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Consumer Buying Behaviour Regarding Cosmetic in India




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Certified that this dissertation is based on an original project study conducted by this group under my guidance. They have attended the required guidance sessions held. This project report has not formed a basis for the award of any other Degree / Diploma of any University or Institution.



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We hereby declare that the Project Report conducted on Consumer buying behaviour regarding Cosmetic in India under the guidance of Asst.Prof Jayashree Kowtal submitted in partial fulfillment of the requirements for the degree of POST GRADUATE DIPLOMA IN MANAGEMENT TO M.S.RAMAIAH INSTITUTE OF MANAGEMENT. It is our original work and the same has not been submitted for the award of any other Degree/Diploma/Fellowship or other similar titles or prizes. Place: Bangalore Subhra Sutradhar (121245) Piyush Ray Choudhury(121231) R. Manoja (121235) Sandeep Kumar(121240) K. Yaswanth Reddy(121222)

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We extend our special gratitude to our beloved Dean Shri Swaminathan Murthy & Academic Head Shri. V. Narayanan and Program Head Asst. Prof. Jayashree Kowtal for inspiring us to take up this project. We wish to acknowledge our sincere gratitude and indebtedness to our project guide Asst. Prof. Jayashree Kowtal of M.S. RAMAIAH INSTITUTE OF MANAGEMENT Bangalore for her valuable guidance and constructive suggestions in the preparation of project report.


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Consumer behavior is the key factor affecting the today's marketing environment. After the liberalization and the globalization there has been a sea change in the Indian market scenario. The MNC's have entered the fray, which forced the Indian giants to change their strategies. There is a cutthroat competition and in order to survive and to have an edge over competitors, marketers have realized the value of consumers. Consumers orientation is the keyword in present times.

The purpose of this project is to provide the students with the practical exposure of the market in today's changing scenario. It helps in the development of practical skills and analytical thinking process. It provides with basic skills required to perform the survey; and statistical tools required analyzing the data. Also it makes more aware about the perceptions and tastes of consumers. Thus it helps in molding the students according to the requirements of market. Consumers buying preferences tastes choices have changed and they have become more conscious. Change in consumers perception has lead to a situation of dissatisfaction among consumers. There has been a lot of change in the rural consumers. Their living standard has got uplifted and they are ready to spend more to have qualified products.

The present study is based on the behaviour of the consumers in urban area while purchasing cosmetics. It gives the information about the attitude, perception and effect of social, cultural, economic, and demographic and psychographics factors on purchase of the consumers

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Section A: Background
Beauty is only skin deep- true, but not really relevant in todays world. The origin of the phrase dates back to 1613, when it was first found in a work by Sir Thomas Overbury. Interestingly, along with the evolution of this mortal world, the meaning and the importance of this saying has faded by the hour and by the minute. Even if beauty is superficial, physical beauty that is, people do not care about it as long as it makes them happy, and boosts that thing called self confidence of theirs. The reason why I have double quoted the word self confidence is that, if it takes looks, or more specifically, good looks to make you feel and be confident, then I would say that has no significance. People go through all the pains of searching for the right products for their skin, and hair, and anything that would accentuate their looks. Another method which has been in the limelight for decades now, is cosmetic surgery. For many, cosmetic surgery isnt the solution, not even an option may be. Here steps in the subject of our researchCosmetics. Surprisingly, use of cosmetic products is not new to the world. It dates back to the early modern civilizations. Some 6 thousand years ago, human made cosmetics appeared as the way to enhance the appearance and odor of the human body. The aura of exclusivity around cosmetics is the result of the complexity in manufacturing process, the amount at which they are priced, and their connection to the elite class of the society. Because it is in human nature to always strive to perfection and new ways to express ourselves, cosmetic played a really big role in our advancements from ancient civilization to the modern way of life. Cosmetics helped us change the way we look, fixed out bodies in time of sickness and enabled us to express our religion and beliefs. For the long periods of time, cosmetic products were frowned upon in Western history, and even actively forbidden to be used by many organizations. This dark period of cosmetic use finally ended during the end of the 19th and early 20th century, when great advancements in manufacturing, new entertainment industries and faster changes enabled the rise of famous cosmetic brands and their widespread use. Cosmetics have been used for as long as there have been people to use them. Face painting is mentioned in the Old Testament (Ezekiel 23:40) and eye shadow was used in Egyptian burials dating back to 10,000 BC (Llewelyn) The word "cosmetae" was first used to describe Roman

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slaves whose function was to bathe men and women in perfume. The first archeological evidence of cosmetics comes from the excavated tombs of Ancient Egypt pharaohs, but historians are convinced that first natural made cosmetics were used by our prehistoric ancestors much before rise of modern civilizations. Cosmetics were an inherent part of Egyptian hygiene and health. Oils and creams were used for protection against the hot Egyptian sun and dry winds. Myrrh, thyme, marjoram, chamomile, lavender, lily, peppermint, rosemary, cedar, rose, aloe, olive oil, sesame oil and almond oil provided the basic ingredients of most perfumes that were used in religious ritual and embalming the dead (Cohen) For lips, cheeks and nails, a clay called red ochre was ground and mixed with water. As the centuries and millennia went, Egypt chemist found a way to simplify the manufacturing process of cosmetics, but that did not manage to remove the aura of their exclusivity. The ancient Egyptians took great pride in their appearance and cleanliness. Most Egyptians bathed daily in the river or out of a water basin at home. Wealthy homes had a bathroom where servants would pour jugs of water over their master (equivalent to a modern day shower). 6 thousand year old relics from Egypt tell us that their royalty and high class enjoyed several cosmetic products, such as face creams, perfumed oils, eyeliners, hair paints, castor oil, lipsticks, and lip gloss. One of the most important causes for that were their badly formed recipes, which often included poisonous ingredients that could cause serious illnesses. However, even with that, cosmetics remained important part of the Egyptian culture and especially their burial rituals. Among all cosmetic products, cedar oil was considered to be the most sacred one, because it was used in the process of mummification. That process used 7 types of oils, which were also the basis for the Egyptian ritual magic and medicinal remedies for various illnesses. Even though Egyptian priest guarded their cosmetic recipes from the neighboring primitive civilizations, Mediterranean trade of the 1st millennia BC soon brought Egyptian cosmetic products to the shores of the newly formed Greek and Roman civilizations. There, high fashion was important and many wealthy people wore wigs, white face powder, and women used red lipsticks and red oils to make their palms more younger. In Rome, woman was not considered beautiful if she did not use face cosmetics. Lipsticks, skin creams made from beeswax, olive oils and rosewater, powders, hair colors and many other beauty treatments were widely used in the

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period of 100 BC and beyond. They even had special type of female slaves whose only task was to help their masters to be more beautiful. Their names lives with us even today, Cosmetae. In Greece, precious oils, perfumes, cosmetic powders, eye shadows, skin glosses, paints, beauty unguents, and hair dyes were in universal use. Export and sale of these items formed an important part of trade around the Mediterranean. During the 8th and 7th centuries BC, Corinthian, Rhodian and East Greek traders dominated markets in perfume flasks and cosmetic containers. Attic products stole the market with toilet oil dispensed in lekythoi flasks. Bulk storage containers for scented oils and perfumes were called a pelike. Pelikes were initially designed to withstand the constant handling and rigors of sea transportation while protecting the contents and maximizing cargo space. By about 300 BC, myrrh and frankincense from Yemen reached the Mediterranean by way of Persian traders. The trade routes swelled as the demand for roses, sweet flag, orris root, narcissus, saffron, mastic, oak moss, cinnamon, cardamom, pepper, nutmeg, ginger, costus, spikenard, aloewood, grasses and gum resins increased. Distillation of essential oils and the use of aromatics progressed in the Far East as well. Like the Christian Gnostics, Chinese Taoists believed that extraction of a plant's fragrance represented the liberation of its soul. Like the Greeks, the Chinese used one word to represent perfume, incense and fragrance. That word was heang.When Christianity rose, Christian woman started to celebrate their religion with jewelry and cosmetics. Even the Old Testament mentioned two kings who painted their eyelids sometimes around 840BC. However, with the fall of the Roman Empire, Europe entered into dark ages where harsh living conditions, poverty, illnesses and constant wars prevented the spreading of expensive and extravagant fashion trends. This meant that almost all traces of cosmetic product disappeared from the European culture, not only because of its scarcity but also because Christian church actively prevented its spreading. Isolation of Europe finally came to the end in the 12th and 13th century, when warriors returning from the crusades brought with them exotic cosmetic items from the Middle East where they never went out of fashion. This new influx of riches and knowledge from the east soon kickstarted European renaissance, which transformed the Europe into advanced civilization. Fortune started moving from the wealthy down to the middle classes, industry was rising, sciences and arts received much needed funding, and trade routes started spreading new fashions much more quickly than before.

