1

PERSONAL MEMORANDAM

1. Name of the Project :

2. Name Of the Student :
3. Name of the college :
4. Name of the university :
5. Examination Roll No. :
6. Registration No. :

INTERNAL EXAMINER EXTERNAL EXAMINER

DEPARTMENT OF COMMERCE
MR. ABHIJEET KU. TALI

(FACULTY OF COMMERCE)

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 CERTIFICATE

This is to certify that the dissertation entitled the study of “Customer Satisfaction On Nivea
Product ” is being submitted by
your T Serina Florance, bearing Roll No –RO2521COM009 under my guidance and
supervision.

Place:
Date:

FACULTY OF COMMERCE
JSM COMMERCE COLLEGE
BALANGIR, ODISHA

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 DECLARATION

I hereby, declare that this research project entitled, “Customer Satisfaction On Nivea
Product” prepared
and submitted by me towards the partial fulfillment of the BACHELOR OF COMMERCE
degree in
JSM COMMERCE COLLEGE, BALANGIR affiliated to RAJENDRA UNIVERSITY, is
my own work and
it is not submitted to any other universities/institution or published anywhere for the award
ofany degree Or diploma.

Place:
Date:

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 TABLE OF CONTENT

SERIAL NUMBER PARTICULARS PAGE NUMBER

PERSONAL MEMORANDM
CERTIFICATE
DECLARATION
ACKNOWLEDGEMENT
EXECUTIVE SUMMARY/ ABSTRACT
CHAPTER 1 INTRODUCTION
1.1 INTRODUCTION TO THE STUDY
1.2 INDUATRY PROFILE
1.3 COMPANY PROFILE
1.4 ORGANIZATIONAL STRUCTURE

CHAPTER 2 REVIEW OF LITERATURE

CHAPTER 3 RESEARCH METHODOLOGY
3.1 OBJECTIVE OF THE STUDY
3.2 SCOPE OF THE STUDY
3.3 RESEARCH DESIGN
3.4 LIMITATIONS OF THE STUDY
CHAPTER 4 DATA ANALYSIS AND
INTERPRETATION
CHAPTER 5 CONCLUSION
5.1 FINDING
5.2 SUGGESTION
5.3 CONCLUSION
BIBLIOGRAPHY
QUESTIONNAIRE

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6
 EXECUTIVE SUMMARY

In recent years, the Indian cosmetic company has undergone dramatic changes and is expected to achieve
significant growth in the future. Increasing disposable income and the tendency of people to replace use of
creams. This study analyzes and understands the factors that determine brand experience and satisfaction
of consumers regarding nivea products in Balangir town. Feedback from nivea users was collected through
a questionnaire designed in Balangir, and a study was conducted with a sample size of 100 respondents.

Frequency analysis is done to show that the number of occurrences of each response selected by a
respondent. Chi square was conducted to divide brand experience into three factors naming Product
attributes, buying motives, and Purchase intention and ranking for each factor was done. A Chi-square
analysis was done on Age, Monthly Income, Occupation, Brand Preference of chocolates, and preferred
type of chocolates which had a significant association with the cluster. In correspondence analysis,
Monthly income between 25000-50,000, Age group between 18-25, occupation with Full-time
employment and students.

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 CHAPTER-1
INTRODUCTION

8
1.1Introduction to Study
The history of the Nivea brand began in 1890 in Hamburg, when Dr. Oskar Troplowitz bought the
laboratory of Paul Beiersdorf, which was called after his last name, Beiersdorf. The world’s first
moisturizing cream was introduced by Nivea in 1911. Despite its century-long history, its composition has
changed little and is almost the same in production to this day.

By 1914, the company was operating in 14 countries around the world. At the same time, its production
was not only in Germany, about 42% of all brand products were created abroad. There was also a famous
symbolic combination of colors, symbolizing the brand: white and dark blue, with the inscription Nivea –
which made the company even more recognizable.

Present box of nivea crème Old box of nivea crème

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The NIVEA Logo
In its almost 100-year history, the box has gone through numerous designs. The famous eye-catching blue
that is now inextricably linked with the brand, is one of the very rare color marks protected worldwide.

Meanwhile, the NIVEA brand has established itself on all fronts in the cosmetics industry, apart from the
also-classic body lotion she produces vast series of shower gels, shampoos, hair styling products and
creams for all skin types. The classic but is still the familiar workhorse, whether in Spain or Thailand, from
New Zealand to the North Pole, the blue box with white lettering knows every child.

10
1.2 INDUSTRY PROFILE
Introduction
The project taken here aims to understand the overall Nivea products of India, the product-portfolios of
the various player in Nivea-market, different factors that affect the expansion & success of the Nivea, India
are: the challenge & opportunity offered by the market & changes in the trends of Indian-cosmetic
Industry. The project also covers a brief study of Nivea products in India regarding above points. Sales a
sale is an exchange between 2 or more people in which buyer will receive goods, which is either
tangible/intangible –service, & /or exchange of assets for money Distributions –It is position or
arrangement of something in space or time, or among a group of the people.

FMCG industry in India

Nivea brand of cosmetics had made its new established products in India to challenge the entrenched rival
Hindustan Unilever, indicating the German outsourcing or imports with local manufacturing.Nivea has
become the leader in leading the market in few sectors, going against theHUL from the last few years, they
have reached more than $100million in our country(India) and we have gained profits. From last few years,
Beiersdorf surpassed HUL infew products such as deodorant-segment for first-time, having 8.8% share in
urban-market, compared to HUL axe they have 7.6% share. the German skin care company,
which had largest outsourcing products in India. For its parts, India’s biggest beautycare consumer goods
company ponds are making to grow in the market share policy tosustain in the market. “Indian perfume in
market are losing the graph, with a bigheadroom for growth. Our new launches across engage and fog are
making great strong high growth for sales. Every company are waiting to make their performance best in
the market while gaining consumer believe,”. Since 2010, Nivea India has kick started its growing it has
been affiliated with Beiersdorf’s-operations”. In all the variant the Nivea entered in different to reach the
customer, it has success to become one amongst the 3 leading brands in category.

