Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

Nygaard Tnder A/S

Project C
4/15/2011

We have made a market research on women from 16-50s cosmetics buying behavior. For this we have made a questionnaire for internet survey and mall-intercept. We have focused our market research on Nygaard Tnder A/S and their B2C sales on their webpage.

Project C

Nygaard Tnder A/S

15/04 2011

Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

Contents 1. Problem definition ................................................................................................................................ 2 1.1 1.2 1.3 1.4 2. 2.1 2.2 2.3 2.4 3. 3.1 3.2 3.3 4. 4.1 4.2 4.3 Problem background ..................................................................................................................... 2 Problem formulation ..................................................................................................................... 2 Hypothesis .................................................................................................................................... 3 Limitations ................................................................................................................................... 3 Industry ........................................................................................................................................ 3 Company background ................................................................................................................... 5 Company history .......................................................................................................................... 5 Competition .................................................................................................................................. 6 Research design and methodology ................................................................................................ 6 Sampling method and sampling size.............................................................................................. 7 Validity and reliability .................................................................................................................. 8 Data collection method ................................................................................................................. 8 Questionnaire design..................................................................................................................... 9 Error types and minimization ........................................................................................................ 9 Interviewer error ................................................................................................................... 9 Questionnaire bias............................................................................................................... 10 Processing error .................................................................................................................. 10 Nonresponsive bias ............................................................................................................. 10 Response bias ..................................................................................................................... 10 Refusal rate ......................................................................................................................... 10

Company Introduction .......................................................................................................................... 3

Research design and methodology ........................................................................................................ 6

Data collection ..................................................................................................................................... 8

4.3.1 4.3.2 4.3.3 4.3.4 4.3.5 4.3.6 5. 5.1 5.2 5.3 6. 7.

Analysis results and findings .............................................................................................................. 11 Potential costumers ..................................................................................................................... 11 Existing costumers ...................................................................................................................... 11 Findings...................................................................................................................................... 12

Recommendations .............................................................................................................................. 17 Hypotheses ......................................................................................................................................... 15 7.1 7.2 7.3 7.4 Hypothesis 1 ............................................................................................................................... 15 Hypothesis 2 ............................................................................................................................... 15 Hypothesis 3 ............................................................................................................................... 16 Hypothesis 4 ............................................................................................................................... 16

8. 9.

Conclusion ......................................................................................................................................... 18 List of literature .................................................................................................................................. 20

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

1. Problem definition
1.1 Problem background
Nygaard Tnder A/S was founded on July 1st 2008 and was selling their products on the B2B market. On the 1st of January 2010, they started selling their product on the B2C market through their website. Throughout 2010, they only had 1071 sales in total. Nygaard Tnder A/S wants to increase their sales on the B2C market using as little money as possible. Nygaard Tnder A/S has no intentions of opening their own store and we are therefore going to focus on internet sales. Furthermore, since Nygaard Tnder A/S has a wide range of products, we have decided to focus on their cosmetics sales on the internet, because we find that these products has the biggest opportunity to induce a very profitable business. The purpose of the marketing research is to investigate whether making Nygaard Tnder A/S better known on the B2C internet cosmetics market will be met with positive interest of the consumers. The research will be focus on the population of Danish women of age group 16-50. It is decided not to use people younger than 16 because they do not have the credit cards to pay over the internet and people over 50 because they tend to have a lack of trust for internet purchase. Women at the age of 16-50 are expected to be the most open to using new websites for their cosmetics.

1.2 Problem formulation

The main question of the market research will be: What would be the best marketing campaign for encouraging consumers to buy cosmetics, by using Nygaard Tnders website and to keep them attached to their service?

To solve the problem the following sub-questions should be investigated:

y y y y y y y

Does the consumer prefer to buy their cosmetics online or in the store? What type of cosmetics are most preferred to buy online by the consumers? What is important for the consumer, when buying cosmetics? Is there a relationship between age and money spent on cosmetics? Do the consumers know Nygaard Tnders website? What is the consumers attitude towards Nygaard Tnder? Who might be the target group(s) for Nygaard Tnders products?

