A Project on

A STUDY ON CUSTOMER BUYING BEHAVIOUR TOWARDS

LAKME PRODUCTS IN PANVEL.

Submitted to

KLE College of Science and Commerce, Kalamboli

In Partial Fulfillment of the Degree Bachelor of Management Studies

Under the University Of Mumbai

Submitted By
Khan Shifa Abdul Muttalib
TY.BMS (Marketing)
Roll No.09

Guide By
Prof. DR. Geeta Kohade
(Department of Mangement)

Bachelor of Management Studies

Semester VI
 DECLARATION BY GUIDANCE

This is to certify that Ms. Khan Shifa Abdul Muttalib has worked and duly completed her
Project Work for the degree of Bachelor of Management Studies under the faculty of commerce in
the subject of the Marketing and her project is entitled, “A STUDY ON CUSTOMER
BUYING BEHAVIOUR TOWARDS LAKME PRODUCTS IN PANVEL.”
under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of this has been submitted previously for any Degree or Diploma of any University.

It is her own work and facts reported by her personal findings and investigations.

(Signature of the Faculty Guide) (Name and designation the Guide)

Prof. Dr. Geeta Kohade

Assistant Professor

(Management of Department)
 DECLARATION BY LEARNER

The undersigned Miss Khan Shifa Abdul Muttalib here by, declare that the work embodied
in this project work titled “A STUDY ON CUSTOMER BUYING BEHAVIOUR

TOWARDS LAKME PRODUCTS IN PANVEL.” forms my own contribution to

the research work carried out under the guidance of “Prof. Dr. Geeta Kohade” is a result of
my own research work has not been previously submitted to any other Degree/ Diploma to
this or any other university.

Where reference has been made to previous work of other, it has been clearly indicated as
such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance rules and ethical conduct.

Place:

Date:

Student’s Signature
 Khan Shifa Abdul Muttalib

CERTIFICATE

This is to certify that Miss. Khan Shifa Abdul Muttalib

Class: TYBMS. (Marketing) Roll No: 09. has satisfactory carried out the project
work entitled as “A STUDY ON CUSTOMER BUYING BEHAVIOUR
TOWARDS LAKME PRODUCTS IN PANVEL.” in the academic year 2019-
2020 as a part T. Y. B. M. S. examination.

Prof. Dr.Geeta Kohade

 ACKNOWLEDGEMENT

It gives me great gratification to submit this project to the University of Mumbai as a part of
curriculum of my BMS course. I take this opportunity with great pleasure to present before you this
project on “Lakme” which results changes in consumer behavior.”

I would like to acknowledgment the following as being channels and fresh dimension in the
completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this project.

I would like to thank my Principle, Prof. (Dr) Ghanshyam D. Giri for providing the necessary
facilities required for completion of this project.

I take this opportunity like to express my sincere gratitude towards my project guide Prof. Dr.
Geeta Kohade whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and E-
Library related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
completion of the project especially my Parents and Peers who supported me throughout my
project.
 TITLE

TABLE OF TITLE PAGE NO.

CHAPTER 1. INTRODUCTION
1.1 MEANING
1.2 HISTORY
1.3 INTRODUCTION OF LAKME 9-26
PRODUCTS
1.4 KEYS FACTS
1.5 TOP LAKME COMPETITORS
1.6 PRODUCT LINE OF THE COMPANY
CHAPTER 2. RESEARCH
METHODOLOGY
1.1 OBJECTIVES
1.2 HYPOTHESIS 27-30
1.3 SIGNIFICANCE
1.4 LIMITATIONS

CHAPTER 3. REVIEW OF LITERATURE 31-34

CHAPTER 4. DATA ANALYSIS AND
INTERPRETATIONS 35-44
CHAPTER 5. CONCLUSIONS
5.1 FINDINGS
5.2 SUGGESTION AND
RECOMMENDATIONS 45-48
5.3 LIMITATIONS
5.4 CONCLUSION
ANNEXURE 49
 INDEX

Table of Contents Page No.

Introduction 9-26
Research Methodology 27-30
Review of Literature 31-34
Data Analysis and Data Interpretations 35-44
Findings 45
Suggestion and Recommendations 46
Limitations 47
Conclusion 48

TOPIC
 A STUDY ON CUSTOMER BUYING BEHAVIOUR TOWARDS
LAKME PRODUCTS IN PANVEL.

INTRODUCTION:
MEANING OF CONSUMER BUYING BEHAVIOUR:

Buying behaviour is the decision processes and acts of people/prospective customers involved in
buying and using products.

Kotler (2004, p.601) defined Consumer-buying

behavior as “The buying behavior consumers – individuals and house holds who buy goods and
services for personal consumption.” In his definition word “consumer” referred to that person
who search goods and services and then purchase it for self satisfaction. Consumer term also
refers to two main consuming entities: firstly personal consumers and secondly consumers who
belong to any organization. An individual or personal consumer only purchase goods and
services their own consumption. So here final consumer is any individual person, while those
consumers who belong to any organization purchases any product or service for their
organizational use. These consumers consist of profit and non profit business, government
agencies, institutions; all these organizations must purchase products, equipment and services in
order to operate their firm (Kotler, 2004).

Interaction between people based on certain emotions, moods, affection and feelings is named as
consumer behavior by Peter and Olson (1993) in their study. At the same time their other
definition of consumer behavior explained that those environmental events in which they
exchange ideas and benefits with each other. The term “buying behavior” is referred to people’s
purchase behavior in which they purchase products only for personal consumption and not for business
purposes (Peter and Olson, 1993).

