PERCEPTION AND BUYING BEHAVIOUR OF MODERN

CONSUMERS TOWARDS PERSONAL CARE PRODUCTS

PROJECT REPORT

Prepared by

PRAVIN TRIPATHI (PGDM 2ND YEAR)

INSTITUTE OF MANAGEMENT EDUCATION
GHAZIABAD.
 DECLARATION

I am the students of PGDM of INSTITUTE OF

MANAGEMENT EDUCATION, SAHIBABAD, Ghaziabad,
2008-10 batch, hereby declare that the Project Report
titled PERCEPTION AND BUYING BEHAVIOUR OF
MODERN CONSUMERS TOWARDS PERSONAL CARE
PRODUCTS is the outcome of my own work and the
same has not been submitted by any Institute for the
award of any degree or any Professional diploma.

Date:

----------------------------

PRAVIN TRIPATHI
 ABSTRACT

The first and most objective of my study is comparative study of

perception and consumers buying behavior regarding personal care products. The
study of consumer behavior is the most important factor for marketing of any
goods and services. The consumer behavior suggest how individual, groups and
organization select, buy, use and dispose of goods, services, ideas or experience
to satisfy there needs and wants. It also clues for improving or introducing
products or services, setting price, devising channels etc.

Since liberalization 100% FDI is allowed in India. This has attracted

foreign companies to penetrate the Indian market. The marketers always look for
emergent trends that suggest new marketing opportunities and here in India a lot
of opportunities are available.

The personal care sector is one of the best and important sector at the
present time. There is a lot of future opportunity in this sector. The increasing
trend of different cosmetic products, beauty care products, skin care products,
hair care products etc fuels the market growing opportunity for cosmetic
products.
 From the last couple of years, the demand of personal care products is
not only increase in only women but also it increase in men.

e.g- Himani Fair and Handsome-mardon wali fairness cream. Like that there
are much opportunities has been arise and change is made in consumers
perception.

ACKNOWLEDGEMGNT

This Project Report is the fruit of my intense hard work and

dedication during our project work. I wish to express my sincere

gratitude to my friend Karamjeet Pratap Singh for his esteemed

suggestions during the course of project work. I am grateful to Mr. Nitin

Kochhar for giving me an insight into the realm of Buying consumer

Behaviour on National and International product . In spite of his busy

schedule, he was always available whenever I required help .

CONTAINS ;-

CHAPTER PAGE NO.

1. Introduction .01
2. Major companies of personal care sector.. 08
3. Literature review.20
4. Research methodology23
5. Data Analysis..28
6. Conclusion and suggestion..39
 CHAPTER - 1
INTRODUCTION
INTRODUCTION :-
Generally, a personal care products are these products which a consumer uses
for his personal purpose. It includes different types of cosmetic and skin care products like talc,
cold cream, fairness cream, toothpaste, 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 need for these products every day.

Personal care products are a part 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 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
cosmetic 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 and 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 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 India competitors have begun to
manufacture products to cater to an International need. For instance, 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 cosmetic products 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 television and a wide array of television channels as
well as the Internet, the average Indian consumer is constantly bombarded with 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 products, statistics
have shown that the average Indian consumer spends much less on cosmetic products than
consumers from every other part of the world. This means that the Indian cosmetic industry has
an even greater potential for growth than it is presently experiencing.

In the entire range of products that fall within the territory of the Indian cosmetic and
toiletries market, the most popular items are color cosmetics, of which nail varnish, lipsticks and
lip glosses account for the most sales. In this area, popular local brand names include Lakme and
Revlon. Skin-care cosmetics have experienced a slower growth and products such as anti-
wrinkle 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
the roost in this segment.

Few cultures valued beauty and cosmetic 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 blond hair became fashionable.

Although cosmetic 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 opposed to pale skin and nail
polish can be used to conceal brittle or dry nails. The history of makeup 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 cosmetic products in India:-

The history of the cosmetics industry includes very dark chapters in European and
Western countries from about six centuries back. Mixtures 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 paralysis, strokes
or death. In that era, 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 mixtures of household products, as make-up was then deemed the
domain of film stars. Cosmetics were only openly put up for sale in the early part 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 beetroot 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, foundations 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 ago, when
women of the Mesopotamian culture and 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 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 a fragrant mixture 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.
 Rouge or blush-on is a cosmetic which is used to redden the cheeks. In ancient times,
women resorted to pinching 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 techniques involve using rouge to add color to the
apple of one's cheeks. Rouge is available as a 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 industry is expected to maintain the growth
momentum (with marginal slowdown due to economic slowdown) during our forecast period
(2009-2012). It is projected to grow at a CAGR of around 7% during the forecast period, says
'Indian Cosmetic Sector Analysis (2009-2012).

