consumer perception towards cosmetic industry

A PROJECT REPORT

ON

CONSUMER PERCEPTION TOWARDS

COSMETIC INDUSTRY IN

GHAZIABAD

(IN CONTEXT TO MEN’S FAIRNESS CREAM)

1

SUBMITTED BYSWEETA TIWARI

TABLE OF CONTENTS

S.No. Topic PageNo.

1 Objective 3

2 Introduction 4-6

3 Research Methodology 7-8

4 Engel-Kollat-Blackwell

Model

8-12

5 Data Analysis 13-29

6 Findings 30

7 Conclusion 31-32

8 Limitation 33

9 Annexure 34-36

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OBJECTIVE OF THE STUDY

To study the consumer perception on the basis of attribute based perceptual map

using discriminant analysis.

To find the Servqual score towards different attributes of fairness cream in

accordance to kano’s model.

To determine the characteristics of targeted population which affect their choice of

brand through Factor Analysis.

To determine the statistical significance of the choice of Brand with its Popularity

and Expectation from it.

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An introduction to the Men’s Fairness Cream Market in India:

Men's fairness cream market in 1999: Did not exist. Men's fairness cream market in 2009: Rs

100 crore.Men’s fairness cream market in India is still a fairly small segment - just Rs 186

crore (Rs 1.86 billion) out of the total Rs 2,200 crore (Rs 22 billion) plus fairness cream

market, according to Nielsen (2010 figures)- but one that is growing at a fast clip of 31 per

cent.

Till the last decade it was almost unimaginable that there would be a fairness

cream for men among male grooming products. As it turned out, men contributed

significantly to consumption of fairness product. That shouldn't be surprising as we live in a

society which is obsessed with fair skin. This phenomenon was not restricted to women and,

unknown to marketers, had influenced Indian man as well. The size of Indian skincare

market including creams, moisturisers and cleanser is estimated at Rs 4,750 crore. Of the

total skincare market, the fairness cream market in India is estimated at Rs 2,200 crore plus.

According to a Nielsen survey conducted amongst 1,000 SEC A and B men in Mumbai,

Delhi, Kolkata and Hyderabad on male grooming, every second man has a monthly date with

a salon. "The importance of male grooming is clear, with the market worth Rs 695 crore and

growing at 11 per cent. While some brands tried to build on the premise of letting go of

women's products and opting for male-centric products for social reasons, others pointed out

how men's facial skin is much different from women and thus, they need products to suit

their skin type.

In the past few years, the men's grooming market has grown exponentially

with brands launching not just the run-of-the-mill shaving gels and foams, but fairness

creams, moisturisers, talcs, face washes and other grooming products targeted specifically at

men, with fairness creams leading the pack.

One of the major reasons behind this is that over the years, Indian male became more and

more conscious of his looks, not just in the business world but also in society. A lot

depended on how he presented himself. Men didn't want to run the risk of being seen as

irresponsible and negligent due to their looks. Celebrities, too, became more vocal about

their grooming habits, sharing self-grooming details in TV and print interviews. Also,

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following global trends entered the metrosexual male - the man who has strong concern for

his appearance and styling. Leveraging the fact that there were no products to meet their

growing needs at least not of international quality, brands pooled in energy and resources to

target these men. The grooming fad was not limited to men in the corporate field - it spread

to collegians and other youngsters too, growing the market further.

To secure early leads, marketers are expanding their portfolio beyond creams and straddling

different price-points with various ranges. Differentiation, for now, seems to have been

relegated in favor of endorsements by filmstars and cricketers A-listers for their

communication. But the star endorsement by every brand is slowly eroding the

differentiation. Garnier Marketing Manager Richa Singh says, "John Abraham's positive

energy and the will to be active helped us portray him in a way that was real to both him and

our brand. It appeared genuine." HUL Skin Care General Manager Govind Rajan feels, "It is

always better to start with the young who are more amenable to change. Hence, Shahid

Kapur".On its part, Nivea has associated with India cricket captain Mahendra Singh Dhoni.

The first mover, Emami's Fair and Handsome has Shahrukh Khan as its endorser.

Kolkata-based Emami first saw the need for a men's fairness product, beating

bigger players. Research had showed that the country's leading women's fairness cream, Fair

and Lovely, had then owed over 30 per cent of its sale to men users. Emami's Fair and

Handsome, launched in 2005, was followed by HUL, the makers of Fair and Lovely, which

launched Fair and Lovely Menz Active in 2006. Beiersdorf AG, the German parent of Nivea,

entered next with its Nivea for Men product. Heavy advertisers such as HUL and Garnier

are now looking to expand the skincare category beyond vanilla fairness creams with face

washes and sunscreens, though experts question the efficacy of these products. Marketers

admit that fairness is the foremost concern of users but insists that it only points to the

underlying need for a healthy skin. Whitening emerges as the prime need of the customer

segment of men’s fairness creams. Since Indian men spend a lot of time outdoors, they desire

to reverse the effect of the aggressive factors and hence use whitening creams. The other big

need is also of oil control. The product should address the need for a clear and glowing skin,

albeit without a tan and dark spots.

