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MEASUREMENT OF BRAND AWARENESS AND BRAND PERCEPTION OF

LÓREAL PARIS

PROJECT REPORT

SUBMITTED IN PARTIAL FULLFILMENT OF THE REQUIREMENT FOR THE


AWARD OF THE DEGREE OF

POST GRADUATE DIPLOMA IN MARKETING MANAGEMENT

BY

ANUSHI SINGLA

GOSWAMI GANESH DUTTA SANATAN DHARMA COLLEGE

CHANDIGARH-160031

UNDER THE GUIDANCE OF MRS. MILLI ARORA

CENTRE FOR PARTICIPATORY

PANJAB UNIVERSITY

MARCH-2017

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ACKNOWLEDGEMENT

I pay my profound gratitude to almighty with whose grace I have been able to add a new
dimension to my life by achieving my chosen ambition.

The author takes great pleasure to place on record his deep sense of gratitude to Mrs.
Milli Arora for her keen interest, able guidance and constant encouragement throughout the
execution of the project and preparation of his report.

Thanks are due to my all friends and classmates who were big source of help and
inspiration during the project study.

ANUSHI SINGLA

PGDMM(2016-2017)

1617047

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DECLARATION

I hereby declare that this project work titled “MEASUREMENT OF BRAND AWARENESS
AND BRAND PERCEPTION OF LÓREAL PARIS” is a record of original work done by me
under the guidance of Mrs. Milli Arora and that this project work has not formed the basis for
the award of any Degree/Diploma/Associate ship/ Fellowship or similar title to any candidate of
any university.

Signature of the candidate

ANUSHI SINGLA

Place:

Date: Signature of the guide

Mrs. Milli Arora

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TABLE OF CONTENTS

S.NO TITLE PAGE NO

Certificate

Acknowledgement

Declaration

Executive Summary

List of tables

List of charts

CHAPTER-1

Introduction

Overview of the study

Profile of the Organization

Problems of the Organization

Competitor’s Information

S.W.O.T. Analysis

Vision and Mission of the Organization

CHAPTER-2

2.1 Review of literature

CHAPTER-3

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3.1 Objective of the Study

3.2 Scope of the Study

3.3 Methodology

CHAPTER-4

4.1 Data Analysis and Interpretation

CHAPTER-5

5.1 Findings

CHAPTER-6

6.1 Recommendations

CHAPTER-7

7.1 Conclusion

CHAPTER-8

8.1 Bibliography

ANNEXURE

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LIST OF TABLES

S.NO PARTICULARS PAGE.NO

4.1 TABLE SHOWING THE OCCUPATION PROPORTION OF THE RESPONDENTS.

4.2 TABLE SHOWING THE GENDER PROPORTION OF THE RESPONDENTS.

4.3 TABLE SHOWING THE INCOME LEVEL OF THE RESPONDENTS.

TABLE SHOWING RESPONDENTS WHO ARE AWARE OF L’OREAL PARIS


4.4

4.5 TABLE SHOWING THE AWARENESS OF L’OREAL PARIS’S PRODUCTS

4.6 TABLE SHOWING CONSUMER’S BUYING ASPECT OF L’OREAL PARIS’S


PRODUCTS

4.7 TABLE SHOWING CUSTOMER’S 1st PREFERENCE TOWARDS L’OREAL PARIS’S

4.8 TABLE SHOW’S HOW RESPONDENTS CAME TO KNOW ABOUT L’OREAL PARIS’S

4.9 TABLE SHOWING WHETHER L’OREAL PARIS IS COSTLY?

4.10 TABLE SHOWING CUSTOMER’S OPION TOWARDS L’OREAL PARIS’S


ADVERTISEMENT

4.11 TABLE SHOWING THE CUSTOMERS PURCHASING PATTERN OF L’OREAL PARIS

4.12 TABLE SHOWING THE AVAILIBILITY OF L’OREAL PARIS IN ALL OUTLETS

4.13 TABLE SHOWING PROPOTIONATE OF RESONDENTS AWARE OF L’OREAL PARIS


AMBASSADOR

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4.14 TABLE SHOWING PROPOTIONATE RESPONDENTS AWARE OF MEN’S PRODUCT

4.15 TABLE SHOWING THE SATISFACTORY LEVEL OF RESPONDENTS

4.16 TABLE SHOWING THE PRCE COMPARISON OF L’OREAL PARIS WITH OTHER
PRODUCTS

4.17 TABLE SHOWING BUDGET FOR COSMETIC OF RESPONDENTS PER MONTH

LIST OF CHART

S.NO PARTICULARS PAGE.NO

4.1 CHART SHOWING THE OCCUPATION PROPORTION OF THE RESPONDENTS.

4.2 CHART SHOWING THE GENDER PROPORTION OF THE RESPONDENTS.

4.3 CHART SHOWING THE INCOME LEVEL OF THE RESPONDENTS.

CHART SHOWING RESPONDENTS WHO ARE AWARE OF L’OREAL PARIS


4.4

4.5 CHART SHOWING THE AWARENESS OF L’OREAL PARIS’S PRODUCTS

4.6 CHART SHOWING CONSUMER’S BUYING ASPECT OF L’OREAL PARIS’S


PRODUCTS

4.7 CHART SHOWING CUSTOMER’S 1st PREFERENCE TOWARDS L’OREAL PARIS’S

4.8 CHART SHOW’S HOW RESPONDENTS CAME TO KNOW ABOUT L’OREAL PARIS’S

4.9 CHART SHOWING WHETHER L’OREAL PARIS IS COSTLY?

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4.10 CHART SHOWING CUSTOMER’S OPION TOWARDS L’OREAL PARIS’S
ADVERTISEMENT

4.11 CHART SHOWING THE CUSTOMERS PURCHASING PATTERN OF L’OREAL PARIS

4.12 CHART SHOWING THE AVAILIBILITY OF L’OREAL PARIS IN ALL OUTLETS

4.13 CHART SHOWING PROPOTIONATE OF RESONDENTS AWARE OF L’OREAL PARIS


AMBASSADOR

4.14 CHART SHOWING PROPOTIONATE RESPONDENTS AWARE OF MEN’S PRODUCT

4.15 CHART SHOWING THE SATISFACTORY LEVEL OF RESPONDENTS

4.16 CHART SHOWING THE PRCE COMPARISON OF L’OREAL PARIS WITH OTHER
PRODUCTS

4.17 CHART SHOWING BUDGET FOR COSMETIC OF RESPONDENTS PER MONTH

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EXECUTIVE SUMMARY

The project highlights on the topic of “The measurement of brand awareness and brand
perception on Lóreal Paris.”

