RESEARCH PROJECT REPORT

On

“A COMPARATIVE STUDY ON CONSUMER

PREFERENCES TOWARDS SUGAR AND
MAYBELLINE COSMETIC PRODUCT IN
LUCKNOW CITY”
Towards partial fulfillment of
Master of Business Administration (MBA)
(BBD University, Lucknow)

Guided By: Submitted by:

Dr. Anchal Rastogi ANCHAL YADAV
Assistant Professor Roll No.1210672052
(SOM, BBDU LUCKNOW) MBA 4th Semester

Session 2022-2023
School of Management
Babu Banarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
PLAGIARISM CERTIFICATE
 DECLARATION

This is to declare that I, ANCHAL YADAV (University Roll No.1210672052)

student of MBA, have personally worked on the project entitled “A

COMPARATIVE STUDY ON CONSUMER PREFERENCES TOWARDS

SUGAR AND MAYBELLINE COSMETIC PRODUCT IN LUCKNOW CITY”.

The data mentioned in this report were obtained during genuine work done and

collected by me. The data or information obtained from primary (first-hand sources)

and any other alternative sources are absolutely acknowledged. The result and

analysis embodied during this project has not been submitted to the other University

or Institute for the award of any degree.

ANCHAL YADAV
ROLL NO.1210672052
MBA 4th Semester
BBD UNIVERSITY, LUCKNOW
 ACKNOWLEDGEMENT

First and foremost am indebted to the Almighty. It provides Pine Tree State immense

pleasure to position on record my feeling and reverence to my guide and supervising

faculty Dr. Anchal Rastogi from Babu Banarasi Das University, Lucknow for all

the timely help and support rendered. But for her constant motivation, encouragement

and adept guidance during the entire course of research, my endeavor would not have

culminated in fruition. The sincerity and dedication put in by her for the sake of my

Research Report is remarkable. I would like to thank her for the opportunity I was

given to conduct my Research and further my Research Report under his guidance. I

am grateful to Prof. (Dr.) Sushil Pande, the Dean/Incharge -SOM of Babu Banarasi

Das University, Lucknow for sparing his valuable time for me on different

occasions. I really appreciate all the bank employees who provided the requisite data

for my research work. It was their cooperation and input that made this research

possible. I express my gratitude to all the library staff of Babu Banarasi Das

University, Lucknow. Close to my heart is the support of my dear Colleagues, family

and friends. They were always there for me with their wise counsel and sympathetic

ear. I could not have done any of this without you all. Thank you once again.

ANCHAL YADAV
ROLL NO.1210672052
MBA 4th Semester
BBD UNIVERSITY, LUCKNOW
                                                           
 PREFACE

It was a privilege for me to work in a reputed organization. This has given us an

opportunity to work in a truly professional environment where team work score over

individual effort, where there is a helpful atmosphere. A well planned, properly

executed and evaluated training helps a lot in inoculating good work culture. The

project on “A COMPARATIVE STUDY ON CONSUMER PREFERENCES

TOWARDS SUGAR AND MAYBELLINE COSMETIC PRODUCT IN

LUCKNOW CITY” has been made to facilitate effective understanding about the

marketing aspects. The project research has provided me an opportunity to gain

practical experience, which has helped me to increase my sphere of knowledge to a

greater extent. I have tried to summarize all our experience and knowledge acquired

up till now, in this report. This project is a keen effort to obtain the expected results

and fulfill all the information required. At the end annexure and bibliography are

given for effective understanding

 EXECUTIVE SUMMARY

This project report is prepared as the partial fulfillment of two year degree programme

of MBA curriculum of Babu Banarasi Das University, Lucknow. This Research

project is a compulsory part of the academics. This research is done in the fourth

semester of the MBA program.

Today employees expect quality of work life, more than financial benefits from the

organization. With the advent of new technologies, factors related to mental health in

Tata Motors Limited are taken into consideration more than ever. Studies have

revealed that one of the factors affecting the productivity of employees in an

organization is quality of work life. Another influential factor is job satisfaction which

is important in the improvement of work environment conditions and organizational

efficiency. Quality of work life is an experience which an employee feels about the

job and work place in organization. The purpose of this paper is to identify the

relationship between two variables like, quality of work life and job satisfaction. The

study is an attempt to explore the better understanding of quality of work life and

employee job satisfaction in Tata Motors Limited. Findings of the study will help the

management and employees of Tata Motors Limited to understand the level of quality

of work life of Tata Motors Limited employees.

The project is followed by 8 Chapters.

Chapter 1: Definition & concept of Employees Satisfaction and Quality of Work

Life at Tata Motors Limited

Chapter 2: Literature Review and Company Profile

Chapter 3: Research methodology, objective of research.

Chapter 4: Analysis & interpretation of collect data’s.

Chapter 5: Findings
Chapter 6: Suggestions & conclusions

Chapter 7: References

Chapter 8: Annexure

This report is an honest work towards the topic. There can be many short comings in

it because of the lack of the time, unavailability of data and other constraints.
 TABLE OF CONTENT

S. No Particular Page No.

1 Bona-fide Certificate of Dean -School of Management i

2 Plagiarism Certificate ii

3 Declaration iii

4 Acknowledgment iv

5 Executive Summary v

6 Introduction 1

7 Company Profile 12

8 Literature Review 27

9 Objective of the Study 37

10 Research Methodology 39

11 Data Analysis and Interpretation 43

12 Findings 64

13 Limitations of The Study 66

14 Suggestions and Recommendations 68

15 Conclusion 70

16 Bibliography 73

17 Annexure 76
CHAPTER - I
INTRODUCTION

1
 Chapter – I
INTRODUCTION

INTRODUCTION

The Indian cosmetic market, which contains healthy skin, hair care, shading beauty

care products consideration classifications, has beated world's driving corrective

markets regarding development in the on going past. The Indian cosmetic market has

begun seeing uncontrolled development driven by improved spending force and rising

shopper mindfulness about corrective items in the midst of developing magnificence

cognizance. The Indian cosmetic Industry has seen fast development over the most

recent few years, developing at a CAGR(Compound Annual Growth Rate) of around

7.5% somewhere in the range of 2006 and 2008 ,as indicated by advertise experts.

With improving buying power and expanding style awareness, the beauty care

products industry is required to keep up the development energy during the period

2009-2012 with an anticipated development at a CAGR of around 7%. The normal

shopper spending on beauty care products in India is a lot lesser than some other piece

of the world. This suggests the Indian cosmetic industry has a much more noteworthy

potential for development in future than present. The offers of corrective items in

India is expanding vigorously due to the expanding acquiring force and discretionary

cashflow, urbanization, developing mindfulness about magnificence items and makers

forcefully promoting item in provincial territories in India. Moderateness and rising

purchasers are additionally liable for high corrective deals. As indicated by as of late

distributed report of Bonafide inquire about "India corrective Market Outlook, 2021",

restorative item in India was developing with a CAGR of 17.06% over recent years.

2
Urban India prompts the market, with in excess of four fifth of the corrective portion

utilization by volume. Numerous household and worldwide organizations are

presently focusing on the rustic markets to push volume deals in classes like lip, hair

and nail care, and some mass healthy skin items too. The corrective and magnificence

part are presently encountering extraordinary changes like exorbitant global

excellence items are selling rapidly. The greatest excellence advancement as of late is

men have begun their more beneficial skin routine away from the exercise center. The

ascent in men's salons is proof to the reality. According to the related Chambers of

Commerce and industry of India ASSOCHAM, utilization of beautifying agents in

India for every individual is around US Dollars 0.68 pennies when contrasted with US

Dollars 40 in Hong Kong, US Dollar 12 in Japan , and US Dollar 1.5 in China.

The success of certain products sometimes depends on a simple modification of their

packaging. For example, the box for the brand Kleenex, traditionally rectangular,

evolved into an oval shape during the summer of 2005 on the American market.

Thanks to its new package, it became the most widely sold product in the history of

Kimberly-Clark, generating sales twice that of the previous season (Hamner,2006).