In 2016, Nivea has tried its level best to outshine in the market and grow with excellent outputs in the last
quarter year. The Company follows modern trade techniques and segment, they also use historical data to
analyse is what is believed by Experts of skin-care business of HUL & Nivea company. Nivea is known for its
innovative styles and its customer approach procedures, which varies according to the customer, region,
time and place. Deodorants of Nivea has given more profits to the company. The body lotion products of
Nivea have become the new growing entrants and its growing 35% faster than any otherproducts of Nivea.
And few products had changes in the percentage of growth in the segments of the products and HUL had a
great difficult in the facing the completion in the world. Nivea had the advantage in to take up the
challenge to run across the other company. In the while it was real hard ship to the othercompany
toovercome the challenge it was the existing brand in India from the support it made a great change to
overcome other company.

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Nivea was planning to introduce in India market to reach the customer in customized for the preference
for bases on climate and dry weather instead of merely in the market on the price parameters of scale, in
Indian. “The Nivea are constantly mapping emerging trends and the concept of health looking skin has in
fact emerged from the consumers. Indian consumers believe that ‘health looking ‘skin captures all their
needs – glow, acne – free smooth, supple, soft, beautiful, etc this is the aware and involved trends
consumer who drives the consumption trends and behaviour in the country. We have focused our efforts
to cater to these specific needs to encourage non –users adopt Nivea in distribution in sales.

Nivea is following 3 level channel of distribution which consist of producer, distributor, retailer, consumer,
this level of channel is followed for departmental store , supermarket ,fancy store form the distributor
point the items flow to various store in the Balangir , in Balangir it has been divided into different region
north, east, south , west I was sent to focus on the south region in south region there are two distributor
point which are skb distributor , and RK distributor which are major distributor in south from those
distributor it has been covered Balangir south.

Their target people in market are

• Fancy store
• Departmental store
• Super market and etc.

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Types ingredients in skin care products
There are different types of cosmetics, which is sorted by their flavours, colour,
chemicals used, skin-care routine and many more. Based on that Nivea decides what
to add and what not to add in its products keeping customer skin care as the primary
goal.
• Alpha – hydroxyl acids (AHAs) – These acids are famous now a days because of its
nature which helps to reduce the fine line and wrinkles. It also helps in Reducing
irregular pigmentation and age spots and will also help in shrink the proses which are
enlarged.
• Polyhydroxy acids – These acids are best for sensitive skin type people, because it
reduces the burning sensation and does not causer stinging.
• Beta-hydroxy acid (salicylic acid) – This will help in reducing the acne, penetrating
deep inside the skin and repairs the oil follicles. And it also reduces the damage caused
by the sun the texture and color of sun damaged skin.
• Hydroquinone – They are used for lightening hyper pigmentation, they are the
bleaching agent or also known as lightening agents. They help in reducing changes
caused due to hormone therapy or pregnancy, which are dark spots and age spots.
• Kojic-acid – It is used to treat for age-spots and pigmentation of the skin.
• Retinoids – They help improve skin-tone, skin-texture, color of your skin and reduce
the pigmentation, fine -lines and skin dehydration.
• Copper peptide– It is the anti-aging product which helps to provide smooth, soft and
firm skin.

• DMAE (dimethylaminoethanol)- It is used for wrinkles and fine-lines for better results
and outcomes.

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Market size

Personal-care player, Nivea India. Pvt. Ltd, Affiliate of the German-Beiersdorf AG, the manufacturing facility
in sanand with an investment of Rs 150 crore. After the late capacity augmentation, the company total
market investment in the India so far has reached rupees 350 crore out of the approximate committed in
year 2015-2016.

Nivea standoff the capacity now it stands stand at about 240 million units per annum. The Nivea
manufacture emulsion products such as creams, lotions, shower gel, face wash, and lip care. The market
size in which Nivea operates in pegged at about RS. 13,000 crore – growing at about 10- 12 percent
annually, in which Nivea holds second position after HUL and fair and lovely.

Nivea R&D expertise and local insights has been key to our growth. We believe that this new production
centre takes to achieve the goal being emerging Indian most loved skin care brand.

Personal-care player Nivea. India Pvt. Ltd., affiliated of the German-Beiersdorf A.G, the manufacturing
facility in sanand with an investment of Rs 150 crore. After the late capacity augmentation, the company
total market investment in the India so far has reached Rupees 350 crore out of the approximate
committed in year 2018-2019.

Nivea standoff the capacity now it stands stands at about 240 million units per annum. The Nivea
manufacture emulsion products such as creams, lotions, shower gel, face wash, and lip care. The market
size in which Nivea operates in pegged at about Rs13,000crore – growing at about 10- 12 percent annually,
in which Nivea holds second position after HUL and fair and lovely.

14
Nivea R&D expertise and local insights has been key to our growth. We believe that this new production
centre takes to achieve the goal being emerging Indian most loved skin care brand.

15
1.3 COMPANY PROFILE
Introduction
Nivea-company is German-based personal-care brands that’s specialized in body-care and
skin-care. Nivea was introduced in 1911. Owned and established by Beiersdorf. A. G. He
initiated the production by producing various kinds of products like, shaving-creams,
tanning-oil, facial-cleanser, shampoo and toners for different kinds of
skin-types. During and because of the World war II, the trademark “NIVEA” was originated
in different countries. But it was finally completed by Beiersdorf with the right trademark.
However, Nivea become famous in the year 1980, worldwide. They also expanded their
products in the global-markets. Hamburg based-company Beiersdorf Global AG is the
owner of Nivea. On 28th March 1882, company was found and it was completely formed by
Paul carlBeiersdorf in 1890. It was sold to Oscar Troplowitz in the later years.
Troplowitz.was working with Beiersdorf’s-associate, Dr. Paul-Gerson-Unna & the German-
chemist Isaac. Lifschutz, all these people together developed new skin-care cream. In 1900,
Isaac.Lifschutzintroduced Eucerit, which is a stable water in the oil that is emulsion. It
comes from a Latin word Niveus/Nivea/Niveum derived from the word Eucerin Nivea which
means “Snow-white”.

Company Nivea has a long History behind their origin. In 1882, Pharmacist: Paul-carl-
Beiersdorfestablish Nivea on March 28th. And it was originated in the country named
Germany. Gutta-percha plasters were produced by Beiersdorf in his laboratory, with
modern plaster technology as the foundation based on his patent. And from 1880 to 2020
Nivea company has keeps on upgrading their products and Nivea celebrates its 100 years in
2011, since it started its skin-care with a few festivities followed by different kinds of
performances by Barbadian-singer & actress-Rihanna. California king bed sang by Rihanna’s
which was featured as commercial campaign, as Nivea was celebrating 100 years of
successful journey. Know Nivea. is worlds NO1 skin care product with a revenue of 705.6
croresEUR. Stefan De Locker is the CEO of Nivea company. Nivea company’s is growth rate
is 10-20%/year and present in more than 98 countries. Nivea consist of nearly 20,000
employees with a sale of 100 Million per year.