The brands are banking on the halo effect of the names under which they launch their men's

fairness products, apart from the star pull. One differentiator can be fusing nature with

technology and developing the credibility to create a habit of skincare regime.

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Brands are also straddling different price points, either through different product ranges or

through packaging. Garnier launched satchets of its cream early this year. Its parent, L'oreal

also has a range for men's whitening cream priced much higher. HUL covers the mass

market with its Fair and Lovely Menz Active. Emami, still lording it over the market with its

Rs 125 crore (Rs 1.25 billion) brand, is far from embattled as it is one thing to have a brand

and quite another to focus on it. Emami gets 20 per cent of revenues going into advertising

and Fair and Handsome remains a focus brand. HUL, does not intend to extend its Fair and

Lovely Menz Active, but wants to concentrate on Vaseline Men.

Major Players of Men’s fairness cream Segment considered in our study:-

1) Emami’s Fair and Handsome

2) Garnier Men Power Lite

3) Unilever’s Fair and Lovely Menz Active

4) Nivea for Men-Advanced Whitening Cream

TABLE 1

Players Market Share Year of Inception

1. Emami Fair and Handsome 62% 2005

2. Fair and Lovely Menz Active 20% 2006

3. Nivea for Men 9% 2007

4. Garnier Power Lite 9% 2009

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RESEARCH METHODOLOGY:-

All the findings and conclusions are based on the survey done in the

working area within time limit. It has been tried to select a sample

representative of the whole group. The data has been collected from

100 respondents for studying the consumer perception towards Men’s

Fairness Creams.

RESEARCH DESIGN:

The research applied in the project is Descriptive Research as the major objective of research

is to describe the buying behavior of the customers towards Men’s Fairness Cream. This is

done by studying customer feedback collected through questionnaire.

DEVELOPING THE RESEARCH PLAN

The data for this research project has been collected through self-

administration. Due to time limitation and other constraints direct

personal interview method is used. A structured questionnaire was

framed as it is less time consuming, generates specific and to the point

information, easier to tabulate and interpret. Moreover respondents

prefer to give direct answers. In questionnaires closed ended types of

questions has been used.

COLLECTION OF DATA

Primary data: Individual respondents were personally visited and interviewed. They were the

main source of Primary data. The method of collection of primary data was direct personal

interview through a structured questionnaire.

SAMPLING PLAN

Since it is not possible to study whole population, it is necessary to obtain representative

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samples from the population to understand its characteristics.

•Target Population: College Students and Upcoming Professionals.

Sampling Units: Malls.

Sample Element: Men.

•Sample Technique: Convenience Sampling.

• Research Instrument: Structured Questionnaire.

SAMPLE SIZE:

The sample size taken is 100.

DATA COLLECTION INSTRUMENT DEVELOPMENT

The mode of collection of data is based on Survey Method and Field Activity. Primary data

collected using structured questionnaire. The questionnaire has been prepared taken into

consideration the variables of the Elgen Kollet Blackwell Model.

RESEARCH LIMITATIONS

• The research is confined to Ghaziabad and does not necessarily show a

pattern applicable to all parts of the country.

• Some respondents were reluctant to divulge personal information which

can affect the validity of all responses.

• In a rapidly changing industry, analysis on one day or in one segment

can change very quickly. The environmental changes are vital to be

considered in order to assimilate the findings.

ENGEL-KOLLAT-BLACKWELL MODEL

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This model was created to describe the increasing, fast-growing body of knowledge

concerning consumer behavior. The purchase of fairness creams shows the habitual

buying behaviour of the customer. This model consists also of four stages:

First stage: Decision-Process stages

The central focus of the model is on five basic decision-process stages: Problem

recognition, search for alternatives, alternate evaluation, purchase, and outcomes.

1. Problem recognition: Need for the fairness cream for men, which gives

them more confidence and recognition among people.

2. Alternate evaluation: The person / men will search for the different

alternatives which are available in the market. Here in this case different alternatives

are:

Emami fair & handsome: fairness cream

Hul fair and lovely: menz active fairness cream

Garnier men powerlight: fairness moisturizer

Nivea for men: whitening repair and protect and whitening oil-control

moisturizer

Hul vaseline men: antispots whitening face cream

Others: Such as Elder Healthcare's Fairone Man etc.

3. Purchase: He will purchase the product if he get satisfied by the search process

and choose the best cream.

4. Outcomes: The outcomes may lead to satisfaction or dissatisfaction of customer

about the product. For example if the customer has chosen the product Emami fair &

Handsome then he may get satisfied or dissatisfied from the product.

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The Engel-Kollat-Blackwell Model of Consumer Behavior.

