CONSUMER BUYING BEHAVIOUR OF

COSMETICS AND BEAUTY PRODUCTS

(LOREAL, LAKME AND MABELLINE)

Report submitted to

JAMIA MILIA ISLAMIA

In partial fulfilment of the requirements for the award of the degree of

Master of Business Administration

Submitted By

 XXXX XXXX
Roll No.XXXX XXXX
Enrolment No. XXXX XXXX
Under the Supervision of
Dr. Kavita Chauhan
Professor, CMS
 Centre for Management Studies
Jamia Millia Islamia, New Delhi

April XXXX
 Declaration

I, Ms.XXXX XXXX (Roll No: XXXX XXXX) declares that “Consumer Buying

Behavior of Cosmetics And Beauty Products-Loreal, Lakme And Mabelline” is a record of

work done by me under the supervision of Dr. Kavita Chauhan , Professor, Centre for

Management Studies, Jamia Milia Islamia as part of requirements for the award of MBA

Executive Degree.

The present work is not the part of any other Degree, Diploma, and Assistantship,

Fellowship or part or whole of any published article.

Date: XXXX XXXX

Place: New Delhi (XXXX XXXX)

 CERTIFICATE
Certified that this project report on “Consumer Buying Behavior of Cosmetics And
Beauty Products-Loreal, Lakme And Mabelline’’ is the bonafide work of Ms. XXXX XXXX
(Roll No: 15MBA-9061) year 2015- 2017, which is carried out at Centre for Management
Studies of Jamia Milia Islamia in partial fulfillment of MBA Executive Degree.

Further it is certified that to the best of my knowledge the Project Work reported does not
form part of or basis of any other award by this candidate or any other candidate.

Date: XXXX XXXX Dr. Kavita Chauhan

Place: New Delhi Professor, CMS

 ACKNOWLEDGEMENT

I am very much thankful to the Director, CMS, and Jamia Milia Islamia University for
the enrollment of the course at this prestigious University.

I am very much thankful to my course co-ordinator Dr. Saiyed Wajid Ali, Asst
Professor, CMS, Jamia Milia Islamia for his support.

I sincerely thanks Dr. Kavita Chauhan, Professor, CMS, Jamia Milia Islamia for his
valuable guidance, encouragement, support and advice during the project period which
has enriched ny work experience.

My heartily thanks goes to my parents for their motivational support to complete the
project work

My special thanks to my friends and my colleagues who motivated me to under to

this course and for this project.

XXXX XXXX
CONTENTS

DESCRIPTION

Cover page        

Declaration        

Certificate        

Acknowledgments        

Chapter 1:

INTRODUCTION    

1.1 NEED AND IMPORTANCE

1.2 OBJECTIVES

1.3 SCOPE OF STUDY

Chapter 2:

Review Of Literature

Chapter 3:

3.1 INDUSTRY PROFILE

3.2 COMPANY PROFILE

Chapter 4
 RESEARCH METHODOLOGY

4.1 DATA ANANLYSIS AND INTERPRETATION

Chapter 5:
5.1 FINDINGS AND SUGGESTION

Appendices

Bibliography

EXECUTVE SUMMARY

The cosmetics industry is very widely connected with various areas of specific cosmetics

as skincare, hair care, colour cosmetics, fragrances and oral care segments which stood at an

estimated 2.5 billion dollars in 2008 and is expected to grow at 7% according to an analysis of

this sector. Cosmetics are not just the domain of women any longer and Indian man too are

attracted towards it now in today’s scenario of growing cosmetics industry. And with this

increasing demand from men, the Indian market is getting enlarged and many players are coming
out with the wide range of cosmetics and beauty products.

The consumers are the largest economic group in any country in order to expand all the

business activities. As today our cosmetics and beauty industry holds promising growth

prospects for both men and women, the companies have started going for rural expansion and are

offering specialised products to generate revenues from all the corners of the country.

The research is focused on the behavior and attitudes on the perception of the consumers

buying behavior pattern towards cosmetics product in India, Consumers move through a series of

steps when buying a product but mainly the consumer emphasis the product in a way that, it

should deliver to them on low or more affordable price with good quality and value added

features to satisfy their needs. However, to investigate the aspect of buying behavior of our

generation, what factors influence them while purchasing the cosmetics and how the consumer

addresses their buying decision when purchasing a specific product of cosmetics. The study will

explores the buying behavior of our generation and different kind of consumer behavior models

supporting with background theories. The research will be based on questionnaire and finally the

conclusion will be drawn on the bases of findings.

