Consumer Beahviour and Perception of Women Towards Lakme Final

PROJECT REPORT

NAME OF THE ORGANISATION : LAKME UNILEVER PRIVATE LTD.

PLACE : BADI, SOLAN

FIELD OF STUDY :Marketing

TOPIC OF RESEARCH : CONSUMER BEHAVIOUR AND

PERCEPTION OF WOMEN

TOWARDS LAKME

Submitted To

Institute of Engineering and Emerging Technology, Baddi.

In partial fulfillment of the Requirements for the award of Degree of

Masters of Business Administration.

SUBMITTED BY:

SAPNA SOOD

98/08

MBA

ACKNOWLEDGEMENT

I would like to extend my sincere thanks to my advisor, Ms. Neha for providing me with continuous support and guidance which was vital for the successful completion of the project. I would like to take this opportunity to express my gratitude to my project guide, Ms Neha, for a significant contribution made by her towards my learning, by way of making herself available, providing leads in course of the project and most importantly for the tremendous source of encouragement and inspiration she has bestowed on me throughout the project.

I express my sincere gratitude to Mr. Vishal kalia for their timely guidance and in providing the required facilities and information for completing the project.

I am also very indebted to my parents and my brother who have been with me at every moment of my life.for his kind help and support during the tenure of the project.

I also want to take this opportunity to express my sincere gratitude to my friends and all the people who encouraged me throughout the project.

I am also thankfull to god for always being there.

To whomsoever it may concern

This is to certify that

Miss SAPNA SOOD, a student of INSTITUTE OF ENGINEERING AND EMERGING TECHNOLOGIES, BADDI (IMS) has successfully completed her project work of marketing entitled “ CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME” under the guidance of her project supervisor Miss.Neha.

It is her individual research work done on consumer behavior and perception.

I wish her good luck for her career.

Authorized signatory

Name : NEHA

(Project supervisor)

INDEX

CHAPTER PAGE NO 1.EXECUTIVESUMMARY………………………………………………….........…..6-7

2. INTRODUCTION TO CONSUMER BEHAVIOUR………………..………...…..8-14

a). CONSUMER BEHAVIOUR………………………………….………..…8

b). BLACK BOX MODEL…………………………………………………......9

c). SELECTIVE PERCEPTION MODEL………………………….……....10

d). FACTORS WHICH INFLUENCE CONSUMER BEHAVIOUR…….11-14

3. INTRODUCTION TO PERCEPTION……………………………………...15-19

a). WHAT IS PERCEPTION, DEFINITION, FEATURES………………15

b). PERCEPTUAL PROCESS……………………………………………16

c). PERCEPTUAL SELECTIVITY………………………………………...17-18

d). PERCEPTUAL ORGANISATION…………………………………...…19

4. REVIEW OF LITERATURE …………………………………………..………20

5. INTRODUCTION TO COSMETIC INDUSTRY IN INDIA…………………..21-25

6. INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED……26-28

a). INTRODUCTION OF HUL………………………………………………26

b). HISTORY……….………………………………………………………...27

c). COMPETITORS……..…………………………………..……………….28

7. INTRODUCTION TO LAKME UNILEVER PRIVATE LIMITED……….……29-35

a). INTRODUCTION, KEY FACTS AND VISION….………..…………….29

b). PURPOSE AND PRINCIPLES……………………….…………………30

c). CODE OF BUSINESS PRINCIPLES………………………………….31-32

d). LAKME’S POSITIONING IN TERMS OF PERSONALITY…………..33-34

e). HOW LAKME IS INFLUENCING ITS CONSUMERS?......................35

8. PROFILE OF THE ORGANISATION…………………………………………36

9. RESEARCH METHODOLOGY…………………….…………………………37-39

a). OBJECTIVES…………………………….………………………….…..37

b). SOURCES OF DATA…………………………………………………...38

c). RESEACH DESIGN………………….…………………………………38

d). SAMPLING DESIGN……………………………….……..……………..38

e). SAMPLE SIZE…………….……………………….……………………..38

f). SAMPLE DESCRIPTION…………………………………..……………38

g). LIMITATION OF STUDY…………………………………..……………39

10. DATA ANALYSIS……………………………………………………………40-43 a). TESTING OF HYPOTHESIS………………………........…………………..40

b). PROCEDURE FOR TESTING HYPOTHESIS………………………...….41

c). CHI SQUARE TEST…………………………………………..………………41-43

11. DATA INTERPRETATION…………….…………………………………….44-62

12. FINDINGS……………....…………………………………………………….63

13. SUGGESTIONS…………..………………………………………………….64-65

14. CONCLUSION …………………………………....………………………….66

15 ANNEXURES………………………………………………………………….67-68

16. BIBLIOGRAPHY………………………………………………………………69

EXECUTIVE SUMMARY

Cosmetics and toiletries are not just the domain of women any longer and Indian

men too are increasingly taking to the use of more and more body sprays, perfumes and other

cosmetics and toiletries. With rising demand from men, the Indian market is getting enlarged and

many players are coming out with cosmetic products especially skin care products for men.

Globalization will certainly increase cosmetic products penetration and all professionals shall

equip themselves to exploit opportunities offered by this sector.

The consumers are the largest economic group in any country and the present day

business activities are because of consumers only. Thus, consumers are the pillars of the

economy. The consumers are not only the heart of marketing system, but also the controller of

marketing functions. But it the modern marketing system consumers sovereignty has become a

myth on account of the variety of problems in the process of merchandising. The study of

consumer behavior enables marketers to understand and predict consumer behavior in the market

place; It also promote understanding of the role that consumption plays in the lives of individual.

This gives me an opportunity to work on with this endeavor focusing on the

Consumer behavior and perception of women towards cosmetics with special reference

to the Lakme’s cosmetics products’. The primary objective of the study is to understand the

consumer behavior and perception of women by studying the awareness of the financial products

within the consumers and the number of consumers who take the products from Lakme.

The introductory chapter gives and insight to the cosmetic industry. It briefly explains about the

history of cosmetic sector. It also contain the organizational profile of Lakme, stating about its

mile stones, vision, products, protection solutions, advertising effectiveness and finally about its

marketing strategies and challenges.

The second chapter gives a glimpses idea about the area of dissertation i.e. theoretical

background of the study. This part clearly explains the theoretical part of consumer behavior in

general. It also includes statement of the problem, need and impotents of the present study and

focal objectives of the dissertation undertaken. The third chapter explains about literature review.

It briefly describes what all are the information source for the present study and what benefits

has derived from the reference of those literatures.

Next part explains about the research methodology. With the basic understanding of the study

research design was formulated. To collect the data, questionnaires was prepared.

The necessary data were collected through personal interviews and interaction with users of

Lakme products. This chapter specifically explains about the type of research, sample technique,

sample size, actual collection of data and the tools used for the testing of hypothesis.

The last but one chapter contains the analysis and interpretation of data collected. The collected

data was coded through tally bars and presented in percentage wise and depicted in the form of

graphical representation. It also includes the hypothesis test about the overall result of the present

study.

The last chapter is entirely the exploration of the research study giving all respondents opinion in

nutshell as findings i.e. stating that around percentage of customers behave positively towards

the Lakme,s products. The dissertation ends up with the suggestions in order to modify the

current system for a higher growth and progress.

INTRODUCTION TO CONSUMER BEHAVIOUR

Consumer behaviour is the study of when, why, how, and where people do or do not

buy product. It blends elements from psychology, sociology, social anthropology and economics.

It attempts to understand the buyer decision making process, both individually and in groups. It

studies characteristics of individual consumers such as demographics and behavioural variables

in an attempt to understand people's wants. It also tries to assess influences on the consumer

from groups such as family, friends, reference groups, and society in general.

Customer behaviour study is based on consumer buying behaviour, with the customer

playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential

asset for customer behaviour analysis as it has a keen interest in the re-discovery of the true

meaning of marketing through the re-affirmation of the importance of the customer or buyer. A

greater importance is also placed on consumer retention, customer relationship management,

personalisation, customisation and one-to-one marketing. Social functions can be categorized

into social choice and welfare functions.

