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MALE BEAUTY SEGMENT GROUP 10

Reg nos. 332, 342, 352, 362,372, 382, 392, 402 of 50th batch

MARKETING MANAGEMENT TERM - 1

MARKETING FIELD PROJECT REPORT

ON CONSUMER BEHAVIOUR IN INDIAN MALE BEAUTY SEGMENT

Group 10:

Shiva Jyothi N

Vijit Sonawane

Rahul D V

Subramaniam Harishwar

T Prateek Rao

Tushar Turumella

Vimal Kumar

Yuvraj Singh Bist


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INTRODUCTION AND INDUSTRY BACKGROUND

The skin-care industry was always perceived as a women targeted industry. Indian marketing sector, over

the last few decades has undergone tremendous changes. One of the major segments which had come up is

the male beauty segment. Beauty products only being used by women is a thing of the past now, although

the men using beauty products was discovered quite accidently. In a market research done it was found that

forHindustan Unilevers product, Fair & Lovely in 2005 30% of its users were men. Emami was thefirst to jump on to the wagon by launching Fair and Handsome which is the first fairness cream for men to

be launched in India. Although there were products like face wash, moisturizing creams (in the form cold

creams) etc., fairness cream which is considered as the flagship product of beauty industry signalled the

official beginning of Indian Male Beauty Segment

NE ED FOR MALE BEAUTY PRODUCTS:

India has a varied climate and the environment is usually perceived to be harsh. To counter these effects of

the climate, many of the Indian men, who spend most of their day in the open are looking forward to

products which help them negate those factors. Whitening has therefore emerged as a principal need. Male

skin is thicker, less sensitive, and less prone to infections than female skin. So men would need products that

can penetrate their skin and handle stronger remedies for skin whitening. Also it has been researched that

men skin is more acidic and therefore more prone to being oily. All these factors mean that Mens beauty

products have to be significantly different from female beauty products and there is a huge market share to

capture.

KuicK Research conducted a survey across 17 major cities in India. 86% of the male respondents

admitted to using fairness cream for at least once in last six months.

INDUSTRY BACKGROUND:

The key players in the Industry are Emami, Hindustan Unilever, ITC, Loreal. Emami had the first mover

advantage with the Fair and Handsome cream and together with its right mix of strategy (brand ambassador

selection of Sharukh khan, pricing and distribution) has established itself as the market leader. Hindustan

Unileveron the other hand with its power clout and dominance in Female beauty segment through Fair and

Lovely is ever fighting to gain market share and has been fairly successful in doing so. The mens fairness

cream market is growing at a rate of 22 to 25 percent per annum. So, the general male beauty segment may

not be far behind. Compared to womens beauty segment, where the growth is lesser at 10 to 15 percent, it is

almost double. Thus, the above mentioned companies are flooding the market with new products every day.

We can see products like anti-ageing cream and anti-wrinkle cream being the next rave.

RECENT TRENDS IN THIS INDUSTRY, IN INDIA:

Emami - first entrant & category creator with Fair and Handsome fairness cream in 2005. In 5 years, Fair And Handsome has become a Rs.100 Cr brand, growing at 45% per annum and

contributing 15% toEmamis revenues.

Total market size of Indian cosmetics industry is expected to reach INR 20,000 Cr by 2014,ASSOCHAM report.

Growing at an annual rate of 20 %, twice as fast as United States or Europe.


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Male cosmetics marketing currently at INR 1,700 Cr & Projected to reach INR 3,000 Cr by 2016 asper report by Kuick Research 2012.

Women skincare industry growing at 10-15% pa compared to male skincare of 25-30% pa.

PROJECT OBJECTIVES

UNDERSTANDING CONSUMER BEHAVIOR MALE PERCEPTION OF BEAUTY AND SKINCARE

What is the Indian males understanding and view of the concept of beauty and what are theparameters across which he measures beauty?

Perception in the mind of females about male beauty segment and their opinions about whichproducts may be relevant and how do they perceive male beauty.

Comparing the difference between male and female beauty segment in India and analyse why themale beauty segment has not taken off as big as the female beauty segment.

