CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME PROJECT REPORT NAME OF THE ORGANISATION PLACE FIELD OF STUDY

TOPIC OF RESEARCH : LAKME UNILEVER PRIVATE LTD. : BADI, SOLAN :Marketing : CONSUMER BEHAVIOUR AND P ERCEPTION OF WOMEN TOWARDS LAKME Submitted To Institute of Engineering and Emerg ing Technology, Baddi. In partial fulfillment of the Requirements for the award of Degree of Masters of Business Administration. SUBMITTED BY: SAPNA SOOD 98/08 Page 1 MBA

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME ACKNOWLEDGEMENT I would like to extend my sincere thanks to my advisor, Ms. Neha for providing me with continuous support and guidance which was vital for the s uccessful completion of the project. I would like to take this opportunity to ex press my gratitude to my project guide, Ms Neha, for a significant contribution made by her towards my learning, by way of making herself available, providing l eads in course of the project and most importantly for the tremendous source of encouragement and inspiration she has bestowed on me throughout the project. I e xpress my sincere gratitude to Mr. Vishal kalia for their timely guidance and in providing the required facilities and information for completing the project. I am also very indebted to my parents and my brother who have been with me at eve ry moment of my life.for his kind help and support during the tenure of the proj ect. I also want to take this opportunity to express my sincere gratitude to my friends and all the people who encouraged me throughout the project. I am also t hankfull to god for always being there. Page 2

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME To whomsoever it may concern This is to certify that Miss SAPNA SOOD, a student of INSTITUTE OF ENGINEERING AND EMERGING TECHNOLOGIES, BADDI (IMS) has successfu lly completed her project work of marketing entitled CONSUMER BEHAVIOUR AND PERC EPTION OF WOMEN TOWARDS LAKME under the guidance of her project supervisor Miss.N eha. It is her individual research work done on consumer behavior and perception . I wish her good luck for her career. Authorized signatory Name : NEHA (Project supervisor) Page 3

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME INDEX CHAPTER PAGE NO 1.EXECUTIVESUMMARY...........6-7 2. INTRODUCTION TO NSUMER BEHAVIOUR...8 b). BLACK BOX MODEL......9 c). SELEC IOUR.11-14 3. INTRODUCTION TO PERCEPTION...15-19 a). WHAT IS PERCEPTION, DEFI RCEPTUAL PROCESS16 c). PERCEPTUAL SELECTIVITY...17-18 d). PER NDUSTRY IN INDIA..21-25 6. INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED26-28 a TRODUCTION OF HUL26 b). HISTORY....27 c). COMPETITO VISION....29 b). PURPOSE AND PRINCIPLES.30 c). CODE OF BUSINESS PRI Page d). LAKMES POSITIONING IN TERMS OF PERSONALITY..33-34 4

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME e). HOW LAKME IS INFLUENCING ITS CONSUMERS?......................35 8. PROFILE O F THE ORGANISATION36 9. RESEARCH METHODOLOGY.37-39 a). OBJE CEDURE FOR TESTING HYPOTHESIS....41 c). CHI SQUARE TEST..41-4 Page 5

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME EXECUTIVE SUMMARY Cosmetics and toiletries are not just the domain of women any longer and Indian men too are increasingly taking to the use of more and more bo dy sprays, perfumes and other cosmetics and toiletries. With 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. Globalization will cert ainly increase cosmetic products penetration and all professionals shall equip t hemselves to exploit opportunities offered by this sector. The consumers are the largest economic group in any country and the present day business activities a re because of consumers only. Thus, consumers are the pillars of the economy. Th e consumers are not only the heart of marketing system, but also the controller of marketing functions. But it the modern marketing system consumers sovereignty has become a myth on account of the variety of problems in the process of merch andising. The study of consumer behavior enables marketers to understand and pre dict consumer behavior in the market place; It also promote understanding of the role that consumption plays in the lives of individual. This gives me an opport unity to work on with this endeavor focusing on the Consumer behavior and percep tion of women towards cosmetics with special reference to the Lakmes cosmetics pr oducts. The primary objective of the study is to understand the consumer behavior and perception of women by studying the awareness of the financial products wit hin the consumers and the number of consumers who take the products from Lakme. The introductory chapter gives and insight to the cosmetic industry. It briefly explains about the history of cosmetic sector. It also contain the organizationa l profile of Lakme, stating about its mile stones, vision, products, protection solutions, advertising effectiveness and finally about its marketing strategies and challenges. The second chapter gives a glimpses idea about the area of disse rtation i.e. theoretical background of the study. This part clearly explains the theoretical part of consumer behavior in general. It also includes statement of the problem, need and impotents of the present study and focal objectives of th e dissertation undertaken. The third chapter explains about literature review. I t briefly describes what all are the information source for the present study an d what benefits has derived from the reference of those literatures. Page 6

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Next part explains about the research methodology. With the basic understanding of the study research design was formulated. To collect the data, questionnaires was prepared. The necessary data were collected through personal interviews and interaction with users of Lakme products. This chapter specifically explains ab out the type of research, sample technique, sample size, actual collection of da ta and the tools used for the testing of hypothesis. The last but one chapter co ntains the analysis and interpretation of data collected. The collected data was coded through tally bars and presented in percentage wise and depicted in the f orm of graphical representation. It also includes the hypothesis test about the overall result of the present study. The last chapter is entirely the exploratio n of the research study giving all respondents opinion in nutshell as findings i .e. stating that around percentage of customers behave positively towards the La kme,s products. The dissertation ends up with the suggestions in order to modify the current system for a higher growth and progress. Page 7

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME INTRODUCTION TO CONSUMER BEHAVIOUR Consumer behaviour Consumer behaviour is the study of when, why, how, and where people do or do not buy product. It blends el ements from psychology, sociology, social anthropology and economics. It attempt s to understand the buyer decision making process, both individually and in grou ps. It studies characteristics of individual consumers such as demographics and behavioural variables in an attempt to understand people's wants. It also tries to assess influences on the consumer from groups such as family, friends, refere nce groups, and society in general. Customer behaviour study is based on consume r buying behaviour, with the customer playing the three distinct roles of user, payer and buyer. Relationship marketing is an influential asset for customer beh aviour analysis as it has a keen interest in the rediscovery of the true meaning of marketing through the re-affirmation of the importance of the customer or bu yer. A greater importance is also placed on consumer retention, customer relatio nship management, personalisation, customisation and one-to-one marketing. Socia l functions can be categorized into social choice and welfare functions. Each me thod for vote counting is assumed as a social function but if Arrows possibility theorem is used for a social function, social welfare function is achieved. Some specifications of the social functions are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and weak and strong Pareto optimality. No social choice function meets these requirements in an ordinal scale simultaneous ly. The most important characteristic of a social function is identification of the interactive effect of alternatives and creating a logical relation with the ranks. Marketing provides services in order to satisfy customers. With that in m ind, the productive system is considered from its beginning at the production le vel, to the end of the cycle, the consumer. Belch and Belch define consumer beha viour as 'the process and activities people engage in when searching for, select ing, purchasing, using, evaluating, and disposing of products and services so as to satisfy their needs and desires'.' Page 8

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME BLACK BOX MODEL Marketing Stimuli Product Price Place Environmental Buyer Stimul i characteristics economic attitudes technological political cultural motivation perceptions personality Decision problem Problem recognition Information search Alternative evaluation Buyer response Product choice Brand choice Dealer choice Purcahse timing Promotion demographic lifestyle Purch ase Purchase decision amount The black box model shows the interaction of stimul i, consumer characteristics, decision process and consumer responses. It can be distinguished between interpersonal stimuli (between people) or intrapersonal st imuli (within people). The black box model is related to the black box theory of behaviourism, where the focus is not set on the processes inside a consumer, bu t the relation between the stimuli and the response of the consumer. The marketi ng stimuli are planned and processed by the companies, whereas the environmental stimulus are given by social factors, based on the economical, political and cu ltural circumstances of a society. The buyers black box contains the buyer chara cteristics and the decision process, which determines the buyers response. The b lack box model considers the buyers response as a result of a conscious, rationa l decision process, in which it is assumed that the buyer has recognized the pro blem. However, in reality many decisions are not made in awareness of a determin ed problem by the consumer. y Information search Once the consumer has recognised a problem, they search for information on produ cts and services that can solve that problem. Belch and Belch (2007) explain tha t consumers undertake both an internal (memory) and an external search. y Source s of information include: Personal sources Commercial sources Public sources Per sonal experience Page 9

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME The relevant internal psychological process that is associated with information search is perception. Perception is defined as 'the process by which an individu al receives, selects, organises, and interprets information to create a meaningf ul picture of the world'. THE SELECTIVE PERCEPTION PROCESS: 1. Stage Description - Selective exposure consumers select which promotional messages they will expo se themselves to. - Selective attention consumers select which promotional messa ges they will pay attention to - Selective comprehension consumer interpret mess ages in line with their beliefs, attitudes, motives and experiences - Selective retention consumers remember messages that are more meaningful or important to t hem The implications of this process help develop an effective promotional strat egy, and select which sources of information are more effective for the brand.CV 2. Information evaluation At this time the consumer compares the brands and pro ducts that are in their evoked set. How can the marketing organization increase the likelihood that their brand is part of the consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the functional and psychologic al benefits that they offer. The marketing organization needs to understand what benefits consumers are seeking and therefore which attributes are most importan t in terms of making a decision 3. Purchase decision Once the alternatives have been evaluated, the consumer is ready to make a purchase decision. Sometimes pur chase intention does not result in an actual purchase. The marketing organizatio n must facilitate the consumer to act on their purchase intention. The organisat ion can use variety of techniques to achieve this. The provision of credit or pa yment terms may encourage purchase, or a sales promotion such as the opportunity to receive a premium or enter a competition may provide an incentive to buy now . The relevant internal psychological process that is associated with purchase d ecision is integration.Once the integration is achieved, the organisation can in fluence the purchase decisions much more easily. Page 10

