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http://www.iaeme.com/IJM/index.asp 764 [email protected] International Journal of Management (IJM) Volume 11, Issue 7, July 2020, pp. 764-777, Article ID: IJM_11_07_066 Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7 ISSN Print: 0976-6502 and ISSN Online: 0976-6510 DOI: 10.34218/IJM.11.7.2020.066 © IAEME Publication Scopus Indexed RECENT TRENDS OF COSMETICS IN INDIA: A REVIEW ON MARKETING STRATEGIES AND CONSUMER BEHAVIOUR Abhisek Pal GITAM School of Pharmacy, GITAM (Deemed to be University), Hyderabad, India. Pritipadma Panda Esthetic Insight, Cosmetics R & D Division, Hyderabad, India. Sandeep Mukkamala Esthetic Insight, Cosmetics R & D Division, Hyderabad, India. ABSTRACT Various marketing strategies characterize the cosmetic industries over India. It is based on the ability to initiate rapid product innovation into the market without any delay. This strategy assists various cosmetic industries in deciding for segmentation, positioning, and targeting product sales. Developing a plan for marketing strategies includes a goal, business vision, and selling proposition. The ultimate goal of this work is to analyze the marketing strategies of cosmetic companies to launch various innovative ideas that boost product sales. The problem related to cosmetic industries has to ensure, "How successfully the cosmetic industries plan for marketing the products over the market?" This work concentrates on analyzing the various factors related to recent trends adopted in cosmetic industries. The analysis is performed with SWOT (Strength, Weakness, Opportunities, and Threats) and 4P's (Product, Price, Promotion, and Place) variables. This strategic analysis is performed using both primary and secondary sources. Key words: Cosmetic industries, marketing strategies, product sales, SWOT, 4P Cite this Article: Abhisek Pal, Pritipadma Panda and Sandeep Mukkamala, Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour, International Journal of Management, 11(7), 2020, pp. 764-777. http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7 1. INTRODUCTION In this modern Information Technological era, the media plays a crucial role all over the world by sharing the essential information that influences the attitude and perception of customers [1]. The trending advertisements not only impacts the way a customer approaches a

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Page 1: RECENT TRENDS OF COSMETICS IN INDIA: A REVIEW ON … · the functions of the body's structure”. Some include men products, baby products, skin care, oral hygiene, sun care, shower

http://www.iaeme.com/IJM/index.asp 764 [email protected]

International Journal of Management (IJM) Volume 11, Issue 7, July 2020, pp. 764-777, Article ID: IJM_11_07_066

Available online at http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7

ISSN Print: 0976-6502 and ISSN Online: 0976-6510

DOI: 10.34218/IJM.11.7.2020.066

© IAEME Publication Scopus Indexed

RECENT TRENDS OF COSMETICS IN INDIA: A

REVIEW ON MARKETING STRATEGIES AND

CONSUMER BEHAVIOUR

Abhisek Pal

GITAM School of Pharmacy, GITAM (Deemed to be University), Hyderabad, India.

Pritipadma Panda

Esthetic Insight, Cosmetics R & D Division, Hyderabad, India.

Sandeep Mukkamala

Esthetic Insight, Cosmetics R & D Division, Hyderabad, India.

ABSTRACT

Various marketing strategies characterize the cosmetic industries over India. It is

based on the ability to initiate rapid product innovation into the market without any

delay. This strategy assists various cosmetic industries in deciding for segmentation,

positioning, and targeting product sales. Developing a plan for marketing strategies

includes a goal, business vision, and selling proposition. The ultimate goal of this

work is to analyze the marketing strategies of cosmetic companies to launch various

innovative ideas that boost product sales. The problem related to cosmetic industries

has to ensure, "How successfully the cosmetic industries plan for marketing the

products over the market?" This work concentrates on analyzing the various factors

related to recent trends adopted in cosmetic industries. The analysis is performed with

SWOT (Strength, Weakness, Opportunities, and Threats) and 4P's (Product, Price,

Promotion, and Place) variables. This strategic analysis is performed using both

primary and secondary sources.

