7/23/2019 A Consumer Behaviour Analysis of the Cosmetic Industry in Cyprus the Case of the Seventeen Brand

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 A CONSUMER BEHAVIOR ANALYSIS OFTHE COSMETIC INDUSTRY IN CYPRUS:

THE CASE OF THE SEVENTEEN BRAND

RIA MORPHITOUUNIVERSITY OF NICOSIA, CYPRUS

 SAVVAS TSANGARIDES

UNIVERSITY OF NICOSIA, CYPRUS

 Abstract 

Purpose

The purpose of the research is to examine thebrand status of “SEVENTEEN” cosmetics brand inCyprus and to evaluate the possible strategy to befollowed in order to enhance its brand image andhow this specific brand affects customer’s choice.It examines the marketing of Seventeen, theSeventeen’s supply network and how it affects itsbrand image. It also examines how globalization

and the global competitors affect Seventeen’sbranding strategy.

 Additionally it examines the Cypriot cosmeticmarket, and more specifically what affects their purchasing decision about cosmetic products andthe perceptual map of local users in relation to its position strategy.

Key Words: Branding, Promotion, MarketingStrategy 

Research Aim and Objectives:

 Aim:

The aim of the research is to examine the brandstatus of “SEVENTEEN”, the strategy to befollowed in order to enhance its brand image, howbrand affects customer’s choice and the strategymanagement plan of the company.

Objectives:

Examine the existing literature on branding,marketing and strategy.

1.

Identify the importance of branding in thecosmetic market of Cyprus.

Identify the influence which globalization canhave in the cosmetic market of Cyprus.

Examine how an SME company can surviveagainst the giants (local and international) ofthe cosmetic market.

Understand how this market works and thelocal dominant players.

Investigate and examine the existing as well asnew customer’s attitude and behavior relatedto cosmetic branding and its importance.

Identify company’s operational problems.

Provide suggestions of IMC techniques andrecommend strategies to be followed.

Literature Review:

The value to business of owning strong brandsis incontestable. Brands that keep their promise

attract loyal buyers who will return to them atregular intervals. The benefits to the brand ownerare that forecasting cash flows becomes easier,and it becomes possible to plan and managethe development of the business with greaterconfidence. Thus brands with their ability tosecure income, can be classed as productiveassets in exactly the same way as any other, moretraditional assets of a business (plants, equipment,cash, investments as so on) ( www.interbrand.com). A successful brand is an identifiable product,service, person or place, augmented in sucha way that the buyer or user perceives relevant

2.

3.

4.

5.

6.

7.

8.

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unique added values which match their needsmost closely. Furthermore, its success resultsfrom being able to sustain these added values inthe face of competition (Chernatony et al, 2003).Customer satisfaction is the outcome felt by buyerswho have experienced a company performancethat has fulfilled expectations. Customers aresatisfied when their expectations are exceeded.Satisfied customers remain loyal longer, buy more,are less price sensitive and talk favorably aboutthe company. Customer satisfaction has to bemeasured and there are several established waysof doing this (Kotler, Wong, Sanders, Armstrong,2005). It requires managers to develop strategies

that are appropriate to the specific circumstancesof an organization- but these circumstances willchange over time. It also needs some clarity onwhich issues are more important than others andan ability to reconcile the conflicting pressuresfrom the business environment, an organization’sstrategic capability and the expectations ofstakeholders (Johnson, Scholes, Whittington,2005). Reconfiguring a supply network sometimesinvolves parts of the operation being merged-notnecessarily in the sense of a change of ownershipof any parts of an operation but rather in theway responsibility is allocated for carrying out

activities. The most common example of networkreconfiguration has come though the manycompanies that have recently reduced the numberof direct suppliers. Dealing with many suppliersprevents the operation from developing closerelationship with a supplier (Slack, Chambers,Johnson, 2007). One of the more popular andintrinsically satisfying views of IMC is that themessages conveyed by each of the promotionaltools should be harmonized in order that audiencesperceive a consistent set of messages. Above theline and below the line communications need tobe molded into one cohesive bundle (Fill, 2002).For Lancôme, all women share the same vision of

life: charm, seduction and self-confidence. That’swhat everyone calls it the ‘French Touch’ (www.lancome.com).

For a customer buying a product or a serviceimportant role in his/her decision is the brandbehind the product. So in the cosmetic market orindustry branding is very important. The strategy,the communication strategy, the operationalmanagement and the marketing strategy areenhancing the brand of a company if are pointingto the correct actions.

Methodology:For the successful achievement of the objectivesrequired for the research both, secondaryand primary data will be used. Qualitative andquantitative surveys and in- depth interviews willbe conducted.

