DISSERTATION REPORT

On

Comparative study of customer satisfaction of Lakme and

Maybelline in Ratlam City”

By
RISHITA BHATT

Under the Supervision of

Dr. Swapnil Moyal

Master of Business Administration

At
AMITY Global BUSINESS SCHOOL, INDORE (M.P)

i
 DECLARATION

Title of Research Paper: “Comparative study of customer satisfaction of Lakme and

Maybelline in Ratlam City”

I Declare
(a) that the work presented for inspection in the dissertation is mine, not previously
submitted for review and that my credit (of words, data, arguments and ideas) has
been duly approved.

(b) that the work complies with the presentation guidelines and the style prescribed in
the relevant documents.

Date:

ii
 TABLE OF CONTENT
1) Acknowledgment…………………………………………………………..…………. iv

2) Executive summary……………………………………………………………………. v

3) Chapter One-Introduction……………………………………………………………...vi

i) Similarities Between Maybelline and Lakme

ii) Maybelline and Lakme – Origin

iii) The Evolution of the Maybelline and Lakme Brand

iv) Maybelline and Lakme - Great Influences

v) Differences in Marketing Strategy

4)Chapter Two-Review of Literature……………………………………………………….x

5)Chapter Three- Research Methodology…………………………………………………. xi

i) Objectives of Study

ii)Buying Choice of Consumer for Cosmetics

iii)Preferences of Consumer Changes with Time

iv) Data Collection

v)Sampling Data Collection

6)Chapter Four- Data Analysis & Interpretation……………………..……………………xiv

7)Chapter Five-Conclusions………………………………………………………………xxiii

8) Chapter Six-Suggestions and Recommendations………………..……………………. xxiv

9)Chapter Seven- Limitations of the study…………………………………………………xxv

10) References………………………………………………………………………..…...xxvi

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 Acknowledgement

This study project has taught me a valuable lesson, and I am grateful to everyone who
has led me along the way, since this project would not have been possible without
their help and support.

Dr Rajeev Samuel, Director- Amity International School of Business, Indore, Amity

University, Uttar Pradesh, and my mentor, Dr Swapnil Moyal, for their continuing
guidance, wonderful support, and valuable encouragement.

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 Executive Summary

In the past, India's cosmetics business, which includes areas such as healthy skin, hair
care, and cosmetic product design, has surpassed automobile markets. Improved
energy efficiency and an increase in consumer perceptions of cures while gaining a
deeper understanding are driving an unmanageable growth in the Indian cosmetics
sector. According to marketing analysts, India's cosmetics sector has risen fast in
recent years, reaching a CAGR (Compound Annual Growth Rate) of roughly 7.5
percent between 2006 and 2008. The beauty care sector will be required to retain its
development capacity between 2009 and 2012 by boosting purchasing power and
expanding style awareness, with a CAGR of roughly 7% projected. The average cost
of beauty care goods to people in India is much lower than in other parts of the world.
This suggests that the Indian cosmetics industry has a much more significant
development potential in the future than ever before. As shown by Bonafide's recently
published report asking about "India Corrective Market Outlook, 2021", the index in
India was growing at a CAGR of 17.06% in recent years. Urban India stimulates the
market, with more than a quarter of a quarter of the volume adjustment. Many local
and international organizations are currently focusing on rustic markets to promote
price deals in classrooms such as lips, hair and nails, and other healthy skin items. The
refinement and splendour segment are currently experiencing unusual changes such as
the world's most expensive fast-selling items. This means that the Indian cosmetics
business has far greater growth potential in the future than it has in the past.
According to a recent analysis by Bonafide titled "India Corrective Market Outlook,
2021," the index in India has grown at a CAGR of 17.06 percent over the last few
years. With more than a quarter of the volume adjustment, urban India boosts the
market. Many local and international organisations are currently working on rural
markets in order to promote price discounts in schools for items such as lips, hair, and
nails, as well as other healthy skin products. The world's most expensive fast-selling
items are currently being sold in the refinement and splendour area, which is
undergoing remarkable adjustments.

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 Chapter One: Introduction

One of the most contentious issues among cosmetics shoppers, particularly Indians, is
the debate between Maybelline and Lakme. It's logical because the two companies
share a lot of similarities, allowing the viewer to decide which product is the greatest.

