INTRODUCTION TO

THE TOPIC

INTRODUCTION TO THE TOPIC

CUSTOMER & CUSTOMER LOYALTY

Customer- The term is used to refer to someone who regularly purchases from a

particular store or company. Mahatma Gandhi has made a visionary and deep meaningful

statement at Johannesburg, South Africa in 1890, “A customer is the most important

visitors on our premises. He is not dependent on us. We are dependent on him. He is not

an interruption on our work. He is the purpose of it. We are not doing him a favour by

serving him. He is doing us a favour by giving us the opportunity to do so”.

Traditionally the word ‘Customer’ was used to define people whom the organization

dealt with externally. Though the word ‘Customer’ is used as a single unit purchases

could be made both by the individual and the group.

Consumer- The traditional view point has been to define consumer strictly in

terms of economic goods and services.

This position holds the consumers are potential purchasers of product and services

offered for sale. The view has been broadened overtime so that at least some scholars

now do not consider a monetary exchange to the definition of consumers. This change

implies that potential adopters of free services or even philosophies or ideas can also be

encompassed by the definition.

So ultimately Consumers are those individuals who purchase for the purpose of

individual or household consumption.

Or

The individual who consumes or uses a product, which may or may not be purchased by

him.

CUSTOMER LOYALTY is a company's ability to retain satisfied customers.

Maintaining customer loyalty is one of the toughest challenges for any marketing

department in a business enterprise, since the wants of a customer are modified at much

faster rate than their needs. It requires a business enterprise to follow a pro-active

approach that includes formulating strategies for brand consolidation, researching and

continuing with new product development, following TQM (Total Quality Management),

implementing CRM systems, and also, working out Pipeline Management tactics.

Better customer service and faster issue resolution ensure strong loyalty. Information

technology can help companies achieve customer loyalty by providing tools for analyzing

customer data to assist in informed decision making, and managing customer

relationships from the sales process through to fulfillment and support.

CRM solution providers such as Siebel, Salesforce.com and SalesLogix, help companies

achieve customer loyalty by offering services such as advanced analytics and call center

management solutions.

A customer loyalty program is based on a simple premise: as a company develops

stronger relationships with their best customers, those customers will stay with the

company longer and become more profitable.

The focus and proficiency in the work done should be reflected in very strong intellectual

properties that are applied to engagements.

Within this topic, there are many methodologies for calculating loyalty and satisfaction.

Net Promoter Score is one method that uses willingness to recommend a good or service

to a colleague or friend as a simple metric of customer satisfaction and loyalty.

LOYALTY BUSINESS MODEL

The loyalty business model is a business model used in strategic management in which

company resources are employed so as to increase the loyalty of customers and other

stakeholders in the expectation that corporate objectives will be met or surpassed. A

typical example of this type of model is: quality of product or service leads to customer

satisfaction, which leads to customer loyalty, which leads to profitability.

THE SERVICE QUALITY MODEL

A model by Kaj Storbacka, Tore Strandvik, and Christian Grönroos (1994), the service

quality model, is more detailed than the basic loyalty business model but arrives at the

same conclusion.[1] In it, customer satisfaction is first based on a recent experience of the

product or service. This assessment depends on prior expectations of overall quality

compared to the actual performance received. If the recent experience exceeds prior

expectations, customer satisfaction is likely to be high. Customer satisfaction can also be

high even with mediocre performance quality if the customer's expectations are low, or if

the performance provides value (that is, it is priced low to reflect the mediocre quality).

Likewise, a customer can be dissatisfied with the service encounter and still perceive the

overall quality to be good. This occurs when a quality service is priced very high and the

transaction provides little value.

This model then looks at the strength of the business relationship; it proposes that this

strength is determined by the level of satisfaction with recent experience, overall

perceptions of quality, customer commitment to the relationship, and bonds between the

parties. Customers are said to have a "zone of tolerance" corresponding to a range of

service quality between "barely adequate" and "exceptional." A single disappointing

experience may not significantly reduce the strength of the business relationship if the

customer's overall perception of quality remains high, if switching costs are high, if there

are few satisfactory alternatives, if they are committed to the relationship, and if there are

bonds keeping them in the relationship. The existence of these bonds acts as an exit

barrier. There are several types of bonds, including: legal bonds (contracts), technological

bonds (shared technology), economic bonds (dependence), knowledge bonds, social

bonds, cultural or ethnic bonds, ideological bonds, psychological bonds, geographical

bonds, time bonds, and planning bonds.

This model then examines the link between relationship strength and customer loyalty.

Customer loyalty is determined by three factors: relationship strength, perceived

alternatives and critical episodes. The relationship can terminate if: 1) the customer

moves away from the company's service area, 2) the customer no longer has a need for

the company's products or services, 3) more suitable alternative providers become

available, 4) the relationship strength has weakened, 5) the company handles a critical

episode poorly, 6) unexplainable change of price of the service provided.

The final link in the model is the effect of customer loyalty on profitability. The

fundamental assumption of all the loyalty models is that keeping existing customers is

less expensive than acquiring new ones. It is claimed by Reichheld and Sasser (1990) that

a 5% improvement in customer retention can cause an increase in profitability between

25% and 85% (in terms of net present value) depending upon the industry. However,

Carrol and Reichheld (1992) dispute these calculations, claiming that they result from

faulty cross-sectional analysis.

According to Buchanan and Gilles (1990), the increased profitability associated with

customer retention efforts occurs because:

The cost of acquisition occurs only at the beginning of a relationship: the longer

the relationship, the lower the amortized cost.

Account maintenance costs decline as a percentage of total costs (or as a

percentage of revenue).

Long term customers tend to be less inclined to switch and also tend to be less

price sensitive. This can result in stable unit sales volume and increases in dollar-

sales volume.

Long term customers may initiate free word of mouth promotions and referrals.

Long term customers are more likely to purchase ancillary products and high-

margin supplemental products.

Long term customers tend to be satisfied with their relationship with the company

and are less likely to switch to competitors, making market entry or competitors'

market share gains difficult.

Regular customers tend to be less expensive to service because they are familiar

with the processes involved, require less "education," and are consistent in their

order placement.

Increased customer retention and loyalty makes the employees' jobs easier and

more satisfying. In turn, happy employees feed back into higher customer

satisfaction in a virtuous circle.

For this final link to hold, the relationship must be profitable. Striving to maintain the

loyalty of unprofitable customers is not a viable business model. That is why it is

important for marketers to assess the profitability of each of its clients (or types of

clients), and terminate those relationships that are not profitable. In order to do this, each

customer's "relationship costs" are compared to their "relationship revenue." A useful

calculation for this is the patronage concentration ratio. This calculation is hindered by

the difficulty in allocating costs to individual relationships and the ambiguity regarding

relationship cost drivers.

EXPANDED MODELS

VIRTUOUS CIRCLE

Schlesinger and Heskett (1991) added employee loyalty to the basic customer loyalty

model. They developed the concepts of "cycle of success" and "cycle of failure". In the

cycle of success, an investment in your employees’ ability to provide superior service to

customers can be seen as a virtuous circle. Effort spent in selecting and training

employees and creating a corporate culture in which they are empowered can lead to

increased employee satisfaction and employee competence. This will likely result in

superior service delivery and customer satisfaction. This in turn will create customer

loyalty, improved sales levels, and higher profit margins. Some of these profits can be

reinvested in employee development thereby initiating another iteration of a virtuous

cycle.

Fredrick Reichheld (1996) expanded the loyalty business model beyond customers and

employees. He looked at the benefits of obtaining the loyalty of suppliers, employees,

bankers, customers, distributors, shareholders, and the board of directors.

DATA COLLECTION

Typically, loyalty data is being collected by multi-item measurement scales administered

in questionnaires. However, other approaches sometimes seem more viable if managers

want to know the extent of loyalty for an entire data warehouse. This approach is

described in Buckinx, Verstraeten & Van den Poel (2006).

