b9 lipsticks mr proposal

7/28/2019 B9 LipSticks MR Proposal

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Marketing Research SDMIMD

Marketing Research Proposal

Lakme Lipsticks

Submitted by:

Group No.9 (Sec B)

Kritika Bhagel (12084)

Kushal Parwani (12085)

Indu J (12091)

Nandini Sudheer (12092)

Noopur Khare (12093)

Sulgadle Manjunath (12178)


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Marketing Research SDMIMD

Table of ContentsExecutive Summary ................................................................................................................................ 1

Industry Background ............................................................................................................................... 1

Size of the market ............................................................................................................................... 1

Lakme ................................................................................................................................................. 1

Organizational Context ........................................................................................................................... 2

Research Objectives ................................................................................................................................ 2

Research Design ...................................................................................................................................... 3

Type of research .................................................................................................................................. 3

Research Question .............................................................................................................................. 3

Research Approach ............................................................................................................................. 3

Research Methodology ........................................................................................................................... 4

Sampling Plan ......................................................................................................................................... 4

Sample ................................................................................................................................................ 4

Sample size ......................................................................................................................................... 4

Location for collecting data ................................................................................................................ 4

Data Analysis .......................................................................................................................................... 5

Sample Table ...................................................................................................................................... 5

Cost and Time Estimates ........................................................................................................................ 5Time .................................................................................................................................................... 5

Cost ..................................................................................................................................................... 5


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Executive SummaryLike all emerging markets, the trends of India's cosmetics industry are expected to followthose of the more advanced countries For example; an expected growth in natural and organic

cosmetics will have an impact on the existing market scenario. Local players are dominatingthe natural cosmetics sector providing cheaper natural alternatives to standard beauty products and foreign brands, according to the recent market research.

The cosmetics market has been growing at the rate of 15-20% for the last few years. Thesector has witnessed growth mainly from medium and low priced category that accounts for majority revenue share of the cosmetic market. In this context, we are formulating a study onthe market acceptance and consumer preference of a lipstick brand, Lakme. We plan toconduct the study in Mysore to know the various factors like customer purchase criteria and

preference, their loyalty towards the brand Lakme and the potential customers and their

purchase behaviour. Focussing on quantitative and qualitative approach on a representativesample, we expect to arrive at conclusions which can be recommendations or suggestions thatthe company can adopt.

Industry Background

Size of the marketThe cosmetics market in India is valued at Rs.1514 crore. The size of India's colour cosmeticsmarket is Rs.250 crore, that of fragrances is Rs.85 crore while the skin care market size is

larger at Rs.400 crore.

While lipsticks account for nearly a third of the colour cosmetics market at Rs.90 - Rs.100crore, the market for nail enamels is estimated at around Rs.110 crore. The remainder consists of products such as mascara, eye-liners etc.

In order to study the lipstick market in detail, we have chosen our brand as Lakme.

LakmeLakme is an Indian brand of cosmetics, owned by Uniliver. Lakme started as a 100%subsidiary of Tata Oil Mills (Tomco), part of the Tata Group; it was named after the Frenchopera Lakme, which itself is the French form of Lakshmi, the goddess of wealth, alsorenowned for her beauty. Indian cosmet Lakme was started in 1952. Lakme producescosmetics as well as skin and hair care products. This leading Indian cosmetic brand has itsown, Lakme Beauty Salons and exclusive Lakme product outlets all over the country.

Lakme's share stands at 34 %.

Lakme is the overall market leader in the colour cosmetic segment (lip care and nailenamel) with a wide range of products and prices, both.

Lakme leads the market with sales of Rs.100 crore. Lakme has recently joined forceswith Hindustan Lever Limited (HLL) and calls itself Lakme-Lever.


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Organizational ContextA study is to be conducted to analyse the market situation in Mysore for its lipstick productsso as to enhance sales. A part of this analysis may also be used by company to effectivelylaunch the lipstick product in similar cities.

Research Objectives The main objective is to study of market situation of Lakme lipsticks in Mysore.

This will cover present market situation, current & potential customers, Customer PurchasePatterns and Behavior, Potential Customers and Their Lack of Purchase Behavior towards

product.

