Group-4
Hair Color
Proposal-3
Meghana M (17089)
Shobitha SM (17099)
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Table of Contents
Background of the Industry .......................................................................................................................... 3
Mysore Market .............................................................................................................................................. 4
Decision Making Context ............................................................................................................................. 5
Research Objectives ...................................................................................................................................... 5
Research Design............................................................................................................................................ 5
Research Questions ....................................................................................................................................... 5
Dummy Table ............................................................................................................................................... 5
Information Resource Planning Table .......................................................................................................... 8
Research Approach ....................................................................................................................................... 9
Sampling Plan ............................................................................................................................................. 10
Data Analysis .............................................................................................................................................. 10
Questionnaires............................................................................................................................................. 11
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Background of the Industry
The Indian hair color market is worth Rs 1800 crores and has seen a growth of 15-20% every
year in the last decade. It is one of the largest segments is powder hair color or hair dye which
due to its ease of use consists of 45-50% of the market and is growing at 15%. Crème forms 25%
due to its higher price point, but growing faster at 20% parallelly Beauty salons are growing
almost at the rate of 30-40% in the last few years. With a penetration level of 36%, the market
offers huge opportunities for growth.
Hair color market in India is driven because
• Today the consumer not only needs cover grey hairs but also to look presentable and
stylish and to feel better and has become a fashion statement, especially for the young
and trendy
• As their household incomes as well as the disposable incomes continues to grow they are
willing to spend on high-quality hair care products and are willing to visit salons and go
for services such as hair spas, straightening
• On the other hand, Do-it-yourself (DIY) colorants are gaining immense popularity
because of their affordability and the offering of ‘salon-like hair’
Based on how long the hair coloring lasts, hair colors can be classified as:
• Permanent
• Demi-Permanent
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• Semi-Permanent
• Temporary
• Organic – They are the most abused marketing strategy especially as people confuse it
with natural or herbal. In actual sense, it conveys the way the ingredients have been
treated before being formulated into hair color. However, according to laws in few
countries, a brand requires proper certification to label their product as Organic.
However, an Organic product may not be completely safe as for example it can have
90% of harmful chemicals and just 10% of organic products but still be marketed as
organic product to motivate people to buy it.
• Herbal – These are derived from plants and herbs. Although herbal products are
supposed to be 100% made of plants and thus completely safe, companies on the other
hand add few herbs to their chemical composition as a USP to market their product
• Natural – These products are not to have any artificial or synthetic ingredients. Thus it
can have some herbal substance as well as some naturally processed chemical.
Companies mislead public with the world ‘nature’ also by adding few natural
components to their high chemical composition.
Mysore Market: There are nearly 10 lakh people residing in Mysore. Many of the
respondents are using chemical hair color. Survey has to be done, that how many are using
organic hair color.
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Decision Making Context
• Whether there is demand for Organic hair color in Mysore.
Research Objectives
• To find out whether the organic hair color is accepted by the people of Mysore.
• To understand the buying behavior of costumers over inorganic hair color.
• To find out which hair color they use regularly.
• To find out readiness of customer to use Organic hair color.
Research Design
• Type of Research Design: Exploratory research.
Research Questions
1. What is the use of organic hair color? How effective it will be on human hair?
2. Will there be any side effects on human skin?
3. Which are the most preferred brands in this segment?
4. What should be the price, so that customers prefer to buy regularly?
5. Which things affect the buying behavior?
Dummy Table
1 Age Group
18-20
20-25
25-30
30-35
35-40
40-45
45-50
Above 50
2 Gender
Male
Female
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Others
3 Education
Secondary
High school
Graduate
Post graduate
PHD
Any other
HIGHLY EDUCATED
LESS EDUCATED
4 Community
East
West
North
South
Any other
5 Occupation
Student
Services
Retired
Business
House wife
Working outside
Family business
Others
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Colour
Sachet
Tube
Any other
7 Willingness to spend
50-100
100-150
150-180
180-225
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Information Resource Planning Table
Source of Primary/Secondary Information Points Measurement
Information Approach
Retailers Primary 1. Preferred brands. Nominal Scale
2. Price. Ordinal Scale
3. Purpose to buy.
Young People Primary 1. Need. Comparative Scale
2. Requirements. Ordinal Scale
3. Purpose. Nominal Scale
4. Desired Color.
5. Brand awareness.
6. Brand Image.
Middle Age Group Primary 1. Readiness to buy. Comparative Scale
2. Need. Ordinal Scale
3. Price. Nominal Scale
4. Purpose.
5. Problems faced.
Saloon/beauty parlor Primary 1. Need. Nominal Scale
2. Price. Ordinal Scale
3. Brand awareness.
4. Effects of usage.
5. Benefits of Product.
6. Brand Preference.
7. Shelf life.
Web Resources Secondary 1. Current trends
2. Nature of Demand
3. Popular brands
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Research Approach
Hypothesis
H1 Respondents are not willing to try new hair color in the market.
Major share of Hair colour customers falls in the age group of (18-55) and belong to
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Sampling Plan
Sample
Geographical location: Within the limits of Mysore city. We are trying to get information
from the places like Malls in the city, saloon/ beauty parlor, fancy retailers.
Data Analysis
After collecting the required information, we can use various statistical tools like
correlation, regression techniques to find relations between various characteristics and
thus test the hypothesis we made earlier.
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Questionnaires
RESPONDENT PROFILE
Name:
Gender
o female
o male
o 18-25
o 25-45
o 45-55
o yes
o no
o 2-4 weeks
o Once in a month
o Every alternate month
o Others
o Not interested.
o Feels unhealthy.
o Any other reason.
o Yes
o No
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5. If yes, what kind of brand(s) have You used so far?
7. How satisfied are you with your current brand? 1-5 (1 is not satisfied at all, 5 is totally
satisfied)
o 1
o 2
o 3
o 4
o 5
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10. Where do You color/dye your hair?
o at home
o at the saloon/ beauty parlor
o 0-100
o 100-499
o 500-999
o 1000 or above
o TV
o Newspaper/magazines
o Word of mouth
o Internet
o Saloons
o Any other
o 10ml
o 25ml
o 50ml
o 100ml
18.Do you take the advice from dermatologist to use hair color?
o Yes
o No
o Organic brands
o Others
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