Consumer behaviour

towards Organic Hair Care Products

Group 7 - Section G
Ritija | Sai Bharadwaj | Saloni | Sanket | Sauhard | Shivam | Snigdha
Current Market Scenario
Pseudo Organics Top Brands Cosmetic Majors
Background
“Indians prefer 'natural' and 'organic' in personal care”
- Eeessseeeconom
Current Scenario at

Two Hair care brands in India

Anti-Dandruff Anti-Hair Fall

MD Problem

➔ Given the increasing demand for organic products, the marketing team
wishes to salvage the situation by launching a new organic shampoo for the
Indian market.
Research Objective

➔ Do consumers prefer organic cosmetic products over others?

➔ Which consumer segments would prefer organic cosmetic products?
➔ From consumers who prefer organic products, what proportion would be interested in
organic hair-care products?
➔ Are they willing to pay a premium for organic products vs the already existing
products?
➔ Are consumers willing to switch from their existing shampoos?
MR Problem

➔ To determine if the consumer consider organic cosmetic products superior to others

cosmetic products
➔ To determine the target consumer for organic hair-care products
➔ To evaluate the price elasticity of consumers i.e. are they ready to pay more for natural
products vs the already existing non-natural products
➔ To evaluate the consumers’ willingness to switch to organic shampoos.
Rationale (1/3)
1 ★ SELF ACTUALISATION

★ ESTEEM 2

3 LOVE/ BELONGING

★ SAFETY 4

5 PHYSIOLOGICAL

MASLOW’S HIERARCHY OF NEEDS

Rationale(2/3)
Behavioural
Beliefs
Attitude
towards
Outcomes Behaviour
Evaluation
Behavioral
Behavior
Intention
Normative
Beliefs Subjective
Norms

Motivation to Theory of Reasoned Action – TRA

comply Fishbein and Ajzen (1975)
Rationale(3/3)

Satisfaction

Perceived
Relevance
Switching Switching
Intention Behavior
Subjective
Norms

Switching Customer Switching Theory

Costs S. M. Keaveney (1995)
 Research Plan and Design
Qualitative Quantitative
approach approach

Conduct Focus Group Discussions to get an Conduct an Online Survey to have high number
in-depth insight on the behavior of consumers. of respondents to reduce sampling errors and
increase the reliability of the research.
Qualitative Research - FGD (I/II)
Objective: To gain insights about the buying preferences
from the Sell Side
Length: 60- 90 minutes
Profile: Cosmetics shopping assistants and sales agents
from retail stores like Big Bazaar, Spencers, Reliance Mart,
etc (8-10)
Location: Tier I Cities ( Delhi, Mumbai, Bangalore)
Sampling: Judgement (or Purposive) sampling to
specifically approach individuals with certain
characteristics.
Questions - FGD (I/II)

1 Price sensitivity 2 Perception 3 Purchase Trends

What price are the consumers
willing to pay for organic
shampoos?
● Income levels
Do consumers consider
Organic Hair care products to
be superior than other
products?
● Attitudes
● Awareness
Do consumers specifically ask
about organic shampoo
features, interest levels ?
● Conversion figures
● Repeat Sale figures
● SKUs sold primarily
Qualitative Research- FGD (II/II)
Objective: To gain insights about the buying preferences
from the Buy Side
Length: 60- 90 minutes
Profile:
● Middle Age Upper Middle Class adults
● Young middle class adults
of different income and age groups with a mix of existing
users and people who do not use organic
Location: Tier I Cities ( Delhi, Mumbai, Bangalore)
Sampling: Stratified sampling to ensure same proportion of
people from different categories
Questions - FGD (II/II)
1 Price sensitivity
● What price are you willing to
pay for organic shampoos?
● Income levels
2 Perception
● What attributes do you
associate with organic
products?
● Do you feel that organic hair
products are functionally
better than others?
3 Purchase Trends
● How often do you ask for
organic substitutes of a
product?
● How often do you
recommend organic products
to others?
Secondary Research Design

● Research Papers and Journals

Sukanta Chandra, Sudipta Majumdar (2015). Identification and Analysis of Factors Influencing
Preferences for Green Products.

Valarie A. Zeithaml (1988). Consumer Perceptions of Price, Quality, and Value: A Means-End Model and
Synthesis of Evidence.

Sheppard, Hartwick & Warshaw (1988). The theory of reasoned action: A meta-analysis of past research.
Journal of Consumer Research.

● Financial Reports of Competitors like Patanjali, Kama Ayurveda, Lotus Herbals etc.
Hypothesis

❏ H1: Consumers behavioural beliefs and attitudes have a positive influence on consumer purchase
behaviour
❏ H2: Consumers are ready to pay a higher price for products with high level of perceived quality
❏ H3: Consumers outcome evaluation and subjective norms have a positive influence on purchase
behaviour
❏ H4: The safety and self-actualization needs have a positive effect in choosing Organic cosmetic
products
❏ H5: Consumer switching costs and relevance have a positive effect on switching between products
Quantitative Research-Sampling Plan
Target population:

● Profile: Adults aged 18 to 55 years

● Location: Tier-1 cities (Delhi, Mumbai, Bangalore)

● Sampling unit: Individuals

● Time: 2019

Sampling frame: Database of individuals who’ve filled the preliminary survey and are willing to
participate

Sampling technique: Proportionate Stratified sampling with clusters created on the basis of:

● Age: 18-25, 25-35, 35-45 and 45-55 years

● Income groups: high, medium and low-income

Sample size: 12 (4x3) sample-sets of size 100.

Execution: Sample is allocated by strata, the elements in each stratum is allocated a stratum number
from 1 to N and from each stratum, simple random sample is selected of size n.
Tentative Questionnaire

1. Are you aware of the existing products?

2. Does the packaging of a shampoo matter while buying shampoo?
3. What do you look for in the labels of a shampoo?
4. How much does it matter to you if a particular existing brand lives up to its promises?
(eg: Anti-dandruff for Head and Shoulders, Anti-hairfall for Pantene)
5. What are the features you look for while buying a shampoo?
6. Would you like to buy a new organic shampoo if P&G launches one?
7. Will you give the product a try if your peers recommend it to you?
8. Are you willing to pay extra for the above product?
Tentative Cost Heads
Focus Group Discussion
● Questionnaire Development
● Respondent Incentives
● Moderator Costs
● Transcript Costs
● Travel Cost and Room Rental
● Respondent Food and
Refreshments
● Analysis, Preparation and
Report Delivery
Survey
● Costs associated with buying
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● Purchasing email address
lists
● Statistical Analysis Software
● Bulk email sending software
● HTML Service Design
Software
 Timeline
Week 1
Determination of Factors
influencing customer buying
Week 2 behaviour
Selection of Focus Groups, and
Questionnaire Development
Week3
Focus Group Discussion
and Hypothesis Creation
Week 4
Primary Research Data Collection and
Testing of Hypothesis
Week 5
Model Building and
Week 6 Analysis
Results, Report and
Presentation
The Team

Sai Sanket Shivam

Ritija Saloni Sauhard Snigdha

Thank You!