A

Internship Research Report

On

Brand analysis and satisfaction regarding products of Schwarzkopf

in Ranchi district of Jharkhand
In partial fulfilment of
Integrated Master of Business Administration

Submitted by
Sumant Kumar
Semester VII
Centre for Business Administration
Central University of Jharkhand, Ranchi

Under the supervision of

Mr. Debraj Dutta
Henkel AG & Company, Kolkata, West Bengal

DECLARATION
I hereby declare that the work incorporated in this report entitled Brand analysis and
satisfaction regarding products of Schwarzkopf in Ranchi district of Jharkhand is the
outcome of original study undertaken by me carried out under the guidance of Mr. Debraj
Dutta, Branch Head, HENKEL AG Co. Ltd., Kolkata, India.
I further declare that the matter in this report has not been submitted by me as a whole or
in part at any other University or Institution for the award of any Degree or Diploma.

Date- -----------------------------Place- Ranchi

(Sumant Kumar)
Integrated MBA
Centre for Business Administration

ACKNOWLEDGEMENT
Firstly, I would like to express my immense gratitude towards the company HENKEL
AG ltd. and our institution Central University of Jharkhand, which created a great
platform to attain profound technical skills in the field of MBA, thereby fulfilling our
most cherished goal.

I express my gratitude to the Mr Debraj Dutta, Marketing Head, Henkel AG ltd.

Last but not the least, I would like to cite my beloved parents, our faculty MR. NITESH
BHATIA & DR. J P VERMA and all my friends for their Love, and encouragement,
support and blessings. These pages could scarcely have been written without their help.

I express my gratitude to the Head and Faculty members of Center for Business
Administration (CUJ), who directly or indirectly helped me.

INDEX
S.NO.

CONTENTS

DECLARATION
ACKNOWLEDGEMENT
CHAPTER-1
1
2
3
4
5

Introduction to the study

Introduction of hair care business
Objectives of the study
Limitations of the study
Research methodology

CHAPTER-2
2.1

Company profile

CHAPTER-3
3.1

Literature Review

CHAPTER-4
4.1

Data analysis and interpretation

CHAPTER-5
5.1
5.2
5.3

Findings
Conclusion
Suggestions and Recommendations

ANNEXURE
Bibliography
Questionnaire

CHAPTER-1
INTRODUCTION

This chapter presents the introduction to the study, definition of cell phone, concept,
objectives, research methodology and limitations of the study. The introduction starts
with a brief overview of brand and mobiles. It identify relevant research objective and
prepares the research design under which the study has been carried out. And it also
mention the limitations the study has went through.

1. 1 Introduction to the study

The project study begins with the analysis of the hair colour industry, followed by the
analysis of brand and satisfaction among the salon partners and their customers. The
research study is exploratory in nature and involved surveys, questionnaires and indepth interviews.
According to these analysis and market survey, the research will provide a range of
advice and assistance for Schwarzkopf to expand its present market and potential
market and bring great advantages to the development of Schwarzkopf.
Qualitative study at the saloons and the malls suggests that there is a gap in terms of
Brand awareness between consumers. It is also observed in Indian market that the brand
name Schwarzkopf is difficult to pronounce which creates a gap between the brand and
the consumers. So the study aims at understanding the problems that the salon is facing
in promoting Schwarzkopf and suggest an accurate solution over it.
The motivation is to understand the consumers purchase decision of hair colour and
also study their perception about various other competitors. And to understand whether
the education or usage of their Organic product influences their preferences towards
organic products. It also wanted to know if they are willing to pay a premium for the
Schwarzkopf product.
The detailed data about the hair colour industry was collected from the various website
as well as from the published sources such as various journals, Govt. reports,
newspapers etc. Primary data is also collected from various hair salons through
interviews

Introduction to Hair care business and market

Beauty gets Attention whereas Personality gets the heart. In todays superficial and
skin-deep society, a person is judged on various characteristics like facial features,
dressing, voice, appearance, body structure and even height. Although these
characteristics are beyond ones control or power, there is a strong demand for products
that help to enhance these features. A society that considers beauty as power and
worships celebrities provides a perfect opportunity for beauty enhancing products and
the cosmetics industry.
Although the famous quote of Plato, Beauty lies in the eyes of the beholder is repeated
often; it merely remains a recitation and not a reflection. For everyone strives to achieve
beauty and increase their appeal even when they may be already considered beautiful.
Many celebrities keep updating their style and fashion to remain appealing. Some even
undergo painful treatments and expensive surgical procedures just to attain that perfect
look. However, is this behaviour exhibited even in the common man?
Hair care products are formulated to help nourish and prevent hair damage resulting
from dryness, pollution, and other factors. The hair care market is comprised of
thousands of products, such as shampoo, conditioners, serums, colorants, sprays, etc.,
which are composed of both natural and synthetic ingredients in order to maintain
healthy, lustrous and well-groomed hair. In today's culture, healthy hair is a staple that
portrays the idea of maintaining a youthful appearance, and this factor strongly
influences purchase decisions among consumers.
Hair care is continuously engaged in research and development in order to formulate
new, more effective and safe products. Over the past few years, herbal hair care products
have been enjoying increased popularity because of consumers heightened awareness
about the ill effects of harsh chemicals and substances.
Growth in the hair care market has been encouraging, which has prompted a number of
new entrants to gain a foothold in niche segments. In the coming years as well, this
trend is projected to continue, especially as millions of consumers in developing
economies are now becoming conscious about styling their hair, colouring grey hair,
and maintaining a healthy scalp.
The cosmetics industry ranges from skin care, hair care, fragrances to spas and antiaging treatments. According to FashInvest, the global sales in the beauty industry
reached approximately $426 billion in 2013 and are expected to reach $630 billion by
2017. Roughly, about 20% of these sales belong to hair care market. Shampoos,
conditioners, hair colours, styling products are some of the key products that comprise
of hair care market. Mens grooming is also a booming market being valued at about
$79 billion in 2014.