Similarities Between Maybelline and Lakme

There's a lot to choose from in Indian stores, Maybelline and Lakme are both easily
available. They have shops in major cities as well as smaller towns. When you go to a
store or shop, you'll see Maybelline and Lakme goods side by side. This is why it is
critical for customers to identify which style best suits them before going into a
beauty store. You may be perplexed by the variety of choices offered. Both product
mascaras, such as Iconic and Colossal kajal’s, are examples. Although Maybelline's
Colossal Kajal is black, it is comparable to other hues of Iconic Kajal.

Customers may get similar products from Maybelline and Lakme. This makes it
extremely difficult for consumers to select between the two products they want. There
is fierce competition amongst items, and it is safe to assume that there is fierce
competition in the cosmetics industry.

Maybelline and Lakme - Origin

Tom Lyle Williams, the founder of Maybelline, is an American. This continued until
the ownership of the property was transferred. Maybelline offers a solid product
assortment of around 200 items. The company is concentrating on developing new
makeup kits in a variety of colours. So, in the Maybelline variety, you can acquire a
pop of your magical hue. Its headquarters are in central New York, but it has
expanded to 125 countries throughout the world.
Lakme was established in 1952, and Maybelline was established in 1915. This means
that before Hindustan Unilever bought Lakme, Maybelline was already on the market.
Pushkaraj Shenai, on the other hand, is a business specialist who is well-versed in

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marketing methods. After its ownership was transferred to L’Oréal USA in 1996,
Maybelline saw substantial growth. Both products have won numerous honours for
their outstanding makeup.

The Evolution of the Maybelline and Lakme Brand

It seems insufficient to analyse the origins of Maybelline vs. Lakme without

addressing how each of these goods came to be years ago. Maybelline has expanded
as a result of partnerships with businesses all around the world. In January 2019, the
corporation collaborated with a German fashion house to create a limited edition of
the Maybelline X Puma. Five products are included in the limited collection, which
garnered more applications than the firm anticipated. Adriana Lima, a senior
promoter, also serves as a global ambassador for the firm.

Lakme created high-end platforms across India, acknowledging that it began as a

product based on overseas brands. The economy of India slowed after independence.
Despite this, the cosmetics industry managed to stay afloat. The middle and higher
classes relied on foreign cosmetics at the time, prompting the Indian Prime Minister to
establish a cosmetics centre. Laxmi, the goddess of beauty, inspired the country's
name. Lakme, on the other hand, encountered some difficulties in reaching all of
India's cities.

It was believed that only immoral ladies were supposed to wear black eyes and red
lips. As a result, the company needed a great marketing approach to improve people's
perceptions of women who wear cosmetics. Simone Naval Taya then used exotic
cosmetics and beautiful attire to symbolise the product and track its progress.
Following that, Lakme was greeted with an easy-to-understand marketing strategy
and accessibility. This product has had a significant impact in educating Indians about
the necessity of maintaining one's health and appearance. Lakme managed to push the
boundaries in the face of well-known Bollywood actors.

Maybelline and Lakme - Great Influences

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Similar marketing campaigns are used by Maybelline and Lakme, as well as other
beauty companies. The employment of the powerful and well-known is part of this
technique. Their choice of influences, on the other hand, differs from both items.
Shraddha Kapoor was featured in the latest Lakme lip balm campaign, and Alia Bhatt
was used by Maybelline as the major Bollywood advocate. Both actors had the same
simple impact with lip balms. After some thought, cosmetic experts have concluded
that both products favour influencers such as lip balm.

In 1916, Maybelline launched its first advertising campaign in Photo play magazine.
It was also published in Pictorial Review and Like Delineator. In addition, the
company has a number of promoters who use TV and social media commercials to
market the brand. Lynda Carter, a beauty pageant contestant, is one of them. Deepika
Padukone, Fasha Sandha, Gigi Hadid, Kristin Davis, Josie Maran, Julia Stegner,
Zhang Ziyi, Jessica White, Jourdan Dunn, and Miranda Kerr were among the celebs
who took part in Maybelline's campaign.

Supermarkets, specialty stores, cosmetics stores, hypermarkets, medicine stores, and

budget stores are among Maybelline's strong distribution channels. Discounts are, in
fact, an excellent marketing strategy for a product aimed at those who can afford
high-end cosmetics.