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 4. Postpurchase evaluation It is common for customers to experience concerns aft er making a purchase decision. This arises from a concept that is known as cognit ive dissonance. The customer, having bought a product, may feel that an alternati ve would have been preferable. In these circumstances that customer will not rep urchase immediately, but is likely to switch brands next time. To manage the pos t-purchase stage, it is the job of the marketing team to persuade the potential customer that the product will satisfy his or her needs. Then after having made a purchase, the customer should be encouraged that he or she has made the right decision.it is not effected by advertisement. FACTORS WHICH INFLUENCE CONSUMER B EAHVIOUR: Internal influences Consumer behaviour is influenced by: demographics, psychographics (lifestyle), personality, motivation, knowledge, attitudes, beli efs, and feelings. consumer behaviour concern with consumer need consumer action s in the direction of satisfying needs leads to his behaviour of every individua ls depend on thinking. External influences Consumer behaviour is influenced by: culture,sub-culture, locality, royalty, ethnicity, family, social class, referen ce groups, lifestyle, and market mix factors Consumer purchases are influenced s trongly by or there are four factors. The following are the certain factors whic h influence the consumer behavior: 01. Cultural Factor :Cultural factor divided into three sub factors (i) Culture (ii) Sub Culture (iii) Social Class Culture:T he set of basic values perceptions, wants, and behaviours learned by a member of society from family and other important institutions. Culture is the most basic cause of a persons wants and behaviour. Every group or society has a culture, an d cultural influences on buying behaviour may vary greatly from country to count ry. Page 11

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Sub Culture :A group of people with shared value systems based on common life ex periences and situations. Each culture contains smaller sub cultures a group of people with shared value system based on common life experiences and situations. Sub culture includes nationalities, religions, racial group and geographic regi ons. Many sub culture make up important market segments and marketers often desi gn products. Social Class:Almost every society has some form of social structure , social classes are societys relatively permanent and ordered divisions whose me mbers share similar values, interests and behaviour. 02. Social Factors :A consu mers behaviour also is influenced by social factors, such as the (i) Groups (ii) Family (iii) Roles and status Groups :Two or more people who interact to accompl ish individual or mutual goals. A persons behavious is influenced by many small g roups. Groups that have a direct influence and to which a person belongs are cal led membership groups. Some are primary groups includes family, friends, neighbo urs and coworkers. Some are secondary groups, which are more formal and have les s regular interaction. These includes organizations like religious groups, profe ssional association and trade unions. Family:Family members can strongly influen ce buyer behaviour. The family is the most important consumer buying organizatio n society and it has been researched extensively. Marketers are interested in th e roles, and influence of the husband, wife and children on the purchase of diff erent products and services. Roles and Status :Page The persons position in each group can be defined in terms of both role and statu s. 12 A person belongs to many groups, family, clubs, organizations.

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 03. Personal Factors :It includes Age and life cycle stage (ii) Occupation (iii) Economic situation (iv) Life Style (v) Personality and self concept. Age and Li fe cycle Stage:People changes the goods and services they buy over their lifetim es. Tastes in food, clothes, furniture, and recreation are often age related. Bu ying is also shaped by the stage of the family life cycle. Occupation :A persons occupation affects the goods and services bought. Blue collar workers tend to bu y more rugged work clothes, whereas white-collar workers buy more business suits . A Co. can even specialize in making products needed by a given occupational gr oup. Thus, computer software companies will design different products for brand managers, accountants, engineers, lawyers, and doctors. Economic situation :A pe rsons economic situation will affect product choice Life Style :Life Style is a p ersons Pattern of living, understanding these forces involves measuring consumers major AIO dimensions. i.e. activities (Work, hobbies, shopping, support etc) int erest (Food, fashion, family recreation) and opinions (about themselves, Busines s, Products) Personality and Self concept :Each persons distinct personality infl uence his or her buying behaviour. Personality refers to the unique psychologica l characteristics that lead to relatively consistent and lasting responses to on es own environment. 04. Psychological Factors :Page i) Motivation (ii) Perception (iii) Learning (iv) Beliefs and attitudes 13 It includes these Factors.

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Motivation :Motive (drive) a need that is sufficiently pressing to direct the pe rson to seek satisfaction of the need Perception :The process by which people se lect, Organize, and interpret information to form a meaningful picture of the wo rld. Learning:Changes in an individuals behaviour arising from experience. Belie fs and attitudes :Belief is a descriptive thought that a person holds about some thing Attitude, a Persons consistently favourable or unfavourable evaluations, fe elings, and tendencies towards an object or idea Page 14

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME INTRODUCTION TO PERCEPTION Human beings may differ because of their differences & uniqueness. People often see the same situation/ phenomenon differently within the organization & outside the organization. For example: when there is an acci dent in the factory, the supervisor may treat it as the carelessness of worker w hile the worker may treat it as lack of adequate provision of security measures. Thus the situation remaining the same, cause has been assigned differently by d ifferent group of people. In order to understand why people see the same situati on differently, one has to understand PERCEPTION & its different aspect. WHAT IS PERCEPTION ? Perception is a congnitive process. Cognition is basically bit of information; cognitive process involves the way in which people process/understa nd that information. Perception process involves selecting, organising and inter preting the stimulus. Thus perception is the process selecting, organizing and i nterpreting or attaching meaning to the events happening in the environment. How ever, what one can perceive can be different from objective reality. Their need not be but there is often, disagreement. For example: its possible that all the e mployee in a firm may view it as a great place to work favorable working conditi ons, interesting job assignment, good pay and excellent benefit but as most of u s know, its very unusual to find such agreement. DEFINITION PERCEPTION may be defi ned as a process by which individual organize and interpret their sensory impres sion in order to give meaning to their environment. FEATURES OF PERCEPTION Percep tion is the intellectual process through which a person selects the data from th e environment, organizes it, and obtains meaning from it. Perception is a psycho logical process also. The manner in which people perceive the environment affect s his behavior. Perception, being an intellectual and psychological process, bec omes a subjective process and different people may perceive the same environment al event differently. Page 15

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME PERCEPTUAL PROCESS : Perception process is explained by input-throughput-output approach. This approach emphasizes that there is input which is processed and gi ves output. Perceptual process present three elements of perception. These are: existence of stimuli (objects, event, &people) perceptual mechanism (selecting, organising, & interpretation) and perceptual outputs (attitude, opinion, & value s). Perceptual output along with other determinant of human behavior affects and shape behavior. Let us see how perceptual process works in terms of its three b asic elements. 1. PERCEPTUAL INPUT: The stimuli in the environment- objects, eve nts, or people- can be considered as the perceptual inputs. Thus everything in t he setting where the events occur, or which contributes to the occurrence of the events, can be treated as perceptual input. When the perceiver interacts with a stimulus, sensation take place which starts perceptual process. (Sensation is d escribed as the response of a physical sensory organ. The physical senses are vi sion, hearing, touch, smell, and taste.) 2. PERCEPION MECHANISM: Perceptual mech anism involves three elementsselection of stimuli, organization of stimuli, and interpretation of stimuli. 3. SELECTION OF STIMULI: After receiving the stimuli from the environment, some are selected for further processing while others are screened out because it is not possible for a person to select all stimuli which he see in the environment. There are two types of factors which affects the sel ection of stimuli. These are external and related to stimuli and internal relate d to the perceiver. 4. ORGANISATION OF STIMULI : After the stimuli are selected these are organized in some form of in order to make sense out of that. The vari ous forms of organizing stimuli are figure-ground, perceptual grouping, simplifi cation and closure. 5. INTERPRETATION OF STIMULI: The perceptual inputs that hav e been organized will have to be interpreted by the perceiver to extract some me aning of what is going on in the situation. People interpret the meaning of what they have selected and organized in term of their own assumption of people, thi ngs and situations. They interpret the things as good/bad, beautiful/ugly, and s o on. Interpretation of stimuli is affected by situation under which perception take place and characteristics of perceiver. 6. PERCEPTUAL OUTPUT : Based on per ceptual mechanism which ends with interpretation of stimuli, perceptual output e merges. The output may be in the form of attitudes, opinions, beliefs, impressio n about the stimuli. This output along with other factors affecting human behavi or may result in overt behavior. Page 16

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME PERCEPTUAL SELECTIVITY Perception is a selective process. While selection, certa in aspects of stimuli are screened out and others are admitted. For example: whe n people read a newspaper, they do not read the entire newspaper but read only t hose news which interest them. This is known as perceptual selectivity. This is caused by variety of factors which may be grouped into two categories: 1. Extren al factor 2. Internal factor EXTERNAL FACTORS The external factors are Nature, L ocation, Size, Intensity, Repetition, Novelty & Familiarity, Contrast And Motion . Their impacct on the perceptual selectivity is as follow: 1. NATURE : By natur e we mean, whether the object is visual or auditory, and whether it involves pic tures, peoples or animals. It is well known that pictures attract attention more readily than words. 2. LOCTION : The best location of a visual stimulus for att racting attention is in the center of the page. When this position is not availa ble in the newspaper or a magazine, a position in the upper portion of a page is more favourable than on in the lower portion and left hand side receive more at tention than the right hand side. 3. SIZE : Generally objects of larger or bigge r size attract more attention than the smaller ones. For Example: in an advertis ement in newspaper full page spread attract more attention than a few lines in t he classified section. 4. INTENSITY : The intensity principle states that more i ntentse the external stimulus is, the more likely is to be perceived. A loud sou nd, or bright light is noticed more as compared to soft sound, or dim light. For Example: advertisement on televisions are slightly louder than the regular prog rammes to gain customers attention. 5. REPETITION : The repetition principle stat es that a repeated external environment is more attention- getting than a single one. Repetition increase peoples alertness to the stimulus. For example: Adverti sers use this principle by repeated advertisement of the same product to attract peoples attention. 6. NOVELTY & FAMILIAIRTY :Novelty & familiarity principle sta te that either a novel or a familiar external situation can serve as attention-g etter. New objects or events in a familiar setting, or familiar objects or event s in new setting draw better attention. Page 17