Each method for vote counting is assumed as a social function but if Arrow’s possibility theorem

is used for a social function, social welfare function is achieved. Some specifications of the

social functions are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity

and weak and strong Pareto optimality. No social choice function meets these requirements in an

ordinal scale simultaneously. The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with the

ranks. Marketing provides services in order to satisfy customers. With that in mind, the

productive system is considered from its beginning at the production level, to the end of the

cycle, the consumer.

Belch and Belch define consumer behaviour as 'the process and activities people engage in when

searching for, selecting, purchasing, using, evaluating, and disposing of products and services so

as to satisfy their needs and desires'.'

BLACK BOX MODEL

Marketing Stimuli

Environmental Stimuli

Buyer characteristics

Decisionproblem

Buyer response

Product economic attitudes Problemrecognition

Product choice

Price Place

technologicalpoliticalcultural

motivationperceptionspersonality

Information searchAlternative evaluation

Brand choiceDealer choicePurcahse timing

Promotion demographic lifestyle Purchase decision

Purchase amount

The black box model shows the interaction of stimuli, consumer characteristics,

decision process and consumer responses. It can be distinguished between interpersonal stimuli

(between people) or intrapersonal stimuli (within people). The black box model is related to the

black box theory of behaviourism, where the focus is not set on the processes inside a consumer,

but the relation between the stimuli and the response of the consumer. The marketing stimuli are

planned and processed by the companies, whereas the environmental stimulus are given by social

factors, based on the economical, political and cultural circumstances of a society. The buyers

black box contains the buyer characteristics and the decision process, which determines the

buyers response.

The black box model considers the buyers response as a result of a conscious, rational decision

process, in which it is assumed that the buyer has recognized the problem. However, in reality

many decisions are not made in awareness of a determined problem by the consumer.

Information search

Once the consumer has recognised a problem, they search for information on

products and services that can solve that problem. Belch and Belch (2007) explain that

consumers undertake both an internal (memory) and an external search.

Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information search is

perception. Perception is defined as 'the process by which an individual receives, selects,

organises, and interprets information to create a meaningful picture of the world'.

THE SELECTIVE PERCEPTION PROCESS:

1. Stage Description

- Selective exposure consumers select which promotional messages they will expose themselves

to.

- Selective attention consumers select which promotional messages they will pay attention to

- Selective comprehension consumer interpret messages in line with their beliefs, attitudes,

motives and experiences

- Selective retention consumers remember messages that are more meaningful or important to

them

The implications of this process help develop an effective promotional strategy, and select which

sources of information are more effective for the brand.CV

2. Information evaluation

At this time the consumer compares the brands and products that are in their evoked

set. How can the marketing organization increase the likelihood that their brand is part of the

consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the

functional and psychological benefits that they offer. The marketing organization needs to

understand what benefits consumers are seeking and therefore which attributes are most

important in terms of making a decision

3. Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase

decision. Sometimes purchase intention does not result in an actual purchase. The marketing

organization must facilitate the consumer to act on their purchase intention. The organisation can

use variety of techniques to achieve this. The provision of credit or payment terms may

encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a

competition may provide an incentive to buy now. The relevant internal psychological process

that is associated with purchase decision is integration.Once the integration is achieved, the

organisation can influence the purchase decisions much more easily.

4. Postpurchase evaluation

It is common for customers to experience concerns after making a purchase decision.

This arises from a concept that is known as “cognitive dissonance”. The customer, having bought

a product, may feel that an alternative would have been preferable. In these circumstances that

customer will not repurchase immediately, but is likely to switch brands next time.

To manage the post-purchase stage, it is the job of the marketing team to persuade the potential

customer that the product will satisfy his or her needs. Then after having made a purchase, the

customer should be encouraged that he or she has made the right decision.it is not effected by

advertisement.

FACTORS WHICH INFLUENCE CONSUMER BEAHVIOUR:

Internal influences

Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality,

motivation, knowledge, attitudes, beliefs, and feelings. consumer behaviour concern with

consumer need consumer actions in the direction of satisfying needs leads to his behaviour of

every individuals depend on thinking.

External influences

Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity,

family, social class, reference groups, lifestyle, and market mix factors Consumer purchases are

influenced strongly by or there are four factors.

The following are the certain factors which influence the consumer behavior:

01. Cultural Factor :-

Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class

Culture:-

The set of basic values perceptions, wants, and behaviours learned by a member

of society from family and other important institutions. Culture is the most basic cause of a

person’s wants and behaviour. Every group or society has a culture, and cultural influences on

buying behaviour may vary greatly from country to country.

Sub Culture :-

A group of people with shared value systems based on common life experiences

and situations. Each culture contains smaller sub cultures a group of people with shared value

system based on common life experiences and situations. Sub culture includes nationalities,

religions, racial group and geographic regions. Many sub culture make up important market

segments and marketers often design products.

Social Class:-

Almost every society has some form of social structure, social classes are

society’s relatively permanent and ordered divisions whose members share similar values,

interests and behaviour.

02. Social Factors :-

A consumer’s behaviour also is influenced by social factors, such as the (i) Groups (ii) Family

(iii) Roles and status

Groups :-

Two or more people who interact to accomplish individual or mutual goals.

A person’s behavious is influenced by many small groups. Groups that have a direct influence

and to which a person belongs are called membership groups. Some are primary groups includes

family, friends, neighbours and coworkers. Some are secondary groups, which are more formal

and have less regular interaction. These includes organizations like religious groups, professional

association and trade unions.

Family:-

Family members can strongly influence buyer behaviour. The family is the most

important consumer buying organization society and it has been researched extensively.

Marketers are interested in the roles, and influence of the husband, wife and children on the

purchase of different products and services.

Roles and Status :-

A person belongs to many groups, family, clubs, organizations. The person’s

position in each group can be defined in terms of both role and status.

03. Personal Factors :-

It includes

Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality

and self concept.

Age and Life cycle Stage:-

People changes the goods and services they buy over their lifetimes. Tastes

in food, clothes, furniture, and recreation are often age related. Buying is also shaped by the

stage of the family life cycle.

Occupation :-

A person’s occupation affects the goods and services bought. Blue collar

workers tend to buy more rugged work clothes, whereas white-collar workers buy more business

suits. A Co. can even specialize in making products needed by a given occupational group. Thus,

computer software companies will design different products for brand managers, accountants,

engineers, lawyers, and doctors.

Economic situation :-

A person’s economic situation will affect product choice

Life Style :-

Life Style is a person’s Pattern of living, understanding these forces involves

measuring consumer’s major AIO dimensions. i.e. activities (Work, hobbies, shopping, support

etc) interest (Food, fashion, family recreation) and opinions (about themselves, Business,

Products)

Personality and Self concept :-

Each person’s distinct personality influence his or her buying behaviour. Personality

refers to the unique psychological characteristics that lead to relatively consistent and lasting

responses to one’s own environment.

04. Psychological Factors :-

It includes these Factors.

i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes

Motivation :-

Motive (drive) a need that is sufficiently pressing to direct the person to seek satisfaction of the

need

Perception :-

The process by which people select, Organize, and interpret information to form a meaningful

picture of the world.

Learning:-

Changes in an individuals behaviour arising from experience.

Beliefs and attitudes :-

Belief is a descriptive thought that a person holds about something Attitude, a Person’s

consistently favourable or unfavourable evaluations, feelings, and tendencies towards an object

or idea

INTRODUCTION TO PERCEPTION

Human beings may differ because of their differences & uniqueness. People

often see the same situation/ phenomenon differently within the organization & outside the

organization. For example: when there is an accident in the factory, the supervisor may treat it as

the carelessness of worker while the worker may treat it as lack of adequate provision of security

measures. Thus the situation remaining the same, cause has been assigned differently by

different group of people. In order to understand why people see the same situation differently,

one has to understand PERCEPTION & its different aspect.

WHAT IS PERCEPTION ?