Increase in the Demand of Beauty products.--- from the last few years,
the demand of beauty products in India has been increased 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 the 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 MarketThere is a good opportunity of
cosmetic products in the semi urban market. The people are looking towards a good
brand name and quality within them.
An Untapped Rural MarketThere is an untapped market is available for
cosmetic products in the rural area in India. It is a 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 the how much
consumers give preferences to the brand of cosmetic goods whether the customers are satisfied
with the cosmetic products 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 company can survive in this
global competitive age. Non satisfaction of the potential customers can lead them to switch over
to another one. Now the policy 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 it is able to 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 products is able to satisfy the
customers or not. The major focus of the research conducted therefore is to discover the factors
that people are aware about the upcoming new products and the 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

Objective 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.
 CHAPTER 2
MAJOR COMPANIES OF
PERSONAL CARE SECTOR
MAJOR COSMETIC COMPANIES(WORLD WIDE)
Company:

1. LOral

2. Procter & Gamble

3. Unilever

4. Este Lauder

5. Shiseido

6. Avon

7. Beiersdorf

8. Johnson & Johnson

9. Alberto-Culver

10. Henkel

11. Kao

12. Limited

13. LVMH

14. Colgate-Palmolive

15. Kanebo

16. Coty

17. Yves Rocher

 18. Mary Kay

19. Kos

20. Alticor

MAJOR INDIAN COSMETIC COMPANIES:-

In India, there is a complete range of cosmetic companies.it includes regional

companies, national and MNCs. Hindustan Unilever leads the companies which is followed by
Godrej consumer care, Procter & Gamble, Emami, Dabur and Calvin Care. A broad list of these
companies has been given below :-

1. HUL
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) LTD.
11. COLGATE PALMOLIVE PVT. LTD.
12. CHOLYIL PVT.LTD.
13. J.K.HELEN COUTIES LTD.
14. J L MORISON INDIA LTD.
15. MODI RAVLON LTD.

1. HUL (Hindustan Unilever Ltd.)

 CEO ;- Nitin Pranjape.
Hindustan Unilever Ltd. Has takes first position in the cosmetic products selling in
India. Every one out of two peoples uses the products of HUL . There is a wide range of varity
of products of HUL in India.

Product Range (Cosmetic):-

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,Pesodent

2. GODREJ CONSUMER PRODUCTS LTD.

CEO :- Adi Godrej.

Godrej Consumer Care is one of the biggest company in the field of FMCG
business. Every one out of three Indians uses the product of Godrej. It also has a wide verity of
cosmetic products.

Product Range (Cosmetic):-

Cinthol, Fair glow, Evita, No. 1, Vigil, Shikakai, Colour soft, Nupur(mehandi), No.1, Powder
hair die, Renew (hair colour), Cinthol (shampoo,deo,talc, Saving gel, Ezee
3.EMAMI
CEO:- N.VENKAT.
Product Range (Cosmetic):-

Boro Plus, Fair &Handsome, Fast Relief, Hair Life, Malai Kesar Cold Cream, Navratna
Oil(Oil,Lite, Extra Thanda, Cool Talc) Baby massage oil,
44. ITC
CEO :- Y.C.Deveswer

Product Range (Cosmetic):-

Essenja De Wills, Inizio, Femme, Fima(5varities), Vivel,Superia

5,DABUR :-
CEO:- Sunil Duggal.

Product Range (Cosmetic):-

Amla hair oil., Amla light oil, vatika, anmol sarson Amla,Gulabary,Crme, lotion,
6.P&G
CEO ;-A.J.LAFELY

Product Range (Cosmetic):-

Pantene, Head & Shoulders, Gillette, Safeguard, Zest, Old Spi Olay, Aussie(shampoo),

7.Marico
CEO:- Saugat Gupta
Product Range (Cosmetic):-

Parachute, Medikar, Hair & Care, Santi Amla, Nihar Cemelia, Kaya Lite, Kaya Skin Care,
Aromatic,
8. CAVIN KARE
CEO:- C.Ranganathan
Product Range (Cosmetic):-

Chick, Nyle, Indica, meera badam shampoo, Karthika, Fairever, Spinz(talk&deo.),nyle cold
cream
OTHER COMPANIES :-

There are some other companies engaged in the business of cosmetic products.
Including them, some are the multinational companies like- Loreal, RECKITT
BENCKISER (INDIA) LTD etc. and as well as some local giants which are perform much
better job in the cosmetic sector like-Hankel, Nirma, etc.

