Factors Affecting the Buying Behaviour of Vlcc Products Essay Example For Students

Factors Affecting the Buying Behaviour of Vlcc Products Essay Chapter -1 OBJECTIVE OF STUDY 1) OBJECTIVES OF THE STUDY:- A) To ascertain the availability of VLCC PERSONAL CARE Products in the market. B) To know the end user response towards VLCC PERSONAL CARE products. C) To know the factors which affect the growth of VLCC products. D) To know the services provided by VLCC PERSONAL CARE products in the market. Chapter -2 INTRODUCTION 2) INTRODUCTION:- The whole study about the factors which affect the buying patterns of the end consumers in personal care products. The factors like presence ,promotion, customer need satisfaction , channel strategy and support system which affect the VLCC in the market ,trans Gomti Lucknow. VLCC enter in the market as a personal care product and presently they capture around 12% market of trans gomti . About VLCC:- The guideline of VLCC Group is â€Å"Transforming Lives†. By this guideline ,we imply transforming self, spreading happiness and transforming future. These three pillars have been the hallmarks of our company since Mrs. VanDana Luthra founded it in 1989. They remain the foundation of VLCC upon which we continue to build our success today. Without change in wellness, VLCC revolutionized this industry and acquired the status of India’s largest health and beauty brand. Today VLCC is the single largest player in the organized sector with a pan- India presence of nearly 225 outlets across 90 cities, 1 in Katmandu , 10 locations in UAE, 2 in Oman, 1 in Bahrain and 1 in Al Ain. The VLCC Group, a â€Å"super brand†, serves as an umbrella for all its other brands – VLCC Health Care Ltd. , VLCC Personal Care Ltd. and VLCC Institute of Beauty , Health and Management, VLCC Day Spa VLCC Nutri-Diet clinic. VLCC services provide holistic wellness, as a service, marrying scientific research and traditional therapies. VLCC having served around 10 million customers since its inception, VLCC, today , has achieved an iconic status across the world and it is India’s largest and most preferred Slimming , Beauty Health care brand. To ensure a good quality of life for everyone, by adopting and pursuing ethically and socially relevant business practices aimed at shaping up people’s confidence and making Slimming, Beauty Health accessible to every sections of our society. NOVENA Enterprise is the channel partners of VLCC Personal Care product in trans gomti. NOVENA Enterprise is the trading house which mainly deals in Personal Care , Health Care and OTC product of the major players of market like as VLCC ,CIPLA. They have authorized distributor and marketing promotion rights of all above mentioned company. They provides the supply of product, demand generation of the product and also promote the products with there own marketing team. Company Profile:- VLCC PERSONAL CARE PVT. LTD. Gurgaon,Haryana,India PharmaceuticalsProducts-Manufacturer,Export/Import, Pvt. Ltd. FirmSince1996 Mission:- The VLCC with uncompromising integrity ethics, sustaining environmentally sound standards, backed by strong state of the art RD scalable manufacturing facility in tax free zone offers you reliable range of Ayurvedic and non Ayurvedic products that you can confidently launch under your brand, thus have a competitive advantage. VLCC is the worlds first beauty, slimming and fitness corporate to get the ISO 9001:2000 certification. It is also one of only about 165 companies globally, and the first of its kind in the world, to have been awarded the SA:8000 (Social Accountability) certification and the first in the industry globally to receive the ISO:14001 certification for being an environment friendly company. That VLCC is one of the countrys most recognized brands in its own right is an acknowledged fact and this is reinforced by the its recent induction into the world-wide hall of fame for brands by being awarded the international Super brand status. One of VLCCs major diversifications has been the setting up of VLCC Personal Care to manufacture and market beauty products. The VLCC Personal Care line of over 100 natural skin-care, body-care and hair-care products for the retail and professional segments have found a ready market all across India. Encouraged by the response, the company is setting up a chain of exclusive stores under the brand