Marketing Research Project Perfume

A PROJECT REPORT

“User buying behavior towards Perfume”

Submitted for the partial fulfillment of the requirement for the award

PGDM

ACADEMIC SESSION

(2009 – 2011)

SUBMITTED TO:

Prof. Shweta Jain

SUBMITTED BY:

Prabhakar Rahul Enroll (2009PGDM031)

Puneet Arora Enroll (2009PGDM033)

Amit Bharti Enroll (2009PGDM004)

PGDM (MARKETING AND HR)

Table of contents

1. Introduction

2. Hypothesis

3. Research methodology

4. Data analysis and interpretation

5. Conclusion

6. Suggestion and recommendations.

7. Bibliography

8. Annexure

CHAPTER 1 INTRODUCTION

In this research we have survey the product performance and buying

behavior of the fragrance of perfumes, which are used by people of all

ages. During this research we have interacted with people of all ages

who use perfume. After this research we came to know how people

perceives these products on the variables like price, fragrance,

advertisement, satisfaction, packaging, brand loyalty etc. We also came

to know which particular brand of perfume is most preferred by people

of different age groups. In this research we have surveyed that how

frequently and how much perfume they use, whether they buy small, big

or family pack. Trend of ongoing changes in their likings has been

shown in the report. In this report we have tried to explain the entire

research and facts product wise.

Objective of the study

This project is based on user behavior towards Perfumes. Objectives of

the study are:

1 The other objective is to know about the customer satisfaction

associated with the product and the customer preference level.

2 To increase customer satisfaction and recapture the market share by

fulfilling the customer needs.

3 To study the factors affecting the consumption pattern.

Problem definition:

Problem Statement:- What are the factors which influence the user

while purchasing Perfumes

My study topic deals with User Behavior and different factors that

influence user to purchase a particular brand of perfumes.

As perfume is regarded as one of the biggest Fast Moving User

Good (FMCG), there are many factors in mind of user which induce

them to purchase a particular brand of perfume. Some of these factors

are Price, fragrance, Packaging, Brand name. Ever changing behavior of

user, dominance of different brands in the market compelled me to

undertake a research work in this segment. The prime objective of my

study is to analyze the effect of various factors on buying behavior of

users.

Product Overview

Perfume is a mixture of fragrant essential oils and aroma

compounds, fixatives, and solvents used to give the human body,

animals, objects, and living spaces a pleasant scent. The odoriferous

compounds that make up a perfume can be manufactured synthetically

or extracted from plant or animal sources.

Perfumes have been known to exist in some of the earliest human

civilizations either through ancient texts or from archaeological digs.

Modern perfumery began in the late 19th century with the commercial

synthesis of aroma compounds such as vanillin or coumarin, which

allowed for the composition of perfumes with smells previously

unattainable solely from natural aromatics alone.

The precise formulae of commercial perfumes are kept secret. Even if

they were widely published, they would be dominated by such complex

ingredients and odorants that they would be of little use in providing a

guide to the general consumer in description of the experience of a scent.

Nonetheless, connoisseurs of perfume can become extremely skilful at

identifying components and origins of scents in the same manner as

wine experts.

“The most practical way to start describing a perfume is according to the

elements of the fragrance notes of the scent or the "family" it belongs to,

all of which affect the overall impression of a perfume from first

application to the last lingering hint of scent.”

Fragrance notes

Perfume is described in a musical metaphor as having three sets of notes,

making the harmonious scent accord. The notes unfold over time, with

the immediate impression of the top note leading to the deeper middle

notes, and the base notes gradually appearing as the final stage. These

notes are created carefully with knowledge of the evaporation process of

the perfume.

Top notes: The scents that are perceived immediately on application

of a perfume. Top notes consist of small, light molecules that

evaporate quickly. They form a person's initial impression of a

perfume and thus are very important in the selling of a perfume. Also

called the head notes.

Middle notes: The scent of a perfume that emerges just prior to when

the top notes dissipate. The middle note compounds form the "heart"

or main body of a perfume and act to mask the often unpleasant initial

impression of base notes, which become more pleasant with time.