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

1.3 Hypothesis
y y

We assume that maximum 10% of the respondents knows Nygaard Tnder. We assume that maximum 40% of the respondents would buy cosmetics on Nygaard Tnders website. We can assume that maximum 15% of the respondents buy cosmetics online.
We assume, that the heaviest users are between age 36 and 45.

y y

1.4 Limitations
The time for the project was limited, we had a tight deadline for the market research. Because of this, there may occur a lack of information, so it has been minimized, by paying maximum attention to every part of the project and collecting as much information as possible during this time. The research is limited to the area of Esbjerg and Tnder, because the highest response rates were in these regions. This limitation has been reduced, by putting the survey online, so we can reach more people all around Denmark. There was a limit of budget, which narrowed the numbers of the available tools. We tried to avoid this problem, by using free programs and websites for the data collection and evaluation. Furthermore using social sites to earn a higher response rate e.g. Facebook. The questionnaires are limited, since can't be asked everything because the questionnaire can't be too long, because it would occur a lower response rate. Therefore we took extra care about the questions, that all of them are relevant, simple and not too long. 1

2. Company Introduction
2.1 Industry
The cosmetic industry is a profitable business for most manufactures of cosmetic products. By cosmetic products we understand anything that is intended for personal care such as skin lotions, makeup and other such products meant to emphasize ones look. Given the technological development, the improvement of the manufacturing process of cosmetics and not least due to the constantly increasing demand of such product, this industry reported an important growth globally.
1

Philip Kotler & Kevin Lane Keller: Marketing Management 13th ed.

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

Large international firms (brands) and their subsidiaries dominate the cosmetic market, receiving over half of the entire industry sales. Nevertheless, successful small businesses are making their presence. There is a lot of money to be made in beauty, now more than ever. Every month there seems to be new products on the market promising youth for older women and glamour for the younger women. The cosmetic industry (also known as beauty industry or personal care industry) can be broken down to 5 segments, 1. Hair Care, 2. Skin Care, 3. Fragrance, 4. Make up, 5. Other

1. Hair Care Market Shampoos make up the vast majority of this market since everyone uses shampoo. Other significant market segments include conditioners, styling products, hair color and relaxers.

2. Skin Care market The range of products that are offered for the skin care market, are facial products are much more diverse than the hair care market. Skin care includes skin moisturizer, cleansers, facial products, anti-aging products. Of all the cosmetics, skin care product can be some of the most expensive one.

3. Fragrance This market segment is told to be the highest earning but only a few brands like Chanel #5 can last for a long time. Fine fragrance come and go like fashion and have to continue to reformulate just to compete. 4. Make up This market segment includes anything from lipstick to nail polish, as well as eye shadow. The amount of products is vast and the number of color variation are practically infinite. The market is highly segmented so there isnt really one dominant player. 5. Other The other of the cosmetic industry is made up of things like toothpaste, deodorants, sunscreen and other personal care products that are not yet mentioned.

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

In recent years, people become more aware of dangerous chemicals, safety regulations have become a major part of the cosmetic industry. As of 2010 this industry was regulated by the United States Food and Drug Administration (FDA) and the European Commission. These agencies ensure the ingredients of beauty products are safe for humans. There has also been a growth in natural cosmetics industry. It has been driven by a growing awareness of human environment impact along with a desire to eliminate the use of products with potentially harsh chemicals. More cosmetic manufacturers will start eliminating toxic and hazardous chemicals from their products and proceed with a more natural approach. The future of the cosmetic industry may even lie in organic makeups, perfume, lotions and other products. 2+3

2.2 Company background

Nygaard Tnder A/S is a wholesale company, which sells both their own and other brands of both cosmetics and nursing articles. The company is, on the paper, very new. However, it was two very experiences engross firms who merged. But their B2C sales on their webpage are very new and none of the two former companies has any experience in that area.4

2.3 Company history

In 2008 Gert Petersen and Leif Holm bought the insolvency hit WE-HA Cosmetics and formed the company Cosmetic Nygaard A/S. Later that year, Cosmetic Nygaard A/S merged with the nursing supply company Nygaards Eftf.

