This action might not be possible to undo. Are you sure you want to continue?
in Partial fulfillment of the requirement for the award of the Degree of Master of Business Administration.
by Samra Mahboob MBA Integral University,Lucknow Roll no: 1100122130 Under the guidance of Zahid Raza Khan Asst. Professor, Marketing Integral University
I would like to categorically mention that the work here has neither been purchased nor acquired by any other unfair means. analyzed and documented for the project is authentic possession to me. However.Declaration I hereby that I have worked on the topic “BUYING BEHAVIOR OF CONSUMER TOWARDS COSMETICS IN LUCKNOW (Special preference to Lakme)” All the information that has been collected. Samra Mahboob . for this purpose of the project. The data and information existing in this report are accurate and update to the current data. All information in this report is true representation of what I have experienced during the project. to the best of our knowledge. information already compiled in many sources has been utilized.
to my parents. for all the tea and care with which they overwhelmed me through these long months of creation. I sincerely hope that my first venue in this field is appreciated. I am grateful to them those given me this opportunity to work on such type of project. Department of Management & Research . left no stone unturned in guiding me along the course of my Project work. Finally. which lacks these two determinants of success. Prof. who was in the role of my Faculty Guide. Faculty Member. it is not possible for me to complete the project. It was an opportunity and great pleasure for me to be in such an environment and having interaction with concerned people. Offering thanks. It is a Herculean task. Samra Mahboob . without their. Zahid Raza Khan. I express my heartily respect and profound thanks for their enlightening and meticulous guidance for the consummation and evaluating of this project. These are two factors that go a long way in achieving it.Acknowledgement Co-operation and building up of moral are the essence of success.
of which the U. influence of satellite television and greater product choice and availability.S. The low market penetration of many cosmetics and personal care products offers room for growth. changing life styles. . and hair care products are some of the major segments with promising prospects for U. has a share of approximately 10 percent. The growing Indian cosmetics market offers promising prospects for international brands. increasing disposable incomes. the use of cosmetics by Indian consumers has increased significantly with more and more women and men taking greater interest in personal grooming.S. The urban population with increasing purchasing power is the major force driving demand for cosmetics and toiletries.Executive summary About the project Within a short span of the last five-six years. Penetration of most cosmetic and toiletries is very low in India. Perfumes and fragrances. Current consumption of many products is well below that of many countries in Asia. This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. companies. India is a very pricesensitive market and mass-market products constitute the major part of the cosmetics and toiletries market. The growth rate in the cosmetics market reflects an increasing demand for beauty care products in India. India’s import of cosmetics and toiletries and intermediate raw materials is around US$ 120 million. skin care.
2) To find out the variety of cosmetics. . 6) Consumer perception towards the cosmetics ads. which are popular for the particular type of product. 4) The expenditure and the frequency of using the cosmetics. the women and students prefer most. The objectives of this project titled "consumer behaviour regarding purchase of cosmetics" were: 1) Finding major factors that influence the purchase decision of consumers to purchase cosmetics. Without setting objectives any research would be meaningless and all the efforts of the researcher will go in vain. 5) Determining the sources from where the women get theinformation about cosmetics.Objective of Study Objectives are the route map of any research. 3) The brands. 7) Whether they are influenced and inspired by the ads.
the fastest growing segment is color cosmetics. Current per capita expenditure on cosmetics is approximately US$ 0. higher disposable incomes. while the premium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent in nail enamels. now bought over by Hindustan Unilever (HUL) of the Unilever group. The current size of the Indian cosmetic market is approximately US$ 600 million.68 cents as compared to US$ 36. with changing lifestyles. The color cosmetics . However. penetration of satellite television. Of this.S. Tips & Toes.INTRODUCTION High priestess of sacred Indian temple meets English army officer who's unwittingly strayed into holy ground. accounting for around US$ 60 million of the market. the per capita consumption of cosmetics is very low in India. They fall in love. Her orthodox father vows vengeance. and Revlon dominate the US$ 60 million color cosmetics market. from which Simone Tata borrowed the name Lakmé (French for Lakshmi. and L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. That's the story of Lakmé. Revlon of the U. Lipsticks account for nearly a third of the market at US$ 21 million. Even with a 20 percent average growth rate. Growth has come mainly from the low and medium-priced categories that account for 90 percent of the cosmetics market in terms of volume. Multinationals. awareness of the western world and growing importance of beauty pageants.65 in other Asian countries. while the market for nail enamels is estimated at around US$ 23 million... a 19th century opera written by Frenchman Leo Delibes. a brand originally introduced by the Tata group of India. Lakme. another domestic player. Industry sources estimate a rapid growth rate of 20 percent per annum across different segments of the cosmetics industry reflecting an increasing demand for all kinds of beauty and personal care product. increasing advertising. there have been significant changes and use of cosmetics is on the rise. Mass-market products account for a major share. the name of the priestess).
