to have grown steadily in recent years.
Moisturizing lotions, fairness creams and face cleansers are the popular categories in the
skin-care segment and account for approximately 60 percent of the skin-care segment. The
major players in this segments are Lakme, Ponds, Fair & Lovely of the HLL group with a 50
percent market share, followed by players such as J.L. Morison that markets the Nivea range
of products in India, Godrej and Revlon. The size of the hair care market in India is estimated
at more than US$ 200 million, 50 percent of which interestingly comes from sales of
shampoo. International companies like Unilever through its subsidiary, Hindustan Lever (Sun
silk, Organics, Clinic, and Lux); and Procter & Gamble (with brands such as Pantene, Head
& Shoulders) dominate the shampoo market in India with approximately 58 and 20 percent
market share respectively.
The market for hair creams, mainly used for hair grooming by men is also very small. Hair
oiling, an age old tradition of Indians and mainly used as a pre-wash nourishment is a major
segment in this sector and has giants like HLL and local Dabur and Marico Industries
fighting for market share in the hair oil segment. More and more shelves in shops and
boutiques are stocked with cosmetics from around the world. Since liberalization, many
international brands like Avon, Burberrys, Calvin Klein, Cartier, Christian Dior, Estee
12
Lauder, Elizabeth Arden, Lancome, Chambor, Coty, L'Oreal, Oriflame, Revlon, L'Oreal,
Yardley, Wella, Schwarzkopf, Escada, Nina Ricci, Rochas, Yves St. Laurent and Japanese
cosmetics company, Shiseido have entered the Indian market.
The prices of most foreign brands have been fairly high, which has deterred average Indian
consumers. International brands cater to a segment that can broadly be classified as the urban
higher income group. Penetration levels of international cosmetics brands in India are still
low. Foreign brands currently constitute only 20 percent of the market. A major reason for
low penetration of international brands can be attributed to high pricing.
Market Trends
Cosmetics and toiletries are not just the domain of women any longer and Indian men too are
increasingly taking to the use of more and more body sprays, perfumes and other cosmetics
and toiletries. With rising demand from men, the Indian market is getting enlarged and many
players are coming out with cosmetic products especially skin care products for men. In the
last five/six years, there has been a renewed craze for herbal cosmetic and personal care
products, especially in the skin care segment with the growing belief that chemical-based
cosmetics are harmful. Shehnaz Hussain, Biotique, and Lotus Herbals are the major players
in this segment. Many companies also expanded their range to include herbal variants. The
growing popularity for natural products also attracted many primarily health-care companies
such as Himalaya Drugs (with its Ayurvedic Concepts range), and Dabur to launch natural-
based cosmetic products.
Import Market
Costs for importing products are much higher than producing it in the country. India allows
entry of imported cosmetics without any restrictions but the average import tariff on
cosmetics products is currently very high at 39.2 percent. This makes imported products very
expensive for most consumers. Most foreign cosmetics companies selling premium brands
have had a difficult time developing the low volume premium market in India.
Competition
The Indian cosmetic market, which has been traditionally a stronghold of a few major Indian
players like Lakme, and Ponds has seen a lot of foreign entrants to the market within the last
decade. India is a very price sensitive market and the cosmetics and personal care product
13
companies, especially the new entrants have had to work out new innovative strategies to suit
Indian preferences and budgets to establish a hold on the market and establish a niche market
for themselves. HLL and Revlon were the first to introduce small pack sizes. Revlon
introduced its small-range of 8 ml nail polishes and lipsticks, and was soon followed it its
strategy by major Indian companies as well.
Small pack sizes have proved to be very popular in the Indian market as it offers a consumer
lower purchase cost and the opportunity to try new products. . In the skin- care segment, from
just creams and moisturizers, there has been a upgrade to value- added products such as
under-eye wrinkle removing creams, dark circle removing creams toners, sunscreen lotions,
fairness creams, and many more.
The color cosmetics market saw new products such as smudge-proof lipsticks and mascaras,
liquid lip color, and long-stay lipsticks being introduced. These specialized applications led to
growth in volumes and also enabled companies to price the products at a premium, driving up
value growth.
L'Oreal markets its range of specialized hair care products exclusively through salons and
beauty parlors. L'Oreal currently is the only company in the market that has a hair color range
tailored exclusively for parlors. The company was also the first to introduce modern hair
color and shampoos for colored hair in the Indian market.
A strong brand promotional campaign, good distribution network, constant product

innovation and quality improvement, and the ability to provide a variety of quality products
are some of the major reasons for the success of most companies.
HUL, is currently India's largest cosmetics and personal care products producer and its
brands has the dominant share (more than 50 percent) in segments such as personal wash,
skin care, shampoos, lipsticks and nail polish.
Sales Prospects
The growing Indian cosmetics market offers promising opportunities for international brands.
The growth rate in the cosmetics market reflects an increasing demand for beauty care
products in India. The most promising segments for international companies to pursue are
perfumes and fragrances, and specialized/professional skin care and hair care products. The
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fastest growing market is however color cosmetics, which account for US$ 60 million of the
total market.
The rural market in India for cosmetics and toiletries remains is largely untapped. Major
domestic players have also not been able to penetrate this market. The urban market itself for
specialized cosmetic products remains to be fully exploited. The Indian skin-care market is
not yet fully tapped and offers promising prospects as a growth area. Penetration of color
cosmetics is lower than the penetration prospects of the skin-care segment.
To promote the growth of their products, a dominant player like Lakme have embarked upon
a business plan to establish their exclusive franchised beauty salons across major metros in
the country. Imported cosmetics have had a major impact on the Indian market.
L'Oreal India has established a consumer advisory unit and Ponds, as mentioned earlier offers
skin care advise through touch-screen kiosks, and telephone help-lines. Beautique - an
exclusive one-stop shop for only imported cosmetic brands set up recently in New Delhi has
qualified beauty consultants to provide free advice and make overs to consumers.
Market Access
Prior to March 31, 1999, India had cosmetics and toiletries on its restricted list of imports and
a special import license was required for import of cosmetics and toiletries into the country.
This regulation has now been done away with and, India today, permits import of cosmetics
and toiletries without any restrictions. This has made the Indian market more attractive to
foreign cosmetic companies. Imports have been made easier, but not necessarily cheaper.
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INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED
Hindustan Unilever Limited (HUL) (BSE: HUL) is India's largest fast moving consumer
goods company, touching the lives of two out of three Indians with over 20 distinct categories
in home & personal care products and food & beverages. They endow the company with a
scale of combined volumes of about 4 million tonnes and sales of over Rs. 13,000 crores.
HUL is also one of the country's largest exporters; it has been recognised as a Golden Super
Star Trading House by the Government of India.
HUL was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as
Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co.
Ltd. and United Traders Ltd.. It is headquartered in Mumbai, India and has an employee
strength of over 15,000 employees and contributes for indirect employment of over 52,000
people. The company was renamed in June 2007 to “Hindustan Unilever Limited”.
In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25
years by Businessworld, one of India’s leading business magazines . The rating was based on
a compilation of the magazine annual survey of India’s Most Reputed Companies over the
past 25 years. HUL is the market leader in Indian consumer products with presence in over
20 consumer categories such as soaps, tea, detergents and shampoos amongst others with
over 700 million Indian consumers using its products. It has over 35 brands. Sixteen of
HUL’s brands featured in the ACNielsen Brand Equity list of 100 Most Trusted Brands
Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in
the Most Trusted Brands List. It’s a company that has consistently had the largest number of
brands in the Top 50 and in the Top 10 (with 4 brands).
Hindustan Unilever's distribution covers over 1 million retails outlets across India directly
and its products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail
outlets in India. It has 39 factories in the country. Two out of three Indians use the company’s
products and HUL products have the largest consumer reach being available in over 80 per
cent of consumer homes across India.
The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever
Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of
World’s Most Reputed companies in 2007.
16
History – Chronology
In the summer of 1888, visitors to the Kolkata harbor noticed crates full of Sunlight soap
bars, embossed with the words "Made in England by Lever Brothers". With it, began an era
of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy
soap in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati ghee was launched
in 1918 and the famous Dalda brand came to the market in 1937.
In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing
Company, followed by Lever Brothers India Limited (1933) and United Traders Limited
(1935). These three companies merged to form HUL in November 1956; HUL offered 10%
of its equity to the Indian public, being the first among the foreign subsidiaries to do so.
Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed
among about 360,675 individual shareholders and financial institutions.
The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company
had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was
formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition.
The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in
1972, and in 1977 Lipton Tea (India) Limited was incorporated.
Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the