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 7. CONTRAST : Contrast is a kind of uniqueness which can be used for attention g etting. Letters of bold types, persons dressed differently than others, building s of different colors in the same locality,etc. get more attention. 8. MOTION : Motion principle states that a moving object draws more attention as compared to a stationary object. For Example: commercial on televisions (moving ones) get m ore attention than print media. INTERNAL FACTORS While external factors are rela ted to environment stimuli, internal factors are related to the individuals compl ex psychological makeup or oneself. People generally select those stimuli and si tuation which are compatible to their personality, motivation, and other persona l factors. Such factors are- self-concept, inner- needs, response disposition, i ndividual attitude, interest, learning, and experience. A brief description of t heir impact on perception selectivity is as follow: 1. SELF-CONCEPT : The way a person views the world depends a great deal on the concept or image he has about himself. Knowing oneself makes it easier to see others accurately. Peoples own c haracteristics affect the characteristics which they are likely to see in others . They select only that aspects which they find match with their characteristics . 2. INNER NEEDS : Peoples perception is determined by their inner needs. The nee d is feeling of tension or discomfort when one thinks him missing something or w hen he feels he has not quite closed a gap in his knowledge. People with differe nt needs select different items to remember or respond to. When people are not a ble to satisfy their needs they are engaged in wishful thinking, which is a way t o satisfy the needs not in real world but imaginary world , the day dreaming. 3. RESPONSE DISPOSITION : Response disposition refers to a persons tendency to perc eive familiar stimuli rather than unfamiliar ones. Thus, a person perceives the things with which he is familiar. For Example: persons having dominant religious value took lesser time in recognizing such related word as priest whereas they to ok longer time in recognizing words related with economic value such as cost or pri ce. 4. INDIVIDIAL ATTITUDE : The person tries to fit his attitude (whether positi ve or negative) in the situation and perceive something. For Example: if a perso n always thinks negative, he thinks that whatever is happen in his life will be negative, he will perceive everything in the negative way. On the contrary if he thinks positive, he is an optimistic, he will perceive everything in a positive way. Page 18

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 5. INTEREST : If a person is interested in something he will perceive that thing in better way. On the other hand, if the person is not interested in that thing , he will not perceive that thing in a better way. For Example: children watch t elevision with the good interest and curiosity, so they perceive quickly whateve r is shown in TV. 6. LEARNING & EXPERIENCE : People perceive many things differe ntly according to their learning and experience of the past. If a person has wro ng impression or bad past experience of something, he see the things negative an d he perceive that thing in only negative way because it is his experience that forces him to perceive in this way. PERCEPTUAL ORGANISATION People tend to organ ize the stimuli rather than perceiving it as a whole. Following ways: Figure and ground relationships: The figure represents what catches your attention as dist inct and unique, while the ground indicates what you perceive as routine. Groupi ng helps individuals break up information and register it in their memory. That way, even use of multiple stimuli can work and create several associations. Clos ure is a need of consumers as well. They want to take the message to its logical conclusion if the stimulus does not give complete information. Teaser ads take advantage of this. Does the consumer perceive the stimuli as intended? Perceptua l distortion can occur due to a variety of reasons: Physical appearance: The kin d of people you are using in advertisements will distort perceptions, which has to be used to your benefit. Stereotypes that develop can distort perception Firs t impressions of a product/service get carried on for a long time. Jumping to co nclusions: If you cannot present yourself differently, the prospect can jump to conclusions before you even make a presentation, e.g. tele calling Halo effect: One or two dimensions of the stimuli will create broad perceptions on the produc t. Brand extension can be an example. Page 19

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Review of Literature When consumers perceive an advertisement for a certain bran d as promoting another, it is not only ineffective, but even counterproductive ( Kamen, 1987; Poiesz and Verhallen, 1989): it produces an effect that the adverti ser specially wants to avoid. Therefore, perception, although seldomly studied, is a phenomenon that has an impact over its consumers, and researchers. unremitt ing attention, and measures of consumer behavior and perception should be added to the more conventional measures to increase the sales of a product(Poiesz and Verhallen, 1989). Consumer behavior is studied so that we can come to know that how perception and attitude of a person decides that what should be the buying p attern of the consumers (Poiesz and Verhallen, 1989). A. Sengupta and Noopur Agr awal Not only the consumer behavior but the perception of consumers, may be the subject of people buying the products of lakme (Poiesz and Verhallen, 1989). Cor rect identification and confusion are not perfectly related. It is possible that the recipient of the message cannot attribute any particular brand to an advert ising message, in which case he/she is not really confused, but simply does not have any idea. A consumer confusing brands thinks he/she recognises the brand. D epending upon what is the perception of the consumers, it can be positive or neg ative. (Hcker and Verhallen, 1988; Poiesz and Verhallen, 1989). Negative percepti on refers to the extent to which the respondents will not buy the product. Posit ive brand perception refers to the degree to which the other respondents are wil ling to buy the product. Positive Brand perception is an advantage for a brand. Negative brand perception may be a threat to a clear positioningof the product a mongst the women. Brengman et al. (2001) found that Consumers most vulnerable to brand perception generally have higher level of knowledge about the products wh ich they are using. Products are becoming more and more objectively similar with respect to their functionality and product presentation (Poiesz and Verhallen, 1989). Ha (1996) refers to the degree of similarity and proximity of advertiseme nts. (De Pelsmacker and Geuens, 1997a).the more the proximity the more consumers are prone to buy the products. Successful advertising techniques get imitated a nd waves of similar advertising arise. It can be expected that a higher DOSS lea ds to more brand confusion. In parallel, similarity in visual appearance of prod ucts has also been found to be a major reason for confusion in advertising (Loke n and Ross, 1986; Ward and Loken, 1986). Furthermore, in a study of brand percep tion of consumers cited the product or the packaging. as a primary reason for re cognition and buying of the product. (De Pelsmacker and Van Den Bergh, 1997b). Page 20

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME INTRODUCTION TO COSMETICS INDUSTRY IN INDIA India, with a population of nearly a billion people, is a country of contrasts. India's urban population is the main engine that fuels the demand for various cosmetic products. The morphing of India is subtle and the changes are not visible for the first time visitor. However, the market liberalization process that began in 1991, along with the crowning of three Indians as Miss World and Miss Universe during the preceding four years, have made Indian women conscious of their appearance. Consequently, the cosmetic consumption patterns of Indian women have changed, and this trend is fuelling g rowth in the cosmetic sector. The Indian cosmetics and toiletries market grew by 8.7% in current value terms in 2001, with value sales amounting to Rs126 billio n. The market for cosmetics and toiletries in India is characterized by high vol ume sales of low-end toiletry products, while at the same time the legendary eme rging middleclass has generally been fuelling demand for cosmetics and upper-mas s toiletries. Products that are too specialized have yet to be successful on the Indian market. Examples include toners, hand care and other value-added skin ca re products, bath & shower products and aftershave balm. Only the richest consum ers can afford these; indeed, the average consumer may be unaware of their purpo se or even existence. This also explains the relatively poor showing of perfumes , especially the premium variety. This cosmetics and personal care industry has been growing at an average rate of 20 per cent for the last few years. The growi ng 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 produ cts 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 consum ption of many products is well below that of many countries in Asia. The low mar ket penetration of many cosmetics and personal care products offers room for gro wth. Market Overview : The current size of the Indian cosmetic market is approxi mately US$ 600 million. Of this, the fastest growing segment is color cosmetics, accounting for around US$ 60 million of the market. Industry sources estimate a rapid growth rate of 20 percent per annum across different segments of the cosm etics industry reflecting an increasing demand for all kinds of beauty and perso nal care product. Growth has come mainly from the low and medium-priced categori es that account for 90 percent of the Page 21

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME cosmetics market in terms of volume. Nail enamels and lipsticks account for arou nd 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 Lever (HLL) of the Unilever group, Tips & Toes, another domestic player, and Revlon dominate the US$ 60 million color cosmetics market. Multinationals, Revlon of the U.S. a nd L'Oreal's Maybelline has a dominant share of the small premium lipsticks and nail enamels market. Mass-market products account for a major share; while the p remium segment accounts only for a mere 9 per cent in lipsticks and 5 per cent i n nail enamels. The skin care market in India is estimated at US$ 180 million. W ithin the last decade, this segment has seen many consumers slowly shift from th e mass to the premium end of the market. In the skin-care segment, price and vol ume played an equal role in value growth. From a very basic level of most consum ers using only face cream and moisturizers, the market for more specialized skin care products such as sun screens, toners, cleansers, and astringents, dark cir cle removing creams, anti-wrinkle creams and day and night creams seems to have grown steadily in recent years. Moisturizing lotions, fairness creams and face c leansers are the popular categories in the skin-care segment and account for app roximately 60 percent of the skin-care segment. The major players in this segmen ts are Lakme, Ponds, Fair & Lovely of the HLL group with a 50 percent market sha re, followed by players such as J.L. Morison that markets the Nivea range of pro ducts in India, Godrej and Revlon. The size of the hair care market in India is estimated at more than US$ 200 million, 50 percent of which interestingly comes from sales of shampoo. International companies like Unilever through its subsidi ary, Hindustan Lever (Sun silk, Organics, Clinic, and Lux); and Procter & Gamble (with brands such as Pantene, Head & Shoulders) dominate the shampoo market in India with approximately 58 and 20 percent market share respectively. The market for hair creams, mainly used for hair grooming by men is also very small. Hair oiling, an age old tradition of Indians and mainly used as a pre-wash nourishmen t is a major segment in this sector and has giants like HLL and local Dabur and Marico Industries fighting for market share in the hair oil segment. More and mo re shelves in shops and boutiques are stocked with cosmetics from around the wor ld. Since liberalization, many international brands like Avon, Burberrys, Calvin Klein, Cartier, Christian Dior, Estee Lauder, Elizabeth Arden, Lancome, Chambor , Coty, L'Oreal, Oriflame, Revlon, L'Oreal, Yardley, Wella, Schwarzkopf, Escada, Nina Ricci, Rochas, Yves St. Laurent and Japanese cosmetics company, Shiseido h ave entered the Indian Page 22

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME market. The prices of most foreign brands have been fairly high, which has deter red average Indian consumers. International brands cater to a segment that can b roadly be classified as the urban higher income group. Penetration levels of int ernational cosmetics brands in India are still low. Foreign brands currently con stitute only 20 percent of the market. A major reason for low penetration of int ernational brands can be attributed to high pricing. Market Trends Cosmetics and toiletries are not just the domain of women any longer and Indian men too are i ncreasingly taking to the use of more and more body sprays, perfumes and other c osmetics and toiletries. With rising demand from men, the Indian market is getti ng enlarged and many players are coming out with cosmetic products especially sk in care products for men. In the last five/six years, there has been a renewed c raze for herbal cosmetic and personal care products, especially in the skin care segment with the growing belief that chemical-based cosmetics are harmful. Sheh naz Hussain, Biotique, and Lotus Herbals are the major players in this segment. Many companies also expanded their range to include herbal variants. The growing popularity for natural products also attracted many primarily health-care compa nies such as Himalaya Drugs (with its Ayurvedic Concepts range), and Dabur to la unch naturalbased cosmetic products. Import Market Costs for importing products are much higher than producing it in the country. India allows entry of imported cosmetics without any restrictions but the average import tariff on cosmetics p roducts is currently very high at 39.2 percent. This makes imported products ver y expensive for most consumers. Most foreign cosmetics companies selling premium brands have had a difficult time developing the low volume premium market in In dia. Competition The Indian cosmetic market, which has been traditionally a stro nghold of a few major Indian players like Lakme, and Ponds has seen a lot of for eign entrants to the market within the last decade. India is a very price sensit ive market and the cosmetics and personal care product companies, especially the new entrants have had to work out new innovative strategies to suit Indian pref erences and budgets to establish a hold on the market and establish a niche mark et for themselves. HLL and Revlon were the first Page 23