The elite who wants to be proud of their skin and appearance are Lakme's target
market. Maybelline, on the other hand, is aimed towards students and the middle
class, making it cheaper. Despite current competitors attempting to eliminate Lakme
from the market, the company has a strong marketing plan. Through effective
communications engagement, Lakme is able to gain 20% of its weekly sales. The
shop salon, cosmetics, and skincare all work together to make consumers feel good.

Differences in Marketing Strategy

Lakme hosts a fashion week show in which the company communicates its principles
with the public. The event takes place twice a year in Mumbai and has a significant
impact on product distribution. The product portfolio covers a wide range of sectors,
appealing to a wide range of customer tastes. Lakme's lighting systems have benefited
from an innovative marketing approach. In their salons and on their websites, they

viii
teach visitors about body care and hygiene. People from less civilised countries are
now more willing to take care of their bodies and maintain a good appearance.

Another fascinating aspect of the Maybelline vs. Lakme study is the supplier chain. In
the company's 360 salons, Lakme Lever Private Limited (LLPL) owns 60, with some
salons functioning as franchises. Its distribution strategy was comparable to that of its
parent firm, Unilever, at the time. Lakme's retail stores cater to people between the
ages of 35 and 55. Furthermore, Lakme is a high-cost company; as a result,
employees are looking for ways to cut costs at all levels of production.

Some Products of Lakme and Maybelline

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 Chapter Two: Review of literature

A study on brand loyalty in India was undertaken by Singh J.D. in 1981. According to
the findings, Indian consumers are growing increasingly brand loyal. They have
single or multiple brand loyalty depending on the nature of the product. They are
loyal to the "quality of the product," "habit of usage," and "regular availability" of the
product. There are few studies on consumer behaviour, notably in India. The
following papers provide a quick overview of some of these noteworthy studies.

Debiprasd Mukherjee (2012) researched the "Impact of Celebrity Endorsement on

Brand Image." Consumers report better self-brand connection for brands with pictures
that are congruent with the image of a celebrity they aspire to be like, according to
this study, especially when the celebrity's image and the brand's image match.

AnjanaS. S. (2018)2 aimed to uncover the elements influencing customers' purchasing

behaviour for cosmetic items in her study. She came to the conclusion that in the
cosmetics category, quality, pricing, brand, packaging, and advertising are all
essential elements influencing consumer behaviour.

OberoiParul, OberoiPrerna (2018)3 performed a survey of 400 people in Delhi NCR

to learn about their attitudes regarding cosmetic items. They came to the conclusion
that social variables have a significant impact on consumer behaviour when it comes
to cosmetics. The impact of brand image benefits on satisfaction and loyalty intention
for colour cosmetic products was investigated by Sondoh Jr., Stephen L et al (2007).
The findings demonstrated that brand image benefits, such as functional, social,
experience, and appearance enhancements, are positively associated to overall
satisfaction, and that functional and appearance enhancements had a strong impact on
loyalty intention.

HamzaSalimKhraim (2011) investigated how brand loyalty to cosmetic brands affects

consumer purchasing behaviour. The outcomes of this study show that there is a
positive and substantial association between cosmetics brand loyalty and criteria such
as brand name, product quality, pricing, design, marketing, service quality, and store
atmosphere.

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 Chapter Three: Research Methodology

Objectives of the Study

Determining the purchasing behaviour of Maybelline and Lakme consumers.

Evaluate consumer satisfaction with Brand products of Maybelline and Lakme.

To determine the most popular type of cosmetic between Maybelline and Lakme and
the factors that influence purchase decisions.

To determine the brand preferences of customers for cosmetics items.

The Buying Choice of Consumer for Cosmetics

Consumers pass through a number of processes before purchasing a product. They

place a premium on the product meeting their needs and being of good quality at an
affordable price, as well as delivering value-added features.

When it comes to product quality, price, status, features, and packaging, consumer
purchase patterns range significantly.

They tend to follow the fashion cycle, and this shift in taste has an impact on their
shopping habits. Marketers invest millions of rupees on market research each year to
uncover and predict this changing behaviour. Because of the many variations,
affordable prices, and changing trends in the cosmetics sector, marketers are having
difficulty understanding and targeting consumer behaviour.

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“The Preferences of Consumer Changes with Time"

Consumer purchasing behaviour is divided into five stages. In the consumer decision-
making process, there are primarily five steps or stages.

1.Identifying the issue

When a client recognises an issue or a need, recognition of the problem begins.