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One of the Backbone and the main reason for the success of Nivea is its Research and
Development (R&D). Nivea has partnership with nearly 85 countries which includes India,
China, Japan, German, Mexico, USA, and other countries. Nivea follows the core value to
satisfy its customers.

The name NIVEA itself shows how a Salesman should approach the customers or Retail

outlets. These 5 principles will help a sales person to attract more customers and do his
work more effectively and efficiently.

Categories of product

Commercial-products are in following-forms

• Deodorants,
• Face wash,
• Men shaving,
• Body lotion,
• Cream,
• Lip care,
• Shower gels,
• Soap and talc
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BRAND HIERARCHY

Deep impact – is a special addition for men categories it is the combination of all the
products in the Nivea which include deodorant, facewash, roll on, shower gel, shaving gel,
aftershave lotion, shampoo.

Range of the quantity of different products

Each and different product have different range based on the size of the product and the
categories.
20 ml, 25 ml, 30 ml, 50 ml, 55ml, 75ml, 100 ml,120 ml, 125 ml, 150 ml, 200 ml, 250 ml, 300
ml, 400 ml, 500 ml.4.8 g, 10g, 75g, 100g, 125g.

Objectives.
Find the customer satisfaction of nivea product in Balangir.
• To understand the brand experience, customer satisfaction and perception

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towards usage of Nivea products.
• To gauge the awareness of Nivea and its product in Bengaluru city.
• To analyze the purchasing-pattern of Nivea product in Bengaluru city.
• Identify customer-preference towards Nivea products.
To know the factors which are influence customer which makes them buy Nivea
products.
• To study the difference in the Overall Satisfaction among the demographic and
geographic variables.
• To study the Association between of Period of usage on the identifiedindependent

variables such as Gender and Monthly Income.

Major players of Nivea

• Vaseline.
• Ponds.
• Johnson and Johnson.
• Lakme.
• Dove.
• Olay.
• Garnier.

SWOT Analysis of Nivea company

SOWT-analysis is the strategic-planning tool, which is used-by the top-level members
of Nivea in order to perform situational-analysis of organization. It is a useful
technology to analyse the current Strength (S), Weaknesses (W), Opportunity (O), &
Threats (T).

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1. Strengths of Nivea:-
• Nivea holds a large market share in cosmetics industry. which makes it worlds
No 1 product for skin care and Body care.
• The people working in Nivea are highly-skilled and were trained very well and
they knew all their learning programs. The company focuses on training the
employees foe fruitful out-comes, hence it invests more on training programs.
• They have very good marketing strategies to be successful in the market.
• Nivea has a Strong-Brand-portfolio. This brand portfolio will help the
company in introducing new-products.
• Nivea has a strong market chains and links, so it’s very reliable in suppling
raw-materials for the production.
2. Weaknesses of Nivea:-
• Only few products of Nivea are famous and they are making the business, apart
from that they don’t sustain in the market for their outside businesses.
• Nivea has to update their products investing more in technology, to be popular
across the world.
• Nivea has not able to track new company that are entering in to market which
made them to loss small market share to some niche categories.
• The company is not planning to use the financial resources properly. This was
depicted by the current-asset-ratio and liquid-asset-ratio. Hence it is suggested
to the company to utilize its financial resources in apt manner with better
strategies.
3. Opportunity for Nivea:-
• Nivea has an opportunity to differentiate its pricing strategies in the market by
practicing different methods.
• Government also opens opportunity by starting the green drive for procurement
of Nivea products.
• Nivea has an opportunity to become No 1 in all the category. As Nivea have wild
variety of products.
• As Nivea is investing in online platform it has opened a new sales channel for
Nivea. As more and more customers are willing to buy the product in online
market.

4. Threats faced by Nivea.

• Changing customer buying behavior from offline to online-channel is a threat
to organization.

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 • Nivea has a huge competition which we be a greater threat to them. They
shouldalways know what their competitor is up to.
• Rising pay level especially increasing in price level of the products will affect
the profitability of the company.
• Rising cost of raw material can be a Challenge to the Nivea company.

1.4 Organisation Study on the basis of Porter’s Five Force analysis.

1. Threats of New-Entrants
There are only minimal or few threats of new entrants in cosmetic industry. because
any company who wants to enter in to a cosmetic industry required a huge amount of
investments and it also includes a large amount of money for Research andDevelopment and promotion of
the brand. people only trust the brand which have testedand tried. So, Nivea has a less chance of getting a
new competitor.

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2. Threat of Substitutes

As Nivea has more competitors people who have not satisfied with the Nivea productwill easily switch to
the product of other brands. As there are number of varietiesofproduct available in the marketcustomer
has more chance of changing the brands.

3. Bargaining-powers of Buyer
The cosmetics industry has more variety of product available the customers have a Highbargaining power.
For every same product in the market there are many manufacturers.So, Nivea has to sell the product
according to the need of customer.

4. Bargaining-powers of Supplier
The bargaining-powers of the Supplier is very less because, many suppliers are therewho supplies same
kind of Raw materials to Nivea. So, the suppliers can’t bargain if atall the supplier increases the price or
supplies a less quality Raw material company willchange the supplier. Thus, the ultimate goal of Nivea is to
buy the product at a highestcost and manipulate its position.

5. Rivalry among Existing Competitors

Due to High competition and wide range of product which is made available in market.Any un-satisfied
customers will easily to the competitor brand. So, the company musttry to differentiate itself from the
competitor brand. And give good offers and discountsso that the customers will become loyal to the NIVEA
brand.

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B.C.G. Matrix of Nivea.
The B.C.G. Matrix for Nivea company helps Nivea to implement new business-plansand business-strategy
for the units of its business. So that, company can increase itsperformance in the present competitive
market. It first identifies the loop-wholes ofthe business strategies with the help of this B.C.G Matrix and
tries to resolve theissue.

 Stars
They are the financial services of the business which helps in achieving thegoals of the Company. It
helps in providing highest sales and portfolio with thebest-selling product. It has survived in the
market amongst ‘n’ number ofcompetitions and ups and downs.