The main purpose of the study is to determine the brand image, perception, attitudes and
behavior of the target audience with regard to the corporate L’Oreal Paris brand as well as the
products and personality of the L’Oreal Paris. This also denotes the purchasing pattern of
customers towards the brand.

The research methodology adopted for this study is descriptive. A descriptive study is
undertaken in order to ascertain and be able to describe the characteristics of the variable of
interest in a situation. As far as data is concerned structured undisguised questionnaire was used
to collect the primary data. The sampling technique involved in this research is Random sample,
and the questionnaires are distributed to a sample size of 70

Analysis techniques are used to obtain finding and arrange information in a logical sequence
from the raw data collected. The tools that are used for analysis are Charts, Percentage and
Analysis.

From this study we can come to conclusion that high level of brand awareness is an
important driver with regard to influencing purchasing behavior. Majority of the customers
believe that the branded products will have a good quality, the opinion about the branded
products will always be positive among the customers. This research clearly reveals that branded
products are always status related and enhances the sales of the products. L’Oréal has to develop
actions to enhance the brand imagery that this group associates with the L’Oréal brand
positively. These actions should lead to long-term strategic and market-related benefits (e.g.
market share) for L’Oréal within the target audience of this study.

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CHAPTER 1

INTRODUCTION

The average person is exposed to 2500 advertising messages per day through various media
channels such as billboards, magazines and newspapers, television, radio, online etc. As human
beings, we have a limited amount of ‘storage space’ in which we retain these brands and it is
therefore very important for the future success of brands that the people in charge of managing
them are aware of who the target audience is, what it is in their lives that they want brands to
fulfil, and how the current image, perception or attitude of YOUR brand compares to that of your
competitors’ brands.

Nowadays, a successful brand can be a determining factor in whether or not a business is


successful (Haig, 2004). The process of branding involves creating and managing an identity for
your brand through which a clear message is expressed. It is important that the values and
images associated with the brand are clearly identified by the organization, regularly ‘checked’
to determine whether they are (still) relevant and consistently portrayed at every touch point with
the consumer. It is vital that the manufacturers / marketers of the brand understand what the
consumers’ wants and needs are and that they are able to anticipate what they will be in the
future. ‘Smart’ organizations understand how important it is to create an emotional link between
brands and consumers, and even form relationships with them, in order to create a situation of
loyal consumers rather than just satisfied consumers. The purpose of this research report is to
perform a brand audit in order to measure the brand image of the corporate L’Oréal brand.

This will / should prove to be valuable information for L’Oréal as it will inform them as to
whether or not their current brand positioning is aligned with what the consumer desires, and
through uncovering the current brand image profile, L’Oréal will be aware of whether or not
action is needed in order to improve the image.

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1.1 OVERVIEW OF THE INDUSTRY AS A WHOLE

Cosmetics have been in shape for many years, the earliest documented use of cosmetics is
around 4000BC way back in ancient Egypt days where eye decoration and scents became
common place. From then to now, very little have changed in the use of cosmetics, they are still
used to contour and highlight the skin and features.
The word "Cosmetics" is a rather broad term targeted towards many market sectors, its
dictionary definition is; “A powder, lotion, lipstick, rouge, or other preparation for beautifying
the face, skin, hair, nails, etc.” Cosmetics, superficial measures to make something appear better,
more attractive, or more impressive: A sub category of "Cosmetics" is "Makeup" this
encompasses most modern day beauty products and is targeted to Facial cosmetics such as Eye
Shadow, Lipstick, and Mascara etc.

Today's Cosmetic market place is a huge global economy worth approximately $40 billion,
mostly generated in the western countries but it is ever expanding into other global markets and
these expand. One of the best known and oldest cosmetic providers is L'Oreal. L'Oreal first
started in 1909 specializing in hair coloring products in France, this grew rather rapidly and
eventually caught the eye of some now established cosmetics companies in the USA. The year
1910 was when the likes of Max Factor, Elizabeth Arden and Helena Rubinstein began their
global domination of this now lucrative market. These companies were not joined by any others
till Revlon joined in shortly before WWII and Estee Lauder just after WWII.

Moreover, Global cosmetics market is expected to garner $429.8 billion by 2022, registering a
CAGR of 4.3% during the forecast period 2016-2022. Cosmetics Market (makeup or beauty
products) are mixture of chemical generally used to enhance the appearance or odor of the
human body. Sun care, skin care, hair care, deodorants, makeup and color cosmetics, and
fragrances are some of the cosmetics products that are predominantly available and used by
individuals. Retail stores including supermarkets, exclusive brand outlets, and specialty stores
amongst others are the major distribution channels, with online channels gaining popularity
among consumers.

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There is a considerable rise in disposable incomes over the past decade. The growth in global
economies, changing lifestyles, rising demands of skin and sun care products due to varying
climatic conditions encourages the growth of the market for cosmetics. A shift of preference
towards natural and organic beauty products, particularly in U.S. and European countries, fosters
the growth of the cosmetics market. Rising demand for natural, herbal and organic beauty
products creates potential opportunities for manufacturers to innovate and develop new products
in accordance to consumer preferences.

Top factors impacting Global cosmetics market

Source: Secondary research and AMR analysis

Changing lifestyles

Improvement in the current lifestyles of the individuals is majorly affecting the cosmetics
market. Consumers have now become more conscious regarding the usage of cosmetics in their
daily life in an effort to step up their style quotient and overall personality. Cosmetics play an
important role in enhancing one’s inherent beauty and physical features. Men are also
increasingly using cosmetics in their daily routine including various types of fragrances and

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deodorants. This growing demand of cosmetic products has in turn led to the growth of
cosmetics market across the world.