1

Stimuli:Marketer-

Dominated,other

Exposure

External search

Attention

ComprehensionPerception

Yielding/ Acceptance

Retention

Dissatisfaction Satisfaction

M E M O R Y

ProblemRecognition

SearchInternalsearch

Outcomes

Purchase

Alternative evaluation

IndividualCharacteristis:

MotivesValues

LifestylePersonality

Beliefs

Attitude

Intention

SocialInfluences

:Culture

Referencegroup

Family

SituationalInfluences

Input Information Processing

Decision ProcessVariables Influencing Decision Process

Source: Engel , Blackwell, and Miniard,(1995) page No 95

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Second stage: Information input

At this stage the consumer gets information from marketing and non-marketing

sources, which also influence the problem recognition stage of the decision-making

process. The consumer may get the information from different sources like print

media, TV commercials etc. in this case the consumer will get the information about

all the fairness creams through the TV commercials and the consumer still does not

arrive to a specific decision, the search for external information will be activated in

order to arrive to a choice or in some cases if the consumer experience dissonance

because the selected alternative is less satisfactory than expected.

Third stage: information processing

This stage consists of the consumer’s exposure, attention, perception, acceptance, and

retention of incoming information. The consumer must first be exposed to the

message, allocate space for this information, interpret the stimuli, and retain the

message by transferring the input to long-term memory. Here in this case the

consumer first see the advertisement of the product in electronic or print media and

focus on the advertisement which is of his requirement or his need i.e he gives

attention to the fairness cream for men advertisement, then he interpret the information

from that advertisement and finally he retain the message and keep this message in his

mind for the purchase intention.

Fourth stage: variables influencing the decision process

This stage consists of individual and environmental influences that affect all five

stages of the decision process. Individual characteristics include motives, values,

lifestyle, and personality; the social influences are culture, reference groups, and

family. Situational influences, such as a consumer’s financial condition, also influence

the decision process.

Individual characteristics:

Motives: to look more fairer and confident

Value: it includes both terminal and instrumental values, from being capable,

independent, and intellectual to having a sense of accomplishment, social recognition

and happiness.

Lifestyle: the lifestyle is outdoor oriented.

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Personality: the cream is for the one who wants to be recognized and wants success in

their life.

Situational factors:

Consumer financial condition: His financial condition determines for which fairness

cream he will to go. Eg: If he belongs to the upper class he will go for the high price

and high quality cream like Garnier for men power light or Nivea: menz lightening

cream, if he wants value for money he will go for emami fair and handsome.

Evaluation criteria:

He will evaluate the product on the basis of different criteria like prize, fairness, UV

protection, availability, brand endorser, and packaging.

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DATA ANALYSIS

Demographics of the studyGraph showing percentage of People in different age groups:-

(Here no of persons belonging to the age group 16-21=20, 22-26=45, 27-31=25, 32-37=10)

Graph showing percentage of people in different income groups:-

(Here no of persons having income<12000=5, 12000-22000=10, 22001-32000=25, 32001-42000=35, 42001-52000=15, above52000=10)

Factor Analysis

It is a general name denoting a class of procedures primarily used for data reduction

and summarization. In marketing research, there may be a large number of variables,

which are correlated and must be reduced to a manageable level. Relationships among

sets of many inter- related variables are examined and represented in terms of few

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terms.

TABLE 2

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .593

Bartlett's Test of Sphericity Approx. Chi-Square 204.285

df 36

Sig. .000

TABLE 3

Communalities

Initial Extraction

Fairness 1.000 .527

UVProtection 1.000 .586

Price 1.000 .708

Availability 1.000 .690

BrandEndorsor 1.000 .352

Packaging 1.000 .624

Expectations 1.000 .632

Brandloyal 1.000 .433

Popularity 1.000 .765

Extraction Method: Principal Component Analysis.

TABLE 4

1

Total Variance Explained

ComponentInitial Eigenvalues Extraction Sums of Squared Loadings

Rotation Sums of Squared Loadings

Total % of Variance Cumulative % Total % of Variance Cumulative % Total

% of Variance Cumulative %

dimension0

1 2.736 30.399 30.399 2.736 30.399 30.399 2.683 29.807

29.807

2 1.410 15.661 46.060 1.410 15.661 46.060 1.396 15.513

45.320

3 1.172 13.019 59.079 1.172 13.019 59.079 1.238 13.759

59.079

4 .972 10.799 69.8785 .923 10.255 80.1326 .716 7.954 88.0877 .502 5.581 93.6688 .317 3.518 97.1859 .253 2.815 100.000


TABLE 5

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Component Matrixa

Component

1 2 3

Fairness .423 -.503 -.309

UVProtection .529 -.493 .253

Price .131 .737 -.383

Availability -.075 .283 .777

BrandEndorsor .276 .401 .338

Packaging .698 .319 -.188

Expectations .767 .139 -.157

Brandloyal .594 -.088 .270

Popularity .866 .013 .119


a. 3 components extracted.