Objective 1 will be researched through secondaryresearch i.e. secondary data (books, journals,articles and websites). The secondary data will becollected through articles of branding from differentmagazines like cosmetics or marketing magazines,newspapers articles, books on marketing and

branding, websites related to branding and differentmarketing journals.

objectives 2, 3, 6 and 8 will be researched thrughthe primary quantitative research i.e. primary data(make a research assigned to the customers inorder to understand SEVENTEEN’s position inthe market , the awareness of the Brand, brandloyalty, problems, competitive advantages etc.).It will be conducted through a homogeneousstratified random sample and approximately 100questionnaires will be distributed within Cyprus.The sample is homogeneous because the elementin each stratum will be women (due to the reason

that SEVENTEEN products are addressed towomen) and stratified because each elementwill belong to a stratum of age (we will divide thepopulation into age groups).

The 4th and the 5th bjective will be achievedby collecting data through qualitative primaryresearch. A research assigned to the intermediarieswill be conducted through a questioner, to identifySEVENTEEN’s market share, the awareness of theBrand, the problems facing the first-tier customers,the problems facing the first-tier customers whichaffect their image etc. The questionnaire will bedistributed through a simple random sampling

(finite population) of 30 selected customers(perfumeries, beauty stores and pharmacies)within Cyprus.

In-depth interviews with key position persons andManagers (local and international) to understandtheir opinions about the brand status, the way thecompany performs their operational works, theiradvertising campaign and the suggested strategiest be fllwed (objectives 7 & 8).

The project is reliable because of the sample size(fr n=100, Marginal errr=9.8%, fr mre the errr

7/23/2019 A Consumer Behaviour Analysis of the Cosmetic Industry in Cyprus the Case of the Seventeen Brand

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will be less), and valid because we will conduct thequestioners with people (women) using cosmeticproducts taking place in the perfumeries the beautystores and the pharmacies.

Conclusions

Cypriots are among the most prosperous peoplein the Mediterranean region, and the culture andhabits of Cypriot women are changing. Cypriotwomen are dealing more with their appearanceand beauty and for this reason they use morecosmetic products. Cypriot women are found tospend more than the EU12 average spend andeven more than Greek women according to WorldEconomic Database, Coliba Statistics and theresearcher work.

The factors that affects more customers’ decisionfor buying cosmetic products are first quality andthen brand name and price. According to Dodson(2009) building cosmetic brands that consumertrust and identify with, is big bussiness. Accordingto Slack, N. et al. (2007) high quality goods orservices can give to an organisation a competitiveedge, and quality is a major influence on customersatisfaction or disatisfaction. Mohiuddin (2009)

refers that to make color cosmetics more acceptableto consumers, manufacturers will have to convincethem that their products are good value. Thewomen prefer to shop cosmetic products firstlyfrom beauty shops, secondly from beauty shopsin malls, and third from pharmacies. Seventeen’scustomers prefer to shop from malls first and thenfrom pharmacies. Very importantly the results ofmarket survey coinsides with the work done byTeller, C. as descripte in his article ‘’Shoppingstreets versus shopping malls-determinants ofagglomeration format attractiveness from theconsumrs’ point of viw’’ in 2008 that malls argaining ground against street shops.

Practical Implications

This paper besides its academic value it aims toassist any organization in Cyprus in the cosmeticindustry to design a Marketing Strategy that willaffect the consumers’ decision in selecting abrand. Additionally it can assist the organization indeveloping an effective IMC campaign and finallythe appropriate action that needs to be taken bySEVENTEEN in an effort to improve it’s Brandimage and consequently maximize profit.

References:

Chernatony L., McDonald M., (2003), “CreatingPowerful Brands”, Third edition, Oxford, UK:Elsevier Butterworth-Heinemann,.

Kotler P., Wong V., Sanders J., Armstrong G.,(2005), “Principles of Marketing”, Fifth edition,Essex: Pearson Education Limited

Johnson G., Scholes K., Whittington R., (2005),“Exploring Corporate Strategy: text and cases”,Seventh Edition, Upper Saddle River, NJ: PrenticeHall

Dessler G., (2005), “Human ResourceManagement” Tenth Edition, Upper Saddle River,NJ: Prentice Hall

Sloman j., Mark S., (2004), “economics forBusiness”, Third Edition, Upper Saddle River, NJ:Prentice Hall

Fill C., (2002), “Marketing CommunicationsContexts, Strategies and Applications”, ThirdEdition, Essex: Pearson Education Limited

Laurence A., Weber J., (2007),”Marketing andSociety”, Twelfth Edition, London: McGraw-Hill

Saunders M., Lewis P., Thornhill A., (2003),“Research Methods for Business Students”, ThirdEdition, Essex: Pearson Education Limited

Slack N., Chambers S., Johnson R., (2007),“Operation Management”, Fifth edition, UpperSaddle River, NJ: Prentice Hall

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