Current and Potential Customers:Lipstick demographic is for fashion forward women. This includes average age rangefrom 20-40 because women older than their late thirties are generally not seen inlipstick stores. It is generally targeted towards professional make-up artists; however,most of it is sold publicly so anyone can buy the products. People become aware of these products by word-of-mouth, advertisements & make-up gurus.

Customer Purchase Patterns and Behavior:A customer going into store may buy more than one. Understanding their income &referees can help to know products reach. The average customer who shops atMake-up Art Cosmetics makes an average income of two-hundred and fifty thousand

dollars annually or more. Some consumers may even like to buy from internet asthese products can be checked for & bought right from their make-up rooms.However, some consumers may like to go to stores to have personal one-on-onecontact.

Customer Selection and Purchase Criteria:Consumer chooses the shades based on their skin color. Sometimes they may go for

pallets as well.

Potential Customers and Their Lack of Purchase Behavior : Some people though desirous of lipsticks just simply cannot afford it. Thesecustomers know where they can get for a cheaper price and could work just as well.Potential customers also inclu de the competitors customers as their choice of notgoing for Lakme could add sufficient information to analysis.


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Research Design

Type of researchWe are going by a partly exploratory research and a partly descriptive approach. It isexploratory because we do not use any earlier model as a basis of our study. We start with a

preliminary notion of the objective of our study and of its context. During the exploratoryresearch project, these provisional concepts gradually gain precision. It is also partly adescriptive approach as we have formulated certain hypotheses on a prior basis and thequestionnaire etc. can be structured or planned beforehand. Focussed research will be done toexplore and understand the attitudes of potential customers towards other brands.

The choice of data collection method will be quantitative methods like surveys as well asqualitative methods.

Research QuestionSome of the questions which will be asked during the survey are:

What brands of lipsticks do consumers use? What are the reasons of consumers preferring Lakme lipsticks? What are the reasons of consumers not preferring Lakme lipsticks? What price are consumers willing to pay for a Lakme lipstick? What is the buying pattern of lipsticks in relation with income and age of consumers?

Research ApproachWe formulate hypothesis and conduct tests of significance. We design two hypotheses, the

null and alternate hypothesis for each test to be conducted. Null hypothesis (Ho) is used for

testing. It is the statement that no difference exists between the parameter and the statistic

being compared. Second is Alternative hypothesis (HA) which holds that there has been a

change.

The hypotheses being tested in this report are:

H0: The respondents who prefer Lakme are brand loyal.

H1: The respondents who prefer Lakme are not brand loyal.

H0: Respondents are satisfied with the quality of Lakme products.

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


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H0: Respondents react to advertisements, especially endorsements by celebrities

H1: Respondents do not react to advertisements

The hypothesis testing will be done using chi-square tests. These hypothesis test results will

give us ample information to come to a conclusion about the brand loyalty, overall

satisfaction level, advertising/ communication effect etc. With this conclusion drawn, we can

make recommendations to the company as to how to improve their brand recognition and

acceptance and make changes if needed to the current promotion practices.

Research Methodology We have decided to collect information mainly through following ways:-

1) Through questionnaires.

2) Realising the immense potential of internet we are also planning to conduct an onlinesurvey as well.

In addition to it, we will also be conducting a brand recall test which will enhance thevalue of our research.

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

SampleAccording to our proposed research plan, our sample for consumers will be divided on the

basis of income, age group and occupation.

Our respondents will be from the urban Mysore.

Sample sizeWe have selected a sample of 100 150 for our study, from the target population.

Location for collecting data Shopping malls Colleges Residential areas


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Data Analysis

Sample TableBrands Avon Lakme Mac Maybelline Revlon OthersPreferred

Not Preferred

The data collected through the survey will be analysed in the following ways:

Descriptive statistics: weights and variance estimation Analytic statistics

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

Cost and Time Estimates

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

CostThe cost of doing research has been classified into the following heads-

Logistics Cost including the cost of printing questionnaires. Transportation Cost. Cost borne from incentivizing customers to motive them.

b9 lipsticks mr proposal

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