Major Project Report

on

A study of Consumer Preference towards two leading

Makeup Brands
Lakme or L’oreal

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Dr. Sunitha Ravi Submitted by: Manvi Malik

Roll No.: 03721101717
Batch (2017-20)

Nurturing Excellence

Institute of Information Technology & Management,

New Delhi – 110058
(2019-2020)
 Certificate

I, Ms. MANVI MALIK , Roll No. 03721101717 certify that the Project Report on (BBA-

312) entitled “A STUDY OF CONSUMER PREFERENCE TOWARDS LEADING

MAKEUP BRANDS” is done by me and it is an authentic work carried out by me. The

matter embodied in this project work has not been submitted earlier for the award of any

degree or diploma to the best of my knowledge and belief.

SIGNATURE OF THE STUDENT:

DATE:

Certified that the Project Report (BBA-312) entitled “A STUDY OF CONSUMER

PREFERENCE TOWARDS LEADING MAKEUP BRANDS” done by Ms. MANVI
MALIK, Roll No. 03721101717, is completed under my guidance.

Signature of the Guide

Date:
Name of the Guide:
Designation:
Address:
Institute of Information Technology
& Management, New Delhi-110058

Countersigned

Director/Project Coordinator

2
 ACKNOWLEDGEMENT

This project bears silent testimony to the positive efforts, patience and knowledge of all

those who guided me. I take this opportunity to thank a number of people who helped me

during my project with their constructive criticism, helpful suggestions and overall

support. In particular I wish to thank

Dr.Sunitha Ravi who has provided me the guidance in conceptualizing and executing this

project. She has been with me from the assigning of the problem to the analysis phase and

then later to the presentation. She has enriched me with helpful suggestions on all matters.

This project could never have materialized without his constructive criticism and constant

monitoring. I would like to thanks everybody who had a role to play in the making of my

project.

MANVI MALIK

3
 List of Figures

S.No. Name Page No.

1 Gender of Respondents 33

2 Age of Respondents 34

3 Occupation of Respondents 35

4 Respondents wear Makeup or not 36

5 Respondents wear Makeup how often 37

6 Respondents use which makeup product the 38

most

7 Respondents use which makeup brand 39

8 According to Respondents which has a 40

better durability

9 According to Respondents which has a 41

better varieties

10 How highly are Respondents satisfied with 42

Lakme
How highly are Respondents satisfied with
L’oreal
11 43

Will Respondents recommend Lakme to

4
 12 other people 44

Will Respondents recommend L’oreal to

other people
13 45
Respondents suggestion/opinions
14 46

CONTENTS

S. No. Topic Page No

1.

Certificate (s)

2.

Acknowledgements

3.

List of Figures

9. 8

Chapter-1: Introduction

10.

Chapter-2: Literature Review

11.

Chapter-3: Methodology

5
12.

Chapter-4: Data Analysis and Interpretation

13.

Chapter-5: Findings and Conclusion

14.

Bibliography

15.

Appendices

6
 Chapter 1

Introduction

Cosmetics

Cosmetics are products used to enhance or change the appearance of the face, fragrance or

the texture of the body. Many cosmetics are designed for use of applying to the face and

body. They are generally mixtures of chemical compounds derived from natural sources

(such as coconut oil), or may be synthetic or artificial. Cosmetics that are applied to the

face to enhance one's appearance are also known as makeup which include items such

as; lipstick, mascara, eye shadow, foundation, blush, highlighter, bronzer and several

other products.

History

7
Cosmetics have been in use for thousands of years. The absence of regulation of the

manufacture and use of cosmetics has led to negative side effects, deformities, blindness,

and even death through the ages. Examples are the prevalent use of ceruse (white lead), to

cover the face during the Renaissance, and blindness caused by the mascara Lash Lure

during the early 20th century.

Egyptian men and women used makeup to enhance their appearance. They were very fond

of eyeliner and eye-shadows in dark colors including blue, red, and black.

Ancient Sumerian men and women were possibly the first to invent and wear lipstick,

about 5,000 years ago. They crushed gemstones and used them to decorate their faces,

mainly on the lips and around the eyes. Also around 3000 BC to 1500 BC, women in the

ancient Indus Valley Civilization applied red tinted lipstick to their lips for face

decoration. Ancient Egyptians extracted red dye from fucus-algin, 0.01% iodine, and

some bromine mannite, but this dye resulted in serious illness. Lipsticks with shimmering

effects were initially made using a pearlescent substance found in fish scales, which are

still used extensively today. Six thousand year old relics of the hollowed out tombs of

the Ancient Egyptian pharaohs are discovered.