TABLE 6

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Rotated Component Matrixa

Component

1 2 3

Fairness .330 .347 -.546

UVProtection .411 .643 -.064

Price .288 -.790 .033

Availability -.051 .141 .817

BrandEndorsor .334 -.114 .476

Packaging .754 -.231 -.045

Expectations .785 -.051 -.114

Brandloyal .553 .323 .150

Popularity .846 .214 .054


TABLE 7

Component Transformation Matrix

Component 1 2 3

dimensio

n0

1 .980 .189 -.063

2 .195 -.841 .504

3 -.042 .506 .861


Rotation Method: Varimax with Kaiser Normalization.

Interpretation:

Factor-1 Factor-2 Factor-3

- Fairness -

- U V Protection -

Price - -

- - Availability

- - Brand Endorsement

Packaging - -

Expectation - -

Brand loyalty - -

Popularity - -

Brand Oriented Value oriented Convenience

From the above table we can divide the targeted population into three factors. The first

ones are those who are Brand Oriented these people have high expectations from their

brand they go by the popularity of the product in the market and are price conscious. The

second category people are Value oriented their choice of product depends upon the

actual benefits they get from the product. The third category people goes by the

availability of the product i.e. they look for convenience and also they are celebrity

influenced people whose buying decision depends upon the Brand Ambassador.

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Chi- Square Test:

The square of a standard normal variable is called chi- square Variate with 1 degree of

freedom. It is used when the total frequency should be reasonably large (N>50) sample

observations should be independent. The constraints on the cell frequencies should be linear.

Each theoretical frequency should be larger than 10 but in any case not less than 5.

H0- The Choice of Brand is independent of its Popularity

H1- The Choice of Brand is dependent upon its Popularity

RECODE Popularity (1 thru 3=1) (4 thru 5=2) INTO popul.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Brand * popul 100 100.0% 0 .0% 100 100.0%

Brand * popul Crosstabulation

popul

Total1.00 2.00

Brand Fair and Handsom Count 5 20 25

% within Brand 20.0% 80.0% 100.0%

Fair and lovely mens

active

Count 25 0 25

% within Brand 100.0% .0% 100.0%

Garnier men Count 25 0 25

% within Brand 100.0% .0% 100.0%

Nivea Count 25 0 25

% within Brand 100.0% .0% 100.0%

Total Count 80 20 100

% within Brand 80.0% 20.0% 100.0%

1

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 75.000a 3 .000

Likelihood Ratio 75.060 3 .000

Linear-by-Linear Association 44.550 1 .000

N of Valid Cases 100

a. 0 cells (.0%) have expected count less than 5. The minimum expected count is 5.00.

QuickTime and aﾪ decompressor

are needed to see this picture.

Interpretation: Here H0 is rejected since the expected significance value is less than 5% .

So we can interpret that the choice of brand is dependent upon the popularity of the product

in the market. This can be seen from the above graph where people have opted for emamies

Fair and Handsome based on its market share and popularity amongst the masses.

Chi square test-Between Brand and Expectations from it.

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RECODE Expectations (1 thru 3=1) (4 thru 5=2) INTO expect.

Ho- The Expectations with brand is independent of choice of brand.

H1- The Expectations from brand is dependent upon the choice of brand.

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

Brand * expect 100 100.0% 0 .0% 100 100.0%

Brand * expect Crosstabulation

expect

Total1.00 2.00

Brand Fair and Handsom Count 0 25 25

% within Brand .0% 100.0% 100.0%

Fair and lovely mens

active

Count 15 10 25

% within Brand 60.0% 40.0% 100.0%

Garnier men Count 16 9 25

% within Brand 64.0% 36.0% 100.0%

Nivea Count 13 12 25

% within Brand 52.0% 48.0% 100.0%

Total Count 44 56 100

% within Brand 44.0% 56.0% 100.0%

2

Chi-Square Tests

Value df

Asymp. Sig. (2-

sided)

Pearson Chi-Square 26.948a 3 .000

Likelihood Ratio 36.247 3 .000

Linear-by-Linear

Association

12.857 1 .000

N of Valid Cases 100

a. 0 cells (.0%) have expected count less than 5. The minimum

expected count is 11.00.



Interpretation: Here Ho is rejected that means that Expectations from the brand depends

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upon the choice of brand. That means that the expectations from the selected brand is very

high here the most preferred brand is Fair and Handsome so the expectations from it are very

high.

Attribute-Based Discriminant Analysis

It tells us how the brand is perceived in relation to other competing brands. Another benefit

of discriminant analysis is that it includes the attributes in the map. Unlike the MDS and FA

techniques, which only position brands relative to other brands, discriminant analysis shows

brands and attributes. The ratings of the respondents for 6 attributes of 4 brands that we have

taken can be depicted by the perceptual map using the attribute-based approach. We have

taken 4 brands in the product category viz. Emami, HUL, Garnier and Nivea. The brands are

positioned in the space as points (as they are in the two techniques above), and the attributes

are represented as vectors emanating from the origin of the map. This is sometimes called a

point and vector solution. Therefore, Discriminant Analysis illustrates the relationship

between attributes (their correlation to other attributes), how much each brand is seen as

embodying each attribute, and how similar competing brands are perceived to be. The figures

below show an example point and vector perceptual map from discriminant analysis. The

relationship between attributes is determined by how nearly parallel the attributes are to each

other. Vectors with heads in opposite directions are perceived by respondents as opposites. It

is not perceived that a brand can do well on both. Vectors that are at right angles are seen as

independent. Vectors that head in basically the same direction are positively correlated i.e.