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Even with all the advances of Renaissance, cosmetics received little attention from general population. Some used hair coloring, painted eggs on their faces to remove wrinkles and used similar old age removal techniques, but widespread use of face and hand cosmetics never took hold outside aristocracy. The only really popular period of time when cosmetics was well received was during and shortly after the reign of English Queen Elizabeth I (1558 - 1603). Her unique fashion style of stark white faces and brightly colored lips captured the attention of royalty and aristocrats across England and France, but that lasted only for a short time. Soon after that cosmetics (especially highly visible facial and nail paints) became common among low class women, such as prostitutes. Nothing changed much between late 17th century and mid-19th century. The Greeks invaded Egypt aware of the Egyptian mystification of oils but were interested mainly in the medical knowledge rather than the entire Egyptian spiritual epistemology. With 3,000 years worth of perfumery development under their belts, Egyptian priests were unwilling to divulge the spiritual intrigue of Egyptian oils. Under pressure from Alexander the Great, the priests released disinformation and half-truths to prevent the knowledge from falling into the hands of the inept. When Alexander the Great entered the tent of defeated King Darius after the battle of Issos, Alexander threw out the king's box of priceless ointments and perfumes. Ironically, after Alexander traveled extensively in Asia, he became so addicted to aromatics that he burned an Arabian incense by his throne constantly. Cosmetic products were uncommon among majority of European civilization, in some cases receiving status of banned and absolutely inappropriate merchandise. The only exceptions were medical cosmetic remedies that were used by everyone but the poorest in 18th century. The dawn of cosmetic use finally arrived in the second part of 19th century when industrial revolution and great advances in chemistry (chemical fragrances) enabled much easier and varied production of various cosmetic products. With much lower price and chemical ingredients that were much less dangerous for health, cosmetics started gaining serious foothold. Some of the most famous cosmetic products from that time were rogue red lipstick (it symbolized health and wealth), zinc facial powder (much safer than previous lead and copper based powders) and eye shadow and eye sparklers. The turning point in the western fashion came in 1920s when mass marketed cosmetic products finally became financially viable. And where profit can be found, there is the will to market and

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sell it. Photography, cult of film actors and big marketing campaigns soon brought the fall of traditional Victorian fashion, enabling women of all ages to start wearing cosmetic products in the public. Early decades of cosmetics popularity in the west brought us many inventive products, such as Lip Gloss by Max Factor, synthetic hair dye and sunscreen by L'Oral, suntan and red nail polish by Coco Chanel, and others. After the World War II and its period of heavy material rationing, cosmetic industry experienced its second renaissance. Countless new fashion trends were adopted, mostly being popularized by various movie actresses and musicians. Today, cosmetics industry is a multi-billion dollar business that stretches across entire world, always finding new ways and fashion trends that sustains and ensures its growth. Change finally happened after European soldiers returned from the Crusades in the Middle East, bringing home new exotic products and knowledge. Among those products were many types of cosmetics, which were in first adopted only by nobility and high-class citizens. After Renaissance managed to spread across entire Europe, cosmetics found their foothold, but were still not publicly accepted, except during few fashion swings (such as during the reign of Queen Elizabeth I (1559-1603) in England). According to the US Food and Drug Administration (FDA), the law defines cosmetics as "articles intended to be rubbed, poured, sprinkled, or sprayed on, introduced into, or otherwise applied to the human body... for cleansing, beautifying, promoting attractiveness, or altering the appearance." This includes skin moisturizers, perfumes, lipsticks, fingernail polishes, eye and facial makeup, shampoos, permanent waves, hair colors, toothpastes, and deodorants, as well as any component of a cosmetic product. It does not include products used solely as soaps. Cosmetics are different from drugs, which are defined as "articles intended for use in the diagnosis, cure, mitigation, treatment, or prevention of disease" and "articles (other than food) intended to affect the structure or any function of the body of man or other animals."

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Section B: Literature Review

Literature review explain previous studies on various factors like price, quality, products information, motivation, culture, attitude, brand image, consumer resources, group and family and purchasing advisor that might influence the purchasing decision of females for cosmetics and how their buying behavior affected by these factor.

1. Price
Price is a thing that is specified to buy and acquire some manufactured goods. The buying behavior of females for cosmetics is usually affected by the price. Solomon(2007) has said in respect of customers that they usually view a firm attitudes and opinions between price and value of a product. A lot of consumers consider that products have a high price are of better value, particularly in that situation when they have fewer or no knowledge about the quality of product Evan etal (1996).

According to Shahzad khan (2011) quality means that how excellent and worse the things are or highly valued. Quality is the unending procedure of making and keeping association by preparing and satisfying the affirmed and required needs. Quality is the achievement of the customers needs especially it goes beyond the customers hopes. According to Russells and Taylors (2006), words quality of a product makes the product for utilization and it fulfills the required needs.

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3. Brand image
The brand image of a specific brand is the picture or notion that people are having in their mind. It is a expression, sign or any other characteristic that is acknowledged by promotion of goods. In the view of Loudon and Della Bitta (1988), brand image is the whole thought or feeling in the customers intellect which is made up from different resources. Because of their high quality in their mind they choose familiar brand. The purchase risks become lessen by the brand image.

4.Product information
Product information is specially that knowledge which can be achieved or obtained from the products or different resources for which the customer is looking. Product information is a fundamental thing without which a customer is puzzled and having unsuccessfully understanding in respect of their buying behavior. In words of Chao and Rajandran (1993), for creating their purchasing judgments customer needs or watch over to locate further information. In the eyes of Borden (1964), information is like interaction procedures which is express by the company or the product & compel the customer to enhance their buying decision.

5. Motivation
According to study of Shahzad Khan (2011) the thing which stimulates you to do something is called motivation. It is also an inner & outer aspect that creates longing, needs & power in the people to do something actively in achieving their goals. In the theory of Sigmund Freud i.e. human motivation, people are generally uninformed about the actual mental or emotional forces which make their attitude. He think that consumers judgment making procedure is influenced by the part of their brain, which is called inner drive, but the consumers are not conscious of it & this fulfill the requirements if consumers.

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6. Attitude
Attitude is the conduct, nature, temperament, thought & way of behaving. It can be positive or negative & perform a very essential function in purchasing a product. Noel (2009) defined attitude that is a powerful & long term assessment for which the customers are having well built way of thinking & it can be an individual, entity, announcement or a matter. In words of Kotler & Keller (2009, 2010), attitude is a permanent & satisfactory emotion, deed or assessment propensity towards a plan or thing. They are also in a view that attitude is a tremendously hard thing to alter due to the existence if sensitive nature

7. Culture
Culture differentiates norms, customs, and way of thinking, values, traditions & rituals of one society from another society. It also develops association in a social order. Solomon, Bamossy, Askegaard & Hoog (2006) defined culture as a collective recall of the society. It is the mind set & thoughts of a community having a combination of civilization i.e. rituals, faith that accepted within a society & uptill now continued in the present. In Kotler & Keller (2009), views culture & subculture is the way of living of a people in a society, their thoughts & notions which are dissimilar from the feelings, emotions & the way of life from other society. They have measured it a specific category in consumers behavior.

8. Group and Family

Group and family is an important societal group in a culture, naturally having one or two people combine in a residence and they contribute principles, aim, and have long standing agreement to one another. An individual cannot be considering as one person; he/she is in link to others. A woman plays a very significant role in buying things exactly and correctly.

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In view of Kotler and Keller (2009) the above variable has a nearness and well built relationship with an individual manner and mind-set while in the eyes of Noel (2009) on the customer conduct family has a direct and most important affect.

9. Personality
Personality is defined as an entity variation in individuality, way of thoughts or it is an amalgamation of traits that make a person unique, attractive and well-linked. It is also one of the most aspects that affect the behavior of customers. Kotler and Keller (2009) defined personality is a group of mental traits which lead to a specific level having similar amount of achievement and behavior to ecological stimulus. In words of Solomon (2007) customer personality is very essential in buying behavior, because they often make their purchasing judgments without thinking.

10. Consumer Resources

Smallwood, Denis E. and John conlisk (1979) a resource is a foundation from which a business achieves success. Generally resources are other material goods that are altered to make profit. Human beings requirements are also accomplished by resources. Every person has 3 resources i.e. Time, money and information in their purchasing behavior. The purchaser scarifies time, money and seeks information in this respect. In view of Fishchhoff and Philliphs (1982) that the purchaser thoughts, feelings, qualities and resources are totally dissimilar from the true and definite resources and characteristics. So this wrong thinking creates not a good purchasing decision.