Most marketing researches have used Fishbein’s (1967) attitudinal model for their marketing related studies
more specifically in the field of consumer behavior (Lilien et al., 1992), and this attitudinal model provides
researchers a very helpful lens through the help which they can study and elaborates those factors which can
explain consumer buying intention and adoption. This model states that the major dominance on behavior is
always been determined by intention. Few more major factors other then intention like attitudes, individual
norms, and perceived behavioral control are also been explained as connected to an appropriate set of salient
behavioral, normative, and control beliefs about the behaviour. However, the biggest problem with the
Fishbein’s model was that it only limits its scope to adoption level and does not go beyond to study few
other vital factors which can help in explaining and prediction of consumer continuance behaviour
(repurchase). So to overcome this problem Oliver in 1980s made one another model with the name of “the
expectation-confirmation model” which has covered the area of post-purchase behaviour. This model is
being one of the most famous models which is being used by consumer behavior researchers in their
literature. Its used being more specific in those studies where researchers wanted to explain consumer
satisfaction and repeat purchase. The focal point of this whole model is Satisfaction by which we mean the
level of difference between consumer expectation and perceived performance. The expectation-confirmation
theory states that if the performance perceived by the consumers gets up to the level of his/her expectation
then confirmation is being made which will ultimately leads to satisfied consumer. Bhattacherjee (2001) in
his study found that those consumers which are satisfied after the consumption of product or service will
more likely to continue with the purchase of the same products.
HISTORY OF LAKME

Way back in the early 1950s, an economic survey of spending in India revealed that Indian women were
splurging on imported cosmetics. Nehru was not very happy because it was affecting the forex reserves.
Maintaining the forex reserves was of utmost importance considering the fact that Indian economy was still in
its nascent stage. Nehru hit upon the idea of a home grown beauty brand which would cater to cosmetic needs
of Indian women.

(Although some sources claim that Nehru took up this issue because a certain women’s association
approached him to put forward their concerns about non-availability of affordable beauty products. But
having studied about Nehru’s visions and views, I am of the opinion that he had considered beauty products
as luxury and would have never spent any time/effort to satisfy those women’s luxurious needs. Instead, he
took up the issue because it was affecting forex and related to the economy. Banning such products was
impossible in a democracy, so starting an Indian company was the only solution.)

it was a challenge of its kind because it had to fulfill the needs of “Indian skin” in which foreign brands fell
short and at the same time, have a brand identity which would appeal to the upper middle class women who
were really the ones splurging on expensive foreign branded cosmetics.

Nehru knew that only JRD Tata had the passion and entrepreneurship skills to tackle the above challenges
and personally requested him to come up with a solution, which he readily accepted.
Doing market research to find out the needs of Indian women and hiring experts & chemical
engineers from the beauty industry was not really a challenge for JRD but coming up with a
brand identity certainly was. Finally, after giving it a lot of thought, he named it “Lakmé” after
the French Opera.
 The reason he chose this particular French opera name was
because “Lakmé” derives its name from Sanskrit for “Lakshmi”, the goddess of wealth and
epitome of beauty. It was the perfect name for the company as it was actually bringing wealth to
the nation (by saving precious forex), could correlate itself very well with the beautiful Goddess
and it appealed well to upper middle class women due to its videshi sounding name (“Lakshmi
lipstick” or “Lakshmi eyeliner” would have sounded very desi).

That was the kind of thought process which went into any job which JRD Tata took up and the
results were always exemplary. Lakme was started in 1952 as a 100% subsidiary of Tata oil mill.
It was a hugely successful brand and the rest is history. In 1996, Tata sold its stake in Lakme to
HLL since it felt that HLL being an FMCG company will do better justice to the company and
HLL have continued to efficiently nurture the brainchild of JRD. A recent survey ranked Lakme
to be one of the top 50 most trusted brands in India.
INTRODUCTION ON LAKME PRODUCTS:

Lakmé is an Indian cosmetics brand which is owned by Hindustan Unilever. Having Kareena
Kapoor and Ananya Pandey as the ambassador, it ranked at number 1 among the cosmetics
brands in India. Lakme started as a 100% subsidiary of Tata Oil Mills (Tomco). It was named
after the French opera Lakmé, which itself is the French form of Lakshmi (the goddess of
wealth) who is renowned for her beauty. It was started in 1952 famously, because then Prime
Minister Jawaharlal Nehru was concerned that Indian women were spending precious foreign
exchange on beauty products and personally requested JRD Tata to manufacture them in India.
Simone Tata joined the company as director and went on to become the chairperson.. In 1996,
Tata sold off their stakes in Lakmé Lever to HUL, for Rs 200 Crore(45 million US$).
In the Brand Trust Report 2012, Lakme was ranked 104th among India's most trusted brands and
following year it was ranked 71st on the list. In 2014, Lakme was ranked 36th among India's
most trusted brands according to the Brand Trust Report 2014. The company is the title sponsor
for Lakme Fashion Week (LFW) a bi-annual fashion event which takes place in Mumbai.
AN ALLY TO THE CLASSIC INDIAN WOMAN, LAKMÉ INSPIRES HER TO EXPRESS
THE UNIQUE BEAUTY AND SENSUALITY WITHIN… ENABLING HER TO REALIZE
THE POTENCY OF HER BEAUTY."

