MAHATMA EDUCATION SOCIETY

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCERE-ACCREDITED BY NAAC WITH ‘A’ GRADE

A PROJECT ON

"CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME PRODUCT"

In the subject Research Methodologies

SUBMITTED TO

UNIVERSITY OF MUMBAI

FOR SEMESTER- III

OF

MASTER OF COMMERCE PART-II

BY

NAME:NAJUKA MOHITE

ROLLNO: 2536

UNDER THE GUIDANCE OF

PROF. SHABAB RIZVI

YEAR 2015-2016

Website: www.pcacs.ac.inTel: 27456100/1700

MAHATMA EDUCATION SOCIETY

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCERE-ACCREDITED BY NAAC WITH ‘A’ GRADE

Dr. K. M. Vasudevan Pillai’s Campus, Plot No: 10, Sector-16. New Panvel-410206

DECLARATION BY THE STUDENT

I, NAJUKA MOHITE student of M.Com Part-II Roll Number ___2536______hereby

declare that the project for the Paper Research Methodologies titled,

“CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME PRODUCTS”

Submitted by me for Semester – III during the academic year 2015-2016, is based on actual

work carried out by me under the guidance and supervision of Prof. SHABAB RIZVI.

I further state this work is original and not submitted anywhere else for any examination.

Signature of Student

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on

“CUSTOMER BUYING BEHAVIOUR TOWARDS LAKME PRODUCTS”

Submitted by ___NAJUKA MOHITE_____student of M.Com Part-II.

This project is original to the best of our knowledge and has been accepted for Internal

Assessment.

Internal Examiner External Examiner Principal

Prof. Shabab Rizvi Dr. Daphne Pillai

PILLAI COLLEGE OF ARTS, COMMERCE & SCIENCEInternal Assessment: Project 40 Marks

NAME OF THE STUDENT CLASS ROLL NO.

NAJUKA MOHITE M.Com Part-

II

2536

SUBJECT: ADVANCE FINANCIAL MANAGEMENT

TOPIC FOR THE PROJECT: CUSTOMER BUYING BEHAVIOUR TOWARDS

LAKME PRODUCT

MARKS AWARDED SIGNATURE

DOCUMENTATION

INTERNAL EXAMINER

(OUT OF 10 MARKS)

EXTERNAL EXAMINER

(OUT OF 10 MARKS)

PRESENTATION

(OUT OF 10 MARKS)

VIVA AND INTERACTION

(OUT OF 10 MARKS)

INDEX

SR.NO TITLES PG.NO

I INTRODUCTION 1

II ABOUT LAKME 2

III PRODUCTS 3

IV SIGNIFICANCE OF STUDY 5

V REVIEW OF LITERATURE 6

VI OBJECTIVE OF STUDY 7

VII HYPOTHESIS AND FORMULATION OF HYPOTHESIS 8

VIII SAMPLE AND DATA COLLECTION 9

IX QUESTIONNAIRE 10

X DATA ANALYSIS 12

XI CONCLUSION 18

INTRODUCTION

Within a short span of the last five-six years, the use of cosmetics by Indian consumers has

increased significantly with more and more women and men taking greater interest in

personal grooming, increasing disposable incomes, changing life styles, influence of satellite

television and greater product choice and availability. With the demand for cosmetics on the

rise and the opening up of the market to foreign companies, many of the world’s popular

cosmetics brands entered the Indian market in the early and mid-nineties and some more have

set their sights on India.

 This cosmetics and personal care industry has been growing at an average rate of 20 per cent

for the last few years. The growing Indian cosmetics market offers promising prospects for

international brands. The growth rate in the cosmetics market reflects an increasing demand

for beauty care products in India. Perfumes and fragrances, skin care, and hair care products

are some of the major segments with promising prospects for U.S. companies.

 Penetration of most cosmetic and toiletries is very low in India. Current consumption of

many products is well below that of many countries in Asia. The low market penetration of

many cosmetics and personal care products offers room for growth. The Indian toiletries

market is well developed and dominated by major multinational companies and a few large

Indian players.

 The urban population with increasing purchasing power is the major force driving demand

for cosmetics and toiletries. India is a very price-sensitive market and mass-market products

constitute the major part of the cosmetics and toiletries market. India’s import of cosmetics

and toiletries and intermediate raw materials is around US$ 120 million, of which the U.S.

has a share of approximately 10 percent. The objective of the study report is to analyze the

consumer satisfaction level of different brands, particularly focused on the Lakme products

ABOUT LAKME

Lakmé is an Indian brand of cosmetics, owned by Unilever. Lakme started as a 100%

subsidiary of Tata Oil Mills (Tomco), part of Tata Group, it was named after the French

opera Lakmé. At the time of its establishment, Indian cosmetic industry was rather nascent,

and there was a very small market base. Simone Tata joined the company as director, and

went on to become its chairman. When Tata's saw a bigger growth potential in the retail

market, and greater competition from global companies in cosmetics, they enetered into a 50-

50 joint venture with Hindustan Lever Limited (the Indian subsidiary of Unilever) in 1995 to

form Lakme Lever.