Source: (statistica.com, 2015)

The estimated size of the global hair care market from 2012 to 2021. In 2016, the global
hair care market is estimated to be worth about $83.1 billion.
A quick google search on Indian hair dye market threw up some interesting information.
In 2006 the hair dye (or more broadly hair care) market was close to Rs 300 crore,
according to a Business Standard story (Nov 2006). In two years it jumped to Rs
580crore, according to another story in Business Standard on August 22, 2008.
According to Confederation of Indian Industries (CII), the total Indian beauty and
cosmetic market size currently stands at $950 million and expected to grow 15-20% per
annum.
Although the overall market in the Asia-Pacific is still underlined by developed markets
such as Japan and South Korea, smaller markets such as Malaysia, Thailand and
Indonesia are showing much stronger growth, although this growth is still
overshadowed by India and China.
Increased consumer interest in healthy hair and awareness supported by greater
education of the benefits of salon products is helping fuel growth of salon hair care
products in the country. All of this is being driven by the fact that the rapidly evolving
Indian economy is giving way to an expanding middle class population with increasing
expendable income levels, reflected in the fact that visitor numbers to hair care salons
are on the rise.
The professional hair care market is still largely a nascent one affording much potential
and allowing an environment conducive for global beauty players to make an entry.

With a growing number of new salons opening competition is also becoming keener by
providing consumers with multiple choices and encouraging a higher quality of service
Hair dyeing or hair colouring is the practice of changing the natural hair colour. Hair
colouring is basically of 3 types- Permanent, Semi-permanent and Temporary. Often,
the prime reason for hair colouring is cosmetic and enhancement of natural beauty. Hair
colouring is extremely popular and various shades of hair dye are offered by almost
every leading cosmetic brand.

1.2

Objectives of the study

The Objectives of this study were:

To understand the perception of the customer in Ranchi District with
reference Schwarzkopf products.
To study the different attributes related to a brand, like
o Brand awareness
o Brand loyalty
o Brand association
o Perceived Quality
To observe the level of satisfaction among the customer and salon partners
towards Brand Schwarzkopf.
To understand the attributes a consumer looks for while making decision
regarding hair colour purchase.
To obtain the potential within Ranchi district regarding Schwarzkopf

2. Limitations
This study has to be undergone with a Sample size of 70 Salons of
Ranchi District only. Hence, the interpretations cannot be extended for
the whole Universe.
The scope of the project is limited to the city of Ranchi. So, we cannot
say that the same response will exist throughout India.

 Few of the retailers may not respond well during the course of study
because of several reasons. This may affect the study.
It also has been observed that the beauty care business is a very dynamic
industry. Any major move either by the new company or the existing
companies or changes in style and fashion trend can change the course
of business. Hence, this study will be limited to the time frame for
which this has been conducted.
It also have been analysed that the Industry affects from the seasonal
fluctuations. Hence, during the season of marriage or festive time, these
interpretations may not hold good.
This study need to be interpreted carefully. They can provide clues to the
companys performance. But on their own, they cannot show whether
performance is good or bad. It requires some quantitative information for
an informed analysis to be made.

3. Research Methodology
Sample Size 60 salons of Ranchi District
Sample Unit Professional Salons of Ranchi district
(Mainly Class A and Class B salons)
Sampling Area Ranchi
Sampling Technique - Convenience Sampling.
Exploratory and Descriptive Research Design.
Types of Data: - Primary Data and Secondary Data.
Primary data has been taken in the form of Structured
Questionnaire & Observation, are the two basic methods
used of collecting primary data, which suffices the research
objectives.
Secondary data sources like catalogue of the company,
product range book of the company & various internet sites
such as google, Companys website, research books, and
available related materials can used.

CHAPTER-2
COMPANY PROFILE

Henkel AG & Company is a manufacturing company making various chemical

products including detergents and adhesives, with brands and technologies for
consumer and industrial businesses, headquartered in Dsseldorf.
In 2011, Henkel reinforced its position in the emerging markets, where 42 percent of
its sales are generated and 54 percent of its people employed
Business Areas
The Henkel Company operates in three business areas:
Laundry & Home Care with household cleaning products such as laundry
detergent and dishwashing liquid,
Beauty Care with beauty and oral care products such as shampoo, toothpaste,
hair colorants and shower products, and
Adhesive Technologies with adhesives, sealants and surface treatments for
consumer and industrial purposes.

History
The company was founded in 1876 in Aachen as Henkel & Cie by Fritz Henkel (a 28
year-old merchant who was interested in science) and two more partners. They
marketed his first product, "Universalwaschmittel", a universal detergent based on
silicate.
In 1878, to take advantage of the better transport links and sales opportunities, Henkel
relocated his company to Dsseldorf on the Rhine (its present site). Dsseldorf was the
gateway to the Ruhr region, which became the most important industrial area of the
German Empire from the 19th century onward. That year, the first German brand-name
detergent appeared: Henkel's Bleich-Soda [Bleaching Soda], an affordably-priced
product supplied in sturdy paper bags. Made from water-glass and soda, it was the result
of Fritz Henkel's own research. The soda was obtained from Matthes & Weber in
Duisburg (Henkel bought this company in 1917 and sold it in 1994).
In 1879, Fritz Henkel was entered as the sole owner in the register of companies. Sales
of Henkel's Bleaching Soda increased so rapidly that within just one year the rented
factory on the Schtzenstrae in Dsseldorf was unable to meet the demand. Fritz
Henkel decided to build his own factory with a railway link.
In 1883, to improve liquidity and make better use of the company's travelling sales staff,
Fritz Henkel decided to sell merchandise in addition to his detergents. Sales started in
1884. The range included the colorant ultramarine [laundry bluing agent], gloss starch,
a liquid cleaning agent, and a pomade for cleaning, beef extract, and a hair pomade.
Very soon Henkel developed its international presencein 1886, Henkel opened its

