An Exploratory Marketing Research on

Flow of presentation
1. 2. 3. 4. 5. 6. 7. 8. 9. 10.

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

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

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

Brands & Companies
 HUL

– Pond’s Age Miracle Range  P&G – Olay Total Effects: Fighting the ‘7 signs of ageing’ (lines and wrinkles, sagging, uneven skin tone, age spots, pores, dullness and dryness).  L’Oreal  Garnier: In India from last decade  Shehnaaz Hussain skin care

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

Target Consumer Middle aged socially active Indian women looking for one product that will help her stay young and beautiful Brand Ambassadors Apart from Sushmita Sen,  Roopa Purshottam, Economist & Head, Future Trends (Future Group),  Anita Dongre fashion designer  Tisca Chopra, TV anchor and actor

Problem Definition
 Industry 

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

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

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

Environmental Context
Past info. and forecasts

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

Buyer behavior
 Geographical

locations only in 6 metros and psychological characters of

 Demographic

Indian Women like skin, lifestyle differences, consumption habits

Continued...

Media consumption habits and Promotion responses sensitivity preferences preferences

 Price  Store

 Buyer

 Economic

Environment Economic growth of India is rapid and purchasing power , disposable income is high of the target audience. and Technological Skills interactive and consulting website and promotions like free samples, exchange of used creams.

 Marketing

Management decision Problem

 How

to gain market leadership in Indian anti-ageing segment

Management Research Problem

 To

identify the factors which influence purchase decision of Indian consumers.

Research Methodology
 Exploratory

research is done on the information

collected  “single cross-section design”  Scaling and measurement of research design varies,  Questionnaire design  Convenient sampling

RESEARCH QUESTIONS AND THE HYPOTHESIS
1. Does age have relation with use of anti-ageing products to consumers Ho: Age doesn’t have relation with use of anti-ageing products to consumers H1: Age have relation with use of anti-ageing products to consumers 2. Does Income have any relation with use of anti-ageing products to consumers Ho: Age doesn’t have relation with use of anti-ageing products to consumers H1: Age have relation with use of anti-ageing products to consumers

Continued…

3. Does Brand name affects the purchase decision? H0: Brand Name doesn’t affect the purchase decision H1: Brand Name affects the purchase decision 4. Does Quality affects the purchase decision? H0: Quality doesn’t affect the purchase decision H1: Quality effects the purchase decision

Continued…
5. Does Price affects the purchase decision? H0: Price doesn’t affect the purchase decision H1: Price affect the purchase decision 6. Does Promotional schemes affect the purchase decision? H0: Promotional Schemes doesn’t affect the purchase decision H1: Promotional schemes effect the purchase decision

Continued…

7. Does marketing (consulting) affect the purchase decision? H0: marketing doesn’t affect the purchase decision H1: marketing affect the purchase decision 8. Does packaging affect the purchase decision? H0: packaging doesn’t affect the purchase decision H1: packaging effect the purchase decision

Continued…

9. Distribution (availability) affects the purchase decision?

H0: Distribution doesn’t affect the purchase decision H1: Distribution affect the purchase decision

Questionnaire

Which Anti-Ageing treatment do you prefer to use or recommend? * Botox *Laser Treatment/Surgery * Anti-ageing Cream *Home made pastes • None 2. If you go for Home made pastes, what restricts you to go for other available solutions? * Fear of side effects * Unavailibility/Difficulty in use * You don't see others using it * I don't use home made pastes * High cost

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

       

     

5. Please mention from where you mostly purchase your beauty products. Beauty parlour Retail stores Online purchase I don't mind about place

6. You decide the Brand to purchase...  before going to store  in the store
    

7. Are you familiar with the brand OLAY Never heard of it I am aware but never used it Used it only sometimes Use it on a regular basis

      

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

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

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

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

what restricts you to go for other available solutions?

Please rank the following parameters on a scale of 1-5 which you consider important when you purchase anti-ageing cream.
       

Sound quality Brand name Ease of use Consulting Appearance/Styling Promotional Schemes Availability Price

Please mention from where you mostly purchase your beauty products

You decide the Brand to purchase...

Are you familiar with the brand OLAY

How did you hear about OLAY?

Conclusions

By this Exploratory research thumbed on factors which affect consumer buying behavior . lines for Descriptive Research

 Guide

Limitations
 Response

errors noise

 Background  Industry

experts access limitations

 Economical

References
www.olay.com  Rashi Mittal, P&G , mittal.r.2@pg.com  Ramchandram Dhannaram Managing Partner - Solus Media 0091-40-23230750  www.datamonitor.com  www.search-ebscohost.com  http://www.censusindia.gov.in/Census_Data_2001/Census_ Data_Online/Social_and_cultural/Age_Groups.aspx

Thank You