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11. Purchasing Advisor

Purchasing advisor has a powerful control on a purchaser. Large organizations particularly appoint the purchasing advisor for their best and successful results. They suggest recommendation to the customers through different ways in order to worth a product .In the words of Elsey Sukato, (2009) purchasing advisor has the supremacy to compel or persuade the customers to buy a specific product.

International Review of Business and Social Sciences Vol. 1, No. 9, Aug 2012 [68-76 ISSN: 2226-4124]

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Design of the Study

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A study on consumer behavior regarding the purchase of cosmetics

Aim of the study: To study the consumer behavior regarding the purchase of cosmetics

Statement of problem: With the increasing revenue from wellness industry there has been a
steep rise in new players entering into the market. The behaviour of the consumer is not easy to understand and is actually the core of this work. The focus will be on the relationship that consumer have with self-appearance and cosmetics or beauty care product. is it rather better to define different targets with different needs and wants? And therefore different marketing strategies? To answer those questions, this study will focus on the customer behavior. This has tempted us to carry out a study on consumer behavior regarding the purchase of cosmetics

1) Finding major factors that influence the purchase decision of consumers to purchase cosmetics. 2) To find out the variety of cosmetics, the women and students prefer most. 3) To find out the brands, which are popular for the particular type of product. 4) To know the expenditure and the frequency of using the cosmetics. 5) To determining the sources from where the women get the information about cosmetics. 6) To know consumer perception towards the cosmetics ads. 7) To find out whether they are influenced and inspired by the ads

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Research Methodology: Primary:- Questionnaire: A quantitative research method based on statistic datas gathering
via questionnaires or surveys, in order to know the general public tendency. A qualitative research is another research method, which evaluates information about opinions and values.

Secondary:-Secondary data were used in the first and second part, concerning the global
market of cosmetics, and also when developing the theory about self-concept.

Sample size - 100

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Problem Formulation:
It has normally observed that most of the marketers are spectacle about consumers in India. Each company tries to provide more information about their products for consumers. Very few companies are really providing information according to the requirement of Consumers. They look for bargaining and lack of proper advertisement about products.Thus being a MBA student I felt, I should study the effectiveness of information of the product of cosmetic consumers in depth. Another side of coin is that cosmetic market in India is growing rapidly and enormous untapped potential lies there. Thus also motivated me for selecting my topic of study as "Consumer buying behaviour regarding Cosmetic in India".

Research Methodology:
Market research methodology is as old as the marketing is without which it is almost impossible to reach at any tangible decision. Although various methods are adopted to undertake this activity but the goal is almost same i.e. to reach on a final decision or solution of the problem.There is a very famous quote "if you are confident of doing something, half of the work is done". And confidence comes when you have a proper framework for the particular work. Hence to carry out any work of necessary to chalk out a framework.To carry out the research project, we first define the research methodology that is to be used for the research.Research Methodology is the way of systematically solving the research problem. It may be understood as a science of studying how research is done scientifically. In it we study the various steps that are generally adopted duringthe course of research along with the logic behind them. It is necessary for their search to know not only the research methods but also the methodology.The purpose of the research is to discover the answers to the questions through theapplication of scientific

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procedures. Though each research study has its own scientific objectives, we may think of research objective as falling in to a number of following broad groupings: 1) To gain familiarity with a phenomenon or to achieve new insights into it. 2) To portray accurately the characteristics of particular individual situation. 3) To determine the frequency with which something occurs or with which it associates with something else.

Survey Planning:
Planning is the most essential part for a successful survey. A right approach has to be decided before heading forward keeping in mind the objective. Due consideration has to be given at this stage towards: 1) Purpose of the survey 2) Scope of the survey 3) Units of the data collection 4) Sources of data 5) Techniques of data collection 6) Degree of accuracy desired 7) Miscellaneous consideration

Sample Size Consumer (100)

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Survey Methodology (a) Collection of Data:

This is the first step of the process. It forms the foundation for the whole of statistical analysis. Faulty data can lead to unreliable conclusions so most care isrequired while collecting the data. Nature of data collection: Primary Sources of data : Internet and Magazines Secondary sources of data: Internet and Magazines Instrumental Survey: Questionnaire Types of Questions : Close Ended/Open Ended

b)Organizing the date:

Collected data are meaningless unless presented in a proper manner to take them useful in decision making. The data obtained is edited, classified and put in as tabulated form to make it understandable.

After collecting and analyzing the data, it is ready for presentation. There are different modes of presentation including charts, diagrams, and graphs etc. the main purpose of presentation is to put the collected data into an easy readable form. In the present project report data has been graphically presented by pie diagrams.

d)Analysis of Data:
Having gathered the data, the researcher has to proceed towards drawing conclusion by logical inference. At this stage, the data is in a tabulated form and requires to be interpreted. It basically

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involves bringing the raw data into measured data, summarizing the data, applying analytical methods, to manipulate the data so that their interrelations and quantitative meaning become evident. Tools of Analysis: percentage and bar diagram.

Interpretation means to bring out the meaning of data or convert into information. The climax of the research process is approached as one prepares to draw conclusion for the data analyzed. The whole investigation culminates reaches in drawing inference that leads to conclusion. This phase calls for a high degree of interpretative skill, both quantitative and logical.

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Profile of Cosmetics Industry

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Use of cosmetics is not latest trend, it has its roots deep within the annals of history. The word cosmetic has been given this modern name lately. Through regular and formal use of cosmetics has gained momentum now, it has been in some form or other since a long time

To cite an example of the long usage of cosmetic, the cosmetics depict had found its origin in China in the 4th century BC. Indian too has not remained far behind in the development and frequent usage of cosmetics. Household utility like haldi, chandan, basan uptan have been used for centuries to preserve the natural beauty of skin. The reason for their usage was adequate availability of pure material, apt knowledge of natural formulation and virtually zeros effects. The cosmetics industry, which started glowing in the early 1990s, is expanding exponentially. With more women and men becoming conscious of their and willing to spend on their grooming, this industry has been growing at 20-25 percent the last few years. No wonder then that the shelves are stocked with a plethora of products and brands, targeted at various segments, catering to the various needs of customers. The enormous growth in this segment has not only. attracted many MNCs but also provided space for many Indian companies to further expand their product range.

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An ORG-Marg study reveals that while most FMCG products were affected by the general slowdown, this segment witnessed relatively good growth in volume and value 2001. Not only have more people started using cosmetics, they are also willing to pay more to look and feel good. The penetration rate is higher in the skin-care segment compared to lipsticks. While volume growth has remained low,at 3 percent, in the case of lipsticks, much of the value growth has come from price rises. This not only means that consumers are willing to spend the extra bit to look and feel good, but also indicates the constant up gradation from mass to premium products. Though mass products still constitute a major portion of the market, a certain segment is obviously ready to upgrade to the next category as d i s p o s a b le i n c o me s r i s e . I n c r e a s e d me d ia e x p o s u r e, t h e w i l l i n g n e s s t o s p e n d more on personal care, consciousness about looks, and advertisements and promotions targeting various consumer segments are some reasons for these trends in consumption and penetration. The growth trends definitely send posit ive signals about the industry prospects. With numerous players fight ing for market share, is the industry really big enough and the growth high to accommodate all the players? What makes a player tick and create a niche for itself in the market? These questions need to be pondered upon before jumping to conclusions about the industry's prospects. Though most players see huge opportunity in this industry, what would actually work wonders for the players is strong brand promotion, good distribution network, constant innovation and quality improvement, the ability to provide a variety of products and introduce affordable products without compromising on quality. Cosmetics are still seen as elitist products and may be the last thing on an average Indian consumer's mind. Though the low penetration levels for most cosmetic products suggest much potential, the market for cosmetic products may remain a niche market, accessed by a small proportion of the consumers. Despite the tall claims, the actual growth prospects would be limited to this

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extent. From the investment perspective, though many big listed companies have a presence in the various sub-segments of the industry, HLL is the only listed company that has a visible presence across all segments. Being a diversified large company, the turnover from this segment may be too small for HLL to affect investment decisions. As to the recent entrants such as Dabur and Dr. Morepen, it may be a while before their financials reflect the dynamics of this industry. The other listed players are Emami and J.L. Morison (India). Despite their good financial track records, investing in these stocks may be highly risky for a retail investor as low traded volumes and equity base characterize the Stocks.