they are seen as embodying the same feature or quality by the respondent. The relationship

between brands is determined by their proximity. The nearer the brands in the map, the more

they are perceived to be similar. The relationship between brands and attributes is a function

of the position of a brand in the direction of the vector. The relationship between brands and

attributes is a function of the position of a brand in the direction of the vector. The

interpretation of brand associations are not based upon a brand's proximity to the vector, but

its directional relationship along the vector. To interpret these brand associations (compare

brands on an attribute), simply draw a line perpendicular to the attribute that intersects the

brand point. Doing this for all the brands provides an accurate rank order of respondents'

perception of all brands on that attribute.

Table 1:

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Wilks' Lambda

Test of Function(s) Wilks' Lambda Chi-square df Sig.

dimension0

1 through 3 .248 131.185 18 .000

2 through 3 .620 44.897 10 .000

3 .920 7.884 4 .096

Table 2

Standardized Canonical Discriminant Function

Coefficients

Function

1 2 3

Fairness .077 .147 .600

UVProtection .845 .165 -.030

Price .044 .230 -.631

Availability -.071 -.363 .365

Brand Endorser .788 -.655 -.204

Packaging .327 .563 .004

Table 3

Functions at Group Centroids

Brand Function

1 2 3

dimension0

1 1.471 0.41 0.309

2 0.801 -0.141 -0.459

3 -0.695 -1.037 0.17

4 -1.577 0.768 -0.02

Unstandardized canonical discriminant functions evaluated at group

means

Interpretation:

Discriminant analysis revealed significant differences among the 4 brands of available men’s

fairness cream. Wilks’ Lambda value should lie between 0 to 1 and a low value is

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significant. We have used 4 brands of fairness creams viz. Emami, HUL, Garnier, and Nivea

and 6 attributes viz. Fairness, UV Protection, Price, Availability, brand endorser and

packaging. The output of the SPSS gives 3 discriminant functions of which the first was

statistically significant i.e. 0.248. These functions produced are plotted using standardized

discriminant function coefficients of each attribute on each function and centroids for each

brand or group viz. function 1 vs. function 2, function 2 vs. function 3 and function 1 vs.

function 3. The second and third functions were not significant. From the standardized

discriminant function coefficients, it appears UV Protection and Brand endorser are loading

high in function 1 and fairness and price on function3 and Brand Endorser and Packaging on

function 2. But these are not significant statistically and therefore should be treated with

caution. Hence, we could conclude that the difference between different fairness creams is a

multidimensional construct consisting of various factors together. Together these may be

named as basic fairness cream elements on which fairness cream seem to differ significantly.

Positioning of the four fairness cream brands through Discriminant analysis: A

perceptual map is drawn using functions 1 and 3, the relative positions of the four brands of

fairness cream derived from centroid table. The perceptual map shows that Emami’s Fair and

Handsome and HUL’s Fair and Lovely men’s active are positioned together. Garnier for

Men and Nivea for Men are positioned far away from each other. The horizontal axis

represents function 1 and the vertical axis, function 3. The 6 attributes are mapped across the

perceptual space.

FUNCTION 1

Figure 1 Graph: Perceptual Map of Four Fairness Creams in India based on Perceived

2

FUNCTION 3

Quality

Figure 1

FUNCTION 3

Figure 2

FUNCTION 2

Figure 3

The graph 1 function1 vs. function 3 shows that the Brand 1(Emami) is perceived to

2

FUNCTION 3

FUNCTION 1

be high on almost all the factors fairness, UV protection, availability and Brand Endorser

except the price and Packaging which are considered to be irrelevant while buying Brand1.

Brand 2 (HUL) is perceived to be high on Price and UV protection. Whereas the brand 3 and

4 i.e. Garnier and Nivea are closer to each other and hence percieved to be similar on the

attributes. The brand 3(Garnier) is perceived well on fairness and availability. The graph 2 of

function 3 vs. function 2 also shows Brand 1 is percieved to be high on fairness, UV

protection and availability whereas price, brand endorser are irrelevant and Brand 2 on Price

and UV Protection and Brand 3 on brand endorser and fairness and Brand 4 on price and

fairness. The graph 3 of function 1 vs. function 2 shows brand 1 and 2 high on fairness, UV

protection respectively and Brand1 and Brand 2 are perceived to be similar. Here Price and

availability are in opposite direction i.e. a brand cannot do well on both the parameters.

Thus we can see that Brand 1 i.e. Emami and Brand 2 i.e. HUL are perceived to be

high on fairness, UV protection, Brand Endorser whereas Brand 3 and Brand 4 are not

percieved well by the customers.