According to one source, early major developments include:

• Kohl used by ancient Egypt as a protectant of the eye.

• Castor oil used by ancient Egypt as a protective balm.

• Skin creams made of beeswax, olive oil, and rose water, described by Romans.

• Vaseline and lanolin in the nineteenth century.

Most cosmetics are distinguished by the area of the body intended for application:

8
• Lipstick, lip gloss, lip liner, lip plumper, lip balm, lip stain, lip conditioner, lip primer,

lip boosters, and lip butters: Lipsticks are intended to add color and texture to the lips

and often come in a wide range of colors, as well as finishes such as matte, satin, gloss

and lustre. Lip stains have a water or gel base and may contain alcohol to help the

product stay on leaving a matte look. They temporarily saturate the lips with a dye.

Usually designed to be waterproof, the product may come with an applicator brush,

directly through the applicator, rollerball, or could be applied with a finger. Lip

glosses are intended to add shine to the lips and may add a tint of color, as well as

being scented or flavoured. Lip balms are most often used to moisturize, tint, and

protect the lips. Some brands contain sunscreen. Using a priming lip product such as

lip balm or chapstick can prevent chapped lips.

• Primer is used to set the face before makeup is applied. This creates another layer

between the skin to prevent acne and makeup clogging up pores. Primer creates an

even tone throughout the skin and makes makeup last longer. Primer is applied

throughout the face including eyes, lips, and lashes. This product has a creamy texture

and applies smoothly.

• Concealer covers imperfections of the skin. Concealer is often used for any extra

coverage needed to cover acne/pimple blemishes, under eye circles, and other

imperfections. Concealer is often thicker and more solid than foundation, and

provides longer lasting; more detailed coverage as well as creating a fresh clean base

for all the rest of the makeup. This product also brightens up the skin and applying

under the foundation can remove blemishes and discoloration because of acne scars.

Some formulations are intended only for the eye or only for the face. This product can

also be used for contouring the face like ones nose, cheekbones, and jaw line to add a

9
more defined look to the total face. In that case, adding a setting powder will add a matte

finish.

• Foundation is used to smooth out the face by covering spots, acne, blemishes, or

uneven skin tone. These are sold in a liquid, cream, or powder, or more recently in a

mousse. Foundation provides sheer, matte, dewy or full coverage. Foundation primer

is applied before foundation to fill out pores, create a dewy look or create a smoother

finish. They usually come in cream formulas to be applied before foundation as a

base.

• Face powder sets the foundation and under eye concealer, giving it a matte finish

while also concealing small flaws or blemishes. It can also be used to bake the

foundation, so that it stays on longer and create a matte finish. Tinted face powders

may be worn alone as a light foundation so that the full face does not look as caked-up

as it could.

• Rouge, blush, or blusher is cheek coloring to bring out the color in the cheeks and

make the cheekbones appear more defined. Rouge comes in powder, cream, and liquid

forms. Different blush colors are used to complement different skin tones.

• Highlight, used to draw attention to the high points of the face such as the

cheekbones, below the eyebrows, nose, upper lip, and collar bones. This product also

adds a glow; comes in liquid, cream, and powder forms. It often contains a substance

to provide shimmer. Alternatively, a lighter-toned foundation/concealer can be used.

• Bronzer gives skin a bit of color and contours the face for a sharper definition or

creates a tan-look. Bronzer is considered to be more of a natural look and can be used

for everyday wear. Bronzer enhances the color of the face. It comes in matte, semi-

matte/satin, or shimmer finishes.

10
• Mascara is used to darken, lengthen, thicken, or draw attention to the eyelashes. It is

available in various colors. Some mascaras include glitter flecks. There are many

formulas, including waterproof versions for those prone to allergies or sudden tears. It

is often used after an eyelash curler and mascara primer. Many mascaras have

components to help lashes appear longer and thicker.

• Eye shadow is a pigmented powder/cream or substance used to accentuate the eye

area, traditionally on, above, and under the eyelids. Many colours may be used at once

and blended together to create different effects using a blending brush. This is

conventionally applied with a range of eyeshadow brushes, though it isn't uncommon

for alternative methods of application to be used such as fingers. However, it is

important to have clean fingers because oils from your skin can result in pimples.

• Eye liner is used to enhance and elongate the apparent size or depth of the eye. For

example, white eyeliner on the waterline and inner corners of the eye makes the eyes

look bigger and more awake. It can come in the form of a pencil, a gel, or a liquid and

can be found in almost any color. Conversely, black eyeliner makes eyes look smaller,

brightens up the face and draws attention to the eyes.