Key words: Cosmetic industries, marketing strategies, product sales, SWOT, 4P

Cite this Article: Abhisek Pal, Pritipadma Panda and Sandeep Mukkamala, Recent

Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer

Behaviour, International Journal of Management, 11(7), 2020, pp. 764-777.

http://www.iaeme.com/IJM/issues.asp?JType=IJM&VType=11&IType=7

1. INTRODUCTION

In this modern Information Technological era, the media plays a crucial role all over the

world by sharing the essential information that influences the attitude and perception of

customers [1]. The trending advertisements not only impacts the way a customer approaches a

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Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour

http://www.iaeme.com/IJM/index.asp 765 [email protected]

product; it changes their perspective and attitude towards the product. The idea of advertising

prevails over a more extended time period and is used in various ways to deal with the

mindset of people all over the world. In the past few years, various cosmetic industries show

huge testimonials by advertising the products that are aired on television and printed over the

newspapers, billboards and magazines [2]. These kinds of cosmetic advertisements show a

deeper impact on customer personality and intention towards purchasing the products. Among

all the other advertisements, a cosmetic advertisement shows higher impact on feelings,

behavior and thoughts of the individuals.

The term „cosmetics‟ originally originated from a Greek word known as „Kosmetikos‟.

This specifies the skill towards decorating things. Similarly, cosmetics are also known as

make-up products which are commonly used by young aged adults to improve their

appearance and to show them pleasantly [3]. The Food and Drug Administration of America

states that, “cosmetics are pretended to be applied on the human body for beautifying,

cleansing, changing the appearance, attractiveness promotion without influencing or changing

the functions of the body's structure”. Some include men products, baby products, skin care,

oral hygiene, sun care, shower products, bath products, odor products, hair products, and so

on [4].

Generally, cosmetics are products that are used or applied over the human body. These

products are used in various parts of the body like eyes, lips, hair, skin, and so on. The basic

purpose of using these products over various organs is for coloring, cleaning, conditioning,

protecting, varying, and beautifying which is to change the appearance and style of

individuals [5]. The common way for defining cosmetics is to enhance the appearance, make

it beautiful, clean and pleasant to human eyes. The ultimate objective of using cosmetics is to

preserve the healthy body conditions by making it protected from environmental hazards (sun

rays), attractive and more beautiful [6]. Eventually, cosmetics are also utilized for increasing

the attractiveness of individuals by posing variations in their natural appearance.

The use of cosmetics shows two positive impacts over the influencing nature of

customers. It helps in increasing the confidence level of every individual and it adds beauty to

the physical appearance. Thus, the demand for using cosmetics is also increased, which leads

to the launch of various cosmetics companies in India. The widen knowledge of humans

towards various fields, makes them to have an appropriate choice during the purchase of any

specific brand products. Thus, various aspects are considered over the product purchase [7].

Every individual intends to purchase cosmetic products due to its brand value, price, and

influence by family and friends, when they are attracted towards the product.

As well, cosmetic companies undergo various issues and problems while launching and

selling the products. The major cause is that these products are applied directly over the

human skin which causes a foremost subjective risk [8]. The primary factor that relies over

these issues is that these products are not suited appropriately to all types of skins. Therefore,

it is extremely essential to learn about the intention, perception, choice and decision of the

users. The definition of cosmetics is accepted internationally by the Food and Drug

Administration of the USA; however, in India, cosmetics are defined based on the Drugs and

Cosmetics Act 1940 and 1945 rules.

In India, cosmetic industries are extremely popular and are accepted based on the beauty

and skin care products. Diverse Indian brands make it huge in domestic and global markets.

Some big branded companies are Himalaya, Lotus Herbal, Khadi Herbal, and L‟Oreal and so

on. Similarly, there are enormous smaller brands that also perform well at the local market

[9]. It includes various kinds of cosmetics that range from skin care, hair care, oral care,

colors, fragrance, etc. This is because of the increased consciousness to appear more

beautifully and handsome among men and women. Thus, it shows a drastic rise of cosmetics

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Abhisek Pal, Pritipadma Panda and Sandeep Mukkamala

http://www.iaeme.com/IJM/index.asp 766 [email protected]

industries in India. This drastic growth is encountered in the last few years. Various cosmetic

industries have proven its efficiency in emerging markets all over the world. Similarly,

various new products are also launched in the industries very frequently and it adds some fuel

in the growth of industries in India is extremely high.