Perception is a congnitive process. Cognition is basically bit of information;

cognitive process involves the way in which people process/understand that information.

Perception process involves selecting, organising and interpreting the stimulus. Thus perception

is the process selecting, organizing and interpreting or attaching meaning to the events happening

in the environment. However, what one can perceive can be different from objective reality.

Their need not be but there is often, disagreement. For example: it’s possible that all the

employee in a firm may view it as a great place to work favorable working conditions,

interesting job assignment, good pay and excellent benefit but as most of us know, it’s very

unusual to find such agreement.

DEFINITION

“PERCEPTION may be defined as a process by which individual organize and

interpret their sensory impression in order to give meaning to their environment.”

FEATURES OF PERCEPTION

Perception is the intellectual process through which a person selects the data from the

environment, organizes it, and obtains meaning from it.

Perception is a psychological process also. The manner in which people perceive the

environment affects his behavior.

Perception, being an intellectual and psychological process, becomes a subjective process

and different people may perceive the same environmental event differently.

PERCEPTUAL PROCESS :

Perception process is explained by input-throughput-output approach. This approach

emphasizes that there is input which is processed and gives output. Perceptual process present

three elements of perception. These are: existence of stimuli (objects, event, &people) perceptual

mechanism (selecting, organising, & interpretation) and perceptual outputs (attitude, opinion, &

values). Perceptual output along with other determinant of human behavior affects and shape

behavior. Let us see how perceptual process works in terms of its three basic elements.

1. PERCEPTUAL INPUT: The stimuli in the environment- objects, events, or people- can

be considered as the perceptual inputs. Thus everything in the setting where the events

occur, or which contributes to the occurrence of the events, can be treated as perceptual

input. When the perceiver interacts with a stimulus, sensation take place which starts

perceptual process. (Sensation is described as the response of a physical sensory organ.

The physical senses are vision, hearing, touch, smell, and taste.)

2. PERCEPION MECHANISM: Perceptual mechanism involves three elements-

selection of stimuli, organization of stimuli, and interpretation of stimuli.

3. SELECTION OF STIMULI: After receiving the stimuli from the environment, some

are selected for further processing while others are screened out because it is not possible

for a person to select all stimuli which he see in the environment. There are two types of

factors which affects the selection of stimuli. These are external and related to stimuli and

internal related to the perceiver.

4. ORGANISATION OF STIMULI : After the stimuli are selected these are organized in

some form of in order to make sense out of that. The various forms of organizing stimuli

are figure-ground, perceptual grouping, simplification and closure.

5. INTERPRETATION OF STIMULI: The perceptual inputs that have been organized

will have to be interpreted by the perceiver to extract some meaning of what is going on

in the situation. People interpret the meaning of what they have selected and organized in

term of their own assumption of people, things and situations. They interpret the things as

good/bad, beautiful/ugly, and so on. Interpretation of stimuli is affected by situation

under which perception take place and characteristics of perceiver.

6. PERCEPTUAL OUTPUT : Based on perceptual mechanism which ends with

interpretation of stimuli, perceptual output emerges. The output may be in the form of

attitudes, opinions, beliefs, impression about the stimuli. This output along with other

factors affecting human behavior may result in overt behavior.

PERCEPTUAL SELECTIVITY

Perception is a selective process. While selection, certain aspects of stimuli are screened

out and others are admitted. For example: when people read a newspaper, they do not read the

entire newspaper but read only those news which interest them. This is known as perceptual

selectivity. This is caused by variety of factors which may be grouped into two categories:

1. Extrenal factor

2. Internal factor

EXTERNAL FACTORS

The external factors are Nature, Location, Size, Intensity, Repetition, Novelty &

Familiarity, Contrast And Motion. Their impacct on the perceptual selectivity is as follow:

1. NATURE : By nature we mean, whether the object is visual or auditory, and whether it

involves pictures, peoples or animals. It is well known that pictures attract attention more

readily than words.

2. LOCTION : The best location of a visual stimulus for attracting attention is in the center

of the page. When this position is not available in the newspaper or a magazine, a

position in the upper portion of a page is more favourable than on in the lower portion

and left hand side receive more attention than the right hand side.

3. SIZE : Generally objects of larger or bigger size attract more attention than the smaller

ones. For Example: in an advertisement in newspaper full page spread attract more

attention than a few lines in the classified section.

4. INTENSITY : The intensity principle states that more intentse the external stimulus is,

the more likely is to be perceived. A loud sound, or bright light is noticed more as

compared to soft sound, or dim light. For Example: advertisement on televisions are

slightly louder than the regular programmes to gain customer’s attention.

5. REPETITION : The repetition principle states that a repeated external environment is

more attention- getting than a single one. Repetition increase people’s alertness to the

stimulus. For example: Advertisers use this principle by repeated advertisement of the

same product to attract people’s attention.

6. NOVELTY & FAMILIAIRTY :Novelty & familiarity principle state that either a

novel or a familiar external situation can serve as attention-getter. New objects or events

in a familiar setting, or familiar objects or events in new setting draw better attention.

7. CONTRAST : Contrast is a kind of uniqueness which can be used for attention getting.

Letters of bold types, persons dressed differently than others, buildings of different colors

in the same locality,etc. get more attention.

8. MOTION : Motion principle states that a moving object draws more attention as

compared to a stationary object. For Example: commercial on televisions (moving ones)

get more attention than print media.

INTERNAL FACTORS While external factors are related to environment stimuli, internal

factors are related to the individual’s complex psychological makeup or oneself. People

generally select those stimuli and situation which are compatible to their personality, motivation,

and other personal factors. Such factors are- self-concept, inner- needs, response disposition,

individual attitude, interest, learning, and experience. A brief description of their impact on

perception selectivity is as follow:

1. SELF-CONCEPT : The way a person views the world depends a great deal on the

concept or image he has about himself. Knowing oneself makes it easier to see others

accurately. People’s own characteristics affect the characteristics which they are likely to

see in others. They select only that aspects which they find match with their

characteristics.

2. INNER NEEDS : People’s perception is determined by their inner needs. The need is

feeling of tension or discomfort when one thinks him missing something or when he feels

he has not quite closed a gap in his knowledge. People with different needs select

different items to remember or respond to. When people are not able to satisfy their

needs’ they are engaged in wishful thinking, which is a way to satisfy the needs not in

real world but imaginary world , the day dreaming.

3. RESPONSE DISPOSITION : Response disposition refers to a person’s tendency to

perceive familiar stimuli rather than unfamiliar ones. Thus, a person perceives the things

with which he is familiar. For Example: persons having dominant religious value took

lesser time in recognizing such related word as ‘priest’ whereas they took longer time in

recognizing words related with economic value such as ‘cost’ or ‘price’.

4. INDIVIDIAL ATTITUDE : The person tries to fit his attitude (whether positive or

negative) in the situation and perceive something. For Example: if a person always thinks

negative, he thinks that whatever is happen in his life will be negative, he will perceive

everything in the negative way. On the contrary if he thinks positive, he is an optimistic,

he will perceive everything in a positive way.

5. INTEREST : If a person is interested in something he will perceive that thing in better

way. On the other hand, if the person is not interested in that thing, he will not perceive

that thing in a better way. For Example: children watch television with the good interest

and curiosity, so they perceive quickly whatever is shown in TV.

6. LEARNING & EXPERIENCE : People perceive many things differently according to

their learning and experience of the past. If a person has wrong impression or bad past

experience of something, he see the things negative and he perceive that thing in only

negative way because it is his experience that forces him to perceive in this way.

PERCEPTUAL ORGANISATION People tend to organize the stimuli rather than perceiving it

as a whole. Following ways:

Figure and ground relationships: The figure represents what catches your attention as

distinct and unique, while the ground indicates what you perceive as routine.

Grouping helps individuals break up information and register it in their memory. That

way, even use of multiple stimuli can work and create several associations.

Closure is a need of consumers as well. They want to take the message to its logical

conclusion if the stimulus does not give complete information. Teaser ads take advantage

of this.