Rising GDPs of all the regions

During recession 2007-2009, there was an overall global rise in GDP and economies across
various regions. Presently, increasing GDPs of various countries is positively affecting the global
cosmetics market. Continuous rise in GDP has improved the economies of various countries and
has raised the spending capabilities of individuals. Rising disposable income levels of the
individuals across various regions is driving them to buy personal luxury goods, which, in turn,
is positively influencing the global market growth.

Use of natural ingredients

Rising trend of the use of natural ingredients in cosmetic products is observed among various
manufacturers. This trend caters to the ever increasing demand for natural or organic cosmetic
products among customers. Use of herbal cosmetic products minimizes the chances of any
possible side effects of the product. This ultimately increases the usage of cosmetics among
individuals.

Top winning strategies

Presently, manufacturers are focusing on developing new products and innovating on the use of
different ingredients in cosmetic products. In order to sustain and maintain their market position,
manufacturers are adopting various strategies. Different strategies adopted by leading companies
operating in the cosmetics industry are tracked from recent developments of the past two-three
years. Product launch, acquisition, expansion and agreement are the prominent strategies adopted
by the market players.

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Top winning strategies in world cosmetics market

Source: Secondary research and AMR analysis

The cosmetics industry has developed rather rapidly since these early days of limited
products as the quest for beauty has become ever more important. Brands are now represented by
key celebrities around the world in a bid to increase the market share of this $40 billion industry.
The modern Cosmetics range includes: Skincare, Lotions, Powders, Perfumes, Lip Colour, Nail
polishes, Eye Makeup, Face Makeup, Hair Colour, Hair Care, Baby products, Bath Products,
Party Makeup, Special FX makeup. As with any growing industry using chemicals, the
Cosmetics industry has been in resistance with Governing bodies from the word go as it brought
into question the chemicals in use with these products. Most countries now have a governing
body controlling the quality of allowable ingredients used within cosmetic products; the USA
has the FDA (Food & Drug Administration). The FDA is a government Department of Health
and Human Services and is responsible for the safety regulation of many things including
Cosmetics. Because of the involvement of this regulation it has forced many companies to look
at the ingredients used and eliminate some of the synthetic ingredients, thus the trend of the new
"Good for you" makeup.

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Many products now available boast not only a visible benefit to the skin but a nutritional one
also. In terms of development cosmetics could be viewed as take a step back in the history
timeline to ancient Egypt times. For years synthetic ingredients have replaced natural ones due to
their ease to work with and the visible results. With that in mind these governing organizations
have benefited the consumer, giving them better products using Natural or Organic materials.
Natural products contain mineral and plant ingredients and organic products are made with
organic agricultural products. So when on the next makeup shopping spree bear a thought for
what is on sale and weight up the price verses the benefits, as Natural Mineral makeup may have
more of an impact on the wallet, but will come with the added benefit in protecting and
nourishing the skin.

1.2 PROFILE OF THE ORGANIZATION

Founded in 1907,by Eugene Schuller in Paris, the world famous and technologically advanced
company L'Oreal has gained reputation for luxury and quality products. "Technology should be
used where it adds value to the reputation" with this vision The L'Oreal Group has become the
most famous cosmetics and make-up product manufacturer in the world. This company is the
manufacturer and distributer of different products related to hair solution, skin care, sun
protection, make-up, perfumes etc. The main office of this company is in Paris at the suburbs of
Clichy, Hauts-de-Seine, France which was registered in July, 1909. At mid 1920, L'Oréal had
employed only 3 chemists. By 1984 the number of employee was 1000 and today it employs a
little over 2000 chemists as employees. At first, the company started hair-color business, but
after almost a decade, it expanded its share in the beauty and cosmetic products industry.
Currently L'Oréal markets almost 500 brands and has more than thousands of products in beauty
business mainly focusing on hair color, permanents, hair styling, body and skin care, cleansers,
makeup and fragrances industry. Currently L'Oréal has established five international quality
research and development centers. Of them two are in France, one in USA, one in Japan and the
other is in China. And also plans to set another research and development facility in New Jersey,
USA.

Today L'Oréal has been performing business in over 130 countries employing almost over 50000
employees. This company runs 42 manufacturing plants around the world which ensure
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employment opportunity of nearly 14000 people all over the world. In 2003, the company
announced its 19th consecutive double-digit growth. In 2007, the company was ranked as 3rd
organization in Fortune Global 500(Fortune Global Magazine).

Except doing business, L'Oréal has also contributed to creating corporate social responsibility. In
2008, L'Oréal was acclaimed as the "Top employer of Europe" by the European Student
Barometer. The L'Oréal - UNESCO award was established for improvement of women in society
and increase their contributions in different scientific sectors. The award established by French
cosmetics giant L'Oréal and the United Nations Educational, Scientific and Cultural
Organization (UNESCO) presents each outstanding laureate an amount of $100,000. It also
established a competition named L'Oréal Brand storm which is organized every year in 43
different countries. The competition presents the top three teams of the completion with the
amounts of $10,000, $5,000 and $2500 respectively. The L'Oréal group has committed to reduce
pollution, waste management and recycling practices. All the products are allergy free and
certified that they are not used on any animals as trials.

Brands of L'Oréal:
The brands of L'Oréal are differentiated due to the different requirements of their customers
which are related to different distribution channels. They can be grouped as:

Consumer Products:
These are High-technology products at competitive prices. Generally these products are used and
sold in hair salons. Usually end users or consumers are focused and thus marketed through
retailing channel.

 L'Oréal Paris

 Maybelline

 Garnier

 Softsheen.carson

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 Essie

Professional Products:
These include the users at hair salons which provide their customers with a wide range of
products to use for business purposes. Usually these products are sold in mass-market retail
channel.

 L'Oréal Professional

 Kerastase

 Matrix

 Redken

 Pureology

 Shu Uemura Art of Hair

 Mizani

 Carita

 Decleor

 Essie Professional

Luxury Products:
These include luxury items which are offered to the customers at selective retail outlets, i.e.
departmental stores, perfumeries, luxury stores, the Group's own boutiques and travelling
destinations.

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 Lancome

 Ralph Lauren

 Urban Decay

 Maison Martin Margeila

 Viktor and Rolf

 Kiehl’s

 Giorgio Armani

 Yves Saint Laurent

 Diesel

 Clarisonic

 Cacharel

Active cosmetics:
Cosmetics supported by dermatologists and pharmacists may be defined as active products. The
consumers who seek for skin treatment usually are the main focus of this product range.
Generally these skincare products are available in pharmacies and special sections of drugstore.