VLCC Beauty Shop. VLCC also manages a prestigious centre of learning related to its area of expertise, called the VLCC Institute of Beauty, Health and Management. Based in New Delhi, Chandigarh, Lucknow and Bangalore and affiliated to City , UK, it provides technical training not only to students wishing to take up beauty and nutrition as a career but also imparts training to professional in the field wishing to upgrade their skills. In addition, it is the in-house training academy for VLCC staff, which currently numbers over 3000. To date, nearly 3000 students have passed through VLCCs institutes portals in the three years since its inception . VLCC – region’s top scientific slimming and preventive healthcare brand, comes to Oman Pioneering wellness group offers scientific ways to lose weight Sultanate identified as key market for VLCC’s global expansion Muscat, April 17, 2008: VLCC – one of the region’s premier scientific slimming, beauty and preventive healthcare brands, will mark its foray into the Sultanate of Oman with the inauguration of its first slimming centre in Muscat this week. VLCC has revolutionized the concept of beauty and fitness in India and the UAE with its ‘Look Good Feel Great’ mantra, has carved a distinct niche for itself in the ‘wellness’ domain which includes slimming, beauty, fitness, personal care products and education and training institutes. Announcing the group’s expansion plans in Oman, Ms Vandana Luthra – Founder and Mentor of VLCC, said: â€Å"VLCC’s foray into the Sultanate of Oman is in line with our commitment to provide our consumers with state-of-art services in a congenial and comfortable environment. We have a flourishing and rapidly expanding network in India and the UAE, which is a testimony of people’s faith in our brand and services. Driven by growing awareness levels for slimming and fitness across the region, VLCC is aiming to seek a niche positioning in Oman, motivated by its mass appeal and world-class bouquet of services. † She added: â€Å"Our personalized approach is based on years of experience that at VLCC every customer is unique, in terms of aspects such as lifestyle, attitude and body logic. We will continue to offer our customized services in Muscat as per the individual’s needs, medical status and body composition analysis. † VLCC’s USP is its scientific approach to tackling weight loss. An in-depth knowledge of various factor responsible for an individuals health and body fat such as medical status, age, gender, level of energy, diet composition, physical activity, alcohol intake and smoking habits is acquired by VLCC’s trained team of specialists. In addition, a comprehensive Body Composition Analysis (BCA) makes a significant qualitative and quantitative contribution towards a customized weight management programme. VLCC helps its customers achieve a gradual and steady scientific weight-loss. The regimens do not involve the use of appetite suppressants, drugs and anorexic diets. At VLCC, one is encouraged to eat the right kind of food. The right proportion and quality of carbohydrates, proteins, fat, fiber, vitamins, minerals and antioxidants is formulated, keeping in mind cultural eating patterns and individual diet likes and dislikes. VLCC helps in altering eating habits and making physical activity part of the lifestyle, thereby preventing obesity in long term. Its scientific and planned approach treats every individual personally, as each client is handled in a different manner depending on his / her specific medical condition and lifestyle. Another fact that makes VLCC unique is its essential body firming, toning and detoxifying therapies which help to tighten the skin by providing it the requisite tone. VLCCs care for customers doesnt end with the completion of a weight loss programme. All weight loss clients receive counseling on weight maintenance. VLCC, currently an RO40 million group, is also planning an Initial Public Offering (IPO) in 2009. While the details of the IPO will be announced later in the year, the capital raised would be used mainly to fund VLCC’s growth plans in the Middle East and beyond and further expansion in its three lines of business – slimming beauty services, manufacturing and retailing of personal care products and beauty and nutrition education training services. Market Profile:- Lucknow is one of the fastest growing market in