Cosmetics have a very long period of use.

The companies involved have a tremendous

knowledge of what works and doesn't work just from experience. Once they show
somewhere that something works, then everyone jumps on the bandwagon.

Cosmetics are substances used to enhance the appearance or odor of the human body.
Cosmetics include skin-care creams, lotions, powders, perfumes, lipsticks, fingernail and
toe nail polish, eye and facial makeup, permanent waves, colored contact
lenses,hair colors, hair sprays [3] and gels, deodorants, baby products, bath oils, bubble
baths, bath salts, butters and many other types of products.

CosmeticIndustry is a place for people who love cosmetics - for

professionals in the industry, for consumers who use cosmetics, for those who
dream about having their own company.

CosmeticIndustry will keep you up to date on new products, promotions,

competition and even what is being said about products.

Do you sell anything?

No, only a professional service to you and your guests, also because I am independent
I can give you totally unbiased advice.
What is provided?
Everything, except the novices I provide everything else necessary in makeup, all
materials, and your party is done for you, even the cleaning up. (Maybe you could
provide some nibbles for your guests (and me))
How long does a party last?
This is a hard one. It all depends on which party you have chosen. I have been doing
classes and parties for some time now and have NEVER finished on time. (I enjoy it
as much as the girls) I allow enough time for the girls to enjoy themselves and finish
what we are doing. Also we are usually having a ball so time kind of gets away from
me. (Must make note to get stricter)
The research process involves a number of inter related activities and should
remember
that the various steps involved in research process are not mutually
exclusives nor they
are separate and distinct.
For this search in used the descriptive research design. At this stage the
researcher build
some idea about sampling methods, source of data and method of data
collection.

Research can be defined to be search for knowledge or any systematic investigation to

establish facts. The primary purpose for applied research (as opposed to basic research)
is discovering, interpreting, and thedevelopment of methods and systems for the advancement
of human knowledge on a wide variety ofscientific matters of our world and the universe.
Research can use the scientific method, but need not do so.

The goal of the research process is to produce new knowledge, which takes three main forms
(although, as previously discussed, the boundaries between them may be fuzzy):

 Exploratory research, which structures and identifies new problems

 Constructive research, which develops solutions to a problem

 Empirical research, which tests the feasibility of a solution using empirical evidence

The research room at the New York Public Library, an example ofsecondary research in progress.

Research can also fall into two distinct types:

 Primary research

 Secondary research

In social sciences and later in other disciplines, the following two research methods can be
applied, depending on the properties of the subject matter and on the objective of the research:

 Qualitative research
 Quantitative research

Research is often conducted using the hourglass model Structure of Research[1]. The hourglass
model starts with a broad spectrum for research, focusing in on the required information through
the methodology of the project (like the neck of the hourglass), then expands the research in the
form of discussion and results.

Event Profile
In-Cosmetics India 2009 is a leading event dedicated to personal care and homecare products. It
will provide an excellent opportunity to the exhibitors to launch new products. In-Cosmetics India
2009 will be a superb platform for making business relations and sharing new ideas. The event
will give a golden chance to enhance knowledge on future market changes as well as to create
accurate strategies for the development of this emerging sector.

Visitor Profile
The targeted visitors at In-Cosmetics India 2009 are:
Importers, Distributors, Retailers and Traders related to beauty industry.

Exhibitor Profile
The targeted exhibitors at In-Cosmetics India 2009 are companies/firms dealing in:
Perfumes, Skin Care, Cosmetics, Hair Care, Toiletries, Salon, Spa Products and Equipment, Raw
Materials, Packaging, Private Label Products, etc.

