A Market research project on

premium cosmetic products &

customer’s buying behavior.
 Abstract

 The study of customer buying behavior is the most important factor for the
launch & marketing of any product. Buying behavior indicates the needs and
habits of the consumer.

 It also clues for Improving or introducing product or services, setting prices &
devising channels.

 Liberization has allowed 100% FDI in India attracting foreign companies to

penetrate in Indian markets.

 The demand for Skin care product has not increased for women but also for men.
 Research Methodology
 Target audience
 Decision maker, manager or skin care expert.

 Geography
 India( Bengaluru, Mumbai ,Kolkata & Cochin)

 Objective
 Understand the business profile of respondent
 Understand the operating & marketing profile
 Understand the business environment of respondent in specific geography

 Data source
 Primary data

 Research approach
 Survey approach

 Research instrument
 Questionnaire
 Respondents Profile
Respondents
 Shiva’s - A salon with a difference. Highly recognized & admired among the inner
circle of bollywood.
 Pappu is an expert in skin care services and have been in the business for 5-10 years.

 Nirmal Herbal - Clinic, Spa & Salon - The brainchild of Dr. Nirmal Shetty. An elegant &
swanky space for people seeking pamper & solace. They believe in organically
produced solution for all your skin problems. Nirmal Herbal has 4 branches in
Mumbai.
 Dr. Reena is a senior manager with varied experience of 5-10 years in beauty
industry.

 Freeda Beauty Salon: A swanky salon catering to the needs of the upper class section
of Bandra, Mumbai. It offers an array of services ranging from Face crème to Body
bath.
 Ekta is the X-factor of the salon . She has 2-5 years experience in this line of business.
 Respondents Profile
 Gorgeous Skin Care Clinic – A one-stop solution for all your Skin related problems.
Headed by Dr Purnima catering to the upper class of Mumbai. Gorgeous has 3
branches in Mumbai.
 Dr Ankita is relatively new but very passionate and cheerful. She goes the extra
mile to makes the customer happy. She has an experience of 2 years in skin care
treatment.

 Sykz Salon – A salon located in the high-profile locality of lokhandwala.

Models/Actors turn up here for their needs. It has no other branches in mumbai.
 Monisha is a salon & SPA consultant who single-handedly manages the everyday
operation at the center. She has been in the business for 2-5 years.

 Kaya skin clinic – A one-stop shop where they cater to clients seeking redefinition
of beauty.
 Anisha a specialist in Skin care have been in the business for 5-10 years.
 Question 1
Question 1
How aware are the respondents
about the various premier cosmetic
brands and whether they endorse
the same from their outlet?
 The most recognized cosmetic brands
are Amway, Kaya ltd & Body shop.
 The most endorsed brand is dermalogica
& MAC.
 Skin Care clinic uses mostly uses their
own manufactured products to assure
100% quality.
 Other Brands like La casa , loreal & self-made
products are also popular.
Refer the following two slides
   Know the brand
Product Sykz salon Shiva's Kaya ltd Gorgeous skin care Freeda beauty salon Nirmal herbal
Amway Y Y Y Y Y Y
Artistry skin care Y   Y   Y Y
Avon products Y   Y Y   Y
Bacrosse skin care Y          
Bare essentuals products Y   Y Y    
Biotherm products Y Y Y      
Chanel Y   Y Y    
Clinique skin care Y   Y Y   Y
Dermologica skin care Y Y Y   Y Y
Elizabeth arden skin care Y Y Y     Y
Estee lauder Y   Y      
Eternal beauty     Y      
Forest essential Y   Y     Y
Jan Marini         Y  
Jason skin care Y Y        
Kaya ltd Y Y Y Y Y Y
Mary kay   Y Y Y   Y
MAC Y Y Y Y Y  
Murad Y   Y      
Obagi Y   Y      
Origins Y Y   Y    
Philosphy   Y        
Proactiv Y   Y     Y
ROC Y   Y Y    
Body shop Y Y Y Y Y Y
VLCC Y Y Y Y Y Y
Others       Anthelios    
   Sell the brand
Gorgeous skin Freeda beauty
Product Sykz salon Shiva's Kaya ltd care salon Nirmal herbal
Amway            
Dermologica skin care Y Y   Y    
Elizabeth Arden skin care            
Estee Lauder            
Eternal beauty            
Forest essential Y          
Jan Marini         Y  
Jason skin care            
Kaya ltd     Y      
Mary Kay            
MAC   Y   Y Y  
Murad            
Obagi            
Origins            
Philosphy   Y        
Proactiv            
ROC            
Body shop            
VLCC            