Chapter-1
Introduction

1. Introduction:

Marketing is the moving and exciting activity in everybody activities. The

sellers, distributors, advertising agencies, consultants, transporters, financers,

store agencies and every one as a counter are part of the marketing system. Any
 exchange process be it consumer, goods, intermediary goods, services of ideas,

comes under the preview of marketing. It is very often regarded that the

development of markets and marketing is synonymous with the economic

development of account. Through marketing is an action discipline. In the ever-

growing corporate world, marketing is being regarded as a crucial element for the

success of an Enterprise .The marketing discipline is undergoing fresh re

appraisal in the light of the vast global, technological, economic and social

challenges facing today’s companies and countries. Marketing at its best is about

value creation and raising the world’s living standards. Today winning companies

are those who succeed most in satisfying, indeed delighting their target

customers .As quoted by P.P.Drucker -Marketing is so basic that it cannot be

considered a separate function. It is whole business seen from the point of view

of its final result, that is, from the customer’s point of view. Business success is

not determined by the producer but by the customer´ .Philip Kotler has therefore

defined marketing as ³it is a social and managerial process by which individuals

and groups obtain what they need and want through creating, offering and

exchanging products of values with others´. Many Indian companies espouse a

satisfied customer philosophy and describe marketing as customer-satisfaction

engineering. Since the economy in this country has changed from a primary

condition of scarcity to gradual and steady stage of affluence, largely giving

consumers the opportunity to choose among many varied alternatives,

satisfaction has become a major concern of business.

INTRODUTION TO CONSUMER BEHAVIOR:

 The study of consumers helps firms and organizations improve their marketing

strategies by understanding issues such as how

 The psychology of how consumers think, feel, reason, and select between

different alternatives (e.g., brands, products);

 The the psychology of how the consumer is influenced by his or her

environment (e.g., culture, family, signs, media);

 The behavior of consumers while shopping or making other marketing

decisions;

 Limitations in consumer knowledge or information processing abilities influence

decisions and marketing outcome; 

 How consumer motivation and decision strategies differ between products that

differ in their level of importance or interest that they entail for the consumer;

and

 How marketers can adapt and improve their marketing campaigns and

marketing strategies to more effectively reach the consumer.

CONSUMER BEHAVIOUR DEFINITION:

One "official" definition of consumer behavior is "The study of individuals, groups, or

organizations and the processes they use to select, secure, use, and dispose of

products, services, experiences, or ideas to satisfy needs and the impacts that these
processes have on the consumer and society." Although it is not necessary to

memorize this definition, it brings up some useful points:

 Behavior occurs either for the individual, or in the context of a group (e.g.,

friends influence what kinds of clothes a person wears) or an organization

(people on the job make decisions as to which products the firm should use).

 Consumer behavior involves the use and disposal of products as well as the

study of how they are purchased. Product use is often of great interest to the

marketer, because this may influence how a product is best positioned or how

we can encourage increased consumption. Since many environmental problems

result from product disposal (e.g., motor oil being sent into sewage systems to

save the recycling fee, or garbage piling up at landfills) this is also an area of

interest.

 Consumer behavior involves services and ideas as well as tangible products.

 The impact of consumer behavior on society is also of relevance. For example,

aggressive marketing of high fat foods, or aggressive marketing of easy credit,

may have serious repercussions for the national health and economy.

CONSUMER BEHAVIOUR MODAL

A consumer decisions to purchase a particular product of service is the result of complex

interplay of a number of variables. The starting point of the decision process is provided by the
company’s marketing stimuli in the shape of product, promotion, and price and distribution

strategy. Consumer often purchase new products that are associated with a favorable viewed

brand name. The term consumer behavior refers to the behavior that consumer displaying

searching for purchasing, using, evaluating and disposing of products and services that they

expect will satisfy these needs. The study of consumer behavior in the study of how individuals

make decisions to spend their available resources (time, money, effort) on consumption related

items. It includes the study of ³what they buy´, why they buy´, when they buy’, where they buy´,

how often they buy´ and how they use´.

Learning Model
This model suggests that human behavior is based on some core concepts − the drives,
stimuli, cues, responses and reinforcements which determine the human needs and wants and
needs satisfying behavior.
  Drive − A strong internal stimulus which compels action.

 Stimuli − These are inputs which are capable of arousing drives or motives.

 Cues − It is a sign or signal which acts as a stimulus to a particular drive.

 Response − The way or mode in which an individual reacts to the stimuli.

If the response to a given stimulus is “rewarding”, it reinforces the possibility of similar

response when faced with the same stimulus or cues. Applied to marketing if an informational
cue like advertising, the buyer purchases a product (response); the favourable experience with
the product increases the probability that the response would be repeated the next time the need
stimulus arises (reinforcement).

The Psychoanalytic Model − The model suggests that human needs operate at various levels of
consciousness. His motivation which is in these different levels, are not clear to the casual
observer. They can only be analyzed by vital and specialized searching.

Sociological Model − This is concerned with the society. A consumer is an element of the
society and he may be a member of many groups and institutions in a society. His buying
behavior is influenced by these groups. Primary groups of family friend’s relatives and close
associates extract a lot of influence on his buying. A consumer may be a member of a political
party where his dress norms are different from different member.

FACTORS INFLUENCING CONSUMER BEHAVIOUR:

CULTURAL FACTORS:

Culture:
Culture is the most fundamental determinant of a person’s wants and behavior like set of values,

perceptions, preferences and behaviors through his or her family member.