most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills
Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet
another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever
Limited, to market Lakme's market-leading cosmetics and other appropriate products of both
the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its
50% stake in the joint venture to the company.
Some of its brands include Kwality Wall's ice cream, Knorr soups & meal makers, Lifebuoy,
Lux, Breeze, Liril, Rexona, Hamam and Moti soaps, Pureit water purifier, Lipton tea, Brooke
Bond tea, Bru coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and
Wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond’s talcs
and creams, Vaseline lotions, Fair and Lovely creams, Lakmé beauty products, Clinic Plus,
Clinic All Clear, Sunsilk and Dove shampoos, Vim dishwash, Ala bleach, Domex
disinfectant, Rexona, Modern Bread, and Axe deosprays.
17
COMPETITORS
Procter and Gamble (P&G) India : HUL faces a fierce competition from P&G India in its key
segments i.e. Detergents and Personal Care. It operates in India thorugh three subsidiaries:
Procter and Gamble Home Products (100% subsidiary of the company), Procter and Gamble
Hygiene and Health care Ltd. (PGHH) and Gillette India Ltd. It has in its portfolio some of
P&G's Billion dollar brands such as Vicks & Whisper in health care and Ariel and Tide in
detergents segments.
Godrej Consumer Products Ltd. (GCPL): It has two segments: Soap (64% of revenues) and
Personal Care.GCPL is second largest soap player in India after HUL with a market share of
9.2%. Personal Care includes hair care products, shaving cream and other toiletries.On
December 11, 2008, it acquired 100% stake in SCA Hygiene Products which owns the
Snuggy brand of baby diapers.
Dabur India Limited - Dabur India Limited is an India-based fast moving consumer goods
company which deals in healthcare, personal care and food products.In November 2008,
Dabur India Limited announced the acquisition of 72.15% of Fem Care Pharma Ltd which is
primarily engaged in the business of export of personal care products.
Colgate-Palmolive (India) Limited : It manufactures a range of products marketed under the

Colgate which includes oral care products and Palmolive (skin care and hair care products)
brand names. Marico Limited:Marico has a portfolio on high margin "Beauty and Wellness"
platform which includes hair oils, soaps, edible oils, skin care etc. This portfolio has shown a
growth of 30% over a period of FY05-08.
INTRODUCTION OF LAKME UNILEVER PRIVATE LTD
“Lakme is the Indian woman’s Beauty Sutra” – inspiring expression of her unique beauty and
sensuality.Lakme brings expert products and services that are borne out of true understanding
of the needs of the Indian woman. They help the Indian woman in expression of her best self
– sensual, original, expressive, alive and intuitive. Lakme inspires her to unleash the potency
of her femininity, beauty and sensuality
Key facts
Lakme was the first major beauty brand in India and takes pride in being the expert on Indian
Beauty for over 50 years. It is complete beauty brand spanning colour cosmetics, skin care &
18
hair styling products and extending to beauty services through the network of Lakme Beauty
Salons. Its bond with beauty and fashion is manifested through the Lakme Fashion Week,
which is now the largest fashion event of its kind in the country. Lakme has a foot print of
over 1200 assisted sales outlets, which is the largest span of outlets with “Beauty Advisors”
in the country.
Our vision
Unilever products touch the lives of over 2 billion people every day – whether that's through
feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh
and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.
A clear direction
The four pillars of our vision set out the long term direction for the company – where we
want to go and how we are going to get there:
 We work to create a better future every day

 We help people feel good, look good and get more out of life with brands and services
that are good for them and good for others.
 We will inspire people to take small everyday actions that can add up to a big
difference for the world.
 We will develop new ways of doing business that will allow us to double the size of
our company while reducing our environmental impact.
Purpose & principles
Our corporate purpose states that to succeed requires "the highest standards of corporate
behaviour towards everyone we work with, the communities we touch, and the environment
on which we have an impact."
 Always working with integrity
Conducting our operations with integrity and with respect for the many people, organisations
and environments our business touches has always been at the heart of our corporate
responsibility.
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 Positive impact
We aim to make a positive impact in many ways: through our brands, our commercial
operations and relationships, through voluntary contributions, and through the various other
ways in which we engage with society.
 Continuous commitment
We're also committed to continuously improving the way we manage our environmental
impacts and are working towards our longer-term goal of developing a sustainable business.
 Setting out our aspirations
Our corporate purpose sets out our aspirations in running our business. It's underpinned by
our code of business Principles which describes the operational standards that everyone at
Unilever follows, wherever they are in the world. The code also supports our approach to
governance and corporate responsibility.
 Working with others
We want to work with suppliers who have values similar to our own and work to the same
standards we do. Our Business partner code, aligned to our own Code of business principles,
comprises ten principles covering business integrity and responsibilities relating to
employees, consumers and the environment.
A vitality mentality
Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene
and personal care with brands that help people feel good, look good and get more out of life.
Our deep roots in local cultures and markets around the world give us our strong relationship
with consumers and are the foundation for our future growth. We will bring our wealth of
knowledge and international expertise to the service of local consumers – a truly multi-local
multinational. Our long-term success requires a total commitment to exceptional standards of
performance and productivity, to working together effectively, and to a willingness to
embrace new ideas and learn continuously.
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Code of business principles
 Standard of Conduct We conduct our operations with honesty, integrity and

openness, and with respect for the human rights and interests of our employees.
 Obeying the Law Unilever companies and our employees are required to comply
with the laws and regulations of the countries in which we operate.
 Employees Unilever is committed to diversity in a working environment where there