first international sales office in Austria. Carl Pathe had gone to Vienna as a
representative the year before. In 1893, Henkel established its first business links with
England and Italy.
In 1903, Schwarzkopf founded by Hans Schwarzkopf (18741921) launched a powder
shampoo. Persil came in 1907 as the first self-acting laundry detergent.
Henkel has been a family-run business since the beginning. In 1893, Fritz Henkel, Jr.
(18751930) joined the firm as an apprentice. After receiving commercial training he
became his father's right-hand man in commercial matters. He put Henkel's brand-name
product business on a sound footing, developed its already successful advertising still
further and was responsible for the company's field service. On July 25, 1904, he
became a partner in Henkel, which was transformed into a general commercial
partnership. By this time, 110 people were employed at the Holthausen site. On April
25, 1905, Dr. Hugo Henkel (18811952), the youngest son of Fritz Henkel, Sr., joined
the company as a chemist. He was in charge of Chemical Products and Technology.
Over the years, he laid the foundations of systematic research and introduced advanced
Page technologies and new raw materials. In 1908, he became a personally liable partner
in the company.
In 1912, total production in Dsseldorf-Holthausen rose to 49,890 tons. At 19,750 tons,
Persil laundry detergent accounted for 40 percent of this, just five years after its market
launch. The number of employees increased by 89 relative to the previous year,
resulting in a total workforce of 1,024. Around half were female. A first-aid centre was
set up in the plant and a full-time nurse was employed. In the previous year Henkel had
installed ball fields and play areas to encourage exercise during break times. Female
employees could attend the plant's own housekeeping school during the lunch break.
On January 11, 1923, troops from France and Belgium occupied the Rhineland. The
occupation made delivery of adhesives from suppliers used for the packaging of Persil
unreliable. The disruption caused Henkel to internally manufacture adhesives for its
own needs. Henkel found there was a demand for adhesives on the market, and on June
22, 1923, the first adhesive shipment left the plant.
During World War II, foreign civilian slavery workers and prisoners of war were
working for the company. Henkel was part of a large-scale restitution settlement.
On April 16, 1945, American troops occupied Henkel's Dsseldorf site. On June 5, the
British military command in Dsseldorf took over from the Americans. From July 20,
the British military government gradually granted permission for the production of
adhesives, P3 and water-glass by Henkel, and for soaps and detergents as well as shoe
polish by Thompson. In February 1946, Matthes & Weber in Duisburg was given

permission to process available raw materials into soda. On September 20, 1945, five
members of the Henkel family and another seven members of the Management Board
and the Supervisory Board were interned.
In 1949, the launch of Schauma shampoo by Schwarzkopf marked the start of the most
successful German shampoos.
In 1954, Henkel-subsidiary Dreiring launched Fa soap, a new type of toilet soap. From
1970 onward it was joined by a series of Fa deodorants, shower gels and bubble baths,
making Fa one of the best known umbrella brands in the toiletry sector.
Pritt, the world's first glue stick, made its debut in 1969. Over the years, other products
were introduced under this brand, underlining Henkel's importance in the office and
stationery supplies sector. Exports of Pritt began in the same year, eventually making
this Henkel's most widespread global brand. Vernel fabric softener and enzyme-based
bioactive Persil 70 appeared.

1. Brands
Laundry & Home Care
Henkel's most famous brand is Persil, introduced in 1907, the first commercial
"self-activated" laundry detergent, which means a bubbles forming bleach
(sodium perborate) with a soap component (silicate). The abbreviation of the
names of the two main components perborate and silicate compose the product
name.
Other laundry & home care brands include Purex washing powder, Vernel/Silan
fabric softener, Somat/Glist dishwasher tablets and Pril washing-up liquid.
Persil Abaya Shampoo or Persil Black is a liquid detergent that Henkel
introduced to the Saudi Arabian market in 2007 and later to other Gulf
Cooperation Council region markets. The company sells the liquid as a specialist
detergent for abayas, the loose, traditionally-black, robe-like garments worn by
women in many Islamic cultures.

Beauty Care
Schwarzkopf hair care, Schauma shampoo, Fa shower gel and deodorant,
Diadermine skin and body care, Dial shower and hand soap.

The cosmetics company Hans Schwarzkopf GmbH was acquired by Henkel in

1985
Adhesive Technologies
Loctite and LePage as well as UniBond adhesives and sealants, Pritt glue sticks,
Polyseamseal caulk, and Plastic Padding chemicals.

2.

HENKEL India Pvt Ltd.

Henkel Adhesive Technologies India Private Limited is a subsidiary of Henkel AG &

Co. KGaA, Germany. In India Henkel operates in two business units Adhesive
Technologies and Henkel Beauty Care.
Headquartered in Mumbai, Henkel is the market leader in adhesives, sealants and
surface treatments for consumers, craftsmen and industrial applications. Henkel has a
long tradition of a well balanced portfolio of international, regional and local brands.
The adhesive products provide solutions for a whole spectrum from manufacturing
anaerobic adhesives, cyanoacrylate adhesives, silicone sealants, polymer composites,
solvent based, solvent free to cold seal laminating adhesives used in flexible packaging
industry. These are used in diverse segments ranging from electronics, automotive,
manufacturing aerospace to biomedical industries. Well-known brands in India include
Loctite, Teroson, Bonderite and Aquence.
Under Henkel Beauty Care Division, there is Schwarzkopf Professional and Indola
Professional which is part of the Henkel Group, Dusseldorf and one of the leading
suppliers in the hairdressing business worldwide. Based on a professional partnership
with the hairdressers, the focus is to provide innovative concepts and services which
match the needs of international salon businesses. Schwarzkopf Professional is present
in 80 Countries across the world and in India it is fast leading the way in professional
hair care. Leading brands include BC Bonacure, Seah and Oasis.
Henkel offers a multitude of applications and services to satisfy the needs of different
target groups and consumers. Henkel's corporate culture is distinguished by a strong
performance oriented vision that guides the choices and decisions our employees make
every day. Central to our approach is a unique winning culture that is characterized by
a clear commitment to excellent sustainable performance and being the best in a highly
competitive environment.
Henkel Anand India Private Limited, headquartered at Gurgaon is a Joint Venture
Company of Henkel KGaA and Anand Automotive Systems and has Technical License
with Sunrise MSI Corporation Japan. Henkel Teroson India has manufacturing facilities