The cosmet ic segment primarily comprises of co lour cosmet ics (Face, eye, lip and nail care products), perfumes, talcum powder and deodorants. All these are very small segments. Talcum powder is the most popular cosmet ic product in India. This market is estimated at Rs.3.5 bn and is yet growing at 10-12% in pa. Pond's dominates the talcum market with a 70% share following by Johnson & Johnson, which has a 15% market share. Attar and alcoholic perfumes each account for 50% of the fragrance market estimated at Rs. 3 bn. In the alcoholic perfumes market, 1/3rd represented by an unorganized, with the balance largely imported. The June 98 budget halved duties to 50R Lakme has a minor presence in the segment. Perception of damage to skin on account of chemical ingredients restricts usage of face care products. The nail polish market is the largest at Rs.25-30%.Deodorants have a very negligible presence in the Indian market an estimated of Rs. 0.3 bn. Worldwide, deodorants is the largest market followed by skin care, shampoos and toothpaste. HLL has launched a couple of products in this segment.

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T h e I n d ia n ma r k e t c a n b e s e g me n t e d in t er ms o f p r o d u ct c at e g o r y a n d p r ic e . Again oral care, hair care shampoos & oils, skin care, soaps and distribution network may divide the product categories.

The oral care market can be segregated into toothpaste (60%), toothpowder (23%) and toothbrushes (17%). While 60% of toothpaste is so ld on the family platform, around 35% is sold on cosmetic propositions. On the other hand, while toothpowder accounts for 52% of the market, red toothpowder accounts for 40% and black toothpowder accounts 8%. The penetration level of toothpaste/powder in urban areas 3 X that in the rural areas. Traditional materials such as neem and tobacoo are popular for cleaning in the rural areas, Frequency of usage for toothpaste is only 1.5 times among other consumers, compared with 2 times in the developed world. Given the low per capita consumption and penetration rates, toothpaste demand is mainly being driven by the overall market growth of 8-10.The rural segment is also tooth powder growth.

The hair oil market is huge, valued at Rs.6 bn. Due to the varied consumption habits of consumers across the country, where coconut oil and edible oil are interchange used, the size of the market is likely to be higher than estimated. More importantly, the market is growing at an impressive 6-7% in volume terms despite the high penetration level. Usage of hair oil is a typical Indian habit with 50% of the population out of which some perceive that massaging the head with hair oil has a cooling impact. The penetration of hair oil is fairly high at around 87% and evenly distributed among the urban and rural areas.

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HAIR CARE SHAMPOOS The shampoo market in India is valued at Rs.4.5 bn with the penetration level at 13% only. The market is expected to increase due to lower duties and aggressive marketing by players Shampoo is also available in a sachet, which is affordable and makes up to 40% of the total shampoo sale.The Indian shampoo market is characterized by a twin benefit platform- cosmetic and antidandruff. It is basically an upper middle class product, as more than50% of the consumers use ordinary toilet soap for washing hair.While the awareness level is high, the penetration level is very low even in the metros, which is only 30%. Urban markets account for 80% of the total shampoo market; the penetration level is rapidly increasing due to decline in excise duty, which was 120% in 1993 to 30% currently.

The skin care market is at a very nascent stage with basic requirements of the consumers being protecting the skin from cold and dryness in winter, and improving fairness of the skin. Most of the product categories are niche segments.

While the awareness rate is high in both urban areas accounting for 60R and rural areas accounting for 30% the penetration level is low for both. This is because of apprehensions that usage of skin care products may benefit in the long run due to the chemical contents. Many households prefer to use traditional and natural home made products.Since the market is at a very nascent stage with very low penetration levels, the growth rates are expected to be higher at 24-255 over the next five years. New players such as Avon and Oriflame have entered the market with the natural ingredient benefit platform, which could further spur growth.

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The product categories can be classified into three segments; premium (Lux, Dove), popular (Nirma, Cinthol), and economy (Nirma Bath, Lifebuoy). The price differential between the premium and economy segments is about 2X. The popular and economy segments account for about 4/5ths of the entire market for soaps. Penetration of toilet soaps is high at 88.6%. However per capita consumption levels remain low India's per capita consumption of soap at 460 gms per annum is lower than that of Brazil at 1,100 gms per annum. While the awareness rate is high in both urban areas accounting for 60R and rural areas accounting for 30% the penetration level is low for both. This is because of apprehensions that usage of skin care products may benefit in the long run due to the chemical contents. Many households prefer to use traditional and natural home made products. Since the market is at a very nascent stage with very low penetration levels, the growth rates are expected to be higher at 24-255 over the next five years. New players such as Avon and Oriflame have entered the market with the natural ingredient benefit platform, which could further spur growth.

Soaps are available in 5 ml retail outlets in India, 3.75 m of which are in the Rural areas. Therefore availability of these products is not a problem, 75% of India's population is in the rural areas; hence about 50% of the soaps are sold in the rural markets.

Price is common basis for segmenting the cosmetics market. The market segments formed accordingly now describe:

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The sector is divided into two distinct segments-the premium segment catering mostly to urban higher/upper middle class and the popular segment with prices As low as 25%-30% of the premium segment , catering to mass segments in Urban and rural markets. The premium segment is less price sensitive and more brand conscious.

India's rural markets have been a lot of activity in the last few years. Since penetration levels are pretty high in most categories, future growth can come only deeper rural penetration. FMCG majors are aggressively looking at rural India since it accounts for 70% of the total Indian households.

High consumer awareness and penetration levels will enable the market to grow At an average 8-10% per annum with slightly higher growth in the rural areas. Higher penetration stems from popularity of low-cost detergents. Hence, besides increase in per capita consumption, there is tremendous scope for movement up the value chain.HLL, Nirma and P&G are the major players in the market with 40%, 30% and 12%share, respectively. While HLL dominates the premium segment, Nirma is the leader in the popular segment.

The term consumer is often used to describe two different kinds of consuming entities; the personal consumer and the organizational consumer. The personal consumer buys goods and services for is or her own (e. g. soap, shampoo etc.) for use of the household (e.g.TV VCR or car) or as a gift for a friend (E.g. bike, camera etc.). In each of these cases, individual who are Referred to as end uses or ultimate consumers buy the goods for final use.

The organizational consumer buys goods and services in order to run their Organization. Manufacturing companies buy raw material etc. to manufacture

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and sell their own products. Institutions buy the material they need to maintain themselves.


Whenever a consumer purchase a product, he is not just buying a brand. He is also buying an image that is associated with the brand. Every marketer, and marketing company, operates with the sole objective of crafting an array of image, and reinforcing this diverse image in a contextual framework that is relevant to the target segment. In ensures that the company is able to bring the brand so close to the consumer that the brand creates a special place for itself in the consumer's mind Imagery is everything. When a consumer parts with money to purchase a product, it is actually a response to the image that a particular band of the product has contrived in his mind. This image, when confronted by a need state translated itself into a purchase decision. During this period, the consumer is creating a relationship with the brand which, depending on is consumption experience, determines the future-buying pattern of the consumer. A series of good repeat purchase experience gives you a local customer.

Once that real understanding of a brand's drives through an identification of the unique associative image in obtained, in then becomes the task of the brand consumer ology to craft relevant fit for the brand into the consumer-selected image. From this fit an image is interpreted into a social and vocational set that inconsonance with the consumer's image and the image of the brand through the medium of an image solution. Having identified the image solution, the next task is to deliver it through the

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Variables of marketing like packaging, pricing, distribution, merchandising, promotion and advertising. The most important aspect of Consumerology, and image solution, is that they never dormant. Imagery, being everything is constantly changing, so do the image solutions. Thus, these image solutions are a function of listening to the consumer. They involves constant listening to Check if a brand's drivers are changing, if the consumer's image is changing and if the image of the brand is being molded according to the changing situation. So, the correct practice of Consumerology implies the creation of market listening post, which is constantly receiving consumer feedback and passing it to the brand consumerlogist who, in turn, interprets it for the creation of new image solution. If the listening stops, the solutions are no longer the result of consumer understanding, but merely the products of the experiential biases of the solution creators.