This example illustrates the importance a product package can have in the purchasing

decision, but it does not give us any explanation as to how and why this new package

was such a success. Most of the studies conducted on the subject of packaging (Bloch,

1995; Garber, Burke and Jones,2000; Shorans and Robben, 1997) testify to

practitioners and researchers’ interest in this subject and highlight the huge potential

of the package during a consumption experience. However, very few studies have

attempted to study the link between a product package and its capacity to build a

strong brand by creating favourable associations with that brand(Berkowitz, 1987 a

and b; Henderson, Leong and Schmitt, 2003; Orth and Mankowitz, 2008;Underwood,

3
2003). And yet, the packaging is the main communication element for the product at

the point-of-sale and allows the consumer to appreciate the position chosen by the

brand. With that in mind, the purpose of this study is to advance previous research on

brand experience. It traces the differential effects of experiential and functional values

on specific brand outcomes not previously addressed by earlier research: brand equity,

consumer-brand identification, and word-of-mouth (WOM). Brand equity is a key

determinant of brand success and a strategic factor in the profitability and market

capitalization value of firms (Srivastava et al., 2001). Consumer-brand identification

is a primary psychological substrate for building the kind of deep and meaningful

relationships that brand managers are increasingly seeking with consumers (Ahearne

et al., 2005; Dimitriadis and Papista, 2011). Finally, positive WOM plays an

important role in influencing consumer perceptions and brand image (Amblee and

Bui, 2008). In addition, we also explore whether the higher impact of brand

experiential value over brand functional value depends on consumers’ age because

consumer behaviour literature has identified age as a critical factor influencing

cognition, affect and evaluative judgments (Cole et al., 2008; Correira and Roschk,

2014; Drolet et al., 2007). Furthermore, many of the fundamental questions in

marketing have had limited attention in relation to aging (Yoo and Cole, 2008), while

the aging of the population is a demographic trend of great interest to marketers.

4
COSMETIC PRODUCT

Cosmetic products are additionally regulated as consumer products and any claims

made with regard to product efficacy to the extent such claims may affect a

consumer's choice whether to purchase a product or not, are regulated by the Federal

Trade Commission (FTC) under the authority of the Federal Trade Commission Act

(FTCA).6 The issues, therefore, that may affect anti-aging products under the

regulatory system of the United States may be complex and involve more than one

regulatory agency.

CELEBRITY MARKETING

Celebrity marketing is a tactic featuring a famous person to offer an endorsement of a

product. This famous person might be an actor, musician, athlete, ex-politician, or a

cartoon character. They do not need to be international superstars; they only need to

be familiar to the target audience for instance, Aishwarya Rai and Sonam Kapoor for

L’Oréal hair colour, Virat Kohli for Cinthol deodorant, Shahrukh Khan for Fair &

Handsome cream for men, Karishma Kapoor for Garnier Hair colour, John Abraham

and Sushant sinh Rajput for Garnier face cream for men, Varun Dhawan for Pond’s.

A celebrity’s involvement can range from an explicit to an implicit endorsement of a

product. Some celebrity marketing campaigns try to suggest that the star uses the

product personally and enjoys it. Others simply involve the celebrity in the image of

the brand, relying on the celebrity’s reputation rather than their outright endorsement

to market a product. Celebrity marketing has been used across all mediums. Print,

television, radio, film, and various forms of new media have all been effective outlets

for celebrity endorsed products.

5
BRAND NAME

Famous brand names can disseminate product benefits and lead to higher recall of

advertised benefits than non-famous brand names (Keller, 2003). Instead of many

unfamiliar brand names, consumers get impressed and attracted to purchase famous

brand and this is responsible for repeat purchasing behaviour. For instance, L’Oréal,

Himalaya, Lakme, Garnier etc. Brand name is the creation of an image or the

development of a brand identity and is an expensive and time-consuming process.

Consumers tend to perceive the product from an overall perspective, associating with

the brand name all the attributes and satisfaction experienced by the purchase and use

of the product (Kohli&Thakor, 1997).

6
CHAPTER - II
INDUSTRY PROFILE

7
 Chapter –3

INDUSTRY PROFILE

MAYBELLINE

Maybelline New York is the number one global cosmetics brand and is available in

over 129 countries worldwide. Offering more than 200 products, Maybelline New

York combines technologically advanced formulas with on-trend expertise to create

accessible cosmetics with a cool, urban edge and a spirited style. Maybelline New

York is the official sponsor of New York Mercedes-Benz Fashion Week.

In 1913, young Chicago chemist Thomas Williams had a dilemma. His older sister,

Maybel, was in love with a man who was in love with someone else. Maybel

Williams did her best with what was available—she used petroleum jelly on her

lashes and brows to enhance them. Her brother decided to help her increase her allure

by adding carbon dust to the petroleum jelly, which darkened her lashes and brows

more dramatically. The product worked. In 1915, Maybel got her man and Thomas

founded what would become the global industry giant, Maybelline, named after the

bride and her favourite beauty aid.

Two years later, Williams introduced Maybelline Cake Mascara, the first modern eye

cosmetic made for everyday use. Initially available only through mail order, it was so

popular that women began to ask for it in drugstores. The signature red Eyebrow

Pencil followed, along with coloured eyeshadows and complementary eyeliners,

leading the youthful, flapper fashion trend of dramatic makeup. Maybelline became

the first cosmetic company to advertise on radio and sales boomed. In 1932,

responding to incessant demand, Maybelline introduced a special 10-cent package of

Cake Mascara for retail sale. And the rest, as they say, is history!

8
 POINTS INFORMATION

Company Name Maybelline New York

Date of Establishment 1914

Establishment Place (Founded) United States

Founder Thomas Lyle Williams

Net Worth (as on 2020) US $100 thousand (approx)

Telephone No. 1-800-944-0730

Registered Address Manhattan New York, United States

Company Status Active

Website www.maybeliine.com

ESTABLISHMENT

Maybelline New York established in 1914 by Thomas Lyle Williams. It is an

American brand of cosmetics. Product of Maybelline New York can be found in

major mass-market retailer including drugstores, discount store, supermarkets and

cosmetic specialty stores.

9
PRODUCTS

FACE

Maybelline New York is an American brand which discover the perfect face products

for your skin tone and type. Maybelline has everything from the best long wear face

products at reasonable prices.

 Concealer

 Powder

 Contour And Highlight

 Blush And Bronzer

 Bb Cream And Tinted Moisturizer

 Primer And Setting Spray

 Foundation Shade Finder

 Foundation

EYES

Maybelline offers eyes products. Demure daytime looks, dramatic night moves, subtle

lines, smokey vibes, custom brow looks, classic tones or a shot of color. Eyeshadow,

eyeliner, brows, and mascara collections designed to transform your look.

 Mascara

 Brow

 Eyeliner

 Eyeshadow

10
LIP

Shop your perfect red lipstick and matching lip liner, collect each of our lip gloss

shades, or treat your lips to lip balms that heal, protect, and beautify.

 Lipstick

 Lip Gloss

 Lip Balm

 Lip Liner

NAILS

Discover new fast drying gel nail polish by Maybelline. Brush on one of 18 show-

stopping shades, from Rebel Red to Pink Charge, to make a bold statement.

 Nail Color

COMPANY LOGO

If you want to know anything else about the Maybelline New York. Please comment

below we will try to provide information.

Maybelline New York was born with a spark in 1917

Maybelline New York was born with a spark in 1917 when Mabel Williams singed

her lashes in a cooking fire— and turned disaster into opportunity by mixing the ashes

with Vaseline to create a mascara product for all.

100 years later, that Maybelline spirit lives on, in the spark and spirit of New York.

Every product we make lives up to our values: Diverse. Hardworking. No-hassle. On

the pulse. We create makeup that brings the fashion sensibility and pulse of New

York City to the world.

11
The term Maybelline is known to many beauty enthusiasts from around the world as

an iconic brand that is easily available to consumers around the country. Maybelline

is a leader in the beauty cosmetic industry, making some of the best makeup money

can buy.

This case study covers the marketing strategy of Maybelline that it implements to

create buzz about itself and the advertising campaigns it has undertaken over the years

and the 4Ps of the brand’s marketing mix, So let us start by knowing more about

Maybelline in the coming section.

Maybelline New York, LLC, trademarked as L’Oréal USA, Inc. and marketed as

Maybelline New York is an American manufacturer of cosmetic and beauty products

currently owned by the French company L’Oréal.

It was founded in 1915 by Thomas Lyle Williams in Chicago, Illinois and was later

acquired by L’Oréal in 1996 and is currently based in New York, USA.

Today, Maybelline is a leading global brand in the cosmetics industry, with an

extensive product range for face, eyes, lips and nails. It has its presence in about 129

countries worldwide.

Maybelline has produced quality cosmetic products for women of all ages around the

globe and continues to thrive as a classic brand with a comprehensive portfolio of

products of superior quality and unique colour offerings, completely customized to

suit Indian skin tones.

Now let us understand Maybelline further by going through its target market in the

next section.

This vision has propelled us to become the number one global makeup brand in over

120 countries. As our global community continues to grow, we are committed to

helping everyone, everywhere look -- and feel -- ready to take on their world.