Figure 1 Beauty and personal care market growth (Source: Ministry of economy and industry)

The reason behind the enormous growth of cosmetics industries (as in Fig 1 and Fig 2) is

the interest of every individual to make them grooming, beauty in their appearance. In the

present scenario, the need for cosmetics has grown towards a greater extent with the

thousands and thousands of cosmetic manufacturing industries not only in India but also in

various countries all over the world.

2. DEFINING COSMETICS

Generally, cosmetics are products that are used for cleaning and taking care of the body to

show it more gorgeous. The preliminary objective of using cosmetic products is to maintain

the body in perfect state, protect it against environmental factors and to diminish ageing signs

as much as possible [10]. It is used for changing the appearance and makes the body smell

nicer. Therefore, these products are utilized for beautifying, cleansing, promoting

attractiveness, conditioning skin; coloring, lips, hair, eyes and nails are included in cosmetics

and represented as Cosmetics and Toiletries. The cosmetic market comprises a huge scale of

skin care, health-care, hair-care, fragrances, make-up, baby-care, color cosmetics, oral care

and so on. It includes the following products [11]: Skin-care products

Coloring cosmetics

Baby-care products

Body wash

Deodorants/perfumes

Hair-care

Depilatories

Women/Men grooming products

Sun-care and oral hygiene products

As well, the cosmetics are partitioned into two categories:

Premium cosmetics

Personal and beauty care products

The classification of these personal and beauty care cosmetic products is given as follows:

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Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour

http://www.iaeme.com/IJM/index.asp 767 [email protected]

Child care and bathing products

The child care products are applied over the soft bodies of babies and toddlers at the age of 0-

3 years. Also, kids less than 5 years old can also use these products. Alike of this, bathing

products include bath additives, bar soap, shower/body wash gels, instant wipes, intimate

washes, talcum powders and liquid soap.

Coloring and perfumes/Deodorants cosmetics

It includes foundations, rouge, lip sticks, face powder, kajal blushers, face bronzers,

highlights and 2-way cake products. These are pump, per-spirant creams, roll-on, stick, spray

and wipe format.

Fragrances/Depilatories

It includes women/man products, premium and uni-sex mass fragrances. The distinction

among premium and mass market is generally label, price, and premium positioning (mass

fragrances for carrying designer labels) and distributions. Depilatories are a combination of

women‟s razors, pre-shave items, blades, razors, bleachers and hair removers.

Hair coloring

It is a combination of styling agents, shampoos, perms, color tubes, relaxants and perms, color

tubes, developers and salon hair care.

Oral-care and Men’s grooming

It includes tooth-brushes, tooth-paste, dental rinses or mouth washes, mouth fresheners, home

teeth whiteners and dental floss. Men‟s grooming includes men‟s toiletries and shaving

products.

Sun and skin-care products

Sun-care products include after-sun, self-tanning and sun-protection products. Similarly, skin-

care includes body and facial care products, hand care products.

3. MARKETING THROUGH ADVERTISEMENTS

The term advertisement originates from Latin word known as „adverto‟. This is demonstrated

in two words. „Ad‟ specifies „towards‟ and „verto‟ specifies „I turn‟. The integration of these

two terminologies is given as „to turn attention‟. Similarly, advertisements are defined in

diverse manners by various people. One commonly used definition is depicted as, “the

process of buying sponsored and recognized media based on time or space for certain

products, ideas, services and to promote sales in the future and in the present [12]. Also, it

comprises these activities with oral message or viral message and it addresses the public for

providing information and attempts to influence them to purchase service, product or idea.

The ultimate objective of advertisement is to gain the attention of viewers.

Advertisements are done to gain the attention and attract the segmented and the targeted

audience. It gives people with newer information and can pass values to the prevailing

information [13]. Advertisements are done with a core idea and to influence the perception

and attitude of the audience and ultimately influences the nature of product purchase. The

common definitions of advertisement that are available in books are, „a paid and non-personal

form of communication that helps in promoting services and goods with the use of certain

companies.

It is also used to sell and promote products, ideas and services. It is generally a form of

communicating with the people to give a message regarding the product to potential

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Abhisek Pal, Pritipadma Panda and Sandeep Mukkamala

http://www.iaeme.com/IJM/index.asp 768 [email protected]

customers. For this cause, various tools like newspaper, radio, television, billboards, and

hoardings are used. These are some common and basic tools used in the advertising field [14].