at Gurgaon, Chennai and Parwanoo. Henkel Anand India Private Limited is TS 16949,
ISO 14001 and OHSAS 18001 Certified Company by DQS of Germany. The company
manufactures and supplies Adhesives, Sealants and NVH Products to all Automotive
OEMs in India
Henkel Chembond Surface Technologies Ltd., established in 1996, is a joint venture
between Henkel KGaA and Chembond Chemicals Ltd. Headquartered in Navi Mumbai,
India, Henkel Chembond operates in the business areas of Metal Treatment Chemicals,
which includes pretreatment chemicals, neutral cleaners, lubricants, and coatings. The
company offers its products to the Indian automotive OEMs and component suppliers,
steel industry, general industry, appliance, construction equipment, and aviation,
defense, and aluminum customers. The renowned brands offered by Henkel Chembond
in the country include Bonderite, Multan, P3, Turco, Autophoretic, Aquence, and
Passerite. Henkel Chembonds manufacturing facilities are located in Tarapur and
Sitarganj with warehouses and offices across the country.

CHAPTER-3
LITERATURE REVIEW

This chapter presents the issues and factors, ideas and opinions, and results of the
research that others have undertaken in the study area. The conceptual framework that
best describes the theory with the relevant variables identified and discusses how they
are related.
Hair colour market in India is driven because
Today the consumer not only needs cover grey hairs but also to look presentable
and stylish and to feel better and has become a fashion statement, especially for
the young and trendy
Rise in affordability, media penetration and increase in fashion consciousness
among both women and men
Availability of products especially the premium brands in the reach of consumers
Recent Consumer Trends
Consumers have started to consider hair as an important part of their personality
and are very keen to maintain them
As their household incomes as well as the disposable incomes continues to grow
they are willing to spend on high-quality hair care products
Brand Image
The associations made by the consumer based on his memory about a brand influences
his perceptions about the brand and these perceptions form the brand image. So, its not
in the technology, features or the product, that the brand image exists but in things like
promotions, users opinions or advertisements (Keller, 1993). According to (Zeithaml,
1988); Richardson, Dick and Jain, 1994, When the evaluation of a product is done by a
consumer before actual purchase, the extrinsic cue which is often used to influence is
the Brand image.
Perceived Value and Quality
The judgment of a consumer on the overall superiority and the excellence but not the
actual or real quality of the product is known as perceived quality (Zeithaml, 1988).
Informational cues influence the beliefs of the consumers and they use these to judge
the products quality and decide on the final purchase based on these influenced beliefs
(Olsan, 1977)
Performance, Conformance, Features, Reliability, Durability, Serviceability, brand
image and aesthetics are the influencers of perceived quality (Gavin, 1987) According
to (Petric, 2002), the products perceived quality can be measured on a 4 dimension
scale with the dimensions being consistency, dependability, superiority and reliability.

To be able to forecast the purchase intentions of a consumer, the most important

indicator would be the perceived value. It is also seen as a significant measure for
getting ahead of the competitors (Zeithaml, 1988)
Purchase Intention
The consumers perceived value affects the purchase intention (Cobb- walgren, Ruble,
& Donthu, 1995). When a consumer is deciding upon purchasing a product, his
decisions are affected by brand image and its influence on perceived value, quality and
risk as (Keller, 1993) (Brown & Dacin, 1997). The risks perceived by a consumer can
be lowered if the brand is able to build a better positive image (Cooper & Schindler,
2008).
The perceived value, if increased for a consumer, it will build positive brand image for
the company and it will be more likely that the consumer will buy the product (Aaker,
Managing most important asset: brand equity, 1992). The probability that a customer
will buy the product is the purchase intention (Aaker, 1991).
A conceptual framework was developed based on the literature review, pilot study and
the experience of the researchers. The framework presented here draws on a brand
equity model proposed by Aaker (Figure 1). The model indicates that brand awareness,
brand loyalty, perceived quality and brand associations create brand equity. The
important contributors of brand association are also included.

Perceived
Quality

Brand
Association

Brand
Equity

Brand
Awareness

Brand Loyalty

Fig 1:- Conceptual Framework of the Brand Equity Model

Source: (Aaker, Managing most important asset: brand equity, 1992)

Players competing in Indian market

Fast growing hair colour market booms India with different National and International
brands. Chocolate, almond, honey, caramel... these all not only flavours of ice-cream
on a dessert menu? Maybe, but they also represent the new, funky shades of hair colour
that have entered the Indian market in the past few years. After LOreal, Godrej and
Revlon, the new player to enter the Indian retail market is German major HenkelSchwarzkopf. Making its India debut in 2003, Schwarzkopf was a salon brand. Now,
the retail brand Henkel has made its way to shop shelves. For the moment, its products
are imported. Today, the total hair colour industry in India is around Rs 650 crore. This
is further divided into two segments. The Rs 450 crore retail segment, which is growing
at a 20 per cent clip annually. According to market research Godrejs market share at
40 per cent, followed by LOreal at 15 per cent and Revlon at 8 per cent. Rest of the
brands make up the remaining 37 per cent. The two big brands in the salon category are
multinationals LOreal and Schwarzkopf. The professional segment encompasses not
only the selling of hair colour products but also the training of stylists at high-end
salons. Industry sources peg Schwarzkopfs share at 24 per cent with LOreal
dominating at 76 per cent. Today, while Godrej is largely mass-based, selling its Colour
Soft and Renew brands at Rs 99 and Rs 65 respectively, both LOreal and Schwarzkopf
straddle different price segments. While LOreals sub-brand Garnier Colour Naturals
carries a tag of Rs 99, its Excellence is priced at Rs 399.
Today, if there are more brands in the Indian market, its largely due to demand. When
hair colours first came to India, more than a decade ago, it was largely to cover grey
hair. But with the increasing number of youth in the country; it has become a fashion
statement, especially with the young and trendy. Hair colours were traditionally aimed
at the 15-45 age female segment. But market research shows that there was a growing
population of 15-45 males which patronised the category in a big way. This is because
of the corporate culture that places an emphasis on young male employees looking smart
and trendy. Thats why all the players have plans to modify existing products, launch
new products and target different geographic segments and age-groups. Godrej is in the
process of developing additional colours in its Colour Soft range. There are plans to
launch an advertising campaign reassuring the public about concerns about the safety
of hair colour. This, say industry sources, is largely to quell the controversies
surrounding the after-effects of Godrej products. The newly launched Henkel is now
testing the waters. After gauging the initial response, there are plans to launch new
variants in the coming months. Meanwhile, it is strengthening its Schwarzkopf salon
brand. It plans to launch Indola at 30 per cent lower than its premium brand Igora
Royale. Lower-end salons in smaller cities. They will also train salon stylists in smaller
cities. Theres also the new Igora Action Paint, a weekend product aimed at teens.
Even LOreal, which is constantly revamping its retail colour palette, is now