is mutual trust and respect and where everyone feels responsible for the performance
and reputation of our company. We will recruit, employ and promote employees on
the sole basis of the qualifications and abilities needed for the work to be performed.
 Consumers Products and services will be accurately and properly labelled, advertised
and communicated.
 Shareholders Unilever will conduct its operations in accordance with internationally

accepted principles of good corporate governance. We will provide timely, regular
and reliable information on our activities, structure, financial situation and
performance to all shareholders.
 Business Partners Unilever is committed to establishing mutually beneficial relations

with our suppliers, customers and business partners.
 Community Involvement Unilever strives to be a trusted corporate citizen and, as an

integral part of society, to fulfil our responsibilities to the societies and communities
in which we operate.
 Public Activities Unilever companies are encouraged to promote and defend their
legitimate business interests. Unilever will co-operate with governments and other
organisations, both directly and through bodies such as trade associations, in the
development of proposed legislation and other regulations which may affect
legitimate business interests..
21
 The Environment Unilever is committed to making continuous improvements in the
management of our environmental impact and to the longer-term goal of developing a
sustainable business.
 Innovation In our scientific innovation to meet consumer needs we will respect the
concerns of our consumers and of society.
 Competition Unilever believes in vigorous yet fair competition and supports the
development of appropriate competition laws.
 Business Integrity Unilever does not give or receive whether directly or indirectly
bribes or other improper advantages for business or financial gain. No employee may
offer give or receive any gift or payment which is, or may be construed as being, a
bribe.
 Conflicts of Interests All Unilever employees are expected to avoid personal

activities and financial interests which could conflict with their responsibilities to the
company. Any breaches of the Code must be reported in accordance with the
procedures specified by the Chief Legal Officer.
 Business Partner Code We are committed to working with our business partners to
achieve high standards and to provide greater transparency on how we work together.
 Maintaining high standards together To meet the expectations our consumers have
of our brands as high quality, reliable products, we form close working relationships –
many of them long-term – with our business partners. In support of this approach, we
have developed a Business Partner Code that is compatible with our Code of Business
Principles. The Code makes clear the standards to which we expect our business
partners to adhere. It contains 10 principles covering business integrity and
responsibilities relating to employees, consumers and the environment.
Business partner code There shall be compliance with all applicable laws and regulations of
the country where operations are undertaken. There shall be respect for human rights, and no
employee shall suffer harassment, physical or mental punishment or other form of abuse.
22
Wages and working hours will, as a minimum, comply with all applicable wage and hour
laws, and rules and regulations, including minimum wage, overtime and maximum hours in
the country concerned .There shall be no use of forced or compulsory labour, and employees
shall be free to leave employment after reasonable notice .
There shall be no use of child labour, and specifically there will be compliance with relevant
ILO standards .There shall be respect for the right of employees to freedom of association*
.Safe and healthy working conditions will be provided for all employees.
 Corporate Governance We have always aspired to high standards of corporate

governance. Transparency and accountability are the two basic tenets of Corporate
Governance. We, at Hindustan Unilever, feel proud to belong to a Company whose
visionary founders had laid the foundation stone for good governance long back and
made it an integral principle of the business, demonstrated in the words above.
Our approach to Corporate Governance To succeed, we believe, requires the highest

standards of corporate behaviour towards everyone we work with, the communities we touch,
and the environment on which we have an impact. This is our road to sustainable, profitable
growth and creating long-term value for our shareholders, our people, and our business
partners.
LAKME’S POSITIONING IN TERMS OF PERSONALITY AND SELF CONCEPT:
Lakme is a product range that caters to the beautification needs of not only women in their
adult age but in today's context teenagers also. It has a brand personality of someone who
takes care of you and your beauty needs. It tries to position itself amongst its consumers as a
product range that will help them look beautiful as is evident from its catchphrases:
1. On top of the world!

2. Source of radiant beauty1!
Lakme has a range of beauty products to offer to its consumers. Some of the ways in which it
tries to position itself:
1. Lakme Hair Color: magic of colors (collage).

2. Lakme (versatile eye shadow collection): rich, long lasting and healthy make up.
23
3. Lakme fair perfect: For flawlessly fair skin!
4. Lakme face magic: daily wear soufflé.
5. Lakme (skin vitalizer): radiant skin, now and forever.
6. Lakme (moisturizer): radiant skin, now and forever.
7. Lakme nail polish and lipstick: electric brilliance/sensual brilliance
8. Lakme sun expert (sunscreen): sun safe hamesha! (face the sun with a smile)
9. Lakme pure defense: anti-pollution system.
10. Lakme Tropical Island (cosmetics): defining the future of fashion.
11. Lakme hair care (international): natural hair care
12. Lakme hair next: exclusive range of hairstyle products that give you that salon look
instantly.
On the basis of above mentioned positioning strategies Lakme can have the following
characteristics that determine its personality:
 Someone who takes care of your beauty needs.

 A long lasting beautification product range.
 Something that is not harsh on your body or harmful for your beauty.
 A product that provides you with an option of getting beautiful hair.
 A product that helps you get a beautiful skin.
 A cosmetic product that you can wear for the entire day and not a special occasion.
 Someone who tells you right things about looking good.
 It's an Indian cosmetic brand.
 It covers all facets of beauty care for women.
The following factors of Lakme's personality help in differentiation of its products from the
competition:
It covers all facets of beauty care.
It helps arm the consumer with products to pamper her from head to toe i.e. a complete
product range.
24
HOW LAKME IS INFLUENCING ITS CONSUMERS?
THE CONCEPT OF EGO: · According to Freudian Psychoanalytic theory Lakme tries to

position itself on the basis of its appeal to the consumers which have an ego. This means that
the consumers of Lakme have an impulsive drive for which they seek immediate satisfaction
without concern for means of satisfaction. · Women all over the world are always expected to
look good and Indian women are no exception; More so because of the fact that Indian
women in general do not have a fair skin like that of their western counterparts. Thus it
becomes but natural for Indian women to try and look good and use beauty products that help
enhance their looks and style. With globalization and liberalization of Indian economy and
the changing demographics and income levels there is more and more concern to look good
as today's Indian woman is no longer confined to her home but is a big contributor to the
growth of Indian economy.
THE CONCEPT OF PERSONALITY GROUPS: ·Lakme tries to woo the compliant

consumers according to Karen Horney's classification4 of personality groups i.e. people who
move towards others. Those who have desire to be loved, wanted and appreciated. As is
earlier stated women are supposed to look good not only in western countries but also in
India. Women always appreciate if someone calls them beautiful and it has become the
custom of the society to see women in such a context. So it would be prudent to say that
according to the societal norms a women has to look good at all times and which has a
bearing on the psychology of female consumers towards cosmetic products which help them
achieve that desired look. Needless to say that Lakme plays on the concept of women
wanting themselves to be appreciated for their beauty and being loved for that.
CONCEPT OF PERCEPTUAL SELECTION: On the basis of perceptual selection Lakme