In this competitive era, advertisements play a crucial role in promoting the achievements of

products. It is extremely essential in all kinds of industries and the world has to be adopted

with this method based on its ability. It is used by organizations, personalities, companies and

so on who intend to put messages based on the target audience.

In recent times, advertisements are not only the essential need of businesses; it also

becomes the major part of the society. It helps to sell products in the society and also drifts a

culture in society with the assistance of advertisements. It also plays a constructive role in

economic growth of countries and also provides a finest level of employment to the young

people. Also, it cannot be denied. It also plays some negative role by promoting unnecessary

services, products and unwanted habits and cultures. Thus, advertisements should not lead to

negative posture.

Generally, advertisements play a significant role in influencing people to buy the

products. Initially, they attempt to influence the perspective of people, their attitude, their

intention and their characteristics. An advertisement is measured as an earlier form to reach

the audience and communicate with them using a message and to reach their house [15]. Also,

a woman intends to spend lots of time in front of television while compared to men. Despite

recent days, women moving to work have been gradually increased. However, a huge

percentage of women prefer to be at home and involve themselves in the household works. As

well, the advertisement industries have also worked effectively in the past, by not leaving any

stone unturned, by making more attractive advertisements and colorful. It is used for making

publicity among the audience. Also, it is extremely easier to inculcate interest to these large

audiences for purchasing the product among the women than the men. Women are influenced

easily by the product where certain products are more branded, special offers, punch line,

slogans, brand ambassador, music and humor.

Figure 2 Indian BPC Market Size (%)

(Source: Ministry of economy and industry)

When people are exposed to enormous amounts of advertisements, they pretend to buy the

products. When more advertisements are broadcasted and published, there are chances of

increased demand for the particular product [16]. The customers can be either a girl or

women, when viewing these advertisements; it assists them to make appropriate decisions to

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Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour

http://www.iaeme.com/IJM/index.asp 769 [email protected]

buy the product and provides enormous information regarding the brands and products.

Cosmetic advertisements also undergo huge pressure.

The industries that broadcast advertisements are also diversified based on the budget to be

involved in making it. Certain companies while launching a new product in the market use

diverse strategies in establishing them; while some companies apply only few of them based

on the depth of the budget involved. In general, advertisements are not made by the

companies, it is also outsourced to various advertising agencies. These agencies work over the

advertisements to gain the target audience for selling the product and the services. These

agencies are responsible for making decisions and to prepare the advertisement that is more

appropriate for reaching the user‟s perception.

Diverse methods are established by cosmetic companies to make an impact of the

customer's mind to purchase the product. Among the various methods used by the cosmetic

companies, advertisements are one of the marketing strategies that are considered as a

common mode. This helps the users to have some positive thoughts towards the product

purchase. It is also depicted as a stronger tool by various cosmetic companies which show

positive impact on economic growth in diverse aspects of society. It is depicted as a common

model of payment with enormous communication that occurs through diverse tools like radio,

television, websites, blogs, billboards, text messages, magazines, social media and

newspapers.

These methods help in advertising the product in a precise form for communication and

pretend to be more powerful and effective. The advertising standard council of India states

that, “various advertisements are exaggerated regarding the benefits and features of the

product”. This can be performed only when the psychological factors are influenced by the

individual to purchase the product. The individual who is aware of this exaggeration of

advertisements, they do not tend to neglect the advertisements and may not take serious

concern. This is considered to be misleading and more annoying. They also make aware of

other people not to fall under the advertisement prey and to come under the conclusion by

considering the opinion of others who used the product and they have to use it by themselves.

The target behind advertisements is to assist consumers and not to mislead them and to

threaten them in buying the product. The higher form of advertisements helps the customers

to design a branding image towards the decent market share. Creative and finest

advertisements work effectively and they are not intended to use a popular person as a brand

new ambassador. When an advertisement is made in an effectual manner, it would be

definitely liked by various people and shows positive response towards the product selling.

Diverse factors that contribute to the successful launching of products are branding

information, image, celebrity, entertainment and so on.