All historical trends for different segmentations and their standard of living may also be

very helpful in developing customer retention strategy. Lifestyle is also a very powerful

tool, can be used for better customer retention and to know his/her needs in better way.

LOYALTY MARKETING

Loyalty marketing is an approach to marketing, based on strategic management, in

which a company focuses on growing and retaining existing customers through

incentives. Branding, product marketing and loyalty marketing all form part of the

customer proposition – the subjective assessment by the customer of whether to purchase

a brand or not based on the integrated combination of the value they receive from each of

these marketing disciplines.

The discipline of customer loyalty marketing has been around for many years, but

expansions from it merely being a model for conducting business to becoming a vehicle

for marketing and advertising have made it omnipresent in consumer marketing

organizations since the mid- to late-1990s. Some of the newer loyalty marketing industry

insiders, such as Fred Reichheld, have claimed a strong link between customer loyalty

marketing and customer referral. In recent years, a new marketing discipline called

"customer advocacy marketing" has been combined with or replaced "customer loyalty

marketing." To the general public, many airline miles programs, hotel frequent guest

programs and credit card incentive programs are the most visible customer loyalty

marketing programs

HISTORY

RETAIL MERCHANDISING

PREMIUMS

Premiums are items that a retail customer can receive by redeeming proofs of purchase

from a specific product or store. This was one of the first loyalty marketing programs.

EARLY PREMIUM PROGRAMS

Beginning in 1793, a U.S. merchant started giving out copper tokens which could be

collected by the consumer and exchanged for items in the store. This practice caught on

and was used by many merchants throughout the 19th century. Sweet Home laundry

soap, a product of the B. A. Babbit Company, came with certificates that could be

collected and redeemed for color lithographs. Beginning in 1872, the Grand Union Tea

Company gave tickets to customers that could be exchanged for merchandise in the

company catalog of Grand Union stores.

TRADING STAMPS

The first trading stamps were introduced in 1891, the Blue Stamp Trading System, where

stamps affixed to booklets could be redeemed for store products. The Sperry and

Hutchinson Company, started in 1896 in Jackson, Michigan, was the first third-party

provider of trading stamps for various companies, including dry goods dealers, gas

stations and later supermarkets. S&H Green Stamps, as the company was commonly

called, opened its first redemption center in 1897. Customers could take their filled

booklets of "green stamps" and redeem them for household products, kitchen items, and

personal items. When the G.I.s returned from World War II the trading stamps business

took off when numerous third-party companies created their own trading stamp programs

to offer to supermarkets and other retailers.

MARKETING THROUGH CHILDREN

Marketers of retail products used programs targeted at children to sell to their parents

through the use of premiums. Kellogg's Corn Flakes had the first cereal premium with

The Funny Jungleland Moving Pictures Book. The book was originally available as a

prize that was given to the customer in the store with the purchase of two packages of the

cereal.[5] But in 1909, Kelloggs changed the book give-away to a premium mail-in offer

for the cost of a dime. Over 2.5 million copies of the book were distributed in different

editions over a period of 23 years.

At the beginning of the Second World War, radio was a big player in the promotion and

distribution of premiums, usually toys that were closely related to the radio program.

There were many radio shows that offered premiums to their listeners, but Captain

Midnight was one of the best known. The early sponsor of Captain Midnight was Skelly

Oil, and parents could get forms to mail-in for radio premiums at the gas stations. Later,

Ovaltine became the sponsor of Captain Midnight, and it continued the premiums

through advertising on the labels and foil tops of Ovaltine that could be collected to

exchange for Captain Midnight premiums and offering membership to the "Secret

Squadron".

BOXTOPS

In 1929, Betty Crocker issued coupons that could be used to redeem for premiums like

free flatware. In 1937 the coupons were printed on the outside of packages, and later the

Betty Crocker points program produced a popular reward catalog from which customers

could pick rewards using their points. In 2006, it was announced that the Betty Crocker

Catalog was going out of business and that all points needed to be redeemed by

December 15, 2006. With it, one of the earliest loyalty programs ended a 77 year

tradition.

PRIZES

Prizes are promotional items—small toys, games, trading cards, collectables, and other

small items of nominal value—found in packages of brand-name retail products (or

available from the retailer at the time of purchase) that are included in the price of the

product (at no extra cost) with the intent to boost sales.

TOBACCO INSERTS

Some of the earliest prizes were cigarette cards — trade cards advertising the product

(not to be confused with trading cards) that were inserted into paper packs of cigarettes as

stiffeners to protect the contents. Allan and Ginter in the U.S. in 1886, and British

company W.D. & H.O. Wills in 1888, were the first tobacco companies to print

advertisements and, a couple years later, lithograph pictures on the cards with an

encyclopedic variety of topics from nature to war to sports — subjects that appealed to

men who smoked. By 1900, there were thousands of tobacco card sets manufactured by

300 different companies. Following the success of cigarette cards, trade cards were

produced by manufacturers of other products and included in the product or handed to the

customer by the store clerk at the time of purchase.[9] World War II put an end to cigarette

card production due to limited paper resources, and after the war cigarette cards never

really made a comeback. After that collectors of prizes from retail products took to

collecting tea cards in the UK and bubble gum cards in the US.

TRADE CARDS TO TRADING CARDS

The first baseball cards were trade cards featuring the Brooklyn Atlantics produced in

1868 by Peck and Snyder, a sporting goods company that manufactured baseball

equipment. In 1869, Peck and Snyder trade cards featured the first professional team, the

Red Stockings.[12] Most of the baseball cards around the beginning of the 20th century

came in candy and tobacco products produced by such companies as Breisch-Williams

confectionery company of Oxford, Pennsylvania, American Caramel Company, the

Imperial Tobacco Company of Canada, and Cabañas, a Cuban cigar manufacturer. In fact

it is a baseball set, known as the T-106 tobacco card set, distributed by the American

Tobacco Company in 1909 that is considered by collectors to be the most popular set of

cigarette cards. In 1933, Goudey Gum Company of Boston issued baseball cards with

players biographies on the backs and was the first to put baseball cards in bubble gum.

Bowman Gum of Philadelphia issued its first baseball cards in 1948 and became the

biggest issuer of baseball cards from 1948 to 1952.

MODERN PACKAGED FOODS

The most famous use of prizes in the United States (and the word "prize" in this context)

is Cracker Jack brand popcorn confection. Prizes have been inserted into every package

of Cracker Jack continuously since 1912. W.K. Kellogg was the first to introduce prizes

in boxes of cereal. The marketing strategy that he established has produced thousands of

different cereal box prizes that have been distributed by the tens of billions. Frito-Lay is a

world icon in the field of in-package prizes. Besides being the current owner of Cracker

Jack, the U.S. popcorn confection brand known for the "Prize Inside", Frito-Lay also

regularly includes tazos and tattoos in packages of Lay's chips worldwide. In parts of

Latin America, Frito-Lay has even introduced a brand called Cheetos Sorpresa (English:

Surprise), which includes a licensed prize (from movies, television, and video games) in

every 29–gram bag.

DIRECT MARKETING PIONEERS

WARD: THE FATHER OF MAIL ORDER

By creating a direct marketing industry through his mail order catalogue, Aaron

Montgomery Ward would unknowingly enable the creation of a powerful global network

that would include everything from mailing, to mail order, to telemarketing and lastly to

social medias. Together Ward and his [long time] competitor Sears changed the direction

of the American marketplace by introducing the concept of individuality with the term

consumption, allowing therefore the generations of today to take full control of their

consumption behaviours and all of this in complete privacy. Today, the mail order

catalogue industry Montgomery funded is worth approximately 100 billions of dollars,[23]

and generates over 2 trillion only in [incremental] sales and supports till this day an

estimated 10.9 million jobs either directly related to marketing industry or dependent

upon it.

