PROJECT REPORT ON CONSUMER BEHAVIOUR TOWARDS SALON MARKET

RESEARCH PROJECT REPORT

ON

“CONSUMER BEHAVIOUR TOWARDS

SALON MARKET”

SUBMITTED FOR THE PARTIAL FULLFILLMENT OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

OF

University Name

BY

Student Name

UNI.ROLL NO.000000

BBA 5^TH SEMESTER
UNDER THE SUPERVISION OF

Guide Name

LOGO

College Name

CERTIFICATE OF SUPERVISOR

This is to certify that the project titled “Study on consumer behaviour towards salon market in chd.” is academic work done by “Student Name” submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration from College Name , under my guidance & direction. To the best of my knowledge and belief the data & information presented by her in the project has not been submitted earlier.
STUDENT DECLARATION

I, hereby declare that I have completed the Project titled “Study on cosumer behavior towards salon market in chd. ” under the guidance of “(Teacher Name) in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration at (College Name). This is an original piece of work & I have not submitted it earlier elsewhere.


PREFACE
For management career, it is important to develop managerial skills. In order to achieve positive and concrete results, along with theoretical concepts, the exposure of real life situation existing in corporate world is very much needed. To fulfil this need, this practical training is required.
I took training in fast growing Tress Lounge Academy located in Sector- 8 Chandigarh. It was my fortune to get training in a very healthy atmosphere. I got ample opportunity to view the overall working of the company.
This report is the result of my six weeks of summer training in Tress Lounge Academy. The subject of my report is about consumer behavior.
Theoretical knowledge without practical knowledge is of little value. In order to achieve positive & concrete results along with theoretical concept the exposure of real life situation existing in corporate is very much needed. To fulfil this need the management course has a provision for the practical training program. I thank my institute to provide us such opportunity having training period in our course so that students can have real feeling of industrial life.
I took my summer training in Tress Lounge Academy Sector -8 Chandigarh. It was my fortune to get training in very healthy atmosphere In the coming pages an attempt has been made to present a comprehensive report is concerning different aspects.
INDEX
Sr. No. Particulars Page No.
1. Consumer Behaviour
a. Consumer v/s Customer
b. Factor influence consumer behaviour
c. Applications of consumer behaviours
2. Industry Profile
a. Introduction
b. Saloon industry in India
c. History of Beauty salon in India
3. Company Profile
a. About Tress Lounge
b. Foreign Collaboration
c. Services offered by company
d. 3C- Report of company
e. Competitors
4. Research methodology
a. Data Collection
5. Objective of the study
6. Limitations of the study
7. Data presentation, analysis and interpretation
8. Conclusion
9. Recommendations
10. Bibliography
11. Questionnaire Design
a. Questionnaire
6 | P a g e

CONSUMER BEHAVIOUR

Consumer behavior is defined as activities people undertake when obtaining, consuming and disposing of products and services.

Consumer behaviour is the behaviour that consumer displays in searching for purchasing, using, evaluating & disposing of the products and services that they expect will satisfy their needs.

Defination by C.G.Walter-

Consumer behavior is the process where by individual decides whether, when, what, how and from where purchase goods and services.

A person‟s behavior changes from place to place and situation to situation or, say it is very inconsistent. The person when has a need, is willing and able to satisfy the need is called a CONSUMER. The consumer would go different ways to satisfy it‟s needs depending on his social, cultural, family, economic and educational background. Consumer is the principle a priori of business. The efficiency with which a free market system of enterprise operates, depends upon the extent of consumer understanding possessed by the business community. A business community that is ignorant of consumer preferences cannot possibly fulfill it‟s obligations in a meaningful and responsive manner.

So here comes the need to prepare project report on CONSUMER BEHAVIOUR. Consumer Behavior is broadly defined as “the behavior the consumer displays in searching for, purchasing, using and evaluating products, services, and ideas which they expect will satisfy their needs.” Consumer Behavior is not only the study of what people consume, but is also the study of who the consumers are, why they consume, how often they consume, and under what conditions they consume.

