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A SUMMER INTERNSHIP PROJECT REPORT
ON
PERCEPTION & BUYING BEHAVIOUR OF MODERN CONSUMERS
TOWARDS PERSONAL CARE PRODUCT in French Cosmetics PVT
LTD.
SUBMITTED TO
Dr. J. K. Patel Institute of Management- MBA
INSTITUTE CODE 711
IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR
THE DEGREE OF MASTER OF BUSINESS ASMINISTRATION
Gujarat Technological University
UNDER THE GUIDANCE OF
Faculty Guide: Mr. Shantanu Chakravarthy PROF, JKPIM
Company Guide: Mr. Devang shah Manager French cosmetics
PVT. LTD
SUBMITTED BY
Hemang Patel
Enrollment No.: 107110592006
M.B.A - I , SEMESTER II
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EXECUTIVE SUMMARY
The Summer Internship Project at FRENCH COSMETICS. Vadodara was very
informative and knowledge giving.
I have done Research Study on the Perception and Buying Behaviour of
Modern Consumer towards Personal Care Product on garment. The Research
Study was confined to Vadodara City with a sample size of 275. I have
primary data through questionnaire. I have also used different retail
magazine and web-site for required information in our secondary data.
Also, the study of market conditions prevailing, is done on the basis of some
projections have been undertaken for various aspects. General overview of
the present market and its competitors, followed by its survey on the basis of
the peoples viewpoint.
At the end of the Research study I have come to the conclusion that French
group have good potentials and scope to attract customer in store but they
need to create more awareness in the FMCG market.
There were some limitations also of our Research study.
All the suggestions and findings might prove important to the French group
and helpful to find consumer preferences in their segment.
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OBJECTIVES OF THE STUDY
To know about consumers perception about cosmetic goods when
they purchased it.
To determine the actual demand of consumers.
To know about the performance of popular brands of different
companies in market.
To evaluate whether this companys strategies would be able to reach
customer satisfaction through a questionnaire survey.
To analyze the different factors for the success of the company.
To find out the problems for the company.
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COMPANY PROFILE
Morgain Enterprise, a group of industries having number of Pvt. Ltd.
Companies in manufacturing of various products viz. Personal Health Care.
French cosmetic is part of the Morgain Group, it manufactures 56
international brands and more than 200 world top class products like:
1. Perfumes
2. Body talc
3. Body soap
4. Herbal oil
5. Herbal cream
6. Shampoo
7. Baby massage oil and many more
8. Ayurvedic tooth products
9. Shaving creams
10.Various other cosmetic products used in day to day life
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French cosmetics is the part of Morgain Group and it is very important part of
the Group as it manufactures all cosmetics products
The company is basically from Paris and now trying to introduce its product
in India for increasing their customers and market share. It is producing
range of necessary as well as luxury products having variety in each product
line.
This company has a unique feature in it. They believe in backward integration
where they purchase raw material from the market and other procedure like
molding, quality check, and conversion of raw material to finished product is
done in plant only.
This company is in the development stage and for marketing its product it
has hired the Americas top rated model.
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Vision
To bring international brand in hair care, cosmetics, toiletries in
Indian Market.
To become one of the top ten companies in the hair care & cosmetics
segment in India.
The main management target of our company is to provide the best
quality in a reasonable price with prompt delivery & satisfactory
services.
Our management principle is Trust worthiness, Loyalty,
cooperativeness and harmony.
Our motto is the success of the company lies in the satisfaction of
our customer.
Our management spirit is united, creative, practical and contributing
Mission
Our mission is to help customers alccelerate growth by accelerating
innovation and delivering consistently high quality products on time and on
budget.
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PRODUCT LINE
French cosmetics Health Carerange brings for you awide selection of
Ayurvedicand natural productsthat offer complete carefor varying individual
needs. Our products are derived from the time-tested heritage ofAyurveda,and backed by the most modern scientific test & trials that ensure unfailing
quality and safetyin anything you pick.
Body lotion:
Formulated with Aloe Vera to protect, soothe skin & deliver natural moisture
A rapid penetrating body lotion
Loaded with intensely hydrating Dead Sea minerals
Contains Witch Hazel extracts to sleek, refresh & revive skin
Leave skin soft, nurtured & healthy looking
To use: Apply to clean body skin in the morning
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Herbal beauty cream & sunscreen:
A weightless, non-greasy sunscreen cream
Features a water, sand, heat & perspiration-resistant formula
Defends sun-exposed skin against drying effects of salt water
Contains light-stable, heat-resistant broad spectrum sun filters
Offers UVB, UVA & Infra-red shield
Provides hydrating, softening & reviving benefits
To use: Apply to dry skin before sun exposure. Reapply at least every 2 hours &
frequently after swimming
Lipsticks:
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A slim lipstick with creamy emolliency
Provides sheer colour for natural looking
Imparts radiant shine & moisturizing benefit of a gloss
Smooth & non-sticky for comfortable wear
Finishes include cream, sparkling pearl and metallic
The quality of this unboxed item will be as fresh & genuine as the original packing
Perfume:
A bold, luminous fragrance for confident women
Delivers a mysterious, warm, passionate scent
Top notes of jasmine, lily, lush magnolia
Heart notes of mandarin orange pulp, honey
Base notes of black pepper, sandalwood, glowing amber
The quality of this unboxed item will be as fresh & genuine as the original packing
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Nail protector:
A clear base coat
A flexible barrier between nails and nail polish
Prevents pigments in nail polish
Improves the adherence of nail polish
Makes every manicure last longer
Shampoos:
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It's an age-old learning. The less worries you have, the more beautiful you
look. And that is exactly where the French cosmetics range of Natural &
Ayurvedic shampoos helps you, because it contains active natural
ingredients, not harmful chemicals.