4. COSMETIC MARKETING THROUGH ONLINE SHOPPING

Beauty-care products or cosmetics manufacturing companies initiate the use of online market

and online sales. It becomes the major source of income in most companies. It can either set

up their own websites or offer electronic stores. Here, advertisements are also considered to

be a necessary element to establish relationships among companies and websites. Some

advertisements are either provided by official accounts for beauty based companies or some

skin-care based beauty bloggers who pay huge amounts for promoting the product. Based on

the statistical reports, the beauty products show satisfying outcomes. Advertisements over

websites show privilege over channels and other methods. The following are the factors

associated with it:

Higher spreading speed

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Abhisek Pal, Pritipadma Panda and Sandeep Mukkamala

http://www.iaeme.com/IJM/index.asp 770 [email protected]

Low cost

Wider use of products

Easier operation

Effective usage

Weibo [17] is a most successful social networking site, indeed the users do not know the

person related to it for sharing the timely information. The official website has a media based

attribute for generating breaking news that pass more fastly among the users with simple

media platforms. However, customers have to participate in this process to promote the use of

beauty care based products. Any individual can express their view and opinion based on

news, arguments with other users. This helps in providing a proper insight towards the

product use.

In the past few decades, e-commerce based business has been developed more fastly and

it influences social networking to a greater extent. Similarly, Alibaba [18] owns a huge online

shopping website with an investment of 5.90 billion dollars for stocking. It turns out to be the

biggest stock holder market. Taobao and weibo establish a standardized relationship and the

latters is considered as a huge tunnel for customer flow among the social networking sites. In

the year 2016, there is an average of 2.20 billion users who are admitted with use of social

networking where 85% of beauty care purchase is only through mobile terminals. Similarly,

Taobao shows 70% mobile flow and establishes a substantial growth and correlation among

them.

The major drawback associated with this online shopping is the lack of sense in sharing

and participating. However, comments and reviews are often provided by the users of beauty

care products. In connection to weibo, social networking is considered as a huge media and

base attribute. This also increases the drawback associated with it. The use of these websites

can boost the communication among the uses and flow between them. Some newer and a

huge channel is used by these social networking mediums for improving the benefits of

beauty-care usage.

The concept behind the establishment of beauty products over online websites are initiated

from the earlier 2013. Initially, people identified the promotion of cosmetics through online

sources. However, these frameworks and strategies are not completed successfully. Later, to

address these issues, the companies concentrated on posting the flaws identified in selling and

purchasing the products. Therefore, the users can open up their perspective towards the

product quality. This method is considered to be more simple and the outcomes are pretends

to be fine. So that the product sellers can identify the flaws and work on it. With this a huge

business has been stepped in.

5. CUSTOMERS’ CONSUMPTIONAL VALUE (CCV)

As the perspective of customers changes, the cosmetic product purchase is also changed based

on the individual decision making process. It is adopted in a different manner. The major

factor that influences the choice of customer behavior is based on perceived value. The

investigators use various terms to describe the perceived value; however most rely over the

common term. The commonly used marketing term for cosmetic products include customer

value, perceived value. This is later defined as consumption value [19]. Here, the variables are

considered as critical values. This marketing strategy has gained a huge acceptance level

among the practitioners and researchers. This customer consumptional value is a theory that

determines the judging nature of a customer over a certain product. This findings is included

in sociology, economics, psychology, marketing and customer nature. This can be applicable

based on individual choice towards the complete range of product and services. It can be

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Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour

http://www.iaeme.com/IJM/index.asp 771 [email protected]

Self-

identity

Materialism

Hedonism

Conspicuou

sness

Status

value

Attitude

Usage

behavior

Personal measure

Social measure

either intangible or tangible. It also relies that: customer choice is influenced by the

consumption values; 2) it shows various consumption values for generating various

contributions in any situation. The values are considered to be more independent as in Fig 3

and Fig 4.

Figure 3 Attitude and behavior of customers in buying cosmetic products

The consumptional value recommends different values based on the product purchased. It

shows ultimate impact over the product purchase motivation. It is also essential to observe the

interpretations of the product. The positive impact over these values are identified using the

added elements in cosmetic products and their choice for using the product. The CCV gives

deeper knowledge towards the underlying cause of recognizing the decision making process

of the consumers. The limitation behind this CCV is because of voluntary, rational, individual

and systematic decision making processes. Therefore, it cannot be applied to identify the

nature of more individuals [20]. Therefore, it leads to various constraints to end users

contexts.