• Eyebrow pencils, creams, waxes, gels, and powders are used to color, fill in, and

define the brows. Popular in recent years, the "Instagram look" is creating fuller

eyebrows by filling it, sharper angles, and adding gel to set it.

• Nail polish is used to color the fingernails and toenails. Transparent, colorless

versions may strengthen nails or be used as a top or base coat to protect the nail or

polish. This can be found in gloss, matte, and powder.

• Setting spray is used as the last step in the process of applying makeup. It keeps

applied makeup intact for long periods. An addition to setting spray is setting powder,

11
 which may be either pigmented or translucent. Both of these products claim to keep

makeup from absorbing into the skin or melting off.

• False eyelashes are used when exaggerated eyelashes are desired. Their basic design

usually consists of human hair, mink hair, or synthetic materials attached to a thin

cloth-like band, which is applied with glue to the lash line. Designs vary in length and

color. Rhinestones, gems, and even feathers and lace occur on some false eyelash

designs. Eyelashes can be purchased in several drug or beauty supply stores and can

be applied with eyelash glue. These eyelashes are not permanent and can be taken off

easily by gently taking them off with your fingers.

• Contouring is designed to give shape to an area of the face. The aim is to enhance the

natural shading on the face to give the illusion of a more defined facial structure

which can be altered to preference. Brighter skin coloured makeup products are used

to 'highlight' areas which are wanted to draw attention to or to be caught in the light,

whereas darker shades are used to create a shadow. These light and dark tones are

blended on the skin to create the illusion of a more definite face shape. It can be

achieved using a "contour palette" - which can be either cream or powder.

Lakmé

Lakmé is an Indian cosmetics brand which is owned by Hindustan Unilever.

Having Kareena Kapoor and Ananya Pandey as the ambassador, it ranked at number 1

among the cosmetics brands in India. Lakme started as a 100% subsidiary of Tata Oil

Mills. It was named after the French opera Lakmé, which itself is the French form

of Lakshmi (the goddess of wealth) who is renowned for her beauty. It was started in 1952

12
famously, because then Prime Minister Jawaharlal Nehru was concerned that Indian

women were spending precious foreign exchange on beauty products and personally

requested JRD Tata to manufacture them in India. Simone Tata joined the company as

director and went on to become the chairperson. In 1996, Tata sold off their stakes in

Lakmé Lever to HUL, for Rs 200 Crore (45 million US$).

In the Brand Trust Report 2012, Lakme was ranked 104th among India's most trusted

brands and following year it was ranked 71st on the list. In 2014, Lakme was ranked 36th

among India's most trusted brands according to the Brand Trust Report 2014.] The

company is the title sponsor for Lakme Fashion Week (LFW) a bi-annual fashion event

which takes place in Mumbai.

13
SWOT Analysis

Strengths of Lakme

1. High Brand awareness: Lakme is a well-known brand in the cosmetic & beauty

industry. High visibility through targeting high end beauty parlours/salons & also

through sponsoring fashion events and strong promotions has helped the company

in making top of mind awareness.

2. Fantastic product line: Lakme contributes to the beauty of women through a

fantastic product line, which has amazing depth of products. Lakme is also known

14
 to launch a variety of cosmetics which are innovative and are known to solve the

problem of cosmetics for women.

3. Extensive distribution system of the parent company: HLL is the parent company

who purchased it from TATA group. Since HLL is already an established FMCG

brand so it uses extensive distribution channel to make the Lakme products

available in the market. Also in addition to traditional channel, it also uses

unconventional distribution system to make the products available at pharmacist,

beauty parlours & salons.

4. Celebrity endorsement: Lakme positioned perfectly in the mind of prospective

consumers by targeting apt celebrities to represent their brand.

5. Strong parent company: HLL the parent company is the well-known company in

the FMCG industry has stable financial position which is good for its group

brands.

Weaknesses of Lakme

1. Limited presence in the premium market: Lakme have presence in the VFM

(Value for money) segment in which it is leader. Lakme is the overall market

leader in the color cosmetic segment (lip care and nail enamel) with a wide range

of products and prices but when it comes to premium market which is growing at

the rate of 30% Revlon is the market leader.

2. Problem of differentiation: Its portfolio sometimes creates confusion in the mind

of the consumers. Such that, some products are known to be very good but others

are ignored because no differentiation is present for them.

15
3. Quality of Lakme salons: Falling quality of Lakme salons will result in the

negative word of mouth which can affect sales & growth of the company in future.