Subculture:

social classes are relatively homogeneous and enduring divisions in a society which are

hierarchically ordered and whose members shares similar Values, interest and behavior and

social classes include upper class, middleclass and lower class.

SOCIAL FACTORS:

References Groups:

A persons reference groups consist of all the groups that have a direct (face to face) are indirect

influence on the person’s altitude or behavior. This group to which the person, belongs and

interacts.

Personal Factors:

A consumer decision also influenced by personal characteristics notably the buyers age & life

cycle stage, occupation, economic circumstances, life style and personality and self-concept

PSYCHOLOGICAL FACTORS:

Motivation:

A person has many needs at any given time. Some needs are biogenic. They arise from

psychological states of tension such as hunger, try stand discomfort.

Perception:

Perception is defined as the process by which an individual selects, organizes, intercepts,

information, inputs to create a meaningful picture of the world.

NEED FOR THE STUDY:

Consumer behavior plays a major role for the growth of the company in the modern market

scenario. The basic idea of this study is to find the consumer behavior towards different

cosmetics brands The needs have to be recognized and necessary steps have to be taken to make

the changes. India is growing rapidly and changes are dynamic. People are changing, the

preference and the demand is changing. The market also has to change accordingly. The purpose

of consumer behavior is not only for retaining the customers but also attracting new customers

and increasing the sales also creating and maintenance of brand awareness. In this competitive

market the level of consumer satisfaction decides the success of any product and any company.

The right consumers have to be targeted and the right strategy should be implemented at the right

time. This will give the desired results.

1.1 OBJECTIVES OF THE STUDY:

 The main objective is to determine the current consumer behavior levels of the customers

with regards to Different cosmetics brands.

 To study and analyze consumer buying behavior .

 To identify what type of strategies are suitable for the company to reach the targeted

customers

 To find out the factors which influence the consumption of the products in overall cosmetics

industry.

 To identify effectiveness of advertising sources which are influencing

customer purchasing behavior.

 To find out how the consumers spent their incomes, time on the purchasing of the

products.

1.2 RESEARCH HYPOTEHSIS:

 To identify the factors influencing the Buying Behavior of the consumers.

 2. REVIEW OF LITERATURE:
Khraim (2011), state that produce quality plays a very important role in influencing

consumer to be brand loyal customers. Consumers preferred brand name, product quality, price,

promotion, store environment and service quality are related factors attributable to brand loyalty.

All these factors showed positive relationship with brand loyalty, exclude design.

When consumers have had no experiences with a product, they tend to trust a favored as

well known brand name. Consumers often think well known brands are better and are worth

buying for the implied assurance of quality dependability, performance and services. .

( Schiffman, Kanuk, 2009).

The consumer may expect price to reflect the quality level of the product. Quality

perception may be to do with the materials or components used in the product. Price, quality can

be compared objectively, the image of the product and the contribution of the chosen item

towards needs satisfaction and lifestyle. (Cant et al, 2009).

Nilofer (2004), in a study concludes that personality dimensions affect the advertisement

preferences to consumer behavior of women of different age groups. Strebel et al. (2004),

proposed that the probability of making a decision is significantly lower when consumers are

frustrated with the pace of technological change. Cadogan and Foster (2000), states that price is

most important concern for the average consumer preferred brand that why their purchasing

intention is not affected by price. Consumer satisfaction can also be built by comparing price

with cost and values. If the value of product is greater than cost, then customer will purchase the

product. Yoon & Kim (2000), specifies that loyal customers will pay a premium even if the price

has increased because the risk is very high, they prefer to pay higher price for avoid the risk of

any change said by.

 Consumer behaviour has been always of great interest to marketers. The knowledge of

consumer behavior helps the marketer to understand how consumers think, feel and select from

alternatives like products, brands and the like and how the consumers are influenced by their

environment, the reference groups, family, and salespersons and so on. A consumer‟s buying

behavior is influenced by cultural, social, personal and psychological factors. Most of these

factors are uncontrollable and beyond the hands of marketers but they have to be considered

while trying to understand the complex behavior of the consumers. Consumer is the study “of the

processes involved when individuals or groups select, purchase, use, or dispose of products,

services, ideas, or experiences to satisfy needs and desires” (Solomon 1995, 7). In the marketing

context, the term „consumer ‟ refers not only to the act of purchase itself, but also to patterns of

aggregate buying which include pre-purchase and post-purchase activities. Pre-purchase activity

might consist of the growing awareness of a need or want, and a search for and evaluation of

information about the products and brands that might satisfy it. Post-purchase activities include

the evaluation of the purchased item in use and the reduction of any anxiety which accompanies

the purchase of expensive and infrequently-bought items. Each of these has implications for

purchase and repurchase and they are amenable in differing degrees to marketer influence