Consumer behaviour is the study of individual, individual in a group as whole while the individual decides to spend his/her time, effort and money on consumption related items. Consumer behaviour refer to the behavior that consumer displays in searching for, purchasing using, evaluating and is posing of products and services that they expect will satisfy their needs. They study of consumer behaviour is the study of how individual make decision to spend their available resources viz. Time, money and effort on they buy from, where they buy it, how often they buy it and how often they use it. Take the case of consumer durable e.g. the T.V. set. What features they look for? What is the reason for buying particular T.V. Set? How likely are they to replace their old models when new models with added features become available? The answer to such question can only be found through consumer research that provide. TV manufacture with important product scheduling, design modification and opting final strategy. Although this study focuses on how and why consumers make decision to buy T.V Consumer behavior and considers the uses consumers make of the good they buy and then subsequent equations. For example, a buyer may experience dissatisfaction to friend, and in

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turn influence his friend future TV purchase decision or may vow never to buy same brand or model again, prescribing his own future selection decisions. Each of these possible consequences of consumer post purchase strategies into their promotional campaigns.


For marketers, it is important for us to decide to whom to direct the promotional efforts by recognizing why and how individuals make their consumption decisions. If marketers understand consumer behavior they are able to predict how consumer are likely to react to various informational and environmental cues, and able to shape their marketing strategies accordingly. The initial thrust of consumer research was from a managerial perspective; marketing manager wanted to know the specific causes of consumer behavior. They also wanted to know how people receive, store and use consumption related information, so that they could design marketing strategies to influence consumption decisions. They regarded the consumer behavior discipline as an applied marketing science; if they could predict consumer behavior, they could influence it.


There are a number of reasons why the study of consumer behavior developed as separate marketing discipline. Marketing had long noted that consumer did Not always act or react as marketing theory would suggest. The size of the consumer market in this country highly diversified. Even in industrial markets, where needs of good and services are always homogeneous than in consumer markets, buyers are exhibiting diversified preferences and less predictable purchase behavior. To better meet the needs of specific groups of consumers, most marketers adopted a policy of market segmentation, which called of the division of their total potential markets into smaller, homogeneous segment for which they could design specific products or promotional campaigns. To try to improve the new product success rate to try to ensure consumer acceptance marketers make determined efforts to learn everything they could about their perspective

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consumer i.e. their needs, preference, changing life style. Research into consumer behavior provided them with necessary insights to develop new products and services and to design persuasive promotional strategies. The growth of consumer movement created an urgent need to understands how consumers make consumption decision e.g. in order to identify sources of consumer confusion and deception, consumer advocates sought to discover perceive and interpret various marketing and promotional information i.e. promotional appeals, package labels, warranties etc. Most of organizations have recognized that need to market globally to achieve major economies of scale. Marketers now use cross cultural consumer research studies as the basis for product development and promotional strategies to meet the needs of targeted consumers.


Diversity in human behavior often causes us to look the fact that people are really very much alike. Psychologists and consumer behavior agree that most people tend to experience the same kinds of needs and motives, they simply express these motives in different ways. For, this reason an understanding of human psychology is very important to market place. The human psychology is major factors that influence the buying behavior of the consumer. Under the psychological factors the following points are taken into consideration.


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Cosmetic products in the market

Every one of us has used some form of cosmetic at some point in our lives. Even talcum powder, lip balm, hair oil and shampoo fall under this category. Any product used for cleansing or for making a person more attractive by changing his or her appearance is called a cosmetic. Although soap does not figure in this list, all coloring, conditioning, and cleansing products used to protect the skin, hair, nails, lips, eyes, and teeth of humans are considered cosmetics. Ancient civilizations in India, China, and the rest of Asia abounded in wealth, and kings, queens and the common people used natural preparations as cosmetics, as is often mentioned in classical poetry and literature from these regions. The Egyptians used a plethora of such preparations way back in the 4th millennium B.C. Cosmetics were used widely in the Roman Empire too. Then the European region became relatively devoid of cosmetics until the Middle Ages when they were reintroduced from the Middle East. The usage of cosmetics was derided by many at the time and considered too flashy and fit only for actors. However, things changed drastically, of course, and now every social class has its own set of cosmetics, ranging from foundation, face powder, rouge, eye make-up colors, and lipsticks of every hue. The hair has its own set of pampering cosmetics, from shampoo, conditioners, hair colors, curlers, and straighteners. As cosmetics help enhance the personality of a person and not just physical beauty, antiperspirants, mouthwashes, depilatories, astringents, and bath crystals also get included. In the 1900s cosmetics were scientifically prepared in France, spawning a huge industry which has grown in leaps and bounds to date, with western brands like Revlon, Elizabeth Arden and Asian ones like Biotherm, AmorepacificShahnaz, Lotus and Biotique gaining popularity for the quality and the entrepreneurial acumen of the brand owners. The 21st century witnessed the formation of large cosmetic companies and the value of the industry growing into the billions of dollars. Many cosmetics of today originated in Asian countries, especially the herbal kind, with India being a major source. The beauty business has been overwhelmingly taken over by the herbal cosmetics industry here, as organic and ayurvedic cosmetics gain precedence over chemical concoctions, said Shahnaz Husain, an Indian beauty expert.Along with Shahnaz, several herbal beauty products adorn shop counters such as Biotique, Himalaya, VLCC, Dabur and Lotus along with LOreal, Revlon etc. The Indian

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cosmetics market is valued at US$4 billion and is fast growing at a seven percent rate. Hindustan Unilever is the largest cosmetics company in India, followed by LOreal. Organic cosmetics are preferred as they do not hinder vitamin D absorption by the skin. From time immemorial henna (Lawsoniainermis) has been used to color hair, homemade kajal is used to line the eyes, sandal wood paste to smoothen skin and turmeric paste as a hair remover. Egg white and almond oil help condition hair, while oiling the hair keeps its sheen and postpones hair whitening. With so many cosmetics available in the kitchen cupboard the industry needs to satisfy consumer awareness and serve its customer base in increasingly wholesome ways.Mary Kay Cosmetics, launched by American businesswomen Mary Kay Ash, ventured into India with plans to invest US$20 million over a 3-4 year period to develop infrastructure, execute technology transfer and provide training. It is now opening brand experience centers in all major cities, where beauty consultants will provide consumers with customized beauty care.With growing income levels, sales figures are expected to grow as the products target the upper echelons of society with its mass prestige range featuring uniquely designed products for the Indian populace. Maricos Kaya skin care products for both men and women is backed by the philosophy of offering personal confidence through expert skin care which synergises looking good with feeling good about ones inner and outer self at all times. With clinics spread across India, the Middle East and Bangladesh, the customized and personalized services from Kaya serve all cosmetic needs. China became a popular destination for Japanese cosmetics major Shiseido, which entered in the year 2003 to leverage the huge Chinese population, which was then ten times greater than Japans. HuanCaiJian, the companys cosmetics store, was opened with 223 different cosmetic items in Shanghai. As a large cosmetics producer, China is expected to benefit more owing to the positive regulatory environment and the growing Chinese economy. With more multinationals keen on opening shops there, this is bound to happen in spite of the prevalence of counterfeit cosmetics which act to discourage foreign investments in the industry.

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Asia-Pacific cosmetics companies are going all natural and organic for ensuring safety and to garner a big piece of the market already occupied by American and European brands like Avon, Oriflame, and Garnier. Many natural cosmetics companies in the Asia-Pacific region are following certified natural and organic cosmetic standards to differentiate their products from that of competitors. The Malaysian company I-Green was successful when it launched the first Asian line of certified organic baby care products under the Buds Cherished Organic brand. The Australian brand Jasmin Skincare saw success in China by marketing its products as the best organic skincare in the world, said Organic Monitor sources. The sudden awareness regarding cosmetics containing synthetic ingredients follows warnings to consumers about a range of Taiwanese skin care products which were found to contain an antibiotic called clindamycin a few years back, and that asbestos was detected in NU.K. baby talcum powder and Locean cosmetics sold in China. Educated and informed consumers are now wary and go through many stages before zeroing in on any product. According to Datamonitor surveys, AsiaPacific consumers are more concerned about safe use of cosmetics than global consumers. A survey conducted in 2008 showed that about 63 percent of respondents from Asia-Pacific preferred 100 percent natural ingredients in their health and beauty products, while only half this number felt the same in other regions. Also in a 2009 survey, about 40 percent of Asia-Pacific consumers revealed that they were ready to pay more for organic beauty products, which is more than the 33 percent global average. This consumer preference served as an advantage for Asian companies which filled the void, offering safe natural and organic products that were not yet offered by western brands. Readymade Ayurvedic concoctions and home cosmetic recipes turned into huge brands overnight. This niche has to be retained by Asian brands through developing consumer loyalty to keep multinational brands at bay. Cosmetics Leaders Asia is a live forum designed to bring cosmetic manufacturers, formulators, scientists, sales and marketing professionals together on one platform along with ingredient