has tried to position itself among its consumers in the following ways: Lakme has tried to
gain the attention of its consumers by line extension and having more and more product
depth, packaging and attractive print advertisements. If we look at the line extensions of
Lakme than we would observe that it is in almost all the segments of cosmetic care ranging
from hair care to skin care to beauty salons! Looking at the product depth it is pretty evident
that Lakme has actually tried to fill in all areas that it can, particularly the nail paint and the
lip color segment is a big hit among Indian women as it offers them a wide variety of
products in terms of colors as well as various styles that they can choose from.
25
PROFILE OF THE ORGANISATION
Name of the company : LAKME UNILEVER PRIVTAE LTD
Address of Head office : 165166 hindustan lever house Backbay reclamation, church
gate Mumbai,Maharashtra.india 400020
City : baddi
State : HIMACHAL PRADESH
Status : Private
Telephone number : -+91 2222870622
Email : info@lakmelever.com
Website : http://lakmeindia.com
Chief executive officer : Mr.Anil chopra
Contact person : Richa puranesh- marketing manager
Mobile no : 912222850552
26
Company’s product range:
Lakme Lipstick.
Lakme kajal
Lakme eyeliner
Lakme strawberry facewash
Lakme radiant rose powder
Lakme Radient Rose Powder.
Lakme Nail Enamel Remover.
Lakme Strawberry Silk Cream
Lakme deep pore cleansing milk
27
CHAPTER 2
REVIEW OF LITERATURE
New scientific developments, techniques, products and media hype, has contributed the
Indian fashion industry in generating mega revenues and this has in turn added to the growth
of cosmetic industry. Rising hygiene and beauty consciousness due to changing
demographics and lifestyles, deeper consumer pockets, rising media exposure, greater
product choice, growth in retail segment and wider availability are the reasons reported by
(Euromonitor International, 2006).
Briney (2004) describes an interesting trend among Indian cosmetic consumers, while other
global countries are taking to the traditional Indian herbal and ayurvedic applications for
beauty solutions, Indian consumers are increasingly looking to international personal care
brands as lifestyle enhancement products, in the belief that the association with and use of an
international brand confers one with a sophisticated and upper class image.
According to the study conducted by Dr. Vinith Kumar Nair and Dr. Prakash Pillai R
male consumers generally prefer to purchase and make the brand selection of cosmetics
individually. Quality is the major factor influencing the purchase decision of male consumers.
They tend to buy cosmetic items from a single shop of their convenience. It is also observed
that male consumers buy all their cosmetic items from one shop.
According to Park et al. (1986), the construction and maintenance of the brand image is
prerequisite to the brand management . Theoretically, all products and services could be
demonstrated by functional, symbolic or experimental elements, through which brand
image is established. Up to now, scholars haven’t come to an agreement on the definition of
brand image. Throughout prior literature, researchers define brand image mainly from four
perspectives: blanket definitions, meanings and messages, personification, cognitive or
psychological elements.
It is said that consumers behavior towards branded products or services according to
their age, gender and personality traits and people get social according to their
personality traits. The research explicated that individuals behave differently towards the
28
same brand according to their gender. So gender is the basis of determining the consumer
behavior .
Bijal Zaveri19 in his study “The Consequent Consumer Behaviour in Cosmetic Industry- A
Study of Lakme’s Competitive Position and Advertisement Effectiveness and Awareness of
Lakme Beauty Saloon in Baroda city” highlighted that women in the age group 25-35 were
more beauty conscious. Lakme was the market leader which was followed by Revlon and
L’oreal. The study revealed that advertisement has the impact in creating brand awareness.
Gomatheeswaran identified his study, “An Analysis of the Consumer Preference for lakme
in Coimbatore City” that consumers prefer to purchase products from the shops where they
were neatly displayed. The study proves that consumers were more reluctant to purchase
chemical cosmetic products due to their side effects. The major factor which influences the
consumers was the price of the lakme.
Hemapatil et al., stated in their study, ‘The Consumer Behaviour towards Package of
lakme’ that consumers prefer package, labeling in lakme. Since it acts as promotion they felt
that label should contain the usage instruction, caution, price, company name and address.
Bijal Zaveri in his study “The Consequent Consumer Behaviour in Cosmetic Industry- A
Study of Lakme’s Competitive Position and Advertisement Effectiveness and Awareness of
Lakme Beauty Saloon in Baroda city” highlighted that women in the age group 25-35 were
more beauty conscious. Lakme was the market leader which was followed by Revlon and
L’oreal. The study revealed that advertisement has the impact in creating brand awareness.
Kavitha in her article, “A Study on the Effectiveness of the Advertising Techniques used in
the Personal Care Segment of Women Consumers” highlighted that a great majority of the
women consumers have chosen Lakme as the best brand and its advertisement techniques
have been widely appreciated by all.
29
When consumers perceive an advertisement for a certain brand as promoting another, it is not
only ineffective, but even counterproductive (Kamen, 1987; Poiesz and Verhallen, 1989): it
produces an effect that the advertiser specially wants to avoid.
Therefore, perception, although seldomly studied, is a phenomenon that has an impact over
its consumers, and researchers. unremitting attention, and measures of consumer behavior
and perception should be added to the more conventional measures to increase the sales of a
product(Poiesz and Verhallen, 1989).
A. Sengupta and Noopur Agrawal

Not only the consumer behavior but the perception of consumers, may be the subject of
people buying the products of lakme (Poiesz and Verhallen, 1989).Correct identification and
confusion are not perfectly related. It is possible that the recipient of the message cannot
attribute any particular brand to an advertising message, in which case he/she is not really
confused, but simply does not have any idea.
A consumer confusing brands thinks he/she recognises the brand. Depending upon what is
the perception of the consumers, it can be positive or negative. (Häcker and Verhallen, 1988;
Poiesz and Verhallen, 1989). Negative perception refers to the extent to which the
respondents will not buy the product. Positive brand perception refers to the degree to which
the other respondents are willing to buy the product. Positive Brand perception is an
advantage for a brand. Negative brand perception may be a threat to a clear positioningof the
product amongst the women.
Products are becoming more and more objectively similar with respect to their functionality
and product presentation (Poiesz and Verhallen, 1989). Ha (1996) refers to the degree of
similarity and proximity of advertisements. (De Pelsmacker and Geuens, 1997a).the more the
proximity the more consumers are prone to buy the products.
Successful advertising techniques get imitated and waves of similar advertising arise. It can
be expected that a higher DOSS leads to more brand confusion. In parallel, similarity in
30
visual appearance of products has also been found to be a major reason for confusion in
advertising (Loken and Ross, 1986; Ward and Loken, 1986).Furthermore, in a study of brand
perception of
consumers cited the product or the packaging. as a primary reason for recognition and buying
of the product. (De Pelsmacker and Van Den Bergh, 1997b).
Brengman et al. (2001) found that Consumers most vulnerable to brand perception generally
have higher level of knowledge about the products which they are using.
31
CHAPTER 3
RESEARCH METHODOLOGY
Research required two types of data i.e. primary and secondary data.
Primary data: structured questionnaire
Secondary data: Company website
Text books and journals
Rational of study
To have insight of the research thesis topic following rational points have been formulated:
 To know about customer preference towards lakme brand.