SERVQUAL

The Service Quality model, popularly known as SERVQUAL is a widely used Model for

evaluating Service or the Product quality. Service quality was defined as the gap between

expected service and perceived service. It is a concise multiple-item scale with good

reliability and validity that can be used to better understand the service expectations and

perceptions of consumers. Organizations can use this model to measure and improve their

customer service.

The benefits of SERVQUAL in the study can be summarized as follows:

It is able to alert management to consider the perception of both management and

customers.

SERVQUAL is able to identify specific areas of excellence and weaknesses.

It provides benchmarking analysis for organizations in the same industry.

SERVQUAL can trace the trend of customer relative importance, expectation,

and perception, if applied periodically.

Kano’s Model

Kano's model is an effective tool to categorize product/service attributes according to the

amount of satisfaction that each is able to provide (Kano et al., 1984). According to Kano the

attributes of a product can be categorized as:

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The Must-be or Basic Needs: For these needs, customers become dissatisfied

when performance of the product attribute is low. However, customer satisfaction

does not rise above neutral even with a high performance of the product attribute.

The one-dimensional or performance needs: For these needs, customer

satisfaction is a linear function of the performance of the product

attribute.

High attribute performance leads to high customer satisfaction.

The attractive or excitement needs: For these needs, customer satisfaction

increases super-linearly with increasing attribute performance.

There is, however, no corresponding decrease in customer satisfaction with a

decrease in attribute performance. For instance, a cosmetics customer may not be

dissatisfied if there is no free bonus, but may be more satisfied if a bonus is

provided.

Kano's model promotes understanding of product/service requirements. The

attributes that have the greatest influence on customer satisfaction can

be identified.

It provides valuable guidance in the following trade-off situation. If two product

attributes cannot be promoted simultaneously due to technical or

financial reasons, the attribute that has greater influence on customer

satisfaction, can be determined.

The use of Kano's model can lead to developing a wide range of product/service

differentiation by examining the attractive attributes. The attractive attributes

are the key to beating the competition in the market place

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The integrated approach: Integrating Kano’s model into SERVQUAL

Introducing the Kano categories into SERVQUAL can counter the linearity Problem.

Furthermore, the prioritization for improvement of the weak attributes can be based on which

Kano category each attribute falls into. Logically, the weak Attributes in the attractive

category should receive attention first. Weak attributes in the one-dimensional and then the

must-be categories should receive succeeding lower Priorities. Kano’s model can also help

address the innovation issue against SERVQUAL. Because attractive attributes are a source

of customer delight, this is one area where Efforts for improvement should be targeted. The

integrated approach would improve the utility of either method used separately. Kano’s

model does not evaluate attribute performance. Integrating it with SERVQUAL will better

characterize the product-attribute/ customer-need relationship. It might also illuminate the

pattern of predicted and perceived service as well as the time-dependent relationship between

attribute performance and customer satisfaction.

The illustration of how Kano’s model can be integrated into SERVQUAL.

The first step involves identification of the service attributes.

Next is the gathering of customer satisfaction data. This is commonly achieved

through surveys where customers are asked to rate their prediction and perception

of each service attribute.

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SERVQUAL score is calculated by the gap between predicted service and

perceived service.

This information is gathered via a Kano questionnaire where the attributes are categorized as

must-be, one-dimensional, attractive, indifferent, questionable, or reverse.

The proposed integrated approach should result in a classification of the organizations’

strengths and weaknesses into the various Kano categories.

Utilize the strong attractive attributes as inputs into innovativeness.

Maintain performance of the strong must-be and one-dimensional attributes.

Create customer fulfillment on as many as possible of the weak must-be

attributes, or be at least equal to the best-in- class competitors.

Be competitive on the weak one-dimensional attributes.

Avoid allocating resources to improving the weak indifferent attributes, as

customer satisfaction is unlikely to improve here.



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FINDINGS:

1. Attribute-based perceptual map using Discriminant Analysis reveals that Brand 1 i.e.

Emami’s Fair and handsome and Brand 2 i.e. HUL’s Fair and Lovely Men’s Active

are perceived to be high on fairness, UV protection, Brand Endorser whereas Brand

3(Garnier for Men) and Brand 4(Nivea for Men) are not percieved well by the

customers. Customers use Emami and HUL since they are pioneer in Men’s fairness

cream and are most advertertised and provides them value for money.

2. In our study no of persons belonging to the age group 16-21=20, 22-26=45, 27-

31=25, 32-37=10). This shows that maximum no of persons preferring Men’s fairness

cream belongs to the age group 20-30. Which includes college going students and

young upcoming professionals.

3. In this study the no of persons having income<12000=5, 12000-22000=10, 22001-

32000=25, 32001-42000=35, 42001-52000=15, above52000=10. This shows that

most people prefer Emami because it is economical.

4. From the Factor Analysis we can divide the targeted population into three factors.

The first ones are those who are Brand Oriented these people have high expectations

from their brand they go by the popularity of the product in the market and are price

conscious. The second category people are Value oriented their choice of product

depends upon the actual benefits they get from the product. The third category people

goes by the availability of the product i.e. they look for convenience and also they are

celebrity influenced people whose buying decision depends upon the Brand

Ambassador.