Does the consumer perceive the stimuli as intended? Perceptual distortion can occur due to a

variety of reasons:

Physical appearance: The kind of people you are using in advertisements will distort

perceptions, which has to be used to your benefit.

Stereotypes that develop can distort perception

First impressions of a product/service get carried on for a long time.

Jumping to conclusions: If you cannot present yourself differently, the prospect can

jump to conclusions before you even make a presentation, e.g. tele calling

Halo effect: One or two dimensions of the stimuli will create broad perceptions on the

product. Brand extension can be an example.

INTRODUCTION TO COSMETICS INDUSTRY IN INDIA

India, with a population of nearly a billion people, is a country of contrasts. India's

urban population is the main engine that fuels the demand for various cosmetic products. The

‘morphing’ of India is subtle and the changes are not visible for the first time visitor. However,

the market liberalization process that began in 1991, along with the crowning of three Indians

as Miss World and Miss Universe during the preceding four years, have made Indian women

conscious of their appearance. Consequently, the cosmetic consumption patterns of Indian

women have changed, and this trend is fuelling growth in the cosmetic sector. The Indian

cosmetics and toiletries market grew by 8.7% in current value terms in 2001, with value sales

amounting to Rs126 billion.

The market for cosmetics and toiletries in India is characterized by high volume sales of low-

end toiletry products, while at the same time the legendary emerging middle-class has

generally been fuelling demand for cosmetics and upper-mass toiletries. Products that are too

specialized have yet to be successful on the Indian market. Examples include toners, hand care

and other value-added skin care products, bath & shower products and aftershave balm. Only

the richest consumers can afford these; indeed, the average consumer may be unaware of their

purpose or even existence. This also explains the relatively poor showing of perfumes,

especially the premium variety.

This cosmetics and personal care industry has been growing at an average rate of 20 per cent

for the last few years. The growing Indian cosmetics market offers promising prospects for

international brands. The growth rate in the cosmetics market reflects an increasing demand for

beauty care products in India. Perfumes and fragrances, skin care, and hair care products are

some of the major segments with promising prospects for U.S. companies. Penetration of most

cosmetic and toiletries is very low in India. Current consumption of many products is well

below that of many countries in Asia. The low market penetration of many cosmetics and

personal care products offers room for growth.

Market Overview :

The current size of the Indian cosmetic market is approximately US$ 600 million. Of this, the

fastest growing segment is color cosmetics, accounting for around US$ 60 million of the

market. Industry sources estimate a rapid growth rate of 20 percent per annum across different

segments of the cosmetics industry reflecting an increasing demand for all kinds of beauty and

personal care product. Growth has come mainly from the low and medium-priced categories

INTRODUCTION OF LAKME UNILEVER PRIVATE LTD

“Lakme is the Indian woman’s Beauty Sutra” – inspiring expression of her unique beauty and

sensuality.Lakme brings expert products and services that are borne out of true understanding of

the needs of the Indian woman. They help the Indian woman in expression of her best self –

sensual, original, expressive, alive and intuitive. Lakme inspires her to unleash the potency of her

femininity, beauty and sensuality

Key facts

Lakme was the first major beauty brand in India and takes pride in being the expert on Indian

Beauty for over 50 years. It is complete beauty brand spanning colour cosmetics, skin care &

hair styling products and extending to beauty services through the network of Lakme Beauty

Salons. Its bond with beauty and fashion is manifested through the Lakme Fashion Week, which

is now the largest fashion event of its kind in the country. Lakme has a foot print of over 1200

assisted sales outlets, which is the largest span of outlets with “Beauty Advisors” in the country.

Our vision

Unilever products touch the lives of over 2 billion people every day – whether that's through

feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and

clean, or by enjoying a great cup of tea, satisfying meal or healthy snack.

A clear direction

The four pillars of our vision set out the long term direction for the company – where we want to

go and how we are going to get there:

We work to create a better future every day

We help people feel good, look good and get more out of life with brands and services

that are good for them and good for others.

We will inspire people to take small everyday actions that can add up to a big difference

for the world.

We will develop new ways of doing business that will allow us to double the size of our

company while reducing our environmental impact.

Purpose & principles

Our corporate purpose states that to succeed requires "the highest standards of corporate

behaviour towards everyone we work with, the communities we touch, and the environment on

which we have an impact."

Always working with integrity

Conducting our operations with integrity and with respect for the many people, organisations and

environments our business touches has always been at the heart of our corporate responsibility.

Positive impact

We aim to make a positive impact in many ways: through our brands, our commercial operations

and relationships, through voluntary contributions, and through the various other ways in which

we engage with society.

Continuous commitment

We're also committed to continuously improving the way we manage our environmental impacts

and are working towards our longer-term goal of developing a sustainable business.

Setting out our aspirations

Our corporate purpose sets out our aspirations in running our business. It's underpinned by our

code of business Principles which describes the operational standards that everyone at Unilever

follows, wherever they are in the world. The code also supports our approach to governance and

corporate responsibility.

Working with others

We want to work with suppliers who have values similar to our own and work to the same

standards we do. Our Business partner code, aligned to our own Code of business principles,

comprises ten principles covering business integrity and responsibilities relating to employees,

consumers and the environment.

A vitality mentality

Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and

personal care with brands that help people feel good, look good and get more out of life. Our

deep roots in local cultures and markets around the world give us our strong relationship with

consumers and are the foundation for our future growth. We will bring our wealth of knowledge

and international expertise to the service of local consumers – a truly multi-local multinational.

Our long-term success requires a total commitment to exceptional standards of performance and

productivity, to working together effectively, and to a willingness to embrace new ideas and

learn continuously.

Code of business principles

Standard of Conduct We conduct our operations with honesty, integrity and openness,

and with respect for the human rights and interests of our employees.

Obeying the Law Unilever companies and our employees are required to comply with

the laws and regulations of the countries in which we operate.

Employees Unilever is committed to diversity in a working environment where there is

mutual trust and respect and where everyone feels responsible for the performance and

reputation of our company. We will recruit, employ and promote employees on the sole

basis of the qualifications and abilities needed for the work to be performed.

Consumers Products and services will be accurately and properly labelled, advertised

and communicated.

Shareholders Unilever will conduct its operations in accordance with internationally

accepted principles of good corporate governance. We will provide timely, regular and

reliable information on our activities, structure, financial situation and performance to all

shareholders.

Business Partners Unilever is committed to establishing mutually beneficial relations

with our suppliers, customers and business partners.

Community Involvement Unilever strives to be a trusted corporate citizen and, as an

integral part of society, to fulfil our responsibilities to the societies and communities in

which we operate.

Public Activities Unilever companies are encouraged to promote and defend their

legitimate business interests. Unilever will co-operate with governments and other

organisations, both directly and through bodies such as trade associations, in the

development of proposed legislation and other regulations which may affect legitimate

business interests..

The Environment Unilever is committed to making continuous improvements in the

management of our environmental impact and to the longer-term goal of developing a

sustainable business.

Innovation In our scientific innovation to meet consumer needs we will respect the

concerns of our consumers and of society.

Competition Unilever believes in vigorous yet fair competition and supports the

development of appropriate competition laws.

Business Integrity Unilever does not give or receive whether directly or indirectly bribes

or other improper advantages for business or financial gain. No employee may offer give

or receive any gift or payment which is, or may be construed as being, a bribe.

Conflicts of Interests All Unilever employees are expected to avoid personal activities

and financial interests which could conflict with their responsibilities to the company.

Any breaches of the Code must be reported in accordance with the procedures specified

by the Chief Legal Officer.

Business Partner Code We are committed to working with our business partners to

achieve high standards and to provide greater transparency on how we work together.

Maintaining high standards together To meet the expectations our consumers have of

our brands as high quality, reliable products, we form close working relationships – many

of them long-term – with our business partners. In support of this approach, we have

developed a Business Partner Code that is compatible with our Code of Business

Principles. The Code makes clear the standards to which we expect our business partners

to adhere. It contains 10 principles covering business integrity and responsibilities

relating to employees, consumers and the environment.

