Marketing Research

SDMIMD

Marketing Research Proposal Lakme Lipsticks

Submitted by: Group No.9 (Sec B) Kritika Bhagel Kushal Parwani Indu J Nandini Sudheer Noopur Khare Sulgadle Manjunath (12084) (12085) (12091) (12092) (12093) (12178)

Marketing Research

SDMIMD

Table of Contents
Executive Summary ................................................................................................................................ 1 Industry Background ............................................................................................................................... 1 Size of the market ............................................................................................................................... 1 Lakme ................................................................................................................................................. 1 Organizational Context ........................................................................................................................... 2 Research Objectives ................................................................................................................................ 2 Research Design...................................................................................................................................... 3 Type of research.................................................................................................................................. 3 Research Question .............................................................................................................................. 3 Research Approach ............................................................................................................................. 3 Research Methodology ........................................................................................................................... 4 Sampling Plan ......................................................................................................................................... 4 Sample ................................................................................................................................................ 4 Sample size ......................................................................................................................................... 4 Location for collecting data ................................................................................................................ 4 Data Analysis .......................................................................................................................................... 5 Sample Table ...................................................................................................................................... 5 Cost and Time Estimates ........................................................................................................................ 5 Time .................................................................................................................................................... 5 Cost ..................................................................................................................................................... 5

Executive Summary
Like all emerging markets, the trends of India's cosmetics industry are expected to follow those of the more advanced countries For example; an expected growth in natural and organic cosmetics will have an impact on the existing market scenario. Local players are dominating the natural cosmetics sector providing cheaper natural alternatives to standard beauty products and foreign brands, according to the recent market research. The cosmetics market has been growing at the rate of 15-20% for the last few years. The sector has witnessed growth mainly from medium and low priced category that accounts for majority revenue share of the cosmetic market. In this context, we are formulating a study on the market acceptance and consumer preference of a lipstick brand, Lakme. We plan to conduct the study in Mysore to know the various factors like customer purchase criteria and preference, their loyalty towards the brand Lakme and the potential customers and their purchase behaviour. Focussing on quantitative and qualitative approach on a representative sample, we expect to arrive at conclusions which can be recommendations or suggestions that the company can adopt.

Industry Background
Size of the market
The cosmetics market in India is valued at Rs.1514 crore. The size of India's colour cosmetics market is Rs.250 crore, that of fragrances is Rs.85 crore while the skin care market size is larger at Rs.400 crore. While lipsticks account for nearly a third of the colour cosmetics market at Rs.90 - Rs.100 crore, the market for nail enamels is estimated at around Rs.110 crore. The remainder consists of products such as mascara, eye-liners etc. In order to study the lipstick market in detail, we have chosen our brand as Lakme.

Lakme
Lakme is an Indian brand of cosmetics, owned by Uniliver. Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it was named after the French opera Lakme, which itself is the French form of Lakshmi, the goddess of wealth, also renowned for her beauty. Indian cosmet Lakme was started in 1952. Lakme produces cosmetics as well as skin and hair care products. This leading Indian cosmetic brand has its own, Lakme Beauty Salons and exclusive Lakme product outlets all over the country. Lakme's share stands at 34 %. Lakme is the overall market leader in the colour cosmetic segment (lip care and nail enamel) with a wide range of products and prices, both. Lakme leads the market with sales of Rs.100 crore. Lakme has recently joined forces with Hindustan Lever Limited (HLL) and calls itself Lakme-Lever.
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Organizational Context
A study is to be conducted to analyse the market situation in Mysore for its lipstick products so as to enhance sales. A part of this analysis may also be used by company to effectively launch the lipstick product in similar cities.