 To know about factor affecting customer preference towards lakme brand.
 To understand the impact of fashion on customer buying behavior.
Objectives of study
To have insight of the research thesis topic following objectives have been formulated:
 To study the impact of advertising on buying behavior of customer

 To analyze the impact of changes in price on customer buying decision.
 To analyze the influence of social groups on customer buying decision
 To study the impact of quality on customer buying behavior .
 To identify the impact of fashion on customer buying behavior.
32
Hypothesis
Ho1: There is no significant relationship between advertising and buying behavior of

customer.
HA1: There is a significant relationship between advertising and buying behavior of customer.
HO2: There is no significant impact of change in price on customer buying behavior.
HA2: There is significant impact of change in price on customer buying behavior.
HO3: There is no significant relationship between quality and buying behavior of customer.
HA3: There is significant relationship between quality and buying behavior of customer.
HO4: There is no significant impact of social groups and customer buying decision
HA4: There is significant impact of social groups and customer buying decision.
HO5: There is no significant impact of fashion and customer buying behavior
HA5: There is significant impact of fashion and customer
33
Sampling plan
SAMPLING DESIGN A sample is a representative part of the population. In sampling

technique, information is collected only from a representative part of the universe and the
conclusions are drawn on that basis for the entire universe. A random sampling technique
was used to collect data from the respondents. A random sample is a sample selected from a
population in such a way that every member of the population has a equal chance of being
selected and the selection of any individual does not influence the selection of any other. The
selection is purely depends on chance. So while conducting the survey, 400 respondents were
selected at random.
SAMPLE SIZE Sample size denotes the number of elements selected for the study. For the
present study, 400 respondents were selected at convenient sampling.
SAMPLE DESCRIPTION The sampling procedure / methods of sampling have considered

convenient sampling method, which would be appropriate in this dissertation.
34
CHAPTER 4
DATA ANALYSIS AND INTERPETATION
Respondents age categories outcome.
Respondents
11.25% 18%
Under 18
31.25%
18 to 24
25 to 34
39.50%
35 to 44
Option Respondents Percentage

Under 18 72 18%
18 to24 158 39.5%
25 to 34 125 31.25%
35 to 44 45 11.25%
TOTAL 400 100%
Interpretation:-
There are 72 respondents under age category of 18, hence it occupy 18% of whole. There are
158 respondents under 18 to 24 which is maximum among all and hence has 39.5%. 31.25%
is of age category under 25 to 34 with 125 respondents. Finally with 45 respondents are of
age category under 35 to 44 which occupy 11.25%.
35
Respondent Current Employment status
Respondents
13.75%
42%
21.25% Full Time
Unemployed
self-Employed
Students
23%

Full Time 55 13.75%
Unemployment 85 21.25%
Self Employment 92 23%
Student 168 42%
TOTAL 400 100%
Interpretation:-
There are 55 respondents under category of Full Time, hence it occupy 13.75% of whole.
There are 85 respondents under unemployment category occupy 21.25%. 23% are in the
category of Self-employment with 92 respondents. Finally with 168 respondents are students,
which is maximum and hence occupy 42%.
36
Respondents Residential Area.
Respondents
14.25%
39%
12.50% Kunhadi
Talwandi
Dadawadi
16.25%
Gumanpura
17.50% Vigyan Nagar

Kunhadi (landmark City) 156 39%
Talwandi 70 17.5%
Dadabadi 65 16.25%
Gumanpura 50 12.5%
Vigyan Nagar 59 14.25
TOTAL 400 100%
Interpretation:-
There are 156 respondents from Kunhadi, occupy 39%. There are 70 respondents from
Talwandi occupy 17.5%. 16.25% are from Dadabadi with 65 respondents. 50 respondents are
from Gumanpura with 12.5% and finally 59 respondents from Vigyan Nagar which occupy
14.25.
37
Q1. Do lakme provide quality products?
Respondents
21% 10.50%
Strongly Agree
Agree
21.25% 39% Strongly Disagree
Disagree
8.25%
Neither Agree nor Disagree
Option Respondents Frequency Percentage Chi Square

Strongly Agree 42 80 10.5% 18.05
Agree 156 80 39% 72.2
Strongly Disagree 33 80 8.25% 27.62
Disagree 85 80 21.25% 0.31
Neither Agree nor 84 80 21% 0.0125
Disagree
TOTAL 400 400 100% 118.1925
Interpretation:-
42 respondents are Strongly Agree occupy 10.5%. 156 Respondents are just Agree with the
statement hence occupy 39% of whole. 8.25% are Strongly Disagree with 33 respondents. 85
Respondents are just Disagree with the statement and hence occupy 21.25%. Finally 84
respondents are Neither Agree nor Disagree with the statement and hence occupy least value
i.e. 0.0125%. In above chi square testing table, degree of freedom is 4 and the tabular value
of chi square is 9.488. The calculated value of chi square is 118.1925. Since the tabular value
is less than the calculated value of chi square so that null hypothesis will be rejected.
38
Q2. Are you Brand Loyal to Lakme?
Respondents
31.25%
Yes
68.75% No
Options Respondents Frequency Percentage Chi Square

Yes 275 200 68.75% 28.125
No 125 200 31.25% 28.125
TOTAL 400 400 100% 56.125
Interpretation:-
There are 275 respondents positive with statement and occupy 68.75%. 125 Respondents are
negative with statement and occupy 31.25% of whole. In above chi square testing table,
degree of freedom is 1 and the tabular value of chi square is 3.841. The calculated value of
chi square is 56.125. Since the tabular value is less than the calculated value of chi square so
that null hypothesis will be rejected.
39
Q3. What are the factors that influence you to purchase lakme Products?
Respondents
6%
14% 30%
Color/shades
14% Quality
Packaging
Versatility
36% Others

Color/shades 120 80 30% 20
Quality 144 80 36% 51.2
Packaging 56 80 14% 7.2
Versatility 56 80 14% 7.2
Others 24 80 6% 39.2
TOTAL 400 400 100% 124.8
Interpretation:-
120 respondents are influenced by color/shades occupy 30%.Quality of product influences

144 Respondents and occupy 36% of whole. 14% are influenced by Packaging with 33
respondents. 56 Respondents influenced by Versatility and hence occupy 14%. Finally 24
respondents are influenced by the other factors of the lakme Products which occupy 6% of
whole. In above chi square testing table, degree of freedom is 4 and the tabular value of chi
square is 9.488. The calculated value of chi square is 124.8. Since the tabular value is less
than the calculated value of chi square so that null hypothesis will be rejected.
40
Q4. Is price of the lakme product is according to the quality of Product?
Respondents
40.5
59.5 Yes
No

Yes 238 200 59.5% 7.22
No 162 200 40.5% 7.22
TOTAL 400 400 100% 14.44
Interpretation:-
There are 238 respondents positive with statement and occupy 59.5%. 162 Respondents are
negative with statement and occupy 40.5% of whole. In above chi square testing table, degree
of freedom is 1 and the tabular value of chi square is 3.841. The calculated value of chi
square is 14.44. Since the tabular value is less than the calculated value of chi square so that
null hypothesis will be rejected.
41
Q5. What do you think about Price level of lakme Products?
Respondents
30%
High
65% 5% Low
Optimum