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suppliers and cosmetics packaging suppliers. Conferences, brainstorming sessions, an exhibition of new ingredients, etc., form part of the annual CLA event. This is expected to give impetus to the cosmetics industry as a whole. Even small countries like Taiwan form a lucrative market for skin care products, color cosmetics and hair care products. Singaporeans demand better sun care products and mens grooming products, while Thailand shows demand for skin care products and perfumes. In Vietnam and Indonesia, domestic cosmetic producers supply to the middle and low-end market segment while multinational brands serve the affluence. serve the affluent. Whats New Nutricosmetics Taking skin deep beauty even deeper, Nutricosmetics products promise to make skin, hair and nails even more healthy and beautiful. In spite of the recent economic downturn, the nutricosmetics sector is growing fast, says market research company Kline. Projected growth for the global skin care market is about 11 percent per year up to the year 2012, owing to an increase in new product launches. These products include foods with carotenoids, cod liver oil, fish oil, multivitamins and others. Promoting these products is difficult as most consumers feel that they do not need them as they are already on a healthy diet, and many consumers feel nutricosmetics do not work. Consumers still prefer a topical cosmetic product over functional foods or beauty supplements. Nutricosmetics is still widely unknown to many, which prevents product penetration into new markets. But the realization that beautiful skin does not happen overnight and that many consumers use nutricosmetics along with their regular beauty regimen seems to be encouraging for this new sector. The high levels of loyalty that consumers have for nutricosmetics once they use them will serve this industry in the long run. Oral supplement and skin care specialist Ferrosan launched its male grooming nutricosmetic, management, an anti-ageing supplement treatment which can prevent dry skin, lines, wrinkles, and protects against UV damage and

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increases moisture levels in the skin. In the U.K., response to the product was not so good, while in Singapore and the United Arab Emirates sales were remarkably high. Another brand, Functionalab, also witnessed good responses from Asian countries when compared to the United States as nutricosmetics was easily integrated with the usual beauty routine here. Nurturing the skin from inside out offers long-lasting results, as nutricosmetics ensures. Nestl has developed an edible beauty bar for Kit Kat brand along with Tokyo Beauty Clinic which comes in variants like bitter almond and aloe yoghurt. Breakfast cereals like Moody Muesli, embellished with pumpkin seeds, cereals, cranberry, goji and grapes make them an antiageing nutricosmetic. Nestl Malaysia has introduced a coffee with 3-in-1 collagen complex supposedly to strengthen skin elasticity. The fact that beauty, nutrition and pharmaceuticals go hand in hand has inspired big and small companies to launch innovative products and promotions. Male Grooming Products Beauty treatments are for men as much as they are for women, as proven from the fact that global sales of male specific cosmetics stands at US$28 billion. And this number is growing at 12 percent a year, what with new salons cropping up, while barber shops upgrade to beauty salons with increased celebrity endorsements. What was a quick shave a generation back now encompasses an entire skin, hair and body regimen. Men of all ages and classes are open to using new products. Even hair removal creams for men are gaining popularity, and even in India, which is considered a conservative market. Social pressures, competition at work and acceptance by many seems to encourage men to move from a simple massage to facials, hair coloring, hair styling and so on. Cosmetics for men have gone natural straight away with the launch of several successful mass market products made of naturally derived ingredients. They include moisturizers, aftershave

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products, face washes and face scrubs, shower gels, and shave gels. Aftershave products contained perfumes and alcohol before, but now they contain soothing balms. South Korean men are forming a lucrative market as they seem to be more interested in their looks and eager to fight ageing indicators. Hyundai Department Store, a major retailer, increased its male sales staff strength to sell cosmetics. Lotte Department Store representatives say that men are mov- ing away from traditional products towards Biotherm and Amorepacific lotions, sprays, ointments, tonics, gels and creams. Needless to say sales figures have been jacked up. Military personnel and others working outdoors are early adopters of skin care products. The male cosmetics segment is go- ing places for sure. The well-groomed look is in and the rugged, hairy look is pass. Marketers are quick to take the ball and roll with it, like Amorepacific in Korea, which is organizing grooming classes at college cam- puses and workplaces to teach men to dress in style and take skin care seriously. Asia is regarded as the most important region for ingestible beauty, driven by consumer demand and also because the regulatory system there is more sophisticated than in Europe, said experts. The FOSHU (Foods for Specified Health Uses) rules specify what can and what cannot be claimed for a product. Sun protection and whitening for skin care products, and volume and growth for hair care products are allowed as claims as long as they are not exaggerated.

Indian profile Bearing a long glowing heritage of cosmetic and beauty, aesthetic makeup products is being used since olden days and nowadays it appear like a booming economy in India which would be the largest cosmetic consuming country in a next few decades. While the demand of beautifying substances are growing day by day, a large number of local as well as international manufacturers gradually extend their ranges and products in different provinces of India.Since 1991 with the liberalization along with the crowning of many Indian women at international beauty pageants, the cosmetic industry has come into the limelight in a bigger way. Subsequently

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their has been a change in the cosmetic consumption and this trend is fueling growth in the cosmetic sector. Indian cosmetic Industry had rapid growth in the last couple of years, growing at a CAGR of around 7.5% between 2006 and 2008. While this is due to the improving purchasing power and increasing fashion consciousness, the industry is expected to maintain the growth momentum during the period 2009-2012. In the Indian Cosmetic Industry both electronic as well as print media are playing an important role in spreading awareness about the cosmetic products and developing fashion consciousness among the Indian consumers. Due to the development of satellite television and a number of television channels as well as the Internet in the modern day, the Indian consumers are constantly being updated about new cosmetic products, translating into the desire to purchase them. Additionally, the flourishing Indian fashion/film industry is fueling growth into the Cosmetic industry in India by making Indians to realize the importance of having good looks and appearances. Today most of the cosmetics manufacturers in India cater to the domestic market but they are gradually establishing their footholds in overseas markets. In recent years, cosmetic manufactures in India have received orders from overseas markets; for example - Indian herbal cosmetic products have a tremendous demand in the international market. The Indian Cosmetics Industry is defined as skin care, hair care, color cosmetics, fragrances and oral care segments which stood at an estimated $2.5 billion in 2008 and is expected to grow at 7%, according to an analysis of the sector.Today herbal cosmetics industry is driving growth in the beauty business in India and is expected to grow at a rate of 7% as more people shun chemical products in favour of organic ones. The emphasis of the herbal cosmetic has been on the spectacular growth of the herbal and ayurvedic beauty products business as conveyed by beauty expert Shahnaz Husain who was the first to introduce the concept of ayurvedic cosmetics to the world when she launched her products way back in 1970. Today, the Indian cosmetics industry has a plethora of herbal cosmetic brands like Forest Essentials, Biotique, Himalaya, Blossom Kochhar, VLCC, Dabur and Lotus and many more. The Indian cosmetics industry has emerged as one of the unique industries holding huge potential for further growth. In 2009, the cosmetics industry registered sales of INR 356.6 Billion (US$ 7.1 Billion) despite the global economic recession. Indian

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cosmetics Industry has mainly been driven by improved purchasing power and rising fashion consciousness of the Indian population and industry players spending readily on the promotional activities to increase consumer awareness and develop their products. According to a new research report, the Indian Cosmetics Industry is expected to witness impressive growth rate in the near future owing to rising beauty concern of both men and women. Today the industry holds promising growth prospects for both existing and new players. The baseline is that there has been a rise in variety of products offered by the industry players in the country. The companies have started going for rural expansion and are offering specialized products to generate revenues from all the corners of the country. Improvement and strengthening of the Indian economy in the coming years will also pave the way for the Indian cosmetics market over the forecast period and develop the Cosmetic Industry. The Indian Cosmetic market which traditionally a stronghold of a few major Indian players like Lakme, and Ponds has seen a lot of foreign entrants to the market within the last decade. India is a very price sensitive market and the cosmetics and personal care product companies, especially the new entrants have had to work out new innovative strategies to suit Indian preferences and budgets to establish a hold on the market and establish a niche market for them. Top leading companies

Lakm is the Indian brand of cosmetics, owned by Unilever. It started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it is named after the French opera Lakm, which itself is the French form of Lakshmi, the goddess of wealth who has is also renowned for her beauty.

Revlon is an American cosmetic for skin care, fragrance, and Personal Care Company founded in 1932.

Oriflame Cosmetics S.A. (Luxembourg) is a cosmetics group, founded in 1967 in Sweden by the brothers Jonas AF Jochnick and Robert AF Jochnick.

The L'Oral Group is the world's largest cosmetics and Beauty Company. It concentrates on hair colour, skin care, sun protection, make-up, perfumes and hair care.