5.1. Functional Measure

It is measured as a major factor that drives customer‟s choice and related to physical and

practical factors like stability, reliability and product price. These values are considered for

establishing functional advantages of brand or product. Therefore, the cosmetic products are

intended to provide better performance, quality, low cost, price, quality and better values. The

functional values are classified based on product attributes and marketing nature. It is

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Abhisek Pal, Pritipadma Panda and Sandeep Mukkamala

http://www.iaeme.com/IJM/index.asp 772 [email protected]

interpreted in two forms: price-value and quality value. The former specifies the external and

internal reference price as the customer evaluates the purchase decision. The latter specifies

the product attributes, that is, quality and product texture.

5.2. Social Measure

It is considered as a perceived factor that is obtained from an alternative source with one or

more social groups. The product customers believe that friends, family, relatives and

colleagues show some characteristics and it is influenced by their behavior. Various

investigators recommended the social influence and subjective norm based impacts on

individual attitude towards various users. The social measures are identified with the

influence of peer groups and social concepts.

5.3. Conditional Measure

The conditional measure is a CCV that is attained based on the results from a certain scenario

or some set of circumstances faced by decision making. These measures are related to the

alternative source of situations and circumstances faced by the decision makers. They are

restrained or promoted for decision making. Various CCV influence the perceived customer

values. The lack of conditional value gives advertisement and accessibility effects in this

work.

5.4. Emotional Measure

It is also an alternative CCV measure that arose the affective and feelings state. The emotional

experiences are generated from various experiences that are attained from effectual

experience, that ranges from small positive to stronger emotions like satisfaction and joy. The

cosmetic industries cannot have functional values devoid of emotions. The lack of emotional

value are analyzed by retail service quality and store atmosphere.

Figure 4 Personal and social measures towards cosmetic brand

Personal measure

Social measure

Attitude

toward

cosmetic

brand

Cosmetic

usage

behavior

Self- identify

value

Materialistic

value

Hedonic

value

Conspicuous

value

Social status

value

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Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour

http://www.iaeme.com/IJM/index.asp 773 [email protected]

5.5. Epistemic Value

It is also considered as an alternative CCV measure to arouse curiosity and offer novelty for

knowledge. This is chosen, when users are curious, bored and to perform learning desires.

Users select alternatives to fulfill fashionable factors. Users can purchase cosmetics as they

need to experience a newer product as it gives unique experience. The investigators examined

the effect of packing design of customer value.

6. CUSTOMER SATISFACTION VERSUS CCV

The CCV gives a narrow view towards the value components that influences consumption

based decision making. Moreover, cognitive ideas influence various behavioural outcomes

like brand loyalty, customer satisfaction and behavioral usage intentions [21]. Customer

satisfaction is defined as “individual feelings show disappointment or pleasure that outcome

from product perceived performance. When the performance is not fulfilled then users are not

satisfied. When expectation is considered to be more fulfilled, every user is not fulfilled and

expectations are huge. The customers show loyalty longer.

Users‟ satisfaction and various CCV measures play a crucial role to maintain and fulfill

the advantages of customer satisfaction for frequent collection of indicators and perceptions.

Here, data is transferred based on customer tending and gives positive experience with goods

and services. Therefore, the ability of service/product providers can give finest satisfaction for

service/product and to construct a stronger relationship among the customers [22]. To explore

the relationship among the customer satisfaction and customer value are provided by key

determinants like customer value. Here, brand value is posted based on relationships

established by customer satisfaction and customer value.

7. BRANDING MEASURES

The brand is determined by the name or symbol like the logo. It differentiates the business

from the available competitors in the market. Customers use brands for providing the personal

stories and their identities. The position of the product over the market is based on culture,

people and society. This provides a meaning to the customer and reveals their nature of

producing and selling. The brand is measured as a source of distinguishing one product from

the other to fulfill the users' needs. The branding image is determined by the reflection of

brand association between consumers memory [23]. This image can generate values based on

customer needs and to process information, differentiate brands, generate reason to purchase a

product, to provide positive feelings and offer extensions of it. Maintaining and creating

branding images is so essential for establishing marketing programs and strategies [24].

Hence, it is essential to recognize the process of image formation, loyalty and satisfaction in

various cosmetic industries.