Choose from our varied range of Smooth & Silky, Root
Strengtheningand Black Shineshampoo to transform your hair into a
beautiful mane. Wash away dandruff and strengthen your crowning glory
with Swisscair Dandruff Controlshampoo range. Get the protection of
Ayurveda for your hair with our Total ProtectShampoo range. The best part
is you don't have to worry about hair damage. Because it is only when you
are cheerful and worry-free, that you stay beautiful forever.
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INTRODUCTION TO THE STUDY
Generally, personal care products are those products which a consumer uses
for his personal purpose. It includes different types of cosmetics and skin
care products like talc, cold cream, fairness cream, toothbrush, perfume,
deodorant, hair oil, shampoo, soap, and all type of baby care and beauty
care products. These are the core FMCG products. Any person needs these
products every day.
Personal care products are an art of FMCG industry. In some words we can
say that personal care products are the backbone of FMCG industry. As per
the time passes away, the demand of personal care products are also
increasing day per day and future of these products are also very bright and
profitable.
There was a time when consumers do not spend too much amount on the
personal care products. But in those days, they are not only eager for
spending more money on the cosmetics products, but at the same time they
are looking for a good and prestigious brand for the particular product.
Modern media and advertisement plays an important role in the increasing of
demand of personal care goods. People of metro cities are too much brand
conscious but if we look at the people of semi urban and rural areas, they are
also looking for a good brand for the particular product.
Himani Fair & Handsome - Mardon Wali Fairness Cream, Thanda Thanda Cool
Cool Navratna talc, International Lux etc. are the some of the front drive of
advertisement in the way of the success of personal care products.
Background of the Study :-
The Indian cosmetic Industry has witnessed rapid growth over the last couple
of decades. In that time the range of cosmetic and beauty products in India
has widened tremendously. Beauty products manufacturers in India mostly
cater to the great demand for cosmetics and toiletries that fall into the low or
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medium-price categories as the greatest demand in India has always been
for these economically priced products.
However, in recent years in the cosmetics market, Indian competitors have
begun to manufacture products to cater to an International need. Forinstance, herbal cosmetics from India have a great demand in the overseas
market and many cosmetic products that are manufactured in India today,
are supplied to international suppliers of branded cosmetics products like The
Body Shop for example. New facts that have been unveiled by a series of
cosmetics business market analysis India reveal that many International
companies are now outsourcing cosmetics to India and that the industry of
cosmetics products in India is growing at an average rate of almost twenty
percent annually. This increase is attributed to two main factors. The first
being the increase for the demand in Indian cost-effective products and the
second being the increased purchasing power of the average Indian.
There are also many reasons for the increased demand for cosmetic products
in particular. With the introduction of satellite T.V and a wide array of
television channels as well as the internet, the average Indian consumer is
constantly bombarded with the advertisements and information on new
cosmetic products which often translates into the desire to purchase them. A
boom in the Indian fashion industry has also been linked to the increased
awareness of Indian people about their appearances and consequently
contributed to an increase in the demand for cosmetic products.
However, even with the massive surge in the popularity of cosmetic product,
statistics have shown that the average Indian consumer spends much less on
cosmetics product then consumers from every other part of the world. This
means that the Indian cosmetics industry has an ever greater potential forthan it is presently experiencing.
In the entire range of products that fall within the territory of the Indian
cosmetics and toiletries market, the most popular items are color cosmetics,
of which nail varnish, lipsticks and lip glosses account for the most sales. In
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this area, popular local brand names include Lakme and Revlon. Skin-care
cosmetic have experienced a slower growth and products such as anti-
wrinkles creams, cleansers and toners, for instance are not as popular as
facial creams, moisturizers and fairness creams in this genre. Companies like
Ponds and Fair and Lovely rule this segment.
Few cultures valued beauty and cosmetics products in ancient times as the
Egyptians did. The history of ancient cosmetics can also be traced back to
the culture of ancient Greece and make-up was also popular in the Roman
Empire. There is sufficient evidence to suggest that people from all these
three cultures used hair dyes for instance. These people used herbal
concoctions with components like henna, sage and chamomile to darken their
hair. It was only in the renaissance period that blonde hair became
fashionable.