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME to introduce small pack sizes. Revlon introduced its small-range of 8 ml nail po lishes and lipsticks, and was soon followed it its strategy by major Indian comp anies as well. Small pack sizes have proved to be very popular in the Indian mar ket as it offers a consumer lower purchase cost and the opportunity to try new p roducts. . In the skincare segment, from just creams and moisturizers, there has been a upgrade to valueadded products such as under-eye wrinkle removing creams , dark circle removing creams toners, sunscreen lotions, fairness creams, and ma ny more. The color cosmetics market saw new products such as smudge-proof lipsti cks and mascaras, liquid lip color, and long-stay lipsticks being introduced. Th ese specialized applications led to growth in volumes and also enabled companies to price the products at a premium, driving up value growth. L'Oreal markets it s range of specialized hair care products exclusively through salons and beauty parlors. L'Oreal currently is the only company in the market that has a hair col or range tailored exclusively for parlors. The company was also the first to int roduce modern hair color and shampoos for colored hair in the Indian market. A s trong brand promotional campaign, good distribution network, constant product in novation and quality improvement, and the ability to provide a variety of qualit y products are some of the major reasons for the success of most companies. HUL, is currently India's largest cosmetics and personal care products producer and its brands has the dominant share (more than 50 percent) in segments such as per sonal wash, skin care, shampoos, lipsticks and nail polish. Sales Prospects The growing Indian cosmetics market offers promising opportunities for international brands. The growth rate in the cosmetics market reflects an increasing demand f or beauty care products in India. The most promising segments for international companies to pursue are perfumes and fragrances, and specialized/professional sk in care and hair care products. The fastest growing market is however color cosm etics, which account for US$ 60 million of the total market. The rural market in India for cosmetics and toiletries remains is largely untapped. Major domestic players have also not been able to penetrate this market. The urban market itsel f for specialized cosmetic products remains to be fully exploited. The Indian sk in-care market is not yet fully tapped and offers promising prospects as a growt h area. Penetration of color cosmetics is lower than the penetration prospects o f Page 24

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME the skin-care segment. To promote the growth of their products, a dominant player like Lakme have embar ked upon a business plan to establish their exclusive franchised beauty salons a cross major metros in the country. Imported cosmetics have had a major impact on the Indian market. L'Oreal India has established a consumer advisory unit and P onds, as mentioned earlier offers skin care advise through touch-screen kiosks, and telephone help-lines. Beautique - an exclusive one-stop shop for only import ed cosmetic brands set up recently in New Delhi has qualified beauty consultants to provide free advice and make overs to consumers. Market Access Prior to Marc h 31, 1999, India had cosmetics and toiletries on its restricted list of imports and a special import license was required for import of cosmetics and toiletrie s into the country. This regulation has now been done away with and, India today , permits import of cosmetics and toiletries without any restrictions. This has made the Indian market more attractive to foreign cosmetic companies. Imports ha ve been made easier, but not necessarily cheaper. Page 25

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME INTRODUCTION TO HINDUSTAN UNILEVER PRIVATE LIMITED Hindustan Unilever Limited (H UL) (BSE: HUL) is India's largest fast moving consumer goods company, touching t he lives of two out of three Indians with over 20 distinct categories in home & personal care products and food & beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of over Rs. 13,000 cror es. HUL is also one of the country's largest exporters; it has been recognised a s a Golden Super Star Trading House by the Government of India. HUL was formed i n 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. L td. and United Traders Ltd.. It is headquartered in Mumbai, India and has an emp loyee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in June 2007 to Hindustan Unilever Limited. In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Businessworld, one of Indias leading business maga zines . The rating was based on a compilation of the magazine annual survey of I ndias Most Reputed Companies over the past 25 years. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as so aps, tea, detergents and shampoos amongst others with over 700 million Indian co nsumers using its products. It has over 35 brands. Sixteen of HULs brands feature d in the ACNielsen Brand Equity list of 100 Most Trusted Brands Annual Survey (2 008). According to Brand Equity, HUL has the largest number of brands in the Mos t Trusted Brands List. Its a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). Hindustan Unilever's distribution covers over 1 million retails outlets across India directly and it s products are available in over 6.3 million outlets in India, i.e., nearly 80% of the retail outlets in India. It has 39 factories in the country. Two out of t hree Indians use the companys products and HUL products have the largest consumer reach being available in over 80 per cent of consumer homes across India. The A nglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Li mited. HUL was one of the eight Indian companies to be featured on the Page 26

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Forbes list of Worlds Most Reputed companies in 2007. History - Chronology In the summer of 1888, visitors to the Kolkata harbor notic ed crates full of Sunlight soap bars, embossed with the words "Made in England b y Lever Brothers". With it, began an era of marketing branded Fast Moving Consum er Goods (FMCG). Soon after followed Lifebuoy soap in 1895 and other famous bran ds like Pears, Lux and Vim. Vanaspati ghee was launched in 1918 and the famous D alda brand came to the market in 1937. In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothe rs 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 India n public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions. The erst while Brooke Bond's presence in India dates back to 1900. By 1903, the company h ad launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limit ed was formed. Brooke Bond joined the Unilever fold in 1984 through an internati onal acquisition. The erstwhile Lipton's links with India were forged in 1898. U nilever acquired Lipton in 1972, and in 1977 Lipton Tea (India) Limited was inco rporated. Simultaneously, deregulation permitted alliances, acquisitions and mer gers. In one of the most visible and talked about events of India's corporate hi story, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective f rom April 1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, for med a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-lead ing 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. Some of its brands include Kwality Wall's ice cre am, Knorr soups & meal makers, Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam and M oti soaps, Pureit water purifier, Lipton tea, Brooke Bond tea, Bru coffee, Pepso dent and Close Up toothpaste and brushes, and Surf, Rin and Wheel laundry deterg ents, Kissan squashes and jams, Annapurna salt and atta, Ponds talcs and creams, Vaseline lotions, Fair and Lovely creams, Lakm beauty products, Clinic Plus, Clin ic All Clear, Sunsilk and Dove Page 27

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME shampoos, Vim dishwash, Ala bleach, Domex disinfectant, Rexona, Modern Bread, an d Axe deosprays. COMPETITORS Procter and Gamble (P&G) India : HUL faces a fierce competition from P&G India in its key segments i.e. Detergents and Personal Care. It operates in India thorugh three subsidiaries: Procter and Gamble Home Products (100% subsid iary of the company), Procter and Gamble Hygiene and Health care Ltd. (PGHH) and Gillette India Ltd. It has in its portfolio some of P&G's Billion dollar brands such as Vicks & Whisper in health care and Ariel and Tide in detergents segment s. Godrej Consumer Products Ltd. (GCPL): It has two segments: Soap (64% of reven ues) and Personal Care.GCPL is second largest soap player in India after HUL wit h a market share of 9.2%. Personal Care includes hair care products, shaving cre am and other toiletries.On December 11, 2008, it acquired 100% stake in SCA Hygi ene Products which owns the Snuggy brand of baby diapers. Dabur India Limited Dabur India Limited is an India-based fast moving consumer goods company which d eals in healthcare, personal care and food products.In November 2008, Dabur Indi a Limited announced the acquisition of 72.15% of Fem Care Pharma Ltd which is pr imarily engaged in the business of export of personal care products. Colgate-Pal molive (India) Limited : It manufactures a range of products marketed under the Colgate which includes oral care products and Palmolive (skin care and hair care products) brand names. Marico Limited:Marico has a portfolio on high margin "Be auty and Wellness" platform which includes hair oils, soaps, edible oils, skin c are etc. This portfolio has shown a growth of 30% over a period of FY05-08. Page 28

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME INTRODUCTION OF LAKME UNILEVER PRIVATE LTD Lakme is the Indian womans Beauty Sutra inspiring expression of her unique beauty and sensuality.Lakme brings expert pro ducts and services that are borne out of true understanding of the needs of the Indian woman. They help the Indian woman in expression of her best self sensual, original, expressive, alive and intuitive. Lakme inspires her to unleash the po tency of her femininity, beauty and sensuality Key facts Lakme was the first maj or beauty brand in India and takes pride in being the expert on Indian Beauty fo r over 50 years. It is complete beauty brand spanning colour cosmetics, skin car e & hair styling products and extending to beauty services through the network o f Lakme Beauty Salons. Its bond with beauty and fashion is manifested through th e Lakme Fashion Week, which is now the largest fashion event of its kind in the country. Lakme has a foot print of over 1200 assisted sales outlets, which is th e largest span of outlets with Beauty Advisors in the country. Our vision Unilever products touch the lives of over 2 billion people every day whether that's thro ugh feeling great because they've got shiny hair and a brilliant smile, keeping their homes fresh and clean, or by enjoying a great cup of tea, satisfying meal or healthy snack. A clear direction The four pillars of our vision set out the l ong term direction for the company where we want to go and how we are going to g et there: y y y We work to create a better future every day We help people feel good, look good and get more out of life with brands and services that are good for them and good for others. We will inspire people to take small everyday acti ons that can add up to a big difference for the world. Page 29

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME y We will develop new ways of doing business that will allow us to double the si ze of our company while reducing our environmental impact. Purpose & principles Our corporate purpose states that to succeed requires "the highest standards of corporate behaviour towards everyone we work with, the comm unities we touch, and the environment on which we have an impact." y Always work ing with integrity Conducting our operations with integrity and with respect for the many people, o rganisations and environments our business touches has always been at the heart of our corporate responsibility. y Positive impact We aim to make a positive impact in many ways: through our brands, our commercia l operations and relationships, through voluntary contributions, and through the various other ways in which we engage with society. y Continuous commitment We're also committed to continuously improving the way we manage our environment al impacts and are working towards our longer-term goal of developing a sustaina ble business. y Setting out our aspirations Our corporate purpose sets out our aspirations in running our business. It's und erpinned by our code of business Principles which describes the operational stan dards that everyone at Unilever follows, wherever they are in the world. The cod e also supports our approach to governance and corporate responsibility. y Worki ng with others Page 30 We want to work with suppliers who have values similar to our own and work to th e same standards we do. Our Business partner code, aligned to our own Code of