CONSUMER BEHAVIOUR refers to the buying behavior of ultimate consumers, those persons who purchase products for personal or household use, not for business purpose.

There are Psychological Theories that help us to understand and predict the effect of all external and internal factors on a consumer. External factors include Culture, Society, Reference group and family etc. Internal factors comprise in a consumer mind and how consumers learning, memory, attitude, personality, lifestyle and motivation levels affect consumer behavior. What would initiate a buying process and how a buying decision would end is all covered under the study of consumer behavior. This all further helps relate product / service, price and promotion etc. with consumer behavior. Thus organization can place marketing mix so as to propagate their product/services.

The present study on Salon market is also trying to find Consumer Perception about different brands of beauty, quality of service and how offers, discounts, promotional offers affecting the sale of services, the brand image of company.

PSYCHOGRAPHIC

In psychographic segmentation buyers are divided into different groups on the basis of lifestyle and \ or personality. People within the same demographic group can exhibit very different psychographic profiles. These psychographic bases are often difficult to measure, but they offer potential rewards in terms of providing management with a more relevant basis for differentiating between segments of a market.

LIFESTYLE

People exhibit many more lifestyles than are suggested by the seven social classes. People‟s product interests are influenced by their lifestyles. In fact the goods they consume express their lifestyles. Marketers are increasingly segmenting their markets by consumer lifestyles. Companies making cosmetics, alcoholic beverages, and furniture are always seeking opportunities in lifestyle segmentation.

PERSONALITY

Personality affects the consumption of many goods, particularly those consumed publicly. An aggressive personality for example, may be reflected in the choice of ostentatious clothing, furniture, and automobiles. Preferences are frequently so different that it is impossible to serve all personality types with the same product or brand. A recognition of important personality types can help management “position” it‟s towards a profitable segment or segments.

Marketers have used personality variables to segment markets. They endow their products with brand personalities that correspond to consumer personalities.

Consumer vs Customer

Consumer-

A consumer is anyone who typically engages in any one 0r all of the activities. It is one who consumes/uses the product.

Customer-

It is one who actually purchases a product or service from a particular organization or shop. A customer is always defined in terms of a specific product or company.

Factor influence consumer behavior

External Influence

• Culture

• Sub-culture

• Social status

• Reference Groups

• Family

• Marketing Activities

• Self-Concept & Lifestyle

Internal Influence

• Perception

• Learning

• Memory

• Motives

• Personality

• Emotions

9 | P a g e

Applications of Consumer Behavior

• Analyzing market opportunity

• Selecting the target market

• Determining the product mix

ü Product

ü Price

ü Distribution

ü Promotion

• Use in non-profit and social marketing

10 | P a g e

COMPANY PROFILE

Introduction

Fast growing and prolific, the beauty salon industry is focusing on developing talent to grow a loyal customer base willing to spend on expanded products and services. The industry felt declines during the economic downturn, but still remained one of the strongest performing within personal care. The industry is now even one of the fastest growing industries in the U.S. Barriers to entry to the industry are minimal, creating intense competition for the consumer spending dollars available. The main draw for beauty salons is the stylists they employ.

In the 21st century, beauty and make up are like the wheels of a cart or the two sides of a coin. Women are beautiful in themselves; but a little make-up does help a lot and it keeps one to make the day better and happier. Every woman wants to be pretty whether she‟s young or old so the beauty salon is the place to go. Beauty salons are also like a temple; however, the difference is that we go to worship in the temple and in the beauty salon we go to be worshipped by the beauticians and by the other people around. The beauty salon has become an almost iconic figure in Western culture and Southeast Asian culture as well as in modern generation. The beauty salon is where a woman goes to have their hair and nails done, but is also a center for community news confessions and general „hen parties”. As such, choosing a beauty salon is a process most women (and even men) will undergo.