They are also called the heart notes.

Base notes: The scent of a perfume that appears close to the departure

of the middle notes. The base and middle notes together are the main

theme of a perfume. Base notes bring depth and solidity to a perfume.

Compounds of this class of scents are typically rich and "deep" and

are usually not perceived until 30 minutes after application.

The scents in the top and middle notes are influenced by the base notes,

as well the scents of the base notes will be altered by the type of

fragrance materials used as middle notes. Manufacturers of perfumes

usually publish perfume notes and typically they present it as fragrance

pyramid, with the components listed in imaginative and abstract terms.

CHAPTER 2 HYPOTHESIS

Hypothesis:

After defining the problem we have to find out the tentative solution to

the problem in the preposition forms this tentative solution, the validity

have to check is known as hypothesis.

HO: Fragrance does not influence the user to purchase the Perfume.

HA: Fragrance is the key factor for purchasing perfume.

CHAPTER 3 RESEARCH METHODOLOGY

Primary data:

To analyze buying behavior and in order to gain insight into the buyer

need satisfaction level a questionnaire was formulated and administered

among 50 people in coaching centre ,

Most of the questions is based on likert scale.

Questionnaire was attached in annexure.

Secondary data:

A number of secondary information was used they were:

Web sites: Scribd, Wikipedia and other brands websites. Search of two

previous research papers these two research paper were attached in the

annexure.

CHAPTER 4. Data analysis and interpretation

1. Age group.

Below 15 16 - 20 21 - 25 26 - 30 31 - 35 36 - 40 41 - 45 Above 450

5

10

15

20

25

30

Series1Series2

According to this graph 50% respondents were between age group 16 – 20, 44% respondents between 21 – 25.

2. Profession

Student60%

Employee20%

Business12%

Any other8%

Profession

As you can see in the chart, 60% respondents were students, 20% employee. 12% businessman, and 8% others on which research was conducted.

3. Ratio of people using perfume

Yes84%

No16%

Ratio of user

From this pie chart we can see that 84% of the respondents use perfume and only 16% are those who don’t use perfume.

After this all the interpretation and findings are done on the basis of these 84% users.

4. Frequency of purchasing perfume

Weekly

Monthly

Quaterly

Yearly

8

23

7

4

0.194

0.5476

0.1667

0.0952

FrequencySeries2 Series1

The frequency of purchasing perfume is higher on monthly basis comparing to weekly, quarterly and yearly.

5. Purpose of using perfume

Antiperspirent agent Body Odour regulator Sensitive skin Roll on Body Spray0

109

4

19

0

0.2380.2142

0.0952

0.4523

PurposeSeries1 Series2

The reason for purchasing perfume is higher for the use of body spray which is around 45%, comparing to body odour regulator (23.8%), sensitive skin (21.42%), roll on (9.52%).

6. Brand preference

Men :

AxeLee

NikeAdidas

Tommy

14

22

4

2

0.5833

8.335

0.08330.1667

0.0833

Brand preference - MenSeries1 Series2

Axe is the brand most preferred by men comparing to Lee, Nike, Adidas, Tommy.

Women

FA She Spinz Tommy Girl Calvin Klein

6

2

7

2

1

0.33330.1111

0.38880.1111 0.0555

Brand preference- WomenSeries1 Series2

Spinz and FA is the most preferred brand by women comparing to others like She, Tommy Girl, Calvin Klein.

7. Place of purchase

Gift Gallery Super market Retail Shop Wholesale market Others0

5

10

15

20

25

Place of purchaseSeries1 Series2

According to this graph perfumes are mostly purchased form gift gallery comparing to super market, retail shop, wholesale market and other places.

8. Quantity of purchase

55%

43%

2%

Quantity of purchaseSingle Pack Twin Pack Bulk

According to this chart single pack on more preferred rather purchasing twin pack or in bulk.

9. Reasonable price of the perfume mostly preferred.

Below 150151 - 250

251 - 350351 - 450

More than 500

0

5

10

15

20

25

Price (In Rupees)

Series1 Series2

According to this graph price range of perfume most preferred is between Rs. 151- Rs. 250.