Opportunities of Lakme

1. Changing lifestyle: Migrating population & with the saturation of developed

economies, changing taste & preferences, Education & changing lifestyle of the

developing economies had resulted into growth in the grooming

segment. People now want to look sharp, smart & confident.

2. Growing premium segment: There is a growth in the demand of premium

segment goods of which grooming industry is not an exception. So with growing

demand if Lakme extend its presence in this segment then it will help it in

becoming a leader in grooming industry.

3. Co-creating the growth strategies: Creating more Collaborative & participative

community focused activities will help the company in building brand image &

co-creating growth opportunities.

Threats of Lakme

1. Intense rivalry: Intensive competition from the local, national

& International players on price & availability factors is the major threat for the

players in the segment which is affecting the industry as a whole.

2. Counterfeit products: Fake products are directly affecting the brand image of the

company in the rural market & small towns.

3. International brands extending into other markets: International brands like Revlon

which have centuries of expertise in the Personal care industry can affect the

business of Lakme in the selected markets or can limit their growth rate.

16
 4. Increasing allergies cases: Due to change in the lifestyle skin is becoming more

sensitive due to which companies in the personal care industry face risk of losing

sales on allergic grounds.

L'Oréal

The L'Oréal Paris Brand Division of L'Oréal USA, Inc. is a total beauty care company that

combines the latest in technology with the highest in quality for the ultimate in luxury

beauty at mass.

L'Oréal Paris is a truly global beauty brand with many internationally renowned products.

For most, the name “L'Oréal” is immediately evocative of the brand’s signature phrase,

"Because I'm Worth It.”— The concept behind the legendary advertising campaign for the

Superior Preference® hair color launch in 1973. Today, it represents the essence of the

17
L'Oréal Paris brand as a whole, a spirit which is about helping every woman embrace her

unique beauty while reinforcing her innate sense of self-worth.

As the biggest beauty brand in the world, L'Oréal Paris has an unparalleled commitment

to technology, research and innovation and providing ground breaking, high-quality

products for women, men, and children of all ages and ethnicities. L'Oréal Paris is notably

dedicated to celebrating the diversity of beauty – the company’s broad range of

spokespeople includes Andie MacDowell, Eva Longoria, Doutzen Kroes and Liya

Kebede.

18
SWOT Analysis

Strengths of L’oreal

1. No one has a bigger share in the beauty and cosmetic world than L’oreal. Many

companies decide to branch into this industry with a product line or two. But

L’oreal is fully invested in this space and has been since they were founded.

You’ll see the L’oreal brand while walking through the makeup, hair, and skincare

19
 aisles of your local department store. L’oreal’s portfolio of products is astounding.

Garnier, Nyx, Maybelline, LANCOME… the list continues. L’oreal clearly

dominates this industry because they’ve acclaimed such high profile brands under

their name.

2. L’oreal doesn’t just offer inexpensive, department store products. They’ve also

moved into the luxury brand, offering high-quality products for the individual who

shops on a richer budget. Or if a customer wants a bit of both worlds — cost-

effective and expensive — they can easily find what they’re looking for through

L’oreal.

3. L’oreal’s catalogue boasts brands from all over the world. And you can find

L’oreal in more than 120 countries. They manufacture and distribute products in

bulk which is less expensive than buying small quantities at a time.

4. Consumers want glowy skin and healthy hair. And for many, that means less

chemicals and questionable ingredients in their hair and skin products. It’s more

costly for companies to use natural ingredients, but L’oreal didn’t hesitate. On top

of putting an end to testing on animals in 1987, they now offer a complete natural

and organic line of products.

5. Because L’oreal has so many products in different niches of the beauty and

cosmetic industry, the company relies heavily on research and development.

Consumers want products that work, but are also safe for their bodies. That means

understanding how to offer sun protection in skin care and makeup products. And

cutting out sulphates, parabens, and silicones from hair products. L’oreal works

20
 with dermatologist, cosmetologists, and scientists to provide the top-of-the-line

products customers crave.

Weaknesses of L’oreal

1. It seems there’s a new hair care line debuting every day now. More products for

straight hair, curly hair, blondes, and specific ethnicities are vying for attention.

Although these are all just segments in the hair care industry, it is affecting

L’oreal. Even though the company may not be worrying about these new names,

they’re still competing with other big companies. Like Sunsilk and Head and

Shoulders.