The first thing to start in choosing a salon is to evaluate what needs to be done. A woman who just wants her hair trimmed might go to a beauty salon than women who wants a permanent coloring, or more extensive services. If a woman wants her hair cut promptly and that day, she might be better off visiting to a walk-in salon, more willingly than trying to find her regular stylist. For other kind of services, a woman might want to think about a full-service in by-appointment-only beauty salon. This signifies that she will have a stylist who is expecting her and definitely knows what she wants to be done.

Women should also choose a beauty salon based on their ethnic background. This may sound strange, but different ethnic groups have different hair needs. A salon that has a primarily Filipino-Korean clientele, for instance, will be much better versed in working with the unique needs of black hair. A white stylist may not be as familiar with these needs. Salons also may carry different products, depending on the ethnicity of their clients

Scenario of Salon Market- In India

The beauty business in india is growing phenomenally with the cosmetics market growing at 15-20% annually, twice as fast as that of the united states and European markets.

The retail beauty and cosmetics market in India currently estimated at USD, 950 million is pegged at USD 2.68 billion by the year 2020.

Over the last few years cosmetic products have seen a growth of 60%,salons have see a growth rate of 35%,cosmetic treatments are seeing a growth rate of 5%.

The hair and beauty industry is seeing a per capita annual spend of USD 1.2 which is expected to grow to USD 6.2 by 2015.

India has about 10,00,000 no. of salon‟s this no. is constantly growing.

Basic grooming and hair care seems to spend of Rs.200-Rs.1000 from the salon goers.

Women contribute to over 85% of the salon industry revenue.

Men‟s hair is the next wave set to hit the Indian salon industry.

The spa and body treatment segment is estimated to grow approximately USD 772 million over the next five to eight years.

.

History of Beauty Salon In India

If you aren‟t aware of it yet, the history of beauty salons is not relatively new to the world. Back in the days of the ancient Egyptians, people from

the upper classes would normally have their hair clipped very close to their heads. This is so they could wear full and fancy wigs on top of their heads for special occasions, ceremonies and public outings. Back then, the beauty salons were the places where wigs were being made and ordered. While many beauty salons could be found inside the palaces of the rich and noble, there were also a few on the streets which the commoners frequented.

As a result of this history, many people had become accustomed to having their hair styled for them throughout the years. Now beauty salons are not only limited to styling hair. Almost

all Beauty Salons now are offering many different beauty services. These services include colour, perms, facial treatments, massages, manicure/pedicure, waxing, tanning and many more. Indeed, beauty salons throughout history have progressed

SALON PROFILE

Introduction

About Tress Lounge

Tress Lounge is distinguished chain of beauty salons spearheaded by spirited Leaders Mr Munish Bajaj & Ravi Midha (Executive Directors) . The self madeMunish Bajaj combined his determination, efforts and entrepreneurial acumen to successfully branch out into beauty salon ventures in 2003. Ever since then, this brilliantly done beauty venture called Tress Lounge has been in full bloom. At present they own a chain of saloons in Chandigarh, Panchkula, Mohali and Ludhiana.

Working in Collaboration with L'Oreal, Tress Lounge offers a whole raft of bang up beauty Services to make you look just the way you want. Tress Lounge boasts some of the finest L'Oreal trained beauty experts who are the masters of their craft. What’s more: Tress Lounge is the region’s exclusive sale point for L'Oreal Beauty products.

Oozing with the top rate services and products, Tress Lounge has become a preferred choice of the people of this region. And as always, they are pulling out the stops to ensure that they keep all their clients happy, peppy and beautiful.

Tress Lounge is pleased to offer you massage to help you relax, detoxify and uplift and stimulate your body. Ease stress, increase circulation, smooth muscles soreness and pain with this traditional massage customized to your needs. With following brands we facilitate newer concept of the life

Tress Lounge – Prive (the private lounge) offers all Hair and Beauty services with a luxurious pampering ambience. The lounge is created for people who like to relax and rejuvenate themselves.The Seven Sea Spa is well equipped with ancient ayurvedic therapeutics blended with modern rejuvenating techniques. One can expect for an oriental ride while enjoying the blissful benefits of revitalization and relaxation.