5. We can interpret on the basis of chi-square test that the choice of brand is dependent

upon the popularity of the product in the market.

6. We can also interpret that the Expectations from the brand depends upon the choice

of brand. That means that the expectations from the selected brand are very high. In

our study the most preferred brand is fair and Handsome so the expectations from it

are very high.

7. From Servqual score , it can be said that in an average, the perceived value for radiant

fairness , Protection against UV rays, Anti bacterial activity is less than the expected

value. Whereas the perceived value for non-oily look and works throughout the day is

more than what they expect from their fairness creams.

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CONCLUSION-

India has a strong economic performance and youthful demographic structure, ensuring a

great future for this Industry. All that retailers need to do to be successful, is price their

products well and position them efficiently and intelligently.

The future prospects for this industry seem to be very good. With increasing

awareness, more disposable incomes and the low price capita spend on the cosmetic in the

country, the Industry will surely soar in the time to come .As the Indian cosmetic industry is

still small, compared to the international markets, it points that there is a greater growth

potential.

There has been a strong obsession for fair skin among the Indians although majority of

Indians are not fair. Recently with Obama getting elected to the White house, Indians have

been vocal about ‘black is beautiful’. But this thought is not reciprocated by the ever

growing fairness cream market in India especially the men’s fairness cream segment. With

the concept of the ‘metrosexual’ man setting in globally, the Indian market has witnessed a

strong demand for personal grooming men products. Over the last decade Indian men have

become more conscious of how they look and present themselves. Be it a college-goer or a

corporate person, none have been left untouched by this grooming fad with a keen desire to

look fair. Indian cosmetic companies and marketers have strongly hooked on to this

opportunity.

Surveys and reports have suggested that many men were using fairness creams,which were

primarily manufactured, advertised and targeted towards young women. Gradually the

cosmetic companies took note of this trend and came out with men’s fairness products and

altogether created a separate category. Today Indian male constitute close to 30% of the

fairness cream market contributing close to USD 40 million.

In 2005 Emami forayed into the market with its brand ‘Fair & Handsome’ which advertised

its product by encouraging men not to use women fairness creams clandestinely. Owing to

Emami’s success Hindustan Lever Limited introduced ‘Fair & Lovely Menz Active’ banking

on the success of its super brand ‘Fair & Lovely’. Beiersdorf AG soon followed with a

premium range in the category branded as ‘Nivea Whitening Moisturizer and Facial Foam’.

Nivea tried to position its brand towards the urban progressive youth by evolving the fairness

cream into a whitening moisturizer. Emami on the other hand tried to generate mass appeal

by roping in bollywood superstar Shahrukh Khan for the promotions. Besides these strong

brands CavinKare has its own brand ‘Fairever’ and Shahnaz Hussain’s ‘Fair One Man’.

Recently global giants like L’Oreal have shown interest in the segment by introducing brands

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such as ‘Garnier MEN Powerlight’.

The perennial debate on whether marketing skin whitening or fairness cream is ethical or not

can rest till the Indian male consumer continues to have a suppressed desire for white skin.

Till then long live ‘The Fair Indian Man’.

LIMITATIONS-

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1.The study is conducted in Ghaziabad and Delhi, so customers’ tastes and preferences can

vary according to geographical locations; so overall study is affected by geographical

limitations.

2.For cosmetic creams, there is huge potential in Urban areas , but according to few studies ,

consumers’ perception can vary from rural to urban.

3.Media vehicles and opinion leaders have huge influence on consumers’ buying behavior,

but effectiveness of media is dependent on the independent variables such as the media

habits of customers which again vary according to geography, education etc.

4. For this study, time and resources were in constraint that’s why selected sample size is

100, is actually very less in comparison to the size of Men’s cosmetic market.

ANNEXURE:

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Section A: Fairness Cream Preferences

Please specify the fairness cream, which you prefer to buy-

1.Emami Fair and Handsome

2.Fair and lovely Men’s Active

3.Nivea Men’s whitening

4.Garnier’s Men

Section B: Personal Information

Please select one answer for each question by marking (X) the appropriate answer.

1. What is your age group?

( ) 16-21 ( ) 22-26 ( ) 27-31 ( ) 32-37

2. What is your occupation?

( ) Executive/ Managerial ( ) Self-employed/ Own Company

( ) Professional (doctor, lawyer, etc.) ( ) Unemployed, looking for a job

( ) Academic/Educator

( ) Student ( ) Others (Please specify) ___________________________

3. What is your average monthly income?

( ) Less than 12,000 Rupees ( ) 12,001-22,000 Rupees

( ) 22,001-32,000 Rupees ( ) 32,001-42,000 Rupees

( ) 42,001- 52,000 Rupees ( ) Over 52,001 Rupees

Section C: The perception towards decision to buy Fairness cream products

Please select the right option for each statement. Where-

1= Strongly Disagree

2= Disagree

3= Neither Agree Nor Disagree

4= Agree

5= Strongly Agree

The decision to buy Fairness Creams 1 2 3 4 5

1.Sometimes it is hard to choose which

brands to buy.