2. L’oreal heavily invests in research in development. They must if they want to keep

their customers happy. Unfortunately, it’s massively expensive. And it’s eating

away at their profits — at least in comparison to the competition. Still, focusing so

heavily on research and development is how L’oreal has stayed competitive in this

saturated market. So this is both strength and a weakness for the brand.

3. Since L’oreal offers so many products, they require a number of subdivisions to

handle everything. As such, they have more than 60,000 employees accounting for

product development, manufacturing, disbursement, and customer service. The

company’s human capital expenditure is no joke. But neither are the problems.

Relying on so many people to manage products leads to issues, such as slowness.

Opportunities of L’oreal

21
1. L’oreal can easily move into newer spaces in the beauty industry, like the personal

care sector. People are always looking for the newest, best product for their body.

The likelihood of that changing any time soon is basically zero percent. L’oreal

can branch out into developing economies and countries where saturation isn’t as

prevalent. They have the means and the brand recognition to achieve this.

2. New products for niche consumers. This is where L’oreal should put more

emphasis. Although L’oreal does have a focus on curly hair and darker skin tones,

they’re competing against companies who only work in these niches. Since L’oreal

is in nearly every sector of the cosmetic and beauty world, some people are less

inclined to work with them. Mostly because L’oreal provides products for

everyone rather than one specific demographic. This can mean the company isn’t

“focused”. But L’oreal has the means to change customer minds.

3. Eco-friendly shoppers want products that are both helpful for their body, but not

taxing on the environment. Other customers are looking for specific products that

are sulphate, paraben, and silicone-free. The demand for natural and organic

products is high right now. L’oreal should put even more focus here.

Threats of L’oreal

1. The cosmetic industry moves quickly. One day, people are falling over themselves

about a new conditioner. It gets endless five-star reviews and endorsements. Then

the next day, a newer product comes out. It’s now in the spotlight and the

conditioner is long forgotten. Keeping up with such demand can be taxing.

Especially when the competition is chomping to move ahead, even if they have to

use small marketing tactics to get it.

22
2. L’oreal has countless products. And the profits are divided into these different

segments. But if something happens to the economy, the company will have a

problem.

23
 Chapter 2

Literature Review

THIYAGARAJ .V. (2015) offers different types of tea, in different parts of the country,

with special focus on quality perception under specific demographic region. Major players

are offering different types of tea in different parts of the country with a focus on the

quality perception of the particular demography. Jain M., (2012).The reasons for

preference of the brands ranged from quality to availability. But it was quality that was

ranked as the No. 1 parameter for brand preference. Most of the consumers reported that

they do get carried away by advertisements sometimes but in the end it is the quality of

the product that is a decisive factor for purchase.

24
Mittal and Prashar (2010) revealed that irrespective of area, people prefer grocery stores

to be nearby, product assortment is important for grocery. Ambience of the grocery stores

has been perceived differently by people of different areas and prices are equally

important for all grocery. Perception and preference towards importance of service was

also different across different areas. Goswami and Mishra (2009) conducted a study that

was carried across four Indian cities-two metros (Kolkata and Mumbai) and two smaller

cities (Jamshedpur and Nagpur) with around 100 respondents from each city. The results

of the study suggested that Kirana stores would do best to try and upgrade in order to

survive. Given that modern trade outlets have deeper pockets and can afford to make

mistakes and get away with it in the short-term, Kirana Stores have to stay alert, try to

upgrade and continue to serve customers as well, while concentration on innovating,

evolving and remaining efficient on retailer.

Borensztein, E. and Gelos, G. (2001) explores the behavior of emerging market mutual

funds using a novel database covering the holdings of individual funds over the period

January 1996 to March 1999. An examination of individual crises shows that, on an

average, funds withdrew money one month prior to the events. The degree of herding

among funds is statistically significant, but moderate. Herding is more widespread among

open-ended funds than among closed-end funds, but not more prevalent during crisis than

during tranquil times. Funds tend to follow momentum strategies, selling past losers and

buying past winners, but their overall behavior is more complex than often suggested.

Gavin Quill (2001) examined the evidence that investor behavior is frequently

detrimental to the achievement of investors ‘long-term goals. The picture that emerges

from this analysis is one of investors who have lost a good portion of their potential

returns because of the excessive frequency and poor timing of their trading activities.

They established that investors trade much more than they realize and much more than is

25
conducive to the achievement of their financial plans. Investors think long-term in theory,

but act according to short-term influences in practice. This excessive turnover, combined

with a propensity to buy relatively over-valued investments and ignore relatively under-

valued ones, has caused the average mutual fund investor to underperform substantially

over the past decade. Gupta Amitabh (2001) evaluated the performance of 73 selected

schemes with different investment objectives, both from the public and private sector

using Market Index and Fundex. NAV of both close-end and open-end schemes from

April 1994 to March 1999 were tested. They found that sample schemes were not

adequately diversified, risk and return of schemes were not in conformity with their

objectives, and there was no evidence of market timing abilities of mutual fund industry in

India.