Loreal,
Others Paul Mitchel Loreal   Dr Purnima,La casa La casa Dr Nirmal Shetty
 Question 2

Do you sell skin care products to

females or do you sell males’
skin care products as well?
 All the premium salons & clinic
provides services for both females
as well as males .
 The ratio of females are more than
males.
 Men are becoming skin conscious.
 Q3 : What type of skin care products do you sell?
Sykz Kaya Gorgeous skin Freeda beauty Nirmal
Product Salon Shiva's ltd care salon herbal

Face crème Y Y Y Y Y Y
Anti-ageing crème &
serum Y Y Y Y Y Y

Eye crème & serum Y Y   Y Y Y

Facial exfoilators Y Y Y Y Y Y

Face masks Y Y Y Y Y Y

Body butter   Y        

Body scrub Y Y Y Y Y Y
Skin lightening facial
product Y Y Y Y Y Y
Hair
Others Hair care Tattoos care  Hair care  Hair care Hair care
 Note
NOTE
 All skin clinic & salons specialize in all
kinds of skin treatment.
 Different clinic/salon endorse
different brands.
 The services are clubbed based on the
skin type & recommendation of the
dermatologist.
 Body butter is not a very popular skin
treatment.
 Different centers name their services
differently.
 Q4 : Which are the most preferred products from your
  koisk/saloon/shop?
Sykz Gorgeous Skin Freeda Beauty Nirmal
Product Salon Shiva's Kaya ltd care Salon Herbal

Face crème   Y Y Y Y  

Anti-ageing crème & serum   Y        

Eye crème & serum            

Facial exfoilators   Y   Y Y Y

Face masks            

Body Butter            

Body scrub         Y  

Skin lightening Facial product Y   Y Y   Y

NOTE:
 The most preferred product are Face crème, Facial exfoilators & skin lightening Facial
products
 The recommendation for any procedure is based on the advice of the dermatologist
& skin type of the customer.
  Q 5 :Which are the most preferred products by your customers?
Sykz Gorgeous skin Freeda beauty Nirmal
Product salon Shiva's Kaya ltd care salon herbal

Face crème   Y Y Y Y Y

Anti-ageing crème & serum   Y Y     Y

Eye crème & serum            

Facial exfoilators   Y Y Y    

Face masks            

Body butter            

Body scrub            

Skin lightening facial product Y Y   Y Y  

NOTE:
 The most preferred products by the customers are Face crème, Anti-ageing crème &
serum & Skin lightening Facial products.
 The customer base their decision mostly on the recommendation of the
dermatologist & skin care expert.
 Q6 : What premium brands do the customers prefer most in each type of skin care product?
Product Sykz Salon Shiva's Kaya ltd

  Brand 1 Brand 2 Brand 1 Brand 2 Brand 1 Brand 2

Forest
Face crème Demologica Essenual Apricot   Kaya ltd Kaya ltd
Anti-ageing crème & Forest
serum Demologica Essenual Loreal   Kaya ltd Kaya ltd
Forest
Eye crème & serum Demologica Essenual Bio Tech   Kaya ltd Kaya ltd
Forest
Facial exfoilators Demologica Essenual Peels   Kaya ltd Kaya ltd
Forest
Face masks Demologica Essenual Peels   Kaya ltd Kaya ltd
Forest
Body Butter Demologica Essenual     Kaya ltd Kaya ltd
Forest
Body scrub Demologica Essenual Nivea   Kaya ltd Kaya ltd
Skin lightening Facial Forest
product Demologica Essenual Aroma   Kaya ltd Kaya ltd