(Foxall 1987). Engel, et al. (1986, 5) define consumer behavior as “those acts of individuals

directly involved in obtaining, using, and disposing of economic goods and services, including

the decision processes that precede and determine these acts”. Simple observation provides

limited insight into the complex nature of consumer choice and researchers have increasingly

sought the more sophisticated concepts and methods of investigation provided by behavioral

sciences in order to understand, predict, and possibly control consumer behavior more

effectively.
 The consumers mind is different from one another in this as author said in the definition

that according to the human psychology, demographical differences, age & sex and to

understand people needs and to assess the influences of every consumer approach is different, in

theory explained that consumer is treated as decider of the company, what ever the product

comes to the market, the consumer is the ultimate purchaser for every product, some times the

consumers are choosing, selecting and going for family decision making to choose differently, in

one point of time the consumers differentiated and explained that they are going for personal and

some of the them are using products for profit. (Kotler, 2004).

Price is so often considered an indicator of quality, some product advertisements

deliberately emphasis a high price to underscore the marketers claims of quality. Marketers

understand that at time, product with lower price may be interpreted a reduced quality. At some

time, when consumers evaluate more concrete attribute of a product, such as performance &

durability they rely less on price & brand name as indicates of quality than when they evaluate

the product's prestige and symbolic values.( Merrie, Valarie, 2000)

Advertising informs consumers about the existence and benefits of products and services,

and tries to persuade consumers to buy them (MacKenzie, 2004).The goal of advertising is to

persuade the consumer to do something, usually to purchase a product. If advertising is to attract

and communicate to audiences in a way that produces this desire result, advertisers must first

understand the consumers.(Lee, Johnson,2005) Advertiser's primary mission is to reach

prospective customers and influence their awareness, attitudes and buying behaviour. They spend

a lot of money to keep individuals (markets) interested in their products. To succeed, they need

to understand what makes potential customers behave the way they do. The advertisers goals is

to get enough relevant market data to develop accurate profiles of buyers-to-find the common
group (and symbols) for communications this involves the study of consumers behaviour: the

mental and emotional processes and the physical activities of people who purchase and use

goods and services to satisfy particular needs and wants (Arens, 1996).

Consumers were more likely to switch brands after the price increased than if they were

simple exposed to the higher price to begin with. As pricing can influence the decision of

consumer to take or drop the purchasing idea by which they are go for substantial product with

low price and perceived quality. (Mullen, Johnson, 1990)

Brand image takes place when brand associations held in the mind of consumers are

conveyed onto a consumer's perception about a brand. These associations can either be

developed from direct experience with the product, from the information communicated by the

company, or from previous associations held about the company and origin, etc. (Martinez et al.

2003).
 CHAPTER : 3
PROFILE OF THE STUDY AREA

3.1 COSMETICS INDUSTRY OVERVIEW:

Cosmetics industry is expected to garner $429.8 billion by 2022, registering a CAGR of 4.3%

during the forecast period 2016-2022. Cosmetic market (make up or beauty products) are

mixture of chemical generally used to enhance the appearance or odor of the human body. Retail

stores including supermarkets, exclusive brand outlets and specialty stores amongst others are

the major distribution channels, with online channels gaining popularity among consumers.

There is a considerable rise in disposable incomes over the past decades. The growth in global

economies, changing lifestyles, rising demands of skin and suncare products due to varying

climatic conditions encourages the growth of the cosmetics market.

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.

 Top factors impacting Global cosmetics market:

Source: Secondary research and AMR analysis

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.

 Top winning strategies in world cosmetics market

Source: Secondary research and AMR analysis

Segment overview:

The global cosmetics market is segmented based on category of cosmetics, mode of sale, gender

and geography. The category segment includes skin & sun care products, hair care products,

deodorants, makeup & color cosmetics and fragrances. Among these products, skin & sun care,

and hair care products are majorly used by individuals and hold considerable amount of

percentage share in global cosmetic products category market. The mode of sale comprises retail

and online sale, where retail mode of sale is further classified into general departmental store,

supermarkets, drug stores and brand outlets. Customers for buying cosmetic products majorly
prefer the retail mode of sale. However, online medium for the purchase of cosmetic product is

observed as a rising trend among customers. Geographically, the global cosmetics market is

bifurcated into North America, Europe, Asia-Pacific and LAMEA.

Market segmentation

3.2 LOREAL GLOBAL RESEARCH AND INNOVATION AND ITS INTEGRATED

INDUSTRIAL PRODUCTION

L’Oréal has always made major investments in research and puts cosmetic innovation at

the very center of its modal for growth. With over 130 molecules developed over the past 40

years, the group is exceptional in its brand ability to patent major active ingredients well in

advance of competitions. L’Oréal has organized its research and innovation around size

platforms ( Europe, United States, Japan, china, Brazil and India). In each major region of the
world, these poles integrate the activities of research & development expertise and market

fundamentals.

