An Exploratory Marketing Research on

Flow of presentation
1. 2. 3. 4.

5.
6. 7.

8.
9. 10.

Industry Profile and Background Problem definition Environmental Context Management Decision Problem Management Research problem Research Methodology Hypothesis and Questions Analysis Conclusions Limitations

Industry Profile
Market Size
Indian skincare market ~ Rs 2,100 crore Skincare moisturizer market ~ Rs 1,600 crore Premium Skincare Market ~ 450 crore Skincare market has been steadily growing at 16 per cent as of last year Anti-Ageing Market ~ 60 crore

Trend

Anti-ageing solutions are nascent but gaining ground Anti ageing is only 3% of the total skin care market at [$15 million], which means there is huge potential. It has been doubling every year for the last three years, Development of the skincare category in India Growing consumer awareness

Brands & Companies

HUL Ponds Age Miracle Range P&G Olay Total Effects: Fighting the 7 signs of ageing (lines and wrinkles, sagging, uneven skin tone, age spots, pores, dullness and dryness). LOreal Garnier: In India from last decade Shehnaaz Hussain skin care

Olay (P&G)
Globally P&Gs personal care market is around $20 billion, of which $2 billion is contributed by Olay

Target Consumer Middle aged socially active Indian women looking for one product that will help her stay young and beautiful

Brand Ambassadors Apart from Sushmita Sen, Roopa Purshottam, Economist & Head, Future Trends (Future Group), Anita Dongre fashion designer Tisca Chopra, TV anchor and actor

Problem Definition
Industry Experts: Rashi Mittal, P&G Area Sales Manager Mumbai mittal.r.2@pg.com

Dr. R. K. JOSHI
senior consultant and coordinator of dermatology at Indraprastha Apollo Hospital new Delhi.

 It

is the working woman who is more conscious of the way she looks rather than the woman who stays at home Systematic use of displays trained and motivated sales persons and representatives Grey Markets and distribution inefficiency Price Home made pastes are very popular,

Environmental Context
Past info. and forecasts

In 2003, facial care products totaled 72.1% of the Indian skincare market Body care made up a further 12.8% of the market's value. Sun care products held the smallest share (4.2%) in 2003. Till this time market for anti ageing was not created. For 2008 the Indian skincare market is forecast to have a value of $134 million, an Increase of 42.8% since 2003. The compound annual growth rate of the market in the period 2003-2008 was predicted to be 7.4%.

Buyer behavior

Geographical locations only in 6 metros Demographic and psychological characters of Indian Women like skin, lifestyle differences, consumption habits

Continued...

Media consumption habits and Promotion responses Price sensitivity Store preferences Buyer preferences

Economic Environment Economic growth of India is rapid and purchasing power , disposable income is high of the target audience.

Marketing and Technological Skills interactive and consulting website and promotions like free samples, exchange of used creams.

Management decision Problem

How to gain market leadership in Indian anti-ageing segment

Management Research Problem

To identify the factors which influence purchase decision of Indian consumers.

Research Methodology
Exploratory research is done on the information collected single cross-section design Scaling and measurement of research design varies, Questionnaire design Convenient sampling

RESEARCH QUESTIONS AND THE HYPOTHESIS

1. Does age have relation with use of anti-ageing products to consumers Ho: Age doesnt have relation with use of anti-ageing products to consumers H1: Age have relation with use of anti-ageing products to consumers 2. Does Income have any relation with use of anti-ageing products to consumers Ho: Age doesnt have relation with use of anti-ageing products to consumers H1: Age have relation with use of anti-ageing products to consumers

Continued

3. Does Brand name affects the purchase decision? H0: Brand Name doesnt affect the purchase decision H1: Brand Name affects the purchase decision

4. Does Quality affects the purchase decision?

H0: Quality doesnt affect the purchase decision H1: Quality effects the purchase decision

Continued
5. Does Price affects the purchase decision? H0: Price doesnt affect the purchase decision H1: Price affect the purchase decision 6. Does Promotional schemes affect the purchase decision? H0: Promotional Schemes doesnt affect the purchase decision H1: Promotional schemes effect the purchase decision

Continued

7. Does marketing (consulting) affect the purchase decision?

H0: marketing doesnt affect the purchase decision H1: marketing affect the purchase decision 8. Does packaging affect the purchase decision?
H0: packaging doesnt affect the purchase decision H1: packaging effect the purchase decision

Continued

9. Distribution (availability) affects the purchase decision?

H0: Distribution doesnt affect the purchase decision H1: Distribution affect the purchase decision

Questionnaire
Which Anti-Ageing treatment do you prefer to use or recommend? * Botox *Laser Treatment/Surgery * Anti-ageing Cream *Home made pastes None

2. If you go for Home made pastes, what restricts you to go for other available solutions? * Fear of side effects * Unavailibility/Difficulty in use * You don't see others using it * I don't use home made pastes * High cost

3. When we say Anti-ageing cream, which all Brands come to your mind?
4. Please rank the following parameters on a scale of 1-5 which you consider imoportant when you purchase anti-ageing cream. Sound quality Brand name Ease of use Consulting Appearance/Styling Promotional Schemes Availability Price

5. Please mention from where you mostly purchase your beauty products. Beauty parlour Retail stores Online purchase I don't mind about place 6. You decide the Brand to purchase... before going to store in the store 7. Are you familiar with the brand OLAY Never heard of it I am aware but never used it Used it only sometimes Use it on a regular basis

8. How did you hear about OLAY? TV Magazines Internet Friends Beautician

9. Would you recommend OLAY to your friend or associate? Please tick one

10. Please fill the following details (optional) Name Age Gender Annual Household Income

Which Anti-Ageing treatment do you prefer to use or recommend?

50 45 40 35 30 25 20 15 10 5 0

% users no. of users

no. of users % users

what restricts you to go for other available solutions?

I don't use home made pastes

I don't see others using it

Unavailibility/Difficulty in use

number % users

High cost

Fear of side effects

0 10 20 30 40 50 60

Please rank the following parameters on a scale of 1-5 which you consider important when you purchase antiageing cream.
Sound quality Brand name Ease of use Consulting Appearance/Styling Promotional Schemes Availability Price

Please mention from where you mostly purchase your beauty products
I don't mind about place

Online purchase

number % users

Retail stores

Beauty parlour

10

20

30

40

50

60

70

80

You decide the Brand to purchase...

number

in the store

before going to store

% users

10

20

30

40

50

60

Are you familiar with the brand OLAY

80 70 60 50 40 30 % users number

20
10 0 Never heard of it I am aware but never used it Use it only sometimes Use it on a regular basis

How did you hear about OLAY?

% users

TV Magazines Internet Freinds Beautician

Conclusions

By this Exploratory research thumbed on factors which affect consumer buying behavior .

Guide lines for Descriptive Research

Limitations

Response errors Background noise Industry experts access

Economical limitations

References
www.olay.com Rashi Mittal, P&G , mittal.r.2@pg.com Ramchandram Dhannaram Managing Partner - Solus Media 0091-40-23230750 www.datamonitor.com www.search-ebscohost.com http://www.censusindia.gov.in/Census_Data_20 01/Census_Data_Online/Social_and_cultural/A ge_Groups.aspx

Thank You