Although cosmetics products have undergone many changes in modern
times, the basic concept of using cosmetics to enhance the features of good
health has not changed. For instance, blush-on is used to conceal pale
present a picture of rosy cheeks as oozed to pale skin and nail polish can be
used to conceal brittle or dry nails. The history of make-up cosmetics
however is tarnished by the ill-effects that were often experienced after
applying many ancient make-up products. This was because many such
products were created using dangerous components and also because
cleansing lotions are not anywhere to be found in the early history of
cosmetics.
History of cosmetics products in India
The history of the cosmetics industry includes very dark chapters in European
and Western countries from about six centuries back. Moistures and pastes
were then used to whiten the face, a practice which remained popular till
over four hundred years later. The early mixtures that were used in Europe
for this purpose were so potent that they often led to analysis, strokes of
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death. In that eras, another method that was employed to make the skin
appear fairer was to bleed oneself using leeches.
Up to the late nineteenth century, women in Western countries may have
secretly worn make-up made from moistures of household product, as make-up was then deemed the domain of film stars. Cosmetics were only openly
put up for the early art of the twentieth century for the first time. Tanned or
darker skin tones became popular only as late as the early twentieth century.
It was in this era that tanning the skin became a popular fad.
The history of cosmetics in the 1930s and 1940s shows how the fashion or
trend with respect to lipstick colors was changed annually, getting darker and
closer to red every passing year.
Cosmetic products were once the sole domain of film personalities and stage
actors. The use of cosmetics in those eras was restricted to the purpose of
creating a dramatic effect.
However, with the passage of time, women started using cosmetics to
highlight their facial features as well. In India beet root was used to redden
the cheeks, while in Western countries, certain chemicals were used to
darken the hair. Finally, because of the world-wide demand for make-up for
the average person, cosmetics finally became available for sale to the
common man. Some common cosmetics include lipsticks, blush-on or rouge
as it is sometimes known, eyeliners, mascaras, foundation and eye shadows.
Lipsticks are made using color pigments, oils, waxes and often fragrances as
well. Different cosmetic companies also add various other substances to
create other effects with lipstick. The oldest use of lipstick can be traced back
to almost five thousand years age, when women of the Mesopotamian cultureand of the Indus valley civilization are believed to have crushed semi-
precious stones and mixed them into a paste to apply to the lips for added
color. Through the centuries, lipstick remained popular with women of
different cultures and while some ancient lipstick-manufacturing techniques
employed the use of potent and toxic chemicals, others used vegetable or
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animal extracts. Today, a wide range of lipsticks are available in the cosmetic
market to cater to the various needs of the consumer. There are organic and
natural lipsticks as well as lip-gloss and lip pencils which come in a wide
variety of colors to suit a huge spectrum of skin tones. Worldwide, lipsticks
are the most popular cosmetic in the cosmetic market today.
Perfume is another popular cosmetic product. It is fragrant moisture made
using various oils and aromatic compounds. Usually every perfume
manufacturer keeps the exact combination of ingredients a secret, especially
in the case of perfumes that are manufactured by large brand names. Today,
the perfume manufacturing business is so huge that many celebrities
participate in the industry by endorsing certain perfumes. Celebrities even
take advantage of their own popularity by releasing perfumes christened with
their own names.
Tough or blush-on is a cosmetic which is used to redden the cheeks. In
ancient times, women reported to inching their cheeks, or using the extracts
of mulberries, beetroot or other such extracts to color their cheeks and
acquire a healthy look. Typically women use this product to highlight
cheekbones but newer make-up technique involves using rouge to add color
to the pale of ones cheeks. Rouge is available as pressed powder or as a
cream-based paste.
Eye liner is used to emphasize the shape of the eyes. Today there are many
kinds of eyeliners like liquid eyeliners, or kohl and kajal, all of which can be
used to create different effects and looks, smoky eyes and the gothic look
are in vogue nowadays and these looks can be created using kohl over and
under the eye with metallic gold or silver eye shadow.
Scope of the study
The Indian cosmetic industry has witnessed rapid growth in the last couple of
years, growing at a CAGR of around 7.5% between 2006 and 2008. With
improving purchasing power and increasing fashion consciousness, the
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industry is expected to maintain the growth momentum. It is projected to
have wide scope and growth prospects in this industry.
Increase in the demand of beauty products---- from the last
few years the demand of beauty products in India has beenincreased in a good speed. Not only women but men are also very
conscious towards their face and other personal care. Many
companies are engaged in producing products according to them.
So, the market is seeking to be very bright.
A Large Rural Urban Penetration--- The penetration ratio in
rural market is very challenging and prospective. So, there is a
good scope in these areas.