 Vichy

 La Roche Posay

 Skin Ceuticals

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 DermaBlend

1.3 PROBLEMS OF THE ORGANIZATION

L'Oréal's biggest challenge is getting consumers to come on board with sustainability, according
to the cosmetics and beauty company's director of corporate social responsibility and
sustainability Alexandra Palt.

Talking to delegates at the Smarter Sustainability Reporting conference in London, Palt said like
most companies, L'Oréal has make progress to make in sustainable consumption.

Palt asked: "This is still our biggest challenge - how are we going to market products that have
less impact on the environment but that are still bought by consumers?

"It is about making it desirable to consumers and getting them all involved.

"Today, consumers say that they are very interested in sustainability, and that they will buy a
product with a higher price if it is responsible, but when they do go to buy [a product] they don't
do it."

Palt suggested this was a big problem for companies because if CEOs were aware of the
consumers' likelihood to agree in principle but not to act on it, sustainable consumption surveys
would hold little sway with the finance side of the company.

"I can honestly tell you that our challenge is to make sustainability desirable."

"If it's about making sustainability desirable, reporting will be very useful - it is absolutely
necessary," she said.

The company, which has more than 70,000 staff in 130 countries, recorded a €20.3bn (£17.6bn)
turnover in 201. Palt pointed out that L'Oréal's ambition to attract one billion new consumers
worldwide was a considerable challenge to the company in terms of sustainability.

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One way of assessing progress and setting targets was the company's initiative of visiting
different countries and hosting 30 to 40 NGO representatives simultaneously.

Palt explained how her team would present them with the challenges they faced and would in
turn receive questioning from big NGOs as well as grass roots organisations.

She reassured delegates at the conference organised by Sustainable Business magazine and edie,
that L'Oréal was committed and well on way to meeting its targets of reducing CO2 emissions by
50% by 2018 and achieving zero net deforestation by 2020.

1.4 COMPETITOR’S INFORMATION

Competition (main)

1. Revlon
2.
3. Lakme
4. Yardley
Competitors 5. Garnier

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1.5 S.W.O.T. ANALYSIS

L'Oréal Paris

Parent Company L'Oréal

Category Personal Care brands- Cosmetics

Sector FMCG

Tagline/ Slogan Because you’re worth it

L'Oréal best caters to the beauty demands of women of different


USP cultures through constant research and innovation

LOreal STP

Segment Women of upper middle class

The affluent women 27+, the aging and also the masses of the
Target Group developed countries

Positioning L'Oréal offers high end brand in beauty & cosmetic products

LOreal SWOT Analysis

1. Continuing research and innovation in the interest of beauty which assures


that the L’Oreal Cosmetics offers the best to their consumers.
2. L'Oréal is a leader in the growing cosmetics industry despite the
competition in the market.
3. High-end advertising which adapts to the culture of target audience
4. L'Oréal has over 60,000 employees globally
5. Apart from hair colour, skin care, sun protection, make-up, perfumes and
hair care, the company is active in the dermatological and pharmaceutical
fields and is the top nanotechnology patent-holder in the United States
6. L’Oréal has operations in over 130 countries and over 4o manufacturing
Strengths plants

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1. Decentralized organizational structure. Due to the many subdivisions of
the Company, there is also the difficulty in the control of L’Oreal
Weaknesses 2. Stiff competition from other leading cosmetic established brands

1. L'Oréal can tap the growing market that ranges from the affluent, the
aging and also the masses of the developed countries
2. Greater market share because of the numerous patents registered by the
Opportunities Company.

1. Growing competition within the field of cosmetic brands


2. Economic downturn that is quite evident in other countries
3. L’Oreal Group may be producing the best of its line, people may find that
their products are not of their basic needs and would skip buying L’Oreal
Threats products.

1.6 VISION AND MISSION OF THE ORGANIZATION

Vision Statement of L'Oréal :

"Because I'm worth it"


The vision statement of L'Oréal represents the motto as "Because I'm worth it". Keeping the
motto in mind, the company is advancing to attain predetermined objectives and goals. Basing on
this vision statement L'Oréal sets its marketing and target policy to ensure better performance
and to capture more market share. Through its vision statement it creates the value of its products
to its customer. The vision statement gives an indication that L'Oréal sells its products to those
who really deserve the products through their beauty and acts. Sometimes this vision statement
may cause racism because of highly arrogance .Although it targets only the posh consumers and
shows negligence to the other market segments, the visions of L'Oreal group are quite
straightforward.

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Mission Statement of L'Oréal :
"At L'Oréal we believe that everyone aspire beauty. Our mission is to help men and women
realize their aspiration, and express their individual personalities to the full. This is what gives
meaning and value to our business, and to the working lives of our employee."

The mission statement of L'Oréal clearly provides its aims and objectives how they accomplish
their goals. They believe in the beauty and try to help the consumers believe in their natural
beauty which enable them to express their personalities and to gain self-confidence. Through the
realization of the organizational mission; L'Oréal creates its importance and value to their
customers and employees, provides best cosmetics in terms of quality, efficacy and safety. One
more point should be appreciated in the mission statement of L'Oréal is that it does not only adds
value to its business but also it improves the lives of its employees of the organization.
Diversifying the teams and products, L'Oréal has made the universalization of beauty for all.