Karthikeyan (2001) conducted research on Small Investors Perception on Post office

Saving Schemes and found that there was significant difference among the four age

groups, in the level of awareness for Kisan Vikas Patra (KVP), National Savings Scheme

(NSS), and Deposit Scheme for Retired Employees (DSRE). The Overall Score confirmed

that the level of awareness among investors in the old age group was higher than in those

of young age group. No differences were observed among male and female investors.

Narasimhan M S and

Vijayalakshmi S (2001) analysed the top holding of 76 mutual fund schemes from

January 1998 to March 1999. The study showed that, 62 stocks were held in portfolio of

several schemes, of which only 26 companies provided positive gains. The top holdings

represented more than 90 percent of the total corpus in the case of 11 funds. The top

holdings showed higher risk levels compared to the return. The correlation between

portfolio stocks and diversification benefits was significant at one percent level for 30

pairs and at five percent level for 53 pairs.

26
Dwyer et. al. (2002) used data from nearly 2000 mutual fund investors and found that

women take less risk than men in their mutual fund investments. According to Prince,

(1993); Lunderberg et al., (1994), men tend to be more confident, trade more frequently,

rely less on brokers and believe that returns are more predictable and anticipate higher

returns than women. Hinz et al (1997) conducted a study in US by using data from the

Federal Government‘s Thrift.

Byrne (2005) shows that risk and investment experience tend to indicate a positive

correlation. Past experience of successful investment increases investor tolerance of risk.

Inversely, unsuccessful past experience leads to reduced tolerance to risk. Therefore past

investment behavior affects future investment behavior. Corter and Chen (2006) studied

that investment experience is an important factor influencing behavior. Investors with

more experience have relatively high risk tolerance and they construct portfolios of higher

risk. Mostafa Soleimanzadeh (June 2006) in his article, ―Learn how to invest in Mutual

Funds‖ discussed the risk and return in mutual funds. He stated that the risk and return

depend on each other, the greater the risks, the higher the potential return; the lower the

risk, the lower the expected return. Mutual funds try to reduce their risk by investing in a

diversified group of individual stocks, bonds, or other securities. He concluded that the

investment in stocks can get more return than mutual funds but by investing in mutual

funds, the risk is lower.

27
Chapter 3

28
 Methodology

OBJECTIVE OF THE PROJECT

This project research helps to find out what are the preferences of consumer while buying

a makeup product.

The objectives of the study are:

1. To know customer’s thought & perception about makeup.

2. To know the factors which affect decision making process of customer while

purchasing a makeup products.

3. To examine whether customers prefer L’oreal or Lakme.

SCOPE OF THE PROJECT

29
 1. At any given time there are millions of people who buy makeup products.

2. Due to the rapid development of the technologies, to let companies know about

customer preference.

3. There are so many potential consumers, it is of the out most importance to be able

to understand what the consumer wants and needs.

4. The importance of analysing and identifying factors that influence the consumer

what he or she decides to purchase is vital.

5. Thus this study will be beneficial to the makeup industry in making the strategy to

fulfil the need of customer through knowing the attitude and satisfaction level.

6. This research was done in Delhi area.

7. This research was done with scope of Women category only.

RESEARCH METHODOLOGY

Study

“A study of Consumer Preference towards two leading makeup brands, L’oreal or

Lakme.”

Sampling Unit

The sampling units are local people from Delhi area.

Sample Size

The sample size taken was 80 but we only got responses from 74 people.

Sampling Method

30
The sampling method used for the project was “Convenience Sampling”.

A convenience sample is a type of non-probability sampling method where the sample is

taken from a group of people easy to contact or to reach.

COLLECTION OF DATA SOURCE OF INFORMATION

Basically the source of the information for this project was taken from those who were

residing Delhi region only.

METHODS USED FOR DATA COLLECTION

• PRIMARY SOURCES

The primary data is collected by approaching the individuals with a Questionnaire

and was filled after making them understand the use of the information. This was

done to make sure that the information provided is true and unbiased and close

ended questions are used while conducting the survey.

The Techniques which I used to collect these data are as follows:

• Questionnaire

• SECONDARY SOURCES

Secondary research is a means to reprocess and reuse collected information as an

indication for betterments of the service or product.