NOTE:

 Different salon/skin care clinic uses different brands for treatment purpose.
 There is no similarity observed in usage of brand in different centers.
 Kaya uses it’s own product for all kinds of treatment.
 Q7 : What premium brands do the customers prefer most in each type of skin care product?
Product Gorgeous Skin care Freda Beauty Salon Nirmal Herbal

  Brand 1 Brand 2 Brand 1 Brand 2 Brand 1 Brand 2

Dr Nirmal Shetty Dr Nirmal Shetty
Face crème Exfoderm Lacasa Loreal Casmara Organic product Organic product
Anti-ageing crème & Dr Nirmal Shetty Dr Nirmal Shetty
serum Lacasa MAC Loreal Casmara Organic product Organic product
Dr Nirmal Shetty Dr Nirmal Shetty
Eye crème & serum Lacasa MAC Loreal Casmara Organic product Organic product
Dr Nirmal Shetty Dr Nirmal Shetty
Facial exfoilators Dr Purnima's Dr Purnima's Casmara Jan Marini Organic product Organic product
Dr Nirmal Shetty Dr Nirmal Shetty
Face masks Dr Purnima's Dr Purnima's Casmara MAC Organic product Organic product
Dr Nirmal Shetty Dr Nirmal Shetty
Body Butter Gorgeous Gorgeous     Organic product Organic product
Dr Nirmal Shetty Dr Nirmal Shetty
Body scrub Gorgeous Gorgeous Loreal Body Shop Organic product Organic product
Skin lightening Facial Dr Nirmal Shetty Dr Nirmal Shetty
product Dr Purnima's Dr Purnima's Casmara Gorgeous Organic product Organic product

NOTE:
 Different salon/skin care clinic uses different brands for treatment purpose.
 There is no similarity observed in usage of brand in different centers.
 Nirmal Herbal uses it’s organically manufactured product for all kinds of skin care
treatment.
 NIRMAL HERBAL
  Q8: Where are these product are sold?
Can you name the best products Exclusive Direct Internet Parlor/
Product of each brands mentioned by you? store marketing marketing Spa

Amway Skin refinishing lotion Y Y Y

Artistry skin care Lifting eye crème Y Y Y

Avon products Facial peel Y Y

Clinique skin care Moisturizer Y Y Y

Dermologica skin care Cleanser Y Y Y

Elizabeth Arden skin
care Brightening serum Y Y

Kaya ltd Anti-ageing crème Y Y Y Y

Mary Kay Eye gel Y Y Y

Proactiv Face mask Y Y

Body shop Body scrub Y Y Y Y

VLCC Face pack Y Y Y Y

 Note
NOTE
 Internet stands out to be the most effective &
economical method of communication.

 Most of the branded products does not sell through

exclusive showroom.

 Salon/ SPA provides a good platform to create

awareness about skin care products.

 Kaya, Body shop, VLCC engages all forms of distribution

network to create awareness & sell their products.

 Media is a good tool to create awareness about any

product.
 KAYA LTD
Q8: Where are these product are sold?
 

Can you name the best products Exclusive Direct Internet Parlor/
Product of each brands mention by you store marketing marketing Spa

Kaya ltd Facial Y Y Y Y

NOTE :

 Kaya has it’s own range of products. So they use and suggest only their own
manufactured products.

 Kaya engages all forms of distribution channel to market their products.

 Kaya ltd offer skin care solution as well as manufactures its own brand of products .
 FREEDA BEAUTY SALON
Q8: Where are these product are sold?
 