Business partner code There shall be compliance with all applicable laws and regulations of the

country where operations are undertaken. There shall be respect for human rights, and no

employee shall suffer harassment, physical or mental punishment, or other form of abuse. Wages

and working hours will, as a minimum, comply with all applicable wage and hour laws, and rules

and regulations, including minimum wage, overtime and maximum hours in the country

concerned .There shall be no use of forced or compulsory labour, and employees shall be free to

leave employment after reasonable notice .

There shall be no use of child labour, and specifically there will be compliance with relevant ILO

standards .There shall be respect for the right of employees to freedom of association* .Safe and

healthy working conditions will be provided for all employees .

Corporate Governance We have always aspired to high standards of corporate

governance. Transparency and accountability are the two basic tenets of Corporate

Governance. We, at Hindustan Unilever, feel proud to belong to a Company whose

visionary founders had laid the foundation stone for good governance long back and

made it an integral principle of the business, demonstrated in the words above.

Our approach to Corporate Governance To succeed, we believe, requires the highest

standards of corporate behaviour towards everyone we work with, the communities we touch,

and the environment on which we have an impact. This is our road to sustainable, profitable

growth and creating long-term value for our shareholders, our people, and our business partners.

LAKME’S POSITIONING IN TERMS OF PERSONALITY AND SELF CONCEPT:

Lakme is a product range that caters to the beautification needs of not only women in their adult

age but in today's context teenagers also. It has a brand personality of someone who takes care of

you and your beauty needs. It tries to position itself amongst its consumers as a product range

that will help them look beautiful as is evident from its catchphrases:

1. On top of the world!

2. Source of radiant beauty1!

Lakme has a range of beauty products to offer to its consumers. Some of the ways in which it

tries to position itself:

1. Lakme Hair Color: magic of colors (collage).

2. Lakme (versatile eye shadow collection): rich, long lasting and healthy make up.

3. Lakme fair perfect: For flawlessly fair skin!

4. Lakme face magic: daily wear soufflé.

5. Lakme (skin vitalizer): radiant skin, now and forever.

6. Lakme (moisturizer): radiant skin, now and forever.

7. Lakme nail polish and lipstick: electric brilliance/sensual brilliance

8. Lakme sun expert (sunscreen): sun safe hamesha! (face the sun with a smile)

9. Lakme pure defense: anti-pollution system.

10. Lakme Tropical Island (cosmetics): defining the future of fashion.

11.Lakme hair care (international): natural hair care

12. Lakme hair next: exclusive range of hairstyle products that give you that salon look

instantly.

On the basis of above mentioned positioning strategies Lakme can have the following

characteristics that determine its personality:

· Someone who takes care of your beauty needs.

· A long lasting beautification product range.

· Something that is not harsh on your body or harmful for your beauty.

· A product that provides you with an option of getting beautiful hair.

· A product that helps you get a beautiful skin.

· A cosmetic product that you can wear for the entire day and not a special occasion.

· Someone who tells you right things about looking good.

· It's an Indian cosmetic brand.

· It covers all facets of beauty care for women.

The following factors of Lakme's personality help in differentiation of its products from the

competition:

· It covers all facets of beauty care.

· It helps arm the consumer with products to pamper her from head to toe i.e. a complete

product range.

HOW LAKME IS INFLUENCING ITS CONSUMERS?

THE CONCEPT OF EGO: · According to Freudian Psychoanalytic theory Lakme tries

to position itself on the basis of its appeal to the consumers which have an ego. This

means that the consumers of Lakme have an impulsive drive for which they seek

immediate satisfaction without concern for means of satisfaction. · Women all over the

world are always expected to look good and Indian women are no exception; More so

because of the fact that Indian women in general do not have a fair skin like that of their

western counterparts. Thus it becomes but natural for Indian women to try and look good

and use beauty products that help enhance their looks and style. With globalization and

liberalization of Indian economy and the changing demographics and income levels there

is more and more concern to look good as today's Indian woman is no longer confined to

her home but is a big contributor to the growth of Indian economy.

THE CONCEPT OF PERSONALITY GROUPS: · Lakme tries to woo the compliant

consumers according to Karen Horney's classification4 of personality groups i.e. people

who move towards others. Those who have desire to be loved, wanted and appreciated.

As is earlier stated women are supposed to look good not only in western countries but

also in India. Women always appreciate if someone calls them beautiful and it has

become the custom of the society to see women in such a context. So it would be prudent

to say that according to the societal norms a women has to look good at all times and

which has a bearing on the psychology of female consumers towards cosmetic products

which help them achieve that desired look. Needless to say that Lakme plays on the

concept of women wanting themselves to be appreciated for their beauty and being loved

for that.

CONCEPT OF PERCEPTUAL SELECTION: On the basis of perceptual selection

Lakme has tried to position itself among its consumers in the following ways: Lakme has

tried to gain the attention of its consumers by line extension and having more and more

product depth, packaging and attractive print advertisements. If we look at the line

extensions of Lakme than we would observe that it is in almost all the segments of

cosmetic care ranging from hair care to skin care to beauty salons! Looking at the product

depth it is pretty evident that Lakme has actually tried to fill in all areas that it can,

particularly the nail paint and the lip color segment is a big hit among Indian women as it

offers them a wide variety of products in terms of colors as well as various styles that

they can choose from.

PROFILE OF THE ORGANISATION

Name of the company : LAKME UNILEVER PRIVTAE LTD

Address of Head office : 165166 hindustan lever house

Backbay reclamation, church gate, Mumbai,

Maharashtra.india 400020

City : baddi

State :HIMACHAL PRADESH

Status : Private

Telephone number : -+91 2222870622

Email : [email protected]

Website : http://lakmeindia.com

Chief executive officer : Mr.Anil chopra

Contact person : Richa puranesh- marketing manager

Mobile no : 912222850552

Company’s product range:

Lakme Lipstick.

Lakme Nail Polish.

Lakme Eyeliner.

Lakme Kajal.

http://lakmeindia.com/

mailto:[email protected]

Lakme Strawberry Face Wash.

Lakme Radient Rose Powder.

Lakme Nail Enamel Remover.

RESEARCH METHODOLOGY

Research methodology is a careful investigation for inquiring in a systematic method and finding

solution of a problem. It comprises the defining and redefining of problem formulating hypothesis, collection

and evaluating data, making detection and reaching conclusion. This research consists of following element.

OBJECTIVE OF STUDY

SOURCES OF DATA

RESEARCH DESIGN

SAMPLING DESIGN

OBJECTIVES OF THE STUDY

1. To understand the attitudes and perception of respondents towards cosmetics products.

2. To understand the growth of cosmetics sector in today’s scenario.

3. To study the respondents awareness towards lakme.

4. To know people perception towards lakme products available in the market.

5. To understand people’s consumer behavior with reference to cosmetics.

SOURCES OF DATA

Primary Source of Data

Primary data are those collected by the investigator himself for the first time and thus they are original in

character, they are collected for a particular purpose. A wellstructured questionnaire was personally

administrated to the selected sample to collect the primary data.

Secondary Source of Data

Secondary data are those, which have already been collected by some other persons for their purpose and

published. Secondary data are usually in the shape of finished products. External Data, was generated from

magazines, research books and internet (websites).

RESEARCH DESIGN

The study was conducted as an exploratory sampling survey method to collect primary and secondary data.

SAMPLING DESIGN A sample is a representative part of the population. In sampling technique, information

is collected only from a representative part of the universe and the conclusions are drawn on that basis for the

entire universe. A random sampling technique was used to collect data from the respondents. A random sample

is a sample selected from a population in such a way that every member of the population has a equal chance of

being selected and the selection of any individual does not influence the selection of any other. The selection is

purely depends on chance. So while conducting the survey, 100 respondents were selected at random.

SAMPLE SIZE Sample size denotes the number of elements selected for the study. For the present study, 100

respondents were selected at random. All the 100 respondents were the customers of one or another cosmetic

industry. Out of these 100 respondents 60 were specifically Lakme customers.

