PlotNo. 2, KnowledgePark-III,GreaterNoida(U.P.
)–201306
ASSIGNMENT
PGDM Batch – 2019 – 21
Academic Session 2019-20
Term – III
Type: For Mid Term
Subject: Consumer Behaviour MaxMarks:20
Subject Code: PG - 18
FacultyName/s with Section in which he/she is teaching:
Ms. Radhika Malhotra - Section A and B
Dr. Arpita Srivastava – Section C and D
Mobile Nos: 9810214361 and 9868403547
Email ids: radhika.malhotra@glbimr.org, arpita.srivastava@glbimr.org
Date of Submission: March 30, 2020
Mode of Submission: Soft Copy
Q1) : Case Study:
(i) Do you agree with the Assistant and Product Managers, and why?
ANSWER-
Yes, I agree with the product manager and assistant manager that efforts were made in the
right direction, but many factors affecting consumer behaviour were ignored. The reasons
being the following: I. The company was using the product concept of marketing which is
out dated in today`s era as now producers manufacture products that match consumer`s
demand, tastes and preferences. Therefore, Mr Ash should have focused on the Marketing
concept to produce and market products accordingly. II. The target audience was limited to
the existing customers of the company. Various new markets must be explored to increase
sales. Effective target marketing is essential to promote and position the product effectively
in the market. For example:
Grooming products for men
Safe and chemical free cosmetics for babies
Organic and herbal cosmetics for women III. The market for cosmetics was not
effectively segmented by Mr Ash. Cosmetics market can be segmented effectively by
dividing the market into groups which are homogenous within and heterogeneous among
themselves on the basis of their age, gender, occupation etc. For e.g. Market can be
segmented into:
Working women, Housewife, Teenage girls
Daily consumers, Beauty Parlours, Film Industry
Rich people, Middle class people, Low income group IV. While attention was paid to
income and social factors many personal factors such as Age, Occupation, Lifestyle,
personality of a consumer were neglected. For e.g.
Age: Working women, elderly women, Teenage girls all have different needs.
Income: The rich pay more attention to how they look than people with less income.
Occupation: A Housewife has simple beauty needs as she stays at home most of the time
while a working lady has more intensive beauty needs as she goes out of the home every day
and has to look presentable in the office.
Personality: Traditional women and Modern women both have different needs. Some
prefer expensive perfumes while some use natural fragrances like ‘itra’.
Attitude: People have different attitude towards chemicals in beauty products. Some
prefer it while some dislike it and prefer herbal and organic products.
Lifestyle: While urban people make use of deodorants and perfumes to smell good, rural
population prefers use of soaps, sandalwood and itr to smell good. V. Keeping the income
factors in mind no changes were made in product quantities i.e. small units of previous
products. Keeping in mind the social factors no efforts were made to use opinion leaders like
celebrities or doctors which would have been more effective in influencing sales than
change in product packaging. VI. Existing products were modernised while no attention was
paid to new product development for new potential markets in cosmetics industries. For e.g.
Grooming products for men VII. No efforts were made to advertise the products to targeted
audience or reposition the brand according to the changing customer taste and preferences.
No offers, discounts or sales promotion activities were carried out by Mr Ash to boost sales.
(ii) What other factors, if any, could have been considered? . Suggest a comprehensive
plan for changing Consumer Buying Behaviour.
ANSWER –
I. Age – Babies, Teenagers, Middle aged people and elderly all have different needs
and requirements related to cosmetics and beauty products. Therefore the target
audience could have been segmented on the basis of age of consumers.
II. Occupation – Working ladies v/s Housewife, Clerical staff v/s Top management,
Daily consumer v/s consumers from Fashion Industry While a housewife, a normal
clerk and daily consumer may have nominal needs and demand basic products,
working ladies, Directors and CEO`s of a company, make-up artists, beauticians,
film stars may have specific needs and high demand for beauty products. Products
could have been designed and developed for one or few segments on the basis of
their occupation.
III. . Standard of Living – Rural v/s Urban People, Low income group v/s High income
group While rural people and low income groups may make use of soaps and
traditional products, urban people and the high income group are more inclined
towards expensive beauty products. Different products could have been developed
for both the segments and different pricing strategies could have been followed.
IV. Perception & Attitude – Chemicals v/s Organic/Herbal products While some people
perceive beauty products negatively due to chemical ingredients in them some people
recommend them. Market share for both chemicals and organic products could have
been analysed and the more profitable market could have been targeted.
V. . Involvement – Normal consumers v/s Film Industry Consumer segments like make-
up artists, beauticians, film starts will have a high involvement in buying beauty
products than normal consumers. Therefore depending upon the target market
packaging and labelling strategies should have been made.
VI. . Culture – Due to different cultural norms regarding appearances laid down by
different religions, men and women of a particular religion dress up and make use of
specific cosmetic products. For e.g. Hindu, Jain and Bengali women use ‘sindoor’
and ‘Bindi’ while Muslim women do not, Sikh men don’t use shaving products as
they are not allowed to cut hair, Many Jain men and women use white tikka.
VII. . Opinion Leaders – Celebrities and Doctors act as effective opinion leaders for
cosmetics and beauty products which could have been used and their impact on the
sales, brand value and price could have been analysed.
VIII. . Personality and Self-concept – Alpha Males v/s Passive males, Feminine v/s
Tomboyish girls While alpha males and feminine girls may use and encourage use of
beauty products while passive males and tomboyish girls may like to stay raw and
refrain from using beauty products