concentrating on the high value salon business. Having entered this category in 1997
with the premium Majirel (priced at Rs 210), LOreal is now tapping the mass-based
middle segment. In February, it launched Matrix (Rs 119), the brand acquired from
Bristol Myers five years ago. It is positioned as fun and lively compared to its
sophisticated counterpart. There are plans to penetrate every salon in Mumbai and
Delhi before taking Matrix to second-tier towns. Now a days several National and
international brands in hair colour market are available in India. Many more making
their way, well the market is vast.

CHAPTER-4
DATA ANALYSIS AND
INTERPRETATION

1. Average number of customers footfall per day.

NO. of Customers

No. of salons

Less than 15

19

15 30

23

30 35

11

More than 45

07

More than 45,

7, 12%
30 35, 11,
18%

Less than 15,

19, 32%

12 30, 23,
38%

In the first question it is clear from the collected data that major salons in Ranchi had
around 15-30 customers footfall. And 70% salons had less than 30 customers footfall
2. Have you heard the brand name Schwarzkopf?
Yes
43
17
No
Among the respondents 43 of the
salon known about brand Schwarzkopf and rest of the salons were not aware of the
brand so the brand has less awareness among the retailers.
3. Do you keep Schwarzkopf at your Salon?
Yes
37
23
No
62% retailers said that they are the sellers of Schwarzkopf products and rest 38% of
the salons did not have Schwarzkopf products in their salons

The base for analysis of the following questionnaire are based upon the responses of
the 37 Schwarzkopf products seller.
4. What percentage of customers are aware of the brand Schwarzkopf (SKP)?
Percentage of Customers
Less than 25%

No. of salons
26

25% - 50%

05

50% 75%

06

75% - 100%

00
50% 75%,
6, 16%

75% - 100%,
0, 0%

25% - 50% ,
5, 14%

Less than
25%, 26,
70%

According to most of the salons only 25% of the customers who visit know about the
brand and rest were unaware of the brands who visit their salon. 05 of the salons
responded that around 25%-50% customers are aware of the brand
5. Among the customers what is the percentage of first time users of the
Schwarzkopf product?
Percentage of Customers

No. of salons

Less than 25%

07

25 50

09

50 75

17

75% - 100%

04

75% - 100% ,
4, 11%

Less than
25%, 7, 19%

25 50 , 9,
24%

50 75, 17,
46%

Around 46% of the respondents said that 50% to 75% of the customers are first
time users. So it is clear that many customers are first time users of the products

6. After using Schwarzkopf product what percentage of customers Switch the

brand next time.
Percentage of Customers

No. of salons

Less than 25%

21

25% 50%

12

50% 75%

03

75% - 100%

01

Around 57% of the respondents said that less than 25% customers switch the brand
next time.
7. Who mostly decides about the product that customer is going to use?
Factors

No. of salons

Customer itself

10

Person providing service

26

Someone else

01

Someone
else, 1, 3%

Customer
itself, 10,
27%

Person
providing
service, 26,
70%

From the data collected the response of the salons were that mainly the person
providing the service suggest the customer that which brand and product they
should use and 27% salon said that they decide the product and brand by their
own.
8. How will you rate these factors that a customer consider before selecting a
brand? (Rate on scale of 1-5 where 1 is minimum and 5 is maximum)
Factors

Average Rating

Convenience in usage

2.51

Value for money

2.96

Brand Name

4.35

Product quality

4.19

Natural or organic contents in product

2.74

Brand Promotion

3.22

5
4
3
4.35

2
1

2.51

4.19

2.96

2.74

3.22

0
Convenience in
usage

Value for money

Brand Name

Product quality

Natural or organic Brand Promotion

contents in product

9. Do you suggest Schwarzkopf products to your customers?

Yes
23
14
No
23 salons said that they suggest the product to their customers and 14 said they
dont suggest the product because the customer feel like its a new product and
are unaware of the brand.
10. What are the reasons behind suggesting Schwarzkopf to your costumers?
Reasons

No. of salons

Softness of hair

12

Brand Name

16

Colour retention

09

Value for money

00

18
16
14
12
10
8

6
4
2
0
Softness of hair

Brand Name

Colour retention

Value for money

11. According to you which are the competing brands of Schwarzkopf that you
keep at your salon?

40
35
30
25
20
15
10
5
0
Loreal

Garnier

Matrix

Wella

Brands

No. of salons

Loreal

34

Garnier

11

Matrix

20

Wella

10

Revlon

Streax

13

Revlon

Streax

12. What could be the possible reasons behind preferring the competitive brands
among the non-users of the Schwarzkopf product?
Reasons

No. of salons

Softness of hair

05

Brand name

12

Colour retention

02

Value for money

08

Other reasons

10

14
12

10
8
6
4
2
0
Softness of hair

Brand name

Colour retention

Value for money

Other reasons

13. Do you get an advantage over other by using Schwarzkopf products in your
salon?
Yes
12
25
No
14. Do you think company needs Brand extension?
Yes
11
26
No