India. It is the face of changing India and continuous changing the buying patterns of consumers. The awareness of Personal Care product is increasing. The consumer is ready to invest on the quality products which satisfy the need of consumers. So the VLCC emerge as a big contender of the Personal Care product market of Lucknow because of high quality products , effective promotion and sales strategies which give a edge to VlCC in the market. VLCC provides some very effective and satisfactory products in the market after identification of the need of consumers by which VlCC become a household name. VlCC put their effort in the very basic yet affective sales strategy like proper placement of product with the help of strength full distribution channel partners of the local market. VLCC start providing the benefits to the both retailers and consumers. For retailers they provide the huge margins ,proper supply, attractive promotional schemes , affective sales field support. For consumers they provide high quality products in very competitive price, the change of products to satisfy the max. set of . consumers needs like waste and tummy gel for shape up the body and mom’z for removing the stretch marks. VLCC provides the range of products in the category shape correction, skin care, hair care and eye care. My second vision is to choose Lucknow as a study field of Personal Care product because Lucknow is a huge market for Personal Care products. which is established by this calculation which I calculated from my side for only one product which is suns cream Lotion:- Suns cream is available in the market in the pack of 100 ml @ of Rs. 135 . Total population of Lucknow is around 42 lacs . Around 15 lacs population living in trans gomti Lucknow. Our target population is only 5 lacs which is majorly using the suns cream to safeguard skin from UV rays. Suppose a consumer spends Rs. 5 per day on his consumption of sunscream, then 5 lac consumer would spend total Rs. 75 lac in a single day and around 2250 lac on monthly basis , and 27000lacs on yearly basis. If VlCC is successful in capturing only 1% market i. e. 270 lac on a single product which is a huge amount. product. Types of Products:- Years of research, testing, and the manufacture of formulations enables us to offer you products that are of the highest quality. We are proud to offer you the following: BATH CARE †¢ Bath Shower Gels †¢ Milk Baths †¢ Bubble Baths †¢ Bath Oils †¢ All-Over Body Shampoos †¢ Splashes Bath Crystals/Salts †¢ Body Salt Sugar Scrubs †¢ Hand Body Lotions †¢ Whipped Body Creams SKIN TREATMENTS †¢ Creams (antioxidant, therapeutic s, botanicals, etc. ) †¢ Skin Brighteners] †¢ Lotions †¢ Moisturizers (creams, lotions, gels sprays non aerosol) †¢ Scrubs †¢ Masques †¢ Serums †¢ Gels †¢ Toners/Astringents †¢ Cleansers †¢ Sprays (non-aerosol) †¢ After Shaves †¢ Shaving Gels/Creams Slimming Products †¢ Anti-Cellulite Cream/Gel †¢ Bust Firming Cream †¢ Chin neck firmer Hair Care †¢ Shampoos †¢ After Sun- Gel Lotion †¢ Styling Gels/Lotions (non-aerosol) †¢ Volumizers †¢ Setting Lotions †¢ Henna Sun Care Sun Block -Cream, Lotion Gel Conditioners Eye Care †¢ Under Eye Cream †¢ Kajal (Eye-Kohl) Awards Recognition:- The greatest reward, which VLCC enjoys, is the trust and faith that million have in its name. VLCC today is a brand synonymous with Slimming, Beauty Health care. It is the only brand in the world which get the world’s first Health and Beauty corporate to get the ISO 9001:2000 certifications. VLCC has over the years received a host of award for excellence and women entrepreneurship. Some of them include as: †¢ The ‘Super brand’ status one of the most recognizable brands in the country today. Images Retailer of the Year Award in 2004, 2005 2006 (Health Beauty care category). †¢ ICICI Bank Retail Excellence Award 2005 (Health Beauty care). †¢ The Institute for Marketing Management (IMM) Award for the Woman Entrepreneur of the Year in 2004. †¢ Whirlpool/Gr8 Magazine Award for the Woman Entrepreneur of the Year in 2004. †¢ Best Beauty Wellness company-   Mega Excellence Award. †¢ The FICCI Ladies Organization, (FLO) honored the endeavors of Mrs. Luthra for promoting a healthy way of life by felicitating her as a Successful Business Woman in the Health Fitness Category, 2005. Amity Woman Achiever Award for promoting Health and Fitness Solutions, 2006. †¢ Outstanding