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME business principles, comprises ten principles covering business integrity and re sponsibilities relating to employees, consumers and the environment. A vitality mentality Unilever's mission is to add Vitality to life. We meet ever yday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers a truly multi-loc al multinational. Our long-term success requires a total commitment to exception al standards of performance and productivity, to working together effectively, a nd to a willingness to embrace new ideas and learn continuously. Code of busines s principles y y y Standard of Conduct We conduct our operations with honesty, i ntegrity and openness, and with respect for the human rights and interests of ou r employees. Obeying the Law Unilever companies and our employees are required t o comply with the laws and regulations of the countries in which we operate. Emp loyees Unilever is committed to diversity in a working environment where there i s mutual trust and respect and where everyone feels responsible for the performa nce and reputation of our company. We will recruit, employ and promote employees on the sole basis of the qualifications and abilities needed for the work to be performed. Consumers Products and services will be accurately and properly labe lled, advertised and communicated. Shareholders Unilever will conduct its operat ions in accordance with internationally accepted principles of good corporate go vernance. We will provide timely, regular and reliable information on our activi ties, structure, financial situation and performance to all shareholders. Busine ss Partners Unilever is committed to establishing mutually beneficial relations with our suppliers, customers and business partners. y y Page 31 y

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME y Community Involvement Unilever strives to be a trusted corporate citizen and, as an integral part of society, to fulfil our responsibilities to the societies and communities in which we operate. Public Activities Unilever companies are en couraged to promote and defend their legitimate business interests. Unilever wil l co-operate with governments and other organisations, both directly and through bodies such as trade associations, in the development of proposed legislation a nd other regulations which may affect legitimate business interests.. The Enviro nment Unilever is committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustaina ble business. Innovation In our scientific innovation to meet consumer needs we will respect the concerns of our consumers and of society. Competition Unilever believes in vigorous yet fair competition and supports the development of approp riate competition laws. Business Integrity Unilever does not give or receive whe ther directly or indirectly bribes or other improper advantages for business or financial gain. No employee may offer give or receive any gift or payment which is, or may be construed as being, a bribe. Conflicts of Interests All Unilever e mployees are expected to avoid personal activities and financial interests which could conflict with their responsibilities to the company. Any breaches of the Code must be reported in accordance with the procedures specified by the Chief L egal Officer. Business Partner Code We are committed to working with our busines s partners to achieve high standards and to provide greater transparency on how we work together. Maintaining high standards together To meet the expectations o ur consumers have of our brands as high quality, reliable products, we form clos e working relationships many of them long-term with our business partners. In su pport of this approach, we have developed a Business Partner Code that is compat ible with our Code of Business Principles. The Code makes clear the standards to which we expect our business partners to adhere. It contains 10 principles cove ring business integrity and responsibilities relating to employees, consumers an d the environment. y y y y y y y y Page Business partner code There shall be compliance with all applicable laws and reg ulations of the country where operations are undertaken. There shall be respect for human rights, and no employee shall suffer harassment, physical or mental pu nishment, 32

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME or other form of abuse. Wages and working hours will, as a minimum, comply with all applicable wage and hour laws, and rules and regulations, including minimum wage, overtime and maximum hours in the country concerned .There shall be no use of forced or compulsory labour, and employees shall be free to leave employment after reasonable notice . There shall be no use of child labour, and specifical ly there will be compliance with relevant ILO standards .There shall be respect for the right of employees to freedom of association* .Safe and healthy working conditions will be provided for all employees . y Corporate Governance We have a lways aspired to high standards of corporate governance. Transparency and accoun tability are the two basic tenets of Corporate Governance. We, at Hindustan Unil ever, feel proud to belong to a Company whose visionary founders had laid the fo undation stone for good governance long back and made it an integral principle o f the business, demonstrated in the words above. Our approach to Corporate Governance To succeed, we believe, requires the highes t standards of corporate behaviour towards everyone we work with, the communitie s we touch, and the environment on which we have an impact. This is our road to sustainable, profitable growth and creating long-term value for our shareholders , our people, and our business partners. LAKMES POSITIONING IN TERMS OF PERSONALI TY AND SELF CONCEPT: Lakme is a product range that caters to the beautification needs of not only women in their adult age but in today's context teenagers also . It has a brand personality of someone who takes care of you and your beauty ne eds. It tries to position itself amongst its consumers as a product range that w ill help them look beautiful as is evident from its catchphrases: 1. On top of t he world! 2. Source of radiant beauty1! Lakme has a range of beauty products to offer to its consumers. Some of the ways in which it Page 1. Lakme Hair Color: magic of colors (collage). 33 tries to position itself:

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 2. Lakme (versatile eye shadow collection): rich, long lasting and healthy make up. 3. Lakme fair perfect: For flawlessly fair skin! 4. Lakme face magic: daily wear souffl. 5. Lakme (skin vitalizer): radiant skin, now and forever. 6. Lakme ( moisturizer): radiant skin, now and forever. 7. Lakme nail polish and lipstick: electric brilliance/sensual brilliance 8. Lakme sun expert (sunscreen): sun safe hamesha! (face the sun with a smile) 9. Lakme pure defense: anti-pollution syst em. 10. Lakme Tropical Island (cosmetics): defining the future of fashion. 11.La kme hair care (international): natural hair care 12. Lakme hair next: exclusive range of hairstyle products that give you that salon look instantly. On the basi s of above mentioned positioning strategies Lakme can have the following charact eristics that determine its personality: Someone who takes care of your beauty n eeds. A long lasting beautification product range. Something that is not harsh o n your body or harmful for your beauty. A product that provides you with an opti on of getting beautiful hair. A product that helps you get a beautiful skin. A c osmetic product that you can wear for the entire day and not a special occasion. Someone who tells you right things about looking good. It's an Indian cosmetic brand. Page 34 It covers all facets of beauty care for women.

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME The following factors of Lakme's personality help in differentiation of its prod ucts from the competition: It covers all facets of beauty care. It helps arm the consumer with products to pamper her from head to toe i.e. a complete product r ange. HOW LAKME IS INFLUENCING ITS CONSUMERS? THE CONCEPT OF EGO: According to Freudia n Psychoanalytic theory Lakme tries to position itself on the basis of its appea l to the consumers which have an ego. This means that the consumers of Lakme hav e an impulsive drive for which they seek immediate satisfaction without concern for means of satisfaction. Women all over the world are always expected to look good and Indian women are no exception; More so because of the fact that Indian women in general do not have a fair skin like that of their western counterparts . Thus it becomes but natural for Indian women to try and look good and use beau ty products that help enhance their looks and style. With globalization and libe ralization of Indian economy and the changing demographics and income levels the re is more and more concern to look good as today's Indian woman is no longer co nfined to her home but is a big contributor to the growth of Indian economy. THE CONCEPT OF PERSONALITY GROUPS: Lakme tries to woo the compliant consumers accor ding to Karen Horney's classification4 of personality groups i.e. people who mov e towards others. Those who have desire to be loved, wanted and appreciated. As is earlier stated women are supposed to look good not only in western countries but also in India. Women always appreciate if someone calls them beautiful and i t has become the custom of the society to see women in such a context. So it wou ld be prudent to say that according to the societal norms a women has to look go od at all times and which has a bearing on the psychology of female consumers to wards cosmetic products which help them achieve that desired look. Needless to s ay that Lakme plays on the concept of women wanting themselves to be appreciated for their beauty and being loved for that. Page 35

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME CONCEPT OF PERCEPTUAL SELECTION: On the basis of perceptual selection Lakme has tried to position itself among its consumers in the following ways: Lakme has tr ied to gain the attention of its consumers by line extension and having more and more product depth, packaging and attractive print advertisements. If we look a t the line extensions of Lakme than we would observe that it is in almost all th e segments of cosmetic care ranging from hair care to skin care to beauty salons ! Looking at the product depth it is pretty evident that Lakme has actually trie d to fill in all areas that it can, particularly the nail paint and the lip colo r segment is a big hit among Indian women as it offers them a wide variety of pr oducts in terms of colors as well as various styles that they can choose from. PROFILE OF THE ORGANISATION Name of the company Address of Head office Maharasht ra.india 400020 City State Status Telephone number Email Website Chief executive officer Contact person Mobile no Companys product range: Lakme Lipstick. : baddi :HIMACHAL PRADESH : Private : -+91 2222870622 : info@lakmelever.com : http://la kmeindia.com : Mr.Anil chopra : Richa puranesh- marketing manager : 912222850552 : LAKME UNILEVER PRIVTAE LTD : 165166 hindustan lever house Backbay reclamation , church gate, Mumbai, Page 36

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Lakme Nail Polish. Lakme Eyeliner. Lakme Kajal. Lakme Strawberry Face Wash. Lakm e Radient Rose Powder. Lakme Nail Enamel Remover. Lakme Strawberry Silk Cream La kme Deep Pore Cleansing Milk Page 37

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME RESEARCH METHODOLOGY Research methodology is a careful investigation for inquiri ng in a systematic method and finding solution of a problem. It comprises the de fining and redefining of problem formulating hypothesis, collection and evaluati ng data, making detection and reaching conclusion. This research consists of fol lowing element. OBJECTIVE OF STUDY SOURCES OF DATA RESEARCH DESIGN SAMPLING DESI GN OBJECTIVES OF THE STUDY 1. To understand the attitudes and perception of respond ents towards cosmetics products. 2. To understand the growth of cosmetics sector in todays scenario. 3. To study the respondents awareness towards lakme. 4. To k now people perception towards lakme products available in the market. 5. To unde rstand peoples consumer behavior with reference to cosmetics. Page 38