WUNDERMAN: DIRECT MARKETING GENIUS

Mail order pioneer Aaron Montgomery Ward knew that by using the technique of selling

product directly to the consumer at appealing prices could, if executed effectively and

efficiently, revolutionize the market industry and therefore be used as an innovative

model for marketing products and creating customer loyalty. The term "direct marketing"

was coined long after Montgomery Ward`s time. In 1967 Lester Wunderman identified,

named, and defined "direct marketing". Wunderman — considered to be the father of

contemporary direct marketing — is behind the creation of the toll-free 1-800 number and

numerous mail order based loyalty marketing programs including the Columbia Record

Club, the magazine subscription card, and the American Express Customer Rewards

program.

MODERN CONSUMER REWARDS PROGRAMS

FREQUENT FLYERS

On May 1, 1981 American Airlines launched the first full-scale loyalty marketing

program of the modern era with the AAdvantage frequent flyer program. This

revolutionary program was the first to reward "frequent fliers" with reward miles that

could be accumulated and later redeemed for free travel. Many airlines and travel

providers saw the incredible value in providing customers with an incentive to use a

company exclusively and be rewarded for their loyalty. Within a few years, dozens of

travel industry companies launched similar programs. The AAdvantage program now

boasts over 50 million active members.

CARD LINKED OFFERS

The early part of the 2010 saw the rise of Card Linked Offers (CLOs) as a new loyalty

marketing technique for brands, retailers and financial institutions, stemming from a rise

in popularity of both mobile payment and coupons. CLOs connect offers or discounts

directly to a consumer’s credit card or debit card, which can then be redeemed at the

point of sale. CLOs have been implemented by American Express and Groupon and CLO

technology has been developed by companies such as Cartera Commerce, Cardlytics,

Clovr Media, and Offermatic. In order to receive and use CLOs, consumers must

willingly opt in to a CLO program and provide their credit/debit card information [32].

When consumers see relevant CLO-enabled advertisements and product offers while

browsing online, using a mobile device, watching TV, reading a newspaper or magazine

or listening to the radio they can click, text or scan a QR code to link the CLO-enabled ad

directly to their credit/debit card. After consumers make a purchase at the designated

retail location, the savings appeared are credited directly to their bank, credit card or

PayPal account. As such, CLOs eliminate point-of-sale integration, mail-in rebates and

paper coupons. Offers are typically based upon consumer preferences and previous

purchase history. Prior to 2010, static CLOs existed for many years in the form of bank

issued loyalty offers, such as points or savings on travel purchases.

LOYALTY MARKETING IMPACT

Many loyalty programs have changed the way consumers interact with the companies

from which they purchase products or services from and how much consumers spend.

Many consumers in the US and Europe have become quite accustomed to the rewards

and incentives they receive by being a "card carrying" member of an airline, hotel or car

rental program. In addition, research from Chris X. Moloney shows that nearly half of all

credit card users in the US utilize a points-based rewards program.

In recent years, the competition for high income customers has led many of these loyalty

marketing program providers to provide significant perks that deliver value well beyond

reward points or miles. Both American's AAdvantage program and Starwood Hotels'

Preferred Guest program have received industry awards, called "Freddie Awards" by

Inside Flyer Magazine and its publisher Randy Petersen for providing perks that

customers value highly. These perks have become as important to many travelers as their

reward miles according to research.

In his book, Loyalty Rules!, Fred Reichheld details the value to customer referral on the

growth and financial performance of dozens of leading US firms. Reichheld purports that

the measurement of company advocates, or promoters, is the strongest single measurable

correlation between customers and corporate performance. Similarly, Chris X. Moloney

has presented new findings ((Loyalty World London 2006)) that showed a magnetic

value to a company to promote and measure customer referrals and advocacy via research

and marketing.

LOYALTY MARKETING AND THE LOYALTY BUSINESS MODEL

The loyalty business model relies on training of employees to achieve a specific

paradigm: quality of product or service leads to customer satisfaction, which leads to

customer loyalty, which leads to profitability. Loyalty marketing is an extension of that

effort, relying upon word-of-mouth and advertising to draw upon the positive experiences

of those exposed to loyalty business model inspired ventures to attract new customers.

Fred Reichheld makes the point in his books that one can leverage the "power of

extension" to draw new customers.

The rapid expansion of frequent-flyer programs is due to the fact that loyalty marketing

relies on the earned loyalty of current customers to attract new loyalty from future

customers. Incentive programs that are exclusive must strike a balance between

increasing benefits for new customers over any existing loyalty plan they are currently in

and keeping existing customers from moving to new plans. Hallmark did this through

devising a program that directly rewarded customers not only for buying merchandise

and utilizing Hallmark.com, but gaining additional benefits through referring their

friends.

The most recent loyalty marketing programs rely on viral marketing techniques to spread

word of incentive and inducement programs through word of mouth.

INDIAN COSMETIC INDUSTRY

The size of India's cosmetics market will rise by almost a half to 1.4 billion dollars in the

next two-three years as people get fashion conscious and more brands are launched,

industry body ASSOCHAM said.

With increased awakening about cosmetics brands, which is evident even in rural India,

the industry size will grow to around 1.4 billion dollars from current level of 950 million,

ASSOCHAM said in a press release.

It said despite high penetration of cosmetic items and new foreign brands foraying into

the country, India's consumption of cosmetic and toiletries is far less than other Asian

countries. The per capita consumption in Hong Kong is 50 times that of India, while

Japan's consumption is 18 times.

Domestic cosmetics and toiletries industry has been growing at 15-20 per cent over the

last few years, but India is a price sensitive market. Companies need to work out

innovative strategies to establish a foothold here, it said.

"India's per capita consumption of cosmetics and toiletries for well-known branded

products stands at 0.68 dollars as against 40 dollars in Hong Kong, 10 dollars in Malaysia

and Taiwan, 12 dollars in Japan and 1.5 dollars of China," ASSOCHAM President

Venugopal Dhoot said.

Hong Kong has the highest per capita consumption for cosmetics and toiletries products

since it is the launching pad for such products for most Asian countries, he said.

He said 20 million consumers in India use branded products by Unilever, Procter &

Gamble, Godrej and Dabur. The reason for low penetration of international brands in

India is the price differential due to which foreign brands constitute only 20 per cent of

the market.

COMPANIES PROFILE

COMPANIES PROFILE

THE POND’S STORY

Pond’s, an international brand with a presence in over 56 countries, is a name

synonymous with skin care and beauty for almost a century now.

SKINCARE FOR THE BEAUTIFUL INDIAN WOMAN

Pond’s is your trusted companion who understands the importance beauty holds for the

Indian woman. We believe that any skin care solution is incomplete without thorough

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passionately led the way in understanding an Indian woman’s beauty needs.

Our understanding has helped our products break all age and skin care barriers. We now

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KEEPING YOU IN THE SPOTLIGHT

Today Pond’s has spread its wings to cover anti-ageing, skin lightening, oil control,

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eye treatment, facial foams and more.

A SCIENTIFIC TOUCH FOR YOUR BEAUTY NEEDS

At Pond’s we believe that advanced skincare solutions need to be ably supported by

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With laboratories in New York, Tokyo and Madrid, the Pond's Institute is dedicated to

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THAT PERFECT FEELING

With laboratories in New York, Tokyo and Madrid, the Pond's Institute is dedicated to

innovation and breakthrough solutions for the ever-changing skin care needs. Our

research goes hand in hand with the assurance of quality and we have delivered results to

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Today, Pond’s can proudly boast of being a woman’s best friend. We help the Indian

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With Pond’s, you can now enjoy the glow of love forever.

WHAT’S NEW ?

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Three things that make the new Pond’s Age Miracle™ range different

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Pond’s Institute combines its patented CLA technology with the power of other

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2. NEW PRODUCTS

The new range consists of eight products, all of which have advanced CLA

complex™. They are

o Daily Resurfacing Day Cream

o Overnight Repair Cream

o Concentrated Resurfacing Cream

o Daily Regenerating Facial Foam

o Dual Eye Therapy

o Renewal Treatment Mask

o Anti-Ageing Tinted Moisturizer

o Microdermabrasion Kit.