Opportunity in Semi-Urban Market--- There is a good
opportunity of cosmetics products in the semi urban market. The
people Are looking towards a good brand name and quality within
them.
An Untapped Rural Market--- There is an untapped market
available for cosmetics product in the rural area in India. It is an
awesome opportunity for these companies.
Need of the Study
The study is done for getting a deep knowledge and idea about Indian
cosmetic personal care sector. The need or objective of the study is to know
that how much consumers give references to the brand of cosmetic good
whether the customers are satisfied with the cosmetics product of the
company and how far the company is able to satisfy the customer in terms of
quality and cost factors since in todays modern era customers are the focus
for any company, any organization that without satisfying them no companycan survive in this global competitive age. Non satisfaction of the potential
customers can lead them to switch over to another one. Now the policy in
every company or organization is to provide satisfaction as there exists a lot
of competition for them. Hence it becomes necessary to conduct a
comprehensive research in terms of customer satisfaction so that is able to
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know how far it stands before others. This also helps to judge whether if
there is any lag in the policy and could take immediate action to rectify it.
The need of this project also arose because an extensive survey can help the
company whether the work done by the company in the area of new productsis able to satisfy the customers or not. The major focus of the research
conducted therefore is to discover the factor that people are aware about the
upcoming new products and attribute of the product which attracted them for
a trial. The study was restricted to only around 50-60 percent of our target
audience, because the respondents included in the study are people who are
regular user of cosmetic goods.
MAJOR COMPANIES OF PERSONAL CARE SECTOR
In India, there is a complete range of cosmetic companies. It includes
regional companies, national and MNCs. Hindustan Unilever leads the
companies which are followed by Godrej consumer care, Procter & Gamble,
Emami, Dabur and Calvin Care. A broad list of these companies has been
given below
1. HUL(Hindustan Unilever Ltd.)
2. GODREJ CONSUMER CARE
3. Emami
4. ITC
5. DABUR
6. PROCTER & GAMBLE
7. CALVIN CARE
8. HANKEL INDIA LTD
9. MARICO
10.RECKITT BENCKISER (INDIA) LED
11.COLGATE PALMOLIVE PVT. LTD.
12.CHOLYIL PVT. LTD.
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13.J.K HELEN COUTIES LTD
14.J L MORISON INDIA LTD
15.MODI RAVLON LTD
1, HUL(Hindustan Unilever Ltd.)
Hindustan Unilever Ltd. has takes first position in the cosmetic productselling in India. Every one out of two peoples uses the product of HUL. There
is a wide range of varity of products of HUL in India.
Product Line (cosmetics):
Lux, Lifeboy, Hamam, Liril, Breeze, Dove, Pears, Rexona, Fair & Lovely,
Ponds, Vasaline, Avience, Sunsilk, Clinic, Axe, Ayush, Lakme, Surf exel, Rin,Sunlight, Wheel, Close up, Pepsodent
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2, GODREJ CONSUMER PRODUCTS LTD.
Godrej Consumer Care is one of the biggest company in the field of FMCG
business. Every one out of three Indian uses the product of Godrej. It also
has wide verity of cosmetic product.
Product Line (Cosmetic):
Cinthol, Fair glow, Evita, No. 1, Vigil, Shikakai, Colour soft, Nuur(mehandi),
No.1, power hair die, Renew (hair colour), Cinthol (shampoo, deo, talc,
Saving gel, Ezee)
3, Emami
Product Line (Cosmetics):
Boro Plus, Fair & Handsome, Fast Relief, Hair Life, Malai kesar Cold Cream,
Navratna Oil(Oil, Lite, Extra Thanda, Cool talc) Baby massage oil.
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4, ITC
Product Line (Cosmetic):
Essenja De Wills, Inizio, Femme, Fima(5 varities), Vivel, Sueria
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5, DABUR:-
Product Line (Cosmetic):
Amla hairoil, Amla light oil, Vatika, Anmol sarson Amla, Gulabary, Crme,
Lotion.
6, P&G
Product Line (Cosmetic):
Pantene, Head & Shoulders, Gillette, Safeguard, Zest, Old Si Olay,
Aussie(shampoo)
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7, Marico
Product Line (cosmetic):
Parachute, Medikar, Hair & Care, Santi Amla, Nihar Cemelia, Kaya Lite, Kaya
Skin Care, Aromatic.
8, CALVIN CARE
Product Line (cosmetic):
Chick, Nyle, Indica, meera badam shampoo, Karthika, Fairever, Sinz(talk &
deo.), nyle cold cream.
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OTHER COMPANIES
There are other companies engaged in the business of cosmetics products.
Including them some are the multinational companies like- Loreal, RECKIT
BENCKISER(INDIA)LTD etc. and as well as some local giants which are
performing much better job in the cosmetic sector like-Hankel, Nirma, etc.