T h e c on t emp o r ar y In di a n b ea ut y e x p e r t - La k m é co nti nu ou s l y i n no
va t es t o o f f e r a w i d e r a n ge o f h i gh p er f or m an ce a nd wo r l d c l a ss co
sm e t i cs,
s ki n ca r e p r od uc t s , a n d b e aut y s a l on s . C om bin i n g i nt e rn a t i on a l
co sm e t i c t e c hn olo g y w i t h a n i n - de pt h un d er s t a nd i n g o f t h e In d i a
n w o ma n ’ s n e ed s ,
La k m é a l s o o f f e r s i t s c on sum e r s a c omp r e h en s i v e b e au t y ex p e r i en c
e
t h ro u gh i t s p ro du c t s t h a t a r e i d e a l fo r a v a r i e t y o f In d i an s ki n t o ne s .
.
KEY FACTS:

 La k m é w a s t h e c oun t r y ' s f i r s t cos m e t i c b r an d t o i nt r od u ce m ak

e up t o In d i a n wo me n a nd t a k e s p r i d e i n b e i n g t h e ex pe r t on In d i
a n Be au t y f o r o v e r 50 ye a r s .

 I t i s a c omp l e t e b ea u t y b r a n d sp a nn i ng c o l o u r co sm e t i c s & s ki n c a
re
a n d ex t en di n g t o bea u t y s e r v i c e s t h ro ugh t h e n e t w or k o f La k m é
Be a ut y S a l on s .

 I t s b o nd w i t h b e a uty a n d f a shi on i s m an i fe s t e d t h ro u gh t he La k m é
Fa s hi on W ee k , whic h i s no w t h e l a r ges t f as hi on ev en t o f i t s ki nd
i n t h e c o un t r y.

Launched in 1952, Lakmé is the first home-grown successful cosmetics brand in India.

The classic Indian woman is expressive, confident and redefines the definition and meaning of
beauty. She not only inspires but also aspires to achieve the best.
 Top Lakme Competitors

July 3, 2018 By Hitesh Bhasin

Lakme, owned by Hindustan Unilever is a famous Indian cosmetic brand. It is the number one
cosmetic brands in India. It produces a wide range of products which inspires every woman to
express the unique beauty thereby making them realize the strength of their beauty.

It innovates continuously on various products to offer huge world-class cosmetics, beauty salons,
and skin care products. It combines international cosmetic technology with a deep understanding
of the needs of an Indian woman.

It also provides the consumers complete beauty products that suit many Indian skin tones. Lakme
has created its visibility in the market through high-end beauty parlors or salons, and through
various fashion events’ sponsor.
Through this article let us discuss the top Lakme competitors.

1) M.A.C

MAC (Make-up Art Cosmetics) is a leading cosmetic manufacturer, headquartered in New York,
United States. It was established in the year 1985. It is considered as a leading professional
makeup specialist in the world. They produce products that cater to people of all ages.

The various products of MAC serve the demand of consumers and professional makeup artists. It
is at the lead in the fashion industry and collaborates with leading talents from art and fashion
domain. It offers a wide range of products that blend people with glamorous style. Their products
are available in over 200 locations in about 15 countries across the globe. The company always
focuses on developing new categories of products and target to include 50 collections every year.
Their main goal is to serve the various demands of consumers and professional makeup artist.
Due to their various products, MAC is considered one of the top Lakme competitors.

2) L’OREAL

L’Oreal is a well-known and leading company in the personal care and cosmetic industry.
Founded in the year 1909, L’Oreal is headquartered in France. Their annual sale of various
products is estimated at about $27.2 billion dollars. Their famous products are color cosmetics,
hair care, sun care, skin care and fragrances.

It is a total beauty care company that combines the latest technology with the great quality. It is a
global brand with many international products.

As it is the biggest beauty brand in the world, L’Oreal has a supreme commitment to the
technology, innovation, and research, thereby providing high-quality and brand-new products for
people of all ages. The band consists of five main beauty categories of hair cair, hair color, hair
style, cosmetics, and skin care. There are continuous research and development that takes place
in L’Oreal to ensure the safety of the customers and also for new products. As L’Oreal is a
fastest growing personal care and beauty products, it is considered as one of the top Lakme
competitors in the world.

3) Maybelline

Maybelline is one of the top global cosmetics company in the United States. It helps women to
discover new looks and exhibit their own creativity and individuality. Maybelline provides
scientifically-advanced formulas, radical textures, and trendsetting shades to enhance the beauty
of women. Maybelline produces various products for eyes, faces, and lips.

Their products are available in about 129 countries worldwide. It manufactures more than 200
products by using technologically advanced formulas. The company sells their products across
the world through retail outlets and online shopping. The products of Maybelline are tested for
quality and their makeups are all mineral based. They offer huge choices for each product. Due
to their various products and quality, Maybelline is considered as one of the top Lakme
competitors.

4) Covergirl

An American cosmetic brand, Covergirl is headquartered in Maryland, United States. It was

owned by Noxzema Chemical Company which was later acquired by Procter & Gamble.
CoverGirl provides their products for individual customer service and offers a wide range of
beauty products at reasonable prices. It deals in a wide range of cosmetics like foundations,
concealers, blushes, and lotions for face makeup, eyeshadows, eyeliners, kohl pencils, and
mascara for eye makeup and lipsticks, lip glosses and lip liners.