RAHN-Facts

Founded 1940
Headquarters RAHN AG, Switzerland
Subsidiaries RAHN GmbH, Germany
RAHN UK Ltd., England
RAHN USA Corp., USA
RadLab AG, Switzerland (Joint Venture)
Activities 42 countries
Quality Certification ISO 9001/2000

Business units

- EnergyCuring Worldwide active supplier of additives, oligomers, reactiv diluents, photoinitiators

 for the energy curing industry
- Cosmetics We solve your problems with the development of successfull cosmetic products
with our active substances and further specialities combined with our unique
consulting
Cosmetic Careers
A professional make-up artist servicing a client

An account executive is responsible for visiting all department and specialty store counter sales and
doors. They explain new products and "gifts with purchase" (free items given out upon purchase of a
certain cosmetics item that costs more than a set amount).

A Beauty Advisor provides product advice based on the client's skin care and makeup
requirements. Beauty Adviors can become certified throgh the Anti-Aging Beauty Institute.

A cosmetician is a professional who provides facial and body treatments for clients. The
termcosmetologist is sometimes used interchangeably with this term, but most commonly refers to a
certified professional. A freelance makeup artist provides clients with beauty advice and cosmetics
assistance—usually paid by the cosmetic company by the hour.

Professionals in cosmetics marketing careers manage research focus groups, promote the desired brand
image, and provide other marketing services (sales forecasting, allocation to different retailers, etc.).

Those involved in cosmetics product development design, create and refine cosmetics products. Some
positions that fall under this category include chemists, quality assurance and packaging people

Scope of the cosmetic industry

The study analyses the purchase patterns and spending styles of

people belonging to different
segments of Cosmetic consumers in Kerala. The major variables
selected for the study are as
follows:

Demographic Profile of Consumers

Area- Wise (Urban & Sub Urban), Gender Wise (Male & Female), Age
Wise, Monthly Income
Education, Qualification and Occupational status.

Major Factors identified for detailed study includes

Purchase Style, Brand Selection, Point of Purchase, Location

Preference
Brand Loyalty, Brand Awareness, Factors in Purchase Decision,
and Spending Pattern.
Relevance of the Study

The state of Kerala is known for its consumerism. The present

study will be helpful in
understanding the customer attitude of the different strata of
people in the Kerala society. The
classification of the different strata of the people are area
wise, gender wise, occupational, income
wise etc. The study will also be helpful in analyzing the
customer attitude towards the different
factors identified after the focus group discussions. It will
also help in studying the effect of
cosmetic purchase on the society specifically among the segments
under consideration.

International Marketing Conference on Marketing & Society, 8-10

April, 2007, IIMK

Part VI – Consumer Markets & Marketing

Research Methodology

This study was carried out in two stages.

Stage 1: This stage of the research was exploratory in nature.

This was done in two phases. The
initial phase was to undertake detailed secondary search about
cosmetic industry in India,
its characteristics, major players in the market, market
segmentation and purchase
patterns. It was followed by a set of focus group discussions
among cosmetic costumers
to assess the consumer preferences, perceptions, cosmetic use
and purchase patterns. The
from this exploratory search was the basis for preparing the
interview schedule for the
next stage.

Stage 2: A descriptive research was carried out at the second

stage by applying a survey method.
Data for the study were collected from cosmetic shops belonging
to the three main cities
in Kerala viz. Thiruvananthapuram, Ernakulam and Kozhikode. The
tool used for data
collection is an interview schedule, which covered the
demographic profile of consumers,
details about purchase patterns, and various factors considered
for buying cosmetics. The
consumers were interviewed at the leading cosmetic shops and
convenient sampling was
applied to select samples. The sample size for the study is 300.

Price & Indian Cosmetic Consumers

There is high maturity and price competition in established mass market

toiletries such as bar
soap and toothpaste. Since the average Indian household continues to be
highly price sensitive,
these popular mass-market products will have the lion’s share of cosmetics
and toiletries sales.
This will offer high growth prospects of the overall market over the coming
years. The cosmetics
and toiletries market are also facing competition from other consumer
durables (computers,
mobile phones, home theatres and automobiles) as well as the housing sector.
The drop in interest
rates has led to a boom in housing loans and real estate purchases. Being
value conscious, there is
a limit to the amount that the average consumer will spend on luxury items
such as fragrances.

