THE ANTI-AGEING MARKET IS ONE OF THE LARGEST IN THE

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

Olay is launched in 1957 in South Africa, now Olay is present in over 55

countries globally. In India, the brand has been distributed and has been
available in the grey market as well. Olay was formulated as a fluid moisturizer
by South African chemist-entrepreneur Graham Wulff and launched officially in
1957. Once popular as 'Oil of Olay, the pink lotion' it is now known as just
'Olay' and enjoys a high recall value in India.

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.

MARKET VALUE FORECAST

In 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%.

RESEARCH METHODLOGY

A research methodology defines what the activity of research is, how to

proceed, how to measure progress, and what constitutes success

RESEARCH DESIGN

A research design is a logical and systematic plan prepared for directing a

research study. The methodology and techniques designed is the program that
guides the investigator in the process of collecting, analyzing and interpreting
data.

The research in this case is exploratory research. Single cross-sectional study

has been used here. Information has been collected from a given sample of
population only once by drawing the sample of respondents from the target
population.

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A Research Design consists of the following parameters: -

• Exploratory research will be done on the information collected

• Use of descriptive research in conclusion research design to attain the
objective of research through “single cross-section design”
• The measurement and scaling procedure that can be adopted for the
research are dependent on the questionnaire designed and validity or
degree of precision desired.
• Questionnaire design
• Sampling process and sample size.

REASONS FOR CHOOSING A PARTICULAR RESEARCH DESIGN

• Exploratory research: Since this research helps to assist the decision

maker in determining, evaluating and selecting the factors which prompt
consumers to buy anti aging products from external sources and reports.
• Descriptive research: This method is used by analyzing the questionnaire
that had been filled by consumers to find the main factors among the
factors that had been spotted by exploratory research.
• Single cross sectional design: Since the data collected in primary
research through administration of questionnaire will be done for one
sample of respondents drawn from the target population of consumers and
this survey will be conducted once.

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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.

Scope of the study:

Area: Mumbai and Thane

Time: 1 month

Product scope: The products in the anti aging segment of all

companies

Defining the target population:

• With regards to consumers any individual above the age of 25 formed the
part of target population

Sampling Frame:

Consumers were selected on the basis of convenient judgmental sampling.

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Sample size:

The Sample Size for Consumers is 100.

ASSUMPTIONS FOR THE STUDY

• 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.

RESEARCH METHODOLOGY PROBLEM

• Is OLAY famous as anti-ageing cream?

• Is there any preference for a particular parameter while buying anti-

ageing cream?

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The questions that would help in analysis of this question :

Q1. Which Anti-Ageing treatment do you prefer to use or recommend?

This was an important question in our questionnaire because we wanted to know

how many ladies out of the sample use anti-ageing cream.

The results showed that 65% of them used anti-ageing cream.

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:

 Is there any preference for a particular parameter while buying anti-

ageing cream?
Ho: There is no preference for a particular parameter while buying anti-
ageing cream.

H1: There is preference for a particular parameter while buying anti-ageing

cream.

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

Degree of freedom = 8-1 = 7

Level of significance = 5% i.e. 0.05

Critical value = 20.278

Expected value = 165/8 = 20.625

Calculated value = summation of (observed –expected)/expected

= 28.80 + 4.261+ 20.625 + 0.928 + 5.47 + 0.92 + 0.01 + 5.47

=66.478

Calculated value = 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.

And response was quite interesting.

55% ladies took name of OLAY

Q6. You decide the Brand to purchase...

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.

Q7. Are you familiar with the brand OLAY?

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.

Q8. How did you hear about OLAY?

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.

Q9.a.Would recommend OLAY to your friend or associate?

b. How likely you to buy OLAY in future?

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.

30% ladies are likely to buy OLAY in the future.

ANALYSIS

Is OLAY a famous anti-ageing creams?

 Ho: OPLAY is not famous anti- ageing cream

 H1: OLAY is a famous anti-ageing cream.

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Applying Chi square test

Q3, Q7, Q9 taken into consideration to analyze this problem.

OLAY Others

60 40

 Degree of freedom : No. of observations-1

=2–1=1

 Level of significance = 5% = 0.05

 Critical value through Chi sq. table = 3.84
 Expected value = Sample size/No. of
observations

= 100/2 = 50

 X*= (60-50)*/50 + (40-50)*/50

= 2+2=4

Table value < calculated value

Hence, Ho is rejected

OLAY is a famous anti-ageing cream.

CONCLUSION

The research carried by us is an exploratory research which is followed by

Descriptive research. We tried to identify those factors which affect buyer’s
perception for any product.

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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

cream in Mumbai. As it is already seen that Ho i.e. Olay is not a famous

anti-ageing cream was rejected when chi square test was applied on the
survey result. Hence H1 was accepted i.e. Olay is a famous brand.

LIMITATIONS

1. Small sample size

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

Many respondents were not involved completely while filling

questionnaires. They just did it for the sake of doing it. Some felt that it is
waste of time.

3. Background Noise

Background noise was also affecting responses. External environment

was also affecting the respondent filling the questionnaire. So the result
might not be accurate.

4. Industry experts’ access

Since we were not from the company so were not offering any free
sample or rewards so consumers were not responding many times.

5. Data collection constraints

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.

 Kothari C. R., Research Methodology, Methods and techniques.

 www.olay.com

 www.gettyingimages.com

 www.google.com

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