12
TARGET MARKET OF MAYBELLINE

Maybelline is one of the most popular brands all over the world and its target market

is focused purely on women aged between 15 to 45 which includes women from all

backgrounds.

Lately, the brand has become more contemporary for women of all races. Like most

of the girls during the age of 16 start using makeup products, this age group becomes

the most targeted one. The products range to all groups, using appropriate marketing

techniques and being aware of each of their wants and needs. The brand has

introduced a wide variety of products that women of any age can use.

Now that we know about Maybelline’s Target Market, let us now go through the 4Ps

of the marketing mix of Maybelline.

MARKETING MIX OF MAYBELLINE

Marketing mix is a model that refers to the activities involved when marketing a

company’s product for the purpose of promoting sales and gaining customers. The

objective of defining the market mix is to assure that a company’s efforts are focused

on the correct “mix” of activities that will permit it to effectively meet its required

profit target.

Let us look at how Maybelline has its marketing mix framework set up in the coming

sections.

MARKETING MIX OF MAYBELLINE

Marketing mix is a model that refers to the activities involved when marketing a

company’s product for the purpose of promoting sales and gaining customers. The

objective of defining the market mix is to assure that a company’s efforts are focused

on the correct “mix” of activities that will permit it to effectively meet its required

profit target.

13
Let us look at how Maybelline has its marketing mix framework set up in the coming

sections.

In today’s competitive market, it comes out with new releases every now and then and

is crucial for Maybelline to approach its product from many different angles to gain

the proper advantage over its competitors. Today, Maybelline has become a synonym

in the cosmetics industry.

14
PRICE STRATEGY OF MAYBELLINE

Maybelline’s pricing strategy and approach have been successful for the company in

both product and performance. The pricing strategy utilizes standardized prices for all

products which encourage product demand and brand loyalty.

This strategy has resulted in remarkable growth for Maybelline. It has its roots in an

attitude that emphasizes value for all consumers — not just those who can afford it.

PLACE STRATEGY OF MAYBELLINE

Maybelline is present in 129 countries worldwide. It is present in several market

segments, including traditional mass retail, drugstores, e-commerce and speciality

channels. With Covid-19 Pandemic in place, Maybelline saw a rise of 47.1% in e-

commerce sales.

The beauty industry in India is expanding rapidly with the increasing female spending

power and preference for quality products. The strategic consolidation among various

beauty product concern has helped Maybelline gain strength in the highly competitive

Indian market segment.

PROMOTION STRATEGY OF MAYBELLINE

Maybelline uses both traditional and digital mediums to promote its products. Both

types of advertising and marketing have helped the company to build a loyal

following and increase its brand recognition among women.

Digital marketing of Maybelline relies greatly on brand promotions and user-

generated content on platforms such as Youtube and IGTV while traditional

advertising relies mainly on traditional media like magazine and newspaper ads and

broadcast media.

15
So this is how Maybelline’s marketing mix strategy pans out, let us now go through

its marketing strategies in the coming sections.

MARKETING STRATEGY OF MAYBELLINE

Today, people want to know how they will feel when they put beauty products on

their face and head outside and this is really where Maybelline’s marketing tactics

come into play.

Maybelline’s marketing strategy includes collaborations, brand ambassadors,

sponsorships and extensive traditional and digital promotions. The beauty industry

has created a movement toward consumerism and wanting products to be

personalized and delivered.

16
Being an industry-leading brand that is used to delivering products as close to the

consumer’s heart as possible. With this new generation using social media more than

ever before, the need is huge for brands to deliver products that make them look

fantastic.

So here are the few marketing strategies that Maybelline implements to make sure

they are noticed by the customers.

COLLABORATION STRATEGY OF MAYBELLINE

The beauty industry is highly lucrative with constant competition for customers.

While some cosmetics are created to only appeal to a certain demographic,

Maybelline does routine collaboration with various companies like Marvel, Puma to

launch new personalised products which help them promote themselves to multiple

different audiences.

BRAND AMBASSADORS OF MAYBELLINE

In recent times, Maybelline has taken on the task of marketing its products globally

by signing a number of celebrity brand ambassadors. Among the celebrities are Alia

Bhatt, Athiya Shetty and Sara Ali Khan who promote its products in India. Gigi Hadid

is signed as a global ambassador for the brand.

17
The brand even collaborated with famous model Gigi Hadid to create a range of

products inspired by the model’s makeup theme. The launch of the Maybelline x Gigi

Hadid Collection was a smashing success.

18
VIRTUAL BEAUTY STUDIO

Maybelline Virtual Beauty Studio is an online makeup tool that helps its customers to

find a perfect match of their style, size and skin tone instantly online. It allows the

audience to choose from a wide range of shades and others products.

And when you’re ready for your make-up deliberation, the easy to use virtual makeup

tool allows one to step back and watch her reflection in virtual reality.

These are key marketing strategies that Maybelline worked upon so far, let us now

look at their advertising campaigns.

19
MARKETING & ADVERTISING CAMPAIGNS OF

MAYBELLINE

Marketing and advertising campaigns are very important for Maybelline. They play a

vital role in creating awareness, in revitalising the brand after a time which also helps

in creating brand loyalty.

The ability to create awareness and get people talking about the products through the

media is vital for any business success.

So here are some of the most popular marketing and advertising campaigns of

Maybelline:

#SOBOLDSOCOLOSSAL – A MARKETING CAMPAIGN OF

MAYBELLINE

“So Bold So Collosol” campaign by Maybelline aimed to take a bold stance with its

new range of eye makeup. The objective of the advertising campaign was to spread

awareness about the launch of Colossal Eye Makeup.

The brand has created a range of bold shades that will offer you gorgeous looks

instantly in a variety of ways and are waterproof.

20
CHAPTER - III
COMPANY
PROFILE

21
 Chapter – 3

COMPANY PROFILE

COMPANY PROFILE

Until the emergence of e-commerce and Direct-to-Consumer (D2C) selling, the

Indian beauty sector had been dominated by cosmetics majors for decades. In the

beauty industry, it's difficult to overlook the influence of direct-to-consumer

companies like Nykaa, Mamaearth, WOW Skin, Plum, and Sugar Cosmetics, which

are quickly becoming customers' go-to alternatives in metros and Tier 1 and 2 cities.

Established in 2015, Sugar Cosmetics came up with just two products, namely, a

black matte eyeliner and a black kohl pencil. Since then, the company has grown to

450 Warehouses. So, in just five years, what led Sugar to emerge as one of the most

well-known beauty chains in India?

Here's learning more about Sugar, its Industry, its Founders and Team, Sugar CEO, its

Business and Revenue Model, its Name and Logo, Growth and Revenue, Sugar

Cosmetic Valuation, Mission and Vision, Competitors, Challenges Faced, Future

Plans, and more.

22
SUGAR COSMETICS - COMPANY HIGHLIGHTS

STARTUP NAME SUGAR COSMETICS

Parent Company Vellvette Lifestyle, Vellvette

Headquarters Mumbai, Maharashtra, India

Industry Beauty, E-commerce, Brand Marketing, Cosmetics

Founders Kaushik Mukherjee and Vineeta Singh

Founded 2012

Current CEO Vineeta Singh

Total Funding $80.8 Mn over 7 rounds

Revenue $26.85 Mn (FY22)

Website www.sugarcosmetics.com

ABOUT SUGAR COSMETICS

Sugar Cosmetics is one of India's fastest-growing premium cosmetic companies, with

a cult following among millennials. Thanks to its clutter-breaking attitude, unique

low-poly packaging, and chart-topping products, it has become the first choice of

many Indian women. The brand's bestselling goods in the Lips, Eyes, Face, Nails &

Skin categories are sent all over the world from state-of-the-art facilities in Germany,

Italy, India, the United States, and Korea.

The brand is devoted to producing products that are a great fit for every Indian skin

tone throughout seasons and across the calendar, with a cruelty-free line that is high

on design and high on performance. Sugar Cosmetics is aggressively expanding its

strong existence with over 35,000 outlets across 550 cities. It is backed by the faith of

marquee investors and the passion of millions of beauty aficionados.

23
SUGAR COSMETICS - INDUSTRY

The Indian beauty e-commerce market, which is still in its early stages, might witness

a spate of acquisitions over the next 3 to 4 years as smaller, direct-to-consumer (D2C)

firms are rising, following a pattern set in the US.

According to a survey published by Harvard Business Review in 2009, the global

yearly consumer expenditure by women was valued at $20 trillion. In 2018, this

number rose to $40 trillion.

As for Global Cosmetic Industry, it is estimated to reach $428.9 billion by 2027.