Nygaard Tnder A / S were founded the 1st of July 2008 and is a wholesale company, with a wide range of products to the Danish retail trade. They sell everything from sewing needles to support stockings to sunscreen. Nygaard Tnder A / S wishes in the future, to be known as a company with a very high professional competence, service, flexibility and overnight delivery. They are importers and distributors of a wide range of products from some of Europe's best and most important suppliers and manufacturers. 5

www.cemistcorner.com www.euromonitor.com 4 www.nygaardtoender.dk 5 www.nygaardtoender.dk

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

2.4 Competition
The competition in the cosmetic market is quite though as there are many players in this segment. Many companys sell their product on the internet like Nygaard Tnder, but that is not the main threat for them, as supermarkets, boutiques and cosmetic shops such as Mates sells cosmetics products through direct selling. Direct selling offers consumers a unique opportunity to touch, smell and try out the products. Because this method has been so integral in the development of consumer relationships, it continues to be a popular method of sales in many countries. The direct selling approach enables the company often to offer low-priced products to its customers because of reduced expenditure on advertising and promotion. Moreover, under this approach, consumers can ask questions, seek advice and get their product questions clarified directly from the sales consultants in a free and relaxed environment. Direct selling also ensures reliability and convenience to the consumers. Although internet retailing has taken a share from department stores, beauty specialist retailers. Consumers have been shopping for the best deal during the economic downturn and traditional beauty retailers have invested in new strategies to keep their shares of sales during the downturn. Internet retailing has become a large part of the distribution of beauty and personal care, with almost all brands and companies adding and expanding their online presence.6

3. Research design and methodology

3.1 Research design and methodology
We decided that the optimal way to approach this project was by making a quantitative, descriptive research. Quantitative research techniques that are used to gather quantitative data information dealing with numbers and anything that is measurable. Statistics, tables and graphs, are often used to present the results of these methods. Descriptive research deals with everything that can be counted and studied. But there are always restrictions to that. Your research must have an impact to the lives of the people around you. For example: finding the most frequent disease that affects the children of a town. The reader of the research will know what to do to prevent that disease, thus more people will live a healthy life.

www.euromonitor.com

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

From this conclusion, we decided to make an internet survey. In that kind of a research method there are several advantages. Most important here is the speed in which the questionnaire can be created, distributed and returned. Since the data is obtained in electronically form its easy to develop statistical summaries and charts. Another advantage is that it can be rather easy to reach a large number of people and it doesnt take much time to process the data. Furthermore, it was the most logical way to get answers from our survey, since our research revolves around an online shop. As we decided to do an online research, we had to make a choice of software to use for our work. As we wanted to have unlimited capacity of received answers we chose to use a free survey software from Google, which was is very suitable for our project. It is unlimited, easy to create questions, easy to understand and easy to work with the results. First, we used a Pivot table for our survey. To do that, we started with a codebook and then designed it on Google.docs. We had 16 questions aimed at women. The first question is e.g. about gender and the men who answered went directly to the end. For this survey we are not interested in their answers. For people to participate in the survey we used Facebook to ask our friends, and then they asked their friends to participate. Our goal was to describe in general the factors stated in the problem formulation. In the questionnaires, people were able to leave their e-mail and had the opportunity to win a gift basket. Since it is a self-administrated internet questionnaire it prevented any form of bias action of an interviewer. However, since we did not get enough answers from the older part of the population, we decided to make a mall-intercept survey as well. To do this, one of us went to Kvickly Tnder with printed questionnaires and asked people to answer our questionnaire. From this mall-intercept survey, we got 10 replies from the age group we needed, age 26-45.
7

3.2 Sampling method and sampling size

The population of interest in our research is defined as women of all ages because they are the ones that use cosmetics the most. However because our scene is the internet they have to be old enough to have a credit card for purchasing. For that we eliminated all men and asked for women of the age of 16-50, we think that women older than 50 dont trust the internet enough to give credit card

Philip Kotler & Kevin Lane Keller: Marketing Management 13th ed.