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Chambor cosmetic line is a blend of the finest traditions in terms of radiant color, soft texture and skin accentuator.

Maybelline is a makeup brand sold worldwide and owned by L'Oral. Avon Products, Inc. is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world.

Make-up Art Cosmetics or MAC Cosmetics, is a manufacturer of cosmetics which was founded in Toronto, Canada by Frank Toskan and Frank Angelo in 1984

ColorBar cosmetics are one of the leading brands of color cosmetics in India. Street Wear is a young, funky and hip brand which globally is positioned at the young and trendy shopper and the range consists of about 30 SKUs covering categories like nail enamel, lipsticks, lip gloss, face make-up kits and eye shadows.

Latest development

According to Indian Cosmetic Sector Analysis (2009-2012), the Indian cosmetics industry is expected to witness fast growth rate in the coming years on the back of an increase in the consumption of beauty products. Owing to growing disposable income of the middle class households and changing lifestyle, it is expected that the cosmetics industry will grow at a CAGR of around 17% during 2010-2013.

A study even shows that affordability and rising consumer base were the main drivers behind the high cosmetic sales of around INR 356.6 Billion (US$ 7.1 Billion) in 2009. Market players are getting lucrative and good opportunities as people have become more beauty conscious due to changing lifestyle and spreading consumer awareness.

According to ASSOCHAM the size of India's cosmetics market will rise by almost a half to 1.4 billion dollars in the next two-three years as people get fashion conscious and more brands are launched. With increased awakening about cosmetics brands, which is evident even in rural India, the industry size will grow to around 1.4 billion dollars from current level of 950 million. It is projected to grow at a CAGR of around 7% during the forecast period.

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Indian Cosmetics Industry is set for a significant growth depending on the capability of the manufacturers to market their products. Products that claim to renew cells, minimize pores, and restore hydration have created an $83 billion worldwide market.

Due to the optimistic assessment the domestic cosmetic and toiletries industry show that with increased awakening which is growing even in rural India, its size will grow in next 2-3 years to around US$ 1400 million from current level of US$ 950 million. Till then India's per capita consumption of cosmetic and toiletries products could be on par with that of China which currently is US$ 1.5, says ASSOCHAM analysis.

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Analysis Of Data

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TABLE NO :-1 Product Sampoo Eye Liner Kajal Facewash Moisturizer Muscura Compact Conditioner Bleach Cream Astringent Cleansing Milk Foundation Lipstick Perfum Deodorant Nail paint Cream Student 54 40 8 42 34 6 14 8 20 16 36 12 50 30 44 48 34 Non-working 32 20 0 0 20 0 0 0 18 0 20 6 24 16 12 8 8 Working 14 8 1 10 8 4 4 6 12 6 8 2 12 10 12 6 4

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Cream Nail paint Deodorant Facewash Perfum Moisturizer Lipstick Cleansing Milk Muscura Compact Conditioner Astringent Bleach Cream Sampoo Eye Liner Kajal


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Non working
Nail paint Cream Deodorant Sampoo Perfum Lipstick Eye Liner Moisturizer Cleansing Milk Bleach Cream Foundation Astringent Kajal Facewash Muscura Compact Conditioner

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Nail paint Cream Sampoo Deodorant Perfum Lipstick Eye Liner Kajal Facewash Moisturizer

Bleach Cream Foundation Cleansing Milk Astringent

Muscura Compact Conditioner

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Product Sampoo Eye Liner Kajal Facewash Moisturizer Muscura Compact Conditioner Bleach Cream Astringent Cleansing Milk Foundation Lipstick Perfum Deodorant Nail paint Cream Student Lakme Lakme Ponds,Pears Ponds,Pears Lakme Lakme Ultra Doux Fem,Joilen Ayur Lakme,Ayur Lakme Lakme El-Paso,Elle Elle-18Rexor Revlon,Lakme Charmis F&L Non-working Lakme Lakme Ponds Ponds Lakme Lakme Ultra Doux Fem,Joilen Ayur Lakme,Ayur Lakme Lakme,Revlon Rexona-Do-It Rexona Revlon,Lakme Ponds,Nivea Working Clinic Plus Lakme Lakme Ponds,Pears Ponds,Pears Lakme,Revlon Lakme,Revlon Ultra Doux Fem,Joilen Ayur Lakme,Ayur Touch,Revlon Lakme,Revlon Charlie,Oroflame Ella-18,Fa,Ponds Alpha,Lakme Ponds,Nivea

Sunslik,Pentence Clinic Plus

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TYPES OF COSMETIC USED Table no:-3 Product Branded Local Student 40 14 Non-working 8 6 Working 24 8

The survey shows that students use branded cosmetics

Branded Local

Local 26%

Branded 74%

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The survey shows that non-working women use branded cosmetics.

Not working
Local 43% Branded 57%

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The survey shows that working women use branded cosmetics.

Local 25%

Branded 75%

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Table no:-4 Reason To improve your personality Social Influences Fashion and Status Symbol Health point of view Psychological Satisfaction Student 26 5 5 8 10 Non-working 9 10 5 4 4 Working 6 3 2 1 2

Psychological Satisfaction 19%


Health point of view 15%

To improve your personality 48%

Fashion and Status Symbol Social Influences 9% 9%

The survey shows that students buy cosmetics, keeping in mind health and personality improvement. Fashion and status and social influences do not cater much.

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Non working
Psychological Satisfaction 13% Health point of view 12% To improve your personality 28%

Fashion and Status Symbol 16%

Social Influences 31%

The survey shows that the non-working buys cosmetics for their psychological satisfaction and health.

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Psychological The survey shows that working women buy cosmetics to improve the Satisfaction Personality and they are also affected by social influences 14% Health point of view 7%


To improve your personality 43% Social Influences 22%

Fashion and Status Symbol 14%

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Table no:-5 Perception Luxury Necessity Both Student 10 36 8 Non working 6 24 2 Working 2 10 2

Both 15% Luxury 18%

Necessity 67%

The survey shows that students perceive cosmetics to be a necessity.

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Both 6%

Non Working
Luxury 19%

Necessity 75%

The survey shows that non-working perceive cosmetics to be necessity

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Both 14% Luxury 14%

Necessity 72%

The survey shows that working women perceive cosmetic to be a necessity.

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Factors Behind Buying Decision TABLE NO:-6 Factors Brand Price Quality Packaging Ease to Use Availability Student 40 48 24 6 14 20 Non-Working 8 12 4 2 6 4 Working 8 5 10 4 2 2

Availability 13% Ease to Use 9% Packaging 4% Quality 16% Brand 26%

Price 32%

The survey shows that students consider price and brand name to an important determinant in buying cosmetics.

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Availability 11%

Ease to Use 17% Quality 11% Brand 22%

Packaging 6%

Price 33%

The survey shows that the non-working women consider brand name price and easeof use to be an important determinant in buying cosmetics

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Availability 6% Ease to Use 7% Packaging 13%

Brand 26%

Quality 32%

Price 16%

The survey shows that the working women consider quality and brand name to be important determinant in buying cosmetics.

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Source Of Information TABLE NO:-7 Sources Beautician Doctors Shop-Keepers Friends Media Student 34 8 4 48 30 Non-Working 10 4 2 16 24 Working 6 0 0 8 12

Media 24% Beautician 27%

Friends 39%

Doctors 7% Shop-Keepers 3%

The survey shows that friends and beautician are sources that make students aware of cosmetics.

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Media 43% Beautician 18% Doctors 7% Shop-Keepers 3%

Friends 29%

The survey shows that media and friends make non-working women aware of cosmetics

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Beautician 23% Doctors 0% Shop-Keepers 0%

Media 46%

Friends 31%

The survey shows that media and friends influence working women.

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Outlets For Purchase TABLE NO :-7 Outlets General Stores Exclusive Cosmetic Beauty Parlours Cosmetic Stores Student 46 4 28 14 Non-Working 24 0 4 4 Working 10 0 3 2

Cosmetic Stores 15% General Stores 50%

Beauty Parlours 31%

Exclusive Cosmetic 4%

The survey shows that student generally buy cosmetics from general stores and parlors

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Cosmetic Stores 13% Beauty Parlours 12% Exclusive Cosmetic 0%

General Stores 75%

The survey shows that non-working women largely buy cosmetics from general stores.

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Cosmetic Stores 13%

Beauty Parlours 20% General Stores 67% Exclusive Cosmetic 0%

The survey shows that working women largely buy cosmetics from cosmetic stores.