Urban & Rural Cosmetic Consumers

India's spending on cosmetics and toiletries is relatively small, with rural

and suburban areas
concentrating on basic toiletries and cosmetics. The purchasing power of
Indian consumers is
increasing thereby shaping the aspirations and lifestyles of consumers, who
are upgrading to good
value products at affordable prices. The Cosmetic Companies have invested
heavily on promoting
product visibility among rural folk, which has increased the demand for bar
soap, talcum powder,
lipstick, tooth powder and hair oil in these areas. This has also increased
the demand for essential
everyday items like bath and shower products, hair care, oral hygiene and
skin care. Another
strategy followed by companies to promote cosmetics in rural areas was
sachets’ approach.
While rural India contributed to growth in volume terms, the urban population
contributed 69 %
of value sales in 2005 especially for sophisticated products. These high-
quality added-value niche
products include mascara, toners, body wash/shower gel, depilatories, sun
care and deodorants,
amongst others which are unaware to the rural users. Sales are almost
completely generated from
the urban pockets, concentrated within the key metropolitan areas of New
Delhi, Chennai,
Mumbai and Calcutta. Due to Western influences, men's grooming products are
used more
predominantly in urban population compared to their counterparts in rural
areas.

Income Households

Cosmetics and toiletries have witnessed a growing demand from the low and
lower middle-
income households. The premium labels are being used in urban areas, whereas
regional and
national brands in the rural areas, where close to 70% of the Indian
population resides and price
determines purchasing decisions.

Indian Men & Women Cosmetic Users

Both male and female consumers form a major segment of buyers of beauty
products in India.
(Monteiro, 2003). Indian women are becoming increasingly more beauty
conscious. Reports of
Consumer Graphics revealed that in 2003, Indian women aged 15-24 years
accounted for 29.8%
of all Indian makeup sales
(http://www.cosmeticsandtoiletries.com/onlineexclusives/1689497.html). The
increased
purchasing ability of women households helped them to spend more on personal
grooming.
Colour cosmetics emerged as the fastest growing area of the cosmetics and
toiletries market over
the review period. Experimentation among teen and young adult Indian women
was one reason
cited for the increase in makeup use. According to Monteiro (2003), there is
a tremendous
increase in the female cosmetic consumers. This is due to increasing number
of women becoming
the earning members of the family due to their increased level of literacy
and growing influence
of the media
More males in India are becoming conscious about the way they look and are
increasingly
looking to grooming products to spruce up their physical appearance. This
newfound male
grooming consciousness was encouraged by men's active participation in
prominent fashion
shows, such as the popular Fashion TV channel, and in beauty pageants
exclusively for men

Specific Objectives

1) To describe the demographic profile of cosmetic consumers.

2) To study the style of purchase of cosmetics.

3) To assess how brand influences the purchasing pattern.

4) To analyze the different factors involved in purchase decision of
cosmetics.

5) To study the spending pattern of cosmetic consumers and its influence on society.

Primary objective:

The primary objective of project is : ‘The research work of analyzing the

parameters considered by customers while purchasing particular brand of
cosmetic.
e

.
Secondary objective:

.
To find out brnd awareness of various brands of cosmetic.
this store.
.
To study consumer behavior buying pattern.
.
To find out customer satisfaction level about cosmetic products in this
store.
.
To study the buying of consumer financial schemes in this store.
.
To find out improvements in terms of promotional to

Consumer Markets & Marketing

1.6 About 83 per cent of the teenagers, 55 per cent each of youth and upper
middle aged
consumers purchased cosmetics individually. Forty per cent of the middle aged
respondents did
their cosmetic purchase with the help of their spouses. The results of the
Chi-square test (at 1 per
cent level of significance) substantiates that there is a significant
association between mode of
purchase and age of the respondents. Pearson’s Chi-square value is 32.04 for
9 degrees of
freedom.
2. Brand Selection
Fifty eight per cent of the respondents selected the specific brands of
cosmetics individually by
themselves. Around 22 per cent of the respondents entrusted the brand
selection to their spouse.
About 18 per cent of the respondents did the brand selection together with
their spouses.