Are there too many players and too many categories in the male beauty segment that may beconfusing the consumer?

Measuring brand awareness in fairness cream segment and understanding whether the consumer inurban and rural area is reluctant in using the product and what is the real reason behind it (shyness,

indifference or lack of awareness)?

UNDERSTANDING KEY DRIVERS IN MALE BEAUTY SEGMENT

Knowing what products does the consumer use or wants to use on his face regularly and whatcharacteristics of the product (pack size, price, brand, packaging) influence the buy or attract the

consumer. Who are the influencers that affect the purchase decision of the consumer, gauging the effect of

female family members (mother, sister, wife) in choosing a product or product recommendation.

Understanding the need for consumer to use male beauty products, was the need self-motivated orinfluenced by somebody (especially female family members).

What is the impact of celebrity endorsements in the male beauty segment and how it may impact thepurchase decision?

Understanding the growth of male beauty segment and trends in the industry that have evolved. Isthere a relevant segment that can be catered to with a smaller pack size?

Is there a scope for cannibalization of fairness creams by face wash and face moisturizers?

METHODOLOG Y

With the above stated objectives in mind we set out to do the project. We had divided our market research

into three parts: direct interviews at the point of purchase, for which we had chosen the location as South

City mall, an online survey to reach out to maximum respondents in the quickest possible time & to gather

data from various parts of India hoping to get more diversity in the answers and trying to find some rationale

behind their purchasing behaviour, in-depth interviews of 4 customers to find out the real reasons behindconsumers purchase decisions and his behaviour.


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1. On field survey at South City mallThe idea of surveying the consumers at South City mall was to get the consumers response on the spot by

posing questions related to their purchases, especially the ones around consumer choice, influence of brand

ambassadors and most importantly to understand the concept of beauty established among men.

The on field survey team took interviews of two couples at the South City Mall. The idea of interviewing

couples was to understand the male consumer choice/purchase-decision and perception of male beauty by

women in a better way.

2. On-line surveysOver 136 consumers were surveyed online. The idea behind this survey was to get the quantitative data for

the project. Consumers preferred products, brands and decisions of purchase related to age groups, location,

profession, disposable income etc. were some of the questions that needed explanation. Additionally, some

of the qualitative questions such as perceived benefit of using male beauty products and reasons for not

using male beauty products were also asked in the survey. We had respondents from all over India,

interestingly the majority of the survey responders were from non-metro cities or Tier I and Tier II cities.

Majority of them were them college going students in the age group of 22-30 years.

3. In Depth InterviewsIn depth Interviews were also done to find out the real reasons behind consumers purchase behaviour and

concept of beauty according to Indian male consumer. We felt that in the on field survey and the online

survey, we were not able to find the consumers real reasons as the amount of time spent with the consumer

was short and the consumers were not being entirely honest. In this method we spent around 1 hour with the

consumers. The time was to break the ice, familiarize with the customer and get him/her into an interactive

mode rather than interview mode.

ON FIELD SURVEY

Findings

Couple 1: Mr and Mrs Jitesh

Mr Jitesh 38 years of age, self-employed Consumer of premium brands such as Body Shop, Natures Co. and LOreal Mostly uses moisturizer, face wash and anti-aging cream Used the beauty products mostly in college days under peer pressure to look good Brand ambassadors do play a big role; magazines and television are the biggest channels of promotion Men are getting increasingly conscious about skin care products Male beauty and grooming is essential for confidence and success in professional life; Mrs Jitesh agrees

with this

However, concept of men fairness creams is stupid. Believes that urban Indian men are confident abouttheir skin colour

Mrs Jitesh didnt have any influence on his husbands choice of products or purchase decisionsCouple 2: Mr and Mrs Saha

Young couple in their late 20s. Mr Saha - govt. employee/ Mrs Saha - housewife


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Never uses expensive stuff; not brand conscious; treats all brands as same - A cream is a cream Uses cold cream, body lotion and face wash Not influenced by advertisements /celebrity endorsements Mrs Saha buys all the products for her husband Price of the product is the biggest deciding factor Considers men dont face the pressure look fair as women do

ONLINE SURVEY ANALYSIS

CUSTOMER RESPONSE

Customer response forms an integral part of our analysis. The insights that we gained from the end users

themselves were indeed profound. Our target audience for the survey was Indian male users across various

Tier-1 cities. We segmented them according to age-group (ranging from 18 to 53), location and income

(ranging from students, with nil income, to target audience with a monthly income of Rs. 80,000).