Furthermore, the Indian cosmetics industry is expected to reach $20 billion by 2025,

increasing at a CAGR of 25%.

The fact that the customer base wants to have digital experiences is one of the reasons

why beauty is shifting toward e-commerce. It's simpler and less time-consuming

indeed, for people to go from online material to an online shop now that they can have

practically the same "real-life" experience online as they do in the stores (personal

preferences, samples, etc).

SUGAR COSMETICS - NAME, LOGO, AND TAGLINE

Sugar Cosmetics Logo

24
The company began as an online supplier of natural, paraben-free cosmetics and has

since grown in popularity not just in India but throughout the world. Due to the usage

of the black and white color combination, the visual identity of an Indian cosmetic

business is beautiful and refined while also seeming bold and confident. The

company's logo is made up of a wordmark with an emblem on the left, which serves

as the brand's signifier and appears on all of the company's cosmetics.

SUGAR COSMETICS - FOUNDERS AND TEAM

Sugar Cosmetics was founded by Kaushik Mukherjee and Vineeta Singh in 2012.

Founders of Sugar Cosmetics - Kaushik Mukherjee and Vineeta Singh

KAUSHIK MUKHERJEE

Kaushik Mukherjee, the Co-Founder, and CEO of SUGAR Cosmetics is a BITS

Pilani and IIM Ahmedabad alumnus, and a TEDx speaker. He is also a marathon

runner and an Ironman triathlete.

25
VINEETA SINGH

Vineeta Singh is the Co-Founder and CEO of SUGAR Cosmetics, India's fastest-

growing cosmetic business. She is a TEDx Speaker and an IIT Madras and IIM

Ahmedabad graduate. She is a triathlon as well as an ultramarathon runner. Vineeta is

a popular face on the Indian business reality show Shark Tank. Vineeta has also

funded numerous startups.

Sugar Cosmetics, a direct-to-consumer company, appointed Suchit Sikaria as its new

Chief Business Officer on July 5, 2021. Sikaria, an IIM-Ahmedabad alumnus, has

over 14 years of sales, marketing, and business operations leadership experience with

Performics India and Nokia India. He was a VP and later a Managing Partner with

Performics, and has earlier served as the Area Sales Manager at Nokia. Sikaria also

has four years of startup expertise from his own entrepreneurial business,

Bhukkadpanti, which was built to serve as a food startup.

SUGAR COSMETICS - STARTUP STORY

Vineeta's husband and business partner, Kaushik, was working at McKinsey &

Company before the two of them started this firm, and she was attempting to build

and expand her skills at another firm. The idea of working together had never

occurred to either of them, but they had great respect for one another's abilities. Soon,

they both realized that they enjoyed various things, such as Kaushik's interest in

technology and hers in product development and marketing.

As a result, they decided to team together, with Kaushik working on an eCommerce

project and she creating a women's business. They sensed a strong bond that might

handle their shared interests.

26
 SUGAR COSMETICS - MISSION AND VISION

Sugar Cosmetics' mission statement says, "We believe in every interpretation of

beauty. Bold to subdued, quirky to crazy, every day to glam goddess! We aim to

celebrate every aspect of you, no matter what your style is. So, go ahead and pick

your faves."

SUGAR COSMETICS - BUSINESS MODEL AND REVENUE

MODEL

Sugar Cosmetics has a D2C model of business, which also uses an omnichannel

approach to sell its products. It helps Sugar sell its products in various eCommerce

marketplaces like Amazon, Nykaa, etc. The major revenue streams of Sugar

Cosmetics include the sale of its products in India and other export sales.

SUGAR COSMETICS - FUNDING AND INVESTMENTS

Sugar Cosmetics has raised $80.8 million in over 7 funding rounds that the company

has seen to date. It was the Series C round of funding that Sugar had last witnessed on

October 21, 2020, which infused $21 million into the company, after which it closed a

$50 million worth of funding in its Series D funding round that came from Asia Fund

of L Catterton and some other existing investors including Elevation Capital, India

Quotient, and A91 Partners.

DATE ROUND AMOUNT LEAD INVESTORS

May 30, 2022 Series D $50 Mn Asia fund of L Catterton, A91 Partners, Elevation Capital,
and more.
Oct 21, 2020 Series C $21 Mn A91 Partners, Elevation Capital, India Quotient, Stride
Ventures
Mar 8, 2019 Series B $12 Mn A91 Partners, Anicut Capital, India Quotient
Jun 1, 2017 Series A $2.5 Mn India Quotient, RB Investments Pte. Ltd.

27
L Catterton, which has funded Sugar on one of recent occasions, has sold some of the

portfolio investments in Asia via its Asian arm to Hamilton Lane, a US-based

alternative investment management firm for $360 million, as of June 27, 2022. The

firm has reportedly pulled out private equity investments in startups only from its

Fund 1 and Fund 2. However, it refrained from selling off stakes from its Fund 3

investments, via which it invested in companies like Reliance Jio and Sugar

Cosmetics.

Sugar Cosmetics has now onboarded Ranveer Singh as its latest investor. This comes

after the company raised Series D funding in May 2022. It is the first startup

investment made by the actor, the investment amount however remains undisclosed.

With this new partnership, the company will be able to “create new pathways for

customer acquisition" and plans to become a new favorite cosmetics brand among

millennial and Gen Z customers.

SUGAR COSMETICS - GROWTH AND REVENUE

The beauty firm, which operates on a hybrid model, currently has a presence in

35,000 multi-brand outlets across 550 cities. In the previous two years, its income has

increased by nearly 6 times. After the pandemic took a heavy toll, the corporation

devised novel strategies to reinforce the trust connection between its brand and its

clients. SUGAR Cosmetics found a position for itself in the fast-growing beauty

sector and weathered the epidemic by slashing expenses and reorganizing the team, as

well as utilizing social media marketing and an e-commerce push. Some of the other

growth highlights of Sugar are:

 Sugar's website and app witness more than 2 Mn unique visitors each month.

 It sells 200K+ products each month.

 Sugar Cosmetics products are present in over 40K retail stores.

28
 All prominent eCommerce marketplaces sell Sugar products like Amazon,

Flipkart, Nykaa, Myntra, and more

 Sugar also sells its products outside India, in countries like Korea, Germany, Italy,

and the US

The D2C beauty and cosmetics brand managed to clock in Rs 100 crore ($12.13 Mn)

in annual revenues. This was a difficult feat even for brands like Revlon, which was

only able to reach the same mark in revenues after 20 long years. Sugar was able to

achieve such a feat with the help of the omnichannel approach that it has developed

when it comes to selling its products along with its focus on content marketing, and

the development of its app.

Sugar Cosmetics grew at a breakneck speed in FY20. With its hybrid online-offline

sales, the firm increased its operations by 5.6X in the previous two fiscal years. The

team grew from 87 to over 1,750 retail touchpoints in only two and a half years. The

team had collected a net income of Rs 103.71 crore ($12.58 Mn) by January 2020 and

was aiming for Rs 200 crore ($24.25 Mn). However, the pandemic stymied its

expansion goals.

Sugar Cosmetics' operating income increased by 82% in FY20, from Rs 57.14 crore

($6.93 Mn) in FY19 to over Rs 103.71 crore ($12.58 Mn). Notably, overseas

purchasers accounted for 15.4% of its revenues, or Rs 16 crore ($1.94 Mn). During

FY20, it generated a further Rs 1.4 crore ($169.78K) from its financial assets.

29
 SUGAR COSMETICS REVENUE

Sugar Cosmetics Operational Revenue from FY19 to FY22

The Sugar Cosmetics revenue further increased to Rs 126.36 crore ($15.33 Mn) in

FY21 from Rs 103.71 crore ($12.58 Mn), with its operating revenue seeing a growth

of 22% during the same fiscal. It was the domestic sales that commanded the

company's overall collections, which made up 93.1% of its sales, growing by 34.1%,

from Rs 87.7 crore ($10.64 Mn) to Rs 117.61 crore ($14.26 Mn) during FY21.

However, the export sales of Sugar dropped by 45.4% because it bore the brunt of the

travel and freight disruptions that the company witnessed due to the pandemic

outbreak.

In FY22, the revenue from operations of Sugar Cosmetics was $26.85 million and

export sales amounted to $3.6K.