 Cash cow
They are the supplier management-services, which helps in earning profits tothe company by
earning more revenue. Though the supplies are declined Niveamanages to keep themselves at
higher position with the existing supply theyhave, by managing.

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 Question marks
They are the local strategies of the Matrix. They focus on customer needs andwants. It helps to
innovate new product or update the existing product. This willhelp in improving the performance of
the company.

 Dogs
They help the company to find out their pitfalls and helps in minimalizing thelosses to the company.
If loss as occurred it will help us know in which areas ithas occurred and how to rectify it.

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McKinsey 7s Framework for Nivea.
McKinsey 7s model helps the company to understand overall strategy of the business.The model helps to
identify seven elements of the market which includes both hard-elements and soft-elements. Hard-
elements are:
1. Strategies,
2. Structures and
3. Systems.
Soft-elements are:
4. Shared-values,
6. Skill,
7. Styles and
8. Staff’s

This element helps the company to build a strong market strategy and help in betterperformance of the
company.This McKinsey 7s model will help us to identify which elements need to be improvedand which
element is preforming well. The changes are re-structuring, new-processes,an organizational-merger, new-
systems & changes in leadership styles.

1. Structure.
The structure of Nivea is well organized. as the information flows from toplevel to bottom level. The
structure commonly flows for board of director to themanager in the middle level and from middle
level to the lower level that isemployees. This structure will help the company to maintain a very
strongchannel of communication. that is who should report to whom.

2. Strategy.
As the Nivea company is world’s top NO.1-brand. It has a huge number of
competitors so the company has adopted many strategies to overcome thiscompetitor. some of the
strategies are porters five forces which helps to understand your position with that of your
competitors and helps to overcomeyour competitors.

3. Systems.
System includes the daily activities if the Nivea company that help thecompany to complete its job.
Here the company system is very clear that thetop-level management well assign the job to the
middle and lower levelmanagement and the same should be completed by them .

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4. Shared Values.
Shared values are the core value that are shown in the corporate culture of theNivea company. The
company is very much advance in its core value they alsohave a separate value for integrating with
the people and retailers so that theycan attract more customers by showing their culture. And the
shared value alsoincludes general ethics which are known as superordinate goals.

5. Style.
Style means the leadership type adopted by Nivea company. Being one of thelargest company
world-wide, its leadership play a Vital-role in gauging theperformance of the company. So, Nivea
adopts Autocratic leadership as themajority of the work is controlled by one main leader so that
there should be noconfusions in the flow of order.

6. Staff.
Staff are the number of employees working in the company and their capability.In Nivea company
nearly 25000 employees are working and they are very muchskilled in their work and majority of
employees are been recruited from college.

7. Skills.
Skills is the last S in the McKinsey 7s model which play important-role insuccess of businesses. Skills
are the ability of the employees to perform aparticular job. If the employee or employer has a very
good skill in his or herwork the work will be done much more effectively and efficiently.

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Ansoff Matrix analysis for Nivea
The business analyst has mentioned that Ansoff matrix is one of the important strategies
for business growth. He identified four Key types to growing a business. Beiersdorf’s
(NIVEA) development illustrates all four.

1. Market penetration:Helps in Increasing market share for a firm’s products in

its existing markets. Several Approaches help to achieve this, including productimprovement, updating,
building and improving the Existing products.

2. New product development:developing new products for existing markets.Where the company is
already acquired some market share and will berecognized by some customers so it is a good time to
launch a new product.

3. Market development:Helps in finding and developing new markets for currentand existing product
lines. This is most Suitable when existing products requireonly minor modifications to be suitable for new
Markets. It also helps if theproduct life cycle is similar in the different markets that the business serves.
Sothat if the product is in a decline stage the company can modify the product andrelaunch in the same
market.

4. Diversification:This stage normally concentrates on developing new productand a new market

normally they are company which newly introduce theproducts outside the existing business. A firm will
adopt this Strategy when thecompany wants to launch a new product besides its product line which
iscompletely new category.

27
 Market-Penetration
This shows how superior their product is, with the marketing mix:
➢Products-Various product will improve the performance and fulfills theneeds and wants of
the customers.
➢Prices –Nivea product prices are usually very high compared to otherproducts; it is because
of the quality of the product.
➢Places –To sell a product, it is essential to find a place where theexchange occurs.
➢Promotion –It is to target the target audience directly and gain theirtrust and loyalty
towards the brand and the product for continuous andlong-0term relation with the company.
To let the customers, knowabout their new products.

1. Product Development
It focuses on customer needs and innovates new products like facial cleanserwipes which was
recently introduced by the company for the customers ondemand. They give preference to the
skin-care routine of the customers. Andcreateda product which is safe and best for the customers
for daily usage forany type of skin, having different flavors.

28
 2. Market Development
It is to spread about the product globally. For Example, United Kingdomlaunched the new Nivea
deodorants and the sale of the products was very high,because they have analyzed the market of
UK and started selling their productsin a particular area targeting the audience who will respond for
the new productlaunch.

3. Diversification
The new era has diversified tastes and diversified cultures hence it demands for;
➢ Better Lifestyle.
➢ Products.
➢or both men and women (Showing no gender discrimination).
➢To attract people, Revolution of products.

3 C’s

➢ Company:
It is known for the personal care-products. It focuses on the customers for
providing the personalized and best quality products.

➢ Customers:
1. Geographical segments:Country-wise or area-wise.

2. Demographic segments:Based on
• Age,
• Gender,
• Income-Level,
• Education and
• Family-Life-Cycle.

3. Psychographic segments:
• Attitude,
• Lifestyle and
• Social-class.

4. Behavioral segments:
• Events,
• Benefit and
• Utilization
➢ Competitors:
They are the competition to the product. They have to survive the competition
to sustain and survive in the markets.
5.
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 CHAPTER-2
CONCEPTUAL BACKGROUND AND
LITERATURE REVIEWS

30
Review of literature
Introduction
A beauty product company called Nivea was founded in 1911 in German. They alsohad skin-care and
body-care products as well. Till now it has a market experience of107 years. Every-customer would-like
to be healthy, beautiful & good-looking as well.They are focus on taking care of themselves for looking
better in the society. Since bothmale & female are consume beauty-care products it’s an opportunity for
the skin careproducts like Nivea to enter into the market and not only focus on females but also onthe
males so that they can easily acquire a large market share. So, by keeping this factin mind Nivea a
German, personal-care brand which is specialized in body-care andowed by, Hamburg based-company
Beiersdorf-Global A.G has launched its firstproduct in the year 1911 which is 108 years ago. Nivea
company produces variouskinds of product such as tanning-oils, shaving-creams, shampoos, facial-
cleaner so thatits product can reach to all kind of customer and satisfy all type of needs.

