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Benefit-based segmentation of cosmetic product's market
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4. The etymology of the word cosmetics
Greek word
kosmetikē tekhnē’
“technique of
dress and
ornament”
“skilled in
ordering or
arranging”.
Introduction
Amiirah CAMALL SAIB
5. The U.S Food and Drug Administration (FDA)
defines cosmetics as:
intended to
be applied to
the human
body
Beautifying,
For cleansing,
promoting
attractiveness,
or altering the
appearance without
affecting the body's
structure or
functions
Amiirah CAMALL SAIB
6. Cosmetics have been used for as long as
there have been people to use them.
• As face painting is mentioned in the Old
Testament (Ezekiel 23:40)
• Eye shadow was used in Egyptian burials
dating back to 10,000 BC (Llewellyn)
Amiirah CAMALL SAIB
7. Usage of cosmetics for centuries:
Enhance
beauty
Promote
good
health
Sun
Protection
Class
system
Amiirah CAMALL SAIB
8. Amiirah CAMALL SAIB
Cosmetic products in the 21st Century
Good looks and physical
magnetism are persistently
emphasised as a desirable
characteristic.
The habit of using
cosmetic products has
sometimes turned into
passion which affect the
individual deeply
9. Segmenting cosmetic products using benefit
segmentation.
Amiirah CAMALL SAIB
Market segmentation is regarded as one of the
core elements of marketing, with benefit
segmentation often is referred to as the most
meaningful form of segmentation.
10. The aim of this study is to:
• Explore the benefits associated with cosmetic
products from the Mauritian consumer’s perspective.
• Analyse the comparative effect of the target group
on consumer’s satisfaction.
• Evaluate the usefulness of benefit-based
segmentation in understanding cosmetic-related
behaviour among consumers in Mauritius.
Amiirah CAMALL SAIB
12. Sudha RAMSURRUN
Overview of cosmetic industry
African Countries- Mauritius
fast developing market-high demand for international product from Europe and North
America.
Thailand
major manufacturer of Johnson and Johnson, Procter & Gamble, Uniliver and Colgate
Palmolive
India
shift from basic product to more advanced cosmetic.
Brazil
‘Green theme’ market for natural cosmetic product.
European Countries and USA-
renowned brands like Max Factor, Elisabeth Arden, L’Oreal and Revlon
18. Sudha RAMSURRUN
Benefit based segmentation
• Market segmentation is the process of splitting
customers, or potential customers, in a market into
different groups.
• Benefit based segmentation is a form of behaviouristic
segmentation which relies on the underlying assumption
that the benefits sought by consumers forms the basis
for the existence of segmenting the market.
19. Sudha RAMSURRUN
Segmenting the market
Researches revealed that:
• the benefits sought are not only restricted to
instrumental or functional benefits but may also relate to
hedonistic or emotional consumption experiences
(Hartmann et al., 2000)
• there is a difference between affective and cognitive
consumer’s behaviour (Goldsmith et al., 2008).
• cosmetics give feelings of social and professional success
20. Sudha RAMSURRUN
New trend showed marketing
opportunities
"Growing consumer focus on wellness and a more
holistic approach to beauty, on top of an increasing
demand for products that offer “benefits beyond
beauty”, will also drive growth in these new product
segments (IBISWorld, 2009)."
22. Encyclopedia Merriam-Webster defined
Methodology as:
“a body of methods, rules and postulates
employed by a discipline and the analysis of the
principles or procedures of inquiry in a particular
field.”
Sohinee DABEEDYAL
Introducing Methodology
23. Crouch and Housden (2003) research process:
1. Defining the research required
2. Planning the research
3. Carrying out the fieldwork
4. Analysing, interpreting and reporting
5. Using the research
6. Feedback
We’ve used only the first four stages
Sohinee DABEEDYAL
24. • Deciding the data requirement
Sohinee DABEEDYAL
• Review of existed information
• Search demographics through books, thesis,
Internet & Online Journal articles(Emerald & Ebsco)
• Get insightful theoretical & realistic understanding
of the study
25. Sohinee DABEEDYAL
• Deciding on the type of data
• Best research design, data
collection & selection of
variables.
• Literature search used
Exploratory
Research
• Uses statistical methods
(survey) to know facts &
numbers as to what
respondents look at as benefits
when buying cosmetics.
Descriptive
Research
26. Sohinee DABEEDYAL
• Deciding on the research method
Primary
research
• Focus group
• Very useful-
behaviour noted
• Limitation:
• Girls > Boys
• Age group 19-24
Secondary
research
• Internet
• Journals
• Books
• Thesis
27. • Sampling unit specification and sampling
method
The sampling method used was convenience
sampling method.
• Convenience sampling involves the sample
being drawn from that part of the population
which is close to hand.
• Cheap and quick method for generating the
sample.
• Considerably influenced by the researchers
who select the respondents.
Ayesha ESSOO
28. • Sample Size
- 200 people were given a chance to
participate whereby respondents were
asked to rate a number of items related to
their perception on benefits.
Ayesha ESSOO
30. • Specification of sampling plan
• Questionnaire
The design of the questionnaire was a review of
the problem definition of the research required.