Their mission is also to understand the habits, needs and criteria for preferences of local

populations where beauty is concerned. L’Oréal is able to offer cosmetics products that are

adopted to different skin types, hair types and cultures with their rich and diversified brand

portfolio. L’Oréal is richly endowed with a portfolio of international brands that is unique in the

world and that cover all the lines of cosmetics, hair care cloning, skin care, make up and

perfumes. It makes it possible to respond to the every customers expectations according to his or

her habits and lifestyles but also to adopt to local distribution condition anywhere in the world.

The brands of L’Oréal lux strive to promote the different specialties of luxury in skin care and

fragrances. L’Oréal’s operations, expertise and services close to consumers. To meet consumers

need operations roll out their expertise in their three core areas of responsibility, quality, safety

and protection of people and sustainability within the context of the group’s sharing its various

brands with all sustainable program. The group achieved a significant growth in their sales and

cash flow, hence, setting a new market records.

The following sales growth of L’Oréal’s balanced business modal helps us to build a sustainable

and profitable growth dynamic.

LOREAL COMPANY PROFILE

Brand Value : 12, 480 (Million USD)

Founded in Paris in the year 1953. Loreal has risen to become the world’s number one

Cosmetics Company. Loreal owns the host of well known consumer and luxury brands. Such as
Garnier, Maybelline, Lancome and Kiehl’s as well as perfume brands Ralph Lauren and Georgio

Armani. It also owns popular salons professional product makers Matrix and Karatase.

Their top three competitors are:

Estee Lauder

Shisheido

Revlon

Chairman and chief executive officer:

Mr. Jean Paul

LAKME:

Lakme is an Indian Cosmetics brand which is owned by Hindustan Unilever, having

Shraddha Kapoor as the Brand Ambassador, it ranked at number 1 among the cosmetics brands

in India. Lakme started as a 100% subsidiary of Tata oil Mills (TOMCO). It was named after the

French opera Lakme which itself in the French is a form of Lakshmi ( Goddess of wealth) who is

renowned for her beauty. It was started in 1952 famously beacause the Prime Minister

Jawaharlal Nehru was concerned that women were spending precious foreign exchange on

beauty products and personally requested Sh JRD Tata to manufacture them from India Simon

Tata joined the company as director and went on to become the become the Chairperson. In 1996

Tata sold off their stakes in Lakme Lever to HUL for Rs.200 crores (45 millions USD).

In the brand trust report 2012 Lakme was ranked 104th among India’s most trusted brands

and following the next year it was ranked 71st among India’s most trusted brands. In 2014 Lakme

was ranked 36th among the India’s most trusted brands.

 THE INDIAN RETAILS OF COSMETICS MARKET OF LAKME’’

COSMETICS FRAGRANCES
OTHERS 7% 21%
HERBAL
BEAUTY
HAIRCARE
SKINCARE
COLOUR
PRODUCTS
SERVICES
14%
17%
19%13%
9.1%

MABELLINE:

The rise Mabelline from a small mail order firm to a global cosmetics business is impressive.

Despite the fact that, the company is now called Mabelline New York, its early fortunes like

those of Max Factor & the West More Brothers, were tied with the growing motion pictures

business in California.

Tom Lyle Williams, was the founder of Mabelline was entrepreneurial, hard working. In 1915,

Tom Lyle watched his sister Mabel Fix has signed eyebrows & using a mixture of Vaseline, ash

and coal dust, a trick she apparently got from ‘’Photoplay’’ magazine. Seeing an opportunity for

a product to sell through his mail-order business he used a chemistry set to produce a mixture

containing petroleum (Vaseline), carbon black, cottonseed oil, sunflower oil that he hoped he
could sell. Tom Lyle sought professional advice and commissioned Parke- Davis, a wholesale

drug manufacturer, to make suitable product for sale. In 1916, the first advertisement for the

lash-brow line in photoplay magazine was published. In 1917, again with the assistance of Park-

Davis, Maybell laboratories begin production and sale of eyebrow beautifier & other mascara

were emerged in the market. In 1924, the growing business was relocated to larger headquarters

at 5900 North Ridge Avenue, Chicago. With its name Maybell Laboratories renowned

Maybelline in the year 1923.

CORPORATISATION & SALE:

After its incorporation in 1954, the company saw two decades of continuous growth with its

sales reaching USD 25 Million in 1966 (William and Young 2010). During this time the

company remained firmly fixed on eye products including Mascara, Eye liner, Eye Shadows,

Eyebrow pencils & tweezers.

Incidentally, Maybelline is the official cosmetic sponsor for Mercedes Benz Fashion week.

Maybelline continues to produce awesome products. They can compete with upscale brands in

terms of color ease of application & beauty at a fraction of the price.

 CHAPTER : 4

RESEARCH METHADOLOGY

Data Analysis

Questionnaire

4.1 RESEARCH METHODOLOGY

The survey technique is intended to secure one or more items of information from a sample of

respondents who are representatives of a larger group. The information is recorded on a form

known as questionnaire. As data are gathered by asking questions from persons who are believed

to have desired information, the method is known as questionnaire technique.