Businesswoman award by PHD Chamber of Commerce Industry, 2007. †¢ VLCC Alive was awarded the Most Admired Retailer Of The Year -Innovative Concept at Images Retail Awards 2007. †¢ Witnessing Mrs. Luthra’s steadfast dedication towards liberating women through education and empowerment, the Department Of Industrial Policy and Promotion, Ministry of Commerce Industry Govt. of India, made her a member of the Task force on women entrepreneurs. †¢ Rajeev Gandhi Women Achiever 2008. Award for Woman Super Achiever in Retail by the Retail Congress- 2009. †¢ Women Business leader in Health Care- 2009- Women Leaders in India   Forum. Chapter -3 LITRATURE REVIEW 3) LITRATURE REVIEW Article 1 â€Å"The Dirichlets Buyer Behaviour Assumptions Really Do Matter† ANZMAC 2000 Visionary Marketing for the 21st Century: Facing the Challenge 1994 When any reliable models do not fit observed data it tells us that some condition in the market violates the underlying assumptions of the model – and this can be very useful information indeed. EXTENDED EssayTable 20:- Accessibility of VLCC |Accessibility | | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |very good |11 |10. 7 |11. 0 | INTERPRETATION:- 42% of the retailers said that accessibility of the products are very good or good, 23 % said that it is average,35% said it is bad and it can be further improved u) Providing Beauty Advisors Table 21:- Providing Beauty Advisors by VLCC |Providing beauty advisor | | |Frequency |Percent |Valid Percent |Cumulative Percent | |Valid |very good |9 |8. 7 |9. 0 | INTERPRETATION:- 40% of the retailers said that they are satisfied with beauty advisor, 21 % said that it is average,39% said it is bad and it can be further improved by providing more beauty advisors. CHI SQUARE TEST Hypothesis Null hypothesis(H0):There is no association between price and satisfaction level. Alternate hypothesis(H1) : There is association between price and satisfaction level Significant level : 5% Table 22:- chi square table of price and satisfaction level | | |PRICE * satisfaction Cross tabulation | |Count | | |satisfaction |Total | | |1. 00 |2. 0 | | |PRICE |very good |54 |12 |66 | | |good |29 |5 |34 | |Total |83 |17 |100 | | | | | | | | |Chi-Square Tests | | | |Count | | |BA |Total | | |1. 00 |2. 00 | | |customer |1. 00 |51 |22 |73 | | |2. 00 |10 |17 |27 | |Total |61 |39 |100 | Table 23:- chi square table of customer response and providing beauty advisor | |Chi-Square Tests | | | |Count | | |BA |Total | | |1. 00 |2. 00 | | |satisfaction |1. 00 |54 |29 |83 | | |2. 0 |7 |10 |17 | |Total |61 |39 |100 | |Chi-Square Tests | | | |Kaiser-Meyer-Olkin Measure of Sampling Adequacy. |. 668 | |Bartletts Test of Sphericity |Approx. Chi-Square |247. 862 | | |df |105 | | |Sig. |. 000 | Analysis Kaiser-Meyer-olkin index for comparing the magnitudes of observed corealtion coefficient to the magnitude of the partail correlation coefficents. ) From the value of KMO it can be analysed that there is no error in 66. 8% of the sample and remaining 33. 2% may have some sort of error. KMO and Bartlett’s Test showa that the strength of the relationship among variables is large enough. so its shows the sampling adequcy more then . 50. â€Å"Bartlett’s test of sphericity† (strength of relationship among varibles is strong. It presents good idea to proceed factor analysis for data. ) H0:There is no significant difference between factors affecting buying behaviour towards retailers. H1: There is significant difference between factors affecting buying behaviour towards retailers. Observed significance level= 0. 000 Expected significance level = . 050 Observed significance level Expected significance level Reject H0 Analysis There is significant difference between factors affecting buying behaviour towards retailers. Communalities :Initial vs. Extraction Communality of each statement refers to the variance being shared or common by other statements. With reference to first statement, the extraction is . 469 which indicates that 46. 9% of the variance is being shared or common to other statements . Table26:- Communalities Communalities | | |Initial |Extraction | |Brand Image |1. 000 |. 469 | |Margin |1. 000 |. 656 | |Availability |1. 000 |. 739 | |Packaging |1. 000 |. 697 | |Price |1. 000 |. 678 | |Satisfaction level |1. 000 |. 610 | |Value addition |1. 000 |. 09 | |Promotional scheme |1. 000 |. 