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2.I am impulsive when purchasing fairness

Creams

3.I usually choose lower price fairness

creams.

4. I purchase the brand whichever is

available.

5.My standards and expectations for

fairness creams are very high.

6.It is fun and exciting to buy fairness

creams that I have never used.

7.Once I find a fairness Cream or brand, I

stick with it.

8.The higher the price of a product, the

better is the quality.

9. All the information I get on different

Fairness creams confuses me.

10.I make a special effort to choose the

very best quality fairness products.

11. I usually choose the products

advertised by celebrities.

12.The more expensive brands satisfy me.

13.I prefer to buy the best selling brands.

14.The product also gives me UV

protection.

15.The packaging of the product attracts

me to buy the product

Section D:

Please Rate the Expected Value of the features in Fairness cream:

1= Very High

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2= High

3= Average

4= Low

5= Very Low

Features in a fairness cream 1 2 3 4 5

1.Radiant fairness

2.Non-oily Look

3.Works throughout the day

4.protection against UV rays

5.Anti bacterial activity

Please Rate the Perceived Value of the features in Fairness cream according to the above

scale:

Features in a fairness cream 1 2 3 4 5

1.Radiant fairness

2.Non-oily Look

3.Works throughout the day

4.protection against UV rays

5.Anti bacterial activity

ANNEXURE-II

SERVQUAL TABLE SHOWING GAP ANALYSIS-

1 2 3 4 5

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1 -2 3 -2 -2 32 -3 2 -1 -2 23 -1 1 2 -2 24 -1 2 -3 1 15 -2 1 1 -1 16 -3 -1 2 1 -27 -2 -2 -1 2 18 1 1 -2 -1 -29 -1 -1 1 -3 1

10 -1 1 1 1 211 -1 3 -2 1 212 -1 1 -1 -3 213 1 2 -3 1 114 -2 2 -1 1 115 -3 1 -2 -1 316 -2 -2 2 2 -217 -1 -1 1 1 -218 -1 -1 2 1 119 -3 1 1 -2 220 -2 1 1 1 121 -2 3 2 -2 322 -3 2 1 -2 223 -1 1 2 -2 224 -1 2 1 1 125 -2 1 1 -1 126 -3 1 2 1 -227 -2 -2 -2 2 128 1 -1 -1 -1 -229 -1 -1 2 -3 130 -1 1 -3 1 231 -2 1 1 1 232 -1 1 2 -3 233 -1 -1 -1 1 134 -1 -2 -2 1 135 -2 1 1 -1 336 -3 -1 1 2 -237 -3 1 -2 1 -238 1 3 -1 1 139 -3 1 -3 -2 240 -1 2 -1 1 141 -1 3 -2 -2 342 -2 2 -1 -2 243 -1 1 2 -2 244 -1 2 -3 1 145 -1 1 1 -1 146 -2 -1 2 1 -247 -3 -2 -1 2 148 -3 1 -2 -1 -249 1 -1 1 -3 150 -3 1 1 1 2

51 -2 3 -2 -2 352 -2 2 -1 -2 2

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53 -3 1 2 -2 254 -1 2 -3 1 155 -1 1 1 -1 156 -2 -1 2 1 -257 -3 -2 -1 2 158 -2 1 -2 -1 -259 1 -1 1 -3 160 -2 1 1 1 261 -3 3 -2 1 262 -1 1 -1 -3 263 -1 2 -3 1 164 -2 2 -1 1 165 -3 1 -2 -1 366 -2 -2 2 2 -267 1 -1 1 1 -268 -1 -1 2 1 169 -1 1 1 -2 270 -1 1 1 1 171 -1 3 2 -2 372 1 2 1 -2 273 -2 1 2 -2 274 -3 2 1 1 175 -2 1 1 -1 176 -1 1 2 1 -277 -1 -2 -2 2 178 -3 -1 -1 -1 -279 -2 -1 2 -3 180 -2 1 -3 1 281 -2 1 1 1 282 -3 1 2 -3 283 -1 -1 -1 1 184 -1 -2 -2 1 185 -2 1 1 -1 386 -3 -1 1 2 -287 -2 1 -2 1 -288 1 3 -1 1 189 -1 1 -3 -2 290 -1 2 -1 1 191 -2 3 -2 1 292 -1 1 -1 -3 293 -1 2 -3 1 194 -1 2 -1 1 195 -2 1 -2 -1 396 -3 -2 2 2 -297 -3 -1 1 1 -298 1 -1 2 1 199 -3 1 1 -2 2

100 -1 1 1 1 1

TOTAL SRVQUAL SCORE -150 70 -20 -40 90AVERAGE SERVQUAL SCORE -1.5 0.7 -0.2 -0.4 0.9

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consumer perception towards cosmetic industry

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