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

information. In the survey was a lack of reply from women over 40. We got their information with the mall intercept survey.8 We had a sample size of 139. We received 129 answers from the internet survey and 10 from the mall-intercept.

3.3 Validity and reliability

We have some problems with validity of our study, because many of the answered were centered to the city from which Nygaard Tnder A/S used to be centered. We advertised our questionnaire on Facebook and since many of the answers were made by our friends on Facebook and one of the groupmembers are in family with one of the owners of the company, more people knew the company than we believe the case is for the entire population. To increase reliability of our research, we did a pretest of our internet survey. This was made by a part of the population; women from another class on the school. 9

4. Data collection
4.1 Data collection method
For the market research, both primary and secondary data sources were used. The primary datas are quantitative datas, which were collected via surveys. We used 2 types of surveys: online surveys and mall intercept surveys. Due to the time limitation we received most of the responds via online survey. In the mall intercept and online surveys, we used screened samples, meaning that only women were allowed to participate in the survey. The mall intercept surveys where made primarily to reach older age of the target group, cause of lack of answers on the internet from these ages. There we used none probability sampling, with judgment sampling.

Carl McDaniel Jr.: Marketing Research Essentials Carl McDaniel Jr.: Marketing Research Essentials

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Nygaard Tnder A/S

15/04 2011

Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

The secondary data are both internal and external data. The company sent the reports of last year's sales, so we can measure the present situation at the company. The external data are mostly written sources from databases (e.g. euromonitor) and marketing articles. We used descriptive research to get answers to our hypotheses. 10

4.2 Questionnaire design

The survey is built up from 16 questions. When the survey was made, the main points were: avoid sample design errors and measurement errors, receive responses only from the target group, length, validity and reliability. The questions are clear and simple so the responder will not get confused. Most of the questions are closed questions to make the survey easy, quick, but still reliable to what we need to know. All the four types of scales have been used. The survey can be divided to two parts. The first part is about gathering information about the respondent's buying behavior and attitude towards the cosmetics market. Furthermore, their opinion about buying cosmetics online. The second part of the survey is about collecting information how well-known the company is and the respondent's aspects about the company and its products. According to the pretest, it was easy for the respondents to understand the questions, none of the questions offend anyone of the participants and it only took a couple of minutes for them to fill out the survey (approx. 4 minutes). Before the pretest was made, we had some surrogate information errors, which was changed do to the response from the pretest. Furthermore, we added an answer possibility in question 7 store experience .11

4.3 Error types and minimization

4.3.1 Interviewer error

At the online surveys there was no interviewer error, as there was no interviewer. The respondents filled out the survey on their own, following the given instructions. The mall-intercept surveys took place in Kvickly Tnder, where the company also sells its products. In this case the interviewer error consists, it was minimized by preparing the interviewer well before he/she collects the surveys and ensure all the needed equipment for the interviewer, which could be relevant for the successful
11

Carl McDaniel Jr.: Marketing Research Essentials Carl McDaniel Jr.: Marketing Research Essentials

10

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

work (e.g. in this case internet connection, which was needed to show the company's website to the respondents)
4.3.2 Questionnaire bias

Questionnaire bias, also known as measurement instrument bias, were minimized, by taking care of the questionnaire design and pretesting before the data collection. The main aspects were to keep the survey easy to understand, simple and quite short. The pretest showed, that all the aspects are successfully fulfilled.
4.3.3 Processing error

This error occurs in the process of transferring data from questionnaires to the computer. There was a huge number of data needed to be transferred to the computer; it was minimized by following rigid quality control procedures for transferring data and supporting quality control checks.
4.3.4 Nonresponsive bias