541 | |Customer response |1. 000 |. 601 | |Replacement for damages |1 . 000 |. 584 | |Quality |1. 000 |. 572 | |Salesman services |1. 000 |. 687 | |Innovation |1. 000 |. 712 | |Accessibility |1. 000 |. 656 | |Providing beauty advisor |1. 00 |. 706 | |Extraction Method: Principal Component Analysis. | Percentage of Variance Accounted For By The Three Components Model The variance explained by the initial solution, extracted component and rotated components is displayed. |Total Variance Explained | |Component |Initial Eigen values |Extraction Sums of Squared Loadings | | | Table 27-Total Variance explained Analysis: The cumulative percentage column gives the percentage if variance accounted for the first n components. so we can judge that about 64. 121% of total variance in 15 factors is attributable to first six components. Also we can conclude that variable 1 explains a variance of 3. 138 which is 20. 917% of total variance. Variable 2 explains a variance of 1. 685 which is 11. 235% of total variance. Variable 3 explains a variance of 1. 524 which is 10. 157% of total variance. Variable 4 explains a variance of 1. 147 which is 7. 647% of total variance. Variable 5 explains a variance of 1. 085 which is 7. 232% of total variance. Variable 6 explains a variance of 1. 040 which is 6. 32% of total variance. Table 28:-Component Matrix Before Rotation |Component Matrix | | |Component | | | |a. 6 components extracted. | Analysis This matrix contains loadings of each variable into each factor. by default SPSS displays all loadings; however , we have requested that all loadings less that . 4 should be suppressed in output and so there are blank spaces for many of loadings. This matrix is not particularly important for interpretation. Table 29: Rotated Component Matrix |Rotated Component Matrix | | |Component | | | |a. Rotation converged in 16 iterations. | The rotated component matrix is a matrix of the factor loadings for each variables onto factors. this matrix is calculated after rotation ands contains same information as the component matrix contains before rotation. Factor analysis Factor number |Factor name |Variables statement |Factor |Variance% |Cumulative | | | |and number |Loadings | | | |Factor 1 |Services by company |Brand Image |. 519 |20. 917% |20. 917% | | | | |. 555 | | | | | |Satisfaction level |. 771 | | | | | | |. 53 | | | | | |Accessibility | | | | | | |Providing beauty | | | | | | |advisor | | | | |Factor 2 |Outlet offerings |Promotional scheme |. 660 |11. 235% |32. 152% | | | |Replacement for |. 529 | | | | | |damages | | | | | | | |. 511 | | | | | |Quality |. 06 | | | | | | | | | | | | |Innovation | | | | |Factor 3 |Product |Availability |. 764 |10. 157% |42. 309% | | |Accessibility |Pack aging |. 769 | | | |Factor 4 |Benefits |Margin |. 733 |7. 647% |49. 956% | | | |Salesmanservices |-. 792 | | | |Factor 5 |Customer Relationship |Value addition |. 780 |7. 232% |57. 88% | | | |Customer response | | | | | | | |. 646 | | | |Factor 6 |Economical factors |Price |. 820 |6. 932% |64. 121% | Factor discussion 1. Factor 1(services by the company) This factor has emerged as the most important factor of our research with 20. 917% of variance. Major elements of this includes Brand Image (. 519), Satisfaction level(. 555) Accessibility(. 771) ,Providing beauty advisor(. 653) . This factor is most important to attract customers. To keep retailers happy and to make them more stock of VLCC have to take care of all these points. 2. Factor 2(Outlet offerings) This factor is also important and contribute to 11. 235% of variance. Major elements of this includes Promotional scheme (. 620)Replacement for damages(. 529) Quality(. 511) Innovation( . 706). so company should also take care of its offers. 3. Factor 3(Product Accessibility) This factor contributes to 10. 157% of variance and includes 2 variable i. e. Availability (. 764),Packaging(. 769). To shows that retailers want availability of right product at right time and also at genuine price. 4. Factor 4(Benefits) This factor contributes to 7. 47% of variance and includes 2 variable i. e. Margin(. 733), Salesman service(-. 792). so company don’t need to worry more about charges . customers are ready to pay but they want good services by company. 5. Factor 5(Customer Response) This factor contributes to 7. 232% of variance and includes 2 variable i. e. Va lue addition(. 780) ,Customer response(. 