CB + Lakme + Vizag (RP 2015)

See discussions, stats, and author profiles for this publication at: https://www.researchgate.
net/publication/288989435
The Intricacies of Consumer Perception and Behaviour of Consumers of

Cosmetics in India
Article · May 2015
CITATIONS READS
2 9,223
1 author:
Kameswara Rao Poranki

Dire Dawa University, Dire Dawa, Ethiopia
27 PUBLICATIONS 81 CITATIONS
SEE PROFILE
All content following this page was uploaded by Kameswara Rao Poranki on 02 January 2016.
The user has requested enhancement of the downloaded file.

The Intricacies of Consumer Perception and Behaviour of Consumers of
Cosmetics in India
Kameswara Rao Poranki
Professor in Department of Marketing, FAFS, Al Baha University, Saudi Arabia (KSA)
Email: kamesh_p2001@yahoo.com & kamesh_p2001@rediffmail.com
Abstract
The increase in the usage in Cosmetics and toiletries become manifold in India, because along with
women more and more men are also using for their personal grooming. There are some cosmetics like
body sprays, perfumes and other cosmetics and toiletries are predominantly used by men in India. As a
result the rising demand from men, the Indian market is getting enlarged and many players are coming
out with cosmetic products especially skin care products for men. With the advent of globalization the
increase in usage of cosmetic products and their penetration into many markets leads to high
competition among companies and to exploit opportunities offered by this sector. The researcher has
made an solemn attempt to find out the intricacies of consumer perception and consumer behaviour of
consumers of cosmetics in Visakhapatnam, India.
Originality/value: The researcher has conducted research on Cosmetic products of Lakme, of HUL
(Hindustan Unilever Limited) at Visakhapatnam, Andhra Pradesh of India to garner the intricacies of
Consumer Behaviour and Perception of Consumers of Cosmetics in India.
Keywords: Consumer Behaviour, Perception, Consumer satisfaction, brand awareness and product
quality.
Introduction
The researcher has found that in the history of ancient cosmetics can be traced back to the cultures of
ancient Greece and Roman Empire, where people used herbal concoction with components like henna,
sage and chamomile to darken their hair is clearly evident. It is very interesting and startling fact that
the India's retail beauty and cosmetics industry, currently estimated at $950 million, is likely to almost
treble to $2.68 billion by 2020, experts said and annual growth in the Indian beauty and cosmetics
markets is estimated to remain in the range of 15-20 per cent in the coming years, twice as fast as that
of the US and European markets. According to the editor Massooma at New Age Salon & Spa
magazine and knowledge partner for 'International Beauty Mart' (IBM) 2014, believes awareness in
India of the latest global beauty trends and the numbers are prompting more international players to set
up shop and increase their presence in India. It is reported that the India's cosmetics market is
reportedly growing at 15-20 per cent annually, twice as fast as that of the US and European markets
and the demand for skin whitening products by men as well as women, is driving the trend but other
beauty products are not far behind. Also, since last five years, cosmetics products have seen a growth
of 60 per cent. The most striking fact is that the skin care cosmetics have experienced a relatively
slower growth and products such as anti-wrinkle creams, cleansers and toners are not as popular as
facial creams, moisturizers and fairness creams in this genre. Companies like Pond's and Fair &
Lovely top the list in this segment. The growth in number of salons is 35 percent and hair and beauty
industry is seeing a per capita annual spend of $1.2 which is expected to grow to $ 6.2 by 2015. The
spa and body treatment segment is estimated to grow approximately $772 million over the next five to
eight years. As per the increase in consumption in rural and semi-urban areas, the fast-moving
consumer goods (FMCG) market is set to double from $14.7 billion in 2008-09 to $30 billion in 2014
in order to become the fourth largest sector in the economy with a market size in excess of $14.7
billion," Manoj Mehta, chairman, IBM 2014, said and as per the study titled "Prospects in the FMCG
sector," recently made public by the Associated Chambers of Commerce and Industry of India, FMCG
sector will witness more than 50 per cent growth in rural and semi-urban India by 2014 by experts. At
this juncture, All India Hair & Beauty Association and the Indian Franchise Association and the Indian
www.theinternationaljournal.org > RJSSM: Volume: 05, Number: 1, May 2015 Page 125