2.1 The percentage of respondents who selected the brands by themselves is

slightly high among
females (61.3) compared to those among the males (56). Selecting the brand
exclusively by the
spouses or together by both the spouses seems to be enjoyed by the men
compared to women.
2.2 A good number of respondents belonging to all occupational categories
purchased cosmetics
individually. Spouses were involved in the purchase for 37 per cent of the
teachers, 30 per cent of
executives, 29 per cent of housewives, and 23 per cent of businessmen. Both
the spouses together
did the cosmetic purchase in the case of 30 per cent of government employees
and 23 per cent of
the professionals.
2.3 About 64 per cent of respondents belongs to the upper income group, 60
per cent of those in
the lower income group and 52 per cent in the middle income group selected
their brands of
cosmetics individually by themselves. More than a quarter of those in the
middle income group
respondents involved their spouses for selecting the brands while only a
smaller percentage (less
than 15) among other income categories did so.
2.4 Around 58.3% of the respondents living in urban areas and 58.6% of the
respondents who live
in the sub-urban regions select their brand themselves.
2.5 All the respondents irrespective of their qualifications select the brand
of products themselves
when they go for shopping cosmetic products
2.6 Eighty eight per cent of the teenagers did their brand selection
individually. The
corresponding percentages among other age groups are youth (63.8 %), upper
middle aged (52%)
and middle aged (46%). Spouses were involved in the brand selection for 36
per cent of those in
the upper middle aged category, 26 per cent of the middle aged group. Both
the spouses were
involved in the case of 28 per cent of the middle aged respondents. Chi-
square test substantiates
that there is significant association between brand selection and age of the
respondents at 1 per
cent level of significance. Pearson chi-square value is 41.709 for 9 degrees
of freedom.
3. Point of Purchase
There is no specific shop of preference for 62 per cent of the respondents in
purchasing
cosmetics. But 38 per cent of the total respondents purchased it from a particular shop.
Gender

Male Consumers

Male consumers generally prefer to purchase and make the brand selection of
cosmetics
individually. Quality is the major factor influencing the purchase decision
of male consumers.
They tend to buy cosmetic items from a single shop of their convenience. It
is also observed that
male consumers buy all their cosmetic items from one shop.

Female Consumers

It has been observed from the study that female cosmetic consumers prefer to
purchase cosmetics
individually. It also reveals that one of the main sources of information
among the females about
different brands of cosmetics is friends group. Even though friends play a
very important role in
women cosmetic purchases, the specific brand selection is most of the times
done individually.
Women consumers tend to buy cosmetic items from any shop of their convenience
rather than a
single shop. They buy all their cosmetic items from different shops rather
than a single shop.
Quality is given utmost preference by the women consumers and they tend to
spend Rs.101- 300
per month on cosmetics.
Male consumers tend to spend more on cosmetics i.e. Rs. 301- 500 per month
when compared to
females. The findings of Barson (2004) suggest that men’s spending on
cosmetics is increasing
and that is mainly due to the demand for men’s hair care, deodorants, razors
and blades.

ACKNOWLEDGEMENT

I undersigned VIKAS BADAMI have taken very sincerely and heartily an

opportunity to
express my feeling of gratitude toward the ICFAI National College.

I am highly in debited and grateful to Mrs. MEGHNA DANGI, the Director of

ICFAI National
College for arranging exposure to the interim project report.

I would also thankful to my professor Mrs. SHITAL PADHIYAR, who has guided me
during
the whole management thesis. He sincerely deserves an appreciation for his
guidance and
mentorship. I also great fully acknowledge all the faculty member of ICFAI
National College for
providing me direct or indirect aid.
It gives me an immense pleasure to convey my profound gratitude & sincere
thanks to my
mentor Mr. IRFAN SHEIKH, employee of Dhiraj Fashion World, athwagate, Surat
for
authentic interest & providing us valuable guidance in my management thesis.