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME SOURCES OF DATA Primary Source of Data Primary data are those collected by the i nvestigator himself for the first time and thus they are original in character, they are collected for a particular purpose. A wellstructured questionnaire was personally administrated to the selected sample to collect the primary data. Sec ondary Source of Data Secondary data are those, which have already been collecte d by some other persons for their purpose and published. Secondary data are usua lly in the shape of finished products. External Data, was generated from magazin es, research books and internet (websites). RESEARCH DESIGN The study was conduc ted as an exploratory sampling survey method to collect primary and secondary da ta. SAMPLING DESIGN A sample is a representative part of the population. In samp ling technique, information is collected only from a representative part of the universe and the conclusions are drawn on that basis for the entire universe. A random sampling technique was used to collect data from the respondents. A rando m sample is a sample selected from a population in such a way that every member of the population has a equal chance of being selected and the selection of any individual does not influence the selection of any other. The selection is purel y depends on chance. So while conducting the survey, 100 respondents were select ed at random. SAMPLE SIZE Sample size denotes the number of elements selected fo r the study. For the present study, 100 respondents were selected at random. All the 100 respondents were the customers of one or another cosmetic industry. Out of these 100 respondents 60 were specifically Lakme customers. SAMPLE DESCRIPTI ON The respondents of this dissertation was 100 cosmetics users of different cos metics companies in general, out of which 60 respondents were the users of Lakme in particular; as the dissertation was focused on the consumer behavior and per ception of users towards the cosmetic products with special reference to Lakme. The respondents were personally contacted for the purpose of the study. A questi onnaire was used for survey and was answered by the customers of different life insurance companies. Most of the respondents were in age group of 18-20; which w as having a frequency of 68, 14 respondents were in the age group of 21-24, 10 r espondents were in the age group of 24-29 and 8 respondents were more than 30 ye ars. According to gender wise, all were female respondents. Nearly half of the r espondents were students and a big chunk of the rest was Page 39

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME employed women. LIMITATION OF STUDY 1. An underlying assumption for the entire project is that t he details and the feedback received from the population is true. 2. It was diff icult to find respondents as they were busy in their schedule, and collection of data was very difficult. Therefore, the study had to be carried out based on th e availability of respondents. 3. Some of the respondents were not ready to fill the questionnaires and some of them were not ready to come out openly. Page 40

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME TESTING OF HYPOTHESIS The test of hypothesis begins with an assumption about the population from which the sample is drawn. According to Prof.Morris Ham bury, A hypothesis is simply a quantitative statement about a population. Hypothesis test ing deals with a procedure, which accepts or rejects the hypothesis. Hypotheses are of two types: 1. Null Hypothesis 2. Alternate Hypothesis Null Hypothesis The null hypothesis is a very useful tool in testing the significance of difference . It states that there is no real difference in the sample value and population value in the particular value under consideration. This means that the observed difference is due to the random fluctuations. The null hypothesis is denoted by Ho. Alternate Hypothesis As against the null hypothesis the alternative hypothes is specify those values that the researcher believes to hold true, and he hopes that the sample data lead to acceptance of this hypothesis as true. Types of Err ors When a statistical hypothesis is tested there are four possibilities: 1. The hypothesis is true but the test reject it (Type 1 error) 2. The hypothesis is f alse but the test accepts it (Type 11 error). Level of Significance Confidence w ith which the null hypothesis is accepted or rejected depends on what is called significant level. The probability, with which we may reject a null hypothesis, when it is true, is called the level of significance. Therefore the level of sig nificance is the risk, statisticians running in his decision. The level of signi ficance is denoted by a. It is better to keep level of significance at a low perce ntage. It means that we should not reject a true hypothesis. Acceptance Region T his represents the region with which the calculated value of the statistics must lie to accept the null hypothesis. If calculated value lies in this region then the null hypothesis will be rejected. Page 41

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Procedure for Testing Hypothesis 1. Set up a null hypothesis (Ho) and alternativ e hypothesis (H1) appropriate to the test to be conducted. 2. Specify the suitab le level of significance. 3. Decide the test criterion suitable to the test stat istics 4. Calculate the value of the test statistics using the appropriate formu la 5. Make decisions about accepting or rejecting the null hypothesis. If calcul ated value is less than tabulated value, Ho is accepted, else, HA is accepted by rejecting Ho. Tools used for testing of hypothesis Chi- square Test: It is a no n- parametric test. It describes the magnitude of discrepancy between observed v alue and expected value. Higher the value of Chi-square y 2, greater the discrep ancy between the observed values from sample to sample. It is a statistic whose value is always positive and varies from zero to infinity. It is the sum of diff erence between the expected value and observed value. This distribution is a lim iting approximation of multinomial distribution with g as the mean and 2g (nu) a s the variance of the distribution. The test depends on the set of observed and expected values and the degree of freedom g (nu). It is a continuous distributio n, which can be applied to discrete random variables. Degree of Freedom (DOF) It is the number of classes to which the values can assigned arbitrarily with out violating the restrictions or limitations placed. It is calculated using the fol lowing formulae. DOF = (r- 1)* (c 1) where r is the no: of rows C is the no: of columns DOF = (n-1), where n is the no: pairs of observed and expected values. C ondition for Applying Chi-square Test: The total sample size must be reasonably large. Page 42

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME No theoretical cell frequency should be less than 5. In case, the cell frequency is less than 5, then Yates correction factor will be applied. The constraints on the cell frequency, if varies, should be linear. Uses of Chi-square Test: y y y It is used as a test of independence of attribute s. This test brings association, if any, between the attributes. It is used as a test of goodness of fit. In other words, it tests whether the given set of obse rvation will fit in to the distribution (normal, binomial etc) It is used as a te st of homogeneity. In other words, it tests whether a set of readings are more u niform or non-uniform. So with this test we can determine whether two or mor ind ependent random samples are drawn from the same population or not. Limitations of the study 1. An underlying assumption for the entire project is t hat the details and the feedback received from the population is true. 2. It was difficult to find respondents as they were busy in their schedule, and collecti on of data was very difficult. Therefore, the study had to be carried out based on the availability of respondents. 3. Some of the respondents were not ready to fill the questionnaires and some of them were not ready to come out openly. TES T OF HYPOTHESIS Whether the consumers are satisfied with cosmetic products and s ervices of Lakme company. CUSTOMER SATISFACTION SATISFIED DISSATISFIED TOTAL HYP OTHESIS: COSMETIC PRODUCTS 53 7 60 SERVICES 48 12 60 TOTAL 101 19 120 Page 43

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Ho : consumers are satisfied. Ha: consumers are not satisfied. Level of signific ance: 5% Degree of freedom ( DOF): (R-1) (C-1) = (2-1) (2-1) = 1 Tab=7.88 Test o f statistics- (O-E)*2/E OBSERVED VALUE (O) 53 7 48 12 TOTAL Cal = 1.25 Tab = 7.8 8 Conclusion and Interpretation: Since, the calculated value ( cal) is lesser th an tabulated value ( tab), null hypothesis (Ho) is accepted, i.e. alternate hypo thesis (Ha) is rejected. It means consumers are satisfied products and services of LAKME. EXPECTED VALUE (E) 50.5 9.5 50.5 9.5 (O-E)*2 5 -5 -5 5 (O-E)*2/E 0.099 0.526 0.099 0.526 1.25 Page 44

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 1. Which companys cosmetics are you using? Table showing that cosmetics of which company are most used. PARTICULARS LOREAL LAKME GARNIER LOTUS FREQUENCY 20 60 15 05 PERCENTAGE 20% 60% 15% 5% Page 45

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME proportion of women using which cosmetic brand lakme loreal garnier lotus From the above table it can be inferred that: Out of the 100% population only 20 % ladies are using loreal. Out of 100%of population only 60% of ladies are using Lakme. Out of 100% of population only 15% of the ladies are using garnier. Out of 100% of population only 5% of the ladies are using lotus. 2. Which product are you using most often in a month? Table showing that which p roduct is being used most often in a month. PARTICULARS HAIR CARE PRODUCTS SKIN CARE PRODUCTS BODY CARE PRODUCTS MAKE UP FREQUENCY 12 20 10 58 PERCENTAGE 12% 20 % 10% 58% Page 46

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME chart showing that which products are used most. makeup skin care hair care product body care product From the following table these points can be inferred: 12% of the women use hair products on monthly basis. 20% of the women use skin care products on the month ly basis. 10 % of the women use body care products. 58% of the women of the wome n use make up products. 3. Do you think that your product g lasting harmless? Table showing their product provides them with Makeup particulars Yes No May be 0% 17% 5% Page 47 provides you with an option of healthy and lon the number of people who think that think that an option of healthy and long lasting harmless Not sure Frequency 58 20 17 5 PERCENTAGE 58% 2

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME graph showing the number of respondents who think that their cosmetics are healt hy 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 no not sure may be yes Series 1 From the following table we it comes to healthy makeup. omes to healthy makeup, but not all of the products of all sure of the healthiness can infer: 58% of the people trust their brand when 20% of the people do not trust their brand when it c because results use it. 17% of the people think that their brand is healthy. 5% of the people are not at of their products.

4. What is the reason that motivates you to use the products of a particular com pany? Table showing the reasons that motivates the respondents to buy particular product. PARTICULARS ECONOMICAL TRENDSETTER MEASURABLE RESULTS EASILY AVAILABLE FREQUENCY 35 20 28 17 PERCENTAGE 35% 20% 28% 17% Page 48

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME REASONS THAT MOTIVATES RESPONDENTS TO BUY A COSMETIC ECONOMICAL TRENDSETTER MEASURABLE EASILY AVAILABLE From the following table we can infer that: 35 respondents out of 100 respondent s find their cosmetics to be economical. 20 respondents out of 100 respondents f ind their cosmetics to be trend setter. 28 respondents out of 100 respondents fi nd their cosmetics to show measurable results. 17 respondents out of 100 respond ents find their cosmetics to be easily available. 5. Approximately how much do you spend in the buying of cosmetics? Table showing that how much the respondents invest in the buying of cosmetics. P ARTICULARS Below Rs. 500 Rs. 500 Rs. 1000 Rs. 1000- Rs. 2000 Rs. 2000 and above FREQUENCY 68 12 14 6 PERCENTAGE 68% 12% 14% 6% Page 49

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME chart showing that how much the respondents spend in cosmetics. Rs 1000- Rs. 2000 Rs. 500- Rs. 1000 Series 1 more than Rs. 2000 Rs. 500 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 From the following table we can infer the following points: 68 respondents out o f 100 respondents spend below Rs . 500 in cosmetics. 12 respondents out of 100 r espondents spend Rs. 500- Rs. 1000 in cosmetics. 14 respondents out of 100 respo ndents spend Rs. 1000 Rs. 2000 in cosmetics. 6 respondents out of 100 respondent s spend more than Rs. 2000 in cosmetics. 6. Do you find your cosmetic products economical? Table showing that how many respondents find their cosmetics to be economical. P ARTICULARS YES NO MAY BE FREQUENCY 49 30 11 PERCENTAGE 30% 11% Page 50

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME NOT SURE 10 10% chart showing the respondents who find their cosmetics economic or less economic yes no may be not sure From the following table we can infer that: 49 respondents out of 100 respondent s believe that their cosmetics are economical. 30 resondents out of 100 responde nts believe that their cosmetics are not economical. 11 respondents out of 100 r espondents say that not all the products are economical. 10 respondents out of 1 00 respondents are not at all sure of economic reliability of their cosmetics. 7. If you are being asked to choose amongst one of the best product that you use , what would that be? Page PARTICULARS FREQUENCY PERCENTAGE 51 Table showing the best cosmetic product of the respondents of their brand .