High 120 133 30% 1.27
Low 20 133 5% 96
Optimum 260 134 65% 118.47
TOTAL 400 400 100 215.74
Interpretation:-
120 respondents say that the price level is High and hence occupation is 30% in pie chart. 20
respondents say that the price level is Low and hence occupation is 30% in pie chart. Finally
highest occupation with 65% in pie chart, there are 260 respondents says that price level is
optimum. In above chi square testing table, degree of freedom is 2 and the tabular value of
chi square is 5.991. The calculated value of chi square is 215.74. Since the tabular value is
less than the calculated value of chi square so that null hypothesis will be rejected.
42
Q6. Do Celebrity endorsements in advertisement attracts you towards lakme products?
Respondents
5% 17%
30% Strongly Agree
Agree
25%
Strongly Disagree
Disagree
23%

Strongly Agree 68 80 17% 1.8
Agree 100 80 25% 5
Strongly Disagree 92 80 23% 1.8
Disagree 120 80 30% 20
Neither Agree nor 20 80 5% 45
Disagree
TOTAL 400 400 100% 73.6
Interpretation:-
68 respondents are Strongly Agree occupy 17%. 100 Respondents are just Agree with the
statement hence occupy 25% of whole. 23% are Strongly Disagree with 92 respondents. 120
Respondents are just Disagree with the statement and hence occupy 30%. Finally 20
respondents are Neither Agree nor Disagree with the statement and hence occupy least value
i.e. 0.0125%. In above chi square testing table, degree of freedom is 4 and the tabular value
of chi square is 9.488. The calculated value of chi square is 73.6.. Since the tabular value is
less than the calculated value of chi square so that null hypothesis will be rejected.
43
Q7. Do You think that lakme products provides you with an option of Healthy and long
lasting harmless?
Respondents
5%
17%
Yes
58% No
20%
May Be
Not Sure

Yes 232 100 58% 174.24
No 80 100 20% 4
May Be 68 100 17% 10.24
Not Sure 20 100 5% 64
TOTAL 400 400 100% 252.48
Interpretation:-
There are 232 respondents positive with statement and occupy 58%. 80 Respondents are
negative with statement and occupy 40.5% of whole. 68 Respondents are with the option of
“May be” and occupy 17% of the pie chart. Finally, 20 Respondents are not Sure with the
statement and has occupation of 5% in pie chart. In above chi square testing table, degree of
freedom is 3 and the tabular value of chi square is 7.815. The calculated value of chi square is
252.48. Since the tabular value is less than the calculated value of chi square so that null
hypothesis will be rejected.
44
Q8. What is the reason that motivates you to use the products of Lakme Company?
Respondents
28% 25%
Economical
Easily Available
17%
Fashion
30% Measurable Result

Economical 100 100 25% 0
Easily available 68 100 17% 10.24
Fashion 120 100 30% 4
Measurable Result 112 100 28% 1.44
TOTAL 400 400 100% 15.68
Interpretation:-
100 respondents are found that product is economical and occupy 25% of pie chart. 68
Respondents says its is easily available and hence occupy 17% of whole. 120 Respondents
are motivated by fashion style of product and occupy 30% of the pie chart. Finally, 20
Respondents are motivated by its measurable result and has occupation of 28% in pie chart.
In above chi square testing table, degree of freedom is 3 and the tabular value of chi square is
7.815. The calculated value of chi square is 15.68. Since the tabular value is less than the
calculated value of chi square so that null hypothesis will be rejected.
45
Q9. For what purpose you use lakme products?
Respondents
Eyes
Lip Color
Nail Enamel
Face

Eyes 80 100 20% 4
Lip Color 40 100 10% 36
Nail Enamel 80 100 20% 4
Face 200 100 50% 0.25
TOTAL 400 400 100% 44.25
Interpretation:-
80 respondents are found to use the product for Eyes and occupy 20% of pie chart. 40
Respondents use it for Lip Color and hence occupy 10% of whole. 80 Respondents are using
its Nail Enamel products and occupy 20% of the pie chart. Finally, 200 Respondents use the
Facial products of lakme company and hence occupation of 50% in pie chart. In above chi
square testing table, degree of freedom is 3 and the tabular value of chi square is 7.815. The
calculated value of chi square is 44.25. Since the tabular value is less than the calculated
value of chi square so that null hypothesis will be rejected.
46
Q10. Does the advertisement of lakme brand influence your shopping needs?
Respondents
Strngly Agree
Agree
Strngly Disagree
Disagree

Strongly Agree 20 80 5% 45
Agree 112 80 28% 12.8
Strongly Disagree 36 80 9% 24.2
Disagree 140 80 35% 45
Neither Agree nor 92 80 23% 1.8
Disagree
TOTAL 400 400 100% 128.8
Interpretation:-
20 Respondents are Strongly Agree occupy 5%. 112 Respondents are just Agree with the
statement hence occupy 28% of whole. 9% are Strongly Disagree with 36 respondents. 140
Respondents are just Disagree with the statement and hence occupy 35%. Finally 92
respondents are Neither Agree nor Disagree with the statement and hence occupy 23%. In
above chi square testing table, degree of freedom is 4 and the tabular value of chi square is
9.488. The calculated value of chi square is 128.8. Since the tabular value is less than the
47
HYPOTHESIS TESTING
Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding a
population parameter. The methodology employed by the analyst depends on the nature of
the data used and the reason for the analysis. Hypothesis testing is used to infer the result of a
hypothesis performed on sample data from a larger population.
How Hypothesis Testing Works

In hypothesis testing, an analyst tests a statistical sample, with the goal of accepting or
rejecting a null hypothesis. The test tells the analyst whether or not his primary hypothesis is
true. If it isn't true, the analyst formulates a new hypothesis to be tested, repeating the process
until data reveals a true hypothesis.
Statistical analysts test a hypothesis by measuring and examining a convenience sample of
the population being analyzed. All analysts use a convenience population sample to test two
different hypotheses: the null hypothesis and the alternative hypothesis.
The null hypothesis is the hypothesis the analyst believes to be true. Analysts believe the
alternative hypothesis to be untrue, making it effectively the opposite of a null hypothesis.
Thus, they are mutually exclusive, and only one can be true. However, one of the two
hypotheses will always be true.
 Hypothesis testing is used to infer the result of a hypothesis performed on sample data
from a larger population.
 The test tells the analyst whether or not his primary hypothesis is true.
 Statistical analysts test a hypothesis by measuring and examining a convenience

sample of the population being analyzed.
48
FIRST HYPOTHESIS
Ho1: There is no significant relationship between advertising and buying behavior of

customer.
HA1: There is a significant relationship between advertising and buying behavior of customer
Result of Hypothesis Testing in Terms of HA1