REASONS FOR WIDE USE OF THIS METHOD:

It can secure both quantitative and qualitative information directly from the respondents.

It is the only method of directly measuring attitudes, behavior and motivations.

It is quite flexible in terms of the types of data to be assembled, the method of collection or the

timing of research.

This method is also feasible as it gives us the chance to get information directly from the

respondents.

This method has some limitations also i.e of time constraint, and huge data requirement.

Meaning of Research

According to D. Slessinger and M. Stephenson in the Encyclopedia of social sciences define

research as ³the manipulation of things, concepts or symbols for the purpose of generalizing to
extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in

the practice of an art´.

TYPES OF RESEARCH

 Exploratory Research,

 Descriptive Research.

Exploratory Research:

Exploratory research studies are also termed as formulate research studies. The main purpose

of such studies in that of formulating a problem for more precise investigation or of

developing the working hypothesis forms an operational point of view.

Descriptive Research:

Diagnostic Research studies determine the frequency with something occurs or its

association with something else. In this project, information pertaining to customer needs

or satisfaction and their preferences was collected; hence it is a descriptive research.

4.2 DATA ANALYSIS

A) Primary Data:

Primary sources of data are the data which needs the personal efforts to collect it and

which are not readily available. Primary source of data are the other type of source

through which the data was collected.

B) Secondary Data

Secondary data is the data that have been already collected by and readily available from

other sources. Such data are cheaper and more quickly obtainable than the primary data

and also may be available when primary data can not be obtained at all.
Following are few ways in which the data is collected.

1. Questionnaires:

It is the set of questions on a sheet of paper was being given to the of fill it, based on

which the data was interpreted

2. Direct interviewing:

Direct interviewing involved the process where questions were directly asked from the customers

and the feedback was collected

C) Period of study:

The study is undertaken in the duration of very less time.

D) Research approach:

The survey method was adopted for collecting the primary data. Survey research is systematic

gathering of data from respondent through questionnaire.

E) Research instrument:

The data for research study was collected by survey technique using interview method guided by

the questionnaire.

 F) Collection of Data:

Questionnaire is the method that have been used for collecting the data.

4.3 QUESTIONNAIRE

Quest 1. What is your age ?

a) 16 to 25 years d) 26 to 35 years

b) 36 to 45 years e) over 55 years

c) 46 to 55 years
Quest 2. Select your preferred brand?

a) Loreal

b) Lakme

c) Mabelline

d) Others ( Specify__________

Quest 3. Please mark the selected option on trial and opted bases?

TRIED NOT TRIED TRIED & TRIED & CAN

NOT OPTED OPT IF OFFER

OUT WILL COME

LOREAL
LAKME
MABELLINE
OTHERS(Please

specify)

Quest 4. For how long you have been using the above mentioned preferred brand (____)?

a) Less than one year d) 2 years

b) 1 Year e) Less than 5 years

c) More than 5 Years

Quest 5. How important for you to have Brand Loyalty?

a) Extremely important d) Important

b) Not important e) Slightly not imp

c) Not imp at all

Quest 6. How do you rate the pricing of the chosen brand?

a) Expensive c) Competitive

b) Affordable d) Reasonable

Quest 7. Why do you buy cosmetics products?

a) Beauty

b) Civility (Sharing politeness, courtesy, social status etc)

c) Health (Eg. Anti ageing, anti dryness, etc)

d) Others (Please specify)

Quest 8. What factors influence when you to decide for purchasing cosmetic product?

(Rank it as per your choice____)

a) Brand

b) Advice from in store consultant

c) Recommendation from friends

d) Place

e) Special offers or Promotion

f) Packaging

Quest 9. How did you come to know about the ________ Brand?

a) Through advertisement

b) Word of mouth / Reference from family or freinds

c) Internet Search

d) Direct marketing (e.g direct mailing, SMS, e-mails)

e) Magazines (Specify the names…)

Quest 10. What % of your income do you spend on your brand?

a) Below 10% c) 10 – 25 %

b) 25 – 50 % d) 50 % and above

Quest 11. Do you agree with the following statement….?

STRONGL AGREE NEUTRA DISAGRE STRONGL

Y AGREE L E Y

DISAGREE
The only guarantee of

quality is a recognizable

brand.
I love trying new cosmetic

brands.

Quest 12. Have you ever buy a cosmetic product after watching an advertisement?

a) Yes b) No c) May be

Specify____________

Quest 13. From where do you tend to buy your cosmetics?

a) Shopping malls c) Super markets

b) Beauty salons d) Online

Quest 14. How frequently do you buy your favorite cosmetics products?

a) Occasionally c) Weekly

b) Monthly d) Yearly
Quest 15. Are you willing to pay more than the normal price for the product if it fulfills

your requirement?

a) Yes b) No c) None

Quest 16. What improvements will you suggest the Brand to make it better?

a) Maintain high quality of products

b) Reasonable prices

c) More innovative products launch

d) Convenience of buying

e) Other Specify______

Quest 17. Do you recommend the above cosmetics brand depending on your past

experience?

a) Yes b) No c) May be

CHAPTER : 5
Analysis and Conclusion

Sample profile- The sample profile consists of the following attributes:

5.1 Age

Fig 5.1

As we can see in Fig 5.1 the survey conducted involves the different age groups,

therefore 45.45% of respondents falls under the age group of 16-25 years, 15.15% involves 36-
45 years of age, 7.07% falls under the age group of 46-55 years, 29.29% falls under the age

group of 26-35 years and 3.03% comes under the age group of over 55 years.

