An Exploratory Marketing Research on

Flow of presentation
1. Industry Profile and Background
2. Problem definition
3. Environmental Context
4. Management Decision Problem
5. Management Research problem
6. Research Methodology
7. Hypothesis and Questions
8. Analysis
9. Conclusions
10. Limitations
Industry Profile
Market Size
 Indian skincare market ~ Rs 2,100 crore
 Skincare moisturizer market ~ Rs 1,600
crore
 Premium Skincare Market ~ 450 crore
 Skincare market has been steadily growing
at 16 per cent as of last year
 Anti-Ageing Market ~ 60 crore
 Trend
 Anti-ageing solutions are nascent but gaining
ground
 Anti ageing is only 3% of the total skin care
market at [$15 million], which means there is huge
potential. It has been doubling every year for the
last three years,
 Development of the skincare category in India
 Growing consumer awareness
Brands & Companies
 HUL – Pond’s Age Miracle Range
 P&G – Olay Total Effects: Fighting the ‘7
signs of ageing’ (lines and wrinkles,
sagging, uneven skin tone, age spots,
pores, dullness and dryness).
 L’Oreal
 Garnier: In India from last decade
 Shehnaaz Hussain skin care
Olay (P&G)

Globally P&G’s
personal care market is
around $20 billion, of
which $2 billion is
contributed by Olay
Target Consumer
Middle aged socially active Indian women
looking for one product that will help her stay young
and beautiful

Brand Ambassadors
Apart from Sushmita Sen,
 Roopa Purshottam, Economist & Head, Future
Trends (Future Group),
 Anita Dongre fashion designer
 Tisca Chopra, TV anchor and actor
Problem Definition
 Industry Experts:
 Rashi Mittal, P&G
Area Sales Manager
Mumbai
mittal.r.2@pg.com

Dr. R. K. JOSHI
senior consultant and
coordinator of dermatology at
Indraprastha Apollo Hospital
new Delhi.
 It is the working woman who is more
conscious of the way she looks rather
than the woman who stays at home
 Systematic use of displays trained and
motivated sales persons and
representatives
 Grey Markets and distribution inefficiency
 Price
 Home made pastes are very popular,
Environmental Context

Past info. and forecasts

 In 2003, facial care products totaled 72.1% of the Indian
skincare market Body care made up a further 12.8% of
the market's value. Sun care products held the smallest
share (4.2%) in 2003. Till this time market for anti ageing
was not created.

 For 2008 the Indian skincare market is forecast to

have a value of $134 million, an Increase of 42.8%
since 2003. The compound annual growth rate of the
market in the period 2003-2008 was predicted to be 7.4%.
Buyer behavior
 Geographical locations
only in 6 metros

 Demographic and psychological characters of

Indian Women
like skin, lifestyle differences, consumption
habits
Continued...

 Media consumption habits and Promotion responses

 Price sensitivity

 Store preferences

 Buyer preferences
 Economic Environment
Economic growth of India is rapid and
purchasing power , disposable income is high of
the target audience.

 Marketing and Technological Skills

interactive and consulting website and
promotions like free samples, exchange of used
creams.
Management decision
Problem

 How to gain market leadership in Indian

anti-ageing segment
Management Research
Problem

 Toidentify the factors which influence

purchase decision of Indian consumers.
Research Methodology
 Exploratory research is done on the information
collected
 “single cross-section design”
 Scaling and measurement of research design
varies,
 Questionnaire design
 Convenient sampling
 RESEARCH QUESTIONS AND
THE HYPOTHESIS
1. Does age have relation with use of anti-ageing products to
consumers
Ho: Age doesn’t have relation with use of anti-ageing
products to consumers
H1: Age have relation with use of anti-ageing products to
consumers
2. Does Income have any relation with use of anti-ageing products to
consumers
Ho: Age doesn’t have relation with use of anti-ageing
products to consumers
H1: Age have relation with use of anti-ageing products to
consumers
Continued…

3. Does Brand name affects the purchase decision?

H0: Brand Name doesn’t affect the purchase
decision
H1: Brand Name affects the purchase decision

4. Does Quality affects the purchase decision?

H0: Quality doesn’t affect the purchase decision

H1: Quality effects the purchase decision
Continued…

5. Does Price affects the purchase decision?

H0: Price doesn’t affect the purchase decision
H1: Price affect the purchase decision

6. Does Promotional schemes affect the purchase

decision?

H0: Promotional Schemes doesn’t affect the

purchase decision
H1: Promotional schemes effect the purchase
decision
Continued…

7. Does marketing (consulting) affect the purchase

decision?

H0: marketing doesn’t affect the purchase

decision
H1: marketing affect the purchase decision

8. Does packaging affect the purchase decision?

H0: packaging doesn’t affect the purchase

decision
H1: packaging effect the purchase decision
Continued…

 9. Distribution (availability) affects the

purchase decision?

H0: Distribution doesn’t affect the purchase

decision
H1: Distribution affect the purchase decision
Questionnaire
 Which Anti-Ageing treatment do you prefer to use or
recommend?
* Botox *Laser Treatment/Surgery
* Anti-ageing Cream *Home made pastes
• None

2. If you go for Home made pastes, what restricts you to

go for other available solutions?

* Fear of side effects * High cost

* Unavailibility/Difficulty in use

* You don't see others using it

* I don't use home made pastes

 3. When we say Anti-ageing cream, which all
Brands come to your mind?

 4. Please rank the following parameters on a

scale of 1-5 which you consider imoportant
when you purchase anti-ageing cream.
 Sound quality
 Brand name
 Ease of use
 Consulting
 Appearance/Styling
 Promotional Schemes
 Availability
 Price
 5. Please mention from where you mostly purchase
your beauty products.
 Beauty parlour
 Retail stores
 Online purchase
 I don't mind about place

 6. You decide the Brand to purchase...

 before going to store
 in the store

 7. Are you familiar with the brand OLAY

 Never heard of it
 I am aware but never used it
 Used it only sometimes
 Use it on a regular basis
 8. How did you hear about OLAY?
 TV
 Magazines
 Internet
 Friends
 Beautician

 9. Would you recommend OLAY to your friend or associate?

Please tick one

 10. Please fill the following details (optional)

 Name
 Age
 Gender
 Annual Household Income
Which Anti-Ageing
treatment do you prefer to
use or recommend?
what restricts you to go for
other available solutions?
Please rank the following
parameters on a scale of 1-5 which
you consider important when you
purchase anti-ageing cream.
 Sound quality
 Brand name
 Ease of use
 Consulting
 Appearance/Styling
 Promotional Schemes
 Availability
 Price
Please mention from where you
mostly purchase your beauty
products
You decide the Brand to
purchase...
Are you familiar with the
brand OLAY
How did you hear about
OLAY?
Conclusions
 By this Exploratory research thumbed
on factors which affect consumer buying
behavior .

 Guide lines for Descriptive Research

Limitations
 Response errors

 Background noise

 Industry experts access

 Economical limitations
References
 www.olay.com
 Rashi Mittal, P&G , mittal.r.2@pg.com
 Ramchandram Dhannaram
Managing Partner - Solus Media
0091-40-23230750
 www.datamonitor.com
 www.search-ebscohost.com
 http://www.censusindia.gov.in/Census_Data_2001/Census_
Data_Online/Social_and_cultural/Age_Groups.aspx
Thank You