Factors Identification for Consumer

Expenditure on Bio-Cosmetic products

and related Hygiene products
STATISTICAL ANALYSIS PRESENTATION
THE AGENDA FOR TODAY
What We Want to Discuss and Analyze

1. INTRODUCTION 2. MEET THE TEAM 3. Objective

What the study is all about? Who we Are? What we wanted to establish
and understand?

4. Survey Methodology 5. Model Building 6. Analysis &

How we sampled the How this was done Recommendations
population and designed the Recommendations
survey

2
 INTRODUCTION
Why is there a need to understand the Purchase Intention of Bio
Care Products

Bio Cosmetic and Hygiene products are safe alternatives to chemical compounds
with high levels of toxicity and chemicals. It has become an increasing fab
amongst youngsters and other age groups who are looking for a safe
alternative !

Since, perception is different it is important to establish a connect between the

intention to buy these products so that marketers can build up their strategies
around them

"There are no better cosmetics than a severe temperance and purity, modesty and humility, a gracious temper
and calmness of spirit; and there is no true beauty without the signatures of these graces in the very
countenance.
- Arthur Helps

3
MEET THE TEAM

LOUIS TWELVE LOUIS TWELVE LOUIS TWELVE

CEO & FOUNDER CEO & FOUNDER CEO & FOUNDER

4
 5

OBJECTIVE

The primary objective of this study is to

assess the factors contributing to the
purchase of basic bio cosmetics and finding
the correlation with the expenditure on
hygiene products and also to:

To find if there is correlation

Establish an estimate of
the expenditure on the
bio Cosmetic products
and the Income variable
using Linear Regression
between various factors related to
the consumer and monthly
expenditure on hygiene products
purchased by the consumers using
Multivariate Regression Analysis.
 SURVEY METHODOLOGY

Target Sampling Sample Responden

Population Frame ts

Survey
Statistics

Constructio Deciding of Response

n of Scale
variables
6
Survey Methodology
 POPULATION ANALYSIS
50% 60% 70% 80%
•The overall approach for determining the sample size
and collecting the sample data is done in various steps.
•The areas targeted for our study include Mechouar,
Kasba, Annakhil, Gueliz, Medina, Menara, and Syba.
•Type or Pupulation: Residents of Marrakech
•Output variable of focus: Expenditure on Bio Cosmetic
Products

Step 1: Choosing the basic Sample

A sample size of 50 is chosen, he respondents are asked
to choose one option from the following. How much do
you spend monthly on Bio Cosmetic products

a)0 – 100 MAD b) 101 – 500 MAD c) 501 – 1000 MAD

d) More than 1000 MAD

Once the data is collected, then the next step followed is 2012 2013 2014 2015
converting the Interval scale data into Continuous scale
data in order to calculate the mean, std dev, Error
margin. The formula used for conversion is
7
Value = (Upper limit – Lower limit)/2 + lower limit
Example for 0 – 100 range, value = (100-0)/2 + 0 = 50
 8

POPULATION ANALYSIS
Step 2: Calculate the mean, Deviation, and Margin of
Error
MOROCOO Average of the Basic Sample,

avg(x) = AVERAGE(B2:B31)= 296.6

Std Dev of Basic Sample, Std Dev(x) = STDEV.S(B2:B31) =
150.24
Margin of Error for Basic Sample, E = 0.05 * Std Dev (x) =
14.83

Step 3: Calculating the Sample Size

55% 45%
52% We consider the confidence interval t be 95% in our case,
Males Females since the data is not very sensitive to small variations.
Hence in order to calculate the desired sample size, the
following formula is used
Area Name Area Total City Percentag
Population Population e Ratio
Hence,
Mechouar 16687 922758 1.8%
Kasba
n = (1.96 * 150.24 / 14.83)2 = 394.15
Annakhil 65031 922758 7.0%
Hence the overall sample size comes out to be 395. A
Gueliz 189166 922758 19.7% multistage sampling method was used to determine the
Medina 120260 922758 13.0% sample
Menara 409777 922758 44.4%
Syba 122837 922758 13.1% Population Statistics as provided by HCP
 Offerings VARIABLE IDENTIFICATION
A questionnaire has been developed to collect responses for the said study.
The questionnaire has 33 variables in total.
The brief for the same is as follows.

Demographic Income Motivational Social

Place Income Expert Social Media
Opinion
Gender Place of Gift Card Awareness
Purchase
Age Frequency of Reason of
Buying Buying
Marital Status Reason of
Using
 10

MODEL BUILDING
Since a relationship is to be determined we have decided to use Linear Regression

Steps

Hypothesis Creation 1 Finding relation between

Income and other variables
3
on Willingness to pay for a
hygiene Skin Care Product
Finding the relation
between the
Income and Finding relation between
2
Expenditure on Bio Income and other variables
Cosmetics for a 4
on Willingness to pay for a
particular Individual hygiene Hair Care Products

Finding relation between

5 Income and other variables
on Willingness to pay for a
hygiene Beauty Care
Products

Demographic variables seem to
be effecting the Expedniture on
Bio Cosmetic and Hygiene
products significantly.
Another important
factor which seems
to be effecting the
expenditure levels
are the usage of Gift 3 ANALYSIS
Cards.
The frequency of buying does
seem to be impacting the
expenditure on bio cosmetics
as frequent users would tend
to keep a budget in mind and
would tend to spend less on
a product one at a time.
ANALYSIS
Social Media seems
1 2 to be effecting the
way people buy
Marital Status is
4 significant in the
sense that, as a
married person his
capacity to buy a
product increases and
so does the need
5 6 The wisest way is to tap high
value, less frequently buying
customers who can spend a
particular amount at a time.
11
 Recommendations
What do we suggest ?

Recommendation #1: Segment Bio Products

based on Income Levels of your Customers

$$ Recommendation #2: Bundle your products

and sell them, cross product bundleing can also
help

$100
¥¥
Recommendation #3: Come up with Gender
Specific Bio Products

££ Recommendation #4: Advertise on Social

Media

Recommendation #5: Come up with Gift Card

Options 12
THANK YOU

13