5.2 Brand

Fig 5.2

From the Fig 5.2, it’s interpreted that 31% of respondents prefer LOREAL brand, 36% of

respondents prefer LAKME brand, 25% of respondents prefer MABELLINE and 8% of

respondents prefer other brands like Inglot, Bobby brown, Mac, oriflamme, Lotus, Ell 18 etc.

Hence, it is shown from the study that LAKME is the most preferred brand among the three and

Loreal stands at second position.

5.3 Tried And Opted

 Fig 5.3

As we can see in Fig 5.3, from the above study, it has been interpreted on the basis of tried and

opted options, 70% of respondents have tried Loreal but 10% of them are interested in opting it if

some offers or promotions will come.

Same as 73% of respondents have tried Lakme and 10% of them can opt it if some offers will

come.
In case of Mabelline, 61.62% of respondents have tried and have shown the interest in buying it

if some offers or promotions will come.

5.4 Using Brand

Fig 5.4
As we can see in Fig 5.4, from the above study, it’s interpreted that 11% of respondents have

been using their cosmetics for less than one year time, 17.1% of respondents have been using it

for 1 year,25.25% of respondents have been using it for more than 5 years time, 27.27% of

respondents have been using it for less then 5 years time. Hence, it has been shown that among

the samples taken respondents using it for 2 years are higher.

5.5 Affordability

Fig 5.5
In the fig 5.4, from the above study, it’s interpreted that 21% of respondents feels the pricing of

the chosen brand is expensive, 42% of respondents feels that it is affordable, 18% of respondents

feels that it is competitive and 19% feels that their chosen brand is reasonable in pricing.

5.6 Purpose

Fig 5.6

From the above fig 5.6, it’s interpreted that 57% of respondents buy their cosmetics for beauty
i.e to look beautifull,13% of respondents buy their cosmetics for civility, 28% of respondents

buy them for health reasons and 2% buy for other reasons of satisfaction.

5.7 Factors

Fig 5.7
From the above Fig 5.7, it’s interpreted that 67% of respondents have ranked brand factor at the

first position, 16% of preference have been given to recommendation of friends, 8% is given to

advice from in store consultant, 5% is given to special offers and promotions and 2% each

preference is given to place and packaging. Hence, consumers tend to buy for Brand first.

5.8 Awareness

Fig 5.8
As we can see the above fig. 5.8, on the scale of awareness, from the above study, it’s interpreted

that 46% of respondents came to know about their brand through advertisement, 33% of

respondents got to know about the brand from word of mouth or references from friends, 12%

from internet search, and 9% from magazines like femina, cosmopolitan etc but direct marketing

has no effect. Hence, advertisements plays a very important role in the life of consumers along

with the word of mouth.

Fig 5.9 Income Spend

Fig 5.9
From the above study, it’s interpreted that 46% of respondents spend between10-25% of their

earnings on buying cosmetics and beauty products, then 36% spend below 10%, 14% spend 25-

50% and 4% of respondents likes to spend 50% and above of their income on buying the

cosmetics and beauty products. Therefore, the higher scale of spending is falling under 10-25%.

5.10 Statement
 Fig 5.10

As we can see in Fig 5.10, from the above study, it’s interpreted that 47% of respondents are

agreed upon the fact that the only guarantee of quality is a recognizable brand while 25% are

neutral and 24% strongly agree with it and thinks that brand quality speaks about the brand.

Second statements states that only 15% of respondents are strongly agreed on trying new

cosmetics brand 30% are agreed, 39% are neutral and 12% disagreed.
5.11 Loyalty

Fig 5.11

As we can see in fig 5.11, from the above study, it’s interpreted that 48% of respondents feels

brand loyalty is important for them, 39% feels it is extremely important for them, for 6% it is not

important, for3% it is not important at all and 4% of respondents shows that it is slightly not
important for them. Hence, it is proved that maximum number of respondents are loyal towards

their brand.

5.12 Influence Of Advertisement

Fig 5.12

From the above fig 5.12, it’s interpreted that 55% of respondents buy their cosmetics after

watching the advertisement, 26% of respondents have shown that they may buy the cosmetics

after watching an advertisement and 19% denied to buy their cosmetics after watching an

advertisement. Therefore, advertisement influence the buying behavior of the consumers.