3. New attractive Packaging

The new stylish packaging, designed by engineers from France and Japan, Play an

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* Based on significant lightening of spots in a clinical study.

** Topical retinoids are clinically proven and recognized as the leading actives for the

treatment of ageing skin. Pond’s age miracle tm serum contains active levels of retinoids.

For women across Asia, the appearance of certain dark spots and blemishes on the skin’s

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For women across Asia, the appearance of blemishes or dark spots on the skin’s surface

(also known as hyper-pigmentation) is a barrier to beautiful skin. Through extensive

research conducted by the scientists at the Pond’s Institute, for various countries

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The new Pond’s white beauty uses the best ever skin lightening technology from Pond’s.

The Pond’s Institute has created Pond’s white beauty™ which contains Pro-Vitamin

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Pond’s Oil Control Cleansing Foam cleanses from deep within the skin.

It comes endowed with Anti-Oil Bio 5 that helps control the excess production of sebum.

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So skin looks freshly washed throughout the day.

Pond’s Pimple Care Facial Scrub has the wondrous properties of salicylic acid and soft

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Found in the bark of willow trees, salicylic acid prevents pores from clogging up. And

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Skin with Pond’s Pimple care Facial scrub becomes clean and visibly clearer.

Moisturising has always been the key to good skin.

Essential moisture is robbed off skin due to factors like the sun and pollution and it needs

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Skin with Pond’s Pimple care Facial scrub becomes clean and visibly clearer.

BENEFITS

It comes endowed with Anti –Oil Bio 5 that helps control the excess production of

sebum. Even its cleansing beads gently and effectively lift away oil, dirt and make

up from the pores.

Presenting Pond’s Perfect Results™ Mutli-Benefit Illuminating Cream and Pond’s

Perfect Results™ Mutli-Benefit Illuminating Lotion with SPF 15 PA++

A first from Pond’s, this multi-benefit, anti-ageing cream and lotion gives multi-defense

and increases your skin’s natural protection against leading causes of skin ageing by 15

times. It is enriched with the combined power of mutli, anti ageing actives: Vitamin

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BENEFITS

Increases Skin’s natural protection against the leading cause of skin ageing by 15

times.

Visibly illuminates skin by reducing signs of dullness, discoloration and dry skin.

Helps protect skin from age-accelerating UVA and UVB rays

Minimizes the look of fine lines and wrinkles

Light formula in lotion only

USAGE

Apply every morning after cleansing and toning.

Avoid eye contur.

NIVEA

MOST TRUSTED BRAND

NIVEA is proud to have been voted the Most Trusted Brand by participants in the

Readers Digest survey of Trusted Brands 2009.

NIVEA was voted the most trusted skin care brand in all 15 countries, the most

trusted cosmetics brand and most trusted hair care product in selective countries.

European Trusted Brands is an annual multi country study of consumer attitudes and

opinions specifically related to everyday products and services. The survey website

contains top line results for each of the 15 participating countries in the 2009 survey.

LIGHT MOISTURISING DAY CARE

SKIN TYPE: Normal to Combination Skin

EXPERTISE: Protects the skin from UVA/UVB rays

Enriched with skin’s own Hydramine, the cream optimally hydrates your skin

Vitamins and Jojoba Oil refresh and smoothen the skin

BENEFIT: Skin is refreshed, protected, soft and supple

Daily Use Direction: Apply a small amount on face & neck every morning; massage

upward & circular; leave on . Hydramine is a precious active naturally present in the skin,

which regulates the moisture balance of the skin cells and protects them against moisture

loss.

With their formula containing skin’s own Hydramine, the NIVEA Laboratories have

created a range of innovative Moisturising Care products

PRODUCT INFORMATION

LIGHT MOISTURISING DAY CARE

SKIN TYPE: Oily to Combination

EXPERTISE: It is an Oil-in-water emulsion (external phase is water, internal phase is oil)

A fast absorbing light moisturiser

It Contains:

Jojoba Oil (plant extract) that provides outstanding moisture and care Vitamin E which is

an Antioxidant that protects the skin cells from free radicals induced in the skin by

harmful UV rays exposure

BENEFIT: Leaves the skin feeling soft and supple

USP: Unique texture and fragrance

SIZE:

50 ml

100 ml

200 ml

SHAVING FOAM

SKIN TYPE: All Skin Type

EXPERTISE: Formulated with CARE PRO TEC, the professional care technology

specially developed for normal to dry Skin.

Ultra rich foam with Moisturizers and Vitamin Care helps prevent dryness and Skin

tightening

Cares for and improves the condition of the skin

BENEFITS:

- Perfect shave for fresh & healthy looking skin

- The skin feels soft, supple and cared for

SHAVING GEL

SKIN TYPE: All Skin Types

EXPERTISE: Formulated with CARE PRO TEC, the professional care technology

specially developed for normal to dry Skin.

Advanced shaving with Ultra Glide Technology

- Effective razor glide

- Close and extra gentle shave

- Helps protect against cuts and irritations

BENEFITS:

- Perfect shave for fresh & healthy looking skin

- The skin feels soft, supple and cared for

AFTER SHAVE LOTION

SKIN TYPE: All Skin Types

EXPERTISE: Supports the skin’s natural protection system and helps to regenerate

BENEFITS:

-Refreshing and lasting fragrance

-Immediately cools, tones and stimulates

-Disinfects and protects against inflammation

WHITENING FACE WASH - OILY SKIN

SKIN TYPE: Oily to Combination Skin

EXPERTISE:NIVEA For Men Advanced White Clean Oil Control Face Wash gives

you deep cleansing with long–lasting shine control care.

Also enriched with Vitamin E and Algae extracts for smooth, invigorating skin

BENEFIT: Enjoy clean and healthy looking skin.

NOURISHING CARE SKIN LOTION - FOR NORMAL

SKIN

The daily moisturising lotion provides your skin with 24 hour moisture, leaving it soft

and supple.

The NEW IMPROVED FORMULA with GRAPE SEED OIL and NATURAL

MINERALS

NIVEA Body Moisturising Fresh Lotion with Grape Seed Oil absorns quickly and lets

your skin breathe.

Enriched with Natural Minerals it stimulates the skin’s moisture production in its deeper

layers, storing the moisture inside.

Feel your skin breathe and being vitalized.

Dermatologically tested for skin compatibility.

UV PROTECTION LOTION

Prevents skin from darkening and premature skin ageing

UV Protection Lotion is a multi-protective moisturising lotion that prevents skin from

darkening, giving it a smooth feeling and a beautiful glow. Its caring moisturisers

instantly hydrate the skin.

Iso-Protectine + UV Filters

The nature derived effective anti-oxidant works actively inside you skin’s deeper layers,

boosting your skin’s own protection system, while UVA and UVB filters protect against

the effects of the UV rays.

Dermatologically tested for skin compatibility

CUSTOMER LOYALTY TOWARDS

PONDS & NEVIA

Product means all the goods and service , tangible or intangible of any size or

quality or colour or packing or price which may be accepted by the consumer to satisfy

their needs and wants. Product is the vehicle by which a company provides consumer

satisfaction. It is the engine that pulls the rest of the marketing program. A product may

be a good, services, a good plus service, or just or idea.

Today there are many companies which provides Cosmetic products and they

spend huge sum on advertising. Consumer get information about the product from

advertisement. So Advertisement is the blood in the veins of Industry like Working

capital.

FACTORS AFFECTING TO THE PROMOTION OF BOTH COMPANIES

There are various methods of promotion:

1. Advertising : Advertising consists of all the activities involved in presenting to

an audience a non personal, sponsor-identified, paid for message about a product or

organisation. Actually advertising is any paid form of non-personal presentation and

promotion of ideas, goods or services of an identified sponsor.

Features of advertising

It is paid form of communication.

It is a non-personal presentation of message.

The purpose of advertising is to promote idea about the products and service of a

business.

Advertisement is issued by an identified sponsor.