Fair & Lovely of the HUL group with a 50 percent market share. Morison that markets the Nivea range of products in India. . These companies initially gained sales on their international brand image. Godrej and Revlon. The major players in this segments are Lakme. Penetration levels of international cosmetics brands in India are still low. Moisturizing lotions. repeat purchases were not forthcoming and to retain their sales growth. Ponds. Industry estimates suggest that there are close to 10 million such women in India. A major reason for low penetration of international brands can be attributed to high pricing.segment is very competitive and has a high penetration level of 80 percent. Urban women in the middle and upper income groups in the age range of 2350 is the target group for international brands. Within the last decade. this segment has seen many consumers slowly shift from the mass to the premium end of the market. as this group looks for better products and is willing to pay a premium for international quality products. price and volume played an equal role in value growth. In the skin-care segment. several foreign companies reformulated price strategies to tap the large Indian middle class. The skin care market in India is estimated at US$ 180 million. followed by players such as J. fairness creams and face cleansers are the popular categories in the skin-care segment and account for approximately 60 percent of the skin-care segment. The penetration rate is high in the skin-care segment as compared to color cosmetics. Foreign brands currently constitute only 20 percent of the market.L. however.
and Rexona.Company Profile Hindustan Unilever Limited Chairman: Harish Manwani CEO and Managing Director: Douglas (Doug) Baillie Director. shampoos and hair coloring brands including Sunsilk Naturals and Clinic. toothpaste. HUL has developed a line of food items. as well as the ice cream brand Kwality Wall's. is India’s largest consumer products company and was formed in 1933 as Lever Brothers India Limited. It is currently headquartered in Mumbai India and its 41. . shampoo deodorant. primarily under the Kissan and Knorr Annapurna brands. It is Fast-Moving Consumer Goods (FMCG) Industry that includes detergents. Lifebuoy. the non-executive chairman of the board. The company's cosmetic line is led by the Lakme brand. and cosmetics HUL's personal care brands include soap brands such as Lux. and oral care brands Pepsodent and Close-Up.000 employees are headed by Harish Manwani. and other personal care items. soap. In addition to the FMCG segment. Sundaram Hindustan Unilever Limited (abbreviated to HUL). Breeze. HUL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand. Dove. skin care brands Fair & Lovely and Pond's. Finance and IT: D. formerly Hindustan Lever Limited . Liril. Pear's.
They strive to meet everyday needs of nutrition.. and get more out of life”. by making a real difference to every Indian. look good. and personal care products that help people “feel good. STRATEGY Grow ahead of the market by leading market development Activities Leverage positive impact of growing Indian economy on consumer spending Grow a profitable foods and Top end business Grow the bottom-line ahead of top line Strong commitment to sustainable development . HLL follows its parent company’s mission to “add vitality to life”.VISION To earn the love and respect of India. hygiene.
Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty.'' The positioning bit. A brand that has over 5 decades talked of beauty is none other than Lakmé. Lakme today has grown to have a wide variety of products and services that cover all facets of beauty care. These include products for the lips. Launched in 1952.that of skincare and cosmetic products. Chopra accepts that distribution has been the company's Achilles heel for some time: ''The supply-chain hasn't been as robust as it should have been. Lakme. it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. as India took her steps into freedom. Lakmé also understands the importance of maintaining and accentuating a women’s natural beauty. India's first beauty brand was born. Lakme tapped into what would grow to be amongst the leading. A brand that has over 5 decades talked of beauty is none other than Lakmé. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. In 1998.Lakme Half a century ago. it offered a range of cosmetics with nail polishes & lipsticks from the early 80’s. and services like the Lakme Beauty Salons. Armed with a potent combination of foresight. for this it has introduced a range of skincare products from 1987. A little bit of Lakmé history: In 1995. but that has been the result of our efforts to reposition and reintroduce the brand. nails. face and skin. Only. and arm the consumer with products to pamper herself from head to toe. Lakme has grown to be the market leader in the cosmetics industry. Lakmé Ltd (a Tata Group company) and HLL formed a 50:50 venture Lakmé Lever that would market and distribute Lakmé's products. although complex. These ranges have been constantly innovated to bring specialized beauty care and complete the range for the definitive women. the years between 1995 and 2000 saw HLL wrestling with several issues with a bearing on Lakmé's future. is clear: . At a time when the beauty industry in India was at a nascent stage. Lakmé sold its brands (and the 50 per cent it owned in the JV) to HLL. Launched in 1952. for this it has introduced a range of skincare products from 1987. renamed itself Trent and entered a different business (retail). high consumer interest segments in the Indian Industry . research and constant innovation. eyes.
And fashion consultants like Meher Castelino believe the brand commands an edge at the high-end: ''By appropriating the fashion platform for itself.'' . Lakmé. are already slugging it out. the company's nontransfer lip-colour range follows in the wake of Maybelline's launch of a similar range. he says ORG-MARG does not have a representative sample of the 60.'' Chopra is quick to rubbish this claim. it is conceivable that Lakmé's new-found aspirational strategy could have been brought about by competitors like Revlon and Maybelline.000 outlets through which colour cosmetics are sold in India. ranging from Revlon (through Modi Revlon) to Chambor. Says Meghna Modi.Ponds is Lever's primary skincare brand. which also has a presence in skincare. its aspirational colour cosmetics brand. Lakmé has entrenched itself at the glamour-end. we have an 84 per cent share of the premium end of the colour cosmetics market. and its new nail-enamel colours come soon after Maybelline and Revlon launched their nail-enamel range. Indeed. Executive Director. which targeted this segment. Still. Modi Revlon: ''The numbers say it all. 26. The 'aspirational' qualification would mean Lakmé would compete at what the company terms the 'upper-mass' (premium) end of the colour cosmetics spectrum (products priced between Rs 85 and Rs 250) where a slew of competitors. The company's defense is that it takes at least 15 months from the conceptualization to the actual launch of products. According to ORG-MARG's retail audit.
Spurious/counterfeit products in rural areas and small towns. Building brand image by collaborating with top designers in Lakme Fashion week Threats : Aggressive price competition from local and multinational players.SWOT ANALYSIS Of LAKME Strengths : local brand of specific relevance to India. Integrated supply chain and well spread manufacturing units. Non Existence of brand image in long Run . Falling Quality of Lame salons Opportunities : Brand growth through increased consumption depth and frequency of usage across all categories. Ability to deliver Cost Savings. Access to Unilever global technology capability and sharing of best practices from other Unilever Weaknesses : Price positioning in some categories allows for low price competition. well linked with business. Varying quality range in its products. Strong R&D capability. Upgrading consumers through innovation to new levels of quality and performance.
. Also the level of : Brand awareness. understanding their beauty needs. Visibility of brand personality. Expectancy of Communication All these factors were the prime criterion for selecting (Which brand??). Price level. Short listing and ranking (level of trustworthiness? or most favoured ) which had helped us for identifying the winner in cosmetics industry.what aspire them to go for the (lakme)brand.RESEARCH METHODOLOGY The research is based on:Primary Data 1) Questionnaire Secondary Data Internet Company Reports& Broachers Magazines Newspapers Articles &journals Data is also gathered by talking to the respondents (Target Audience.
J. Donald R.P Gupta . 2005 Business Statistics . edition 2005 Tata Mc graw-Hill Edtion . References www. Business Statistics.hll.hindubusinessline.com www.com www.economictimes.financialexpress. Pamela S.lakmeindia. Keller Lane Kevin marketing .com www.com www. prentice hall of India . Business research methods . K Sharma . Schindler.Cooper .BIBLIOGRAPHY Kotler Philip . 14th edition .com . 2005 S.