Sugar Revenue Verticals FY21 FY22

Sales of Goods in India $15.33 Mn $26.92 Mn

Export Sales $2.42K $3.6K

30
 Breakdown of Revenue of Sugar Cosmetics from FY20 to FY22

SUGAR COSMETICS EXPENSES BREAKDOWN

The total expenses of the cosmetics brand also grew alongside its revenues, which

stood at $36.34 million in FY22, thereby rising from $18.04 million of expenses that

Sugar saw in the previous fiscal. The largest cost of the company in FY22 is

advertising and sales promotional costs, which contributed to 32.5% of the company's

expenses. However, the company has seen a growth in its expenditure in all of the

other verticals including its cosmetics cost, employee benefit costs, outsourced

support and labor costs, other operating and admin expenses, and freight and

packaging costs.

Sugar Expenses Verticals FY21 FY22

Cost of Cosmetics INR 40.75 cr ($4.93 INR 66.35 cr ($8.03 Mn)
Mn)
Advertising Promotional Expenses INR 34.36 cr ($4.16 INR 97.54 cr ($11.81 Mn)
Mn)
Cost of Employee Benefits INR 19.20 cr ($2.32 INR 35.52 cr ($4.30 Mn)
Mn)
Outsourced Support and Labour Costs INR 22 cr ($2.66 Mn) INR 43.61 cr ($5.28 Mn)
Cost of Other Admin Expenses and INR 23.90 cr ($2.89 INR 43.73 cr ($5.29 Mn)
Operations Mn)
Freight and Packaging Costs INR 8.80 cr ($1.07 Mn) INR 13.25 cr ($1.60 Mn)
SUGAR COSMETICS FINANCIALS

Sugar Cosmetics Financials FY21 FY22

31
Revenues INR 126.36 cr ($15.3 Mn) INR 222 cr ($26.87 Mn)

Expenses INR 149 cr ($18.04) INR 300 cr ($36.34 Mn)

EBITDA Margin -11.98% -30.19%

Profit/Loss - INR 21.1 cr ($2.55 Mn) - INR 76.2 cr ($9.23 Mn)

The popular Indian cosmetics provider improved its EBITDA margins and on the

back of this, it managed to curtail its losses from $3.42 million to $2.55 million during

FY21. But their losses surged in FY22 to $9.23 million, which is almost 3.6x to

FY21.

Sugar Cosmetics Financials FY21 and FY22

Social media is one of the most effective tools used by SUGAR. According to Singh,

they saw early on that customers were spending more time on their smartphones and

engaging with their content on social media. The company leveraged this as a chance

to boost its social media presence.

32
SOME OF THE NOTABLE THINGS THAT SUGAR IS GETTING

RIGHT SINCE FY20

Sugar is scaling and according to the CEO's statements, the startup is expecting to

grow 2X in revenues, and cross the Rs 300 crore ($36.32 Mn) mark. Anyone building

a retail brand in India may learn a lot from their experience.

The "FAB BAG"

The Fab Bag by Sugar Cosmetics

The "FAB BAG", a cosmetic subscription service, was created by Kaushik Mukherjee

and Vineeta Singh in 2012. For Rs 599 every month, users would get a "surprise"

beauty box including a mix of five goods from the categories of cosmetics, bath and

body, skincare, haircare, and fragrances.

These items were largely new and unknown brands that were sourced abroad. The

FAB BAG experience allowed the team the space, place, and data they needed to

figure out who their target market was. SUGAR wanted to position itself as a

premium brand because the company's growth hinged on encouraging mass

consumers to upgrade or luxury clients to try something less costly.

33
PREMIUM PRODUCTS

Despite its tight budget, the team managed to secure their launch items — an eyeliner

and a kohl pencil – from a reputable German producer. Customers found the 'Made in

Germany' badge to be reassuring, and it enabled SUGAR to get off to a good start.

Gloss eyeliners dominated the industry at the time, but SUGAR decided to develop a

matte version, believing that its clients would prefer an item they could use every day.

The eyeliner was the first of several product bets that SUGAR would make, and it

turned out to be a hit.

IMPORTANCE OF INSTAGRAM INFLUENCERS

The importance of Instagram influencers in beauty business marketing is well-

documented. SUGAR jumped on the 'unwrapping videos' and 'before and after'

makeovers bandwagon to make people aware. The brand's Instagram influencer

approach is well-balanced. Anmol Rodriguez, an acid attack survivor, is featured in

one of their most famous videos. Today, the brand has over 2.5 million Instagram

followers, much-outnumbering peers such as Colorbar.

UNIQUE PACKAGING

Sugar Cosmetics Packaging

34
SHOPIFY STORE

In 2015, SUGAR opened a Shopify store, which it continues to operate. The firm also

released an app in November 2019 that has over 1 million downloads and a 4.5-star

rating on Android and iOS. The majority of the internet acquisition approach is still

concentrated on social advertisements.

SUGAR debuted on Nykaa, the beauty website, in 2016 when it had a far smaller

number of businesses than it does now. By 2017, Nykaa accounted for roughly 80%

of the brand's income, and the team admits they weren't sure whether to be "glad or

frightened." In any case, it was evident that distribution needed to be scaled. It was

extremely simple to go from Nykaa to other online platforms like Flipkart and

Amazon. The true issue, Mukherjee concedes, was breaking the code offline.

SUGAR COSMETICS - ACQUISITIONS

Sugar Cosmetics has acquired 1 company to date. The acquisition of ENN Beauty was

announced on January 13, 2022, when the company picked up the majority (51%)

stakes in the natural skin and hair care brand.

Acquired Company Date of Acquisition Deal Value

ENN Beauty January 13, 2022 -

35
SUGAR COSMETICS - COMPETITORS

The top ten rivals in SUGAR Cosmetics' competitive group can be listed as:

 Purplle

 Lakme

 Maybelline

 Lotus Herbals

 Blue Heaven Cosmetics

 Nykaa

 Plum

 Marico

 NewU

 Emami

SUGAR COSMETICS - CHALLENGES FACED

The impact was worse because retail outlets accounted for 60% of their revenue. As a

result, during unlocking 1.0, the team rallied to a target of at least 5 crores in net

revenue. To deal with the issue, the team had to go through wage cuts and

employment reshuffles, according to the founder Vineeta Singh. Despite the difficult

circumstances, by the third quarter of FY20, the firm had regained profitability.

When most merchants were reducing their physical footprint, SUGAR moved ahead

and increased its number of locations. This was a strategic move Singh couldn't afford

to miss out on. They realized that they needed to increase their investment. They were

able to attract seasonal customers since they expanded their area before the holiday

season.

By the conclusion of FY21, the firm expected a 40% increase in net sales. Here, it is

important to note that the company has already surged its domestic sales by 34.1%. In

36
FY22, the revenue from sales of goods was $26.85 million, a significant increase as

compared to the previous year. Singh has big goals for the next five to six years, and

she wants to reach a net income of 500 crores ($60.53 Mn).

SUGAR COSMETICS - FUTURE PLANS

SUGAR Cosmetics has expanded outside India, having a physical outlet in Russia and

an online presence in the United States. SUGAR Cosmetics intends to increase its

offline standalone locations. The brand, which was created in 2015, currently

manages 100 outlets on its own, with aspirations to increase that number.

According to some figures, 95% of trading in India still takes place offline. SUGAR

intends to use this to extend and enhance its retail base, as well as improve its retail

marketing and visual merchandising experience.

SUGAR Cosmetics opened five new brand-owned retail stores throughout the

pandemic, putting sanitation and safety first for its retail consumers. To strengthen its

D2C channels, the firm is focusing on expanding its mobile app, which has already

had 1M+ app installations in less than a year. Content marketing, strong alliances, and

offering new items will all be on the agenda. The CEO of Sugar Vineeta Singh has

revealed the company's latest plans of crossing Rs 300 crore ($36.32 Mn) in revenues.

Besides, she also added that Sugar would also be foraying into new categories,

including the hair care category that the company will most likely be entering very

soon fostered by its acquisition of ENN Beauty.

37
CHAPTER - IV
LITERATURE
REVIEW

38
 Chapter – 4

LITERATURE REVIEW

LITERATURE REVIEW

Subrahamanyam& others (1982) conducted a study on “Marketing of consumer

goods” in Vishakapatnam. It was found that large number of respondents purchased

consumer products from private retail shop followed by super bazaar & consumer co-

operative store and housewife played a vital role in taking purchase decision.

Ramakrishna Rao, Rama Raju& Ram Prasad (1987) conducted a survey on “Husband

Wife Involvement in Buying Decision Making”. One of the major findings of the

study is husband who are young, highly educated & belong to high income group are

relatively less dominated than their older, less educated &low income counterparts.

Singh J.D. (1981) conducted a survey on “A study of Brand loyalty in India”. The

study concluded that Indian consumers have been found becoming more & more

brand loyal. Depending upon the nature of the product, they have single or multiple

brand loyalty are „quality of the product, „habit of use‟ and „regular availability‟ of

the product.