2. Personal Selling: Personal selling is an important method of selling. It is a

process of assisting and persuading a prospective buyer to buy a product in a face to face

situation. It involves direct and personal contact between the seller or his representative

with the prospective buyer.

The purpose of personal selling is not to ensure the present safe alone, but

winning a regular customer. Personal selling or salesmanship consists of winning the

buyer’s confidence for seller’s goods there by winning a regular and permanent customer.

Features of Personal selling or salesmanship

Salesmanship involves persuasion of customers.

Salesmanship involves buyer’s confidence.

Salesmanship involves providing information.

Salesmanship aims at mutual benefits.

3. Sales Promotion : Sales promotion is an important method of promotion includes

those marketing activities other than personal selling, advertising and publicity that

stimulate consumer purchasing and dealer effectiveness such as displays, shows and

expositions, demonstration, and various non-recurrent selling efforts not in the ordinary

routine.

Functions of Sales Promotion

Introduce new products in the market through educating people.

Attract new customers by offering attractive gifts etc.

Increase sales during the stock season.

Create good public image of the product and the firm.

Sales Promotion Techniques which are used by the different Products of Pond’s &

Nivea

1. Trade deals

2. Free Samples

3. Display Allowance

4. Consumer oriented scheme.

LITERATURE REVIEW

LITERATURE REVIEW

BOOKS

Sharma D.D. Dr., “Marketing Research” Sultan Chand & sons N.Delhi1 2nd

edition, pp 90-91:-From the following pages I have taken the information about

the meaning of Marketing Research.

Arya P.P., Yashpal, “Research Methodology in Management”, Deep & Deep

Publication Pvt Ltd.N.Delhi2, ed.2001:- From this Book I have taken the

information about the meaning of Research Methodology.

Kothari C.R., “Research. Methodology”, Dharmesh printers Delhi3, Ed.2nd

P.P.(1-20) : - From the following pages I have revealed the information about

the meaning of Research.

Beri G.C., “Marketing Research” Tata McGraw Hill Publishing company

ltd. N. Delhi4 , 3rd edition pp. (138-144):- From this Book I have taken the

information about Sampling Designs & Process of Sampling .

Cooper R. Donald, Sehindler S. Pamela, “Business Research Methods” Tata

MC Graw hill Publishers Com. N. Delhi5 2003edition pp.(303-305) :- From

this Book I have taken the information about the Date Collection.

Belch George E And Belch Michael A “Advertising And Promotion”, Sixth

Edition, Tata Mcgraw Hill, New Delhi6 :-I have taken information from this

book regarding customer satisfaction. It is essential for a marketer to understand

the level of customer from which services customers gets satisfied.

Abert J. Della Bitta, Consumer Behaviour and concepts and applications,

Fourth Edition, Tata Mc Graw Hill, New Delhi7, PP 5-8,430 :- From this book

I have taken the information regarding consumer Behaviour and Cognitive

dissonance.

Suja R. Nair, Consumer Behaviour in Indian Perspectives (First Edition:

2001), Himalaya Publishing House, Mumbai8., PP 3-6. The success of the firm

will be determined by how effective it has been in meeting the diverse customer

needs and wants by treating each customer as unique and offering products and

services to suit his/her needs.

JOURNAL & MAGAZINE

ICFAI University press marketing mastermind9 , may 2006 PP 50-59 :-

Information regarding the Consumer behaviour towards different

mobiles12.Business Research-June 2005 Page-31 :- I have taken the information

regarding Research Methodology

Howard, john (1989) Consumer Behavior In marketing strategy ,prentice

Hall10 PP-361-36:- I have taken the information regarding How Consumer

behaviour is a component of profitability.

Engel, James; Blackwell Roges, and miniard Paul (1990) Consumer

Behaviour11,(61a) The Dryden Press Chicago:- Information regarding Role of

Consumer behavior , The impact of C.B. lies in the fact that behaviour can be

understanding.

OBJECTIVES OF THE STUDY

To Know about the Customer Loyalty of Pond’s & Nivea

To Know the Sale Promotional Strategy

To Know about the Product line of Both Companies.

To know the Consumer (women) Buying behavior about the Pond’s & Nivea

Products.

How Women Influence to buy the Pond’s & Nivea product

RESEARCH METHODOLOGY

Research in common parlance refers to a search for knowledge. One can also

define research as a scientific and systematic search for pertinent information in a

specific topic. The advanced learner’s dictionary of current English lays down the

meaning of research as a careful investigation or inquiry specially through search for new

facts in any branch of knowledge. Redman and Mory defines research as a “Systematized

effort to gain new knowledge.”

Research is an academic activity and as such the term should be used in a

technical sense. According to Clifford woody research comprises defining and redefining

problems, formulating hypothesis or suggested solutions; and collecting, organizing and

evaluating data; making deductions and reacting conclusions; and at last carefully testing

the conclusions to determine whether they fit the formulating hypothesis.

Research is thus, an original contribution to existing stock of knowledge making

for its advancement. It is pursuit of truth with the help of study, observation, comparison

and experiment.

OBJECTIVE OF RESEARCH

Through each research study has its own specific purpose, we may think of

research objectives as falling into a number of following groupings:

1. To gain familiarity with a phenomenon or to achieve new insights into it. 2. To portray accurately the characteristics of a particular individual, situation or

a group. 3. To test a hypothesis of a causal relationship between variables.

STEP IN RESEARCH

Research is common parlance refers to research for Knowledge one can also define

research is a scientific and systematic search for pertinent information and specific topic.

The advance learner dictionary of current English lays down the meaning of research as:

“A Careful Investigation or enquiry especially through search for new fact in any

branch of Knowledge”

Some People consider search as a moment from not to not so :

Research Always start with the problems

Its purpose is to find answer or solution of the Problem through application of

scientific method .

It is a systematic and Intensive study Directive towards a more complete

knowledge of the subject studies.

Develop Objective

Research Design

Field Work

Data Analysis and Interpretation.

Report Presentation

The Purpose of search is to discover answers to Questions through the

Applications of Scientific procedures. The main aim of search is to find out the

truth which is hidden and which has not been discovered as yet.

TYPES OF RESEARCH

Descriptive Vs. Analytical :

Descriptive Research includes survey and fact finding Enquiries of different kinds. The

major purpose of descriptive research is decryption of the state of affairs as it exist at

present . In social science and business research be quit open use the term as fast facto

research for descriptive research studies .

Applied Vs. Fundamental :

Research can either be applied research or fundamental research . Applied Research aims

at finally a solution for an immediate problem facing a society or an industrial / business

organization . Where as fundamental research is mainly concerned with generalization

and with the formulation of a theory .

Quantitative Vs Qualitative :

Quantitative research is based on the measurement of quantity of amount. It is

applicable to phenomena that can be expressed in terms of quantity . Qualitative research

on the other and is concerned with qualitative Phenomena.

Conceptual Vs. Empirical :

Conceptual research is that related to some abstract ideas or theory . It is generally used

by Philosopher and thinkers to develop new concepts or to reinterpret existing one’s.

On the other hand empirical research realize on experience or observation alone ,

often without due regards for system and theory .

TYPES OF RESEARCH USED IN STUDY

In this study descriptive research is used. The major purpose of descriptive research is

description of the state of affairs . As it Exist at present . In this study the information

collected about the product from retailer as well as consumers by using interviews and

questionnaires .

RESEARCH DESIGN

Design regarding what where when how much by what means concerning an enquiry

for research study constitutes research design . A Research design is the arrangement of

conditions for collection and analysis of data is a manner that aims to combine

relevance to the research purpose with economy in procedure .

Questionnaire and interview method was designed and administered to the respondents

for the objective of the study.

DATA COLLECTION

In dealing with any real life problem is often found that data at hand are in adequate and

hence it becomes necessary to collect data that are appropriate . There are several ways

of collecting the appropriate data which differ considerable in context of money cost

time and other resources at the disposable of Researcher .