646). Company provides different –different value addition on different seasons for getting more more customers. 6. Factor 6(Economical factors) This factor contributes to 6. 932% of variance and includes 1 variable i. e. Price(. 820). Company should provide low price for getting more customers. Chapter -6 CONCLUSION FINDINGS 6) CONCLUSION AND FINDINGS o The most important factor which affect retailer’s buying behaviour for cosmetics products is services provided by the company o Customers are ready to pay but they want good services by company o Retailers are satisfied with margins provided by company. o Distributor want more sales force for capturing the new market. o Company should provide small packs of their product. o Availability of VLCC product in the market is good. Company must be increase the availability of product. o Salesman services provided by the company are average. So company should make arrangements for more salesman in the market. Chapter 7 LIMITATION 7) Limitations ? Biasness- as data collected is also through only observation. ? Geographical barrier- as data has to be collected from Lucknow only. ? Time constraint- as lots of questionnaire is to be filled it involves lots of traveling. ? Office timing- as VLCC follow a very tight schedule and very punctual about the time. And moreover, most of the Retailers are busy during evening time so they have to be visited during day time. ? Reliability- as data is collected through questionnaires and internet, so it may happen that the information provided by them is not true or reliable. Chapter -8 RECOMMENDATIONS 8) RECOMMENDATIONS VLCC should provide more offers to their retailers. †¢ They should focus more on advertising strategy. †¢ They provide small sachet because these are in very much demand. †¢ They should provide various schemes to their customers to motivate them to purchase. †¢ They should provide more beauty advisors to retailers. â € ¢ They should increase the sales force in the market. †¢ They should provide more margins to retailers. Chapter-9 BIBLIOGRAPHY 9) BIBLIOGRAPHY BOOKS 1) KOTLER PHILIP, July 2003. Marketing Management, eleventh edition, New Delhi: Prentice Hall of India Publishing Co. , Ltd. 2) KOTLER PHILIP , KELLER KEVIN LANE, KOSHY ABRAHAM, JHA MITHILESHWAR, 2009. Marketing Management: A South Asian Perspective,13th edition, New Delhi: Pearson Prentice Hall 3) NARESH K MALHOTRA, SATYABHUSHAN DASH, 2009, Market Research: An applied orientation, 5th edition , Prentice Hall Website:- 1) www. VLCC. co. inabout,us 2) www. VLCCpersonalcare. com 3) http://members. byronsharp. com/6884. pdf 4)http://dspace. iimk. ac. in/bitstream/123456789/82/1/Retailing-Mulky_Nargundkar. pdf 5) http://dspace. iimk. ac. in/bitstream/2259/326/1/581-595. pdf 6) http://inferringvalue. files. wordpress. com/2010/06/factors-affecting-e-tailing-website-effectiveness-an-indian-perspective. pdf Chapter -10 ANNEXURE 10) ANNEXURE Retailers Survey Name Of the Shop :- Retailers Name :- Address :- Q 1- Do you stock VLCC Products a) Yes b) No Q 2- If yes, the most preferable FMCG product that you stock a) VLCC b) LOTUS c) BIOTIQUE d) PONDS e) Others Q 3- If No, Why ? a) Absence of Sales man b) Low Margin c) No Replacement for Damage d) Low Distribution e) Low Sales Q 4- You get VLCC Products from a) Directly from NOVENA b) Other Supplier Q 5- Which sale promotional activities does the VLCC undertake for their Products a) Price off b) Value additions c) Credit Facility d) Free samples e) Advertisement Q 6- What is Consumer’s expectation from VLCC? a) Good Quality b) Attractive Packaging ) Ease of Availability d) Lower Price e) Replacement for Damages Please fill the following questions on the basis of your liking. |Very Good |1 | |Good |2 | |Average |3 | |Bad |4 | |Very Bad |5 | Q 7:- VLCC products in terms of Brand Image Q 8:- VLCC products in terms of Availability Q 9:- VLCC products in terms of Margin Q 10:- VLCC pro ducts in terms of Packaging Q 11:- VLCC products in terms of Price Q 12:- VLCC products in terms of Satisfaction level Q 13:- VLCC products in terms of Value Addition Q 14:- VLCC products in terms of Promotional Scheme Q 15 :- Customer Response towards VLCC Product Q 16 :- VLCC provides Replacement for Damages Q 17:- VLCC products in terms of Quality Q 18:- VLCC products in terms of Salesman Services Q 19:- VLCC products in terms of Innovation