Some of the broad aspects that we surveyed respondents were on the various brands/products used, the

drivers of these choices (be it Price, Brand loyalty, Complementary offers), influence of celebrity

endorsements (due to our observation of the fact that most of these products were endorsed by celebrities)

and whether the purchases are self-driven or through an external influence (wife, girlfriend, family

members).

We got a total of 125 responses to our survey. Some of the key insights are as follows:

1. Do you use any male beauty product?

Key insights:

i. Market penetration seems profound, especially given the fact that 80% of the surveyrespondents claimed usage (regular and occasional users combined).

ii. Men are becoming more and more aware of the functional benefits of using beauty products,which cuts across both the student and working population.

iii. Regular users constituted more of the office going class with higher disposable incomeiv. Occasional users comprised students who depend on their parents/past savings to fund their

purchases

21%

59%

20%

Do you use any male beauty product?

Yes, regularly Yes, occasionally No, never


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2. What according to you is/are the benefits of using male beauty products?

Key insights:

i. Users seem influenced more by the psychological aspects of using these products as opposedto the functional benefits that these products provide.

ii. The fact that self-confidence (51% of the respondents) and better perception among women(31% of the respondents) feature quite heavily as drivers of perceived benefits were indeed

surprisingiii. This will have a bearing on the marketing and advertising strategies that companies plan out,

as they will now have to focus their promotional campaigns along these lines, vis--vis the

actual functional benefits

iv.3. Do you mind telling other people that you are male beauty product user?

Key insights:

i. 33% of the respondents responding in the affirmative, this alludes to the fact that many menbelieve that usage of beauty products is still a womans forte

ii. This also alludes to the fact that 13% of men are shy to accept usage, given that 80% of therespondents claim usage

31

10

51

46

Better perception among women

Professional success

Self-confidence

Other

What according to you is/are the benefits

of using male beauty products?

33%

67%

Do you mind telling other people that you

are male beauty product user?

Yes No


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4. Which of the following product(s) do you use?

Key insights:

i. Respondents cognizant of personalized products for men, vis--vis unisex products, like soapii. Face wash usage most dominant; this can be attributed to more variety and better marketing.

This was also the first product that was introduced in the market in the mens beauty product

category

iii. Usage of anti-ageing cream in the 50+ age category. This represents an opportunity forplayers to target this audience to fuel further growth

5. Who influences the use of the product?

Key insights:

i. High self-purchase indicates better awareness among patrons. This was the response of mostworking professionals, hence this is also driven by higher disposable income

ii. It is seen that people within a position of trust (friends/family) their opinion matters morethan advertisements

iii. Some encouraged by parents, shows awareness even in the 50+ age category

8817

343

7

0 10 20 30 40 50 60 70 80 90 100

Men's Face Wash

Men's Face Moisturizer

Other

Which of the following product(s) do you

use?

72

13

9

5

17

0 10 20 30 40 50 60 70 80

Self

Wife/Girlfriend

Siblings

Parents

Other

Who influences the use of the product?


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6. Who actually purchases the product?

Key insights:

Self-choosing shows a higher degree of

Self-confidence Information Awareness

7. What most affects your purchase?

Key insights:

i. We see that the customers are fairly price conscious. Companies would do well to creategeneric products and keep a competitive price point.

ii. Since this is still a fairly nascent market, coming out with premium products with a pricepremium, as is that case with most women beauty products, may not be an effective strategy

iii. Brand recall ability is not profound. This provides companies with a challenge to innovate,come up with a unique marketing proposition and yet keep price competitive, as the triple

focus, to position them effectively.

86%

14%

Who actually purchases the product?