The data source are secondary as well as primary :

Primary Data :

Primary Data can be collected either through experiments or through surveys it . If the

researcher conducts and experiments, he observes some Quantitative experiments, or the

data with the help of which he examines the truth contained in his hypothesis . But in

the case a survey data can be collected by anyone or more of the followings way:

By observation : The method implies the collection of Information by way of

investigator’s own observation . Without interviewing the respondents the information

obtained relates to that is currently happening and is not complicated by either the past

behaviour or future intentions or attitudes of Respondents.

Through personal interview:

The investigator follows a rigid procedure and seeks answers to a set off preconceived

Questionnaire through personal interviews.

Through Telephone Interviews:

This method of Collecting information includes contacting the respondents on telephone

itself. This is not a very widely used method but it place an important role in industrial

survey . In developed reasons particularly, when the survey has to be accomplished in a

very limited time .

By mailing of Questionnaire :

In this method the researched and respondents do not come in contact with each other .

Questionnaire are mailed to the respondents with a request to return after completing the

same . It is the more expensively used method.

Through Scheduled :

Under this method the enumerators are appointed given training . They are provided with

schedules containing Relevant questions . These enumerators go to respondents with the

schedules . Data are collected by filling up the schedule by enumerators on the bases of

replies given by Respondents .

Secondary Data :

The Secondary Data on the other hand are those which have already been collected

someone else and which have already been passed through the statically process. When

the researcher utilized secondary data then he has to look into various sources from he

can obtained them . For e.g.: Books, Magazines , Newspapers , Internet , Publications and

Reports .

METHOD USED IN STUDY :

In this study both primary and Secondary method of Data collection is used . in Primary

the observation method and interview method was used . Researcher taken the interview

of the retailer and consumers and find what is the advertising effect on different brand of

Pond’s & Nivea. This is find out that what type of advertisement, Marketing Strategy

attract the consumer. The study is Fresh and for the first time and happen to the original

in character. Not used any previous reports of company in Primary Data. Secondary

Source for collecting data used in this research are internet and from Magazines the

information collected from the retailers and the consumers .

SOURCE OF DATA

The data sources are secondary as well as primary. In secondary, the data consists

of Information that already some where that already exists some where that have been

collected for another purpose.

In primary source the data consist of original information gatherered for the

specific purpose. The cluster sampling technique is decided to collect the data from

dealers in Yamuna Nagar city.

LIMITATION OF THE STUDY

1. Some of the Parlor dealers thought, me as representatives of the company

hence instead of answering my questions they put their questions to me and

expected that I answer them.

2. Some of the Parlor dealers were very angry due to the behaviour of some

previous researches and they were not ready to answer the questions.

3. Some of the dealers were biased in giving me the information.

DATA ANALYSIS &

INTERPRETATION

DATA ANALYSIS & INTERPRETATION

MARKET SHARE

Market share of Pond’s comparative to others in which the retailers are dealing

in ‘Yamuna Nagar’ City.

Name of Company Market Share in (%)

Pond’s 65%

Nivea 35%

Above data reveals that Pond’s has maximum market share i.e. : 65 % as compared to

Nivea which have 35% market share because of its quality and availability.

65%

35%

0%10%20%30%40%50%60%70%

Pond’sl Nivea

Series1

ANALYSIS OF DATA

After collection of the data, the first task is to organize the data in such a form

from which the result, comparison between features, advertising, marketing share and

other promotional activities can be easily understood.

Therefore after presenting the whole data or information collected in table, I have

used bar diagrams, pie diagrams etc.

1) To have attraction and elegant presentation.

2) To make information and data simple and intelligent.

3) To have good visual impact

4) To facilitate comparison

5) To depict the characteristics of data.

From the analysis we find some effects which are as follows:

a) Total number of Dealers for Pond’s & Nivea

b) Town wise some sale and total sale in yamuna nagar Market.

c) Effect of advertisement

d) Effect of different Advertisement techniques on women buying

behavior .

DEALERS SPECIFIC RESEARCH FINDINGS

Various Beauty Parlor in Yamuna Nagar were interviewed with well structured

questionnaire. The questions included were both open and close ended. All the data

gathered was kept private and confidential during and after the market research. The

Parlor dealer questioned were dealing in Pond’s & Nivea Products . The Parlor dealers

were keeping exclusive Pond’s & Nivea products.

Q.1) Which Product customers demand the most?

(a) Face Wash (b) Massage Cream (c) Perfume (d) Eye Liner

50%

15%

25%

10%

0%

10%

20%

30%

40%

50%

60%

Series1

Series1 50% 15% 25% 10%

Face Wash

Massage

Perfume

Eye liner

INTERPRETATION:From the above data it reveals the Hair Colour is on top in demand rather than other product i.e. 50%

Q .2) Does the women customers influenced by

(a) Pond’s brand name (b) Nivea Brand Name

Pond’s brand name 60%

Pond’sbrandname

Nivea Brand Name

Nivea Brand Name

INTERPRETATION:60% women influenced by the brand name of Pond’s and 40% with Nivea

Q.3) What is the price range in which Cosmetic Product sales is maximum?

(a) Rs.300-500 (b) Rs.500-700 (c) Rs.700-10,00 (d) Rs. 10,00-15,00

Price range in which sales is max

0

0.5

1

1.5

2

2.5

3

3.5

Rs.1000-1500 Rs.700-1000 Rs.500-700

Rs.300500

Price range

Series1

INTERPRETATION:According to above data the price range in which the sales is maximum is Rs. 300-500 and 500-700 range have average sale.

Q .4) Which area do you think there are problems in Pond’s Product ? (Yes / No)

(a) Distribution

(b) Availability of stock

(d) Promotional activities

(e) Price range

(f) Product features

Problems in distribution

0

5

0

1

2

3

4

5

6

Yes No

No.

of d

eale

rs

Series1

Problems in availability of stock

0

5

0

1

2

3

4

5

6

Yes No

No

. o

f d

eale

rs

Series1

Problems in product features

0

5

0

1

2

3

4

5

6

Yes No

No

. of

dea

lers

Series1

Problems in price range

0

5

0

1

2

3

4

5

6

Yes No

No

. of

dea

lers

Series1

INTERPRETATION:

Few dealers feel that the problems are laxity in promotional activities.

Nivea should do more promotion about the Products to increase the sales.

Q .5) Do you think the sales person at your store has appropriate knowledge of Pond’s & Nivea Products ?

(a) Yes (b) No

Q .6) Do you think more training is required for the sales person?

(a) Yes (b) No

INTERPRETATION:

Although the salespersons at the exclusive Cosmetics stores have appropriate

knowledge regarding Pond’s & Nivea Products but still they require more training

to acquaint themselves with the new features of the oven so that they can provide the

customers with the best services.

Knowledge about the features of Pond’s & Nivea Products for salesperson is very

important as it increases the sales of Products.

Q .7) Please tick the following statements on the given attributes for Pond’s &

Nivea Products depending on how much you agree with the statement? (Please

tick)

STATEMENTS Strongly agree

Agree Neither agree nor disagree

Disagree Strongly disagree

a) The product performance is goodb)It comes up with good promotional schemesc) It has value for moneyd) It provides huge varieties in product linee) It is of high quality

Pond’s PRODUCT COMES WITH GOOD

PROMOTIONAL SCHEMES

INTERPRETATION: On the Likert scale:-1. 20% of dealers strongly agree and 80% just agree to the statement “The

product performance is good.”2. 20% of dealers strongly agree and 40% agree to the statement “Pond’s

Products comes up with good promotional schemes.”40% dealers disagree to the statement.

Though Pond’s is known for its promotional schemes, still it lacks in this area in comparison to its competitors. More promotional schemes should be there in order to increase its reach and sales among customers.

INTERPRETATION :1. 80 % dealers agree to the statement “Pond’s Product has value for

money.”20 % dealers neither agree nor disagree.2. 40% dealers strongly agree and 60 % dealers agree to the statement “Nivea

provides huge varieties in product line.”