Debiprasd Mukherjee (2012) conducted a study entitled „Impact of celebrity

endorsement on Brand Image‟. This study shows that consumers report higher self-

brand connection for brands with images that are consistent with the image of a

celebrity that they aspire to be like, particularly in the case when the image of the

celebrity and the brand match.

39
Khraim (2011), state that produce quality plays a very important role in influencing

consumer to be brand loyal customers. Consumers preferred brand name, product

quality, price, promotion, store environment and service quality are related factors

attributable to brand loyalty. All these factors showed positive relationship with brand

loyalty, exclude design.

Ann Kronrod et al (2012) highlighted and explained the surprising prevalence of

assertive environmental messages in the media. Environmental agencies, which are

populated with people who perceive protecting the environment as a highly important

issues.

Siddarth Shriram Shimpi (2012) investigated and evaluated the attitude

characteristics which affect consumer buying behaviour towards male cosmetic

products in Pune City. A questionnaire was developed and distributed to male

consumers in Pune aged between 20 to 50 years by using convenience sampling

technique.

Judy et.al, (2013) have studied the consumer psychological values towards coffee

consumption in a tea culture setting. Interviews using the Zaltman Metaphor

Technique (ZMET) were employed to explore consumer values surrounding coffee

consumption in Taiwan. Qualitative research methods and Xsight software were used

to organize the data and field observations to form a grounded theory. Consumption

of coffee was found to be used as a medium for mental escape from the stress and

pressure from work and society, in seeking relaxation and feeling renewed and as an

insight into the world of nature.

Desai K. (2014) studied consumer buying behavior of cosmetic products in Kolhapur.

His main objective to study the paper is to identify the factors influencing the

consumer buying decision of consumers for cosmetic products. Another objective of

40
the research was to study buying process for cosmetic products. Convenient sampling

method was used as data collection method. Simple percentage and ranking

techniques were used as statistical techniques. He found that the major part of

cosmetic market is covered by females. According to his research, quality is the most

important factor influencing the consumer buying decision. Television and reference

groups are other important factors to influence consumer buying decision.

Rameshwari P., Mathivanan R., Jeganathan M., (2016) studied consumer buying

behavior of cosmetic products in Thanjavur, Tamilnadu. Main objective of the study

is to identify reasons for purchasing cosmetics and to identify factors influencing

consumer buying decision for cosmetic products. Convenient sampling method was

used as research method. Factor ranking method was used as statistical technique for

analyzing data. In this study, it was found that though cosmetic market is dominated

by female consumers, male consumers also participate in the same. The working

respondents are more focused about their appearance and ready to buy high end

products.

Dr. Anandrajan S., Sivagami T. (2016) studied consumer purchase decision

behavior towards cosmetic marketing. The aim of the study was to study consumer

behavior marketing of cosmetic products. They also want to know the influence of

various media in motivating the consumer on a particular brand of cosmetics. Random

sampling technique was used. Sample size was 200. Direct Interview method was

adopted to collect data. Simple and bi-variate tables were prepared from information

collected. Percentage Analysis was used for analyzing data. It found that reduction in

price and attractive promotional schemes can attract more customers. The study

concluded that cosmetics are not part of luxury. Manufactures need to identify the

need before marketing the cosmetic product.

41
Prof. Anute N., Dr. Deshmukh A. Prof. Khandagale A. (2015) studied consumer

buying behavior towards cosmetic products. The main aim of study was to study

demographic profile of consumers and to find factors affecting consumer purchase

decision. They also want to know the purchase pattern for cosmetic products. They

found that majority of people use domestic cosmetic brand, television is most

effective media to get information of cosmetics; quality of product is considered as

most important factor for consumer purchase decision.

Jawahar V., Dr. Tamizhjyothi K.( 2013) studied consumer attitude towards

cosmetic products. The main aim of the study was to examine the influence of attitude

on consumer buying behavior and to identify the important factors that determine the

buying behavior.

Banu Rekha M., Gokila K. (2015) studied consumer awareness, attitude and

preference towards herbal cosmetic products with special reference to Coimbatore

city. The main aim of study was to consumer awareness towards herbal cosmetics, to

identify the factors influencing the consumers to use herbal products. Descriptive

research design was used with non probability convenience sampling with 50

respondents of Coimbatore city. Karl Pearson’s co-efficient of correlation, average

ranking analysis and chi-square analysis were used for data analysis. They found that

family income per month and spending for herbal products have positive correlation.

Quality was ranked as most important factor that influences consumers to purchase

cosmetics. They concluded the research with a note that consumers believe that herbal

cosmetics are not a luxury now and should be used by consumers.

42
Matic M., Barbara P. (2015) studied consumers’ purchase intensions towards

Natural cosmetics. The main aim of study was to identify the determinants that

influence intensions of consumers towards purchasing natural cosmetics. The data

was collected through online questionnaire .data were collected from 204 samples.

Logistic regression and correlation were used for data analysis. Results of the

correlation analysis indicate that there is a strong positive correlation between

purchase intentions towards natural cosmetics and consumer references of natural

cosmetics. The findings may be useful to online retailers, as well as marketers and

practitioners to recognize and better understand the new trends that occur in the

industry of natural cosmetics.

Dr. Nagananthi T., Mahalakshmi M. (2016) Studied consumers’ brand preference

and buying behavior of cosmetic products at Coimbatore city. The main aim of study

was to identify consumers’ brand preference towards cosmetic products and to

determine the relationship of brand factors with demographic data. Primary data were

collected from 200 samples through convenience sampling. Chi square test and one

way ANOVA were used for data analysis. They found that personal care is one of the

most important reasons for purchasing cosmetics. Himalaya herbals were the most

important brand among consumers. Demographic factors influence consumer to

purchase the cosmetics.

Dr. Vibhuti, Dr. Ajay Kumar, Pandey V. (2014) A Case Study on Consumer

Buying Behavior towards Selected FMCG Products. The aim of the study was to

identify factors affecting consumer buying behavior towards FMCG products. The

data were collected through questionnaire. They found that 4 Ps of marketing that is

price, place , promotion and product quality affect the consumer buying behavior

along with psychological and physiological factors.

43
Hemanth Kumar A,H., Franklin John S., Senith S.(2014) studied factors

influencing consumer buying behavior in cosmetic products. The main aim of study

was to identify the factors influencing consumer buying behavior along with to study

influence of income level on consumer buying behavior decisions. Data were

collected from 500 respondents. Descriptive statistics including one way ANOVA

was used for data analysis. They found that quality and price are the most important

factors which can influence consumer buying behavior.

Chang-Tzu-Chiang, Wan-ChenYu.(2010) studied female consumer behavior in

cosmetics market. Case study of female consumers in Hsinchu Area Taiwan. The

main aim of study was to identify the attributes and value attached by female

consumers towards cosmetics. Their demographic statistics were used in research

study.390 samples were used to collect data. Factor analysis and ANOVA were used

for examining various hypotheses. Means End chain theory was used to understand

the signification of product attribute valued by consumers.

Khan I.(2016) studied men’s attitude and motivation towards consumption of

grooming products: Acomparison of Chinese and Pakistani male consumers. The

main aim of study was to explore the concept of masculine identity towards grooming

products. 260 Chinese and 210 Pakistani samples were taken to collect data.

Descriptive statistics, correlation and regression were used to analyze the data. They

found that physical attractiveness is the most important factor for Pakistani males

while Lifestyle is the most important factor for Chinese males for selecting grooming

products. It will help marketers to consider factors while designing marketing strategy

for particular country for grooming products.