The multispecialty gymnasium, the Oxy Gym, is equipped with imported Johnson’s machines and has latest facilities of approved Cardio and advanced weight training under expert supervision. Subsequently, comprehensive set of rejuvenation amenities including Thai Spa, Steam Sauna and Jacuzzi facilities have also been introduced.

Hair Raiserz, A flagship Salon of Matrix.Those vying for a glowing sheen to the flowing Ladies, the salon is nothing less than a bliss. Besides, it houses a complete bridal studio and nail art techniques workshop. While the latest bridal concepts are enough to leave the would be bride blushing, the masters of nail art technique at their best while portraying their exotic nail art designs with unique colour patterns.

A mesmerizing ride to soulful pleasures is all oneA mesmerizing ride to soulful pleasures is all one can summaries at Tress Lounge, as a visit to the Tress Lounge seems enough for a complete recharging. With a potential to pamper all senses at one place, Tress Lounge is coming up as a future trendsetter for the city residents whose cravings for perfect sensual pleasure. What more you can ask for, the rates at the Tress Lounge have been kept quite reasonable. In short, a visit to the Tress Lounge is must.

• Working in collaboration with L‟Oreal, Tress Lounge offers a whole raft of bang up beauty services to make you look just the way you want.

• Oozing with the top rate services and products.Tress Lounge has become a preferred choice of the people of this region and as always,they are pulling out the stops to ensure that they keep all the clients happy, peppy and beautiful

• Tress Lounge boasts some of the finest L‟Oreal trained beauty experts who are the masters of their craft. What‟s more: Tress Lounge regions exclusive sale point for L‟Oreal beauty

Foreign Collaboration

Working in collaboration with L’Oreal,Tress Lounge offers a whole raft of bang up beauty services to make you look just the way you want.L’Oréal is the world’s largest cosmetics company; present in over 130 countries with 66,600 employees world-wide. The company had a turnover of 19.5 billion Euros in 2010.

The company has been present in India for close to 20 years and in 2009 celebrated its global centenary. Today, L’Oréal India is one of L’Oréal’s fastest growing subsidiaries and employs over 1000 people across six sites including: four regional offices, a factory in Chakan, Pune and its headquarters in Mumbai.

L’Oréal’s leadership is achieved through cutting-edge technology with a portfolio of well-known brands that answer all beauty needs and are distributed in all channels. Each brand benefits from considerable investments in research made by the L'Oréal Group. The Group's research efforts, unique in the beauty industry, permit each brand to benefit from formulas specifically adapted to the needs of men and women worldwide, within each market or distribution circuit that is present.

In India, L'Oréal brands are present in the following four main categories:
Consumer Products

L’Oréal Paris

Garnier
Maybelline New York

Luxury Products

Lancôme
Kiehl’s
Ralph Lauren

Giorgio Armani

Diesel
Professional Products

L’Oréal Professional

Matrix
Kérastase
Kéraskin Esthetics

Active Cosmetics

Vichy
La Roche Posay

Services Offered By Salon

Hair Cutting

Wax

Bleach

Threading

Skin Care

Combs

Nail Bar

Makeup etc.

3C-Report of company Company-LOREAL

• Salons-Tress lounge& Hair raiserz

Ø Competition-

• Lakme

• Wella

• Cleopatra

• Customer

• COMPETITORS

• Lakmé is an Indian brand of cosmetics, owned by Unilever and run by CEO Anil Chopra. Lakme started as a 100% subsidiary of Tata Oil Mills(Tomco), part of the Tata Group; it was named after the French opera Lakmé, which itself is the French form of Lakshmi, the goddess of wealth, also renowned for her beauty. Indian cosmet Lakme was started in 1952, famously because the then Prime Minister, Jawaharlal Nehru, was concerned that Indian women were spending precious foreign exchange on beauty products, and personally requested JRD Tata to manufacture them in India.Simone Tata joined the company as director, and went on to become its chairman. In 1996 Tata sold off their stakes in Lakmé Lever to HLL, for Rs 200 Crore (45 million US$), and went on to create Trent and Westside. Even today, when most multinational beauty products are available in India, Lakme still occupies a special place in the hearts of Indian women.