• Pilot Test
The draft of the questionnaire was pilot tested
on 8 respondents and the opinion gathered
were used to make various changes.
Ayesha ESSOO
31. • Problems encountered
• Some people were reluctant to give their
income range even if the interviewer reassured
that it was confidential.
• Some people preferred to answer no instead
of answering yes because they had to justify
themselves.
• Some respondents needed more explanation
in more details about particular questions.
• Some people were not willing to participate.
Ayesha ESSOO
33. Hypothesis 1
H0 : There are different types of cosmetic
categories that Mauritians prefer.
H1 : There are no different types of cosmetic
categories that Mauritians prefer.
Nawseen NUNNOO
34. Hypothesis 2
H0 : Mauritians seek benefits when buying
cosmetic products.
H1 : Mauritians do not seek benefits when
buying cosmetic products.
Nawseen NUNNOO
36. Hypothesis 3
H0 : There is a purpose behind cosmetic
consumption.
H1 : There is no purpose behind cosmetic
consumption.
Nawseen NUNNOO
37. Hypothesis 4
H0: There is no relationship between other
behavioural variables and benefits sought from
cosmetics.
H1 : There is a relationship between other
behavioural variables and benefits sought from
cosmetics.
Nawseen NUNNOO
38. Hypothesis 5
H0 : Cosmetic market can be segmented
according to consumers’ benefits
H1 : Cosmetic market cannot be segmented
according to consumers’ benefits.
Nawseen NUNNOO
39. Tables
Healthy Skin
Frequency Percent Valid Percent Cumulative
Percent
Yes 104 57.8 57.8 57.8
Valid No 76 42.2 42.2 100.0
Total 180 100.0 100.0
Fresh look
Frequency Percent Valid Percent Cumulative
Percent
Yes 99 55.0 55.0 55.0
Valid No 81 45.0 45.0 100.0
Total 180 100.0 100.0
40. To look
glamorous
Frequency Percent Valid Percent Cumulative
Percent
Yes 101 56.1 56.1 56.1
Valid No 79 43.9 43.9 100.0
Total 180 100.0 100.0
Tables
Nawseen NUNNOO
41. Report
Treatment
7% Hygine
10%
To look glamourous
14%
UV Protection
4%
Bio
1%
Hypo Allergenic
1%
Healthy Skin
15%
To avoid acne problem
11%
Skin Whitening
5%
Moisturise Skin
8%
Fresh Look
14%
Anti Wrinkle
2%
Water Proof
1%
Not tested on animal
3% Well Known Brand
3%
New Products
1%
Benefits Based Segmentation
42. Results:
H0 is accepted and the Mauritian cosmetic
market can be segmented into three major
parts:
(1) Healthy skin
(2) To look glamourous
(3) Fresh look
Nawseen NUNNOO
43. Hypothesis 6
What are the groups of cosmetic consumers in
Mauritius?
H0 : There are different groups of consumers for
cosmetic products.
H1 : There are no different groups of consumers
for cosmetic products.
Neeta BURNAH
44. Report
Groups of cosmetic consumers that were tested:
Age group
Gender
Civil status
Occupation
Income
Age group of children
Income spent on children cosmetics
Neeta BURNAH
45. Demographics of segments: AGE
0 10 20 30 40 50 60 70
Below 16
17-25
26-35
36-45
46-55
Age
Fresh Look
To Look glamorous
Healthy Skin
49. INCOME LEVEL
0 10 20 30 40 50
Not applicable
Below Rs 10 000
Rs 10001 to Rs 20000
Rs 20001 to Rs 30000
Rs 30001 to Rs 40000
Fresh Look
To Look
glamorous
Healthy Skin
50. Hypothesis 7
H0: The benefit based clusters can be profiled
based on consumer characteristics.
H1: The benefit based clusters cannot be profiled
based on consumer characteristics.
Neeta BURNAH
51. Cluster analysis:
Number of Cases in each Cluster
• Cluster 1 106.000
• 2 38.000
• 3 1.000
• 4 34.000
• Valid 179.000
• Missing 1.000
Neeta BURNAH
52. Cluster 1
• Segments: to look glamorous, healthy skin, fresh
look, water proof and well known brand.
• 106 respondents
• Segments: treatment factor, hygiene, UV protection,
bio, hypo-allergenic, to avoid acne problem, skin
whitening, moisturise skin and anti-wrinkle.
• 38 respondents.
Cluster 2
Neeta BURNAH
53. Cluster 3
• Segments: new products that I haven’t tried and not
tested on animal factors.
• Not too feasible, comprises of one person.
Cluster 4
• New product that I haven’t tried.
• 34 respondents.
Neeta BURNAH
54. Tests
Normality test
Non-parametric tests: Mann-Whitney U,
Wilcoxon W and Mc Nemar
Frequency tables
Cross tabulation
Correlations
Chi-square test
Cluster analysis
Neeta BURNAH
55. Limitations of Study:
• Time constraint
• Financial constraint
• No response from respondents
• Difficulties of analysing data on SPSS
• Problem in doing cluster analysis
• Reliability of segment
• Accuracy
Neeta BURNAH