In Balangir Nivea skin care products are rapidly increasing because most of stores inBalangirprovides
skin care products. It happened because most of the customerswants to be good looking and have a
healthy skin. This research helps to find thecustomers satisfaction of Nivea products in Balangir.

The effect of using the marketing-strategies by thecompany is the main reasons thatled to them
towards success of the firm. Though the company targets different age-groups but it offers its products
to specific customers by distinguishing them.

The company takes care of all the customer needs, starting from their childhood-daysto maturity-life,
from impulse-purchase to family-treats. Due to increase in the social-levels and status-consciousness,
people have started to prefer to spend money on skincare products. Taking advantage of this situation,
nivea concentrates on the brand,customer satisfaction and marketing strategies .

31
Consumer behavior
• Akhila D and Dr. C. Boopathi

They speak about the Consumer-behavior in a milk & dairy-product in a particular placein Tamil Nadu”. The
state Tamilnadu state is known for its largest production of milkin India. This study aims in revealing the
consumer-perception & Satisfaction overmilk-products based on few factors, namely:
1. Age,
2. Education,
3. Qualification &
4. Monthly-income of an individual or a family who is consuming this product.

Mostof the people are buying this milk for its quantity & quality over price. They have taken necessary
steps and strategies to satisfy their consumers to the highest they can inproviding good and best quality
products.

• MohitJamwal

This study is based on individual decision-making resources and their utilization. Theavailable resources
are:
1.Time,
2.Money and
3.Efforts.
All these three items are related to consumption. Customer-satisfaction will bemeasured by using different
attributes in the organization. They check with thecustomer-preferences and customer-satisfaction
amongst various parameters &methods. This study will help in improving the production section,
marketing department and pricing-strategies of the company in an effective way.

• Dr. P. Rengarajan, R. Sathya and R. Gothami

Buying-behavior is their study on milk-products. An important and necessary thing inour daily life is Dairy-
products in urban & rural-areas. Though our country is largestproducer of milk in the year 1980 and 1990.
The current market-size has changed andits increasing day-by-day because of the customers demand for
the dairy-products andgoods. Therefor the company has decided for proper-distribution-network to make
theproduct available for the customers which are at demand.

 Dr. S. Subadra in 2010

This study is on the Consumer-Behaviour of a car own in Namakkal District. It saysthat market drivers the
customers predominately now. To know which strategy workswell in the car segment it is important to
study the customer-perception and customer-behaviour by the feedback given by the customers in that
particular district inTamilnadu. It progresses making cars in the south part of our country. The technique
32
used for sampling was Simple-Random Sampling technique for reviewing theDr. S. Subadra in 2010

This study is on the Consumer-Behaviour of a car own in Namakkal District. It saysthat market drivers the
customers predominately now. To know which strategy workswell in the car segment it is important to
study the customer-perception and customer-behaviour by the feedback given by the customers in that
particular district inTamilnadu. It progresses making cars in the south part of our country. The technique
used for sampling was Simple-Random Sampling technique for reviewing the responses from the
customers. Considering the size of the universe, the survey wasmade only in a group of passengers. Cluster
analysis is used to identify the consumerwith similar tastes and preferences concerning the purchase of the
car. This study isconcluded that consumer behaviour plays a vital role in marketing cars and there ismore
scope for extensive research in this area.

A literature review on customer satisfaction was given in 1970 that, call centres play an
important role in satisfying the customers in the following ways.
1. Feedback,
2. Raise Complaint,
3. New products enquiry,
4. Pre-booking, etc

• Vavra in 2002

Customer satisfaction is the outcome of the products or services consumed thecustomer. It helps to know
the priority of the client and helps in improving theperformance of the company.It also helps in surviving
the competition in the market.

• Futhermore Lane in 2013

He argues that few customers show special interest in few products or brands due totheir past experience
with the company or the salesperson or they might be emotionallyconnected with the brand.
• Anderson and Fomell in 2000

He states that Customer-satisfaction is based on the emotional connect that anindividual has towards the
brand or company or the product.

• Gustafsson, Johnson, and Roos in 2005

They analyse the customers overall performance and evaluate it.

• Brijesh Kumar in 2011

33
He says there should be an innovative environment between the company and the
customers. They both should be connected like magnets.

• Abhijeeth Singh in 2011

Customer relationship management is always integrated with inventory-management,

pricing, and calculations of the organization.

• ArvindSaxena in 2010

He says that price should not be the competitive factor for expanding the business.
Instead, customers should be reason behind expand of the company.

• BiswajitMahanty and VirupaxiBagodi in 2006

Maintaining both the production and customer-satisfaction is a difficult task, but to be

successful one should handle and manage both. They should wisely spend time on
allocation and also focus on CRM.

34
 CHAPTER-3
RESEARCH
METHODOLOGY

35
3.1 Objectives of the study:
 A study on customer satisfaction and perception towards Nivea product
To understand the brand experience of Nivea
 To know the factors which are influence customer which makes them buy Nivea products.

Scope of the study:

 To is focusing in the skin and beauty
 To look into customer’s requirement and satisfaction
 To increase customer base, improve customer perceptions of the organization's products and services
 Analyzing the consumer-satisfaction is the strict focus of the study or it is also known as the scope-of-
the-study.

Customer Satisfaction
• Oliver in 1997

He has given a definition of satisfaction. And it is all about the responses of thecustomer and their
fulfilment. It was the opinion of the customer about the product or the services provided by the company
to the customer in order to fulfil the requirementsof the customers by the considerable customers who are
at higher levels. To check thecustomer-expectations are fulfilled by the company are not customer-
satisfactionfeedback will help the organization in noting the key or important factors to focus.Customer-
satisfaction is a unique concept which involves quality of the product andservices provided to the
customers in personal.