44
THE BRAND

Today the primary capital of many businesses is their brands. For decades, the value

of a company was measured in terms of its real estate, then tangible assets, plants and

equipment’s. However, it has recently been recognized that company’s real value lies

outside business itself, in the minds of potential buyers or consumers. According to

Manohar David of Philips (Director and Senior Vice President, Philips India Limited,

1996), a challenge loving, risk taking Brand Manager, who retired after a 31 year

marketing career with Philips, and responsible for its brand success has to say; “In the

1970’s, products were made from the manufacturing, rather than the customer point of

view. But with the focus shifting to the consumer, marketing has assumed a much

larger role”. Orth and Malkewitz (2008) defined five factors which allowed them to

design five holistic perceptions of product package (sturdy, contrastive, natural,

delicate, and indefinable/ miscellaneous). They show that consumers’ responses to

these different holistic perceptions of package generated variations in brand

personality and beliefs for two product categories (bottles of wine and bottles of

perfume). Thus, sincere brands should be packaged naturally, exciting brands

contrastively, competent brands delicately, sophisticated brands naturally or delicately

and rustic brands contrastively or sturdily. However, this research does not allow us to

precisely identify the antecedents of brand personality and the role of the different

physical characteristics of the product. It is only possible to have a very general vision

of the traits of brand personality generated by the various packages identified. On the

other hand, it seems difficult to proceed to package modifications on this basis (for

example, a change of colour or shape), given that this research does not allow us to

predict the consequences. Indeed, the gestalt vision of packaging does not allow the

emphasis to be placed on the physical characteristic of the product package which will

45
influence the attribution of personality traits and beliefs to the brand. We henceforth

propose to utilize amor analytical procedure in order to identify variables which are

likely to create and modify the personality of the brand. Our analysis will be

conducted on two key attributes (package colour and shape) identified by several

authors and as influential variables in the attribution of brand personality traits(Aaker,

1996; Aaker, 1997; Batra, Lehmann and Singh, 1993; Keller, 1993; McCracken,

1986;Ogilvy, 1985; Plummer, 1984-1985).

SATISFACTION

Oliver (1997) defined satisfaction as "the consumer's fulfilment response. It is a

judgment that a product or service feature, or the product or service itself, provided

(or is providing) a pleasurable level of consumption-related fulfilment, including

levels of under- or over-fulfilment" (p. 13). Szymanski and Henard (2001) noted that

previous research on consumer's satisfaction focused primarily on the effects of

expectations, disconfirmation of expectations, performance, affect, and equity on

satisfaction. The importance of expectations has been acknowledged in previous

studies on customer's satisfaction (e.g. Churchill &Surprenant, 1982; Oliver, 1980;

Tse & Wilton, 1988). Customer's expectations are pre-trial beliefs about a product

(Olson & Dover, 1979) that function as comparison standards or reference points

against which product performance is judged (Oliver, 1980; Bearden & Teel, 1983).

The expectancy disconfirmation paradigm suggests that consumers are satisfied when

the product perform better than expected (positive disconfirmation), dissatisfied when

consumers' expectations exceeded actual product performance (negative

disconfirmation), and neutral satisfaction when the product performance matches

expectations (zero disconfirmation/confirmation) (Oliver, 1980; Churchill &

Superman, 1982; Oliver & Sarbo, 1988; Bearden & Teel, 1983).

46
PRODUCTS

Elif A. Ergin et al (2005), carried on a research study with view to determining brand

loyalty among Turkish women with respect to skin-care products and enabling

cosmetics players to penetrate to the Turkish market and to shape marketing

strategies. The results showed that there is a brand loyalty among Turkish women for

cosmetic products. Sondoh Jr., Stephen L et al (2007), examined the impact of brand

image benefits on satisfaction and loyalty intention for colour cosmetic product.

Results revealed that brand image benefits viz. functional, social, experiential and

appearance enhances are positively related to overall satisfaction and loyalty intention

is significantly influenced by functional and appearance enhance.

HamzaSalimKhraim (2011), analysed how factors of brand loyalty towards cosmetic

brands influence the consumer buying behaviour. The findings of this study disclose

that there is positive and significant relationship between factors of brand loyalty

namely brand name, product quality, price, design, promotion, service quality and

store environment with cosmetics brand loyalty.

LOYALTY INTENTION

Jacoby and Chestnut (1978) have identified more than 50 operational definitions of

brand loyalty, which can be classified as behavioural, attitudinal and the composite

approach in the literature. Generally, more than 60% (33) of the 53 loyalty measures

are behavioural terms found in Jacoby and Chestnut's (1978) work. Behavioural

loyalty has been considered as repeat purchase frequency (e.g. Brown, 1952) or

proportion of purchase (e.g. Cunningham, 1956), whereas attitudinal brand loyalty

included "stated preferences, commitment or purchase intentions of the customers"

(Mellens, Dekimpe, &Steenkamp, 1996: p. 513). However, most of these behavioural

definitions above are criticized by Oliver (1999), Jacoby and Chestnut (1978) and

47
Day (1969) as problematic. Oliver (1999) for instance argued that "all of these

definitions suffer from the problem that they recorded what customer did, and none

tapped into the psychological meaning of loyalty" (p. 34). The composite definition of

loyalty emphasized two different approaches of loyalty: the behavioural and

attitudinal concept, which was initially proposed by Jacoby and Chestnut (1978) and

later by Oliver (1997).

48
 CHAPTER - V
OBJECTIVES OF
THE STUDY

49
 Chapter – 5

OBJECTIVES OF THE STUDY

OBJECTIVES OF THE STUDY

 To identify the buying behaviour of Maybelline and Lakme consumers.

 To analyse the consumer’s satisfaction toward the products.

 To know the comparative analysis of Maybelline and Lakme.

 To find out the buying behavior and consumption patterns of cosmetic products

among college girls.

 To analyze the level of satisfaction of the college girls towards cosmetic products.

50
CHAPTER - VI
RESEARCH
METHODOLOGY

51
 Chapter – 6

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research in like manner speech alludes to a quest for information. One can likewise

characterize investigate as a logical methodical research for appropriate data on a

particular theme. Truth be told, inquire about is a craft of logical examination.

The Advanced Learner's Dictionary of momentum English sets out the importance of

research as "a cautious examination or request particularly through quest for new

realities in any part of Knowledge"

EXPLORATORY RESEARCH DESIGN

Exploratory research contemplates are likewise term as planning research considers.

The fundamental reason for such examinations is that of figuring an issue for

increasingly exact examination or of building up the poll from an operational

perspective the significant accentuation in such investigations is on the revelation of

thought and experiences. As such there investigate configuration appropriates for such

examinations must be adaptable enough to give chance to thinking about various part

of an issue under investigation.

Present research is exploratory in nature it is point together pertinent data of

Maybelline items in Lucknow, and about client faithfulness towards the Maybelline

items.

For this examination venture two kinds of information has been use

a. Essential information

52
b. Auxiliary information

ESSENTIAL DATA

Essential information are those, which are gathered just because and are those unique

in character. Essential information are looking like crude material to which factual

technique are applied with the end goal of investigation and translation essential are

been gathered in advertise by three fundamental strategies:-

 Survey of individual

 Observation

 Experiments

I have been gathering essential information by the technique for study of people. Due

to orderly assembling of information from respondents through survey, which is

objective arranged, unambiguous intriguing, straightforward, exact and precise

rousing to respondent and complete in data concern.

TEST SIZE AND DISTRIBUTION:

Test size is 100 and the strategy utilized in delineated inspecting, test dissemination is

dissipated sort.

OPTIONAL DATA

Optional information are those which have just been gathered by some other

individual and which have been gone through the measurable machine at any rate

once.

OUTER DATA:

This kind of Secondary information can be acquired from the outside sources for

example magazine, diary, paper, article and the World Wide Web.

53
LIKELIHOOD SAMPLING

Likelihood inspecting is otherwise called 'irregular examining' or 'chance testing'

Under this inspecting structure, each thing of the universe has an equivalent

possibility of incorporation in the example. It is so to state, a lottery technique

wherein singular units are gotten from the entire gathering not purposely however by

some mechanical procedure. Here it is visually impaired possibility alone that decides

if one thing or the other is chosen.

populace. The example size choice is connected straightforwardly to look into cost.

The Sampling size was attempted for financial specialists through surveys for our

exploration design is 100

UNIVERSE- UNIVERSE OF THIS STUDY IS LUCKNOW.

INFORMATION COLLECTION METHOD

ESSENTIAL DATA

As the examination is exploratory portray and Analytical in nature concerning clients

identified with the Maybelline and sugar Essential information gathered by the

Questionnaire and graphic with various individuals.

Optional DATA-To get Secondary information I have utilized after assets

Papers

Diaries

Sites

Testing

Testing Unit-

clients of Maybelline and sugar

Testing Size-

54
At the point when overview is attempted it is preposterous to expect to cover the

whole populace. The example size choice is connected straightforwardly to look into

cost.

The Sampling size was attempted for financial specialists through surveys for our

exploration design is 100

Universe- Universe of this study is Lucknow.

55
CHAPTER - VII
DATA ANALYSIS
&
INTERPRETATION

56
 Chapter – 7

Data Analysis and Interpretation

1. Are you aware of the brand names Maybelline?

 Yes 100%

 No 0%

(a) Yes
(b) No

(a) Yes; Series1; 1; 100%

INTERPRETATION:

All the respondents know about the brand Maybelline..

57
2. Do You use sugar Products?