Pond’s PRODUCT HAS VALUE FOR MONEY

NIVEA PROVIDE HUGE VARIETY IN PRODUCT LINE

INTERPRETATION:1. 40% dealers strongly feel that Pond’s Product is of high quality where as 60%

dealers just agree to the statement.

Pond’s PRODUCT ARE OF HIGH QUALITY

CUSTOMER SPECIFIC RESEARCH FINDINGS

Respondents: Customers of Products

Sample Size: 50

Research Methods: Exploratory – All possible decision alternatives

& relevant variables considered.

Descriptive – Factors were filtered to have a

deep analysis of customers perception.

Causal – The nature of relationship between

variables was known by doing causal research.

Sources of Data: Primary & Secondary

Customers using Pond’s & Nivea Products were chosen as respondents to fill the

questionnaire.

Q.) Which Product of Pond’s you are using?

(a) Face Wash (b) Eye Liner (c) Massage Cream (d) Lip Liner

60%

15%10%

15%

0%

10%

20%

30%

40%

50%

60%

Series1

Series1 60% 15% 10% 15%

Face Wash Eye Liner

Massage Cream

Lip Liner

INTERPRETATION:

The Product used by most of the customers is Hair Colour . This is followed by Eye Liner & Lip liner .

Q.) which strategy of Nivea effected your habits

A: Quality B: Advertising C: Popularity

Quality 70%

advertising 20%

Popularity 10%

Quality

advertising

Popularity

INTERPRETATION:

70% of the respondents affected by quality and 20% by advertising. 10%

change their habbit to Nivea because of its popularity

Q.) How do you prefer to use Pond’s Hair Colour ? (a) at Beauty Parlor (b) at home

Preference of the respondent to use hair colour

22

28

0

5

10

15

20

25

30

At beauty Parlor At home

Series1

INTERPRETATION:

Most of the customers prefer to use hair colour at parlor But due to some reasons respondents prefer to use colour at home.

Q.) How much satisfied are you with your Nivea Product ?

Extremely Satisfied Neutral Dissatisfied Extremely dissatisfied

Respondent satisfaction with the Product

14

5 5

0

26

0

5

10

15

20

25

30

Extremely

satisfied

Satisfied Neutral Dissatisfied Extremely

dissatisfied

Respondent satisfaction with the Nivea Product

Fre

qu

ency

Series1

INTERPRETATION :

Few respondents are extremely satisfied with their Lakme Product where as most of them are satisfied.Very few respondents were neutral or dissatisfied.

Q.) have u use any other cosmetic items before the use of Pond’s & Nivea

Yes 40%No 60%

Yes 40%

No60%

Yes

No

INTERPRETATION :

60% women consumer use cosmetic first with Pond’s and 40% are old user.

Q.) How Nivea change your habit about cosmetics? question for those who never

use cosmetic before the use of Nivea .

Advertisement 35%

Its model using in advt. 20%

Quality 20%

Long lasting result 25%

Advertisement

35%

Its model using in

advt. 20%

Quality 20%

Long lasting result 25%

Advertisement

Its model using in advt.

Quality

Long lastingresult

INTERPRETATION :

Most of the respondents change their habits about cosmetic because of

Advertisement effect. 25% influence with its long lasting result.

SWOT ANALYSIS

STRENGTH

Pond’s is a Multinational company with a large amount of Capital. It is expanding it self

world wide. It have so many branches in different countries. So growth of this company

and future is bright. Its product are very much famous among the women because of its

quality and popularity.

WEAKNESS

In the present competitive scenario there are many companies in the same field and they

are selling their product in less price.

OPPORTUNITY

This is the fashion age and in India fashion is growing fast. So the Pond’s & Nivea have

great opportunity to spread their products in the Indian market.

THREATS

Again The competitors are the threats for Pond’s & Nivea. So to escape this situation

Pond’s have to continuously work on Consumer Buying behavior, The changing

behavior of women in India.

FINDINGS

FINDINGS

Pond’s has maximum market share i.e. : 65 % as compared to Nivea which have 35% market share because of its quality and availability

Hair Colour is on top in demand rather than other product i.e. 50%

60% women influenced by the brand name of Pond’s and 40% with Nivea

price range in which the sales is maximum is Rs. 300-500 and 500-700 range have average sale.

Few dealers feel that the problems are laxity in promotional activities.

Nivea should do more promotion about the Products to increase the sales.

Although the salespersons at the exclusive Cosmetics stores have appropriate knowledge

regarding Pond’s & Nivea Products but still they require more training to acquaint

themselves with the new features of the oven so that they can provide the customers with

the best services.

Knowledge about the features of Pond’s & Nivea Products for salesperson is very

important as it increases the sales of Products.

1. 20% of dealers strongly agree and 80% just agree to the statement “The

product performance is good.”

2. 20% of dealers strongly agree and 40% agree to the statement “Pond’s

Products comes up with good promotional schemes.”40% dealers disagree

to the statement.

Though Pond’s is known for its promotional schemes, still it lacks in this area in

comparison to its competitors. More promotional schemes should be there in order to

increase its reach and sales among customers.

80 % dealers agree to the statement “Pond’s Product has value for money.”20 % dealers

neither agree nor disagree.

40% dealers strongly agree and 60 % dealers agree to the statement “Nivea provides

huge varieties in product line.”

40% dealers strongly feel that Pond’s Product is of high quality where as 60% dealers

just agree to the statement.

The Product used by most of the customers is Hair Colour . This is followed by Eye Liner

& Lip liner .

70% of the respondents affected by quality and 20% by advertising. 10% change their

habbit to Nivea because of its popularity

Most of the customers prefer to use hair colour at parlor But due to some reasons

respondents prefer to use colour at home.

Few respondents are extremely satisfied with their Lakme Product where as most of

them are satisfied. Very few respondents were neutral or dissatisfied.

SUGGESTIONS

SUGGESTIONS

The following important recommendations emerge from the study:

In cosmetic products, the quality has played a remarkable role in developing

brand loyalty, so it may be suggested that a company should stress on improving the

quality so that almost all the consumers maybe brand loyal.

Market segments may be identified in term of age, income and education because

these segments are very important for developing brand loyalty. Accordingly a company

should stress on advertising.

It appears that the companies while launching good schemes such as gifts offered,

discount provided etc. keep the people of metropolitan cities in mind. This sort of

discrimination should be avoided.

Now-a-days price of face and body creams have become sky rocketing, so it is

suggested that prices should commensurate the common man's earning so that everybody

can have a reasonable opportunity to be benefited.

Best suited media for the advertisement of face and body creams in the following

sequence.

1) T.V.

2) Radio

3) Magazine

4) Newspaper

So the firms manufacturing these products should allocate their funds in the

sequence mentioned.

One of the very important factor influencing brand choice in the opinion of the

family members and friends and other people known to the purchaser. Therefore, efforts

should not to limited to merely inducing people into buying a particular brand of face and

body creams, at a given point in time but instead we should ensure that he/ she remained

inclined to a brand over a longer period of time even after once the purchase has been

made. This will ensure that the person will have a favourable word for the brand when

other potential customers seek his/ her opinion.

CONCLUSION

CONCLUSION

The climax of the Research process is approached as one prepares to draw

conclusions and report findings. The whole investigation culminates and research

fruition in drawings inferences that lead to conclusions as to the course of action. On the

basis of present study, major findings are listed below.

FACE AND BODY CREAMS:

The conclusions given below have been arrived at a result of surveyed in present

study.

Ponds and Nivea are the most popular brands in both category such as single VS

dual brands except Ponds in single brand usage category. A majority of consumers have

been found brand loyal and only a few respondents are brand switches. However, a vast

number of consumers fall with in domain of high degree brand loyalty. All the

consumers are found to be proper brand switches. The reason for brand switching

behaviour are gifts offered special discount provided, consumer contests etc., the uses of

Nivea, Lakme and Ponds for within the domain of brand loyalty.