Yes, 11, 30%

No, 26, 70%

15. Are customers satisfied with Schwarzkopf?

Yes
35
02
No

16. Are you happy doing business with Schwarzkopf?

Yes
17
20
No

Yes, 17, 46%

No, 20, 54%

17. Do you think Promotional activity of the company attracts the customers?
Yes
12
25
No

Yes, 12, 32%

No, 25, 68%

18. What potential you see in the brand.

Less potential

16

Growing Slowly

18

Growing rapidly

02

Mature

01

00

Declining

20

18

18

16

16
14
12
10
8
6
4

Mature

Declining

Less potential

Growing Slowly

Growing rapidly

The base for analysis of the following questionnaire are based upon the responses of
no-sellers of Schwarzkopf products

1. Who mostly decides about the product that customer is going to use?
Factors

No. of salons

Customer itself

08

Person providing service

13

Someone else

02

14
12
10
8
6
4
2
0
Customer itself

Person providing service

Someone else

2. How will you rate these factors that a customer consider before selecting a
brand? (Rate on scale of 1-5 where 1 is minimum and 5 is maximum)
Factors

Average Rating

Convenience in usage

1.92

Value for money

3.21

Brand Name

3.79

Product quality

4.86

Natural or organic contents in

product

3.14

Brand Promotion

4.23

5
4
3
2
1
0
Convenience in Value for money Brand Name
usage

Product quality

Natural or
organic
contents in
product

Brand
Promotion

4. According to you which are the competing brands of Schwarzkopf that you keep at
your salon?
Brands

No. of salons

Loreal

19

Garnier

15

Matrix

11

Wella

04

Revlon

01

Streax

09

20
18
16
14
12
10
8
6
4
2
0

Loreal

Garnier

Matrix

Wella

Revlon

Streax

3. What could be the possible reasons behind preferring the competitive brands
among the non-users of the Schwarzkopf product?
Reasons

No. of salons

Softness of hair

06

Brand name

09

Colour retention

03

Value for money

01

Other reasons

04

10
9
8
7
6
5
4
3
2
1
0
Softness of hair

Brand name

Colour retention Value for money

Other reasons

Statistical Analysis :Below carried normality test is of the responses collected from the sellers of Schwarzkopf
products
Tests of Normalityb,c
Kolmogorov-Smirnova
Statisti

df

Shapiro-Wilk

Sig.

Statistic

df

Sig.

c
footfall

.259

37

.000

.855

37

.000

Customer Awareness

.428

37

.000

.613

37

.000

First time user

.277

37

.000

.858

37

.000

Switching customers

.338

37

.000

.727

37

.000

Brand Selecting factors

.418

37

.000

.655

37

.000

Convenience in usage

.229

37

.000

.852

37

.000

Value for money

.244

37

.000

.884

37

.001

Brand name

.296

37

.000

.790

37

.000

Colour retention

.224

37

.000

.840

37

.000

Natural content

.203

37

.001

.908

37

.005

Brand promotion

.277

37

.000

.883

37

.001

Suggest Schwarzkopf

.401

37

.000

.616

37

.000

Reason for suggesting

.218

37

.000

.808

37

.000

Loreal

.534

37

.000

.307

37

.000

Garnier

.442

37

.000

.575

37

.000

Matrix

.359

37

.000

.635

37

.000

Wella

.456

37

.000

.556

37

.000

revlon

.526

37

.000

.360

37

.000

streax

.415

37

.000

.605

37

.000

Reason for selecting

.243

37

.000

.847

37

.000

Schwarzkopf Advantage

.428

37

.000

.591

37

.000

Brand extension

.442

37

.000

.575

37

.000

Customer satisfaction

.539

37

.000

.241

37

.000

Salon Partner satisfaction

.359

37

.000

.635

37

.000

Potential

.262

37

.000

.757

37

.000

competitor

a. Lilliefors Significance Correction

b. Salon_awareness is constant. It has been omitted.***
c. Schwarzkopf_Sellers is constant. It has been omitted.***

*** Because the data recorded was constant at a continuous basis

The below carried descriptive analysis is of the responses collected from the sellers of
Schwarzkopf products.
Descriptive Statistics
N

Minimum

Maximu

Mean

m
Statistic

Statistic

Statistic

Std.

Skewness

Kurtosis

Deviation
Statistic

Statistic

Statistic

Std.

Statistic

Std. Error

Error
footfall

37

1.00

4.00

2.1351

.94757

.545

.388

-.462

.759

Customer Awareness

37

1.00

3.00

1.4595

.76720

1.314

.388

.084

.759

First time user

37

1.00

4.00

2.4865

.93159

-.285

.388

-.790

.759

Switching customers

37

1.00

1.00

1.0000

.00000

Brand Selecting factors

37

1.00

1.00

1.0000

.00000

Convenience in usage

37

1.00

4.00

1.5676

.76524

1.333

.388

1.541

.759

Value for money

37

1.00

3.00

1.7568

.49472

-.494

.388

-.111

.759

Brand name

37

1.00

4.00

2.0541

.81466

.224

.388

-.682

.759

Colour retention

37

1.00

5.00

2.9730

.83288

.052

.388

.075

.759

Natural content

37

2.00

5.00

4.2432

.86299

-.781

.388

-.428

.759

Brand promotion

37

2.00

5.00

3.8919

.87508

-.044

.388

-1.161

.759

Suggest Schwarzkopf

37

1.00

5.00

2.9189

1.18740

.270

.388

-.593

.759

Reason for suggesting

37

1.00

6.00

3.1351

1.13437

.687

.388

.052

.759

Loreal

37

.00

1.00

.6216

.49167

-.523

.388

-1.828

.759

Garnier

37

1.00

3.00

1.9189

.75933

.139

.388

-1.209

.759

Matrix

37

.00

1.00

.9189

.27672

-3.201

.388

8.713

.759

Wella

37

.00

1.00

.2973

.46337

.925

.388

-1.213

.759

revlon

37

.00

1.00

.5405

.50523

-.170

.388

-2.087

.759

streax

37

.00

1.00

.2703

.45023

1.079

.388

-.887

.759

Reason for selecting

37

.00

1.00

.1081

.31480

2.632

.388

5.207

.759

37

.00

1.00

.3514

.48398

.649

.388

-1.672

.759

Brand extension

37

1.00

5.00

3.1622

1.48162

-.024

.388

-1.570

.759

Customer satisfaction

37

.00

1.00

.3243

.47458

.783

.388

-1.470

.759

Salon Partner

37

.00

1.00

.2973

.46337

.925

.388

-1.213

.759

Potential

37

1.00

4.00

1.6757

.70923

1.060

.388

1.775

.759

Valid N (listwise)

37

competitor
Schwarzkopf
Advantage

satisfaction

Correlations between different Factors.