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME SUNSCREEN LOTION HAIR BOUNCERS CREME MOISTURIZERS LIP GLOSS 59 15 9 17 59% 15% 9 % 17% chart showing the best cosmetic product of the respondents sunscreen lotion hair bouncers crme lip gloss moisturizers From the following table we can infer that: 59 respondents out of 100 respondent s found sunscreen lotion to be the best product. 15 respondents out of 100 respo ndents found hair bouncers crme to be the best product. 9 respondents out of 100 respondents found moisturizers to be the best product. 17 respondents out of 100 respondents found lip gloss to be the best product. 8. What services of your favourite company you appreciate the most? Page PARTICULARS STEAM BATH FREQUENCY 32 PERCENTAGE 32% 52 Table showing the most appreciated service provided by their favourite company.

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME MANICURE / PEDICURE FACIAL/ MASSAGE HAIR SERVICES( rebounding etc) 14 44 20 14% 44% 20% graph showing the most appreciated services provided by the cosmetic company facial/ massgae hair sevicing Series 1 Category 2 steam bath 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 From the table you infer the following points: 32 respondents out of 100 respond ents like steam bath service. 14 respondents out of 100 respondents like manicur e/pedicure. 44 respondents out of 100 respondents like facial/ massage. 20 respo ndents out of 100 respondents like hair services. 9. What motivates you to buy lakme products? Table showing the reasons which mot ivates the respondents to buy lakme products PARTICULARS FREQUENCY PERCENTAGE Page 53

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME MEASURABLE RESULTS ECONOMICAL EASILY AVAILABLE TREND SETTER 2O 18 12 1O 33.33% 3 0% 20% 16.66% CHART SHOWING THE REASON WHICH MOTIVATES RESPONDENTS TO BUY LAKME PRODUCTS measurable results economical easily available trend setter From the following table it can be inferred that: 20 respondents out of total 60 lakme respondents use lakme products for the measurable results. 18 respondents out of 60 lakme respondents use its products as they are economical. 12 respond ents out of 60 lakme respondents use its products as they are easily available. 10 respondents out of 60 lakme respondents use its products as they are trend se tters. 10 . In which cosmetics of lakme do you invest your money more? Page Table showing the lakme cosmetic in which the maximum investment is done by resp ondents. 54

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME PARTICULARS SUNSCREEN LOTION HAIR BOUNCERS CREME MOISTURIZERS LIP GLOSS FREQUENC Y 34 9 5 12 PERCENTAGE 56.66% 15% 8.33% 20% graph showing that respondents spends maximum in which product 5 4 3 2 1 Series 2 0 hair bouncer and shiner crme sunscreen lotion Series 2 moist urizers lip gloss From the following table we can infer that: 34 respondents out of the total 60 l akme respondents spend maximum money in sunscreen lotion. 9 respondents out of t he total 60 respondents spend maximum money in hair bouncers crme. 5 respondents out of the total 60 lakme respondents spend maximum money in moisturizers. 12 re spondents out of the total 60 respondents spend their maximum money in lip gloss . 11.what is your level of information on Lakme as a brand? Page 55

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Table showing the level of information of respondents on Lakme as a brand. PARTI CULARS EXCELLENT GOOD MODERATE BAD FREQUENCY 14 28 10 8 PARTICULARS 23.33% 46.66 % 16.66% 13.33% graph showing the level of information of resppondents on lakme as a brand good excellent moderate bad From the following table we can infer that: 14 respondents out of 60 lakme respo ndents had excellent knowledge about lakme as a brand. 28 respondents out of 60 lakme respondents had good knowledge about lakme as a brand. 10 respondents out of 60 lakme respondents had moderate knowledge about lakme as a brand. 8 respond ents out of total 60 respondents had bad knowledge about lakme as a brand. Page 12. what is the purpose for which you buy lakme products? 56

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Table showing the purpose for which the respondents buy the lakme products PARTI CULARS SKIN PROTECTION LONG AND STRONG HAIR GLOW AND ACNE FREE SKIN MAKE UP FREQ UENCY 17 13 10 20 PERCENTAGE 28.33% 21.66% 16.66% 33.33% chart showing the purpose for which the lakme products are being used make up skin products long and strong hair glow and acne free From the following table we can infer that: 17 respondents out of total 60 lakme respondents buy lakme skin protection products. 13 respondents out of total 60 respondents buy lakme products for long and strong hair. 10 respondents out of t otal 60 respondents buy lakme products for glow. 20 respondents out of total 60 respondents buy lakme products for make up. 13. Rating the products offered by l akme as: Page 57

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Table showing the rating of the lakme products by its users. PARTICULARS EXCELLE NT GOOD MODERATE POOR FREQUENCY 18 28 14 0 PERCENTAGE 30% 46.66% 23.33% 0% 1 2 3 1: excellent 2: good 3: moderate From the following table we can infer that; 18 respondents out of total 60 lakme respondents rate lakme products as excellent. 28 respondents out of total 60 respondents rate lakme products as good. 14 respo ndents out of total 60 lkame respondents rate lakme as moderate. None of the res pondents rate lakme products as poor. 14. Are you satisfied with the beauty serv ices offered by lakme saloons? Page 58

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Table showing the satisfaction level of the lakme respondents with respect to th e saloons services provided by it. PARTICULARS YES NO FREQUENCY 48 12 PERCENTAGE 80% 20% 1 2 1 depicts yes. 2 depicts no. From the following table we can infer that: 48 resp ondents out of 60 respondents are satisfied with the services provided by the sa loons of lakme. 12 respondents out of 60 respondents are not satisfied with the services provided by the saloons of lakme Page 59

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 15. Are you satisfied with the products offered by the company? Table showing th e whether the respondents are satisfied with the products of lakme. PARTICULARS YES NO FREQUENCY 53 7 PERCENTAGE 88.33% 11.66% 1 2 1 depicts yes. 2 depicts no. From the following table we can infer that: 53 resp ondents out of 60 respondents are satisfied with the products of lakme. 7 respon dents out of 60 respondents are not satisfied with the products of lakme. Page 60

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 16. Is the site www.lakmeindia.com site useful to you? Table showing if site www .lakmeindia.com site useful. PARTICULARS YES NO FREQUENCY 42 18 PERCENTAGE 70% 3 0% 1 2 1 depicts yes 2 depicts no. From the following table we can infer that: 42 respo ndents out of 60 respondents found site useful. 18 respondents out 0f 60 respond ents did not found site useful. Page 61

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 17. Approximately how much do you invest on lakme products monthly? Table showin g that how much the respondents spend in lakme products. PARTICULARS Below Rs. 5 00 Rs. 500-Rs. 1000 Rs. 100-Rs. 2000 Above Rs. 2000 FREQUENCY 40 8 8 4 PERCENTAG E 66.66% 13.33% 13.33% 6.66% 70.00% 60.00% 50.00% 40.00% 30.00% Series1 20.00% 10.00% 0.00% 1 2 3 4 1. depicts money below Rs. 500. ;2. depicts money between Rs. 500-Rs. 1000.;3. d epicts money between Rs. 1000- Rs. 2000.;4. depicts money between Rs 2000 and ab ove. From the following table we can infer that: 40 respondents out of 60 lakme respondents spend below Rs 500. 8 respondents out of 60 lakme respondents spend between Rs 500-Rs. 1000. 8 respondents out of 60 respondents spend between Rs. 1 000- Rs. 2000. 4 respondents out of 60 respondents spend between Rs. 2000 and ab ove. Page 62

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 18. Do you think that lakme is a leader in a cosmetic industry? Table showing th e number of respondents who think that lakme is a leader in cosmetic industry. P ARTICULARS YES NO CANT SAY MODERATELY FREQUENCY 68 12 10 10 PERCENTAGE 68% 12% 1 0% 10% 1 2 3 4 1 depicts yes.;2 depicts no.;3 depicts moderately.;4 depicts cant say. From the following table we can infer that: 68 respondents out of 100 respondents find la kme to be the leader. 12 respondents out of 100 respondents do not find lakme to be a leader. 10 respondents out of 100 respondents are not sure. 10 respondents moderately think that lakme is a market leader. Page 63

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME 19. Would you continue to buy Lakme products even if its price rises by say upto 15%? Table showing if the respondents will use the lakme product even if the pr ice rises by 15% PARTICULARS FREQUENCY YES 39 NO 21 From the following table we can infer that: PERCENTAGE 65% 35% 39 respondents out of 60 respondents will continue using lakme. ut of 60 respondents will stop using lakme if price will rise. 1 2 1 depicts yes. 2 depicts no. From the following table we can infer that: 39 resp ondents out of 60 respondents will continue using lakme. 21 respondents out of 6 0 respondents will stop using lakme if price will rise. Page 64 21 respondents o

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME CONCLUSION, FINDINGS AND SUGGESTIONS FINDINGS 1. Lakme is the clear market leade r across all age groups and income levels. 2. Majority of the respondents ie. 60 respondents out of total 100 respondents are using lakme products. With Loreal in the second number having 20 regular customers of it. 15 respondents rae using Garnier and only 5 are using Lotus cosmetics. This shows that lakme has more nu mber of women using it. 3. The dissertation shows that maximum number of the res pondents are using make up products of their brand like mascara, eyeliner, found ation, facepowder, blushers etc. next the eopleare investing maximum in skin car e products. 4. 58 respondents trust their brand of cosmetics when it comes to he althy make up. 20 respondents do not find their cosmetics to be healthy in the s ence that the brand uses more of chemicals in its compositions. 5. 35 respondent s use their cosmetic products because they are economical in nature, while a maj or portion of the bulk buys the products of a brand because they show measurable results. 6. 68 respondents spend below Rs. 500 on their cosmetics. However ther e are many people ie 14 who spend Rs. 1000- Rs. 2000 in cosmetics. 7. 49 respond ents out of 100 respondents find their cosmetic brand to be economical in nature . 8. 59 respondents out of total of 100 respondents find sunscreen lotion to be the best product of their cosmetic brand. While 17 out of them find lip gloss to be the best part of its brand. 9. 44 people appreciate the facial and massage s ervices provided by their favourite cosmetic company. 32 out of 100 users find s team bath to be very appreciative. 10. 20 respondents out of 60 users who use on ly lakme products, use lakme products because they show measurable results. Whil e 18 out of 60 uses it because lakme is very economical in nature. 11. 34 respon dents out of 60 users of lakme products use the sunscreen lotion the maximum tim es, the next product being lip gloss. 12. 28 respondents have a very good knowle dge about lakme as a brand. 13. 20 respondents out of 60 respondents use lakmes m akeup products, while 17 respondents use lakme products of skin protection. 14. 28 respondents found lakme to be good, 18 found it to be an excellent product, 1 4 respondents , moderately like the products of lakme. 15. 48 respondents are sa tisfied with the services provided by LAKME. 16. 53 respondents are satisfied wi th the products of lakme. Page 65