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COMPETITION AMONG MAJOR COMPANIES
There is a huge competition among the companies working in the personal
care segment of FMCG industry. HUL is leading the market in many segments
from last couple of decade. But right now it is facing a good competition fromthe other existing companies like P&G, Marico, Godrej Consumer Care Ltd,
Dabur etc. A full data of these company and there market share is giving in
the following table
COMPANIES SHAMPOO
(%)
SOAP
(%)
DETERGENT
(%)
SKINCARE
(%)
TOOTH-
PASTE
(%)
HUL 44.7 47.5 36.8 47.2 28
P&G 24.3 - 14.2 4.4 -
DABUR 6.1 - - 5.3 10
ITC 6.0 10.2 9.0 3.0 -
GCPL 5.5 10.3 - 2.1 -
EMAMI - - - 15.4 -
CALVINCARE
5.2 5 - 12.7 -
MARICO 3.9 4.7 - 9.9 -
COLGATE - 6 - - 50.1
OTHERS 4.3 16.3 40 - 11.9
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PIE CHART SHOWING SECTORAL PERFOMANCE-COMPANY WISE
The countrys largest market of home and personal care products, HUL, has
lost market share by value over the five quarters ended 31 March 2010, the
erosion cutting across key categories such as soaps, shampoos, toothpastesand skin creams, even as the broader market expanded significantly.
HUL lost considerable market share in soaps, detergents and shampoos that
contribute three-quarter of its sale, securities house DSP Merrill Lynch Ltd
said in a recent report, citing data from market research firm AC Nielesen.
Market share for soaps, detergents and shampoos declined to 47%, 36.8%,
and 44.7% in the three months ended March, from 53.4%, 38.9% and
46.3% respectively, in the January-March quarter of 2009. In some
categories such as tea and coffee, HUL expanded its market share
marginally. In tea, for instance, its share rose to 23% from 22.6%.
In soaps, the companys market share dropped in each of the five quarters
even as the overall soaps market, according to ACNielsen, grew 18% in the
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year to Rs7,967 crore. HULs soaps portfolio includes popular brands such as
Dove, Lux, Hamam and Breeze.
Discount brands such as Godrej No.1 and Santoor have been gaining share
from HULs Breeze and Lux, said Indian Infolines Nagwekar.
Godrej No.1 is a product Godrej Consumer Products Ltd (GCPL) and Santoor
is made by Wipro Consumer Care and Lighting, a unit of Wipro Ltd.
HULs market share in the laundry segment grew to around 37.8% in the
quarter ended June from 35.5% in the same period last year, according to
the market research firm ACNielsen. However, this time, the increase was
not at the expense of price war with its multinational rival Procter & Gamble
Co. P&G also gained 0.5 percentage points, up to a 7.6% share. Nirma Ltd,
the Ahmedabad-based manufacturer, however, saw its market share decline
by 1.7% point to 13.5%. Wheel, a value brand that, according to Vats
contributes around 50% of HULs laundry segment revenues, increased its
market share by 2% points in the same period, with a total share of about
18%. Laundry has been an attractive segment in the past and is likely to
keep growing in the near future. The recent price war between companies led
to erosion in their profitability but now, the industry is stabilizing.
According to Vats, the laundry business is witnessing a surge in demand from
cities and HUL is focusing on Tier I and II cities to tap that demand.
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RESEARCH METHODOLOGY
Research problem: To study Perception and buying behavior of modern
consumer for personal care products.
Data source: Survey approach.
Research methodology: Descriptive and Analytical approach.
ResearchInstruments: Questionnaire.
SAMPLING PLAN
Sample:- Malls, Super Market, General area.
Sample size:- 275.
Primary data:- Questionnaire and Interview.
SAMPLE
While deciding about the sample of research, it is required from the
researchers point to pay attention to these under mentioned points:
a) Sample Units: A decision has to be taken concerning a sampling unit
before selecting a sample, sampling unit may be a geographical one such as
state, district, village Etc. Here it is Malls, Super Market, General area.
b) Sampling size: This refers to the no. of items to be selected from the
universe to constitute a sample. This is a major problem before the
researcher. The size of sample should neither be excessively large not too
small, it should be optimum. This size of population must be kept in view for
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this also limits the sample size. Questionnaire was distributed to 300
respondents out of which 280 were received, and 5 were incomplete which
are not considered in this analysis. So Sample size in this research is 275
customers.
c) Sampling procedure: Finally the researcher must decide the type of
sample. That is he must be deciding about the technique to be used in
selecting items for the sample. In fact, this technique or procedure stands for
the sample design itself. In this we used the random sampling on the basis of
first survey results, which is from 275 respondents.
INSTRUMENTS USED
I collected primary data through sample survey from the selected elements
in malls, super markets and general area. So for this purpose we have used
the most popular tool of primary data collection through direct
communication with respondents. The tools we used are questionnaires.
Source of data: Data required for the study was collected through primary
sources i.e. Market Survey.