 Yes 82%

 No 18%

INTERPRETATION:

The greater part of the respondents utilize the sugar products which is very acceptable

thinking about the extreme rivalry.

58
3. Which Mode product do you use the most?

Online 50%

Offline 50%

50% 50%

INTERPRETATION

As indicated by the study test has been gathered adjusted. Equivalent number of

clients use Maybelline items.

59
4. No. of Consumers perception that Maybelline products are worth the paid by

them?

Yes 84%

No 16%

No; Series1;
0.16; 16%

Yes
No

Yes; Se-
ries1;
0.8400000
00000001;
84%

INTERPRETATION:

The above table shows the 84% buyers recognition are with the cash paid by them

16% customers discernment are not worth the cash.

60
5. Which product of Sugar you use the most?

HAIR CARE 12%

SKIN CARE 20%

BODY CARE 10%

MAKE UP 58%

12%

20%

58%

10%

HAIR CARE SKIN CARE BODY CARE MAKE UP

From the accompanying table these focuses can be surmised:

 12% of the ladies use hair items on month to month premise.

 20% of the ladies use healthy skin items on the month to month premise.

 10 % of the ladies use body care items.

 58% of the ladies go through make items.

61
6. No. and percentage of consumer buying SUGAR products due to Price, Brand

name, and Quality.

Price 22%

Brand Name 44%

Quality 34%

22%
34%

44%

Price Quality Brand Name

INTERPRERATION :

Most of the clients utilize the Sugar items because of its quality. Albeit great number

of client purchase items as a result of its image name and scarcely any clients said

cost of items is another factor to utilize the items.

62
7. Which product of Maybelline you use the most?

HAIR CARE 22%

SKIN CARE 24%

BODY CARE 20%

MAKE UP 34%

22%
34%

24%
20%

HAIR CARE SKIN CARE BODY CARE MAKE UP

From the accompanying table these focuses can be surmised:

 22% of the ladies use hair items on month to month premise.

 24% of the ladies use healthy skin items on the month to month premise.

 20 % of the ladies use body care items.

 34% of the ladies go through make items.

63
8. No. and percentage of consumer buying Maybelline products due to Price,

Brand name, and Quality.

Price 18%

Quality 52%

Brand Name 30%

18%
30%

52%

Price Quality Brand Name

INTERPRERATION:

The vast majority of the clients utilize the Maybelline items because of its quality.

Albeit great number of client purchase items in view of its image name.

64
9. Which brand has the better pricing of it’s products?

Maybelline 48%

Sugar 52%

48%
52%

INTERPRERATION:

Most of the clients said that Maybelline has better nature of its items contrast with the

Sugar items.

65
10. Which company has the better quality products?

Maybelline 58%

Sugar 42%

42%

58%

INTERPRERATION:

Most of the clients said that Maybelline has better nature of its items contrast with the

Sugar items.

66
11. Which brand you will suggest you friends or others the most?

Maybelline 54%

Sugar 46%

46%

54%

INTERPRETATION:

The vast majority of the respondents said that they will allude/recommend

MAYBELLINEproducts to their companions or others.

67
CHAPTER - VIII
FINDINGS

68
 Chapter – 8

Findings

FINDINGS

 All the respondents know about the brand Maybelline.

 Most of the respondents utilize the Maybelline items which is very acceptable

thinking about the intense rivalry.

 84% purchasers observation are with the cash paid by them 16% customers

discernment are not worth the cash.

 12% of the ladies use Sugar hair items on month to month premise, 20% of the

ladies use Sugar healthy skin items on the month to month premise, 10 % of the

ladies use Sugar body care items., 58% of the ladies use Sugar make up items.

 Most of the clients utilize the Sugar items because of its quality. Albeit great

number of client purchase items due to its image name and hardly any clients said

cost of items is another factor to utilize the items.

 22% of the ladies use Maybelline hair items on month to month premise, 24% of

the ladies use Maybelline healthy skin items on the month to month premise., 20

% of the ladies use Maybelline body care items, 34% of the ladies use Maybelline

make up items.

 Most of the clients utilize the Maybelline items because of its quality. Albeit great

number of client purchase items on account of its image name.

 Most of the clients said that Sugar has better cost of its items contrast with the

Maybelline items.

 Most of the clients said that Maybelline has better nature of its items contrast with

the Sugar items.

69
 Most of the respondents said that they will allude/propose MAYBELLINE items

to their companions or others.

70
CHAPTER - VII
LIMITATIONS OF
THE STUDY

71
 Chapter – 7

LIMITATIONS OF THE STUDY

LIMITATIONS OF THE STUDY

 The research is only about comparing Maybelline and Lakme cosmetic products.

 There are only 100 respondents.

 All the respondents are women.

 The respondents belong to Coimbatore district only.

72
CHAPTER - VIII
SUGGESTIONS
AND
RECOMMENDATIONS

73
 Chapter-8

Suggestions and Recommendations

SUGGESTIONS AND RECOMMENDATIONS

A company should market exclusive cosmetic products for male consumers. A

marketer should built up a prompt distribution channel to avoid the problem of non –

availability of products. A proper communication should be created with doctor’s,

beauticians and should be involved in advertisement to make them more attractive,

affective and reliable. Marketer should include your attitude and personal appeal in

their advertising communication as the consumer buy cosmetic products on their own.

74
CHAPTER -X
CONCLUSION

75
 Chapter-10
Conclusion

CONCLUSION

The modern market is highly competitive in nature. The consumer is the king in the

market. The importance gained by the individual consumer in the present market

compel the marketers to look the buying habits, preferences, taste, like and dislikes of

consumers and accordingly they need to revise its policies and marketing mix. While

purchase of cosmetic product, the consumers are found more quality conscious

preferred to purchase ayurvedic products, they wait for the brand during non-

availability, become emerging as important source of information and inspite of

impact of other factors, the actual brand decision is taken by themselves.

Cosmetic market is one of the best growing market sections which have been

competitive and grown continually during the past few years. This study is aimed to

investigate the Consumers preference and brand awareness of cosmetic products in

Gwalior. It is concluded that Maybelline brand has a very good market and Brand

choice.

76
BIBLIOGRAPHY

77
 BIBLIOGRAPHY

BIBLIOGRAPHY

 Philip Kotler, “Marketing Management” 12th edition, Prentice Hall of India.

 S.A. Sherlekar, “Modern Marketing Principles and Practices”, Himalaya

Publishing House, Bombay.

 Suja Nair, “Consumer Behaviour in Indian Perspective”, First Edition 2003,

Himalaya Publishing House Pvt. Ltd. Mumbai.

 G.C. Beri, “Marketing Research”, 3rd Edition 2004, Tata McGraw Hill Pub.

Company Ltd., New Delhi.

 Singh J.D. “A study of Brand Loyalty in India”, Indian Journal of Marketing Vol.

II, Page 15 – 20.

 Prof. S.S. Agarwal, “Brand Ambassadors & their impact on Consumer Behaviour”

– Indian Journal of Marketing Vol. 39, Dec 2009, Page 3 to 8.

 Lilly J., “Customer Perception & Preference towards Branded Products”, Indian

Journal of Marketing, Vol. 40, Feb. 2010, Page 49 – 55.

 Shiva Kumar K. & Meenakshi P. “Children as Decision Makers”, Indian Journal

of Commerce Vol. 56 Jan. 2003, P. 79 – 82.

 Debiprasad Mukharjee, “Impact of Celebrity Endorsement on Brand Image”,

Indian Journal of Marketing Vol. 42 Feb 2012, P. 19 - 22.

78
ANNEXURE

79
 QUESTIONNAIRE

NAME:

1. Are you aware of the brand names Maybelline?

a. Yes

b. No

2. Do You use Maybelline Products?

a. Yes

b. No

3. Which company product do you use the most?

a. Maybelline

b. Sugar

4. No. of Consumers perception that Maybelline products are worth the paid by

them?

a. Yes

b. No

5. Which product of Sugar you use the most?

a. Hair care

b. Skin care

c. Body care

d. Make up

6. No. and percentage of consumer buying SUGAR products due to Price, Brand

name, and Quality.

a. Price

b. Brand Name

c. Quality

80
7. Which product of Maybelline you use the most?

a. Hair care

b. Skin care

c. Body care

d. Make up

8. No. and percentage of consumer buying Maybelline products due to Price, Brand

name, and Quality.

a. Price

b. Quality

c. Brand Name

9. Which brand has the better pricing of its products?

a. Maybelline

b. Sugar

10. Which company has the better quality products?

a. Maybelline

b. Sugar

11. Which brand you will suggest you friends or others the most?

a. Maybelline

b. Sugar

81