The below analysis explains the correlation between the factors which gives the advantage to
a Schwarzkopf sellers and it is found that they are satisfied as well. And these two factors are
highly positively correlated, which means that if one factor increases the other factor also
increases.
Correlations
Schwarzkopf

Salon Partner

Advantage

satisfaction

Pearson Correlation
Schwarzkopf Advantage

Sig. (2-tailed)

.000

N
Pearson Correlation
Salon Partner satisfaction

.794**

Sig. (2-tailed)

37

37

.794**

.000

37

37

**. Correlation is significant at the 0.01 level (2-tailed).

Correlation between advantages salons get in keeping Schwarzkopf, Satisfaction And Brand
potential.
Correlations

Pearson Correlation
Schwarzkopf Advantage

Pearson Correlation
Sig. (2-tailed)
N
Pearson Correlation
Brand Potential

Salon Partner

Brand

Advantage

satisfaction

Potential

.794**

.702**

.000

.000

37

37

37

.794**

.497**

Sig. (2-tailed)
N

Salon Partner satisfaction

Schwarzkopf

Sig. (2-tailed)
N

.000

.002

37

37

37

.702**

.497**

.000

.002

37

37

37

**. Correlation is significant at the 0.01 level (2-tailed).

The above analysis clearly explains that all the three factors are positively related with
correlation values between Advantage they get and Satisfaction as .794 and
Advantage and Brand potential as .702.

Correlation between the reasons for selecting Schwarzkopf and Reasons for selecting
other Brands.
Correlations
Reason for selecting

Reason for

competitor

suggesting
Schwarzkopf

Pearson Correlation
Reason for selecting competitor

Pearson Correlation
Sig. (2-tailed)

-.235
.162

Sig. (2-tailed)
N

Reason for suggesting

37

37

-.235

.162

Schwarzkopf
N

37

37

The above data represents the Correlation between the reasons for selecting
Schwarzkopf and Reasons for selecting other Brands which is -.235 which means that
both the variables are very less negatively related. In common terms these two are not
related and we can interpret that Reasons for selecting the competitor and Schwarzkopf
totally varies either this could be because Schwarzkopf is easily differential from its
competitor or the competitors are having differential qualities which Schwarzkopf is
not having. So now it depends over the market performance of the Brands that which
brand is more efficiently differentiated and enjoys the market share.

CHAPTER-5
FINDINGS
CONCLUSION
SUGGESTION AND RECOMMENDATION

This chapter presents a general discussion on the results on the analysis of the
preceding chapter. The chapter also assesses how far the objectives of the research
have been achieved. Comparison and contrasting of the findings in relation to the
previous findings are also presented.

1. Findings
In 82% of the saloons the average footfall in a day was less than 15 38 % had
15- 30, 18% had 30-35 and 12% had more than 75 customers footfall at their
saloons.
43 of the 60 saloons were aware of the brand.
Among the 43 saloons i.e. 62% who were aware of the brand 37 saloons had
Schwarzkopf product.
Around 70% of the saloons said that less than 25% of the customers bare aware
of the brand.
Around 50% to 75% of the customers of Schwarzkopf were the first time users
of the product which was the response of 46% of the saloons and 24% of saloons
said that 25-50% of the total users were the first time users.
57% of the respondents said that only 25% of the Schwarzkopf users switch the
brand next time.
Mainly the person providing the service influence the customers about the
product he is going to use and almost 70% of the saloons had same respond. Only
27% of saloons said that the customer itself decide the product they will use.
On the scale of 5 where the 1 is minimum and 5 is maximum, brand name and
labour retention were the factors that were rated high and it explains that these
are the most important factors customers consider before selecting a product.
23 of 37 Schwarzkopf sellers said that they suggest the Schwarzkopf product to
their customers due to their brand name and softness they provide to hairs.
Loreal were the brand which were available in most of the saloons and is
considered as a competitor for Schwarzkopf.
Competitors of Schwarzkopf are mostly considered because of the brand name
and some other reasons like market demand.
12 of the 37 sellers think they get the advantage over other saloons by keeping
Schwarzkopf.
26 of respondents out of 37 said that company doesnt need brand extension.
35 of the respondents feel that customers are satisfied using Schwarzkopf
products and 17 of them were also happy doing business with Schwarzkopf.
Schwarzkopf promotional activities does not attract the customers very much.

 Many of the customers believe that the brand is growing slowly and some
believes that the brand has less potential while very little of the saloons said that
the brand growing rapidly and some of the respondents said that the brand is
declining.
There is high positive correlation between the advantage of keeping
Schwarzkopf products and the saloon partner satisfaction which is valued as .794
Strong positive correlation was also observed between brand potential and
advantage in keeping Schwarzkopf
There was no correlation between the reason for selecting competitor and
Schwarzkopf.
There was no correlation between the reasons for selecting Schwarzkopf and
Reasons for selecting other Brands which is -.235 which means that both the
variables are very less negatively related