The nonresponsive bias were minimized, by shortening the questionnaire, making the survey respondent friendly, making the questions easy to understand and using instructions and definitions to make the questions more clear and offering a prize (in this case a gift basket with the company's cosmetic products). This way we managed to reach a quite high response.
4.3.5 Response bias

It was minimized, by paying special attention to the questionnaire design. The goal was to keep the questions simple and easy to understand. Furthermore, some instructions and definitions were used, so the respondents get a clearer view of the question. Sensitive questions have been avoided in order not to offend the respondents.
4.3.6 Refusal rate

The mall survey's refusal rate were quite high, more than 70% of the people refused to give response. Contrary to the mall-intercept survey, the internet survey's refusal rate were much lower, probably because the people have more time and more relaxed, when they are at home in front of the computer and more likely willing to do a little extra work. It is hard to measure the exact refusal rate of the internet survey, but according to how many people have been asked to do the survey and how many did it, it is less than 20%, which means more than 80% of the people gave response.

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

Furthermore, we had the opportunity to offer a prize (gift basket) for the participants, which probably reduced the refusal rate in both methods.12

5. Analysis results and findings

5.1 Potential costumers
Since the company is not known to the general costumer, they have a lot of potential customers. According to our sample, the women from age 36 to 45 are the most desired costumers, because they in average spend a little bit more. There is, however, not a very big difference between the age of the costumer and their spending habits on cosmetics. Nor is there a relationship between age and not wanting to buy from Nygaard Tnders webpage, because they wont buy their cosmetics on the internet. So women from age 16 to 50 are equally desired costumers for Nygaard Tnder A/S. Finally, Nygaard Tnder should be aware of the development in marketing. A new theory has emerged: 60 marketing. It is becoming increasingly important to have a good reputation with every single costumer. Potential costumers are starting to relate more and more on their personal contacts like family and friends, rather than advertising. Right now, most companies are using 3600 marketing, which means that they almost spam their possible costumers with advertising. This is of course still very important to make a name for themselves. But mouth to mouth marketing is becoming increasingly important, because customers are becoming aware of that they might not be able to trust everything in the advertisements. But before this becomes a dimension in their marketing plan, they should make the company known by ordinary marketing advertising.13

5.2 Existing costumers

The reason, we decided to make this project about Nygaard Tnder A/S, was because they had only started their B2C sales a couple of years ago and the project had not been very successful for them. They have very few costumers - only 1071 sales throughout 2010.

13

Carl McDaniel Jr.: Marketing Research Essentials http://www.dr.dk/DR2/Danskernes+akademi/Oekonomi_Ledelse/VL_Doegn_2011/20110128105753_3.htm

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

Since only 2 costumers from Nygaard Tnders webpage answered our questionnaire, it is impossible for us to conclude anything on their existing costumers other than there are very few of them and that the 2 who answered our questionnaire were satisfied with their purchase.

5.3 Findings
1) What is your Gender? As the survey was about womens buying behaviour for cosmetics products so it was important just to get the womens point of view 2) How old are you? There we would like to see the age of the womens who took apart in this survey. As a result, you can see that women between the age of 16- 25 years old took the most part of this survey. 3) How often to you buy cosmetics? Here we would like to see how often women buy cosmetics. With 44% telling us they buy cosmetics once a month and 35% buy cosmetics 2 times or more every quarter. 4) What is most important to you when buying cosmetics? Here they were supposed to rate price, quantity, brand and quality. The numbers where different, as 42 % said that price was important, which was little bit more, even when talking about the quantity, but 33% told us, they were neutral about price, but 27% told us it was important and 24% unimportant. When talking about the quality, it seems to be very important, as 58 % said that they were neutral, 37% said it to be important. Finally, we had brand to be rated. It was rated as neutral by 32% and important by 29%. 5) How much do you spend on average on cosmetics in the month? We asked this question to see how much the company could expect to earn from each potential customer. 48% respondents answered 100-299 DKK, followed by 37% answering 100DKK or less.