Customer-satisfaction is a main factor for analyzing the needs of the customers, it isone of the best tools
used to make the business successful. Customer-satisfaction on anoverall basis is defined as evaluating the
customer experience during the purchase andconsumption of the product or services, which is in long
term. Along with marketing &sales, customer-satisfaction comes with the expectations of the customer on
the productor services, that they have heard about the company prior from their close circle. Henceto
make the customers fully satisfied is the ultimate goal of the company.

 Rajpurohit and Vasita in 2017

He has made a report on various types of mobile users from various mobile service-
providers. The mobile-service-providers are: Airtel, Vodafone, BSNL, Reliance, Idea,
& few other service-providers. This report clearly says that customer buying factors
depends on the network coverage provided by the service-providers and the operation
available in the phone. It is also by the brand image of the brand. These finding from

36
the report will help the mobile-service providers to promote their mobile phones and
their services.

Customer-satisfaction is an important component of a business-strategy as well as

customer-retention & product-repurchase. To increase the level of customer-satisfaction, selling their idea
with documents after completion will help the companyto grow. An example for this is, when a customer
wants to buy the car, first he will havea closer look at the car, it’s functionality a, it’s mechanism, engine,
which model is thiscar, and he will check with the kilometres that the car can be travelled and also aboutits
safety and loop holes. They check out all these factors so that they are notdisappointed after purchasing
the car or any product for that matter. Sometimes thecompany gives a picture of some other model and
sells some other different car, they will affect the customer and will leave a negative impression on the
brand or theproduct. Customer-satisfaction is a barometer which helps in that predicting the futureof
customer behavior.

Brand image
Brand experiences keeps changing from person to person, because each individual has
their own and different opinion and taste. Sometimes brand-experiences are verystronger or more-intense
than other-brand. Along with product-experiences, brand-experiences also differ in analysing the product.
It may be positive or negativeexperience. Sometimes some brands may leave an impression very quickly
andsometimes it may not reflect on the lives of the target audience. Few occur to be fastand on point and
long lasting as well. Over-time, these long-lasting brand experiencesloyal customers and they have to
maintain good relationship with the customers viacalls and emails. This will help in maintaining the healthy
and good relationship withthe customer.

Brand-experience relationship to the consumers is not an emotional concept. Few ofthe experiences that
consumers feel are:
1. Sensations,
2. Feelings,
3. Cognitions, and
4. behavioral responses,

which evoke stimuli related to the brand in customers. As timepass, emotional bond may be created
between the brand and the customer, but theywon’t let them purchase the product or services
completely. They are just the stimulithat evokes them. Thus, because brand-experience differs from brand-
evaluations,involvements, attachments, and consumer -delight. Brand-experience is theconceptually &
empirically distinct from personalities over consumer-consumer.Consumer -delight affected by the positive
affects; it can be considered the affectivecomponents of customer-satisfaction (Oliver, Rust, &Varki, 2017).
Contradicting tothis, Customer-delight, Brand-experiences does not count under the consumption
ofproduct or services. They generally occur during direct or indirect communicationbetween the brand and
the customer. A Brand-experience is not required to besurprising; it can be a casual service or product
following certain set of rules andregulations. It can be expected or unexpected from the company.

37
 Anil Mathur in 2017

Anil in his study has discussed about the changes in the Brand-experience. He has statedthat Brand-
preference are studied to understand the profile and the nature of the royalcustomers towards their
brand. This research-paper gives a clear image of changes inbrand-preference among the consumers.
Usually theories and researches are used fortesting the model based on the changes in the brand-
preference of the consumer andtheir perception, in order to make changes in their products or services for
higher ROIand also to develop new products or services. This will help them to change the lifestyleof the
customers. In enhancing and improving. To make adjustments results are been seen, to make sure the new
product or service will be suitable for the new conditionsand changes without any stress. The data support
these notions and it willalso suggestimplication for consumer-research.

Brand-experience varies from affection and motivation factors. Few factors of these
both are as follows:
1. Involvement,
2. Brand-attachment,
3. Brand-loyalty &
4.Customer-delight.
Involvement involves needs, values, & interests which motivates theconsumer to understand the
objective of the brand. Involvement says the perceived-importance and personal-relevance of a brand-
products and brand-services. Brand-experience will notpresume a motivational-state or any-
other.Experiences will nothappen if the customer is not interest. A personal-connection between the brand
theconsumer will not be formed. Now the companies need brands which will highly evokethe customers
and make them buy the product. Having a strong Brand-experience.

3.2 Scope of the study

Learning is the basic human-activity, which is natural, just like-breathing. Most of thetimes learning is
pervasive. But psychologists disagree with this fact how the processof learning takes place. Marketers
should have interest in knowing the individualslearning and adapting ability. The marketers want the
customers to be in their shoes, asso to understand their role in the market. The marketers want the
consumers to knowabout various products, product-attributes, brand-attributes, potential-consumers-
benefit, how to utilise, maintaining or even-disposing the products & changes in thebehaviour of the
marketer, so as to satisfy the customer as well themselves, in order tofulfil the needs.

Analysing the consumer-satisfaction is the strict focus of the study or it is also knownas the scope-of-the-
study. Apart from that, there are few more areas on which the study focuses on and they are: consumer-
preferences & brand-experience, consumptions ofnivea products. Though there are many products of
Nivea available in the market, butthe study is limited to few products of Nivea only. It is strictly focussed on
the Nivea products sold in Balangir-regions only.

38
3.3 Research Design

Ensuring the customer satisfaction and gaining loyal customers is the ultimate goal of
the Nivea company by its best products. Hence, analysing customer satisfaction &
brand experience of the consumers which is always a challenging factor to maintain.
There might be changes in the attitude of the customers towards the product in our
everyday life world-wide. It is based on the preference of the customer based on quality
of the product, taste, quantity of the products brand-image, competition, attractiveness
towards the product, and its variety, etc. There are few problems faced by the customer
for which they lack reasoning and they are as follows: changes in price, productslaunched by the
competition, & Product-quality and purchasing-behaviour of product.Hence, from the study we can say
that it focuses on consumer-preference and brandawareness among the consumers.

One of the marketing tools known as Sales promotion is used for promoting,advertising, publicity of the
products and maintaining the public relations with peopleusing personal-selling and direct-marketing
techniques in the recent times. This tellsthe shift in customer behaviour and purchase-decisions and
promotions of the sales. Italso helps in trial analysis in the current market situation. The promotional offers
givento the customers.The advance postponement of the customer’s purchase decision inbuying a
product.