Spa and Wellness Association, IBM 2014 will also hold special master classes on trends in hair, make-
up, skin and nail etc (http://timesofindia.indiatimes.com/life-style/beauty/Indias-cosmetics-industry-
may-treble-by-2020/articleshow/27844855.cms). This gives me an opportunity to work on with this
endeavor focusing on the Consumer behavior and perception of women towards cosmetics with special
reference to the Lakme cosmetics products. The primary objective of the study is to understand the
consumer behavior and perception of women by studying the awareness of the cosmetic products
within the consumers and the number of consumers who take the products from Lakme.
Review of Literature
Perception
According to august researchers, the term Perception derived from the Latin perceptio, percipio is the
organization, identification, and interpretation of sensory information in order to represent and
understand the environment across the market (Schacter, Daniel, 2011). However, thel perception
involves signals in the nervous system, which in turn result from physical or chemical stimulation of
the sense organs of human body(Goldstein,2009). According to ( Bernstein, Douglas A,2010) the
vision involves light striking the retina of the eye, smell is mediated by odor molecules, and hearing
involves pressure waves and also, the Perception is not the passive receipt of these signals, but is
shaped by learning, memory, expectation, and attention. It is interesting to note that the same author
explained that the Perception would somehow be split in two. One is the processing sensory input
which transforms these low-level information to higher-level information and for example, it extracts
shapes for object recognition. The second one is the processing which is connected with person's
concept and expectations or knowledge and selective mechanisms like attention that influence
perception. According to the author Goldstein(2009) the Perception depends on complex functions of
the nervous system, but subjectively seems mostly effortless because this processing happens outside
conscious awareness. It was observed that the subject of psychology from the 19th Century, it was
beginning to understand the nature of perception has progressed by combining a variety of
techniques(Gregory, Zangwill,1987). Therefore, the author Kameswara Rao Poranki (2014) has
advocated in his research paper on 'Preferences towards male deodorants consumers and retailers in
Saudi Arabia' that there is a need for understanding the Perception by the marketers before
understanding the 'Consumer Perception' because there is a significant impact on consumer behaviour
as the behaviour of consumers are directly proportional to their perceptions based on previous
experiences and judgments upon the products or services they had used.
Source: tomstinrealty.com
The above figure explains about the consumer perception based on intergenerational influence. It tells
us the strength of family relationship with respect to basic influence through product and brand type
while evaluating the product through the expertise, resource control . perceived similarity while
considering perceived risk of using the products finally leads intergenerational influence. It means
from one generation to another the consumer perception of specific brands of products has been
influenced as per the above conceptual model on consumer perception.
Consumer Behaviour
The researchers defined that the, Consumer Behaviour is the study of individuals, groups, or
organizations and the processes they use to select, secure, use, and dispose of products, services,
experiences, or ideas to satisfy needs and the impacts that these processes have on the consumer and
society at large (Kuester, Sabine 2012). Consumer Behaviour has the combination of the factors like
psychology, sociology, social anthropology, marketing and economics are most relevant. The
consumer behaviour helps the marketers to understand the decision-making processes of buyers, both
individually and in groups such as how emotions affect buying behaviour of either products or
services. Generally the characteristics of individual consumers such as demographics and behavioural
variables in an attempt to understand people's wants and also tries to assess influences on the consumer
from groups such as family, friends, sports, reference groups, and society in general for better
understanding (Lynn R. Kahle, Angeline G. Close ,2011, Elizabeth A. Minton, Lynn R. Khale 2014).
The author Kameswara Rao Poranki has defined the consumer behaviour is the activity of an
individual buyer who responds to various marketing stimuli and make a choice on buying of a product
or service. Another author defined the Customer behaviour study is based on consumer buying