COMPETITION AMONG MAJOR COMPANIES:-

There is a huge competition among the companies working with 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 from the other existing companies like
P&G, Marico, Godrej Consumer Care Ltd., Dabur etc. A full data of these companies and there
market share is given in the following above table.

TABLE 1 :- MARKET SHARE OF DIFFERENT FMCG COMPANIES IN THESE SECTORS.

COMPANIES SHAMPOO SOAP DETERGEN SKINCARE TOOTHPASTE

(%) (%) T (%) (%)
(%)
HUL 44.7 47.5 36.8 47.2 28

P&G 24.3 - 14.2 6.4 -

DABUR 6.1 - - 5.0 10

ITC 6.0 10.2 9.0 6.0 -
GCPL 5.5 13.3 - 2.1 -
EMAMI - - - 15.4 -

CAVIN 5.2 5 - 12.5 -

KARE
MARICO 3.9 4.7 - 9.9 -
COLGATE - 6 - - 50.1
OTHERS 4.3 8.2 45 11.9
PIE CHART SHOWING DIFFERENT COMPANIES
PERFORMANCE IN DIFFERENT SECTORS:-

DETERGENTS
SOAPS
HUL; 37%
OTHERS; 49%
OTHERS; 43% HUL; 48%
P&G; 14%
GCPL; 10%

SHAMPOO SKIN CARE

MARICO; 12% OTHERS; 15%
CAVIN CARE; 15% MARICO; 10%
HUL; 56% HUL; 47%
EMAMI; 18% CAVIN CARE; 13%
EMAMI; 15%

The countrys largest maker of home and personal care products, Hindustan Unilever
Ltd (HUL), has lost market share by value over the five quarters ended 31 March2009, the
erosion cutting across key categories such as soaps, shampoos, toothpastes and skin creams, even
as the broader market expanded significantly
 HUL lost considerable market share in soaps, detergents and shampoos that contribute
three-quarters of its sales, securities house DSP Merrill Lynch Ltd said in a recent report, citing
data from market research firm ACNielsen.

Market share for soaps, detergents and shampoos declined to 47.5%, 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 2008. 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
soap market, according to ACNielsen, grew 18% in the year to Rs7,967 crore. HULs soap
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 India Infolines Nagwekar.

Godrej No.1 is a product of 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 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 dip by 1.7% percentage
points 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 percentage 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, says Unmesh Sharma, an analyst at
Macquarie Securities here.

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.
 CHAPTER 3
LITERATURE REVIEW
LITERATURE RIVEW
Indian cosmetic industry is one of the profitable and stable sector. There is a bright
and golden opportunity in this sector. Many of the scholars, research agencies has done their
research on this sector and given their own different views and suggestions.

The global outlook series on Personal Care Products provides a collection of

statistical anecdotes, market briefs, and concise summaries of research findings. The report offers
exclusive preludes, and primers on the global Cosmetics and Toiletries markets such as Skin
Care Products, Hair Care, Oral Hygiene, Shaving Products, Bath & Shower Products, Facial
Care, Lip Care, Feminine Hygiene Products, Deodorants, Fragrances & Perfumes, and Baby
Toiletries. The report also includes a compilation of recent mergers, acquisitions and strategic
corporate developments. Major regional markets discussed include United States, Japan, Europe,
France, Germany, Italy, UK, Spain, Asia, China, India, South Korea, Brazil, and Mexico, among
others. The report also includes an indexed, easy-to-refer, fact-finder directory listing the
addresses, and contact details of 997 companies worldwide.