Nivea is facing problem of wide-range of products when it is compared to thecompetitor’s brand, hence
the nivea have to go slow with the expansion.

Hypothesis

H01: No significant-difference between-quality & the customer-satisfaction.

H02: No significant-difference between-usage of the nivea product based on season.
H03: No significant-difference in income-level and satisfaction-level of buying nivea.
H04: No significant-difference between-brand of body lotion and based onadvertisement.
H05: No significant-difference in usage of nivea cream on seasons based on the gender.

Methodology
The study which is used to describe the characteristics of the population or inother words it is the
phenomenon which does not provide answers to how, when, whythe characteristics appeared. This study
is known as descriptive research. This study,undertaken in Balangirin Jan 2020. This study was been
conducted fromJanuary 2020 to February 2020. The primary data for this study was collected from
thecustomers directly using a tool known as questionnaire and through google forms. Itwas then used in
39
the study for further analysis. Primary data which was collected fromgeneral public,employees, and
customers were used. Secondary data for this researchwill be collected by literature review and company
data. And the sample size of 100.

Source of data
The main source of data used in this study is primary data. Primary data is the datacollected for the first
time form the public, employees, students, etc. through varioustools. It will be in the form of
Questionnaire or Google-Forms, which the respondentsare supposed to fill.

Population
Population is the key source for collecting information. A wider population will provide
wider information about the opinions of the people about a particular thing.

Sample
Sub-set of the population is known as Sample. It will help the researcher to conclude a
case based on the inputs provided.

Sample-unit
The sampling unit helps in segregation of the individual for the collecting the data.

Sample frame
It is a material from which the source is drawn.

Sample design
It is the plan of action, for obtaining the samples from the given sample.

Sample size
Sample-Size for the study is100.

Data collection
Questionnaire is used for data collection. Questionnaire includes concerning differentaspects of the subject
of the study. It is used in much case where the subject of the studyis very wide and direct observation is
not possible. The questionnaire which is used inthe study is known as 5 point-Likert’s-scale (Strongly-Agree
or Strongly-Disagree) andthey are in the form of statements.

3.4 Limitation of-study

• Sample-group was strictly-restricted to Bengaluru city only.
• Only the consumer’s viewpoint was considered for analysis and shopkeeper,and the company’s views
were not taken.
• The study is purely based on primary data.
• Consumer’s feelings were expressed as suggestions to manufacturers toimprove products.
• There were no written facts for the data received by the informal interviewsfrom few respondents.
• The data collected through Google-Forms and Questionnaire may or may nottrue. It is not so accurate to
40
judge the consumer.
• The span-of study, conducted for the period of only three months.

CHAPTER-4
DATA ANALYSIS AND
INTREPRETATION

41
4(a) FREQUENCY ANALYSIS

Frequency Analysis is the study of various frequency which are in the cipher form.

42
Table: 4.1 - Classifications of the respondents based on the gender

GENDER FREQUENCY PERCENTAGE

FEMALE 17 17.00
MALE 83 83.00
TOTAL 100 100.0

CHARTS 4.1

We can depict from the above table that there are 83% of male respondents and 17% offemale
respondents. It says that Male can use more products as the packing is attractive.They go with the packing
style. Whereas Females have different way of selecting theproduct.

43
Table:4.2 – Age-
wise classifications of the Respondents.

AGEGROU FREQUENCY PERCENTAGE

P
Below 18 5 5.0
18-25 87 87.0
25-30 4 4.0
30-45 3 3.0
Above 45 1 1.0
Total 100 100.0

The table above clearly says that 87% of the respondent are in the age-group 18-25
years, 4 percentages of the respondent are in the age-group of 25-30 & 5% of the
respondent belong to the age-group below 18 years. 30-45 years old turned out to be
3%. The age-group of 18-25 choose creams to increase their beauty-level for their daily
activity. Hence 87% of the respondent belong to the age-group of 18-25 yrs.

44
Table: 4.3 - Monthly income wise classifi3.0cations of the respondents.

INCOME FREQUEN3.0CY PERCENTAGE

0-25000 46 46.0

25000-50000 22 22.0

50000-75000 9 9.0

75000-100000 8 8.0

100000-150000 3 3.0

150000-200000 3 3.0

200000- above 9 9.0

TOTAL 100 100.0

Table above clearly says that 46% of respondent are in income group 0-25,000, 22% of
respondent are in income-group 25,000-50,000 and 9% of respondent belongs to the
income-group 50,000-75,000 and 8% respondent belongs to the income-group 75,000-
1,00,000 and 1,00,000-1,20,000 are 3% and 1,50,00-2,00,000 are 4%. 2, 00,000 and
above turned out to be 4%. Hence majority of respondent (22%) belong the income-
group 0-25,000.

45
Table: 4.4 – Occupation-wise classifications of the respondent.

OCCUPATION FREQUENCY PERCENTAGE

Student 72 72.0

Govt. 1 1.0
employee

Pvt. Employee 22 22.0

Homemaker 3 3.0

Others 2 2.0

TOTAL 100 100.0

From the above table, 72% of respondent are student, 1% of respondent are
government employment & 22% of respondent are private employee. 3% of the
respondents are home makers and 2% are others. So, it is revealed that 72% of
respondent are Students and they are the majority.
46
Table: 4.5 – Education-wise classifications of respondent.

Education Level Frequency percentage

School level 2 2.0

Under graduate 55 55.0

Post graduate 43 43.0

TOTAL 100 100.0

In the above figure 4.5, there are 2% of respondents are in the school level, 55% of
respondent of people belongs to the under graduate respondent and remaining at the
last 43% of respondent peoples are related to the post graduate, therefore under
graduate peoples are more attractive to the brand Nivea, therefore the under graduate
peoples are more profitable to the company.

47
Table: 4.6 - Brand preferences for cream.

Brand Frequency Frequency

preference

Nivea 60 60.0

Himalaya 14 14.0

Vasline 24 24.0

others 2 2.0

TOTAL 100 100.0

In the above table we know that, 60% of the respondent are using Nivea cream, 14%of
the respondents are using Himalaya, 24% of the respondents are using Vaseline and the
remaining 2% are using other brands like dove, bio line. It is found that the majority of
respondents (60%) prefer Nivea products. Therefore, it says that most of the
respondents likes Nivea products.