The Covergirl cosmetics are manufactured with great care and are safe for health, human, and
the environment. They produce a wide range of products that cater to the entire cosmetic
requirements from head to toe and also to all skin types.
The biggest support for Covergirl’s growth happened when it was owned by Procter & Gamble.
This could be because the company also owned some of America’s marquee cosmetic brands
like Olay, SK-II etc. It helped the brand to expand to more regions and also reach out to
customers better. Due to their wide range of products and their availability, Covergirl is regarded
as one of the top Lakme competitors in the world.

5) Colorbar

Colorbar is one of India’s leading beauty brands that is launched in the year 2005. Their
innovative and best in class products of Colorbar make every woman feel beautiful. The products
manufactured by Colorbar meet the international standards.

It is a fastest growing beauty brand that is available in about 65 exclusive stores, more than 900
multi-brand outlets and through partner chains across the globe. The
company’s portfolio includes many products like loose powders, highlighting kits, contour,
primers, concealers, BB creams, blush sticks, compacts, foundations, makeup removers,
lip colors, and wipes for the face.

The strength of the brand lies in its premium packing, continuous product innovations, and its
premium packaging. It is also known for its fast-growing and demanding target segment of
consumers. Their main focus on quality hence all their products are validated by Market
Research Group to suit the needs of the consumer and the markets it caters to. Due to their wide
range of products, Colorbar is regarded as one of the top Lakme competitors.

6) Revlon

An American multinational company, Revlon was found in the year 1932 in the New York City.
The company started with a single product, nail enamel and over the years entered into
production of cosmetics, fragrances, skin care, hair care, and many more.

The Company has their operations in four main divisions which are the professional division,
consumer division, Elizabeth Arden segment, and Other segments.
The company is expert in a wide range of products like concealer, foundation, face powder,
blush, eyeshadow, eyebrow pencil, mascara, nail paint, lipstick, and lip gloss. As their products
reach many customers across the world, it suits any skin types and complexion. Their annual
turnover is estimated at about 2.3 billion USD. The company has high customer engagement by
providing 24-hour online helpdesk facility. This band is connected to prominent celebrities like
Ashley Graham, Halle Berry, Emma Stone, and many more. Due to their various products
available for customers, Revlon is considered as one of the top Lakme competitors.

7) Avon

Avon is a well-known beauty company headquartered in London, United Kingdom. Founded in

the year 1886, Avon is the fifth largest beauty company in the world. Avon produces various
products like makeup, skin care, perfume, toiletries, and fashion.

Their products are being sold successfully in places like America, Europe, USA, UK, Middle
East, and the Asia Pacific. The company’s portfolio includes the production of beauty, home, and
fashion products. The company mainly sells the products to the consumer through direct
selling channel. Avon mainly focuses on women as their target customers, because of which,
their products are mainly for the woman. Their products cater to all the beauty requirements.

Their products are produced after careful research and make sure of the feasibility of the product
in the market. As technology is in great use these days, Avon makes use of technology to reach
out to the customers and other stakeholders. Due to their various products, Avon is considered as
one of the top Lakme competitors.

8) NYX

NYX is a cosmetic company that is a part of L’Oreal group. The company is headquartered in
Los Angles. The company provides various makeup and cosmetic accessories. Its wide range of
products includes powder, blushers, lip pencils, lipstick, lip gloss, bronzer, concealers, setting
sprays, contour, highlight, eyeliners, and many more.
It also provides various tools accessories used in the beauty segment. Their brand is sold through
many retailers, fashion and beauty stores, independent shops, beauty supply stores and online
store. NYX cosmetics are one of the fastest growing cosmetic companies.

It produces high-quality and professional cosmetic products and also packed in a unique style.
As it is one of the fastest growing cosmetic companies, NYX is considered as a strongest Lakme
competitor.

9) Bobbi Brown

An American cosmetic company, Bobbi Brown, produces and sells many cosmetic products like
skin care products, color cosmetics, and makeup tools and accessories. It is an international
prestigious beauty brand that permits women to hold and enhance their individual beauty. The
company produces mascaras, eyeshadows, brows, foundation creams, concealers, and many
more. The company was founded in the year 1991 by Bobbi Brown, a makeup artist who turned
into an entrepreneur. It produces great products with high quality that every woman prefers it.

The company serves their customers through many duty-free stores and other personal retail
shops globally. Their products are also available for purchase online. Due to their wide range of
products, Bobbi Brown is considered as one of the top Lakme competitors in the world.

10) Clinique

Clinique was established in the year 1968, is a popular American brand, It is a personal care and
cosmetic company that manufactures toiletries, skin care products, cosmetics, and fragrances.
The products of this brand are available in high-end department stores located in the USA. This
brand can be used for people who have sensitive or problematic skin.

It is considered one of the biggest skin care and cosmetic brands in the world. Clinique stores are
seen in across 135 countries in the world. The products of Clinique are free from allergies and
perfume. They also sell non-comedogenic makeup products will more prices.
Clinique produces high-quality products and is available at varied locations. The products of
Clinique are free from chemicals. As they are into manufacturing of many products, Clinique is
considered as one of the top Lakme competitors.

11) LA Girl

Also regarded as a top Lakme competitor, LA Girl is an affordable luxury cosmetic brand that
produces various products. It produces top quality color cosmetics for all makeup users.

The various products of LA Girl create a spin on beauty to be inspired through the art of color. It
produces various cosmetic products for eyes, lips, face nails, and accessories.

With an incredible selection of high-quality products that cater to customers across the globe,
L.A. Girl has become a targeted brand that offers beauty without compromise. Their products are
available through the offline and online store. As LA Girl is one of the fastest growing
companies, it is regarded as one of the top Lakme competitors.