METHOD OF DATA COLLECTION
Actually data is of two kinds so researchers should keep in mind both types
of data.
a) Primary Data: Primary data are those, which are collected afresh and
for the first time and this happen to be original in character.
b) Secondary Data: Secondary data are those data which have already
been collected by someone else and which have already been used as per
required.
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There are basically two sources to collect secondary data
a) Internally: Provided by the company/organization
b) Externally: Various publication center, state and local Government, books,
magazines, newspaper, Internet.
After only keeping in mind one can think about what type of data has to be
collected during research as our research is concerned we have to gather
primary data for Customer behavior
QUESTIONNAIRE
This method is more popular. The questionnaire is sent to the person
concerned to answer the question formatted and return back.
A Questionnaire consists of a number of questions printed or typed in definite
order on a form or set of forms. The Questionnaire is sent to the
respondents. In order to achieve the research objective it is necessary to
collect accurate and relevant data, secondary data are already published data
collected for purpose other than the specific research needs at hand.
Primary data that are collected specifically for the research situation at hand,
were collected by surveys, using respondents surveys is one of the ways of
collecting primary data namely observations, experiments and surveys.
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DATA ANALYSIS
TABLE 1:- Income of Respondents
Criteria No. of Respondents Percentage (%)
Below 100000 p.a 49 18
Rs.100000 to 200000 p.a 81 29
Rs. 250000 to 500000 p.a 90 33
Above Rs. 500000 p.a 55 20
Total 275 100
Interpretation:-
The above data shows the different Income levels of respondents. Majority of
respondents have the income between Rs. 100000 to Rs. 500000.
0
5
10
15
20
25
30
35
Below
100000 p.a
Rs.100000 to
200000 p.a
Rs. 250000 to
500000 p.a
Above Rs.
500000 p.a
18
29
33
20
Income of Respondents
Percentage
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TABLE-2 SHOPPING HABIT OF CONSUMERS FOR PLACE
Criteria No. of Customers Percentage
Super market 58 21
Mall 132 48
Traditional shop 69 25
e-shopping 16 6
Total 275 100
Interpretation:-
The above data shows the different habits of consumers during they are on a way to
purchase the products. There was a time when consumers use to go only to the one
or two store available in a area. They purchase only those things which the retailer
gives them. At the time, the consumers had very limited choice due to unavailabilityof more retail stores in a area. But now a days there is a bunch of availability of
super market, malls, and different ways to shopping. At the present time, 21% of
people go to a super market,48% of persons go to malls, 25% goes to same old
traditional stores, Remaining 6% peoples deals with e-shopping.
0
10
20
30
40
50
Super market Mall Traditional
shop
e-shopping
21
48
25
6
SHOPPING HABIT OF CONSUMERS
Percentage
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TABLE-3 DURATION BETWEEN SHOPPING
Criteria No. of Customers Percentage
Weekends 30 11
15-20 days 135 49
Monthly 96 35
Rarely 14 5
Total 275 100
INTERPRETATION:-
The above table shows the shopping durations of people for purchase of
cosmetic products. Basically shopping duration depends upon the size and
weight of the product. But generally, majority of people purchase these
goods on the duration of 15 to 20 days. At the present time 49% of thepeople goes to purchase the products at duration of 15 to 20 days. At the
same time 35% of the consumers goes to purchase the cosmetic products at
a duration of a month, these people contains the common general people.
11% people goes to purchase a cosmetic product at a duration of a week.
0
10
20
30
40
50
Weekends 15-20 days Monthly Rarely
DURATION BETWEEN SHOPPING
Percentage
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These are very beauty conscious peoples. At last remaining 5% people rarely
purchase these cosmetics product.
TABLE 4: AMOUNT SPEND ON COSMETIC PRODUCTS PER MONTH
Criteria No. of Customers Percentage
Rs 1000- Rs. 2000 69 25
Rs 2000- Rs 4000 135 49
Rs 4000- Rs 6000 44 16
Rs 6000 and more 27 10
Total 275 100
INTERPRETATION:-
The above table shows the amount for shopping used by customers. Majority
of customers are using Rs. 2000 to Rs 4000 per month for shopping of
personal care products
0
10
20
30
40
50
Rs 1000- Rs.
2000
Rs 2000- Rs
4000
Rs 4000- Rs
6000
Rs 6000 and
more
Amount Spend on Cosmetics
Percentage
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TABLE 5: BRAND CONCIOUSNESS OF PEOPLE
Criteria No. of Customers Percentage
Yes 132 48
No 124 45
For Some Products 19 7
Total 275 100
Interpretation:
The above table shows the brand consciousness of the common consumers.
On the basis of above table, at the present time there are 48% people are
brand conscious 45% consumers are not brand conscious and remaining 7 %
people are bran conscious for only few brands.
