WORLD
The majority of the people want to find a way to fight ageing, which is why
there is such a high demand for products which hide or fight the signs of ageing.
There have been many options for controlling on wrinkles like Plastic surgery,
Botox etc. but plastic surgery could not get success because of its complexity
and high cost and remained in the reach of film stars and high profile people.
Same the case is with Botox but it was not complex and it is relatively
economical. But Botox has its own side effects.
Anti-ageing skin care products are expected to grow 11% annually by 2008. The
report from Fredonia Group entitled Anti-Ageing Products sets the 2004
market for health maintenance products at $18 billion in 2004, compared with
just $2 billion for appearance products. The overall anti-ageing market was set
to grow by 8.7 per cent a year over the next five years, reaching a total value of
$30.7 billion by 2009, compared to an estimated value of $20.2 billion in 2004.
But although health maintenance products are expected to increase by 13.6
percent, appearance products are slated for 17.6 percent growth, with the highest
increase, of 19.8 percent, in the skin care subcategoryAnti-ageing products
tend to focus on skin care, where anti-wrinkle cosmetics are now taking the
market by storm.
For products that target specific age-related conditions, the global market was
estimated at $6.9 billion in 2003, indicating a growth rate of 11.4 per cent.
India's personal care market is becoming more sophisticated. According to
Indian census report 113,742,306 females are in the age group of 34-59 years.
So huge potential is lying in.
The Indian skincare market grew by 9.4% in 2003 to reach a value of $94
million. The compound annual growth rate of the market in the period 1999-
2003 was 10.8%. Annual growth has fallen steadily from its 2000 high of
12.0% to a low of 9.4% in 2003.
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ABOUT OLAY
The anti-ageing cream, Olay Total Effects, has been launched only in six metros
in the first phase in India and has been endorsed by former Miss Universe and
actor Sushmita Sen. "Initially 'it is made available at around 2,000 outlets
including hyper retail stores, chemists, beauty advisors and the existing
distributors in Hyderabad, Delhi, Mumbai, Kolkata, Chennai, and Bangalore,".
After the overwhelming response by discerning Indian women to the Olay Total
Effects, P&G has now initialed a unique campaign - The Olay Total Effects
Challenge*. This is an opportunity to enable many more women to experience
the delight of one product that takes care of several ageing skin needs.
Olay is not alone in its efforts to increase prices at $27.99 each also. In skin
care, L’Oreal and Neutrogena sell products for over $20, and an influx of
European brands carry price tags as high as $80 in some drugstores. In the
cosmetics aisle, Physicians Formula has fueled sales and space gains with
premium prices, but this spring Max Factor and Revlon's Vital Radiance faile to
convince women to pay more for their offerings. Both lines have lost display
space and Revlon has discontinued Vital Radiance.
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MARKET SEGMENTATION
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 aging was not
created.
RESEARCH METHODLOGY
RESEARCH DESIGN
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A Research Design consists of the following parameters: -
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Secondary data:
Secondary data was collected mainly through the Internet, companies’ websites
and based on the talks with the company report.
Primary data:
The Primary Data was collected from the survey which involved meeting with
consumers and getting a Questionnaire filled.
Time: 1 month
• With regards to consumers any individual above the age of 25 formed the
part of target population
Sampling Frame:
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Sample size:
• The research is done by not focusing on the effects of time and cost
consideration.
• The selected sample unit, sample and sample size will be representing the
target population.
• The method of convenient sampling and sample frame selection will not
lead to much error in answers.
• The degree of confidence and degree of precision are enough for the
study.
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The questions that would help in analysis of this question :
Q2. If you go for Home made pastes, what restricts you to go for other
available solutions?
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It was important for us to know the reasons why would ladies prefer to use home
– made paste over anti-ageing cream and the result we got showed that fear of
side effects was the main factor.
Q5. Please mention from where you mostly purchase your beauty products.
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It was necessary for us to know the place from where ladies prefer to buy the
anti-ageing cream.
Q4. Please rank the following parameters on a scale of 1-5 which you
consider important when you purchase anti-ageing cream.
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This question’s data was used for analysis of the hypothesis as we wanted to
know that which parameter was given more importance by the ladies and the
survey result shown that SOUND QUALITY was given more importance.
ANALYSIS:
Ratings
• Sound quality - 45
• Brand name - 30
• Ease of use - 0
• Consulting - 25
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• Appearance/Styling - 10
• Promotional Schemes - 25
• Availability - 20
• Price – 10
=66.478
As the calculated value of Chi-square is more than the table value the table
value the null hypothesis is rejected i.e. there is preference for a particular
parameter and even through the survey its observed that SOUND QUALITY is
the preferred parameter.
Q3. When we say Anti-ageing cream, which all Brands come to your mind?
There are many brands available in the market which are famous in cosmetics
and have the captured large market.
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We wanted to check that, when we talk about anti ageing creams, which brand
comes to minds of ladies.
This question is very important. It tests what percentage of ladies pre decide
which brand to go for.
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The result shows 65%ladies decide the brand to purchase before going in store.
Which means purchase of an anti- ageing cream has much influence of Brand
name.
This is basic question to analyze the hypothesis. To check the fame of the brand,
first, there need to check familiarity of the brand. We wanted to check out how
many people are aware of the brand OLAY
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85% ladies are aware of the brand,
60% ladies use it which include regular users and sometime users.
This is background question again to see how much ladies are aware of the
brand and at the same time which medium of promotion is effective in making
people aware of the brand.
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Results are very clear,75%of ladies are aware of the brand OLAY as an anti-
ageing cream through the medium of TV.
This may be because of the promotional strategies used by the company with the
famous actress Sushmita Sen as a brand ambassador.
This checks, whether the customers are happy with the product, and upto what
extent ladies are brand loyal for the product. And therefore ultimately verifying
the fame of the brand OLAY
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30% of ladies said they will recommend OLAY to their friends or associates.
ANALYSIS
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Applying Chi square test
OLAY Others
60 40
= 100/2 = 50
Hence, Ho is rejected
CONCLUSION
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1. P&G is one of the leading companies in personal care segment of the
world and it has entered in India with few ranges in beginning.
2. The first hypothesis was framed to check the preference of consumers for
the 8 parameters given in the questionnaire where Ho was rejected. This
shows that consumers have particular preference for sound quality rather
than price.
3. It has been proved through this survey that Olay is a famous anti-ageing
LIMITATIONS
Considering a big city like Mumbai, a sample size of 100 might not cover
the whole targeted population
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2. Response Errors
3. Background Noise
Since we were not from the company so were not offering any free
sample or rewards so consumers were not responding many times.
The primary and secondary data are limited and are constrained by the
availability and approachability.
6. Age constraints
Since the target age considered by us was 25+, we couldn’t know the
viewpoints of youngsters on such products. They might not be using it,
but they have their own opinions. Some may be in favor and some may
not.
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Bibliography & Webliography
Paneerselvam R., Research Methodology.
www.olay.com
www.gettyingimages.com
www.google.com
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