Last but not least I would also thank my parents and friend circle for their
continuous
encouragement and moral support during the research project and other people
who helped me in
preparing this report, directly and indirectly.

LAKME
Lakme is a product range that caters to the beautification needs of not only
women in their adult
age but in today's context teenagers also. It has a brand personality of
someone who takes care of
you and your beauty needs. It tries to position itself amongst its consumers
as a product range
that will help them look beautiful as is evident from its catchphrases:

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

1.
Lakme Hair Color: magic of colors (collage).
2.
Lakme (versatile eye shadow collection): rich, long lasting and healthy make
up.
3.
Lakme fair perfect: For flawlessly fair skin!
4.
Lakme face magic: daily wear soufflé.
5.
Lakme (skin vitalizer): radiant skin, now and forever.
6.
Lakme (moisturizer): radiant skin, now and forever.
7.
Lakme nail polish and lipstick: electric brilliance/sensual brilliance/free
spirit/peppermint/9 to 52.
8.
Lakme sun expert (sunscreen): sun safe hamesha! (face the sun with a smile)
9.
Lakme pure defense: anti-pollution system.
10. Lakme Tropical Island (cosmetics): defining the future of fashion.
11.Lakme hair care (international): natural hair care, a source of pleasure
and well being.

HOW LAKME IS INFLUENCING ITS CONSUMERS:

THE CONCEPT OF EGO:

•
According to Freudian Psychoanalytic theory Lakme tries to position itself on
the basis of
its appeal to the consumers which have an ego. This means that the consumers
of Lakme
have an impulsive drive for which they seek immediate satisfaction without
concern for
means of satisfaction3.
•
Women all over the world are always expected to look good and Indian women
are no
exception; More so because of the fact that Indian women in general do not
have a fair
skin like that of their western counterparts. Thus it becomes but natural for
Indian women
to try and look good and use beauty products that help enhance their looks
and style. With
globalization and liberalization of Indian economy and the changing
demographics and
income levels there is more and more concern to look good as today's Indian
woman is no
longer confined to her home but is a big contributor to the growth of Indian
economy.
THE CONCEPT OF PERSONALITY GROUPS:

•
Lakme tries to woo the compliant consumers according to Karen Horney's
classification4
of personality groups i.e. people who move towards others. Those who have
desire to be
loved, wanted and appreciated. As is earlier stated women are supposed to
look good not
only in western countries but also in India.
•
Women always appreciate if someone calls them beautiful and it has become the
custom
of the society to see women in such a context. So it would be prudent to say
that
according to the societal norms a women has to look good at all times and
which has a
bearing on the psychology of female consumers towards cosmetic products which
help
them achieve that desired look. Needless to say that Lakme plays on the
concept of
women wanting themselves to be appreciated for their beauty and being loved
for that.
3 L.L.Kanuk, Leon.G.Schiffman; Consumer Behavior 9th edition.

4 L.L.Kanuk, Leon.G.Schiffman; Consumer Behavior 9th edition.

CONCEPT OF PERCEPTUAL SELECTION:

On the basis of perceptual selection Lakme has tried to position itself among
its consumers in the
following ways:

•
Lakme has tried to gain the attention of its consumers by line extension and
having more
and more product depth, packaging and attractive print advertisements. If we
look at the
line extensions of Lakme than we would observe that it is in almost all the
segments of
cosmetic care ranging from hair care to skin care to beauty salons! Looking
at the product
depth it is pretty evident that Lakme has actually tried to fill in all areas
that it can,
particularly the nail paint and the lip color segment is a big hit among
Indian women as it
offers them a wide variety of products in terms of colors as well as various
styles that
they can choose from.
•
It was the first cosmetic brand in India that captured the imagination of
consumers. It had
a market share of 52%5 at one time as the consumers didn't have many choices
but as the
foreign brands came in, it lost its Numero Uno position. This was primarily
due to the
fact that consumers now had easy access to high quality products and with
rising
disposable income and size of the Indian middle class consumers shifted their
attention to
foreign players.