Self Other


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IN-DEPTH PERSONAL INTERVIEWS

CANDIDATE INTERVIEWS

Candidate 1:

Face wash primarily used for cleansing wash and side benefit of acne control. Faces wash perceived as a specialized face product. Fairness not necessary, so does not use fairness cream. Embarrassing for males to use fairness cream. Brand is not important for face wash, just cleansing effectiveness & packaging important. Cost an

important factor.

Gives more value to listed benefits on product. Relationship status influences use of beauty products. Better perception among women according to

single males.

If a stranger asks usage of face wash and moisturizer is accepted, fairness cream - not willing toaccept usage.

No celebrity endorsement impact. Not related to self confidence. Beauty lies in slim and trim look and physique. Typical Indian middle-class boys told to work hard that will pay off, concept of beauty is more in

physique for Indian men.

Yes, too many product categories.Candidate 2:

Uses moisturizing body lotion. Does not use face wash because he does not feels his face is oily.

Is not beauty conscious. Brand is important, packaging is important, cost an important factor. Gives weightage to peer recommendation. No celebrity impact. Relationship status does not influence usage of beauty products. Stranger asks not willing to accept fairness cream usage. Not relating to self-confidence. Beauty for males lies in athletic body. From childhood itself boys are not encouraged as much as girls towards grooming. Yes, too many product categories.

Candidate 3:

Only face wash, simple to carry, substitute for soap, fresh feeling associated , convenience of usingface wash.

Dont believe in the benefits of face wash, acne control or oil control does not work. Garnier used to freshen up, does not think his face is oily. Recognizes the brand and buys it. Friends had suggested the face wash. Not very beauty conscious. Norms of the society- shaving, to be part of it. Celebrity not making an impact.


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Cost is a factor but a premium product with new listed benefits may attract him. Do not believe in products. Indian people risk averse, chemical usage perceived risky and associated with fairness cream. Not using male beauty products, because of fear of skin damage. Yes, too many product categories.

Candidate 4:

Uses all the male beauty products, face wash, fairness cream and moisturizer. Uses face wash made for general face wash, try and find the products with in his range. Lakme face wash, Vicco Turmeric multipurpose cream, Parachute moisturizing cream. Part of decision making attributed to Mother , gives weight age to peer recommendation. Packaging and brand name is important. Within the budget better packaging is important and acts as

an indicator of better quality

Believes in the listed out benefits and advertised benefits and is willing to try. Celebrityendorsements not much of a factor.

Beauty conscious or not - Faces wash for fairness, fairness cream for acne removal, Moisturizer fortrial.

Clean look is preferred, not fair skin, macho-ism relates to good physique. Athletic build will make agood impression

Mind set - social structure & upbringing, even our gods are dark in color Krishna. Yes too many product categories, does not even know or can differentiate which product is what and

what is the usage - especially body lotion and moisturizer.

FINDINGS

Face wash is primarily used as a substitute for soap, is not perceived so much as a beauty product as

compared to a hygiene product (similar to soap) except that it is easy to carry in a pocket and convenient touse. Packaging, when compared to soap, is also a common preferred and likeable attribute.

Cost is an important factor, as men are not much beauty conscious in general. Brand is perceived as a

synonym for quality and packaging is important, with stronger deeper colours to increase trial rate. Product

listed benefits are sometimes contributing to purchase decision.

People aware of the face wash and not using it can be divided into 2 types:

1. Those who dont believe its usage will aid in anyway. Generally they think their face is not oily orthey do not have acne or black-heads problem and hence it is not necessary for them.

2. Those who perceive it as a chemical product and are not willing to risk using it on their fearingreactions on the skin.

College going people are influenced to a certain extent based on peer recommendation and self-selection

while browsing through products in shops and malls.

Majority expressed that celebrity endorsement does not influence their product choice or buying decision

while it may be a key driver for brand recall.

Reason provided by men for not graduating to the usage of fairness cream and moisturizers was

unanimously that they are not so beauty conscious. They do not think those products work as advertised,


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especially the fairness creams. The basis of this comes from the experience of peers and also female

members of the family.