10. Fragrance of perfume preferred

Strong

Mild

Natural

Others

7

14

18

3

0.1667

0.3333

0.4285

0.0714

FragranceSeries2 Series1

According to this graph most of the prefer natural fragrance comparing to mild, strong and other fragrances.

11. Reason behind purchasing perfume

Fragrance64%

Packaging2%

Price14%

Offers10%

Quantity7%

Other thing2%

Purchase factor

According to this chart the strong reason for purchasing perfume is its fragrance which is 64% comparing to packaging (3%), price (14%), offers (10%), quantity (7%), and other factors (2%).

CHAPTER 5 CONCLUSION.

From this research we have arrived at the conclusion that our hypothesis is rejected at 10% level of significance .The value arrived at 10% level is 1.645.This means that Brand influences the user to purchase the Perfume.

1. With the help of question 1 and question 3 we can says that Cadbury is the brand preferred amongst the other brand perfumes like nestle , Amul , etc. the total Weightage is given to both the questions is 10 each and total comes out 20 points. After applying the Z-test on both the questions we arrived at conclusion that our derived value of Z-test of both questions comes out to be less than the tabulated Z-test table Value.

2. With the help of question 6,7, and 12 we can says that brand ambassador influence the user to purchase the Perfume. The value of Z-test is 0.261, 0.19042 and 0.2498. This value is less than the table value, Which signifies that our second hypothesis is rejected.

3. At the end of the conclusion we can say that flavor price, packaging, brand are the most important factors ,which influences user to purchase Perfume, that’s why question 3 and 12 gives the more Weightage amongst the other.

CHAPTER 6

RECOMMENDATION AND SUGGESTIONS

After doing the research on “user buying behavior towards Perfume”. We want to give some recommendations and suggestions.

Dairy milk is most preferred by the user that becomes the strength of Cadbury brands amongst user but not the other sub-brands like silk.

For promoting the silk the Cadbury have to use various promotional tools to generate awareness amongst the customer.

Distribution channel should have to be effective to make available at every retail store so that user can easily purchases.

CHAPTER 7 BIBLIOGRAPHY

Web sites:

Scibd

Wikipedia

Brands of perfume (LEE, AXE, NIKE)

Books:

Book of Research methodology “Kothari C.R”.

Reference:

Prof.

Shweta Jain.

Weight age

We have given the weightage to all the questions of questionnaire from 1 to 10 which makes us easier to test of our pre-determined hypothesis.

We have given the 5 weight to the question which has less relevant according to our designed the hypothesis.

The weight 6-8 given to the question which is important to the hypothesis testing . The most important question is given the weight 10 in the questionnaire because these questions make us aware about the final results of our research problem.Questions given weight as follows:

Ques no.

headings weight

1 Preference to the brand of perfume 102 Sub-brand preferred 93 Factors like brand,price,important to purchase,etc 104 Features 85 Size of perfume 56 Promotional offers 107 Promotional factors 108 Advertisement media 79 Frequently purchase 510 Reasonable price 611 Switch to another brand 712 Continue to purchase 8

ANNEXURE1. QUESTIONNAIRE

Name :

Address:

Age: Between 10-15 15-20

20-25 25-30

Gender:

Phone no:

Profession:

1. Which brand of perfume do you prefer?

(a) Nestle (b) Amul

(c) Cadbury (d) others

2. Rank sub- brand of perfume according to your preference? (‘1’ for most preferred and ‘10’ for least preferred).

(Do not repeat any of the rank order.)(a) Dairy milk (b) 5 star (c) Perk (d) Temptation (e) Silk (f) Kitkat (g) Munch (h) Milky bar (i) Barone (j) Milk perfume

3. How much importance do you give to the following factors when you purchase a perfume? (Tick in the desired column).

Factors very least very less Important Important Normal Important Important (a) Flavor/taste (b) Price (c) Packaging (d) Brand (e) Image (f) Quantity (g) Punch line