48
Table: 4.7 - Place wise classification of buying Nivea.

Places Frequency percentage

Medical store 27 27.0

Super market 48 48.0

Kerana shop 14 14.0

Fancy store 5 5.0

Others 6 6.0

Total 100 100.0

From the above table considered that, 27% of people buy nivea cream from the medical
store, 48% of people buy cream from the supermarket like big bazar, 14% of people
buy it from the kerana shop or departmental store, 5% of buyers from the fancy storand finally 6% of
buyers from the others outlets. So, it is revealed that 48% respondent buy Nivea cream from the super-
markets.

49
Table: 4.8 - Duration of purchase of nivea products.

Duration frequency percentage

Every day 32 32.0

2-3 time/week 25 25.0

Once in a week 5 5.0

Once in a 5 5.0
month

occasionally 17 17.0

Never 16 16.0

total 100 100.0

In the above figure considered that, 32% of people are using nivea cream every day,
25% of people are using nivea cream on 2-3 times a week, 5% of peoples are using
nivea once a week, 5% of people are using nivea once a month, around 17% of people
are using nivea by occasionally and 16% of peoples are never tried nivea still, hence
the most of the people are using nivea cream every day that is 32%.

50
 CHAPTER-5
CONCLUSION

51
5.1 Summary of Findings
From the above findings majority of respondents who use Nivea products are male andbelong to 18-25
years age group. Since the advancement of technology is understoodby well-educated working
professionals with an income level of 25000-50000. It isfound that individuals are influenced by the Brand
to purchase the product. Majority ofthe customer are frequently buying the product and they are
purchasing the productfrom the super markets.

Ranking of statements is done to analysis which factor has a major-effect on individualstrust and it is found
quality of product has a major effect on the customer trust. Majorityof the respondents who are using the
Nivea product are in the age between 18-25. Thisshows that individuals are satisfied with the price of the
product as it shows majority of respondent are agreed-with the satisfaction level of price of product.

ANOVA is done with demographic variable customer satisfaction and gender. Theanalysis shows that there
is no significant difference between them towards thecustomer satisfaction. This shows that group of
genders are varies in their Certaintytowards the satisfaction. That is no difference between the effect of
customersatisfaction and gender.

Second-ANOVA test is done with the variable gender and overall satisfaction. TheAnalysis shows that there
is no significant difference between them. It shows that boththe male and female are having a different
opinion toward the overall satisfaction.

Third-ANOVA is done with the usage of nivea product based on season. The analysisshows there no
significance difference in the usage of nivea product and the seasonalsales. This shows that there is no
impact on sales on the seasons.

Fourth-ANOVA test is done with the Demographic variable’s income level and thesatisfaction of buying
nivea. where the significance values in respect of majority of income between 25000-50000, there is no
impact between the income level andsatisfaction of buying nivea.

Fifth-ANOVA test is done with the variable brand of body lotion and effectiveness ofthe advertisement.
There is a different compotator for nivea is Himalaya, Vaseline andother companies, there is no significant
difference between these two variables, brandof body lotion and the effectiveness of advertisement.

Chi-Squares test concludes, no significant-association between, the Gender and periodof usage. It shows
that both the male and female are using the product from differenttime period. And the second test is
done on the Monthly income as independent-variables & Purchase of Nivea product as dependent-
variable. Which shows that thedifferent income group people are purchasing the product at different time.
That is somepeople are purchasing the product frequently and some are purchasing rarely.

52
 5.2 Suggestions

 As in the analysis it shows that both the Male and Female have a different levelof satisfaction
about the product. It is important that the company should focusin a different way for both Male
and Female.

The price of the product in comparatively higher than the competitors and it isalso proven in this
analysis that only 50 percent of the customer are satisfiedwith the price of the product. So, it is the
essential-objective of the company tomaintain price of products and make sure that their customer
will not move tothe competitor’s product.

Even though the company is giving good discount and offers it have found thatthe customers are
not been encouraged the offer and discount. So, it is asuggestion that the company should make
sure that the customers are knowingabout the offers and Discount provided by company.

 The overall satisfaction of the customer are around 80 percent. So, it’s veryimportant for Nivea
company to make-sure that they satisfy 100 percent of thecustomer, so that they can acquire
majority of the market share and maintain thenumber 1 position on the cosmetic industry.

5.3 Conclusion

Most of the customer are highly-satisfied by Nivea product and Service, as one of topcompanies the
company has building good-relationship among the customer &retailers. This good relation helped the
company to grow in this competitive world, andthe company is having a very good quality product at a
reasonable price which makestheir customer to purchase their product repeatedly. As many people are
knowing aboutthe Nivea company it is time for the Nivea to expand their business to the rural areasand
villages because majority of the people in India are from village area.

Advertisement is also playing an important role in converting the competitor’scustomers to buy Nivea’s
product and also creating awareness about the Nivea product.By the help of the Nivea’s Research and
Development team and marketing team it ispossible for the Nivea to overcome the competitors and
become the number 1 productin the world.

53
ANNEXURE

54
 BIBILOGRAPHY

 WWW.google.com
 www.marketresearch.com
 www.nivea.com
 WWW.researchgate.com
 WWW.niveamarketanalysis.com
 www.researchofniveaproducts.com

55
QUESTIONNARIES
1) Gender of the customer who uses the Nivea product?
(a) Female (F)
(b) Male (M)

2) Age group of the customers using Nivea products?

(a) Below 18
(b) 18-25
(c) 25-30
(d) 30-45
(e) Above 45

3) Monthly income of the respondents?

(a) 0-25000
(b) 25000-50000
(c) 50000-75000
(d) 75000-100000
(e) 100000-150000
(f) 150000-200000
(g) 200000 and above56

4) Occupation of the customers using Nivea products?

(a) Student
(b) Government Employee
(c) Private Employee
(d) Homemaker
(e) Others

5) Education qualification of the respondents?

(a) School level
(b) Under Graduate
(c) Post Graduate

6) Brand-preferences of the customers for creams?

(a) Nivea
(b) Himalaya
(c) Vaseline
(d) Others

56
7) Location preferred for purchasing the Nivea products?
(a) Medical store
(b) Supermarket like Big Bazar
(c) Kerana shop or Department store
(d) Fancy store
(e) Others

8) Intervals in which they purchase the Nivea products?

(a) Everyday
(b) 2-3 times/week
(c) Once in a week
(d) Once in a month
(e) Occasionally
(f) Never

57
58