From being the contemporary Indian beauty expert to becoming the flag-bearer of the latest
makeup trends and styles that hit the runway, Lakmé as a brand continues to be innovative with
its approach towards the world of makeup and beauty.

Whether it is products that are synthesized to meet every Indian woman’s requirements, or the
world-class hair, beauty and skin care services offered at Lakmé Salons, we at Lakmé are proud
to deliver only the finest!
PRODUCT LINE OF COMPANY:

LAKME ABSOLUTE GEL STYLISH

Gel perfection on your nails is now a dream come true with Lakmé Absolute Gel Stylist nail
colours. It delivers hi-shine, has great coverage and is available in rich and intense colours.
Recommended by Lakmé Makeup Experts, get professional finish gel nails every single time.
LAKME 9to5 PRIMER +MATTE LIPSTICK

With a smooth application and an intense colour payoff, the Lakmé 9to5 Primer + Matte Lip
Colors come with a built-in primer that sets a flawless matte base and evens out your lips.
Available in 30 highlight pigmented and work-ready shades that last up to 12 hours, touch-ups
are now a thing of the past.
MRP inclusive of all taxes on all products
Net Quantity: 3.6 g
LAKME ABSOLUTE INFINITY EYESHADOW PALETTE

For those who love getting artsy with their eyes, say hello to the all new Lakmé Absolute Infinity
Eyeshadow Palette - Midnight Magic ! Turn heads with shades of dark blue, berry, purple, green
and brown available in the Midnight Magic palette. Get experimenting with these dazzling and
enigmatic shades. Offbeat or classic, subtlety or drama... whatever your mood be, Lakmé
Absolute Infinity Eyeshadow Palettes are here to stay!
MRP inclusive of all taxes on all products
Net Quantity: 12 g

LAKME ABSOLUTE HYDRA PRO GEL CRÈME

Feel an Instant rush of hydration with Lakme Hydra Pro Range. Lakme Absolute Hydra Pro Gel
Crème locks in hydration and improves skin texture, reduces moisture loss giving your skin a
dewy – fresh, hydrated look. This lightweight gel formula is infused with revolutionary water
bank molecule, hyaluronic acid, it instantly plumps up skin. It is clinically proven to instantly
boost skin hydration* by 70% and lock in hydration for 72 hours. For Superior results use Lakme
Absolute Hydra Pro Gel Crème during the day and Overnight gel before going to bed to get
supple, fresh looking skin.
MRP inclusive of all taxes on all products
Net Quantity: 50g
RESEARCH OF METHODOLOGY:

1 Lakme products are helpful in creating awareness and perception among customers.
2 Advertisements develop self-concepts in order to induce purchase decisions.
3 Lakme is an admired beauty brand and a leader in the beauty industry.
4. With and in depth understanding of international cosmetic technology and beauty and skin care
needs of Indian women, Lakme offers an all-round beauty experience through its products and
services at Lakme salons.

OBJECTIVES:
-To know about consumers behavior towards lakme products.

-To know preference of consumers towards lakme.

-To know satisfaction of lakme products.

-To know problem faced by lakme products.

-To know how oftenly customers purchase lakme products.

HYPOTHESIS:

NULL HYPOTHESIS

Different demographic factors are not associated with consumer buying behaviour.

ALTERNATIVE HYPOTHESIS

Different demographic factors are associated with consumer buying behaviour.

SIGNIFICANCE OF CUSTOMER BUYING BEHAVIOUR:

Understanding consumer behavior is essential for a company to find success for its current products
as well as new product launches. Every consumer has a different thought process and attitude
towards buying a particular product. If a company fails to understand the reaction of a consumer
towards a product, there are high chances of product failure.

1. Consumer Differentiation:
In marketing, consumer differentiation is a way to distinguish a consumer from several other
consumers. This helps to make a target group of consumers with the same or similar behavior.

2. Retention of Consumers:
Consumer behavior is not just important to attract new customers, but it is very important to retain
existing customers as well. When a customer is happy about a particular product, he/she will repeat
the purchase. Therefore, marketing the product should be done in such a way that it will convince
customers to buy the product again and again.
Thus, it is very evident that creating customer and retaining them is very important. This can be
done only by understanding and paying attention towards the consumer’s buying behavior.

3. Design Relevant Marketing Programe:

Understanding consumer behavior allows you to create effective marketing campaigns. Each
campaign can speak specifically to the separate group of consumers based on their behavior.
For example, while targeting kids market, you may have to look out for venues such as TV ads,
school programes and blogs targeting young mothers. You will need to take different messaging
approaches for different consumer groups. 

4. Predicting Market Trend

5. Competition:
6. Innovate New Products:
7. Stay Relevant in the Market
8. Improve Customer Service
LIMITATIONS IN CUSTOMER BUYING BEHAVIOUR

Consumer buying behavior is a psychological process that is important to businesses and

marketing professionals. Consumer buying behavior relates to the identification of consistent
stages of decision making used in every purchase situation. The process begins with need
recognition, followed by information gathering, a purchase and finally, post-purchase evaluation.
Marketers rely on an understanding of buyer behavior to effectively position products and
services. However, consumer buying behavior does have limitations.

1. Inconsistency

One of the biggest drawbacks of relying too heavily on consumer buying behavior is that
consumers rarely apply the same steps in the same way for every product and service purchase.
This makes it more difficult for marketers trying to stimulate a need or to offer messages that
enhance the likelihood of a purchase for their brand. Thus, most companies have to perform more
research into their particular market segments and how they approach their brand.