• Internet sites

Both primary and secondary data are useful for businesses but both may

differ from each other in various aspects. But this research is based on

primary data.

31
 Chapter 4

DATA ANALYSIS

32
 &

INTERPRETATION

Fig 1. Gender of respondents

The above diagram shows us the percentage in the gender of respondents. As it shows that

from the number of respondents are 100% of female category.

33
 Fig 2. Age of respondents

The above diagram shows us the percentage in the age of respondents. As it shows that

from the number of respondents are 6.8% are from below 18 years category, 40.5% are

from 18-25 years category, 37.8% are from 26-40 years category and 14.9% are from

34
more than 40 years category. The above chart shows that high respondents of makeup

brand survey are from 18-25 years category.

Fig 3. Occupation of respondents

The above diagram shows us the percentage in the occupation of respondents. As it shows

that from the number of respondents are 8.1% are from business category, 25.7% are from

profession category, 18.9% are from homemaker category and 40.5% are from more than

35
student category. The above chart shows that high respondents of makeup brand survey

are from student category.

Fig 4. Respondents wear makeup or not?

The above diagram shows us the percentage of respondents who wear makeup or not. As

it shows that from the number of respondents are 94.6% who wear makeup and 5.4% do

not wear makeup. The above chart shows that high respondents of makeup brand survey

are wearing makeup category.

36
 Fig 5. Respondents wear makeup or not

The above diagram shows us the percentage of respondents that how often they wear

makeup. As it shows that from the number of respondents are 25.7% are from daily

category, 32.4% are from once or twice a week category, 20.3% are from once a month

category and 21.6% are from occasionally category. The above chart shows that high

respondents of makeup brand survey are from once or twice a week category.

37
 Fig 6. Respondents use which makeup product the most

The above diagram shows us the percentage of respondents that which makeup product

they use the most. As it shows that from the number of respondents are 48.6% are from

foundation category, 37.8% are from eyeliner category, 24.3% are from concealer

category, 52.7% from kajal category, 12.2% from primer category, 10.8% are from

highlighter category and 67.6% are from lipstick category. The above chart shows that

high respondents of makeup brand survey are from lipstick category.

38
 Fig 7. Respondents use which makeup brand

The above diagram shows us the percentage of respondents that which makeup brand do

they use Lakme or L’oreal. As it shows that from the number of respondents are 40.5%

are from Lakme category and 59.5% are from L’oreal category. The above chart shows

that high respondents of makeup brand survey are from L’oreal category.

39
 Fig 8. According to Respondents which has a better durability

The above diagram shows us the percentage of respondents that how they buy makeup

products. As it shows that from the number of respondents are 22.2% are from online

category and 77.8% are from cosmetics shop category. The above chart shows that high

respondents of makeup brand survey are from cosmetics shop category.

40
 Fig 9. According to Respondents which has better varieties

The above diagram shows us the percentage of respondents that which they prefer in

terms of varieties, Lakme or L’oreal. As it shows that from the number of respondents are

60.8% are from L’oreal category and 39.2% are from Lakme category. The above chart

shows that high respondents of makeup brand survey are from L’oreal category.

41
 Fig 10. How highly are Respondents satisfied with Lakme

The above diagram shows us the percentage of respondents that how highly they are

satisfied with Lakme. As it shows that from the number of respondents are 1.4% are from

highly dissatisfied category, 2.7% are from dissatisfied category, 16.2% are from neutral

category, 37.8% are from satisfied category and 41.9% are from highly satisfied category.

The above chart shows that high respondents of makeup brand survey are from highly

satisfied category.

42
 Fig 11. How highly are Respondents satisfied with L’oreal

The above diagram shows us the percentage of respondents that how highly they are

satisfied with L’oreal. As it shows that from the number of respondents are 8.1% are from

highly dissatisfied category, 12.2% are from dissatisfied category, 33.8% are from neutral

category, 23% are from satisfied category and 23% are from highly satisfied category.

The above chart shows that high respondents of makeup brand survey are from neutral

category.

43
 Fig 12. Will Respondents recommend Lakme to other people

The above diagram shows us the percentage of respondents that will they recommend

Lakme to other people. As it shows that from the number of respondents are 77% are from

Yes category, 8.1% are from No category and 14.9% are from Maybe category. The above

chart shows that high respondents of makeup brand survey are from Yes category.

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 Fig 13. Will Respondents recommend L’oreal to other people

The above diagram shows us the percentage of respondents that will they recommend

L’oreal to other people. As it shows that from the number of respondents are 58.1% are

from Yes category, 21.6% are from No category and 20.3% are from Maybe category.