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME SUGGESTIONS 1. Affordable cosmetic products must be launched, drawing less than 1000 rupees per month. This will attract mores of youg women towards it and will further increase the market share of the company. 2. Lakme should also concente rate on the cosmetic products for the mails. As today even boys are becoming mor e concerned of the way they are looking. More and more boys are turning out to b e metro sexual. This category will rise in the future and lakme must concentrate on catching them so that the company can generate more sales from them. 3. Lakm e must not limit itself to serve only the women, as it will be ignoring a large chunk of looks conscious and metro sexual boys. 4. It would be wise for the comp any to target young people in the above category and grow along with them as the y and the nation prospers. 5. Many respondents in their answer as to why they di d not take lakme product said that lakme does not provide a makeup or sunscreen lotion which is to be put only once as it is not moisture resistant. So lakme sh ould work more in creating a water resistant sunscreen lotion which could stay a ll through the hard sweaty days. 6. More of the saloons should be created in ord er to provide easy accessibility to the consumers of the services and products p rovided by lakme. 7. Lakme can start contests for free makeover of women , as it was being started by dove, sunsilk and ponds in collaboration- be beautiful. 8. Website Changes: a. Lakme must advertise more about its website in the mass med ia so people can gain firsthand knowledge about its products at their convenienc e in a more detailed manner. b. The website is good but instead of having a glos sary as a separate entity, link words which are difficult to understand for a fi rst timer (even if it is as simple as spf) must be marked up (underlined) in the t ext, which upon clicking must open out to a window giving details. c. A page mus t be devoted on why cosmetic products of lakme must be taken plus real life stor ies of how people with use of lakme cosmetics improved their looks. d. Links to other sites extolling the virtues of cosmetics must be given. e. A page devoted to Lakmes beginning as a cosmetic industry must be included in the website to ass ure potential customers that this is one company that will stick around for a lo ng time to come. Exciting contests can be launched for those who visit the websi te. 9. lakme has tied up with HUL hence it must advertise in these websites also . It can also advertise in other beauty related sections of websites like vogue. com and feminaindia.com. Youth sites like mtstylecheckvindia.com, facebook.com, orkut.com, twitter.com etc can also be Page 66

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME targeted. 10. According to Abraham Maslows hierarchy of needs the 2nd step to sel f actualization is the fulfillment of the safety needs. Though people feel the n eed for being presentable and have good looks, a large number live in an ivory t ower and they procrastinate to take decisions regarding this aspect. It is this dormant aspect that Lakme should awaken in people and bring about restlessness a nd unfulfilled feeling regarding their and their familys overall physical groomin g. The next choice then would be cosmetics. This could be brought about by an in novative campaign slogan saying, The decision is now. 11. Lakme must not target pe ople only when they start earning but much before that. To gain the early bird ad vantage they must organize sessions in schools and colleges giving explanations on how the medicure, pedicure, facials, massage etc can in general help in their overall development. . It can also bring about a stronger brand commitment in t his manner. 12. Leverage information technology to service large numbers of cust omers efficiently and bring down overheads. Technology can complement or supplem ent distribution channels costeffectively. It can also help improve customer ser vice levels considerably. 13. Use data warehousing, management and mining to gau ge the profitability and potential of various customer and product segments and ensure effective cross selling. 14. Understanding the customer better will allow cosmetic companies to design appropriate products, determine pricing correctly and increase profitability. 15. Ensure high levels of training and development n ot just for staff but for distribution organizations. Existing organizations wil l have to train staff for better service and flexibility, while all companies wi ll have to train employees to cope with new products and an intensive use of inf ormation technology. The importance of alliances and tie-ups means that companie s will have to integrate related but separate providers into their systems to en sure seamless delivery. 16. Build strong relationships with intermediaries such as agents. The agency force is an important customer interface and companies mus t partner with this group to reach customers and serve them effectively. Page 67

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME CONCLUSION: The different information or benefits derived from the in-depth stud y of the above mentioned information sources are as follows: 1. consumer behavio r and perception study; it helped to know that what actually is consumer beahvio ur and what are the factors that affect the buying behavior of consumers. It als o helped us to know that how can perception have a positive and a negative impac t on the consumer beahviour. 2. cosmetic industry in india- this section helped in knowing tat cosmetic is not a new concept in india. People have been grooming themselves physically. The only difference is the addition of chemicals and tec hnology to our personal grooming. 3. Competition existing in the present insuran ce market; there are many other companies posing tough competition to lakme ie R evlon , garnier, loreal, lotus etc. 4. All the marketing information sources has given a significant contribution to the detailed theoretical perspective for th e research i.e. about consumer behavior an perception. 5. World Wide Web also wo rked as a highly important information source as it provides updated information for the research relating to various areas. Page 68

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME Page 69

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME ANNEXURE LISTOF TABLES TABLE NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13 14. 15 . 16 17. 18. 19. TITLE Table showing the company s cosmetic that the respondents are using. Table showing that which project is being used the most by the respo ndents. Table showing that if their products provide them with an option of long lasting and healthy makeup. Table showing the reasons which motivates the respo ndents to buy the product of that company. Table showing that approximately how much do the respondents spend in cosmetics. Table showing the number ofresponden ts who find their cosmetics economic. Table showing that which product was chose n as the best product by them. Table showing that which services provided by the ir company is most appreciated. Table showing that which is most motivating fact or for the buying of products of lakme. Table showing that in which cosmetic of lakme do they spend most. Table showing that what is the level of information of respondents on lakme as a product. Table showing that what is the most common p urpose for which the respondents buy the lakme products. Table showing the ratin gs given by the respondents to the lakme products. Table showing that if the res pondents are satisfied with the beauty services provided by the lakme. Table sho wing that if the respondents are satisfied with the beauty products provided by the lakme. Table showing the level of usefulness of the site of lakme Table show ing that how much would the respondents would invest on lakme Table showing if l akme is the leader in cosmetic industry Table showing that how many respondents will buy the products of lakme even if the price of it will rise. PAGE NO 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Page 70

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME LIST OF GRAPHS TABLE NO 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13 14. 15. 16 17. 18. 19. TITLE Graph showing the company s cosmetic that the respondents are usi ng. Graph showing that which project is being used the most by the respondents. Graph showing that if their products provide them with an option of long lasting and healthy makeup. Graph showing the reasons which motivates the respondents t o buy the product of that company. Graph showing that approximately how much do the respondents spend in cosmetics. Graph showing the number ofrespondents who f ind their cosmetics economic. Graph showing that which product was chosen as the best product by them. Graph showing that which services provided by their compa ny is most appreciated. Graph showing that which is most motivating factor for t he buying of products of lakme. Graph showing that in which cosmetic of lakme do they spend most. Graph showing that what is the level of information of respond ents on lakme as a product. Graph showing that what is the most common purpose f or which the respondents buy the lakme products. Graph showing the ratings given by the respondents to the lakme products. Graph showing that if the respondents are satisfied with the beauty services provided by the lakme. Graph showing tha t if the respondents are satisfied with the beauty products provided by the lakm e. Graph showing the level of usefulness of the site of lakme Graph showing that how much would the respondents would invest on lakme Graph showing if lakme is the leader in cosmetic industry Graph showing that how many respondents will buy the products of lakme even if the price of it will rise PAGE NO 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 Page 71

CONSUMER BEHAVIOUR AND PERCEPTION OF WOMEN TOWARDS LAKME BIBLIOGRAPHY: LIST OF JOURANALS AND MAGZINES y Ackerman, D. and Gerard J. Tellis , (2001) Can culture affect price? A cross-cultural study of shopping and retail prices, Journal of Retailing, 77, 57-82. y Hofstede, G. (1980) Cultures Consequenc es. CA: Sage Publications. y Hofstede, Geert, (1984) Cultural dimensions in manag ement and planning, Asia Pacific Journal of Management, 1 (2), 81-99. y Kale, Sud hir and Jawn Barnes, (1992) Understanding the domain of cross-national buyer-sell er interactions, Journal of International Business Studies, 23, 101-132. y Kotler , P. (1997) Marketing management: analysis, planning, implementation, and contro l, London: Prentice Hall. y Laura, Milner, Fodness Dale and Speece, Mark W. (199 3) Hofstedes research on crosscultural work-related values: Implications for consu mer behaviour, European Advances in Consumer Research, 1, 70-76. y Mooij, D. (200 4) Consumer Behaviour and Culture: Consequences for Global Marketing and Adverti sing, Thousand Oaks, CA: Sage Publications. y Palmer, A. (2000) Principle of Mar keting, Oxford: Oxford University press. y Rolando, Diaz-Loving, (1998) Contribut ion of Mexican ethno psychology to the resolution of the etic-emic dilemma in pe rsonality, Journal of Cross-Cultural Psychology, l (29), 104-118. y Schiffman, L. G and Kanuk, L. Leslie. (1994) Consumer behaviour, NJ: Prentice Hall. y Schutte , H. and Ciarlante, D. (1998) Consumer Behaviour in Asia, Macmillan Press Limite d. y Solomon, M. R. (1996) Consumer Behaviour, Englewood Cliffs, NJ: Prentice Ha ll. y Usunier, J. C. (2000) Marketing across cultures, London: Prentice Hall. y Williams D. Jerome, Sang-Lin Han and William J. Qualls, (1998) A Conceptual Model of Study of Cross-Cultural Business Relationships, Journal of Business Research. Websites used 1. www.invogue.com 2. www.lakmeindia.com 3. www.google.com 4. www.hindustanunile ver.com 5. www.feminaindia.com Page 72