Can you name the best products of
each brands mention by you Exclusive Direct Internet Parlor/S
Product Store Marketing Marketing PA

Amway Shampoo Y Y Y

Artistry skin care Eye crème Y Y Y

Avon products Face wash Y Y

Dermologica skin care Cleanser Y Y Y

Kaya ltd Moisturizer Y Y Y Y

Mary Kay

MAC Make up remover Y Y

Body shop Body scrub Y Y Y Y

VLCC Face pack Y Y Y Y

 GORGEOUS SKIN CARE CLINIC Q8: Where are these product are sold
Can you name the best products Exclusive Direct Internet Parlor/
Product of each brands mention by you Store Marketing Marketing SPA
Amway Hair Care Y Y Y
Avon Products Avon Anew Y Y
Bare escentuals Products Vitamin Skin rev-er upper Y Y
Chanel Precision Line Y Y
Clinique Skin Care Cleansing soap Y Y
Kaya ltd Anti-ageing Y Y Y Y
Mary Kay Even complexion crème Y Y Y
MAC Make up set Y Y Y
Origins Liquid moisturiser Y Y
ROC Eye crème
Body Shop Body scrub Y Y Y Y
VLCC Orange face peel Y Y Y Y

NOTE :

 All the major Skin care clinic mostly uses their own manufactured product and recommend
the same to the clients.
Use of preservatives in packaged tubes is not recommended by the dermatologist in a typical
skin care center.
 SHIVA'S Q8: Where are these product are sold?
Can you name the best products Exclusive Direct Internet Parlor/
Product of each brands mention by you Store Marketing Marketing SPA
Amway Face wash y y y
Biotherm Products Under-eye crème y y y
Dermologica Skin care Face wash y y y
Elizabeth Arden Skin care Face crème y y
Jason Skin Care Face crème y y y
Kaya ltd Laser y y y y
Mary Kay Skin crème Y Y Y
MAC Y Y Y
Origins Galvanic product y y
Philosophy Skin crème y y
Body Shop Body crème y y y y
VLCC Facial y y y y

NOTE :
 Almost all skin care products uses Internet marketing as a tool to promote their
products.
 Most of the skin care products are not available in exclusive stores.
 Parlor/SPA provides a good launch pad to introduce new cosmetic products in the
market.
 SYKZ SALON Q8: Where are these product are sold?
Can you name the best products of
each brands mention by you Exclusive Direct Internet Parlor/S Othe
Product Store Marketing Marketing PA rs
Franc
Amway Body Shampoo Y Y Y hise
Artistry Skin Care Alpha Hydroxide Serum Plus Y Y Y
Avon Products Anew Clinical Derma Y Y Y
Bacrosse Skin Care Moisturiser Y Y Y
Bare escentuals Products Mascara Y Y Y
Biotherm Products Cleasner Y Y Y
Chanel Masks & Scrub Y Y Y
Clinique Skin Care Exfoilators Y Y
Dermologica Skin care Toners Y Y Y
Elizabeth Arden Skin care Moisturiser Y Y
Estee Lauder Make up remover Y Y
Jason Skin Care Body lotion Y Y Y
MAC Foundation Y Y
Murad Anti-ageing Y
Obagi Eye serum Y Y Y
Proactiv Repairing lotion Y Y Y
ROC Anti-ageing Y Y
Body Shop Skin lightening crème Y Y Y Y
VLCC Skin lightening crème Y Y Y Y
 Q9: What does average skin care shopper in India spend on skincare
  products in a month in your opinion?
Nirmal
  Sykz Shiva's Kaya ltd Gorgeous Freeda Herbal

Amount            

Less than Rs2000            

Rs 2000 - 3000 Y Y Y     Y

Rs 3000 - 4000         Y  

Rs 4000 - 5000            

Rs 5000 and Above       Y    

NOTE :

 Most of the respondent believes that an average shopper spends approximately Rs 2000 – Rs
3000 in a month.
 The response is a subjective judgment based on the prices charged in their respective outlet.
 Q 10 :Have you notice a preference for smaller or larger quantity
  products/packaging(for instance more or less ounces of a cream in bottle)?
  Sykz Shiva's Kaya Gorgeous Freeda Nirmal Herbal
Smaller Y   y   Y Y
Larger   Y   Y    

NOTE :
 There is a divided response w.r.t the size of the packaging.
 Smaller packaging are preferred over larger ones because of cost benefit.
 Smaller packaging eases the task of keeping track of usage quantity.

Q 11: Have you notice a preference for tall and long bottles/packaging or low and wider
  bottles/packaging for skin care products?