2. Limited Buyer Interest

Another primary limitation for marketers using the consumer buying behavior model is that
consumers sometimes are much less involved in a purchase decision. For instance, someone
buying laundry detergent is generally less involved in the purchase than someone buying a car or
washer and dryer. Thus, the ability of marketers to affect consumers by analyzing buyer behavior
is limited. Consumers that are less involved spend less time seeking or viewing information about
the purchase.

3. Social and Cultural Influences

Marketers spend significant time trying to interpret consumer buying behavior related to their
products, but they must also understand how each given customer is influenced externally by
social relationships and culture. Selling barbecue to Americans for the Fourth of July is fairly
predictable. However, knowing how a given customer is influenced by family, friends and their
community for purchases of appliances, food and household items is significantly more complex.

4. Applying Stimuli

In its "Buyer Behavior" overview, MMC Learning points out that marketing tries to respond to
consumer buying behavior by communicating with stimuli expected to elicit the desired consumer
response. For instance, a fast food restaurant may promote its late night drive through window to
inspire a desire from the market for a late night meal. Unfortunately, MMC Learning notes that
buying behavior involves a number of complicated psychological variables related to consumer
perception, motivation, learning, memory, attitude and personality. Accurately predicting
response to a given message often demands significant marketing research and focus group
studies.
 REVIEW OF LITERATURE
This part of the chapter presents a review of existing literature on consumer behaviour towards
cosmetics in order to gain insight into the research work. Such reviews highlight the significant
studies not only in India but throughout the world. This review also focuses on the preferences,
advertisements, the cosmetic markets and the consumption pattern of cosmetic consumers. This
chapter analyses the extensive literature about the behaviour of cosmetic consumers, including
their attitudes and perception.

As a natural human tendency when consumers want to purchase a product, they consult the
existing users first and obtain a preliminary opinion. They also gather information about special
features in it, make a decision to purchase, buy and use the product, then evaluate the quality of
the product.

Many women prefer cosmetics because it makes them feel confident and pretty. Women’s choice
of cosmetics has changed from luxury category to an essential category. Due to the advent of
satellite television the awareness level of women towards cosmetics has increased a lot. They
feel that cosmetics highlight their attractive features and conceal their facial flaws. The
increasing fashion trends, beauty consciousness, high disposable income diversity, consumer
demands insist 19 the cosmetic consumers to choose different cosmetic items. The following
reviews deals with the awareness level and preference level of cosmetic consumers.

By Indiaretailing Bureau

December 13, 2019

Lakme Salon brings alive the vision to ‘Beautify the Future’ by educating talent in 115 Lakme
Academy powered by Aptech centres and creating career and entrepreneurship opportunities for
4000+ team members across 460+ salons across the country.

Taking ahead this mission, Lakme Salon launched its network-wide sustainability initiative
under the campaign ‘Happy New You’. One of the largest chains with 460+ salons across 154+
cities, Lakme Salon aims to reduce its carbon footprint and build a sustainable business model
through this initiative, while also inspiring their 1 million+ customers to adopt environment
friendly practices.

Lakme Salon took the first steps in this direction in 2018 by making small changes in their
operations i.e switching to LED lighting, installing water-saving nozzles and maintaining
optimal a/c temperatures in the salons. Additionally, they planted 40,000 trees that will offset the
total carbon footprint of 69 Salons through electricity consumption, in 20 years.

Taking this initiative one step higher, the 2nd phase of the campaign launching on December 13
will have all 460+ salons take multiple actions to go green.
These initiatives include:
-Complete shift to e-bills, thereby reducing paper consumption
-Implementing waste segregation in the salons
-Installation of energy-efficient fixtures that will reduce energy consumption by upto 75 pc
-Switching to biodegradable consumables
-Introducing glass bottles – replacing single use plastic
-Adding high oxygen indoor plants

Pushkaraj Shenai, CEO, Lakme Lever said, “The Unilever Sustainability mission has inspired our
team to articulate and live the Lakme Salon vision – BEAUTIFY THE FUTURE – to create a
beautiful future for our consumers, employees and franchisee partners by building a sustainable
business. We are making Lakme Salon operations sustainable from December through our
various initiatives. Our vision is being supported and led by our franchisee partners. While the
sustainability initiatives are being implemented across the network, we have also launched 8
green salons with our franchise partners this year. These salons use eco-friendly design and
materials in construction. We will scale this up with more partners in 2020.”

During the year-end festive season, the chain will also roll out exciting engagement offers to
bring their customers on board with this initiative.

Customers will receive an eco-friendly scrunchie with plantable seeds with their bills and a
reusable bag sourced from the NGO Goonj on purchase of any retail product. They can also spin
 the ‘Wheel of Happiness’ and avail exciting offers for themselves. With every offer redeemed,
Lakme Salon will plant 1 tree on behalf of the consumer. Additionally, every Showstopper
member of their Runway Rewards loyalty program will receive an eco-friendly gift including the
scrunchies, plantable seed bombs and bamboo speakers.

In keeping with the spirit of the initiative, all salons will be decorated by the employees using old
and upcycled newspapers and plastic bottles. Employees will also take the ‘green pledge’ as part
of the campaign.

Lakme Salon, present in 154 cities across India, has 460+ salons with over 360 franchise
partners. The brand operates under COCO, FOFO and FOCO models. With a comprehensive 6P
franchise model, it supports budding entrepreneurs to set up and successfully run their own
Lakme Salon. Through its LEAP program, it also helps tenured employees to setup their own
salons.