Humans are considered customers of one corporation or another at all times in their
lives. They also have criteria and needs that must be met at each stage. These needs
could be simple or complex. The first phase in consumer purchasing behaviour occurs
when a customer recognises that he or she requires or desires something.

2. Conduct an information search

When a consumer recognises an issue, the following step is to gather enough

information to remedy it. The amount to which the customer searches for information
is determined by his or her level of involvement in the purchase. Advertisements,
friends, public, commercials, and experience are the main sources of information that
impact a consumer's purchasing behaviour.

3. Alternatives evaluation

The next step in the consumer decision-making process is to evaluate the alternatives.
The Consumer will search for alternatives at this point. They'll compare and contrast
what they know about other products and companies with what they think is the most
important.

4. Making a purchase decision

A consumer may go through the initial choice process after deciding whether or not to
buy, as it plans and intends to buy a specific brand or product.

5. Result

After meticulously reviewing each stage of the decision-making process, the ultimate
purchase is made in this step.

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Data collection

Both the first and second data collection methods are used in the current study.
Questionnaire, observation, interview methods used for data collection.

The second data includes online research papers, websites, journal, articles etc.

Sampling Framework

i. Demographic Description:

The number of people in the survey included customers and sellers in the city of
Ratlam

ii. Sample Size:

By looking at the time limit, the researcher took a sample of 100 clients.

iii. How to sample:

In view of the limitations of time, resources, population, the researcher has decided to
make the most samples for the purpose of collecting test items. Face-to-face
conversation also runs with custom

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 Chapter Four: Data Analysis and Interpretation

The data analysis and interpretation mainly concern primary data collected in the form
of questionnaire distributed among customers and retailers in Ratlam City.

Buyer pleasure and their willingness to purchase the same goods are inextricably
linked. Consumers experience either satisfaction or discontent after each purchase or
use of a product. If and when the consumers' perceptions of product features fulfil
their expectations, they are considered to be satisfied. When a customer's impression
does not match their expectations, they are disappointed.

Table 4.1 Satisfaction components

Sl.no Satisfaction components

1. Quality

2. Design

3. Ingredients

4. Value for money

5. Safety of the product

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Questionnaire

1) What is Your Age

AGE

8% 4% 15-25
26-30
31-40
51% Above 41
37%

Most of the respondent are from the age group of 15-25

2)What is your Level of Education?

Level of Education

1% 14%

18%

67% School
Diploma
UG
PG

Most of the respondent have completed their UG

xv
3)What is your Income Level?

Income

1% Rs5000-10000
26% Rs10001-25000
36% Rs25001-40000
Above Rs40000

37%

Most of the respondent have income level of Rs10001-25000

4)What is your Occupation?

OCCUPATION

Students
10%
Working
10% Business
Professional
52% Home Maker
28%

Most of the respondent are students.

xvi
5)Do you use cosmetics products?

Usage of Cosmetics

11%
Yes
No

89%

Most of the respondent use cosmetics on daily basis.

6) Do you have a particular place where you buy your Cosmetic products?

Places to Purchase Cosmetics

1% Super Market
25% Fancy Store
42% Online Shopping
Malls

32%

Most of the respondent like to buy cosmetics from nearby stores and markets.

xvii
7)Which Cosmetic product brand do you use?

Product Used mostly

24% lakme
Maybelline
40%
Others

36%

Most of the respondent prefer Lakme over Maybelline and other cosmetics brands.

8) What factor do you see while purchasing the product?

Factor

Pricing
Quality
46%
54%

With a slight difference respondent prefers quality over price

xviii
9) How do you make your purchase decisions?

Purchase Decisions

Friends&Family
20%
Beauticians
TV& Advertisements
4%
51% Self Choice

25%

Most of the respondent makes self-choices while purchasing cosmetics.

10) How Often do you Recommend Cosmetics?

Recommendation

11%
Always
Sometimes
Never
32% 57%

Most of the respondent likes to recommend cosmetics to others.

xix
11)Which brand gives satisfaction with the quality of cosmetics?

quality of cosmeti cs
Nail care Eye care skin care Lip care

50
46

45

45
43

43
41

41

13

12

12
9
l akm e m ay b el l i n e o t h er

We can see from the above data that in context with quality Lakme nail care products
are more preferred over Maybelline and other brands, Maybelline’s Eye care products
are preferred over Lakme and other brands, Lakme’s skin care products are preferred
over Maybelline and other brands, with a slight difference Maybelline lip care
products are preferred over Lakme and other brands.