  Sykz Shiva's Kaya Gorgeous Freeda Nirmal Herbal

Tall and Longer   Y   Y    

Low and Wider Y   Y   Y Y

NOTE :
 There is a divided response w.r.t the size of the packaging.
 Smaller packaging are preferred over larger ones because of cost benefit.
 Smaller packaging eases the task of keeping track of usage quantity.
 Q12 : Which products type among the following are sold most at your
  Location?
  Sykz Shiva's Kaya Gorgeous Freeda Nirmal Herbal
Face crème Y Y   Y Y Y

Anti ageing     Y Y    
Eye crème and
Serum       Y    

Facial Exfoiltors Y   Y Y Y Y

Face Mask   Y        

Body Butter            

Body Scrub           Y
Skin Lightening Facial
products     Y   Y Y

NOTE :
 Face crème & Facial exfoilators are the most purchased service from the
kiosk/salon/SPA/skin care center.
 Almost all the centers offer bundled package of different services.
 Body butter is not a very popular service. It’s often clubbed with other services.
 Q13: Whom do your skin care products customers mainly
  compromise of?
  Female
  Housewives Students Employed Others
Sykz Y Y Y  
Shiva's Y Y Y Models/Actors
Mary Kays y y y  
Gorgeous Y Y Y  
Freeda Y Y Y  
Nirmal Herbal Y Y Y  
  Male  
  Students Employed Others  
Sykz Y Y    
Shiva's Y Y Models/Actors  
Mary Kays y y Models/Actors  
Gorgeous Y Y    
Freeda Y Y    
Nirmal Herbal Y Y    

NOTE :
 Both earning as well as non-earning people visits premium salons/skin care clinic.
 Mumbai sees a lot of actors/models turning up for skin treatment.
   Q14: Age Classification
  Female  
  <20 years 20 -25 years 25-30 years 30-40 years >40 years
Sykz   Y Y Y  
Shiva's Y Y Y    
Mary Kay   Y Y Y Y
Gorgeous Y Y Y Y Y
Freeda   Y Y Y  
Nirmal Herbal Y Y Y   Y
  Male
  <20 years 20 -25 years 25-30 years 30-40 years >40 years
Sykz   Y Y Y  
Shiva's Y Y Y Y  
Mary Kays   Y Y Y Y
Gorgeous   Y Y Y Y
Freeda   Y Y Y  
Nirmal Herbal Y Y Y   Y

NOTE :
 The core customers are between 20-30 years of age.
 The teenagers & senior citizens are also showing keen interest in salon/skin care
clinic.
   Q 15: Income Classification
  Female  
  Upper Class Upper middle Middle Class Lower middle Can't say
Sykz Y Y      
Shiva's Y Y      
Kaya ltd Y Y Y    
Gorgeous Y Y      
Freeda Y Y Y    
Nirmal Herbal Y Y      
  Male
  Upper Class Upper middle Middle Class Lower middle Can't say
Sykz Y Y      
Shiva's Y Y      
Kaya ltd Y Y Y    
Gorgeous Y Y      
Freeda Y Y Y    
Nirmal Herbal Y Y      

NOTE :

 The majority of customers are from upper & upper-middle class.

 The middle class are steadily developing interest.
 Q 16: What are the main sources of knowledge(regarding skin care
  product)of the customer, who visit your shop?

  Sykz Shiva's Kaya Gorgeous Freeda Nirmal Herbal

Print Media Y   Y Y    

Electronic Media     Y Y    

Web Sources     Y Y    
Peers/Friend/Family
Member Y Y Y Y Y Y

Others            

NOTE:

 References forms a good source of new customers.

 All forms of media is starting to influence the decision of the customers.
   Q 17: What proportion of your client is regular?
Gorgeous skin
  Sykz Shiva's Kaya clinic Freeda Nirmal Herbal
Less than 50%            

50% to 60% Y Y Y      

60% to 70%            

70% to 80%         Y  

80% to 90%           Y

More than 90%       Y    

NOTE :

 More than 50% of the clients are regular to the center.

 Skin clinic like Gorgeous & Nirmal observes that more than 90% of their clients are
regular.
 Q 18: What Percentage of customer takes advice on skin care product
  application?