SAMPLE DESCRIPTION The respondents of this dissertation was 100 cosmetics users of different cosmetics

companies in general, out of which 60 respondents were the users of Lakme in particular; as the dissertation was

focused on the consumer behavior and perception of users towards the cosmetic products with special reference

to Lakme. The respondents were personally contacted for the purpose of the study. A questionnaire was used for

survey and was answered by the customers of different life insurance companies. Most of the respondents were

in age group of 18-20; which was having a frequency of 68, 14 respondents were in the age group of 21-24, 10

respondents were in the age group of 24-29 and 8 respondents were more than 30 years. According to gender

wise, all were female respondents. Nearly half of the respondents were students and a big chunk of the rest was

employed women.

LIMITATION OF STUDY

1. An underlying assumption for the entire project is that the details and the feedback received from the

population is true.

2. It was difficult to find respondents as they were busy in their schedule, and collection of data was very

difficult. Therefore, the study had to be carried out based on the availability of respondents.

3. Some of the respondents were not ready to fill the questionnaires and some of them were not ready to come

out openly.

1. Which company’s cosmetics are you using?

Table showing that cosmetics of which company are most used.

PARTICULARS FREQUENCY PERCENTAGELOREAL 20 20%LAKME 60 60%GARNIER 15 15%LOTUS 05 5%

proportion of women using which cosmetic brand

lakmelorealgarnierlotus

From the above table it can be inferred that:

Out of the 100% population only 20% ladies are using loreal. Out of 100%of population only 60% of ladies are using Lakme. Out of 100% of population only 15% of the ladies are using garnier. Out of 100% of population only 5% of the ladies are using lotus.

2. Which product are you using most often in a month?

Table showing that which product is being used most often in a month.

PARTICULARS FREQUENCY PERCENTAGEHAIR CARE PRODUCTS 12 12%SKIN CARE PRODUCTS 20 20%BODY CARE PRODUCTS 10 10%MAKE UP 58 58%

chart showing that which products are used most.

makeupskin carehair care productbody care product

From the following table these points can be inferred:

12% of the women use hair products on monthly basis. 20% of the women use skin care products on the monthly basis. 10 % of the women use body care products. 58% of the women of the women use make up products.

3. Do you think that your product provides you with an option of healthy and long lasting harmless?

Table showing the number of people who think that think that their product provides them with an option of healthy and long lasting harmless Makeup

particulars Frequency PERCENTAGEYes 58 58%No 20 20%May be 17 17%Not sure 5 5%

no not sure may be yes0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

graph showing the number of respondents who think that their cosmetics are healthy

Series 1

From the following table we can infer:

58% of the people trust their brand when it comes to healthy makeup. 20% of the people do not trust their brand when it comes to healthy makeup, but because

results use it. 17% of the people think that not all of the products of their brand is healthy. 5% of the people are not at all sure of the healthiness of their products.

4. What is the reason that motivates you to use the products of a particular company?

Table showing the reasons that motivates the respondents to buy particular product.

PARTICULARS FREQUENCY PERCENTAGEECONOMICAL 35 35%TRENDSETTER 20 20%MEASURABLE RESULTS 28 28%EASILY AVAILABLE 17 17%

REASONS THAT MOTIVATES RESPONDENTS TO BUY A COSMETIC

ECONOMICALTRENDSETTERMEASURABLEEASILY AVAILABLE

From the following table we can infer that:

35 respondents out of 100 respondents find their cosmetics to be economical. 20 respondents out of 100 respondents find their cosmetics to be trend setter. 28 respondents out of 100 respondents find their cosmetics to show measurable results. 17 respondents out of 100 respondents find their cosmetics to be easily available.

5. Approximately how much do you spend in the buying of cosmetics?

Table showing that how much the respondents invest in the buying of cosmetics.

PARTICULARS FREQUENCY PERCENTAGEBelow Rs. 500 68 68%Rs. 500 – Rs. 1000 12 12%Rs. 1000- Rs. 2000 14 14%Rs. 2000 and above 6 6%

Rs. 500

more than Rs. 2000

Rs. 500- Rs. 1000

Rs 1000- Rs. 2000

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

chart showing that how much the respondents spend in cosmetics.

Series 1

From the following table we can infer the following points:

68 respondents out of 100 respondents spend below Rs . 500 in cosmetics. 12 respondents out of 100 respondents spend Rs. 500- Rs. 1000 in cosmetics. 14 respondents out of 100 respondents spend Rs. 1000 – Rs. 2000 in cosmetics. 6 respondents out of 100 respondents spend more than Rs. 2000 in cosmetics.

6. Do you find your cosmetic products economical?

Table showing that how many respondents find their cosmetics to be economical.

PARTICULARS FREQUENCY PERCENTAGEYES 49NO 30 30%MAY BE 11 11%NOT SURE 10 10%

chart showing the respondents who find their cosmetics economic or less economic

yesnomay benot sure


49 respondents out of 100 respondents believe that their cosmetics are economical. 30 resondents out of 100 respondents believe that their cosmetics are not economical. 11 respondents out of 100 respondents say that not all the products are economical. 10 respondents out of 100 respondents are not at all sure of economic reliability of their

cosmetics.

7. If you are being asked to choose amongst one of the best product that you use, what would that be?

Table showing the best cosmetic product of the respondents of their brand .

PARTICULARS FREQUENCY PERCENTAGESUNSCREEN LOTION 59 59%HAIR BOUNCERS CREME 15 15%MOISTURIZERS 9 9%

LIP GLOSS 17 17%

chart showing the best cosmetic product of the respondents

sunscreen lotionhair bouncers crèmelip glossmoisturizers


59 respondents out of 100 respondents found sunscreen lotion to be the best product. 15 respondents out of 100 respondents found hair bouncers crème to be the best product. 9 respondents out of 100 respondents found moisturizers to be the best product. 17 respondents out of 100 respondents found lip gloss to be the best product.

8. What services of your favourite company you appreciate the most?

Table showing the most appreciated service provided by their favourite company.

PARTICULARS FREQUENCY PERCENTAGESTEAM BATH 32 32%MANICURE / PEDICURE 14 14%FACIAL/ MASSAGE 44 44%HAIR 20 20%

SERVICES( rebounding etc)

steam bath

Category 2

hair sevicing

facial/ massgae

0 0.5 1 1.5 2 2.5 3 3.5 4 4.5

graph showing the most appreciated services provided by the cosmetic company

Series 1

From the table you infer the following points:

32 respondents out of 100 respondents like steam bath service. 14 respondents out of 100 respondents like manicure/pedicure. 44 respondents out of 100 respondents like facial/ massage. 20 respondents out of 100 respondents like hair services.

9. What motivates you to buy lakme products?

Table showing the reasons which motivates the respondents to buy lakme products

PARTICULARS FREQUENCY PERCENTAGEMEASURABLE RESULTS 2O 33.33%ECONOMICAL 18 30%EASILY AVAILABLE 12 20%

TREND SETTER 1O 16.66%

CHART SHOWING THE REASON WHICH MOTIVATES RESPONDENTS TO BUY LAKME

PRODUCTS

measurable resultseconomicaleasily availabletrend setter

From the following table it can be inferred that:

20 respondents out of total 60 lakme respondents use lakme products for the measurable results.

18 respondents out of 60 lakme respondents use its products as they are economical. 12 respondents out of 60 lakme respondents use its products as they are easily available. 10 respondents out of 60 lakme respondents use its products as they are trend setters.

10 . In which cosmetics of lakme do you invest your money more?

Table showing the lakme cosmetic in which the maximum investment is done by respondents.

PARTICULARS FREQUENCY PERCENTAGESUNSCREEN LOTION 34 56.66%HAIR BOUNCERS CREME 9 15%

MOISTURIZERS 5 8.33%LIP GLOSS 12 20%

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

graph showing that respondents spends maximum in which product

Series 2


34 respondents out of the total 60 lakme respondents spend maximum money in sunscreen lotion.