The Carreras family established LAKMÉ Cosmetics in 1997 and is independent, self-

financed and family owned. The family has over 40 years of manufacturing experience in

salon products. Lakmé East a regional distributor of Lakmé Cosmetics with its main office in

Colchester is conveniently placed to provide you with all the guidance back up and support

you’ll ever need.

Lakme today has grown to have a wide variety of products and services that cover all facets

of beauty care, and arm the consumer with products to pamper herself from head to toe.

These include products for the lips, nails, eyes, face and skin, and services like the Lakme

Beauty Salons

PRODUCTS

Face

Make Up

Lips

| Enrich Lip Colour | Lipgloss

| Lipliner | Dual Definition LipColor 'n' Liner |

Nails

| True Wear Nail Enamel |

Eyes

| Eye Shadow, Liner & Kajal | 

Lakme Pure Defense

Anti-Pollution System

| Detoxifying Facial Wash | Night Cream |

|Day Lotion | Serum |

Cleansers

Cleansers

Sun Care Body Care

Sun Care Body Care

Matte Effect

Matte Effect

Hairnext

Hairnext

Discover Glow Moisturisers

Moisturizers

SIGNIFICANCE OF STUDY

The concept of marketing is related to analysing the markets and the customers in relation to

any particular product. This is done basically in order to discover the unfulfilled demands of

the consumers. Marketing process refers to the procedure where the steps are taken and

decisions are made in order to match the requirements of the consumers by implementing the

strategies in order to compete with the competitors

Cosmetic companies in India are placing increasing emphasis on market research and

targeting new market segments such as teenagers, men and young women. Cosmetics

constitute the high growth segments. Nail enamels and lipsticks account for around 65

percent of total color cosmetic sales in India. Lakme, a brand originally introduced by the

Tata group of India, now bought over by Hindustan Unilever group (HUL).

With changing lifestyles, higher disposable incomes, increasing advertising, penetration of

satellite television, awareness of the western world and growing importance of beauty

pageants, there have been significant changes and use of cosmetics is on the rise. Also, with

the boom in the Indian fashion world and the growth in the television industry, there has been

a rise in demand for professional beauty care products.

Review of literature

Survey is a fact finding study. Under this method of research, the research is interested in knowing

something about the whole population. The researcher studies only sample drawn from population.

The data are collected directly from the sample by interviewing or mailing questionnaires at particular

period of time. It is the data, which are collected by some body for some other purchases. In this study

the sample size was 20. Sampling is only a tool which helps to know the characteristic of the universe

or population by examining only a small part of it. In this study the researcher has addressed

questionnaire to Lakme Cosmetics User.

Marketing strategy is a set of objectives, policies and rules that leads the company's marketing efforts.

In mass marketing, the seller engaged in the mass production, mass distribution and mass promotion

of one product for all buyers. Through this the choice of distribution channels and communication

channels become much easier. The positioning requires that every tangible aspect of product, price,

place and promotion must support the chosen positioning strategy. Company should develop a unique

selling proposition (USP) for each brand and stick to it, PPL consistently promotes it’s DAP fertilizer

by Higher yield at lower cost.

OBJECTIVE OF STUDY

To find out the impact of Lakme Cosmetics Products on the brand switching behavior of the

consumer.

To study the effect of Consumer Satisfaction on the marketability of Cosmetic products.

To know the impact of various striking features on buyers behavior.

To know the media access by consumers to know about Cosmetics Products.

To know various cosmetics product range in the market level for Cosmetic Products (Nail

Enamels, Lotions, Shampoo).

HYPOTHESIS AND FORMULATION OF HYPOTHESIS

In the classical tests of significance, two kinds of hypothesis are used the null hypothesis and

the alternate hypothesis. Null hypothesis ( Ho) is used for testing. It is the statement that no

difference exists between the parameter and the statistic being compared. Second is

Alternative hypothesis. (Ha) is alternative hypothesis is alternative hypothesis which holds

that there has been a change.

Hypothetical testing can be viewed as a six steps procedure;

Establish a null hypothesis

Choose the statistical test on the basis of assumption about the population distribution

and measurement level

select the desired level of significance

Parametric and non parametric tests are applicable under various conditions like

parametric operates with the interval and ratio data and are preferred when their

assumptions can be met. Non parametric tests do not require stringent assumptions

about the population distribution and are less useful with less nominal and ordinal

values.

In this report our null hypothesis and alternative hypothesis are stated below:

Ho: Respondents are satisfied with the quality of Lakme products.

Ha: Respondents are not satisfied with the quality

Ho: Respondents are brand Loyal

Ha: Respondents are not brand Loyal

Ho: Respondents prefer Lakme

Ha: Respondents do not prefer Lakme

SAMPLE

Sample is a smaller representation of a larger whole. In a Research Methodology, sample

may be the individual who is selected for research purpose.

Sample size: 20 consumers

Sample Location: New Panvel

DATA COLLECTION

Data is fact or information that we are collected through a sampling procedure. Primary data

and Secondary data are the two types of data.