behaviour, with the customer playing the three divergent roles of user, payer and buyer in general and
the research in this field has shown that consumer behaviour is difficult to predict, even for experts in
the field of Marketing (J. Scott Armstrong, 1991).
The History of HUL (Hindustan Unilever Limited)
In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars,
embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing
branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other
famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand
came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati
Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders
Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of
its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now
holds 67.25% equity in the company. Pond's (India) Limited had been present in India since 1947. It
joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986.
Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-
leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme
Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. It was
noted that HUL formed a 50:50 joint venture with the US-based Kimberly Clark Corporation in 1994,
Kimberly-Clark Lever Ltd, which markets Huggies Diapers and Kotex Sanitary Pads. HUL has also
set up a subsidiary in Nepal, Unilever Nepal Limited (UNL), and its factory represents the largest
manufacturing investment in the Himalayan kingdom. The UNL factory manufactures HUL's products
like Soaps, Detergents and Personal Products both for the domestic market and exports to India.
Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring
culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had
significant overlaps in Personal Products, Specialty Chemicals and Exports businesses, besides a
common distribution system since 1993 for Personal Products. The two also had a common
management pool and a technology base. The amalgamation was done to ensure for the Group,
benefits from scale economies both in domestic and export markets and enable it to fund investments
required for aggressively building new categories. In January 2000, in a historic step, the government
decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of
government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into
Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the
government's remaining stake in Modern Foods. On 17th October 2008 , HUL completed 75 years of
corporate existence in India. Interestingly, on 15th November, 2010, the Unilever Sustainable Living
Plan was officially launched in India at New Delhi. HUL completes 80 years of corporate existence in
India on October 17th, 2013.
Source:
http://indianbeautyreview.tumblr.com/post/35391498747/lakme-products-review-know-the-real-
beauty
Source: http://www.gifts-to-pune.com/Product/Products/Ladies-Cosmetics/Lakme-Beauty-Care
Methodology
Simple random sampling is used and the primary data was collected from 100 respondents and out of
these 100 respondents 60 were specifically Lakme customers and the age group of respondents are 18-
20; 21-24: 24-29 and some are more than more than 30 years. The researcher had framed suitable
objectives for this study and also collected secondary data from various published sources as well as
from the websites of the company under study. As per the framed up Hypothesis, this research study
conducted the testing of Hypothesis from the data.
Objectives
1. To know the general perception of consumers towards cosmetics products.
2. To find out the growth of cosmetics sector in a city like Visakhapatnam of India
3. To estimate the awareness of consumers about Lakme.
4. To find out the intricacies of perception towards Lakme products in India.
5. To find out the intricacies of consumers' behavior about cosmetics like Lakme.
Results
It is clearly evident from this research the Lakme is the clear market leader in cosmetics Industry of
India as per the consumer perception across all age groups and income levels out of which 60
respondents out of total 100 respondents are using Lakme products but only 20 are using L'Oreal and
15 consumers are using Garnier and only 5 are using Lotus cosmetics. It was found that during the
investigation the consumers are using some products like mascara, eyeliner, foundation, face-powder,
blushers etc. However, 58 consumers felt that their brand of cosmetics are healthy and 20 consumers
are perceiving these cosmetics are harmful to health. It is interesting to note that 35 consumers are
using these cosmetics as thery are economical. Also, 68 consumers are spending less than Rs. 500 on
their cosmetics but 14 consumers are spending between Rs. 1000- Rs. 2000 in cosmetics. 44 people