0
10
20
30
40
50
Yes No For Some
Products
4845
7
Brand conciousness
Percentage
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TABLE 6:- SATISFACTION WITH THE BRAND AVAILABILITY
Criteria No. of Customers Percentage
Yes 179 65
No 96 35
Total 275 100
INTERPRETATION:
The above table shows the brand satisfaction of customers. 65% ofcustomers are satisfied with the brands while 35% of customers are not
satisfied.
0
20
40
60
80
Yes No
65
35
Brand satisfaction
Percentage
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TABLE 7:- PREFERENCE OF DIFFERENT BRANDS (COUNTRY WISE)
Criteria No. of Customers Percentage
National brand 151 55
International brand 93 34
Local 31 11
Total 275 100
Interpretation:-
The above data table shows the reference of consumers towards different
brands of cosmetic products on the basis of country. 55% of consumers refer
the brands of different national companies. The main reason is less price and
relatively good quality. 34% consumers refers the brands international
companies or imported products. These consumers contains models,
relatively price people, professional etc. last 11% consumers refers local
goods.
0
10
20
30
40
50
60
National brand Internationalbrand
Local
55
34
11
Preferences of brand
Percentage
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TABLE 8:- BASIS OF PURCHASE
Criteria No. of Customers Percentage
Price 50 18
Quality of Product 104 38
Availability of Product 38 14
Brand name of Company 55 20
Advertisements 28 10
Total 275 100
Interpretation:-
The above table shows the basis of purchase of cosmetic products by
consumers. 38% of consumers looking for a good quality, 18% consumers
are price conscious. Generally they are looking for a discount. 14%
consumers purchase those goods which are easy available in the nearest
market.20% consumers are purchase the goods on the basis of brand name
of the company and remaining 10% purchase on the basis of advertisements.
05
10152025303540
18
38
14
20
10
Criterias for product
Percentage
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TABLE 9:- MOST PREFERD COSMETIC COMPANY
Criteria No. of Customers Percentage
HUL 88 32
P&G 66 24
ITC 49 18
Dabur 44 16
other MNC 28 10
Total 275 100
Interpretation:-
The above table shows the demand of the major companies which engaged
in the business of cosmetic products. At the present time, HUL remains to in
this list with 32% of market demand due to its wide product range and verity
of different segments. P&G occupies second position with the market size of
24%. 18% of the products of ITC is demanding by consumers due to a good
response of Fiama De Willis and Vivel. At the present time 16% of the
different product of Dabur has been demanded by consumers. Last 10% of
the consumers are looking for the product of a MNC.
0
5
10
15
20
25
30
35
HUL P&G ITC Dabur other
MNC
32
24
1816
10
Most referred company
Percentage
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TABLE 10:- CHARACTERISTICS ATTRACTING CUSTOMERS CHOICE
Criteria No. of Customers Percentage
Brand name 55 20
Price 60 22
Quality 105 38
Packaging 55 20
Total 275 100
Interpretation:-
The above table shows the different characteristics attract the customers,
20% customers are attracted due to brand name, 22% are attracted towards
price, and 38% are attracted for quality of product and 20% for packaging
0
10
20
30
40
Brand name Price Quality Packaging
2022
38
20
Preference of characteristics
Percentage
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TABLE 11:- PREFERENCE FOR SUBSTITUTE PRODUCTS
Criteria No. of customers Percentage
Yes 165 60
No 110 40
Total 275 100
Interpretation:-
The above table shows that 60% of customers are not interested to change
their brand while 40% of customers are ready to change their brand if they
get a better product.
0
10
20
30
40
50
60
Yes No
60
40
PREFERENCE FOR SUBSTITUTE PRODUCTS
Percentage
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LIMITATIONS
However, I conducted the survey with full sincerity and commitment to
ensure that the research process is unbiased,Still there are few limitations to the research being conducted.
The sample size was restricted to 275 for customers only, due to
limited resource in terms of time.
The research was done for the academic purpose and not done as a
professional researcher of the company.
There can be a potential effect of non-response.
In addition, the geographic area was limited to Vadodara only.
The findings and analysis depends on the responses being given by
the Respondents .Authenticity, reliability of the same cannot be
checked and validated, and hence, it limits my researchs accuracy.
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PROBLEM IDENTIFICATION
As per the survey, it has found that 60% ofcustomers are not interested to change their brand.This can be a problem for company to attract suchbrand loyal customers.
Majority of Customers prefer National Brands, sobeing an MNC its difficult for the company to
initialize/introduce their products in Indian market.
Maintaining good quality product at lower prices isdifficult.
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SUGGESTIONS
1. QUALITYCustomers are the prime focus for every Organization. Customers arealways looking for better quality, so quality of product should be
maintained and immense care should be taken from the buyers
viewpoint. The company should modernize and have to remain innovative
in this era.
2. PRICE CONSISTENCY
Customers look for consistency and stability, to maintain long-term
relationship. We need to understand this aspect. This requires us to be
consistent and stable in terms of pricing policies. The company should add
latest technologies and formulas to be economical in pricing, so that it can
be benefitted both the ways.