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CHAPTER 2
2.1 REVIEW OF LITERATURE
 The two important measure of brand awareness is brand recognition and recall.
(Hoyer and Brown, in 1990,)Kapferer, in 1988 says “top of mind awareness is
critical as it captures the ‘consideration set’ in a given purchase situation.
 (Laurent, Kapferer and Roussel, 1995) Study on recall of pictorial
advertisements as compared to non-pictorial advertisements indicate how much
more effective they are rural consumers as compared to urban consumers.
(Velayudhan, 2002) In some studies, brand preference has been equated with
brand loyalty (e.g., Rundle-Thiele and Mackay 2001).
 In other studies, it has been evaluated as a precursor to brand loyalty (e.g., Odin
et al. 2001). Ben-Akiva et al. (1999) define preferences as “comparative
judgments between entities.” Additional reasons (other than promotions) why
consumers may purchase other brands despite a stated brand preference include a
desire to try and learn more about different brands in the category; changing
needs or situations; variety seeking; and changes in the available alternatives due
to new products or improvements to existing products (Coulter et al. 2003).
 Alba and Hutchison (1987) propose that experts are more likely to search for
new information because (a) expertise increases awareness of the existence of
potentially acquirable information and (b) familiarity reduces the cost of
information acquisition.
 Schmidt and Spreng (1996) further postulate that knowledge increases the
perceived ability to search and therefore should decrease the perceived costs of
search. Greater knowledge has been shown to be positively related to increased
involvement with a category (e.g., Raju et al. 1995).
 Dunn et al. (1978) viewed advertising from its functional perspectives; Morden
(1991) is of the opinion that advertising is used to establish a basic awareness of
the product. Those views of Etzel et al. (1997) coincide with the simple but

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allembracing definitions of Davies (1998) and Arens (1996). Aaker (2000)
regarded brand awareness as a remarkably durable and sustainable asset.
 Yee and Young (2001), aimed to create awareness of high fat content of pies,
studied consumer and producer awareness about nutrition labeling on packaging.
 Chen (2001) expressed a different thought on brand awareness that it was a
necessary asset but not sufficient for building strong brand equity.
 Beverland (2001) analyzed the level of brand awareness within the New Zealand
market for zespri kiwi fruit.

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CHAPTER 3

OBJECTIVE AND METHODOLOGY


3.1 OBJECTIVE OF THE STUDY

PRIMARY OBJECTIVE

 To audit the measurement of brand awareness and brand perception.

SECONDARY OBJECTIVE

The following are considered to be the secondary objectives of this research study:
 To measure / determine the brand image, perceptions, attitudes and behavior of the
target audience with regard to the corporate L’Oréal brand as well as the products and
personality of the L’Oréal brand.
 To measure / determine the value drivers for the target audience when purchasing
cosmetic, hair and body products.
 To interpret the results of the measurements based on statistical analysis.

3.2 SCOPE OF THE STUDY

 This study helps to find the impact of the brand names among customers with reference
to
 To find how far people are aware and attracted towards the brand name of particular
product.
 The satisfaction level of the customers in different ways towards the branded products,
can be studied through this project.
 To find the relationship between the quality of the product and its brand name

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3.3 METHODOLOGY’

INTRODUCTION
Research refers to search of knowledge. The pattern in which a research is carried out to
arrive at a conclusion or to final new relationship within a particular framework is called
research methodology. Research methodology also refers to the various sequences, steps to be
adopted by a researcher to study a problem with certain objectives in view.

RESEARCH DESIGN

Research design is the framework or plan for a study that guides the collection and analysis
of the data. It is a map or blue print according to which research is to be conducted. The research
design is given below,

A) NATURE OF RESEARCH:
The research design followed for this study is descriptive research for analyzing the collected
data, an in-depth research analysis was framed and various statistical tools and techniques were
also used for the purpose.

B) DESCRIPTIVE RESEARCH :

Descriptive research includes surveys and fact-findings enquiries of different kinds. The Major
purpose of descriptive research is description of the state of affairs as it exists at present. The
methods of research utilized in descriptive research are survey methods of all kinds, including
comparative and correlation methods.

3.3.1 DATA SOURCES

The two main types of data sources for present study have been primary data and secondary data.

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3.3.1.1 PRIMARY SOURCES

Primary data is collected in the form of questionnaire. Through the questionnaire which consists
of a number of questions printed in a definite order on a set of forms, the respondents were
expected to read and understand the questions itself. The respondents need to answer the
questions on their own and according to their perception.

3.3.1.2 SECONDARY SOURCES

Secondary data consists of information that already exists. Somewhere, having been collected for
specific purpose in the study. The secondary data for this study was collected from various
books, internet etc.

3.3.2 METHODS OF DATA COLLECTION

Among the various Data collection methods like Interviews, Questionnaire and Surveys,
Observations, Focus groups, Documents and Records, Case Studies, etc. I opted for
Questionnaire data collection method. In this project I conducted Online Questionnaire survey,
under the sample size of 70 using the Google Forms.

I used Google forms to collect Primary data and Internet for Secondary data.

3.3.3 SAMPLE SIZE AND METHODS OF SAMPLING

SAMPLE SIZE:
Size of the sample means the number of sampling units selected from the population for the
investigation.

Here the sample size is fixed as 70.

28
SAMPLE METHOD:

The methodology adopted to collect the primary data was interview schedule, which includes
a structured questionnaire to be given to the respondents, the respondents would be guided by the
interviewer to fill the questionnaire and direct observation method was also adopted.
QUESTIONNAIRE
The study relies to a great extent on primary data and some extent to secondary data. In order
to gather primary data from the respondents a non-disguised questionnaire was designed,
keeping in view the objectives of the study.

3.3.4 TOOLS AND TECHNIQUES OF ANALYSIS

CHARTS:
Bar chart and pie charts are used to get a clear look of the tabulated values.

PERCENTAGE ANALYSIS:

Percentage analysis refers to a special kind of ratio. Percentages are used in making
comparisons between two or more series of data. Percentage relates the data figure with the base
figure studied.
d
=  100 Where, d = number of respondents
n
n = base or the sample group

29
CHAPTER- 4
DATA INTERPRETATION AND ANALYSIS

TABLE NO 4.1

TABLE SHOWING THE OCCUPATION PROPORTION OF THE


RESPONDENTS

PARTICULARS RESPONDENTS PERCENTAGE

GOVERNMENT 0 0%
EMPLOYEE

PRIVATE EMPLOYEE 5 7%

SELF EMPLOYEE 6 9%

STUDENTS 59 84%

OTHERS 0 0%

TOTAL 70 100

30
CHART NO. 4.1

CHART SHOWING THE OCCUPATION PROPORTION OF THE


RESPONDENTS

Government empoyee
Private Employee
Self-Employee
Student
Other

INFERENCE:

It is inferred that 84% people who responded for the questionnaire are Students.