appreciate the facial and massage services provided by their favorite cosmetic but 20 consumers out of
60 users who use only Lakme products, while 18 out of 60 uses it because Lakme is very economical
in nature and 34 consumers out of 60 users of Lakme products use the sunscreen lotion the maximum
times, the next product being lip gloss. The consumer awareness about Lakme is good among 28
consumers and 20 consumers out of 60 use Lakeme makeup products, while 17 of them use Lakme
products of skin protection. It is nice to note that 28 consumers are rated Lakme as good while 18
found rated it as excellent and 14 of them rated it as moderate. Finally, was found that the 48
consumers of Lakme are satisfied by the services provided by the company and 53 are fully satisfied
with the products of the company
Conclusion
This research study thus, given insight into various intricacies of consumer perception and consumer
behaviour related to the usage of cosmetic products in India with particular reference to Lakme of
Hindustan Unilever Limited (HUL). It is interesting to note that along with women in India men also
using large quantities of cosmetics for their personal grooming. Naturally, a person grooms himself or
herself perceives that their level of confidence and happiness would increase. Also, this study helps the
research to understand the factors that affect the buying behavior of consumers and to know how can
perception have a positive and a negative impact on the consumer behaviour. Finally, the researcher
has found out that in India, the usage of is increased as the population also increasing day by day and
they are more concerned about their grooming. In this research the researcher finally able to find out
the Intricacies of Consumer Perception and Behaviour of Consumers of Cosmetics in India. The
cosmetic industry has good competition and all the marketers in this field are devising distinctive
strategies to grab the appropriate market share in Indian cosmetics market. The future researchers
could focus on wider areas to assess the consumer perception of cosmetics market of India.
References
1. Bernstein, Douglas A. (5 March 2010). Essentials of Psychology. Cengage Learning. pp. 123–
124. ISBN 978-0-495-90693-3. Retrieved 25 March 2011.
2. Elizabeth A. Minton, Lynn R. Khale (2014). Belief Systems, Religion, and Behavioral
Economics. New York: Business Expert Press LLC. ISBN 978-1-60649-704-3.
3. E. Bruce Goldstein(2009) 'Sensation and Perception;, 8th Edition, University of Pittsburgh and
University of Arizona ISBN-10: 0495601497 | ISBN-13: 9780495601494, pp. 5–7
4. Gregory, Richard. "Perception" in Gregory, Zangwill (1987) pp. 598–601.
5. J. Scott Armstrong (1991). "Prediction of Consumer Behavior by Experts and Novices".
Journal of Consumer Research (Journal of Consumer Research Inc.) 18: 251–256.
doi:10.1086/209257.
6. Kameswara Rao Poranki (2014) & Dr. Abdulbaset Hasouneh, 'Preferences towards male
deodorants consumers and retailers in Saudi Arabia'- International Journal of Current
Research, Vol. 6, Issue, 04, pp.6420-6427, April, 2014. Available online at http://www.journal
journalcra.com
7. Kuester, Sabine (2012): MKT 301: Strategic Marketing & Marketing in Specific Industry
Contexts, University of Mannheim, p. 110.
8. Lynn R. Kahle, Angeline G. Close (2011). Consumer Behavior Knowledge for Effective Sports
and Event Marketing. New York: Routledge. ISBN 978-0-415-87358-1.
9. Schacter, Daniel (2011). Psychology. Worth Publishers.
10. http://timesofindia.indiatimes.com/life-style/beauty/Indias-cosmetics-industry-may-treble-by-
2020/articleshow/27844855.cms
ANNEXURE
Test of hypothesis
Whether the consumers are satisfied with cosmetic products and services of Lakme company.
Customer Cosmetic Services Total
Satisfaction Products
Satisfied 53 48 101
Dissatisfied 7 12 19
Total 60 60 120
Ho : consumers are satisfied.
Ha: consumers are not satisfied.
Level of significance: 5% and Degree of freedom ( DOF): (R-1) (C-1) = (2-1) (2-1) = 1
Tab=7.88 and Test of statistics- (O-E)*2/E
Observed value Expected value (O-E)*2 (O-E)*2/E
(O) (E)
53 50.5 5 0.999
7 9.5 -5 0.526
48 50.5 -5 0.999
12 9.5 5 0.526
Total 1.25
Cal = 1.25; Tab = 7.88
Interpretation: Since, the calculated value (cal) is lesser than tabulated value (tab), null hypothesis (Ho) is
accepted, i.e. alternate hypothesis (Ha) is rejected. It means consumers are satisfied products and services of
Lakme.
1. Which company's cosmetics are you using?
Table showing that cosmetics of which company are most used.
Particulars Frequency
Loreal 20
Lakme 60
Garnier 15
Lotus 05
The above table explains about the usage pattern of the consumers for various cosmetics.
2. Which product are you using most often in a month?
Particulars Frequency Percentage