The specific product segments analyzed are Stick & Solid Deodorants, Spray
Deodorants, Roll-On Deodorants, and Other Deodorants (Creams, Gels and Wipes). The report
provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific,
Middle East, Latin America, and Rest of World. Annual forecasts are provided for each region
and product segment for the period of 2001 through 2015. A ten-year historic analysis is also
provided for these markets with annual market analytics. The report profiles 186 companies
including many key and niche players worldwide such as Beiersdorf AG, Church & Dwight Co.,
Inc., Colgate-Palmolive Company, Henkel KGaA, Kao Corp., Lion Corporation., Procter &
Gamble Company, Sara Lee Corporation, and The Unilever Group.

The specific product segments analyzed are Traditional Lip Care Products,
Medicated and Therapeutic Lip Care Products, and Sun Care (Lip Care) Products. The report
provides separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific,
Middle East, and Latin America. Annual forecasts are provided for each region for the period of
2001 through 2015. A ten-year historic analysis is also provided for these markets with annual
market analytics. The report profiles 127 companies including many key and niche players
worldwide such as Beiersdorf AG, Blistex Inc., Carma Laboratories, Chattem Inc.,
GlaxoSmithKline PLC, Johnson & Johnson, Laboratoire Dermophil Indien, LOreal SA, Rohto
Pharmaceuticals Co., Ltd., Mentholatum Company, Inc., The Body Shop International Plc,
Unilever NV, Vichy Laboratories, and Wyeth Corporation. Market data and analytics are derived
from primary and secondary research.

The major product segments analyzed are Face Care Products (Facial
Moisturizers,Facial Cleansers, & Others), Body & Hand Care, and Depilatories (Hand & Body
Lotions/Creams, & Others), and, Sun Care Products.The report provides

separate comprehensive analytics for the US, Canada, Japan, Europe, Asia-Pacific, Latin
America, and Rest of World. Annual forecasts are provided for each region and product segment
for the period of 2001 through 2015. A ten-year historic analysis is also provided for these
markets with annual market analytics. The report profiles 697 companies including many key
and niche players worldwide such as Amway Corp., Avon Products, Inc., Beiersdorf AG,
Chattem, Inc., Clarins, Estee Lauder, Inc., Johnson & Johnson, AMBI Skincare, Neutrogena
Corp, Kao Corporation, Kao Brands Company, Kracie Holdings Ltd., LOral S.A, Nu Skin
Enterprises, Inc., Oriflame Cosmetics AB, Playtex Products Inc., Procter & Gamble, Revlon,
Inc., Sara Lee Corporation, Schering-Plough Corp., Shiseido Co. Ltd., and Unilever N V. Market
data and analytics are derived from primary and secondary research.
 CHAPTER -4
RESEARCH METHODOLOGY
RESEARCH METHODOLOGY :-

Research problems: To study Perception and buying behavior of modern

consumer for personal care products.

Data source: Primary data and secondary data

Research approach: Survey approach

Research methodology: Exploratory method

Research Instruments: Questionnaire

 SAMPLING PLAN

Sample: Malls ,Super Market

Extent: Delhi/NCR

Sample Methods:- Random Simple Sampling

Sample size :- 175.

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. so in this research sampling unit is Delhi/NCR.

b) Source list: It is also called sampling frame from which sample is to be

drawn ,it caters name of all the items of a universe (in case of finite universe
only).Researcher has to prepare it
c) 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 this also limits the
sample size .Sample size in this research is 175 customers.

d) Sampling procedure: Finally the researcher must decide the type of sample
he must be .That is he must decide 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 175 respondents.

INSTRUMENTS USED

We collected primary data through sample survey or census surveys from the
selected elements in malls and super markets. 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.

There are basically two sources to collect secondary data

a) Internally: Provided by the company/organization

b)Externally: Various publication of central, state and local Government.

Books, magazines, newspapers

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 questions formatted and return the same soon.

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 purposed
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 .
 CHAPTER 5
DATA ANALYSIS
DATA ANALYSIS :-

There is a number of data analysis has been done on the basis of questionnaire and
different basis. Theses basis of questionnaire has been made on different preference and buying
habit of consumers. The data analysis is given as follows:-

TABLE:- SHOPPING HABIT OF CONSUMERS FOR PLACE

SHOPPING HABIT OF CONSUMER

SHOPPING HABIT
48%

21% 25%
6%

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 gone to only one or two stores
available in a area. They purchase only those things which the retailer gives them. At the time,
the consumers has very limited choice due to unavailability of more retail stores in a area. But
now a days there is a bunch of availability of super markets, malls, and different ways to
shopping. At the present time, 48% of people goes to a super market, 25% goes to same old
traditional stores, these persons are either from backward area or some semi urban areas. 21%
peoples goes to malls for shopping, these are the peoples of metro cities or good developed city
like Lucknow, Ahemdabad, Pune etc. Remaining 6% peoples deals with e- shopping.
TABLE 2 :- DURATION BETWEEN SHOPPING