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

6) How often do you buy cosmetics online? This question is relevant because Nygaard Tnder wants to increase their internet sales. 63% said never, 18% answered less than once every quarter and 9 % said 2 times or more per quarter. Only 3% buys cosmetics online once a month. 7) If not, why? We want to know the reason why people dont buy cosmetics online, so hopefully we see how the best way to stimulate people to buy online and make it more user friendly to those that dont like to buy cosmetics online. 72% answered I have never thought about it . This tells us that there can be a lot of potential customers that only need to be stimulated. 40 % says that they wanted the experience in store. Not many people said that they dont trust websites or dont want to give their credit card information online. 8) What kind of cosmetics do you buy online? This question tells us what kinds products the company should focus on in their marketing strategies. This is really equal, but there is one that is lower than others and that is manicure and pedicure with only 11%. The highest ones are make-up and creams with 42% and 40%. 9) Do you use more than one website? This tells us if the consumers are loyal to one website or not and if it will be easy or hard for Nygaard Tnder to get consumers to buy from their website instead of competitors website. 67% of the people that buy cosmetics online use more than one website. This is good in the way that it will not be so difficult to make existing online cosmetic consumers to shop with Nygaard Tnder. On the other hand, we cannot assume that they will be loyal to only shopping with Nygaard. 10) Do you know Nygaard Tnder? We wanted to see how much the company is known. Only 23% said they know the company but 77% don t know it. However, we believe that this number is too high, as stated in validity and reliability .

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

11) Did you know they have an online shop? We wanted to see if the people that know the company knew they also had an online shop. Only 4% say they know and 19% said that they didnt know. This was a jump over question so the remaining 77% were not asked. 12) Have you ever used their website? We wanted to see if people that knew they had a website had ever used it. Only 2% say they have used it, but 2% said no they have never used it, this was a jump over question so 96% were not asked. 13) How do you like their service This question is about getting information about the customer satisfaction rate towards the company. The question has two parts. First is about how much were the customers satisfied with the product. The second question is about how much were the customers satisfied with the delivery. Both questions' results show a high satisfaction rate, although the number of respondents is very low, so there might be an error of validity. 14) What do you think of the layout of their website? Here we asked the customers' opinion of the company's website. The website's layout is "good" according to 38% of the respondents and 5% of the participants said, that it is "very good". On the other hand 50% of the respondents said, that it is only "standard" and the rest 7% think it is "poor" or "very poor". This results show, that the website's layout okay, but in many people's opinion still can be improved. 15) Would you buy cosmetics from this webpage? This question reflects to if the respondents would like to buy cosmetics from the company's website. 48% of the participants said "yes" and the remaining 52% said no. The result shows us, that quite a high number of people, who had not even heard about the company would buy their products.

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16) If no, why not? The last question of the questionnaire asked about reason why the respondents wouldn't buy cosmetics from the company's website. The results show, that 65% of the people wouldn't buy, because they normally don't use the internet to buy cosmetics, which can be explained by that buying cosmetics online is quite a new service and most of the people are unfamiliar with it. According to the participants, the rest two main reasons were the cost of delivery (24%) and the lack of their preferred brand (27%). The question also showed us, that most of the people found the price of products reasonable, since only 5% of the participants said, that the price is too much.

6. Hypotheses
6.1 Hypothesis 1
We assumed that maximum 10% of the respondents knows Nygaard Tnder. After collecting the required data, we tested the results in Hypostat 1.2, by the method called "test of the proportion of one sample", that if the results show, that maximum 10% of the respondents knows the company. Since the test statistic falls in the rejection region and the p-value is much smaller, than alpha (see all the tests in the appendix), we conclude that we reject H0, which means, that the percentage of the respondents knows Nygaard Tnder is possibly more than 10%. We observed, that 24,2% of the repondents know the company, but we have to add, that our research were limited to the area of Esbjerg and Tnder, so there occurs an error, since many of the respondents are from Tnder and certainly it is more likely, that they know the company.