Ashita Marya
Consulting Editor

January 1, 2020

Opinions expressed by Entrepreneur contributors are their own.

In a journey that spans over three decades, Lakme Salon has excelled in the beauty and
cosmetics industry. With an expansive network of 450 salons across India, the brand now looks
at opening two new outlets every week. In this interview, the company's spokesperson highlights
the reasons why the brand has been such a huge success in India

Could you walk us through the key highlights in Lakme Salon’s journey in India?

We started our journey in 1980 with one salon, but it took us 30 years to open our first 100 stores
and we reached the milestone in 2010. And since then, every two years we have been adding 100
salons to our boutique of stores.
DATA ANALYSIS AND INTERPRETATION

SR.NO PARTICULARS NO.OF RESPONDENTS % OF RESPONDENTS

1 15-24 years 45 45%

2 25-30 years 21 21%
3 31-40 years 19 19%
4 13 13 13%
5 60 2 2%
TOTAL 100 100%

In the above pie chart diagram, most of the respondents belongs to a youngster age group [15-24]
Years that is 45%. After that [25-30] years includes 21%. [31-40] years includes 19% respondents.
Below 15 years of respondents includes 13%. The least respondents which is 41 years and above
includes only 2%.
 SR.NO PARTICULARS NO.OF RESPONDENTS %OF RESPONDENTS

1 YES 89 89%
2 NO 11 11%
TOTAL 100 100%

In the above pie chart diagram, 89% of respondents use cosmetics products.

And 11% of respondents do not use cosmetics products.

 SR.NO PARTICULARS NO.OF RESPONDENTS % OF RESPONDENTS

1 Student 45 45%
2 Business 19 19%
3 Service 24 24%
4 Housewife 4 4%
5 House wife 4 4%
6 House wife 1 1%
7 House wife 1 1%
8 retired 1 1%
9 Jobless 1 1%
TOTAL 100 100%

In the above pie chart diagram, most of the respondents belongs to students category, it includes

45%. Business respondents includes 19%. People who do services includes 24% respondents.

Housewives includes 6% respondents. Retired and Jobless includes 2% respondents.

 SR.NO PARTICULARS NO.OF RESPONDENTS % OF RESPONDENTS

1 LAKME 72 72%
2 AVON 4 4%
3 ORIFLAME 13 13%
4 GARNIER 7 7%
5 MAYBELLINE 1 1%
6 FOREVER 52 1 1%
7 VICO TURMERIC 1 1%
8 ORGANIC BRANDS 1% 1%
TOTAL 100 100%

In the above pie chart diagram, most of the people prefer to use Lakme products it includes 72%
of respondents. 4% of respondents uses Avon products. 13% of respondents prefer to use Oriflame
products. 7% of respondents uses Garnier products. 4% of respondents uses other brand products.
 SR.NO PARTICULARS NO.OF RESPONDENTS %OF RESPONDENTS

1 YES 54 54%
2 NO 46 46%
TOTAL 100 100%

In the above pie chart diagram, 54% of respondents are brand consious.

And 46% of respondents are not brand conscious.

SR.NO PARTICULARS NO.OF RESPONDENTS %OF RESPONDENTS

1 LAKME EYECONIC 37%

KAJAL 37
2 LAKME SUN EXPERT 27 27%
ULTRA MATTE
3 LAKME EYELINER 26 26%
4 All 2 2%
5 Face powder 1 1%
6 Facewash 1 1%
7 LIPSTICK BCOZ THEY 1 1%
ARE LONGLASTING
AND with MATT
FINISHING
8 Lakme Foundation 1 1%
9 Foundation 1 1
10 no lAKME 1 1%
11 oriflame eyconic 1 1%
lipstick
12 1 1%
TOTAL 100 100%
 In the above pie chart diagram, the highest Lakme used product is Lakme eyeconic kajal which is 37%

respondents. Then 27% respondents uses Lakme sun expert ultra matte. 26% respondents uses Lakme

eyeliner. 2% people prefer to use all three of the Lakme products. 8% of respondents prefer to use other

Lakme products such as face powder, facewash, lipstick, foundation, etc.

 SR.NO PARTICULARS NO.OF RESPONDENTS %OF RESPONDENTS
1 NO 77 77%
2 YES 23% 23%
TOTAL 100 100%

In the above pie chart diagram, 77% of the respondents do not face any problem while using Lakme

products. And 23% of the people faces problem while using Lakme products.
 SR.NO PARTICULARS NO.OF RESPONDENTS %OF RESPONDENTS

1 YES 80 80%
2 NO 14 14%
3 CAN’T SAY 6 6%
TOTAL 100 100%

In the above pie chart diagram, 80% of the people are satisfied with the Lakme products they use.

14% of the people are not satisfied with the Lakme products they use. And 6% of the people can’t say

whether they are satisfied or not while using Lakme products.

 SR.NO PARTICULARS NO.OF RESPONDENTS %OF RESPONDENTS

1 Monthly 36 36%
2 Yearly 57 57%
3 Not used 2 2%
4 Daily 2 2%
5 6 months 1 1%
6 0 1 1%
7 Weekly 1 1%
TOTAL 100 100%

In the above pie chart diagram, 36% of the respondents purchase Lakme products monthly.
57% of the respondents purchase Lakme products yearly. 2% of the respondents purchase it on daily basis.
1% of the respondents purchase once in a 6 month. 1% of the respondents purchase on weekly basis. 3% of
the respondents does not use Lakme products.
 FINDINGS

1 It has been found that Age group of youngster (15-24) years has maximum respondents because of
the fashionable product of Lakme.