Brand Loyalty with regard to brand choice decision makes reveal that self

decision making plays a very important role in developing brand loyalty, further more it

has been found that a vast number of consumers used the brand clue to quality. But the

doctors advise still is also very important factor which influence brand loyalty.

It has been emferred that the consumer in the younger age group have been found

brand loyal. Furthermore, it has been found that the middle income group are brand

loyal.

Brand preference patterns depict that in general Nivea and Ponds have been found

the most preferred brands but when it is presumed that price of all brands are same or

equal. Then it has been inferred that both the male and female prefer Nivea similarly the

married and unmarried couples also prefer Nivea. Furthermore, it has been found that the

all the consumers of various education level prefer Nivea. Also the consumers of

different income groups prefer Nivea.

When price is not consider, then it has been found that both the male and female

prefer Nivea. Similarly the married couples also prefer Nivea but unmarried ones prefer

Ponds and Lakme. Interms of education level except the post graduates (prefer Ponds)

prefer Nivea. Similarly, the consumer of the middle and highlevel income group prefer

Nivea but the lower income group prefer Fair and Lovely.

Ultimately it can be concluded that users of Nivea and Ponds and Ponds also

prefer both the brands and also dominate brand loyalty.

Most advertised brands were: Ponds, fair and lovely, fairever, Emami naturally

fair, Boro Soft, Boro Plus etc. It has found that the maximum consumer recalled single

of their favourite brand. It seems that most effective media for face and body creams are

Radio and Television, their inferences was drawn from the fact that the respondents were

asked to recall their favourite advertisement, 60% respondents recallthe adfvertisement of

different brands which were advertised through these media. Also those who make a

choice for a particular brand after being influenced by advertisement, most of them were

introduced to their favourite brand through T.V. and Radio advertisement. it was

depicted that television plays an important role as advertising media for face and body

creams.

Hair and Body Oils:

The major finding given below have been emerged from the chapter IV of the

study.

Parachute is the most popular brand especially in female users. Parachute is no

doubt use by the male ones but is also use by the female most. The users of Parachute

and Dabur (Amla) are such more brand loyal as compare to other brands. At most the all

the consumers are brand loyal except few ones who are brand switchers. However, a vast

no. of consumers fall within the domain of higher degree brand loyalty. Also the

majority of brand switching are 'proper' brand switchers. The reasons for switching the

brands are gifts offered discount provided and consumer contents.

It has been found that joint and self decision making plays a remarkable role in

developing brand loyalty but the quality still plays an important role in preferring any

brand. In most of cases doctors advise also has been inferred an important factor which

influence the brand loyalty.

Age group wise brand loyalty shows that the persons in the younger age group

have been found brand loyal. Moreover , the middle income group and the highly

educated consumer are found to be more brand loyal.

Brand preference patterns reveal that in general parachute has been found the

most preferred brand but when it is assumed that the price of all brand are some or equal ,

then it is observed that the females and both married and unmarried couples prefer

Parachute was the male prefer Keo-Karpin. Interms of education, all the consumers of

different educationlevel except the professionals (prefer olive) prefer Parachute. Interms

of income basis the consumers of low and high income level prefer Parachute but the

consumers of middle level prefer Keo-Karpin.

When price is not considered then it has been found thjat the male prefer

Parachute but the female prefer Keo-Karpin. The married couples prefer mustard but the

unmarried ones prefer Parachute. In terms of education all the consumers ofdifferent

educationlevel prefer Parachute except the student of 10+2 standard who prefer Dabur

Amla. In terms of income basis the consumers having low income prefer Parachute the

consumers of middle income group prefer Keo-Karpin and mustafd while the consumers

of high income level prefer Hair and care. Ultimately it can be concluded from the above

discussion that the users of Parachute also prefer Parachute and also dominate brand

loyalty.

In this item most of advertised brand were: Prachute Dabur vatike, Hair and Care

Dabur Amla etc. Same 60% respondents recall the advertisement of different brands

which were advertised through T.V. and newpaper media. It was depicted plays an

important role as an advertisement media for hair and body oils.

THE COSMETICS:

The cosmetic products it can be concluded that most of the consumer are brand

loyal except a few ones who are brand switchers. Further more, it has been inferred that

joint and self decision asking play an important role in developing brand loyalty. Mostly

highly educated and consumers of middle income group are brand loyal. Moreover,

brand loyally is pre dominant in younger age group.

BIBLIOGRAPHY

BIBLIOGRAPHY

Marketing Management by : Philip Kolter

Advertising Management by : Chunawala

Marketing Research by : Bery.

Research Methodology : C.R. Kothari

Pond’s Profile

Nivea Profile

ANNEXURE

QUESTIONNAIRE

Q.) Which Product of Pond’s you are using?

(a) Face Wash (b) Eye Liner (c) Massage Cream (d) Lip Liner

Q.) which strategy of Nivea effected your habits

A: Quality B: Advertising C: Popularity

Q.) How do you prefer to use Pond’s Hair Colour ? (a) at Beauty Parlor (b) at home

Q.) How much satisfied are you with your Nivea Product ?

Extremely Satisfied Neutral Dissatisfied Extremely dissatisfied Q.) have u use any other cosmetic items before the use of Pond’s & Nivea

Q.) How Nivea change your habit about cosmetics? question for those who never use cosmetic before the use of Nivea .

A Study of Brand Loyalty in Cosmetic Products

1. Name of the Respondents : _______________________

2. Age : _____________ years

4. Marital Status : i) Married ii) Unmarried

5. Educational Qualifications:

i) literate ii) illiterate

6. Family composition

s.no Name of the age sex Relationship with education remarks if

family member head of the family

7. Occupations:

i) Employed

ii) Housewife

iii) Students

iv) Businessman

v) Anyother

8. Approximately Family Income (Monthly)

Upto Rs. 5000/-

Rs. 5000 to 10000/-

Rs. 10000 to 15000

Rs. 15000 and above

9. Which brand(s) of do you commonly use?

And since how long you are using these:

Brand(s) Used Duration

i) Face & Body Creams

ii) Hair and body oils

10. How did you come to know this brand(s)

i) Family

ii) Friends

iii) Advertisement: TV Radio,. Magazine, Newspaper,Any other

iv) Shopkeeper

11. Why do you prefer to use this particular brand(s), please rand the following

factors.

Factors Face & Body Cream Hair & Body Oils

i) Price

ii) Quality

iii) Brand Image

iv) Advertising

v) Anyother

12. To what extent, the following factors influenced your choice for Brand(s) being

currently used by you.

Face & Body Cream Hair&Body boils

Very Some what Not Very some what Not

Imp. Imp. Imp Imp. Imp. Imp.

i) Doctor';s Advice

ii) Advertising Appeal

iii) Joint decision of family

iv) Popular Brand

v) Anyother

13. How much is spent byyour family on following items?

Items Expenditure

Face and body creams

Hair and Body oils

14. Who has been instrumental in deciding the brand(s) being used the items

Instruments Face & Body creams Hair & Body oils

i. Head of the family

ii. Lady

iii. Grand lady

iv. Children

v. Combined decision

15. When brand (s) of your choice is not available you would?

Face & Body Creams Hair & Body Oils

i) Switch over to new brand Yes/No Yes/No

ii) Go to another shop Yes/No Yes/No

iii) Go to another market in Yes/No Yes/No

search of brand

iv) Wait for arrival of brand Yes/No Yes/No

16. Will you purchase same brand (s) being currentlyusd by you to price rises

substantially?

Face & Body creams Yes/No Yes/No

Hair and Body Oils Yes/No Yes/No

17. Which of the following factors may lead you to change your brand(s)

Face & Body creams Hair&Body oils

i) More effective advertisement

ii) Relatively low price of the brand

iii) Better quality

iv) Attractive package/size/etc of new brand

v) Any other

18. Are you satisfied with the present packaging/ quality of your favourite brand(s) of items?

If, No, then, please give reasons:

Face & Body creams

Hair and Body oils