12) Which brand gives satisfaction with cosmetic product design?

Cosmeti c Product Design

Nail care Eye care Skin care Lip care
48
45

43
42

42
38
35

32

23
17

15
10

L akm e May b el l i n e Ot h er s

We can see in the chart that Maybelline cosmetic product design leads Lakme and
other brands in context of all nail, skin, eye and lip care products. When interviewed
about the same graph the consumer found Maybelline product design catchier and
more stylish over another brand.

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13) Which Brand gives satisfaction with cosmetic goods' ingredients?

Cosmeti c ingredients
Nail care Eye care Skin care Lip care

48

47
42

39
38

37
32

32

21
19

15
L akm e May b el l i n e Ot h er s

From the above graph it is clear that most in Lakme is considered more over
Maybelline and other brands in satisfaction with cosmetic goods ingredients.

14) Which Brand gives Satisfaction with the value for money of cosmetics?

Value for money

Nail care Eye care Skin care Lip care
54

53
47

46

34

34

32

25
21

19

13

L akm e May b el l i n e Ot h er

From the above graph we can clearly see that Lakme is considered as value for money
products in segments of Nail, Eye and Skin care products, whereas Maybelline leads
in Lip care products over Lakme and other brands.

xxi
15) Which Brand gives Satisfaction with the safety of various cosmetic products?

Safety of cosmeti cs
Nail care Eye care Skin care Lip care

48

46
43

42

42
39

39
37

20
15
10
L akm e May b el l i n e Ot h er s

It is clear from the above graph that in priority of safety of cosmetics Lakme is
preferred over Maybelline and other brands in segment of Nail, Eye and Skin whereas
in segment of lip care Maybelline is preferred over Lakme and other brands.

xxii
 Chapter Five: Conclusions

Research findings

1) The respondents are extremely delighted with the quality of Lakme's cosmetic
goods in the categories of skin care, eye care, and nail care. In the case of lip care
products, however, the situation is different, with respondents expressing satisfaction
with Maybelline's offerings. It was discovered that there is a substantial relationship
between product quality and respondents' satisfaction with cosmetic goods from
various brands.

2) Most respondents prefer to buy cosmetic products from permanent stores, private
markets as they feel it is easily available and the products are of good quality.

3) Quality was found to be more important in purchasing cosmetics by respondents

than in price.

4) Television has gained a greater impact on consumers and is widely used to obtain
product information. The use of the internet by students and consumers of higher
education also emerges as an important factor.

5) It has been observed that in the purchase decision, despite the influence of friends,
family members, beauticians and others, the actual purchase decision was made by the
respondents themselves.

Lakme is found to be more trusted brand over Maybelline, as Lakme has been a part
of Indian cosmetics since long and there is certain amount of brand loyalty attached to
it and mature ladies prefer Lakme over any other brand, Maybelline is more famous
between teens and college girls.

The desires of any female group to look beautiful and desirable are complicated and
dynamic, thus female conduct is complex and dynamic. Cosmetics are seen as a
potent weapon that women believe will transform their ordinary appearance into one
that is appealing and respectable. Women's emotional well-being is thought to be
enhanced by beauty goods. Cosmetics have progressed from a luxury category to a
necessity item in the modern day. As a result, cosmetic product marketers must be
watchful and capable of understanding the needs of today's cosmetic users.

xxiii
 Chapter Six: Suggestions and Recommendations

Suggestions

The respondents feel that the prices of cosmetics are comparatively higher.

Girl students may be influenced to use turmeric as face cream. The medical benefit of using
turmeric must be brought to the notice of girls.

Both the brands should introduce natural products as there are consumer who prefer
natural products over chemical cosmetics.

Recommendations

Lakme and Maybelline both have to present the product lines of natural beauty as
people are more prone to herbal products today. As products should also focus on
people who care about health and direct them.

Proper research should be done on the basis of new research to produce high quality
cosmetics, to understand consumer behaviour and to evaluate product reliability that

will definitely improve the demands of all-inclusive cosmetic demand patterns.

xxiv
 Chapter Seven: Limitations of the study

1. The study is about comparing only the Maybelline and Lakme cosmetic products.
2. There are only 100 respondents.
3. All respondents are women.
4. Respondents are from Ratlam city only

xxv
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Meghana Salins, Sujaya H., and Sreeramana Aithal (2019). SSRN Electronic Journal.
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