31
TABLE NO. 4.2

TABLE SHOWING THE GENDER PROPORTION OF THE


RESPONDENTS

PARTICULARS RESPONDENTS PERCENTAGE

MALE 22 31%

FEMALE 48 69%

TOTAL 70 100

32
CHART NO. 4.2

CHART SHOWING THE GENDER PROPORTION OF THE


RESPONDENTS

31%

Male
Female

69%

INFERENCE:

The chart denotes 69% of respondents who answered the questionnaire are
female.

33
TABLE NO. 4.3

TABLE SHOWING THE INCOME LEVEL OF THE RESPONDENTS

PARTICULARS RESPONSES PERCENTAGE

LESS THAN Rs. 10,000 35 64%

Rs. 10,000- Rs. 20,000 5 9%

5 9%
Rs. 20,000- Rs. 30,000

ABOVE Rs. 30,000 10 18%

TOTAL 55 100

34
CHART 4.3

CHART SHOWING THE INCOME LEVEL OF THE RESPONDENTS

40

35

30
No. of Respondents

25

20

15

10

0
LESS THAN RS. 10,000 RS. 10,000- 20,000 RS. 20,000- RS. 30,000 ABOVE RS. 30,000

INFERENCE:

It shows that 64% of respondent’s income level falls between less than Rs.10, 000.

35
TABLE NO. 4.4

TABLE SHOWING THE NO OF RESPONDENTS WHO ARE


AWARE OF L’OREAL PARIS

PARTICULARS RESPONDENTS PERCENTAGE

YES 69 98%

NO 1 2%

TOTAL 70 100

36
CHART NO. 4.4

CHART SHOWING THE RESPONDENTS AWARE OF L’OREAL


PARIS

1%

Yes
No

99%

INFERENCE:

It is shown that 98% of respondents are aware of L’Oreal Paris.

37
TABLE 4.5

TABLE SHOWING THE AWARENESS OF L’OREAL PARIS’S


PRODUCTS

PARTICULARS RESPONDENTS PERCENTAGE

YES 65 93%

NO 5 7%

TOTAL 70 100

38
CHART NO. 4.5

CHART SHOWING THE AWARENESS OF L’OREAL PARIS’S


PRODUCTS

7%

Yes
No

93%

INFERENCE:

It shows that L’Oreal Paris product is aware for 93% of people.

39
TABLE NO. 4.6

TABLE SHOWING CONSUMER’S BUYING ASPECT OF


L’OREAL PARIS’S PRODUCTS

PARTICULARS RESPONDENTS PERCENTAGE

PRICE 0 0%

QUALITY 47 67%

PACKAGING 0 0%

FRAGRANCE 2 3%

BRAND IMAGE 21 30%

TOTAL 70 100

40
CHART NO.4.6

CHART SHOWING CONSUMER’S BUYING ASPECT OF


L’OREAL PARIS’S PRODUCTS

50

45

40

35
No. of respondents

30

25

20

15

10

0
QUALITY PRICE PACKAGING FRAGNANCE BRAND IMAGE

INFERENCE:

It is observed that customers prefer purchasing L’Oreal Paris for its quality.

41
TABLE NO. 4.7

TABLE SHOWING CUSTOMER’S 1st PREFERENCE TOWARDS


L’OREAL PARIS’S

PARTICULARS RESPONDENTS PERCENTAGE

STRONGLY AGREE 5 7%

AGREE 21 30%

NEUTRAL 37 53%

DISAGREE 6 9%

STRONGLY DISSAGREE 1 1%

TOTAL 70 100

42
CHART NO. 4.7

CHART SHOWING CUSTOMER’S 1st PREFERENCE TOWARDS


L’OREAL PARIS’S

53%

30%

7% 9%
1%
STRONGLY AGREE NEUTRAL DISAGREE STRONGLY
AGREE DISAGREE

INFERENCE:

It is inferred that only 7% of respondents strongly agree L’Oreal Paris is their 1st preference.

43
TABLE NO. 4.8

TABLE SHOW’S HOW RESPONDENTS CAME TO KNOW ABOUT


L’OREAL PARIS’S

PARTICULARS RESPONDENTS PERCENTAGE

ADVERTISEMENT 54 77%

FRIENDS 4 6%

INTERNET 2 3%

WORD OF MOUTH 8 11%


INFLUENCE

MAGAZINE 2 3%

TOTAL 70 100

44
CHART NO. 4.8

CHART SHOW’S HOW RESPONDENTS CAME TO KNOW ABOUT


L’OREAL PARIS’S

MAGAZINE

WORD OF MOUTH

INTERNET

FRIENDS

ADVERTISEMENT

0 10 20 30 40 50 60
No. of Respondents

INFERENCE:

It is found that L’Oreal Paris influenced 77% of its customers through


advertisements.

45
TABLE NO.4.9

TABLE SHOWING WHETHER L’OREAL PARIS IS COSTLY?

PARTICULARS RESPONDENTS PERCENTAGE

YES 32 46%

NO 38 54%

TOTAL 70 100

46
CHART NO. 4.9

CHART SHOWING WHETHER L’OREAL PARIS IS COSTLY?

YES NO

46%

54%

INFERENCE:

It denotes that 46% of respondents feel L’Oreal Paris is costly.

47
TABLE NO. 4.10

TABLE SHOWING CUSTOMER’S OPINION TOWARDS L’OREAL PARIS’S


ADVERTISEMENT

PARTICULARS RESPONDENTS PERCENTAGE

EXCELLENT 10 14%

GOOD 48 69%

FAIR 12 17%

BAD 0 0%

WORST 0 0%

TOTAL 70 100

48
CHART NO. 4.10

CHART SHOWING CUSTOMER’S OPION TOWARDS L’OREAL PARIS’S


ADVERTISEMENT

0%
0%
17% 14%

EXECELLENT
GOOD
FAIR
BAD
69% WORST

INFERENCE:

It is inferred that 69% of respondents feel the advertisement is good.