1. Customer get attracted towards the celebrity endorsement in advertising of lakme
product.
2. Advertisement of lakme brand influence the shopping need of the customer.
PARAMETER Chi Square Tabular Value Result

Value of Chi Square
Customer get attracted towards the 73.6 9.488 Accepted

celebrity endorsement in advertising of
lakme product.
Advertisement of lakme brand influence 128.8 9.488 Accepted
the shopping need of the customer
Since The above Results shows that Null hypothesis is rejected and hence Alternative
Hypothesis will automatically accepted i.e. There is significant relationship between
advertising and buying behavior of customer.
SECOND HYPOTHESIS
HO2: There is no significant impact of change in price on customer buying behavior.
HA2: There is significant impact of change in price on customer buying behavior

Result of Hypothesis Testing in Terms HA2
1. Price level of lakme according to customer.
2. Price of lakme brand’s product according to the quality of the product.
49
Value of Chi Square
Price level of lakme according to 215.74 5.991 Accepted

customer.
Price of lakme brand’s product according 14.44 3.841 Accepted

to the quality of the product.
Hypothesis will automatically accepted i.e. There is significant relationship between price
and buying behavior of customer.
THIRD HYPOTHESIS
HO3: There is no significant relationship between quality and buying behavior of customer.
HA3: There is significant relationship between quality and buying behavior of customer

1. Factors that influence the customer to purchase lakme products.
2. Lakme provide quality product.
3. Lakme brand provide you an option of healthy and long lasting harmless products.
50
Value of Chi Square
Factors that influence the customer to 124.8 9.488 Accepted

purchase lakme products
Lakme provide quality product 118.1925 9.488 Accepted
Lakme provide you an aption of 252.48 7.815 Accepted

healthy and long lasting harmless
products
Since The above Results shows that Null hypothesis is rejected and hence Alternative Hypothesis
will automatically accepted i.e. There is significant relationship between quality and buying
behavior of customer.
FOURTH HYPOTHESIS
HO4: There is no significant impact of social groups and customer buying decision
HA4: There is significant impact of social groups and customer buying decision

1. Customer are brand loyal to lakme.
PARAMETER Chi Square Value Tabular Value of Chi Square Result
Customer are brand loyal to 56.25 3.841 Accepted

lakme
Hypothesis will automatically accepted i.e. There is significant relationship between social
groups and customer buying behavior.
51
FIFTH HYPOTHESIS
HO5: There is no significant impact of fashion and customer buying behavior
HA5: There is significant impact of fashion and customer

1. Reason which motivates customer to use the products of a lakme brand.
2. For what purpose customer use lakme.

Value of Chi Square
Reason which motivates customer to use 15.68 7.815 Accepted

the products of a lakme brand.
For what purpose customer use lakme 44.25 7.815 Accepted
Since The above Results shows that Null hypothesis is rejected and hence Alternative Hypothesis
will automatically accepted i.e. There is significant relationship between fashion and customer
buying behavior.
52
FINDINGS
 42 respondents are Strongly Agree occupy 10.5%. 156 Respondents are just Agree
with the statement hence occupy 39% of whole. 8.25% are Strongly Disagree with 33
respondents. 85 Respondents are just Disagree with the statement and hence occupy
21.25%. Finally 84 respondents are Neither Agree nor Disagree with the statement
and hence occupy least value i.e. 0.0125%. In above chi square testing table, degree
of freedom is 4 and the tabular value of chi square is 9.488. The calculated value of
chi square is 118.1925. Since the tabular value is less than the calculated value of chi
square so that null hypothesis will be rejected.
 There are 275 respondents positive with statement and occupy 68.75%. 125
Respondents are negative with statement and occupy 31.25% of whole. In above chi
square testing table, degree of freedom is 1 and the tabular value of chi square is
3.841. The calculated value of chi square is 56.125. Since the tabular value is less
than the calculated value of chi square so that null hypothesis will be rejected.
 120 respondents are influenced by color/shades occupy 30%.Quality of product