Primary Data:

Questionnaire

Secondary Data:

Internet

Company Reports& Broachers

Magazines

Newspapers Articles &journals

Primary Data Collection through questionnaire

Questionnaire

Name: - Contact No:-

Age:- E-Mail Id:-

Sex: - Designation:-

Q. 1 Do you use lakme products (Brand) for Cosmetics?

A. Yes B . No

Q. 2 For which Purpose you usually use lakme product’s?

A. Eyes B. Lip Colour

C. Face D. Nail Enamel

Q.3 For How long have you been using the lakme Brand?

A. Less than a year B. 1 year

C. 2 year D. Less than 5 year

E. More than 5 year

Q. 4 Do you think lakme provides quality products to it’s customers?

A. Yes B. No

C. Can’t say

Q.5 What do you think is the main reason for your use of lakme product’s?

A. Price B. Variety

C. Quality D. Availability

E. Promotion

Q.6 Any Problems you faced while using it?

A. Yes (Specify) B. No

Q.7 State your level of satisfaction / Dissatisfaction with regard to the product’s from lakme?

* Level of Dissatisfaction 10- 20 * Level of Dissatisfaction 20-40

*Level of Dissatisfaction 40-60 *Level of dissatisfaction 60-80

Q.8 what changes you would like to see in lakme products?

A. More Products Range B. More Shades

C. Better Packaging D. All the above

Q.9 Will you recommend lakme product’s to others?

A.yes B. No

Q10 Do you think that lakme provides you with an option of healthy long lasting and Harmless make –up answer with a Statement?

Q.11 would you continue to buy lakme Product’s even if there is increased to say up-to 10-15% In Prices?

A. Yes B. No

DATA ANALYSIS

Q. 1 Do you use lakme products (Brand) for Cosmetics?

Ans. Acoording to study and research i have to select those sample who prefer britannia as a

their brand.Therefore from 20 sample everyone prefer Lakme products.

Q. 2 For which Purpose you usually use lakme product’s?

Eyes35%

Lip color30%

Face25%

Nail Enamel10%

EyesLip colorFaceNail Enamel

35% from samples uses lakme eye’s product.

30% from samples uses lip color range of lakme.

25% from samples uses face product range of lakme.

10% from sample uses Nail enamel products of lakme.

Q.3 For How long have you been using the lakme Brand?

Less tha a year7%

1 year 13%

2 year 25%

less tha 5 year 20%

more than 5 year 35%

Less tha a year1 year 2 year less tha 5 year more than 5 year

Since, Lakme is old and most competitive brand in India. Majority of customers are using more than 5 years of lakme product.

Q. 4 Do you think lakme provides quality products to it’s customers?

Everyone responded positive towards the quality of lakme product.

Its means every customer ids satisfied with their lakme products whether they use for face,eyes,lip color or nail enamel.

Q.5 What do you think is the main reason for your use of lakme product’s?

Price7%

Variety 15%

Quality45%

Availabilty30%

Promotion3%

PriceVariety QualityAvailabiltyPromotion

7% from samples says the main reason to use lakme product, they buy reasonable rates.

15% from samples says that reason to use lakme product because of it has variety of products.

45% from samples says that the reason to use lakme product because of its quality.

30% from samples use it is easlity available in markets.

3% comes to use the product through its promotion strategies like advertisement as main ambassador like Sharddha kapoor and Karina kapoor

Q.6 Any Problems you faced while using it?

No one face any problems while using lakme products..As the quality of product is much better than other.

Q.7 State your level of satisfaction / Dissatisfaction with regard to the product’s from lakme?

Level of Dissatisfaction 10- 20 has maximum no. Of ticks from Sample that I get.No one is dissatisfied with Lakme Product.

Q.8 what changes you would like to see in lakme products?

More Product Range27%

More Shade41%

Better Packing18%

All th Bove14%

More Product RangeMore ShadeBetter PackingAll th Bove

Q.9 Will you recommend lakme product’s to others?

Everyone responses positive about this statement. But they may sometime like switching their products from Lakme to Maybelline.

Q10 Do you think that lakme provides you with an option of healthy long lasting and Harmless make –up answer with a Statement?

Long Last -ing 30%

Harmless 70%

Make-up

Long Lasting Harmless

30% from samples says that lakme is quality product but it not provide long lasting make up.it stays on face upto 3-4 hours.

70% from samples says that it provide harmless makeup. No one still faces any skin problems, reaction through applying lakme products.

Q.11 would you continue to buy lakme Product’s even if there is increased to say up-to 10-15% In Prices?

No35%

Yes65%

Rise by 10-15% price

NoYes

65% of sample responses they will buy the same product when there is major changes in Price as they prefer Quality product.

35% of sample responses they will stop buying the same product but switch their product to other company which is affordable to them.

CONCLUSION

Promotions beyond fashion week

The brand should not lose its focus away from cosmetics. It can proved to very detrimental.

For vast reach unlikely, in the short-term. “Some sort of an alliance or co-branding with the salons that already exist may, perhaps, have been a better strategy.

The general perception is that company-owned salons are expensive. Though Lakme beauty salons are reasonably priced, it has not been communicated well enough.

BIBLOGRAPHYwww.google.com

www.economictimes.com

www.financialexpress.com

www.lakmeindia.co.in