They agree that there are too many products in the market, with multiple variants that confuse the consumer.

Especially in face wash and moisturizing cream category (some branded as body lotions some as

moisturizing lotions), there are face washes with different ingredients and different listed benefits being

added to the market every day

MALE BEAUTY IN A NUTSHELL MARKETING MIX

CONCLUSION

ANALYSIS

Indian Male between the age group 18-30 years perceives face wash as a substitute for soap. Some think of

it a specialized product for the face and hence perceive some derived benefits of its usage like oil control,

freshness and acne reduction etc. But, they seldom use it as way to become fairer. They are not so beauty

conscious and attribute it to various factors. Upbringing in the family, mind-set of the Indian society,

irrelevance for males are cited as factors. Even the gods in the Indian context like Lord Krishna and Lord

Rama are portrayed to be dark so there is a cultural acceptance also when it comes to males that they can be

dark yet so much powerful and effective. The concept of beauty according to them is having a lean and trimlook, good physique and may be an athletic body. But physique seems to be the most important concept

when it comes to defining the male beauty. When probed on the need for grooming as compared to beauty

products all respondents think that shaving is a part of basic necessity to look clean and it should not be

considered as beautifying themselves. It is like an attempt to fit into the society by conforming to the

existing norms. There are mixed opinions about accepting usage of male beauty products to others but they

are willing to accept the usage of face wash but by not coining it as beauty product. They feeling of self-

confidence is generally not associated with the usage of face wash and other beauty products, as they dont

think it changes their complexion and fairness in anyway. Due to increased usage of face wash and

moisturizers there has been constant dumping of products with very little differentiation among the products

within the same brands or otherwise. They would be well advised to reduce the clutter and come out withwell differentiated products especially suiting the Indian consumer needs.


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CANNIBALIZATION OF MENS FAIRNESS CREAM BY OTHER PRODUCTS ON THE SAME

LINE (FACE WASH AND MOISTURIZERS)

Mens beauty products, is an industry which had its birth in early 2005. Like any other FMCG sector, it even

enjoyed a steep growth rate for over seven years. Growth characteristics have been very usual, declining

after its saturation among the early consumers. HUL Fair and Lovelys growth rate declined by 4.5% and

Emami Fair& Handsome by 14%. Analysts and media cite consumer maturity and ineffectiveness as

reasons for this decline. In fact, firms claim that slowdown in the entire segment affected the momentum oftheir products. It can be looked upon in two ways

a. Consumers, after the launch of a new cream, purchase to test the effectiveness. It wouldnt beappropriate to include such consumers in identifying the potential because it is highly

unlikely that these people will continue using such products once if they find it ineffective

b. Consumer who identify such products as more than mere lightening cream, but as acommodity which is a part of their life.

It is this second category of people that these products can rely upon in a long run. But, very few consumers

in mens beauty segment belong to the second category.It should also be noted that other products on this line also experienced a retarded growth rate. So,

Cannibalization isnt an element that contributes to this decline. As weve covered earlier, this period will be

a tough one for any FMCG product and in this specific case it is even worse due to in sustainability because

of the nature of consumers and their hesitant attitude towards revealing the usage of such products.


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REFERENCES

http://articles.economictimes.indiatimes.com/2013-0818/news/41421066_1_fairness-cream-fairness-products-skin-colour

http://www.dnb.co.in/IndianRetailIndustry/overview.asp http://www.slideshare.net/singhlalit4/lalit-dessertation-report http://www.business-standard.com/article/management/p-g-wakes-up-to-man-power-

111061500070_1.html

http://www.gcimagazine.com/marketstrends/regions/bric/27921834.html?page=1 http://www.beautypackaging.com/articles/2011/06/alls-fair-in-indias-cosmetics-market Business Standard : Mumbai June 15, 2011 Last Updated at 00:37 IST India Male Cosmetics Market - Consumer Insight 2012 Kuick Research 2012 Retailers Association of India - By RAI | March 22, 2013 Economic Times : ET Bureau Nov 12, 2010, 03.04am IST