2. Conclusion
From the above study it was concluded that the beauty care industry the
companies offering products is needed to be most competitive and innovative to
survive in this market. From the study it was concluded that the beauty care
sector is the fast growing business and is the most competitive and innovative
market. It has also been observed that the industry is dynamic and the trends in
beauty care industry changes very fast.
The research study explores the brand with attributes like brand awareness,
quality, perception & association, and loyalty of the Salon partners and the
customer. From the study it can be concluded that the brand awareness of the
Schwarzkopf brand is quite low in the Ranchi district as it doesnt carry out any
major promotional activity through which the awareness can be spread to the
market.
The users or customers who use the Schwarzkopf product are satisfied and only
25% of the total customers switch the brand next time. So a high level of loyalty
has been observed among the customers. The salon partners show almost same
behaviour with the product as their satisfaction level is high. Some of the retailers
discontinued the product just because they had some issues regarding the timely
delivery of the products.
Proper training of employees also plays an important role in the professional hair
care market because skills of the person providing service and the quality of
product results in the end satisfaction of the customers. If the experience of
customer is enriched with the high level of treatment from the person providing
the service then they will be delighted and will show loyalty to the salon and
product as well. So it is very important for a company to observe the proper
training and development of the employees at professional salons. Schwarzkopf
is not able to tackle the training part and many of the salon said that they are
losing market share due to that so the company must focus over this part.
The statistics also convey that there is a high level of correlation between the
Satisfaction levels if they get an advantage of keeping the product into their
salons. So company must try to satisfy the salon partners to increase the brand
equity.
A positive correlation was also observed in the brand potential and satisfaction.

3. Suggestion and Recommendation

The following are the suggestion and recommendation given to Schwarzkopf on the
basis of the studies.

We recommend that as the competitors are advertising aggressively

Schwarzkopf must also try to spread awareness in the city.
Lots of the A grade salons who has the potential customers for the product are
not using the product as there is no communication between the company and
the salons so they should try to reduce the communication gap and penetrate
to the markets like Kanke road, Hinoo and HB road & Kantatoli.
Proper training program should be organised as to increase the satisfaction
level among the salon partners and the customers experience.
High level of loyalty has been observed in the customers so company must try
to sustain and increase the loyalty further.
Level of satisfaction among the salon partners were high but it can also be
increased further by developing proper communication channel among them
as they responded during the research that they dont have a proper
communication with the company
The company changes the product name very frequently and this creates a
chaos in the market as they collapse before the customer gets aware of them
and again the company comes with a different product names and again they
has to work over to create and spread awareness so this should be managed
properly.
Schwarzkopf products are preferred due to their product quality and is a
famous brand across world. So the company must try to increase their Market
share leveraging the advantages of these.

ANNEXURE
Bibliography
(2015, July). Retrieved from statistica.com:
http://www.statista.com/statistics/254608/global-hair-care-market-size/
(2015, August). Retrieved from Wikipedia:
https://en.wikipedia.org/wiki/Pepperfry#Business_model
Aaker, D. A. (1991). Managing Brand equity. New York: The Free Press.
Aaker, D. A. (1992). In Managing most important asset: brand equity (pp. 56-58). Planning
review 20(5).
Brown, T. J., & Dacin, P. A. (1997). In The company and the product. Journal of marketing.
Cobb- walgren, C. J., Ruble, C. A., & Donthu, N. (1995). Brand equity, brand preference and
purchase intent. Advertising, 25-40.
Cooper, D., & Schindler. (2008). Business research methods. New Delhi: Tata McGraw Hill
publishing company Ltd.
Farqwhar, P. (1989). Managing Brand equity. Marketing Research, 24-33.
Gavin. (1987).
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Nunnally, J. (1978). Psychometric theory. New York: McGraw hill.
Olsan. (1977).
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Zeithaml, A. V. (1988). Consumer perceptions of Price, Quality, and Value. American Marketing
Association.

Questionnaire
Please find few minutes to fill the following questionnaire. It has been designed only for the
purpose of Study and no data given by you would be published by your name. Thank you so
much for your co-operation.

Salon Profile
Name of salon:-

Phone no:-

Address:

Manpower:Educational qualifications:-

1. Average number of customers footfall per day.

a) Less than 30
b) 30 60

c) 60 90
d) More than 90

2. What percentage of customers are aware of the brand Schwarzkopf (SKP)?

a) Less than 25%
b) 25% - 50 %

c) 50% - 75%
d) 75% - 100%

3. Among the customers what is the percentage of first time users of the Schwarzkopf
product?
a) Less than 25%
b) 25% - 50 %

c) 50% - 75%
d) 75% - 100%

4. After using Schwarzkopf product what percentage of customers Switch the brand next time.
a) Less than 25%
b) 25% - 50 %

c) 50% - 75%
d) 75% - 100%

5. Who mostly decides about the product that customer is going to use?
a) Customers itself
b) Person providing Service

c) Someone else

6. How will you rate these factors that a customer consider before selecting a brand? (Rate on
scale of 1-5 where 1 is minimum and 5 is maximum)
a) Convenience in Usage
b) Value for money
c) Brand Name

d) Natural content in the product

e) Colour retention
f) Brand Promotion

7. Do you suggest Schwarzkopf products to your customers?

a) Yes
b) No

8. What are the reasons behind suggesting Schwarzkopf to your costumers?

a) Softness of hair
b) Brand name
c) Colour retention

d) Value for money

e) Some other reason

9. According to you which are the competing brands of Schwarzkopf that you keep at your
salon?
a) Loreal
b) Garnier
c) Wella

d) Revlon
e) Streax
f) Matrix

10. What could be the possible reasons behind preferring the competitive brands among the
non-users of the Schwarzkopf product?
a) Softness of hair
b) Brand Name
c) Colour retention

d) Value for money

e) Some other reason

11. Do you get an advantage over other by using Schwarzkopf products in your salon?
a) Yes

b) No

12. Do you think company needs Brand extension?

a) Yes

b) No

13. Are customers satisfied with Schwarzkopf?

a) Yes

b) No

14. Are you happy doing business with Schwarzkopf?

a) Yes

b) No

15. Do you think Promotional activity of the company attracts the customers?
a) Yes
b) No

16. What potential you see in the brand.

a) Less potential
b) Growing slowly
c) Growing rapidly
d) Mature
e) Declining