Hair care Products 12 12
Skin care products 20 20
Body care products 10 10
Make up 58 58
The above table depicts that how frequently the cosmetic products being used by the consumers
3. Do you think that your product provides you with an option of healthy and long lasting harmless?
Yes 58 58%
No 20 20%
May be 17 17%
Not Sure 5 5%
The above table depicts the perception of consumers of cosmetic products, whether these products are harmless
to health or not.
4. What is the reason that motivates you to use the products of a particular company?
Economical 35 35%
Trendsetter 20 20%
Measurable Results 28 28%
Easily available 17 17%
The above table helps us to understand the consumer perception, it means at what extent they are motivated
towards the company understudy related to the above particulars.
5. Approximately how much do you spend in the buying of cosmetics?
Below Rs.500 68 68%
Rs.500+_1000 12 12%
Rs.1000 to Rs.2000 14 14%
Rs.2000 and above 6 6%
The above table throws light on the spending pattern on cosmetics based on consumer behaviour
6. Do you find your cosmetic products economical?
Yes 49 49%
No 30 30%
May be 11 11%
Note Sure 10 10%
The above table tell us the consumer perception whether the cosmetics are economical or not.
7. If you are being asked to choose amongst one of the best product that you use, what would that be?
Sunscreen Lotion 59 59%
Hair Bouncers crème 15 15%
Moisturizers 9 9%
Lip Gloss 17 17%
The above table tells us the product related consumer perception of the respondents
8. What services of your favorite company you appreciate the most?
Steam bath 32 32%
Manicure/Pedicure 14 14%
Facial/Massage 44 44%
Hair Services (Rebounding) 20 20%
The above table depicts the consumer perception about their favorite company of cosmetics
9. What motivates you to buy Lakme products?
Measurable results 20 33.33%
Economical 18 30%
Easily available 12 20%
Trend setter 10 16.66%
The above table tell us the level of motivation on Lakme products
10 .In which cosmetics of Lakme do you invest your money more?
Sunscreen Lotion 34 56.66%
Hair bouncers crème 9 15%
Moisturizers 5 8.33%
Lip gloss 12 20%
The above table tells us that how much money the consumers are willing spend on various brands of Lakme
11.what is your level of information on Lakme as a brand?
Excellent 14 22.33%
Good 28 46.66%
Moderate 10 16.66%
Bad 8 13.33%
The above table depicts the brand awareness of Lakeme among the consumers
12. what is the purpose for which you buy Lakme products?
Skin protection 17 28.33%
Long and Strong hair 13 21.66%
Glow and acne free skin 10 16.66%
Make up 20 33.33%
The above table tells us for which purpose the consumers are buying the products of Lakme.
13. Rating the products offered by lakme as:
Excellent 18 30%
Good 28 46.66%
Moderate 14 23.33%
Poor 0 0%
The above table depicts the consumer perception on the rating of the company
14. Are you satisfied with the beauty services offered by Lakme saloons?
Yes 48 80%
No 12 20%
The above table depicts the consumer perception on the level of satisfaction of the company saloons.
15. Are you satisfied with the products offered by the company?
Yes 53 88.33%
No 7 11.66%
The above table will explain the consumer satisfaction about the company products.
16. Is the site www.lakmeindia.com site useful to you?
Yes 42 70%
No 18 30%
The above table is about the consumer perception on the company website
17. Approximately how much do you invest on Lakme products monthly?
Below Rs.500 40 66.66%
Rs.500-Rs.1000 8 13.33%
Rs.1000-Rs.2000 8 13.33%
Above Rs.2000 4 6.66%
The above table explains about the consumer spending monthly on Lakme products.
18. Do you think that Lakme is a leader in a cosmetic industry?

Yes 68 68%
No 12 12%
Cannot Say 10 10%
Moderate 10 10%
The above table is about the consumer perception about the position of the company in the industry.
19. Would you continue to buy Lakme products even if its price rises by say up to 15%?

Yes 39 65%
No 21 35%
The above table is to find out the consumer perception on Lakme even after the prices are increased up to 15%.
View publication stats

CB + Lakme + Vizag (RP 2015)

Uploaded by

Copyright:

Available Formats

CB + Lakme + Vizag (RP 2015)

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

CB + Lakme + Vizag (RP 2015)

Uploaded by

Copyright:

Available Formats

See discussions, stats, and author profiles for this publication at: https://www.researchgate.

The Intricacies of Consumer Perception and Behaviour of Consumers of

Article · May 2015

Kameswara Rao Poranki

The user has requested enhancement of the downloaded file.

The History of HUL (Hindustan Unilever Limited)

18. Do you think that Lakme is a leader in a cosmetic industry?

Particulars Frequency Percentage

You might also like