3. ADVERTISEMENTSThe respondents are more inclined towards Packaging and Ease of
Availability company should focus on making the customer more aware of
the brand by providing better Visibility to the product at the point of
purchase. Main emphasis of the campaign should be on Price and Quality.
Company should do more publicity through road shows, newspaper and
advertisement. As this will create awareness about the companys product
and its compatibilities. Hoardings and banners at the road-side would also
be a better option.
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4. BETTER COMMUNICATION
Proper communication should be made to the Customers that the
company is providing them with the best service and a good Product as
per industry standards. After sales services is the area where company
can highly satisfy the existing customer, because they can make more
customer through their word of mouth. So Company should provide latest
and reliable service to their customers. Still there are efforts to be made
in the direction of people preferring the herbals and ayurved products.
5. UPCOMING OPPORTUNITYThere is an upcoming opportunity awaiting us, when the Promotional
Schemes of various other competitors come to an end. We should try to
cash on this opportunity fast as it can lead to high sales volumes
Also, we can promote more of our product by bundling with another
product as a scheme. This would help both the products and increase both
the mind share and the overall market share.
Customers behavior always looks for some extra benefit with purchasing.
They demand for affordable price and gifts with purchasing
6. COMPETITORS STRATEGYCompany should keep a close eye on competitor strategy. Must be
aware of competitors decisions, new product launching, new schemes,
etc.
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CONCLUSION
This research has shown the comparison between customer buying behavior
regarding Indian and International product in recent time. Since the
consumer buying behavior is the important factor to forecast the sales of any
product in a particular area. So company should keep close eye on the
market situation. Yet, customer were price sensitive, but the changing
market trend and customer view and reference shown that customer are now
quality sensitive. They want quality product, good service, easy availability of
product and better performance by product.
These days no of customer buying from malls has been increased. Also the
frequency to visit the malls has been increased substantially. People are
more brands conscious and they are satisfied with the range of product
available there.
Customer like best quality product on any price, so company now a days
add latest technology to their products. Companies are focusing on customer
requirements and satisfaction. Company can target those customers which
are ready to switch to other brands.
Customers behavior always looks for some extra benefit with purchasing.
They demand for affordable price and gifts with purchasing
Customer
Satisfaction
Quality
ValueService
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International company should make strategy to cater every income group
customers in city. Upper income group are affordable to purchase but lower
income group is not. So International Company should make policies to send
their product and every home.
We can conclude from our study that still more inclination is towards
indigenous product the reference ratio of indigenous to imported product is
7 : 3. This is because of the relative higher price of imported product.
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BIBLIOGRAPHY
News Paper:- The Economic Times.
Business Standard.
Journals:- Business World, Business Today.
Website:- www.wikipedia.com
www.fmcgmarketers.blogsot.com
www.a2zmba.com
marketing.about.com
Book:- Philip Kotler, Principle of Management
Khothari C R, Research Methodology
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QUESTIONNAIRE
I request you to fill the questionnaire. This questionnaire will be utilized onlyfor my study purpose. I request you to give frank opinion in this
questionnaire. The information given by you will be kept strictly confidential.
Name:- _____________________
Address:- _____________________
Occupation:- _____________________
Age:- _____________________
1) What is your annual income?
a) Below 100000 p.a
b) Rs.100000 to 200000 p.a
c) Rs.250000 to 500000 p.a
d) Above Rs. 500000 p.a
2) Where do you like to go for shopping?
a) Super market b) Mall
c) Traditional shop d) e-shopping
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3) How many times you like to visit this place for purchasing
cosmetics products?
a) During weekends b) Monthly
c) 15-20 days d) Rarely
4) How much amount you spend on cosmetic products every month?
(Please select anyone)
a) Rs 1000- Rs. 2000 b) Rs 2000- Rs 4000
c) Rs 4000- Rs 6000 d) Rs 6000 and more
5) Are you brand conscious?
a) Yes b) No c) For some products
6) Are you satisfied with the variety of brand availability in the
market?
a) Yes b) No
7) If yes, what do you prefer?
a) National brand
b) International brand
c) Local
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8) Please rank the following factors which influence your purchasing
decision.
(Rank from 1-5, considering 1 as high and 5 as low)
1. Price2. Quality of Product3. Availability of Product4. Brand name of Company5. Advertisements
9) Which companys cosmetic brand you refer much more?
a) HUL b) P&G
c) ITC d) Dabur
e) Other MNC
10) Which character attracts your choice?
a) Brand name b) Price
c) Quality d) Packaging
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11) If new substitute products are available with more added
features as compared to your brand company, will you decide to
purchase that?
a): Yes b): No
If yes, then what features you will be looking for in new product?
12) Any suggestions/complains about existing products/services youare using:
_______________________________________________________
____________
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