Research Objectives
The main objective is to study of market situation of Lakme lipsticks in Mysore. This will cover present market situation, current & potential customers, Customer Purchase Patterns and Behavior, Potential Customers and Their Lack of Purchase Behavior towards product. Current and Potential Customers: Lipstick demographic is for fashion forward women. This includes average age range from 20-40 because women older than their late thirties are generally not seen in lipstick stores. It is generally targeted towards professional make-up artists; however, most of it is sold publicly so anyone can buy the products. People become aware of these products by word-of-mouth, advertisements & make-up gurus. Customer Purchase Patterns and Behavior: A customer going into store may buy more than one. Understanding their income & referees can help to know products reach. The average customer who shops at Make-up Art Cosmetics makes an average income of two-hundred and fifty thousand dollars annually or more. Some consumers may even like to buy from internet as these products can be checked for & bought right from their make-up rooms. However, some consumers may like to go to stores to have personal one-on-one contact. Customer Selection and Purchase Criteria: Consumer chooses the shades based on their skin color. Sometimes they may go for pallets as well. Potential Customers and Their Lack of Purchase Behavior: Some people though desirous of lipsticks just simply cannot afford it. These customers know where they can get for a cheaper price and could work just as well. Potential customers also include the competitors customers as their choice of not going for Lakme could add sufficient information to analysis.

Research Design
Type of research
We are going by a partly exploratory research and a partly descriptive approach. It is exploratory because we do not use any earlier model as a basis of our study. We start with a preliminary notion of the objective of our study and of its context. During the exploratory research project, these provisional concepts gradually gain precision. It is also partly a descriptive approach as we have formulated certain hypotheses on a prior basis and the questionnaire etc. can be structured or planned beforehand. Focussed research will be done to explore and understand the attitudes of potential customers towards other brands. The choice of data collection method will be quantitative methods like surveys as well as qualitative methods.

Research Question
Some of the questions which will be asked during the survey are: What brands of lipsticks do consumers use? What are the reasons of consumers preferring Lakme lipsticks? What are the reasons of consumers not preferring Lakme lipsticks? What price are consumers willing to pay for a Lakme lipstick? What is the buying pattern of lipsticks in relation with income and age of consumers?

Research Approach
We formulate hypothesis and conduct tests of significance. We design two hypotheses, the null and alternate hypothesis for each test to be conducted. 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) which holds that there has been a change. The hypotheses being tested in this report are: H0: The respondents who prefer Lakme are brand loyal. H1: The respondents who prefer Lakme are not brand loyal.

H0: Respondents are satisfied with the quality of Lakme products. H1: Respondents are not satisfied with the quality of Lakme products.

H0: Respondents react to advertisements, especially endorsements by celebrities H1: Respondents do not react to advertisements

The hypothesis testing will be done using chi-square tests. These hypothesis test results will give us ample information to come to a conclusion about the brand loyalty, overall satisfaction level, advertising/ communication effect etc. With this conclusion drawn, we can make recommendations to the company as to how to improve their brand recognition and acceptance and make changes if needed to the current promotion practices.

Research Methodology
We have decided to collect information mainly through following ways:1) Through questionnaires. 2) Realising the immense potential of internet we are also planning to conduct an online survey as well. In addition to it, we will also be conducting a brand recall test which will enhance the value of our research.

Sampling Plan
We propose a multi stage random sampling to access the preferences and perception of consumers.

Sample
According to our proposed research plan, our sample for consumers will be divided on the basis of income, age group and occupation. Our respondents will be from the urban Mysore.

Sample size
We have selected a sample of 100150 for our study, from the target population.

Location for collecting data

Shopping malls Colleges Residential areas

Data Analysis
Sample Table
Brands Preferred Not Preferred Avon Lakme Mac Maybelline Revlon Others

The data collected through the survey will be analysed in the following ways: Descriptive statistics: weights and variance estimation Analytic statistics

Many different statistical tools will also be used for analysing the data.

Cost and Time Estimates

Time
The research study will be conducted over the span of one and a half months.

Cost
The cost of doing research has been classified into the following heads Logistics Cost including the cost of printing questionnaires. Transportation Cost. Cost borne from incentivizing customers to motive them.