8. SWOT ANALYSIS

The SWOT specifies weakness, strength, Threats and opportunities. The weakness and

strength of a product's SWOT analysis are internal constructs, where external developments

are challenges and opportunities as in Table I. This analysis is performed by making the

company to develop a benchmark standard to compete with the industrial rivals [25]. For

example, Lakme is a standard company that performs and establishes benchmark standards

when compared to other products.

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Abhisek Pal, Pritipadma Panda and Sandeep Mukkamala

http://www.iaeme.com/IJM/index.asp 774 [email protected]

Table 1 Strength and weakness of cosmetic products

Parameters Features

Cosmetic product strength

1. Performs global accessing resource technologies

and establishes best practices

2. Potential target to save cost

3. Integration of distributed production and supply

chain

4. Establishing connection with other companies

and stronger R & D capacities

5. Brand based on Indian origin

Cosmetic product weakness

1. Reduced salon quality

2. product quality varies based on its range

3. The product is higher for the Indian customers

Cosmetic product opportunities

1. Developing building collaboration with fashion

designers

2. Improves customer to provide fresh quality level

and efficacy in innovation

3. The growth of the brand relies over the depth of

usage and frequency of categories.

Cosmetic product challenges

1. Longer term non-existence towards brand image

2. Falsification of product perception in rural and

small town

3. aggressive competition among the local and

multi-national level

In India, there are huge competitive companies that produce, sells and markets the

cosmetic products as depicted in Table II. The competition among these companies is to

enhance profitability.

Table 2 Companies and their productivity

S. No Company Name Year of establishment Annual Turnover

1 Elle 18 1998 $15 M

2 Himalaya 1930 $26 M

3 Revlon 1995 $3 M

4 L‟oreal 1909 $32 M

5 Lotus 1993 $1.8 M

6 Lakme 1952 $50 M

7 Biotique 1984 $3.4 M

8 Shanaz Husain 1970 $ 38 M

9 Maybelline 1915 $96 M

10 Color Bar 2004 $3 M

Table 3 SWOT analysis

Internal/

External Opportunities Threats

Strength

S-O

Shows major benefits and uses

the opportunity

S-T

Considers the advantages and

eliminates the threat

Weakness W-O opportunity seizing and

overcome the defects

W-T

Make-up defects and

eliminates threat

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Recent Trends of Cosmetics in India: A Review on Marketing Strategies and Consumer Behaviour

http://www.iaeme.com/IJM/index.asp 775 [email protected]

The SWOT analysis is formulated to show the marketing strategies used by various

industries and to improve the strength of these cosmetic industries in the market. This is

performed in both internal and external environments to know the responses or feedback from

the companies. S-O, S-T, W-O and W-T are strategies used during marketing the products as

in Table IV.

9. 4P ANALYSIS

Based on Philip Kotler view, “good marketing is based on 4P‟s: price, product, promotion and

placement”. First, Product policy is depicted as a decision made by commercial or

manufacturing companies based on structure, size and evolution of goods and services.

Second, price is considered as the marketing instrument which shows profit of a company by

producing investments and expenses. Third, placement policies give necessary balance among

supply and demand between the customers and producers. Finally, promotion policy is

considered as a key for marketing to achieve the goals.

10. CONCLUSION

Basically, the use of cosmetics is to change or to improve the nails, lips, hair, skin and beauty

of eyes. The change of an individual appearance is because of the cosmetics used. Therefore,

from ancient period to this modern era various cosmetics were used by the young people.

Cosmetics are used by both men and women from birth till death and play a major role in day-

to-day activities. The testimonials for use of cosmetics are provided by the growth of the

cosmetic industries all over the world. The huge populated countries like Indian is also

significantly multiplied with the use of cosmetics. Some examples for these are Himalaya,

Lakme, Loreal and so on. The cosmetic uses hold a major role in every individuals‟ life.

Therefore, establishing marketing for these cosmetic products turns to be more competitive.

This work concentrates on analyzing the existence of cosmetic products, the strategies

involved in market and the benefits attained by every individuals‟. The findings and analysis

with SWOT and 4P‟s are considered as a baseline process for examining the patterns related

to cosmetics in India. As many industries are coming up with newer products in cosmetic

production, some major companies like Himalaya, Lakme plays a foremost role to trap the

market and remains to prevail over the market for longer period all over the world. In future,

the analysis towards the marketing strategies are explained and strategies the influences the

growth of the product markets are analyzed.

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