49
TABLE NO. 4.11

TABLE SHOWING THE CUSTOMERS PURCHASING PATTERN OF


L’OREAL PARIS

PARTICULARS RESPONDENTS PERCENTAGE

VERY OFTEN 7 10%

REGULAR 17 24%

SOMETIMES 33 46%

OCCASIONALLY 11 16%

NEVER BUY 3 4%

TOTAL 70 100

50
CHART NO. 4.11

CHART SHOWING THE CUSTOMERS PURCHASING PATTERN OF


L’OREAL PARIS

Consumer Buying Pattern


50

45

40

35

30

25

20

15

10

0
VERY OFTEN REGULAR SOMETIMES OCCASIONALLY NEVER BUY

Consumer Buying Pattern

INFERENCE:

The chart denotes 46% of the respondents purchase L’Oreal Paris only sometimes.

51
TABLE NO. 4.12

TABLE SHOWING THE AVAILIBILITY OF L’OREAL PARIS IN ALL


OUTLETS

PARTICULARS RESPONDENTS PERCENTAGE

YES 63 90%

NO 7 10%

TOTAL 70 100

52
CHART NO. 4.12

CHART SHOWING THE AVAILIBILITY OF L’OREAL PARIS IN ALL


OUTLETS

10%

YES
NO

90%

INFERENCE:

It is inferred that the majority of respondents say L’Oreal Paris is available in all outlets.

53
TABLE NO. 4.13

TABLE SHOWING PROPOTIONATE OF RESONDENTS AWARE OF


L’OREAL PARIS AMBASSADOR

PARTICULARS RESPONDENTS PERCENTAGE

AISHWARIYA RAI 33 47%

SONAM KAPOOR 10 14%

DEEPIKA PADUKONE 3 4%

KATRINA KAIF 11 16%

NOT AWARE 13 19%

TOTAL 70 100

54
CHART NO. 4.13

CHART SHOWING PROPOTIONATE OF RESONDENTS AWARE OF


L’OREAL PARIS AMBASSADOR

Aishwariya Rai

19%
Sonam Kapoor

Deepika Padukone

16%
Katrina Kaif

4% 47% Not Aware

14%

INFERENCE:

It is observed that 81% of respondents are aware of the ambassador and other 19% are not
aware of the ambassador.

55
TABLE NO. 4.14

TABLE SHOWING PROPOTIONATE OF RESPONDENTS AWARE OF


MEN’S PRODUCT

PARTICULARS RESPONDENTS PERCENTAGE

YES 28 40%

NO 42 60%

TOTAL 70 100

56
CHART NO. 4.14

CHART SHOWING PROPOTIONATE OF RESPONDENTS AWARE OF


MEN’S PRODUCT

40%
Yes
No

60%

INFERENCE:

It is inferred that 40% of respondents are aware of men’s product.

57
TABLE NO. 4.15

TABLE SHOWING THE SATISFACTORY LEVEL OF RESPONDENTS

PARTICULARS RESPONDENTS PERCENTAGE

HIGHLY SATISFIED 4 6%

SATISFIED 43 61%

NEUTRAL 20 29%

DISSATISFIED 3 4%

HIGHLY DISSATISFIED 0 0%

TOTAL 70 100

58
CHART NO. 4.15

CHART SHOWING THE SATISFACTORY LEVEL OF RESPONDENTS

Highly Dissatisfied

Dissatisfied

Neutral

Satisfied

Highly Satisfied

0 10 20 30 40 50 60 70
No. of Respondents

INFERENCE:

It is observed that the satisfactory level of 61% majority respondents are Satisfied.

59
TABLE NO. 4.16

TABLE SHOWING THE PRCE COMPARISON OF L’OREAL PARIS WITH


OTHER PRODUCTS

PARTICULARS RESPONDENTS PERCENTAGE

VERY HIGH 5 7%

HIGH 36 52%

SAME 29 41%

LOW 0 0%

VERY LOW 0 0%

TOTAL 70 100

60
CHART NO. 4.16

CHART SHOWING THE PRCE COMPARISON OF L’OREAL PARIS WITH


OTHER PRODUCTS

60%

50%

40%

30%

20%

10%

0%
Very High High Same Low Very Low

INFERENCE:

The chart denotes 52% of the respondents feel the price of L’Oreal Paris in high.

61
TABLE NO. 4.17

TABLE SHOWING BUDGET FOR COSMETIC OF RESPONDENTS PER


MONTH

PARTICULARS RESPONDENTS PERCENTAGE

ABOVE Rs.50 2 3%

Rs.150-Rs.300 8 11%

Rs.300-Rs.500 28 40%

ABOVE Rs.500 32 46%

TOTAL 70 100

62
CHART NO. 4.17

CHART SHOWING BUDGET FOR COSMETIC OF RESPONDENTS PER


MONTH

46%
40%

11%
3%

ABOVE RS. 50 Rs. 150- Rs. 300 Rs. 300 - Rs. 500 Above Rs. 500

INFERENCE:

It is found that 46% of respondent’s budget is above 500.

63
CHAPTER- 5 FINDINGS

 It is inferred that 84% people who responded for the questionnaire are Students.
 The chart denotes 69% of respondents who answered the questionnaire are female.
 It is inferred that 64% of respondent’s income level falls under Less Rs.10,000.
 It shows that 98% of respondents are aware of L’Oreal Paris.
 It is shown that L’Oreal Paris product is aware for 69% of people.
 It is observed that customers prefer purchasing L’Oreal Paris for its quality.
 It is inferred that only 7% of respondents strongly agree L’Oreal Paris is their 1st
preference.
 It is found that L’Oreal Paris influenced 77% of its customers through advertisements.
 It denotes that 46% of respondents feel L’Oreal Paris is costly.
 It is inferred that 69% of respondents feel the advertisement is good.
 The chart denotes 46% of the respondents purchase L’Oreal Paris only sometimes.
 It is observed that 81% of respondents are aware of the ambassador and other 19% are
not aware about the ambassador.
 It is inferred that 40% of respondents are aware of men’s product.
 It is observed that the satisfactory level of 61% majority respondents is Satisfied.
 The chart denotes 52% of the respondents feel the price of L’Oreal Paris in high
 It is found that 46% of respondent’s budget is above 500.