9 respondents out of the total 60 respondents spend maximum money in hair bouncers crème. 5 respondents out of the total 60 lakme respondents spend maximum money in moisturizers. 12 respondents out of the total 60 respondents spend their maximum money in lip gloss.

11.what is your level of information on Lakme as a brand?

Table showing the level of information of respondents on Lakme as a brand.

PARTICULARS FREQUENCY PARTICULARSEXCELLENT 14 23.33%GOOD 28 46.66%

MODERATE 10 16.66%BAD 8 13.33%

graph showing the level of information of resppondents on lakme as a brand

goodexcellentmoderatebad


14 respondents out of 60 lakme respondents had excellent knowledge about lakme as a brand. 28 respondents out of 60 lakme respondents had good knowledge about lakme as a brand. 10 respondents out of 60 lakme respondents had moderate knowledge about lakme as a brand. 8 respondents out of total 60 respondents had bad knowledge about lakme as a brand.

12. what is the purpose for which you buy lakme products?

Table showing the purpose for which the respondents buy the lakme products

PARTICULARS FREQUENCY PERCENTAGESKIN PROTECTION 17 28.33%LONG AND STRONG 13 21.66%

HAIRGLOW AND ACNE FREE SKIN

10 16.66%

MAKE UP 20 33.33%

chart showing the purpose for which the lakme products are being used

make upskin productslong and strong hairglow and acne free


17 respondents out of total 60 lakme respondents buy lakme skin protection products. 13 respondents out of total 60 respondents buy lakme products for long and strong hair. 10 respondents out of total 60 respondents buy lakme products for glow. 20 respondents out of total 60 respondents buy lakme products for make up.13.Rating the products offered by lakme as:

Table showing the rating of the lakme products by its users.

PARTICULARS FREQUENCY PERCENTAGEEXCELLENT 18 30%

GOOD 28 46.66%MODERATE 14 23.33%POOR 0 0%

123

1: excellent

2: good

3: moderate

From the following table we can infer that;

18 respondents out of total 60 lakme respondents rate lakme products as excellent. 28 respondents out of total 60 respondents rate lakme products as good. 14 respondents out of total 60 lkame respondents rate lakme as moderate. None of the respondents rate lakme products as poor.14.Are you satisfied with the beauty services offered by lakme saloons?

Table showing the satisfaction level of the lakme respondents with respect to the saloons services provided by it.

PARTICULARS FREQUENCY PERCENTAGE

YES 48 80%NO 12 20%

12

1 depicts yes. 2 depicts no.


48 respondents out of 60 respondents are satisfied with the services provided by the saloons of lakme.

12 respondents out of 60 respondents are not satisfied with the services provided by the saloons of lakme

15. Are you satisfied with the products offered by the company?

Table showing the whether the respondents are satisfied with the products of lakme.


YES 53 88.33%NO 7 11.66%

12



53 respondents out of 60 respondents are satisfied with the products of lakme. 7 respondents out of 60 respondents are not satisfied with the products of lakme.

16. Is the site www.lakmeindia.com site useful to you?

Table showing if site www.lakmeindia.com site useful.


http://www.lakmeindia.com/


YES 42 70%NO 18 30%

12

1 depicts yes 2 depicts no.


42 respondents out of 60 respondents found site useful. 18 respondents out 0f 60 respondents did not found site useful.17.Approximately how much do you invest on lakme products monthly?

Table showing that how much the respondents spend in lakme products.

PARTICULARS FREQUENCY PERCENTAGEBelow Rs. 500 40 66.66%

Rs. 500-Rs. 1000 8 13.33%Rs. 100-Rs. 2000 8 13.33%Above Rs. 2000 4 6.66%

12

34

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

Series1

1. depicts money below Rs. 500. ;2. depicts money between Rs. 500-Rs. 1000.;3. depicts money between Rs. 1000- Rs. 2000.;4. depicts money between Rs 2000 and above.


40 respondents out of 60 lakme respondents spend below Rs 500. 8 respondents out of 60 lakme respondents spend between Rs 500-Rs. 1000. 8 respondents out of 60 respondents spend between Rs. 1000- Rs. 2000. 4 respondents out of 60 respondents spend between Rs. 2000 and above.

18.Do you think that lakme is a leader in a cosmetic industry?

Table showing the number of respondents who think that lakme is a leader in cosmetic industry.

PARTICULARS FREQUENCY PERCENTAGEYES 68 68%

NO 12 12%CANT SAY 10 10%MODERATELY 10 10%

1234

1 depicts yes.;2 depicts no.;3 depicts moderately.;4 depicts cant say.


68 respondents out of 100 respondents find lakme to be the leader. 12 respondents out of 100 respondents do not find lakme to be a leader. 10 respondents out of 100 respondents are not sure. 10 respondents moderately think that lakme is a market leader.

19.Would you continue to buy Lakme products even if its price rises by say upto 15%?

Table showing if the respondents will use the lakme product even if the price rises by 15%


YES 39 65%NO 21 35%


39 respondents out of 60 respondents will continue using lakme. 21 respondents out of 60 respondents will stop using lakme if price will rise.

12



39 respondents out of 60 respondents will continue using lakme. 21 respondents out of 60 respondents will stop using lakme if price will rise.

CONCLUSION, FINDINGS AND SUGGESTIONS

FINDINGS

1. Lakme is the clear market leader across all age groups and income levels.

2. Majority of the respondents ie. 60 respondents out of total 100 respondents are using lakme products.

With Loreal in the second number having 20 regular customers of it. 15 respondents rae using Garnier

and only 5 are using Lotus cosmetics. This shows that lakme has more number of women using it.

3. The dissertation shows that maximum number of the respondents are using make up products of their

brand like mascara, eyeliner, foundation, facepowder, blushers etc. next the eopleare investing maximum

in skin care products.

4. 58 respondents trust their brand of cosmetics when it comes to healthy make up. 20 respondents do not

find their cosmetics to be healthy in the sence that the brand uses more of chemicals in its compositions.

5. 35 respondents use their cosmetic products because they are economical in nature, while a major portion

of the bulk buys the products of a brand because they show measurable results.

6. 68 respondents spend below Rs. 500 on their cosmetics. However there are many people ie 14 who spend

Rs. 1000- Rs. 2000 in cosmetics.

7. 49 respondents out of 100 respondents find their cosmetic brand to be economical in nature.

8. 59 respondents out of total of 100 respondents find sunscreen lotion to be the best product of their

cosmetic brand. While 17 out of them find lip gloss to be the best part of its brand.

9. 44 people appreciate the facial and massage services provided by their favourite cosmetic company. 32

out of 100 users find steam bath to be very appreciative.

10. 20 respondents out of 60 users who use only lakme products, use lakme products because they show

measurable results. While 18 out of 60 uses it because lakme is very economical in nature.

11. 34 respondents out of 60 users of lakme products use the sunscreen lotion the maximum times, the next

product being lip gloss.

12. 28 respondents have a very good knowledge about lakme as a brand.

13. 20 respondents out of 60 respondents use lakme’s makeup products, while 17 respondents use lakme

products of skin protection.

14. 28 respondents found lakme to be good, 18 found it to be an excellent product, 14 respondents ,

moderately like the products of lakme.

15. 48 respondents are satisfied with the services provided by LAKME.

16. 53 respondents are satisfied with the products of lakme.

SUGGESTIONS

1. Affordable cosmetic products must be launched, drawing less than 1000 rupees per month. This will

attract mores of youg women towards it and will further increase the market share of the company.

2. Lakme should also concenterate on the cosmetic products for the mails. As today even boys are

becoming more concerned of the way they are looking. More and more boys are turning out to be metro

sexual. This category will rise in the future and lakme must concentrate on catching them so that the

company can generate more sales from them.

3. Lakme must not limit itself to serve only the women, as it will be ignoring a large chunk of looks

conscious and metro sexual boys.

4. It would be wise for the company to target young people in the above category and grow along with them

as they and the nation prospers.

5. Many respondents in their answer as to why they did not take lakme product said that lakme does not

provide a makeup or sunscreen lotion which is to be put only once as it is not moisture resistant. So

lakme should work more in creating a water resistant sunscreen lotion which could stay all through the

hard sweaty days.