4. Which factor of perfume do you give more importance? Factors very least very Important Important Normal Important less impt

(a) Hard (b) Nutties (c) Crunchy (d) Chew (e) others

5. Which pack of perfume do you normally preferred?(Give the rank of perfume pack according to your preference ‘1’ for most preferred and ‘3’ for least preferred).(a) Small (b) Big (c) Family pack

6. Which promotional offer attracts you most?(Give the rank of promotional offer according to your preference ‘1’ for most preferred and ‘5’ for least preferred)

(a) Free gifts (b) Price offer (c) Punch line

(d) Brand ambassador (e) Any other

7. Which of the factor affect yours purchased?(Give rank to the factors according to your preference ‘1’ for most preferred and ‘5’ for least preferred)

(a) Advertisement (b) Suggestion from friend and relative (c) Attractive display (d) Brand ambassador (e) Ingredients

8. Which media of advertisement influence your purchase most?(Give rank according to your preference ‘1’ for most preferred and ‘5’ for least preferred).

(a) Television (b) Newspaper (c) Attractive display (d) Broachers (e) Hoardings

9. How frequently do you purchase perfume? (a) Daily (b) weekly

(c) Monthly (d) Quarterly

10. What according to you is reasonable price of perfume and which do you mostly preferred?

(Give the rank according to your preference ‘1’ for most preferred and ‘5’ for least preferred).

(a) Below 5 (b) 5-10 (c) 10-20 (d) 20-30 (e) Above 30

11. If your preferred brand is not available for repeat purchase then what will you does?(a) Postpone your purchase (b) Switch over to the other brand (c) Go to other brand to search for your preferred brand

12. If you don’t like to change to the new brand, then what is the reason for continuing to purchase the old brand?

(Give rank according to your preference, ‘1’ for most important and ‘5’ for least important).

(a) Taste/flavor (b) Packaging (c) punch line (d) Brand ambassador

(e)Ingredients

Give your suggestions if any:

ANNEXURE 2

Calculation of weighted average mean.

We have calculated the mean for all the questions mentioned in the questionnaire.

Mean = highest frequency/total of the frequency.

Questions

mean

Weightage

Weightage * mean

10.686 10 6.86

20.157 9 1.413

30.447 10 4.47

40.255 8 2.04

50.3614 5 1.807

60.343 10 3.43

7 0.25 10 2.5

80.3223 7 2.2561

9 0.6 5 3

100.287 6 1.722

11 0.42 7 2.94

120.328 8 2.624

Total 95 35.062135.062 =0.3690

Weightage average mean = 1/95 75

ANNEXURE 3.

Calculation of Z-TEST.

For testing the hypothesis we need sample mean and population mean. and the value of standard error.

Population mean:

50/450=0.1111

Questionnaire filled only by management students in the ABES IM and which have total 450 management students.

Calculation of sample mean:

Sample mean you have seen in annexure 2.

Standard error:

Under root of( 1/n-3)=0.14586

Z-test value

=difference of sample mean and population mean divided by standard error.

0.258075/0.14580

=1.73933.

We have applied the z-test to all the question of our questionnaire because our sample size is greater than 50 and the table below shows the calculations.

Questions mean

population mean

Diff.(Zs-Zp)

standard error

(Zs-Zp)/SE

1 0.686 0.11110.0762146 0.14586

0.522518854

2 0.157 0.11110.0174427 0.14586

0.119585219

3 0.447 0.11110.0496617 0.14586

0.340475113

4 0.255 0.11110.0283305 0.14586

0.194230769

50.3614 0.1111

0.04015154 0.14586

0.27527451

6 0.343 0.11110.0381073 0.14586

0.261259427

7 0.25 0.1111 0.027775 0.145860.190422323

80.3223 0.1111

0.03580753 0.14586

0.245492459

9 0.6 0.1111 0.06666 0.145860.457013575

10 0.287 0.11110.0318857 0.14586

0.218604827

11 0.42 0.1111 0.046662 0.145860.319909502

12 0.328 0.11110.0364408 0.14586

0.249834087