• Wella Wella is a German company, and one of the world‟s largest cosmetics suppliers. Founded in 1880 by Franz Stroher, with its headquarters inDarmstadt, Germany, the company is represented in over 150 countries. It directly owns three business divisions - Professional, Consumer, Cosmetics and Fragrances. In 2003 Procter & Gamble acquired a controlling interest in Wella AG

RESEARCH METHODOLOGY

• Keeping in view the Salon Market in INDIA which is very broad and becoming Competitive day by day, we decided to study the current scenario of the market.

• DATA COLLECTION

• The following techniques were adopted for data collection :

• PRIMARY DATA

• Primary data was collected through face to face interviews while filling up questionnaires. (100 RESPONDENTS)

• SECONDARY DATA

• Relevant information was gathered from magazines, newspapers and project reports that formed the secondary data.

• COMMUNICATION APPROACH

• Face to face interviews was taken as the communication approach since it is a better method in cases where slight probing is required

SAMPLING

• SAMPLE SIZE

• A sample size of 104 customer was chosen, but due to incompletely filled questionnaires and unwillingness and carelessness on the part of the respondents, we  were forced to reduce the sample size to 100. This sample size was based upon time and affordability approach.

• SAMPLING TECHNIQUES

• Disproportionate stratified random sampling technique has been used in sampling due to the following reasons :

• 1.         It provides information about parts of the universe.

• 2.        It provides help in gaining precision through stratification.

Questionnaire Design

• The questionnaire used was a printed, well structured formalized schedule to obtain and record specified and relevant information with fair accuracy and completeness.

• The questioning process was face to face interviews and the questionnaire was designed in such a way that it could be understood and answered easily by the respondents. The questionnaire contained both close and open ended questions. The close ended questions were dichotomous and multiple choice in nature. Since some of the questions were probing in nature and required answers on the basis of memory of the respondent. In such type of questions there is a risk that the respondents will answer whatever comes to their minds, thereby reducing the impact of the study. Keeping these considerations in mind, firstly the period of time in which respondents were asked to respond was reduced, since it has been found that the longer the reporting period, the less accurate the reporting.

• Secondly, to help respondents to think deeper and clearly more questions in a way that stimulated association, thereby assisting the recall  process about the event.

METHDOLOGY

• Survey Method

• I have chosen the exploratory research method for the research. In this method all the questions are close ended. Except for few questions that needed to be known as in question 10 of asking the satisfaction and dissatisfaction level and know their problems with respect to the brand they have used. The options in the form of yes or no, Ranking & choosing one alternative out of various alternatives, I could not take the open-ended questions in the Questionnaire because of time constraint. The time given for this research is very short to analyze the survey in Depth. The number of question related to consumer behaviour research is 16. Out of which 4 Related to personal details.

• ·        Sample size: 100

• ·        SRSWR

• ·        Sex ratio: 1:1

• ·        The studies were conducted in localities

• ·        Mainly Students were covered and 10 % others considered for the study.[College/school/Univ./inst./housewives]

• ·        Sample coverage 50 male and 50 girls

• Other questions were asked about the personalities of the salon products with the brand image they perceive.

Factors concering choose a salon

• Services

• Products

• Staff

• Ambience

• Cleanliness & hygiene

. OBJECTIVE OF THE STUDY

• To study the current salon market of Tri-city.

• To analyze the relationship b/w a specific brand & its buying behavior

• To assess whether discounts/promotional offers influencing the buying behavior of the customer

• To study the impact of quality of service on the consumer buying behavior

LIMITATIONS OF THE STUDY The probable limitations of this study are as under :

1. The first and foremost limitations was time constraint which was only one months, but still efforts have been made to put the picture as clear and candid as possible.

2. Samples were randomly selected as per convenience so error is bound to creep in the observation.

3. The conservative attitude of the respondents was a limiting factor in gaining information

DATA PRESENTATION,ANALYSIS,INTERPRETATION

DATA PRESENTATION,ANALYSIS,INTERPRETATION