6. More of the saloons should be created in order to provide easy accessibility to the consumers of the

services and products provided by lakme.

7. Lakme can start contests for free makeover of women , as it was being started by dove, sunsilk and

ponds in collaboration- be beautiful.

8. Website Changes:

a. Lakme must advertise more about its website in the mass media so people can gain firsthand

knowledge about its products at their convenience in a more detailed manner.

b. The website is good but instead of having a glossary as a separate entity, link words which are

difficult to understand for a first timer (even if it is as simple as ‘spf’) must be marked up

(underlined) in the text, which upon clicking must open out to a window giving details.

c. A page must be devoted on why cosmetic products of lakme must be taken plus real life stories of

how people with use of lakme cosmetics improved their looks.

d. Links to other sites extolling the virtues of cosmetics must be given.

e. A page devoted to Lakme’s beginning as a cosmetic industry must be included in the website to

assure potential customers that this is one company that will stick around for a long time to come.

Exciting contests can be launched for those who visit the website.

9. lakme has tied up with HUL – hence it must advertise in these websites also. It can also advertise in

other beauty related sections of websites like vogue.com and feminaindia.com. Youth sites like

mtstylecheckvindia.com, facebook.com, orkut.com, twitter.com etc can also be targeted.

10. According to Abraham Maslow’s hierarchy of needs the 2nd step to self actualization is the fulfillment of

the safety needs. Though people feel the need for being presentable and have good looks, a large number

live in an ivory tower and they procrastinate to take decisions regarding this aspect. It is this dormant

aspect that Lakme should awaken in people and bring about restlessness and unfulfilled feeling regarding

their and their family’s overall physical grooming. The next choice then would be cosmetics. This could

be brought about by an innovative campaign slogan saying, “The decision is now”.

11. Lakme must not target people only when they start earning but much before that. To gain the ‘early bird ‘

advantage they must organize sessions in schools and colleges giving explanations on how the medicure,

pedicure, facials, massage etc can in general help in their overall development. . It can also bring about a

stronger brand commitment in this manner.

12. Leverage information technology to service large numbers of customers efficiently and bring down

overheads. Technology can complement or supplement distribution channels cost-effectively. It can also

help improve customer service levels considerably.

13. Use data warehousing, management and mining to gauge the profitability and potential of various

customer and product segments and ensure effective cross selling.

14. Understanding the customer better will allow cosmetic companies to design appropriate products,

determine pricing correctly and increase profitability.

15. Ensure high levels of training and development not just for staff but for distribution organizations.

Existing organizations will have to train staff for better service and flexibility, while all companies will

have to train employees to cope with new products and an intensive use of information technology. The

importance of alliances and tie-ups means that companies will have to integrate related but separate

providers into their systems to ensure seamless delivery.

16. Build strong relationships with intermediaries such as agents. The agency force is an important customer

interface and companies must partner with this group to reach customers and serve them effectively.

CONCLUSION:

The different information or benefits derived from the in-depth study of the above mentioned information

sources are as follows:

1. consumer behavior and perception study; it helped to know that what actually is consumer beahviour and

what are the factors that affect the buying behavior of consumers. It also helped us to know that how can

perception have a positive and a negative impact on the consumer beahviour.

2. cosmetic industry in india- this section helped in knowing tat cosmetic is not a new concept in india.

People have been grooming themselves physically. The only difference is the addition of chemicals and

technology to our personal grooming.

3. Competition existing in the present insurance market; there are many other companies posing tough

competition to lakme ie Revlon , garnier, loreal, lotus etc.

4. All the marketing information sources has given a significant contribution to the detailed theoretical

perspective for the research i.e. about consumer behavior an perception.

5. World Wide Web also worked as a highly important information source as it provides updated

information for the research relating to various areas.

ANNEXURE

LISTOF TABLES

TABLE NO

TITLE PAGE NO

1. Table showing the company’s cosmetic that the respondents are using.

44

2. Table showing that which project is being used the most by the respondents.

45

3. Table showing that if their products provide them with an option of long lasting and healthy makeup.

46

4. Table showing the reasons which motivates the respondents to buy the product of that company.

47

5. Table showing that approximately how much do the respondents spend in cosmetics.

48

6. Table showing the number ofrespondents who find their cosmetics economic.

49

7. Table showing that which product was chosen as the best product by them.

50

8. Table showing that which services provided by their company is most appreciated.

51

9. Table showing that which is most motivating factor for the buying of products of lakme.

52

10. Table showing that in which cosmetic of lakme do they spend most. 5311. Table showing that what is the level of information of respondents

on lakme as a product.54

12. Table showing that what is the most common purpose for which the respondents buy the lakme products.

55

13 Table showing the ratings given by the respondents to the lakme products.

56

14. Table showing that if the respondents are satisfied with the beauty services provided by the lakme.

57

15. Table showing that if the respondents are satisfied with the beauty products provided by the lakme.

58

16 Table showing the level of usefulness of the site of lakme 5917. Table showing that how much would the respondents would invest

on lakme60

18. Table showing if lakme is the leader in cosmetic industry 6119. Table showing that how many respondents will buy the products of

lakme even if the price of it will rise.62

LIST OF GRAPHS

TABLE NO

TITLE PAGE NO

1. Graph showing the company’s cosmetic that the respondents are using.

44

2. Graph showing that which project is being used the most by the respondents.

45

3. Graph showing that if their products provide them with an option of long lasting and healthy makeup.

46

4. Graph showing the reasons which motivates the respondents to buy the product of that company.

47

5. Graph showing that approximately how much do the respondents spend in cosmetics.

48

6. Graph showing the number ofrespondents who find their cosmetics economic.

49

7. Graph showing that which product was chosen as the best product by them.

50

8. Graph showing that which services provided by their company is most appreciated.

51

9. Graph showing that which is most motivating factor for the buying of products of lakme.

52

10. Graph showing that in which cosmetic of lakme do they spend most.

53

11. Graph showing that what is the level of information of respondents on lakme as a product.

54

12. Graph showing that what is the most common purpose for which the respondents buy the lakme products.

55

13 Graph showing the ratings given by the respondents to the lakme products.

56

14. Graph showing that if the respondents are satisfied with the beauty services provided by the lakme.

57

15. Graph showing that if the respondents are satisfied with the beauty products provided by the lakme.

58

16 Graph showing the level of usefulness of the site of lakme 5917. Graph showing that how much would the respondents would invest

on lakme60

18. Graph showing if lakme is the leader in cosmetic industry 6119. Graph showing that how many respondents will buy the products of

lakme even if the price of it will rise62

BIBLIOGRAPHY: LIST OF JOURANALS AND MAGZINES

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cultural work-related values: Implications for consumer behaviour,” European Advances in Consumer Research, 1, 70-76.

Mooij, D. (2004) Consumer Behaviour and Culture: Consequences for Global Marketing and Advertising, Thousand Oaks, CA: Sage Publications.

Palmer, A. (2000) Principle of Marketing, Oxford: Oxford University press. Rolando, Diaz-Loving, (1998) “Contribution of Mexican ethno psychology to the

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Schiffman, L. G and Kanuk, L. Leslie. (1994) Consumer behaviour, NJ: Prentice Hall. Schutte, H. and Ciarlante, D. (1998) Consumer Behaviour in Asia, Macmillan Press

Limited. Solomon, M. R. (1996) Consumer Behaviour, Englewood Cliffs, NJ: Prentice Hall. Usunier, J. C. (2000) Marketing across cultures, London: Prentice Hall. Williams D. Jerome, Sang-Lin Han and William J. Qualls, (1998) “A Conceptual Model

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Websites used1. www.invogue.com

2. www.lakmeindia.com 3. www.google.com 4. www.hindustanunilever.com 5. www.feminaindia.com

http://www.feminaindia.com/

http://www.hindustanunilever.com/

http://www.google.com/


http://www.invogue.com/

Consumer Beahviour and Perception of Women Towards Lakme Final

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