  Sykz Shiva's Kaya Gorgeous Freeda Nirmal Herbal

Take my Advice 60% 60% 90% 90% 70% 95%

Customer Preference 40% 40% 10% 10% 30% 5%

NOTE :

 Most of the clients look for advice from the skin care expert & dermatologist before
opting for a particular service.

 In skin care clinic, the specialist decides the type of procedure needs to be done.
   Q 19: What is the average amount a customer spends in each visit?

  Sykz Shiva's Kaya Gorgeous Freeda Nirmal Herbal

Less than 2000 Y Y     Y  

Rs 2000 - 3000     Y      

Rs 3000 - 4000       Y    

Rs 4000 - 5000            

Rs 5000 and
Above           Y

NOTE :
 Most of the respondents believes that on an average a customer spends less than Rs
2000 on each visit.
 The response is based on the subjective judgment of the respondent and it’s based
on the cost of procedure at the clinic/salon.
Q 20 : What changes have you observed over the past
12 months in the buying behavior of the customer of
skin care products?
 Sykz ltd.
Suggestion by SYKZ

“Customers have become mature &

intelligent. Higher disposable income is
increasing the demand for skin care
product across all sections. The
consumers are exposed to global
brands. They insists on sample before
purchasing a product. The users respect
people who are expert/ consultant in
the field of skin care”.
 Nirmal Herbal- Salon & SPA
Suggestion by Nirmal Herbal

“Customers have become intelligent &

insists on quality products. Despite surge in
prices of beauty product, the customers are
willing to spend money. Money is not the
criteria to attract customers. Skin clinic was
the luxury of the upper class but now with
increasing disposable income the middle
class are showing keen interest. Insistence
on organically produced product have been
increasing.”
 Gorgeous Skin care clinic

“Customers have moved from

being price-sensitive to quality
sensitive. They want quality
product, good service, easy
availability of product & better
performance of product. The
frequency of buying from malls &
exclusive stores have increased.”
 Shiva’s
Shiva’s

“Customer have become more

informed & updated. They understand
their needs & knows the benefit of
using a product. Customers asks
questions & are more demanding.”
 Kaya Ltd.

“The changes observed is that Indian

products are doing really well & giving
strong competition to imported
products. The advertisements are
effective mode of creating awareness.
The customer s are educated enough to
understand the benefit of using a
product or getting a procedure done.”
 Freeda Beauty Parlour
Freeda Beauty Parlour
“ There are products for almost all
needs based on the skin type. There
is a clutter of brands which often
confuses the users. Every
brand/product tries to be unique &
different to attract customers but
there is no significant difference
noted. India is a developing market
and with right positioning strategy
there is a bog scope for success.”
 4 P’s of Marketing
4 P’S of Marketing
Product Price

Herbal products are gaining popularity.
Product targeting the teenage & senior
citizens.
Insistence on Quality could be a strong
selling point.
Customers are more Quality conscious
than Price conscious.
 The prices should be at par with other
competing products.

Place Promotion

 Salon/SPA are effective channel to  Setting up kiosk in malls/multiplexes to

create awareness. display the product.
 Tie-up with salons & SPA to widen the  Free sample could lead to increased
distribution network. sales.
 Suggestions & Recommendations
Suggestion & Recommendation
Personalized care is the new buzzword in skin care industry. Every
customers seeks product & treatment which matches their skin
type & related needs.
Herbal products are giving strong competition to non-herbal
products. Customers are willing to pay more for organically
manufactured products.
The role of skin care expert/specialist is paramount to the success
of any product.
Customer needs to be updated on the benefits accrued from the
product.
Kiosks and stalls at strategic location helps creating greater
awareness.
Deceiving customers is detrimental to the brand image.
 Strategic tie-ups & alliances expedite the acceptance of the
product.
 Media plays an important role in spreading information about the
product & services.
 THANK YOU

COMPILED BY:
MD. AZHARUDDIN KHAN
FOR ANY CLARIFICATION & QUESTION :
EMAIL: azhar_290486@yahoo.co.in
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