64
CHAPTER – 6 RECOMMENDATIONS

There are some recommendations that I inferred after conducting this project. They are as
following :-

1. L’Oréal Paris should concentrate on marketing and communication efforts and adjust its
advertising accordingly, in order to reflect a more accepted brand imagery for the ethnic
group.
2. L’Oréal Paris can conduct meetings with the ethnic group in order to know about the
desires, social and self-expressive needs of this group more accurately. By identifying
what it is that this segment values the most in personal care products, the brand can adjust
its value proposition accordingly in order to increase its market share.
3. By providing a superior value proposition, and meeting the problems, desires and needs
of the consumer more appropriately, the brand can head towards enhancing and
improving the customer satisfaction and loyalty metrics.
4. The survey gave an indication that the respondents valued functional and emotional
benefits the most when using L’Oréal products, but it is important for the organization to
keep in mind that in this industry, functional benefits are very easily imitated.
5. The organization has a more endurable, and sustainable competitive advantage when they
consider their brand from a product perspective, an organization perspective, a person
perspective, as well as from a symbolic perspective because when the brand only fixates
on the product at hand, they are very susceptible to imitation and only by viewing the
brand from the other three perspectives is the brand able to derive a more durable and
sustainable value proposition.
6. L’Oréal should focus on developing brand strategies concerned with being able
effectively to improve the satisfaction of emotional needs on the part of the population in
question. Solid and enduring brand relationships are important developments in this
regard, and a manner in which this can be achieved is by encouraging loyalty (considered
a brand asset) towards the brand by using tools such as incentive programs for the
consumer.

65
CHAPTER- 7 CONCLUSION

Through this project I could identify that a high level of brand awareness is an important
driver with regard to influencing purchasing behavior. A few analyses with regards to the
desirability for the brand indicated that there was a difference in the levels of desire according to
ethnicity. It was shown that the ethnic group which had the most desire for the brand also
displayed the most positive behavior with regard to purchases (behavior). Further tests were
performed which gave a clear indication that it is possible to see the effect that a favorable
perception / attitude of the corporate / product L’Oreal brand has on influencing behavioral
intention and ultimately the end behavior (purchases). In terms of identifying whether or not the
current value proposition of L’Oreal is suited to the target audience, the overall impression of the
author is that it would be a strategically important move if L’Oreal were to try to develop a
stronger emotional bond with their target audience, as well as to find ways in which to ‘sell’ to
the consumer unique self-expressive benefits which can be gained when using L’Oreal branded
products. The survey also revealed the weaker presence of L’Oreal amongst the black ethnic
group.I believe that this weakly tapped market could be a valuable additional income stream for
L’Oreal if they were to develop actions to enhance the brand imagery that this group associates
with the L’Oreal brand positively. These actions should lead to long-term strategic and market-
related benefits (e.g. market share) for L’Oreal within the target audience of this study.

66
CHAPTER – 8 BIBLIOGRAPHY

BOOKS:

 Aaker, D. A., 1991. Managing Brand Equity: Capitalizing on the Value of a Brand Name.
 Philip Kotlar., Marketing Management.
 Research Methodology – C.R. Kothari

WEBSITES:

 http://www.forbes.com/technology/enterprisetech/2004/09/20/cx_ld_0920itloyalty.html
 .http://www.studymode.com/essays/Factors-Affecting-The-Location-Of-Retail-
578148.html
 http://en.wikipedia.org/wiki/L'Or%C3%A9al
 https://www.alliedmarketresearch.com/cosmetics-market
 http://www.mbaskool.com/brandguide/fmcg/1122-loreal-paris.html
 http://www.slideshare.net/hemanthcrpatna/a-study-of-brand-awareness-and-brand-choice
 Hoyer, W.D. & Brown, S. P. (2004)
 Keller, K. L., Heckler, S. E. Heckler & Houston, M.J. (1998)
 Laurent, G., Kapferer, J. N. & Roussel, F. (1987) Philip kotler , Koshy , Jha Marketing
management.
 Michael J. Zenor :The profit benefits (1994)

67
QUESTIONNAIRE

L’OREAL PARIS

I am ANUSHI SINGLA pursuing PGDMM in G.G.D.S.D. College. I’m


here to undergo a project on “MEASUREMENT OF BRAND AWARENESS
AND BRAND PERCEPTION” in Chandigarh. I request you to kindly help
me by filling this questionnaire.

1. Name:
2. Age:
3. Gender:
Male Female

4. Occupation:
Government Private Self Student Others
employee employee employee

5. Income level:
Rs.10000-20000 Rs.21000-30000 Rs.30000 Above

6. Are you aware of L’Oreal Paris:


Yes No

7. If yes are you aware of various products of L’Oreal Paris?


Yes No

68
8. What makes you to buy L’Oreal Paris:
Price Quality Packaging Fragrance Brand image

9. L’Oreal Paris would be my 1st preference


Strongly agree Agree Neutral Disagree Strongly disagree

10. How do you know about L’Oreal Paris?


Advertisement Friends Internet Word of mouth influence Magazine

11. Do you think L’Oreal Paris is costly?


Yes No
12. How do you feel about the advertisements?
Excellent Good Fair Bad Worst

13. How frequently you purchase L’Oreal Paris products?


Very often Regular Sometimes Occasionally Never buy

14. Is L’Oreal Paris available in all outlets?


Yes No

69
15. Who is the Indian ambassador of L’Oreal Paris?
_______________________________
16. Are you aware of various men’s products?
Yes No

17. What is your satisfactory level towards L’Oreal Paris?


Highly Satisfied Neutral Dissatisfied Highly
satisfied Dissatisfied

18. How is L’Oreal Paris price compared to other products?


Very high High Same Low Very low

19. Does L’Oreal Paris gives result as it is promising?


Yes No
20. What is your budget for cosmetics per month?
Above Rs.50 Rs.150-300 Rs.300-500 Above Rs.500

21. What is the 1st word comes to your mind when you hear L’Oreal
Paris?
Quality Brand Cost Service Fragrance

70
22. Do you think L’Oreal Paris is status oriented?
Yes No

23. Do you think L’Oreal is the leader of the cosmetic industry?


Yes No
24. If no who according to you is the leader?
____________________________
25. Would you continue to buy L’Oreal Paris even if price rises?
Yes No
26. Do you prefer L’Oreal Paris brand to your friends and relatives?
Yes No
27. Few lines about L’Oreal Paris
.………………………………………………………………………………………………………
………………………………………………………………………………………………………
………………………………………………………………………………………………………

71