SHOPPING DURATION
SHOPPING DURATION

49%

35%

11%

5%

DURING WEEKENDS 15-20 DAYS MONTHLY RARELY

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 the people 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. These are very beauty conscious and expensive
peoples. At last remaining 5% peoples rarely purchase these cosmetic products.
TABLE 3: BRAND CONCIOUSNESS OF PEOPLE

BRAND COCIOUSNESS
90%

80%

70%

60%

50% BRAND COCIOUSNESS

40%

30%

20%

10%

0%
YES NO FOR SOME PRODUCTS

Interpretation :-

The above table shows the brand consciousness of the common consumers. On the
basis of above table, at the present time there are 78% people of India are brand conscious 14%
consumers are brand conscious for only few brands and remaining 8% people who belongs to
backward areas are not brand conscious.
TABLE 4:- PREFERECE OF DIFFERENT BRANDS (COUNTRY WISE)

PREFERENCE OF BRANDS
PREFERENCE OF BRANDS

55%

34%

11%

NATIONAL INTERNATIONAL LOCAL

Interpretation :-

The above data table shows the preference of consumers towards different brands
of cosmetic products on the basis of country. 55% of consumers prefer the brands of different
national companies. The main reason is less price and relatively good quality. 34% consumers
prefers the brands international companies or imported products. . These consumers contains
models, relatively rich people, professionals etc. last 11% consumers prefers local goods.
TABLE 5:- BASIS OF PURCHASE

PURCHASING DECISION
PURCHASING DECISION

45%

24%

18%

13%

QUALITY PRICE EASY AVIBILITY NATION

Interpretation:-

The above table shows the basis of purchase of cosmetic products by consumers. 45%
of consumers looking for a good quality, 24% consumers are price conscious. Generally they are
looking for a discount. 18% consumers purchase those goods which are easy avilabe in the
nearest market. Remaining 13% consumers are purchase the goods on the basis of nation ( like-
made in India, made in Japan etc.).

TABLE 6:- EXPENDITURE ON COSMETICS

EXPENDITURE ON COSMETICS
EXPENDITURE ON COSMETICS
42%

28%
22%

8%

Interpretation :-

The above data shows the expenses percentage of consumers on cosmetic products.
According to this table, 42% of consumers spend 20% of their salary on cosmetic items,
28%peoples spend 10% of their salary on cosmetics. 22% consumers spend 30% of their salary
on cosmetics. At last remaining 8% consumers spend more than 50% of their salary on
cosmetics.
TABLE 7:- MOST PREFERD COSMETIC COMPANY.

CONSUMERS PREFERENCE
CONSUMERS PREFERENCE

32%

24%

18%

16%

10%

HUL
P&G
ITC
DABUR
OTHER MNC

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 top 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 products of Dabur has been demanded by consumers. Last 10% of the consumers are
looking for the product of a MNC.

TABLE 8:- SOURCES OF BRAND AWARENESS.

DECISION MAKERS
DECISION MAKERS

36%

28%

21%

15%

ADVERTISEMENT FRIENDS NEIGHBOUR OTHER SOURCES

Interpretation :-

The above table shows the different sources from where a consumers are able to know
about cosmetic products. 36% of the consumers are get aware with the products from advertising
in T.V or some other medium. 28% of the consumers are get aware about the product by there
friends. 21% awareness comes from nearest neighbor. Remaining 15% of consumers are able to
know about the products through some other sources like free sampling, mass media, brand
promotion etc.

TABLE 9:- FFECTING FACTORS RESPONSBLE FOR THE BUYING DECISION OF

CONSUMERS.

EFFECTING FACTORS

COMPANY; 11%

BRAND NAME; 38%

PACKAGING; 19%

PRICE; 32%

Interpretation :-

The above table shows the different factors which effects the buying decision of the
consumers. At the present time more than 35%(38%) of consumers prefers the brand name
before purchasing of a cosmetic product. 32% of consumers prefers price as a important factor in
the purchasing of a cosmetic product. 19% preference goes to the packaging and remaining 11%
preference goes to reputation of companies.