The above chart shows that high respondents of makeup brand survey are from Yes

category.

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 Fig 14. Respondent’s suggestion/opinions

Above are the suggestions/opinions of the respondents.

46
 Chapter 5

FINDINGS

&

CONCLUSION

FINDINGS

47
 1. All the respondents are from Female category.

2. 40.5% of respondents are from age group 18-25 category.

3. 40.5% of respondents are from students background.

4. 94.6% of respondents wear makeup.

5. 32.4% of respondents wear makeup once or twice a week.

6. 67.7% of respondents use lipstick the most.

7. 58.1% of respondents think L’oreal has the better durability than Lakme.

8. 60.8% of respondents think L’oreal has the better variety than Lakme.

9. 41.9% of respondents are highly satisfied from Lakme.

10. 23% of respondents are highly satisfied from L’oreal.

11. 77% of respondent recommend Lakme to other people.

12. 58.1% of respondent recommend L’oreal to other people.

CONCLUSION

1. Women prefer L’oreal more as compared to Lakme.

2. Women prefer to wear makeup once or twice a week. It shows they are conscious

about their skin.

3. Women prefer lipstick over any other makeup products.

4. Women prefer L’oreal in case of durability.

5. Women prefer L’oreal in case of variety.

6. Women are highly satisfied with Lakme as compared to L’oreal.

LIMITATIONS

48
 1. Owing to time limitation, I only searched a few number of research papers. This

may leave some other prominent empirical studies out.

2. This research is only done in Delhi region. So the study is not vast.

3. I didn’t get the proper result. And sometimes people didn’t give answers and there

is always biasness.

BIBLIOGRAPHY

1. https://en.wikipedia.org/wiki/Cosmetics

2. https://en.wikipedia.org/wiki/L%27Or%C3%A9al

3. https://en.wikipedia.org/wiki/Lakm%C3%A9

4. https://www.marketing91.com/swot-analysis-of-lakme/

5. https://pestleanalysis.com/swot-analysis-of-loreal/

6. https://www.academia.edu/39985134/Customer_Preference_Regarding_Retail_Stores_

A_Study_of_Shimla_Town

7. https://www.researchgate.net/publication/258199842_A_Study_of_Diversity_in_Retail_

Purchase_Behaviour_in_Food_and_Grocery_in_Punjab_An_Aid_to_Formulate_Retail_St

rategy

8. https://journalofbusiness.org/index.php/GJMBR/article/view/1687

9. https://www.researchgate.net/publication/291374968_Effects_of_Brand_on_Consumer

_Preferences_A_study_in_Turkmenistan

APPENDIX

49
 QUESTIONNAIRE

Q1. NAME

___________________

Q2. GENDER

Male ________

Female ________

Q3. AGE

Below 18 ________

18-25 ________

26-40 ________

Above 40 ________

Q4. OCCUPATION

Business ________

Profession ________

Home Maker ________

Student ________

Other ________

Q5. DO YOU WEAR MAKEUP?

50
Yes ________

No ________

Q6. HOW OFTEN DO YOU USE MAKEUP?

Daily ________

Once or twice a week ________

Once a Month ________

Occasionally ________

Q7. WHICH MAKEUP PRODUCT YOU USE THE PRODUCT?

Foundation ________

Eyeliner ________

Concealer ________

Kajal ________

Primer ________

Highlighter ________

Lipstick ________

Q8. WHICH MAKEUP BRAND YOU USE?

L’oreal ________

Lakme ________

51
Q9. WHICH HAS A BETTER QUALITY?

L’oreal ________

Lakme ________

Q10. WHICH HAS BETTER VARIETY?

L’oreal ________

Lakme ________

Q11. HOW HIGHLY ARE YOU SATISFIED WITH LAKME?

Highly Dissatisfied _______

Dissatisfied _______

Neutral _______

Satisfied _______

Highly Satisfied _______

Q12. HOW HIGHLY ARE YOU SATISFIED WITH L’OREAL?

Highly Dissatisfied _______

Dissatisfied _______

Neutral _______

Satisfied _______

Highly Satisfied _______

52
Q13. WOULD YOU RECOMMEND LAKME TO OTHER PEOPLE?
Yes ________

No ________

Maybe ________

Q14. WOULD YOU RECOMMEND L’OREAL TO OTHER PEOPLE?

Yes ________

No ________

Maybe ________

Q15. WOULD YOU LIKE TO GIVE ANY SUGGESTION?

________________________________________________________________

53