6.2 Hypothesis 2
We assumed that maximum 40% of the respondents would buy cosmetics on Nygaard Tnder's website. We used the same method here as above and tested the results, if we can say that maximum 40% of the respondents would buy cosmetics on the company's website. The test statistic falls in the rejection region and the p-value is smaller, than alpha, therefore we reject H0, which means, that the percentage of the respondents would buy cosmetics on the company's website is likely more, than 40%. We observed that 48% of the respondents would buy cosmetics on the company's website.

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6.3 Hypothesis 3
In our third hypothesis we assumed, that maximum 15% of the respondents buys cosmetics online. By the same method, we tested if according to the results we can say, that maximum 15% of the respondents buy cosmetics online. Since the test value is bigger, than the critical value, we have to reject H0, that the observed results show, that maximum 15% of the respondents buy cosmetics online. This means probably more than 15% of the participants buy cosmetics on the internet. The p-value is very small, therefore we are very certain, that it is the correct decision to reject H0. We observed, that 37% of the respondents buy cosmetics online, although we have to add, there could be an error, since most of the surveys were filled out online and certainly people who use internet frequently are more likely buy cosmetics or other products online.

6.4 Hypothesis 4
The fourth hypothesis was about, if we can say, that the heaviest users are between age 36-45. Here we made 3 different tests, at the first test, we tested whether the number of the consumers between age 36-45 is bigger, than 50% of the total number of consumers who would buy cosmetics on the company's website, because than we could say with total certainty, that most of the company's consumers are in this age-groups. At the second test, we tested, if the number of the consumers between age 36-45 could be bigger, than the observed biggest age-group, which is customers between age 16-20 with 29,41%, because then we could say that customers between age 36-45 are the biggest age-group. The first test showed us, that we have to reject H0 and since p-value is much smaller than alpha and the test value is much bigger, than the critical value, we are very certain, that it is a good decision to reject H0, which means that we cannot say that the customers between age 36-45 are the heaviest users. Although on the other hand the second test showed a different result, the test statistic falls in the non-rejection region that means we cannot reject H0. Therefore we needed one more test two make the decision, whether consumers between age 35-46 are the heaviest users or not. In the third test we took a look at the results, we could see that the consumers from age 36 to 45 are actually two groups, in which case we can argue, that we should compare it to not only the first biggest age-group, but the first two biggest age groups, because than the result might be more realistic. This gives us 22,05% versus 51,46%, where the 51,46% is the first two biggest age-groups' percentage of the total. It showed the test value is bigger than the critical value and the p-value is much smaller, than alpha. This means, that the age-groups between 36-45 are

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very certainly not the heaviest users. (All the number of customers, is the number of customers who would buy cosmetics on Nygaard Tnder's website).14

7. Recommendations
There is no relationship between womens age and spending habits on cosmetics. Nor is there a relationship between womens age and openness towards buying cosmetics online nor purchasing their cosmetics on Nygaard Tnders web page. We can therefore not recommend Nygaard Tnder to focus on a specific age group. A recurring comment is that the costumers do not feel that their web page shows that Nygaard Tnder is selling cosmetics. It looks like they are selling hardware is just one of the comments. When we look at the web page, we feel that it is very masculine . This means that it has many sharp edges in choice of design. Since women usually are the ones buying cosmetics, and nursing articles for that matter, the web page should be more feminine. A cheap start could be to use round edges in the left side and top menu and throughout the entire web page, instead of sharp squares. Furthermore, they could try using a more creative font for the name of the company on top of the page, for instance Monotype Corsiva from Microsoft Office Word, which also could be used on the menus. It is more feminine and easily readable. The font would make their logo look like this:

Nyggard Tnder A/S

Furthermore, only 23% of the respondents knew Nygaard Tnder A/S and only 4% knew that they had a web page from where, they could buy cosmetics. Since we have been told from Nygaard Tnder that they are not interested in investing too much on this web page, we recommend them to advertise on Facebook because it is rather cheap compared to other web pages. Furthermore, the majority of their customers have a profile on Facebook and it is possible to focus their advertisement to their own target group when making it on Facebook.