influences 144 Respondents and occupy 36% of whole. 14% are influenced by
Packaging with 33 respondents. 56 Respondents influenced by Versatility and hence
occupy 14%. Finally 24 respondents are influenced by the other factors of the lakme
Products which occupy 6% of whole. In above chi square testing table, degree of
freedom is 4 and the tabular value of chi square is 9.488. The calculated value of chi
square is 124.8. Since the tabular value is less than the calculated value of chi square
so that null hypothesis will be rejected.
 There are 238 respondents positive with statement and occupy 59.5%. 162
Respondents are negative with statement and occupy 40.5% of whole. In above chi
square testing table, degree of freedom is 1 and the tabular value of chi square is
3.841. The calculated value of chi square is 14.44. Since the tabular value is less than
the calculated value of chi square so that null hypothesis will be rejected.
 120 respondents say that the price level is High and hence occupation is 30% in pie
chart. 20 respondents say that the price level is Low and hence occupation is 30% in
pie chart. Finally highest occupation with 65% in pie chart, there are 260 respondents
53
says that price level is optimum. In above chi square testing table, degree of freedom
is 2 and the tabular value of chi square is 5.991. The calculated value of chi square is
215.74. Since the tabular value is less than the calculated value of chi square so that
 68 respondents are Strongly Agree occupy 17%. 100 Respondents are just Agree with
the statement hence occupy 25% of whole. 23% are Strongly Disagree with 92
30%. Finally 20 respondents are Neither Agree nor Disagree with the statement and
hence occupy least value i.e. 0.0125%. In above chi square testing table, degree of
freedom is 4 and the tabular value of chi square is 9.488. The calculated value of chi
square is 73.6.. Since the tabular value is less than the calculated value of chi square
so that null hypothesis will be rejected.
 There are 232 respondents positive with statement and occupy 58%. 80 Respondents
are negative with statement and occupy 40.5% of whole. 68 Respondents are with the
option of “May be” and occupy 17% of the pie chart. Finally, 20 Respondents are not
Sure with the statement and has occupation of 5% in pie chart. In above chi square
testing table, degree of freedom is 3 and the tabular value of chi square is 7.815. The
calculated value of chi square is 252.48. Since the tabular value is less than the
 100 respondents are found that product is economical and occupy 25% of pie chart.
68 Respondents says its is easily available and hence occupy 17% of whole. 120
Respondents are motivated by fashion style of product and occupy 30% of the pie
chart. Finally, 20 Respondents are motivated by its measurable result and has
occupation of 28% in pie chart. In above chi square testing table, degree of freedom is
3 and the tabular value of chi square is 7.815. The calculated value of chi square is
15.68. Since the tabular value is less than the calculated value of chi square so that
 80 respondents are found to use the product for Eyes and occupy 20% of pie chart. 40
Respondents use it for Lip Color and hence occupy 10% of whole. 80 Respondents
54
are using its Nail Enamel products and occupy 20% of the pie chart. Finally, 200
Respondents use the Facial products of lakme company and hence occupation of 50%
in pie chart. In above chi square testing table, degree of freedom is 3 and the tabular
value of chi square is 7.815. The calculated value of chi square is 44.25. Since the
tabular value is less than the calculated value of chi square so that null hypothesis will
be rejected.
 20 Respondents are Strongly Agree occupy 5%. 112 Respondents are just Agree with
the statement hence occupy 28% of whole. 9% are Strongly Disagree with 36
35%. Finally 92 respondents are Neither Agree nor Disagree with the statement and
hence occupy 23%. In above chi square testing table, degree of freedom is 4 and the
tabular value of chi square is 9.488. The calculated value of chi square is 128.8. Since
the tabular value is less than the calculated value of chi square so that null hypothesis
will be rejected.
55
CHAPTER 5
CONCLUSION AND RECOMMENDATIONS
RECOMMENDATIONS
 Affordable cosmetic products must be launched, drawing less than 1000 rupees per
month. This will attract mores of young women towards it and will further increase
the market share of the company.
 Lakme should also concentrate on the cosmetic products for the mails. As today even
boys are becoming more concerned of the way they are looking. More and more boys
are turning out to be metro sexual. This category will rise in the future and lakme
must concentrate on catching them so that the company can generate more sales from
them.
 Lakme must not limit itself to serve only the women, as it will be ignoring a large
chunk of looks conscious and metro sexual boys.
 Website Changes:
1. Lakme must advertise more about its website in the mass media so people can
gain firsthand knowledge about its products at their convenience in a more
detailed manner.
2. The website is good but instead of having a glossary as a separate entity, link
words which are difficult to understand for a first timer (even if it is as simple as
‘spf’) must be marked up (underlined) in the text, which upon clicking must open
out to a window giving details
3. .A page must be devoted on why cosmetic products of lakme must be taken plus
real life stories of how people with use of lakme cosmetics improved their looks.
4. Links to other sites extolling the virtues of cosmetics must be given.
56
 A page devoted to Lakme’s beginning as a cosmetic industry must be included in the
website to assure potential customers that this is one company that will stick around
for a long time to come. Exciting contests can be launched for those who visit the
website.
 The brand should not lose its focus away from cosmetics. It can proved to very
detrimental.
 For vast reach unlikely, in the short-term. “Some sort of an alliance or co-branding
with the salons that already exist may, perhaps, have been a better strategy.
 The general perception is that company-owned salons are expensive. Though Lakme
beauty salons are reasonably priced, it has not been communicated well enough.
57
CONCLUSION
The different information or benefits derived from the in-depth study of the above mentioned
information sources are as follows:
 consumer behavior and perception study; it helped to know that what actually is
consumer beahviour and what are the factors that affect the buying behavior of
consumers. It also helped us to know that how can perception have a positive and a
negative impact on the consumer beahviour.
 cosmetic industry in india- this section helped in knowing tat cosmetic is not a new
concept in india. People have been grooming themselves physically. The only
difference is the addition of chemicals and technology to our personal grooming.
 All the marketing information sources has given a significant contribution
to the detailed theoretical perspective for the research i.e. about consumer
behavior an perception.
 World Wide Web also worked as a highly important information source as it provides
updated information for the research relating to various areas.
58
Questionnaire
Q1. Do lakme provide quality products?
 Strongly agree
 Agree
 Strongly Disagree
 Disagree
 Neither Agree nor Disagree
Q2. Are you Brand Loyal to Lakme?
 Yes
 No
Q3. What are the factors that influence you to purchase lakme Products?
 Color/Shade
 Quality
 Packaging
 Versatility
 Other
Q4. Is price of the lakme product is according to the quality of Product?
 Yes
 No
59
Q5. What do you think about Price level of lakme Products?
 High
 Low
 Optimum
Q6. Do Celebrity endorsements in advertisement attracts you towards lakme products?
 Strongly agree
 Agree
 Disagree
Q7. Do You think that lakme products provides you with an option of Healthy and long
lasting harmless?
 Yes
 No
 May be
 Not Sure
Q8. What is the reason that motivates you to use the products of Lakme Company?
 Economical
 Easily Available
 Fashion
 Measurable Result
Q9. For what purpose you use lakme products?
 Eyes
 Lips color
 Nail Enamel
 Face
60
Q10. Does the advertisement of lakme brand influence your shopping needs?
 Strongly agree
 Agree
 Disagree
61

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A

In Partial Fulfillment of the Requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED TO- SUBMITTED BY -

CAREER POINT UNIVERSITY, KOTA (RAJ.)

This is to certify that the Dissertation, entitled “A STUDY OF FACTORS AFFECTING

4 Data Analysis and Interpretation 35

5 Conclusion And Recommendations 56

List of Tables for Questions & Charts

Respondents Age Category outcome. 35

INTRODUCTION TO CONSUMER BEHAVIOR

Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality,

Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family,

Roles and Status :-

A person’s economic situation will affect product choice.

Personality and Self concept :-

Changes in an individuals behaviour arising from experience.

Beliefs and attitudes :-

A strong brand promotional campaign, good distribution network, constant product

Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the

Colgate-Palmolive (India) Limited : It manufactures a range of products marketed under the

INTRODUCTION OF LAKME UNILEVER PRIVATE LTD

 We work to create a better future every day

Purpose & principles

 Always working with integrity

 Setting out our aspirations

 Working with others

 Standard of Conduct We conduct our operations with honesty, integrity and

 Employees Unilever is committed to diversity in a working environment where there

 Shareholders Unilever will conduct its operations in accordance with internationally

 Business Partners Unilever is committed to establishing mutually beneficial relations

 Community Involvement Unilever strives to be a trusted corporate citizen and, as an

 Conflicts of Interests All Unilever employees are expected to avoid personal

 Corporate Governance We have always aspired to high standards of corporate

Our approach to Corporate Governance To succeed, we believe, requires the highest

LAKME’S POSITIONING IN TERMS OF PERSONALITY AND SELF CONCEPT:

1. On top of the world!

tries to position itself:

1. Lakme Hair Color: magic of colors (collage).

 Someone who takes care of your beauty needs.

It covers all facets of beauty care.

THE CONCEPT OF EGO: · According to Freudian Psychoanalytic theory Lakme tries to

THE CONCEPT OF PERSONALITY GROUPS: ·Lakme tries to woo the compliant

CONCEPT OF PERCEPTUAL SELECTION: On the basis of perceptual selection Lakme

Name of the company : LAKME UNILEVER PRIVTAE LTD

State : HIMACHAL PRADESH

Telephone number : -+91 2222870622

Chief executive officer : Mr.Anil chopra

Contact person : Richa puranesh- marketing manager

Lakme strawberry facewash

Lakme radiant rose powder

Lakme Radient Rose Powder.

Lakme Nail Enamel Remover.

Lakme Strawberry Silk Cream

Lakme deep pore cleansing milk

A. Sengupta and Noopur Agrawal

Primary data: structured questionnaire

Secondary data: Company website

Text books and journals

 To know about customer preference towards lakme brand.

 To study the impact of advertising on buying behavior of customer

Ho1: There is no significant relationship between advertising and buying behavior of

HO2: There is no significant impact of change in price on customer buying behavior.

HA2: There is significant impact of change in price on customer buying behavior.