5.13 Buying

Fig 5.13

From the above fig 5.13, it’s interpreted that 46% of respondents buy their cosmetics from

shopping malls, 28% from super markets,17% from online and 9% from beauty salons.
5.14 Purchasing Time

Fig 5.14

As we can see in fig 5.14, from the above study, it’s interpreted that 44% of respondents buy

their cosmetics occassionaly,49% of respondents buy monthly, 2% of respondents buy weekly

and 5% of respondents yearly.

5.15 Influenced To Pay More

Fig 5.15

From the above fig 5.15, it’s interpreted that 66% of respondents are willing to pay more then the

normal price if the brand fulfills their requirement, 31% are not willing to pay more and 3% says

none about it.

5.16 Recommendation To Brand

Fig 5.16

As we can see fig 5.16, from the above study, it’s interpreted that 40% of respondents are

expecting from their brand to maintain the pricing, then they are focusing on maintaining the

high quality of products, 15% of respondents are interested in more innovative launches and 8%

of respondents wants the convenience of buying.

5.17 Recommendation To Consumers

Fig 5.17

From the above given fig 5.17, it’s interpreted that 81% of respondents are willing to recommend

their brand which shows the satisfaction level of the respondents, 12% may recommend and 7%

are not willing to recommend.

 CHAPTER 6

Findings, Recommendations, Limitation And Bibliography

6.1 From the responses of 100 customers the findings can be listed as under:

 As per the findings 45.45% of the customers are youth falling under the age group of 16

to 25 years.

 It has been found that the Majority of the Respondents came to know about their brand

through advertisements and then word of mouth/ references from family or friends . So it

can be concluded that the word of mouth and advertisements play a very important role in

attracting customers to buy their cosmetics and beauty products.

  As per the findings, Majority of the respondents buy their cosmetics occasionally.

 As per the findings, majority of the respondents are purchasing the cosmetics and beauty

products for the purpose of beauty and then for health reasons.

 As per findings, Majority of the respondents are interested in buying their cosmetics

products from shopping malls and super markets.

 As per the findings, majority of the consumers have are willing to advice the brand to

keep the reasonable prices of the products along with maintaining the high quality of the

products.

 As per the findings, most of the consumers have preferred the brand over the others

before buying their products.

 As per the findings, most of the respondents like to spend between 10 to 25% of their

income.

 As per the findings, majority of the customers are satisfied with the value for money i.e

affordable provided by their respective brand.

 As per the findings, 40% of respondents feels brand loyalty is important for them and

very close to it is 39% of respondents feels brand loyalty is extremely important for them.

This shows their love and attachment for the respective brand.

 As per the findings, 40% of the respondents will recommend to their brand to work on
prices and keep them reasonable along with the quality of products they are offering.

 As per the findings, 81% of the Respondents would like to suggest their brand to others,
which shows the level of satisfaction of consumers with their brands.

5.2 RECOMMENDATIONS

An attempt has been made to suggest the brands a few measures. These suggestions have

been made within the preview of the data available.

1) The company must go for some more promotional activities as consumers are attracted

towards the brand through advertisement and word of mouth.

2) As per the suggestions the brands should keep maintaining the high quality of the

products.

3) Innovative product launch can give the company an advantage over competitors..

4) Most of the customers belongs to age group of 16-25 years. So, company must

concentrate more on this age group to enhance the sales.

5) Also, the company should concentrate more on the customers of age group of 26-35 years

to increase sales.
 6) Reasonable and affordable price factor should also given consideration.

5.3 LIMITATIONS OF THE STUDIES

The time was very limited to conduct the research on the selected topic because studying the

pattern of the consumer buying behavior needs time to look for more concepts and theories

which provide strong background for the proposal.

 Therefore, time has been a major constraint throughout the study.

 As this survey was done only in New Delhi, this cannot be stated as an in-depth research

on this subject. Enough care is taken in formulating the questionnaire, still some errors

may creep in.

 The consumer behavior varies according to different brands.

5.4 BIBLIOGRAPHY:

eferences 1. Catogan, J.W., & Foster, B.D. (2000), Relationship selling and customer loyalty: An

Empirical investigation, Marketing Intelligence and Planning, 18(4), 185-199. 2. Khraim, H.S.

(2011), The Influence of Brand Loyalty on Cosmetics Buying Behaviour of UAE Female

Consumers, International Journal of Marketing studies, 3(2), 123-133. 3. Nilofer, (2004), A

Study on the Effect of Presently on Advertisement and Consumer Behaviour and Rural

consumers in Kavali Mandal, Indian Journal of Marketing, 34(1), 15- 9. 4. Strebel, J., Kathleen,

O‘Donnell, & Myers, J.G. (2004), Exploring the Connection between Frustration and Consumer

Choice Behaviour in a Dynamic Decision Environment, Psychology and Marketing, 21(12),

1059-1076. 5. Yoon, S.J., & Kim, J.H. (2000), An Empirical validation of a Loyalty Model based

on expectation and Disconfirmation, Journal of Consumer Marketing, 17(2), 120-136.