14

Lind, Marchal &Wathen: Basic Statistics for Business & Economics Seventh Edition

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

Finally, 24% of the respondents who did not want to purchase cosmetics on Nygaard Tnders web page stated that they did not want to pay extra for delivery. A good solution would be to make the delivery for free, if they purchase for 500 DKK or something to that effect. We took a look at the websites source and did not find any keywords that link to their page nor is there any search engine optimization of any kind that we can find. This has to be done, as every page can have this and it is free and easy to make. Keywords are words that the search engines look for. If this is done right, it will make the website get higher ranking on Google. Do not use long sentences, preferably just words. In some cases sentences are okay. For example, Google offers you to see how much some keyword has been used, for example costmetic in Tnder . This is a great tool to help you to choose the right keywords. There is an endless list of free ways to make the website more search engine friendly and get higher ranking so we cannot make the whole list, but we would recommend to get a specialised search engine optimization company to take a look. Finally, Nygaard Tnder should be aware of the development in marketing. It is becoming increasingly important to have a good reputation with every single costumer. Potential customers are starting to relate more and more on mouth to mouth marketing. This means that potential customers use their personal contacts like family and friends to find a good company to use, rather than advertising. But before this becomes a dimension in their marketing plan, they should make the company known by ordinary marketing advertising. To be on top of this, it is very important for companies to be authentic, which means to be true to their promises on e.g. delivery and brands.

8. Conclusion
We decided to make a market research for Nygaard Tnder A/S, an engross company from 2008, where we decided to focus on their B2C sales of cosmetics online. From this, we made a problem definition:

What would be the best marketing campaign for encouraging consumers to buy cosmetics, by using Nygaard Tnders website and to keep them attached to their service?

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

The survey, we made from this problem definition, gave us these answers for our subquestions: 63% of the sample dont buy cosmetics online and 72% of these have never thought about it. Creams are most preferred to buy online. However, the others are not far from except manicure and pedicure with only 11%. Quality is most important for the consumer when buying cosmetics, next is price, third is quality and fourth is brand. 23% knows Nygaard Tnder A/S. However, for this answer we believe that we have a validity problem since most of the answers are linked to the stepdaughter of one of the bosses. The two people of the sample, who actually used their webpage, were very satisfied with their service. However, with only two answers it is very hard to say anything conclusive. Furthermore, even though the sample were very generous with their answers about the layout of Nygaard Tnders webpage, there was a lot of criticizing notes from the people who answered no to Would you use this website? . Since there is no relationship between age and spending on cosmetics, there is no special target group beyond women. From this we can conclude that since we believe there is a validity problem that they should do some marketing to become more known by the possible costumers. Since they do not wish to spend a lot of money on their B2C sales, they should make a Facebook advertisement, keywords for search engines and redesign their webpage to make it more feminine. For their choice of brands, they should focus mostly on quality and price. In the future, they should be aware of the development in marketing. 60 marketing is a new and very important theory that is emerging. They should be very much aware of this, by performing good service and being authentic.

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Nygaard Tnder A/S

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Balzs Marcell Pal, Kristn Richter, Kjartan rn Kjartansson, Vilhjlmur r Gunnarsson and Anna Mai Brodersen

9. List of literature
www.cemistcorner.com www.nygaardtoender.dk http://www.dr.dk/DR2/Danskernes+akademi/Oekonomi_Ledelse/VL_Doegn_2011/2011012810575 3_3.htm www.euromonitor.com Carl McDaniel Jr.: Marketing Research Essentials Philip Kotler & Kevin Lane Keller: Marketing Management 13th ed. Lind, Marchal &Wathen: Basic Statistics for Business & Economics Seventh Edition

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