COMPARATIVE STUDY OF PRODUCTS,

PRICES AND PACKAGING OF

COSMETIC INDUSTRY

Prepared for
Ozone Ayurvedics

Prepared by
Chhavi Raj

UNIVERSITY SCHOOL OF MANAGEMENT STUDIES

 Guru Gobind Singh Indraprastha University
Kashmere Gate, Delhi-110006

Certificate Of Completion And Originality Of Work

This is to certify that the project report titled “Comparative Study of Products, Prices
and Packaging of Cosmetic Industry” has been accomplished by Mr. Chhavi Raj
under my guidance and supervision.

This project is being submitted by him in the partial fulfillment of requirements for the
award of the Master’s Degree in Business Administration from University School of
Management Studies, Guru Gobind Singh Indraprastha University.

This work has not been submitted by him anywhere else for the award of any degree or
diploma. All source of information and help have been duly mentioned and
acknowledged.

Mr Sandeep Ghosh
General Manager-Sales
Ozone Ayurvedics
 ACKNOWLEDGEMENT

Preparing a project of this nature is an arduous task and I were fortunate enough to get
support from a large number of persons to whom I shall always remain grateful.

I would like to record gratitude to Ozone Ayurvedics for allowing me to undertake this
project.

I take this opportunity to thanks Mr. Sandeep Ghosh, General Manager-Sales and Ms.
Smita Singh, MT-HR for providing me an opportunity to work for Ozone Ayurvedics.

I am also desirous of placing on record profound indebtedness to Prof. Meenakshi Handa,

faculty member, University School of Management Studies, for the valuable advice,
guidance, precious time and support that she offered.

I would be failing in my duty if I do not acknowledge the gratitude to Dr. Ajay Pandit,
DEAN, University School of Management Studies, who motivated me a lot in carrying
out this project.

Last but not the least, I would also like to thanks all the respondents for giving me their
precious time and relevant information and experience, I require which this project would
have been a different story.

Chhavi Raj
 PREFACE

In general, the cosmetic industry uses very strong chemicals and unnatural colours which
create, when used continuously, skin irritations, patches, decolouration of the skin etc.
Experiencing these hazardous results, the herbal cosmetic products are finding the place
in the consumers’ mind frame. Also, it is evident from the market trends and study
conducted by MICA that herbal cosmetic products are preferred and well acceptable to
the customers as Ayurveda is well known for permanent cure for ailments. Greater health
awareness, changing trends of self-grooming, changing lifestyles, etc are some of the
factors behind the boom in the herbal products industry. The personal care products
industry in India is value at Rs. 2500 crores in consumer price terms. The herbal cosmetic
segment is witnessing a growth rate of 60% and more compared to 20-25% of the total
industry.

The herbal products are no longer perceived as luxuries and consumed daily as personal
care products. The growth of herbal cosmetics industry is unlimited with the per capita
consumption being low in India.

Seeing this trend and changing consumer preferences, many players have started
launching their products in the natural or herbal segment. The market is witnessing a
plethora of new brands in the category being launched on daily basis. The shelf space is
increasingly being occupied by these products. The well-established and renowned
brands like Shahnaz Hussain, Biotique, etc are having the major pie in the market and
have posed barrier to entry for new entrants. Foreign players such as Garnier and Revlon
have also succeeded in portraying them as leading houses. Still, many facing the barrier
are to design move to enter into the market.

There is a stiff competition among various production houses to emerge as the market
leader and are flooding with ideas to bring in innovative products and packaging and
competitive prices. This has further worsened the situation for the new entrants. Thus,
studying the market trends and consumer preferences for leading herbal houses may help
these new entrants to make strategic move for having pie in the India cosmetic segment.
It is also necessary to bring in stiff competition among various players to make Indian
market nearly similar to perfectly competitive market so that consumers can get both the
quality and products at cheaper and affordable rates.

Chhavi Raj
 Table of Contents

S.No. CHAPTERS Page

1. Executive Summary 1
2. Introduction 4
3. Literature Review 6
4. Research Study 10
Research Objectives
10 Research Methodology
10 Research Methodology adopted
14
5. Overview of Various Companies 15
Shahnaz Hussain
15 Biotique
25 Naturence
34 Himalayas
48
Lotus herbals 56
Ayur
67 VLCC
75
Loreal (Garnier) 82
6. Data Analysis and Interpretation 89
7. Conclusions 93
8. Recommendations 95
9. Limitations 97
Annexures
98
i. Questionairre 99
ii. Cards. 107
Bibliography
123