2 Maximum number of the consumers use cosmetics products that is 89%. And very less number of
consumers do not use cosmetics products.

3 Maximum number of respondents belongs to students category because mostly students like to use
cosmetics products.

4 Most of the respondents prefer to use Lakme products which is 72%. Very less number of people do
not use Lakme products because of their skin problems.

5 Here large percentage of respondents are brand conscious who only uses Lakme products. And less
percentage of people are not brand conscious.

6 Lakme eyeconic kajal is the most preferable product amongs other Lakme products. Because it is
long lasting and smudge free girls mostly prefer using lost lasting and smudge free products.

7 Sun expert ultra matte lotion is also preferable for girls because it protects from harmful rays and it is
non-sticky and lightweighted.

8 Maximum number of respondents do not face any problem while using Lakme products. Because the
quality of the product is moral, which is not harmful for the skin.

9 80% of the respondents are satisfied with the Lakme products they use. Because Lakme continuously
innovates to offer a wide range of high performance and world class cosmetics, Skincare products,
and Beautys salons.

10 Majority of the customers are satisfied with marketing strategies for Lakme provided by the
marketer.
SUGGESTIONS AND RECOMMENDATIONS

1 As per the consumer responses and their suggestions the supply must be properly fulfilled so the
need of the customer satisfies.

2 The company and dealer should develop its marketing information system up to date information of
competitors policy, price and product, target market, so the company can know its strengths and
weaknesses.

3 Brand preference studies reveal that comparatively there is more preference for Lakme among
consumers so in order to attract and maintain his consumers, Advertising programs should be
intensified.

4 Perception of the consumer is changing rapidly. They seek new benefits and values in their preferred
brand. Moreover, consumer likes to have brand at low rate. So Lakme should insert it so as to meet
the changing preference of the consumer.

5 Lakme is the market leader in makeup products. Most of the consumers are brand loyal. They should
be treated as intangible assets. Lakme should ever strive to satisfy them.

6 They should fulfill the consumer needs.

7 It is suggested that packaging of Lakme are liked by the consumers as compared not satisfied with
quantity of the product.

8 Marketer should provide quality as well as quantity of the Lakme product at reasonable price
according to customers need and wants.

9 Awareness of the different variants of products are available in the market mostly the consumers are
highly satisfied because of its packaging style of the product.

10 Size of the products should be improved with quantity and also can add new shades.
 LIMITATIONS

1 Sample size is limited due to the time constraints.

2 Survey method is covered only near by area .

3 Survey is limited in panvel region only.

4 Resopondents are not perfectly answered because online survey were collected the responses.

CONCLUSION

The predictable desire of every woman to stay young and beautiful is everlasting. Make-up products are a
powerful weapon in the hands of women which transform normal looking women to beautiful and attractive
women. This study attempts to analyse the behaviour and attitude of the respondents towards make-up
products.
It is done by probing the attitude of the cosmetic respondents and the different factors, which influence
consumers to purchase them. Cosmetic consumers believe that make-up products will enhance their natural
beauty, feel presentable and increase their confidence level. The primary attributes which influences them to
purchase make-up product is quality.
Marketers of make-up products need to understand this and try to cope with the situation. They should
create awareness in the minds of women that makeup products are not luxury items but are essential items in
their daily life routine. They should also emphasise the need for make-up products by insisting the users
through highlighting the aesthetic value of using quality product items. The other important factor which the
marketers should throw attention is to retain the brand switchers. Due to the awareness of natural cosmetics,
the cosmetic respondents are slowly switching over to them.
Then the marketers have to tap the rural segment by creating awareness to them. Various medias can be used
to access the rural 197 consumers among which, the television advertising is the powerful source and can be
intensively used. If the marketers concentrate on these factors they can easily capture both the urban market
and rural market.
BIBLIOGRAPHY

1. https:// en.wikipedia.org/wiki/Lakm%C3%A9_cosmetics

2. https://www.omniconvert.com/blog/consumer-behavior-in-marketing-patterns-types-
segmentation.html

3. http://reviewsimpact.com/lakme-products-list-with-price

4. https://www.businessmanagementideas.com/consumer-behavior/importance-and-significance-of-studying-
consumer-behaviour/21013

5. https://bizfluent.com/info-8331268-limitations-consumer-buying-behavior.html

6. https://mail.google.com/mail/u/0/?
tab=rm&ogbl#search/google+form/FMfcgxwHMGDWczRMFfkdgMCDqkhXTwxL

7. https://www.acrwebsite.org/volumes/5891/volumes/v09/NA-09

8. https://shodhganga.inflibnet.ac.in/bitstream/10603/175586/11/11_chapter5

9. http://www.ijetsr.com/images/short_pdf/1514833582_1244-1249-mccia159_ijetsr

10. https://www.alliedmarketresearch.com/cosmetics-market
ANNEXURE:

1 Do you use cosmetic products?

Yes
No

2 How oftenly you use Lakme products?

Monthly
Yearly
Other

3 Which brand do you prefer?

Lakme
Avon
Oriflame
Garnier

4 Are you brand conscious?

Yes
No

5 Which Lakme product do you prefer?

Lakme eyeconic kajal
Lakme sun expert ultra matte
Lakme eyeliner

6 Are you satisfied with the lakme product you are using?
Yes
No
Cant say

7 Do you face any problem while using lakme products?

Yes
No