TABLE 10:- VALUE TO THE DIFFERENT PURCHASING FACTORS

Excellent Very Good Good Average Below Average

PRICE [ ] [ ] [ *]
[ ] [ ]

QUALITY [* ] [ ] [ ]
[ ] [ ]

LOOK [ ] [ ] [ ]
[* ] [ ]

Durability [ ] [* ] [ ] [ ] [ ]

Fregnence [ *] [ ] [ ] [ ] [ ]

Interpretation :-

The above table shows the measurement of different quality factor of a product on the
basis of a lickert scale. As the result, there is a good priority has been given to the price of the
product. An excellent priority is given to the quality and fragnence. Consumer also looking for a
very good durability of a product. There is a very average priority is given to the look of a
product for purchase criteria.

CHAPTER 6
CONCLUSION AND
SUGGESTION
CONCLUSION :-
As the 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 preference shown that customer are
now quality sensitive .They want quality product, good services, easy availability of product
and better performance by the 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 products available there.
We can conclude from our study that still more inclination is towards
indigenous product the preference ratio of indigenous to imported products is 7 : 3This is
because of the relatively higher price of imported product.
 Suggestions
i. Customer like best quality product on any price, so company should add latest technology to
their products.

ii. After sales services is the area where Indian and International Company can highly satisfy the
existing customer, because they can make more customer through their word of mouth. So
Indian and International Company should provide latest and reliable service to their
customers.

iii. Customers behavior always looks for some extra benefit with purchasing. They demand for
affordable price for product and gifts with purchasing.

iv. 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.
 v. The Indian company should give more emphasis on advertising to create market
awareness and to make a brand image in the minds of investors.

vi. The International Company should do more publicity through road shows,
newspaper and advertisement. As this will create awareness about he fund and schemes that
are at present managed by the International Company.

vii. They should keep a close eye on competitor strategy.

Reference:-
News paper: - The Economic Times.

Business Standard.

Journals: - Business World, Business Today.

Website: - www.wikipedia.com

www.fmcgmarketers.blogspot.com

www.google.com

www.a2zmba.com

Book: - Kotler Philip , Principle of Management

Khothri C R , Research Methodology

APPENDIX:-
QUESTIONNAIRE

Name:-

Address:-

Occupation:-

Contract no:-

1) What is your annual income?

a) Below 100000 p.a ___ b) Rs.100000 to 200000p.a___

c) Rs.250000 to 500000 p.a ___ d)Above Rs. 500000 ___.

2) 1. Where do you like to go for shopping?

 a) Super market ___ b) Mall ____
b)Traditional shop ___ d) e-shopping. ____

3) How many time you like to visit this place for purchasing cosmetic products?

a) During weekends ___ b) Monthly ____

c) 15-20 days ___ d) rarely ____

3) Are you brand conscious?

a) Yes ___ b) No ____

4) Are you satisfied with the variety of brand availability in the market?

a) Yes ___ b) No ___

5) If yes you prefer?

a) National brand ___ b) International brand ___

7) Which parameter/s effect youre buying decisions?

a) Quality ___ b) Price ____ c)

easy availability ___ d) national/ state ____

8) Which type of Cosmetic products you prefer?

a) Indigenous ___ b) Imported ____

9) How much percent you spend on cosmetic products from your total consumption?
 a) 10% ___ b) 20% ____

c) 30% ___ d) more than 50% ____

10) Which companys cosmetic brands you prefer much more?

a) HUL ___ b) P&G ____

c) ITC ___ d) Dabur ____

e) Other MNC ___

11) Which factor mostly affects your decision while purchasing any cosmetic product ?

[ ] FRIENDS [ ] ADVERTISEMENT [ ] PARENTS [ ] OTHER

12) How will you rate your product in terms of following factors ?

Excellent Very Good Good Average Below Average

PRICE [ ] [ ] [ ]
[ ] [ ]

QUALITY [ ] [ ] [ ]
[ ] [ ]

LOOK [ ] [ ] [ ]
[ ] [ ]
 Durability [ ] [ ] [ ] [ ] [ ]

Fregnence [ ] [ ] [ ] [ ] [ ]

13) Which character attract your choice?

a) Brand name ___ b) Price ____

c) Company ___ c) Packaging ____

14)Suggestions.