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Expenditure on cosmetics TABLE NO :-8 Expenditure 0-50 50-100 100-150 150-200 More Student 8 32 4 4 6 Non-Working 4 12 10 2 0 Working 0 0 0 4 10

150-200 7% 100-150 8% More 11% 0-50 15%

50-100 59%

The survey shows that students spend Rs.50-100 monthly on cosmetics. The survey shows that working women largely buy

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150-200 7% 0-50 14% 100-150 36% 50-100 43%

More 0%

The survey shows that non-working women spend on an average Rs.50-100 on cosmetics.

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0-50 50-100 100-150 0% 0% 0% 150-200 29%

More 71%

The survey shows that working women spend Rs. 150-200 on cosmetics.

pg. 72

Effect of Cosmetic Advertisements TABLE NO :-9

Effect Help Not Help

Student 36 18

Non-Working 8 24

Working 8 6

Not Help 33%

Help 67%

The survey shows that advertisement help many students to decide on type and specific brand of cosmetics.

pg. 73

Help 25%

Not Help 75%

The survey shows that housewives are generally not influenced by cosmetic advertisements.

pg. 74


Not Help 43% Help 57%

The survey shows that advertisements play a role in helping working women to choose on specific brand and type of cosmetic.

pg. 75

Type of Cosmetic TABLE NO:-10 Type Herbal No-Herbal Student 40 14 Non-Working 22 10 Working 10 4

No-Herbal 26%

Herbal 74% herbal brands. The survey shows that students prefer using

pg. 76

The survey shows that most of the non-working women use herbal products.

No-Herbal 31%

Herbal 69%

pg. 77

The survey shows that most of the working women use herbal products.

No-Herbal 29%

Herbal 71%

pg. 78

Brand Switching TABLE NO :-11 Attitude Change Not-change Student 34 20 Non-Working 22 10 Working 10 4


Not-change 37% Change 63%

The survey shows that students generally change their brands.

pg. 79

Not-change 31%

Change 69%

The survey shows that non- working women change their brands frequently.

pg. 80

Not-change 29%

Change 71%

The survey shows that working women too change brands.

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Same Brand For all Existing Product Category TABLE NO :-12 Response Yes No Student 10 44 Non-working 10 22 Working 2 12

Yes 19%

No 81%

pg. 82

Yes 31%

No 69%

The survey shows that non-working women do not use same brand for all cosmetics. However, a few still use same brand.

pg. 83


Yes 14%

No 86%

The survey shows that a very high percentage of working women use different brands.

pg. 84

Experience of Duplicity TABLE NO :-13 Experience Yes No Student 12 42 Non-working 12 22 Working 2 12

Yes 22%

No 78%

The survey shows that a few students experienced duplicity.

pg. 85

Non working
Yes 35%

No 65%

The survey shows that about one third working women have experienced duplicity.

pg. 86

Yes 14%

No 86%

The survey shows that a very few working women have experienced duplicity.

pg. 87

Regarding Healthy Impression about The Quality of Cosmetics TABLE NO :-14 Response Yes No Student 78 22 Non-Working 56 44 Working 71 29

No 22%

Yes 78%

The survey shows that students think that variety of cosmetic create a healthy impression about quality of cosmetics.

pg. 88


No 44% Yes 56%

The survey shows that non-working women think that variety of cosmetics of a particular brand does not create a healthy impression about the quality of cosmetics.

pg. 89

No 29%

Yes 71%

The survey shows that like students, working women also think that variety of cosmetics create a healthy impression about quality of cosmetics.

pg. 90

Brand usage in the Family TABLE NO :-15 Brand Same Difference Student 32 22 Non-Working 22 10 Working 8 6


Difference 41% Same 59%

The survey shows that that some families use all the products of cosmetics of the same brand.

pg. 91

Difference 31%

Same 69%

The survey shows that almost all the non-working women use cosmetics of the same brand.

pg. 92


Difference 43% Same 57%

The survey shows that half the working women families use cosmetics of different brands.

pg. 93

Price versus Utility TABLE NO :-16

Perception Yes No

Student 22 32

Non-Working 20 12

Working 10 4

Yes 41% No 59%

The survey shows that students do not think that price is in sync with the utility they offer.

pg. 94

No 38%

Yes 62%

The survey shows that non-working women think that price is correct according to the utility they offer.

pg. 95

No 29%

Yes 71%

The survey shows that working women also think that price is in sync with the utility they offer

pg. 96


Findings and Suggestions

pg. 97

In the present scenario, all the females use cosmetics. However the number of cosmetics used varies. The highest response is being shown by working women, next by students and least by non-working women.

Nearly, all the females use branded products.

Cosmetics are generally used for improving their looks and personality.

Using cosmetics gives them psychological satisfaction and confidence.

Cosmetics nowadays have become a necessity for all the females.

Cosmetics are purchased keeping in mind the brand name, price and quality. Packaging and ease of use do not hold much significance. This is true for all the three categories.

Friends and media play a very important role in making females aware of cosmetics.

Cosmetics are generally purchased from general stores by all the three categories of females.

Working women spend more on cosmetics on an average than housewives and student

Cosmetics have after effect though their frequency is very les. But to satisfy their short term need they are being used.

pg. 98

Advertisements play a role in helping customer decide on specific brand of cosmetics. Students and working women influenced more.

Working women buy cosmetics in medium size, student in small size and working women in large in size.

There is trend to use herbal cosmetics. Due to the awareness, the illeffects are being considered while buying them.

Customer while purchasing cosmetics are not brand loyal.

No brand as such is providing all the popular products in cosmetics.

Duplicity although very less is being experienced which result in brand switching.

Creating variety of cosmetics of a particular brand creates a healthy

Price of cosmetics is found to be consummate with the utility it offers.

pg. 99

Marketers should try to create brand loyalty by making special changes in the product.

They should try to generate positive word of mouth by generating quality products.

Duplicity should be checked as per standards.

Proper attention should be given to make cosmetics free of after-effects.

For promotion purposes, more attention should be given to the general and cosmetic stores.

As media plays an important role, TV and magazines should be properly exploited.

Celebrities and brand ambassadors should be included in the advertisements to make them more effective.

pg. 100

BIBLIOGRAPHY 1.International Review of Business and Social Sciences http://irbss.org/files/pdf/IRBSS-12-1913.pdf

2.International Journal in Multidisciplinary and academic research http://ssijmar.in/vol2no2/vol2no2.28.pdf

3.Brickwork Sourcing (Blog) http://www.brickworksourcing.com/blog/?p=12

4.History of cosmetics http://www.historyofcosmetics.net

5.Cosmetics http://www.cosmeticsinfo.org/history3.php

6. Philip Kotler Marketing Management.

7.Social Science Research Network http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2111545

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pg. 102

CONSUMER BUYING BEHAVIOUR AS REGARDS COSMETICS 1) Do you use cosmetics? a) Yes b) No If yes, please specify the name.

2) Which cosmetics do you use? a) Branded b) Local

3) Reasons for buying and using cosmetics: a) To improve personality b) Social influences c) Fashion and status symbol d) Health point of view e) Psychological satisfaction

4) What is your opinion about cosmetics? a) Luxury b) Necessity c) Both

5) What factors do you consider while purchasing cosmetics? a) Brand b) Price c) Quality d) Packaging e) Ease of use f) Availability

pg. 103

6) What are the sources that make you aware of cosmetics? a) Beauticians b) Doctors c) Shopkeepers d) Friends e) Media

7) From where do you purchase cosmetics? a) General stores b) Exclusive cosmetic stores c) Beauty salons

8) How much on an average do you spend on cosmetics? a) 0-50 b) 50-100 c) 100-150 d) 150-200 e)200 or more

9) Do you think cosmetic advertisements help you to decide on type and specific brands of cosmetics? If yes, please mention.

10) What type of cosmetics do you like to buy? a) Herbal b) Non-herbal

11) Do you regularly use the same brand of cosmetics or change the brand frequently? If yes, then reasons for changing are: a) Price change b) New brand introduction c) Product improvement d) Package changes e) Advertising intensity pg. 104

12) Do you use the same brand of cosmetics for all the existing product categories in cosmetics? a) Yes b) No

13) Have you ever experienced any inferiority or duplicity in cosmetics you have purchased? If yes, how has that influenced your buying behavior? a) Brand switching b) Category switching c) Any other

14) Does variety of cosmetics of a particular brand create a healthy impression on your mind about the quality of cosmetics? a) Yes b) No

15) Do all your family members use same brand/type of cosmetics? a) Yes b) No

16) Do you think that the price of cosmetics in general is in sync with the utility they offer? a) Yes b) No

Name : Age : Profession: Address :

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