CHAPTER II

REVIEW OF LITERATURE

Thakur, S., & Singh, A. P. (2012) stated the bonding between loyalty intention,
brand image and customer satisfaction regarding cosmetic products along with the people of
central India and it also states the five advantages of brand image were discussed, they are
symbolic, functional, social, appearance boost and experiential. Data was collected from 150
respondents which include both men and women; they preferred using cosmetic products of
specific brand for this work. The outcome was that the three brand image profit explicitly
social, appearance enhance and functional has certainly and notably related to loyalty
intention and customer satisfaction and the other two brand image namely symbolic and
experiential had no major force on loyalty intention and customer satisfaction. At last, the
conclusion was that marketing manager has to concentrate on the brand image in order to
succeed customer satisfaction to make the loyalty among the customer about their product
and service.
Suh, J. C., & Youjae, Y. (2006), have investigated how the product role is
moderately getting involved with respect to customer satisfaction and loyalty relation. This
paper is based on the attitude accessibility and stability theory. It has also proven that both
directly and indirectly customer satisfaction is proportional to loyalty, this is shown by
structural equation model. But when coming to ad attitude and corporate image it has indirect
effect on brand attitude through mediating influence. Finally it states that, there is decrease in
satisfaction on brand attitude and loyalty directly while increase in ad attitude and corporate
image indirectly.
Gomez, M. I., McLaughlin, E. W., & Wittink, D. R. (2004), Linked perception of
store attitude and satisfactory statement of customer together and customer satisfaction and
performance of the sales together. This paper have done 250 outlets of retails, which
contained six waves of customer satisfaction and data of sales, above the period 1998-2001,
this was held publicly supermarket company. In this study the analysis have been done in
food retail sector. This also shows the way the store revenues get affected by retailers by
managing customer satisfaction. In order to address nonlinearities and asymmetries they have
constructed statistical model in sales performance link.
 Gayathri, J., & Kousika, J, Showed that cosmetic industry have wide variety of
products and services. In cosmetic industry innovation and diversity exists due to increasing
demand from consumers. The present study reveals that in order to stay permanently in the
consumers mind, factors such as pricing, quality, distribution network, etc,., are considered
most important as customer satisfaction.
Apaolaza-Ibáñez, V., Hartmann, P., Diehl, S., & Terlutter, R. (2011), Concluded
on Women satisfaction on cosmetic products. To conduct the study, survey has been
conducted on women with 355 respondents. The outcome of the result is that hedonic brand
benefits and utilitarian contribute to the satisfaction with brands.
Campus, P. P, Started generally presentation of the product is represented by brands
depending on the customer satisfaction and opinion. They conclude by giving three
identification, one is change of cosmetics frequently by the students, health issues can be
occurred due to lack of knowledge about the cosmetic products and the final one id not
gaining the exact information about the product they use. Customer satisfaction and brand
loyalty in cosmetics are influence by types of placing and promotion.
Bagiyalakshmi, S., & Saranya, S, have stated that the most accountable sales are
done with color cosmetics like nail varnish, lip gloss and lipsticks. These are being most
popular in the range of other cosmetic and toiletries market. The study is related to the
customer satisfaction of cosmetic among collage girls, the sample taken for this study is from
100 girls in numbers. The techniques used in the study are chi-square test and percentage
analysis. This study has also extended its research process among the girls belonging to Arts
and Science, Engineering and other professional collage girls. The study has also included
about the usage of cosmetic among working women.
Sondoh Jr, S. L., Omar, M. W., Wahid, N. A., Ismail, I., & Harun, A. (2007), is
based on the color cosmetic product. There were five brand image benefits, they are
functional, social, symbolic, experiential and appearance enhance. These were investigated.
The sample was taken from 97 females. This has concluded that loyalty intention is affected
by functional and appearance enhance. The overall satisfaction was related by functional,
social, experiential and appearance enhance. The result states that in order to achieve
customer loyalty, marketers has to focus on brand image benefits and also it was indicated
that customer loyalty is influenced by overall satisfaction.
 Yuen, E. F., & Chan, S. S. (2010), focused on the customer loyalty impacts of the
product quality dimension and retail service quality dimension. This paper has majorly
focused on the retail industry, in particular to the curtain retail sector. Data were collected
from the customers who are existing there.
Elif A. Ergin et al (2005), carried on a research study with view to determining brand
loyalty among Turkish women with respect to skin-care products and enabling cosmetics
players to penetrate to the Turkish market and to shape marketing strategies. The results
showed that there is a brand loyalty among Turkish women for cosmetic products.
Stephen L et al (2007), examined the impact of brand image benefits on satisfaction
and loyalty intention for color cosmetic product. Results revealed that brand image benefits
viz. functional, social, experiential and appearance enhances are positively related to overall
satisfaction and loyalty intention is significantly influenced by functional and appearance
enhance.
(Mermelstein & Felding, 2007), This change is becoming a new trend and the male
grooming industry is expected to blossom since consumers are increasingly adapting to
western styles. The gap has shorten now a days between men and beauty care products, their
demand for skin care products are revealed to fulfill their pleasure and wellness start from,
cream their skin, feed the skin nutrition, anti-aging treatment, body and hair cares, spa centres
or even beauty institutions.
Hamza Salim Khraim (2011), analysed how factors of brand loyalty towards
cosmetic brands influence the customer satisfaction. The findings of this study disclose that
there is positive and significant relationship between factors of brand loyalty namely brand
name, product quality, price, design, promotion, service quality and store environment with
cosmetics brand loyalty.
Debiprasd Mukherjee (2012) conducted a study entitled “Impact of celebrity
endorsement on Brand Image”. This study shows that consumers report higher self-brand
connection for brands with images that are consistent with the image of a celebrity that they
aspire to be like, particularly in the case when the image of the celebrity and the brand match.
Yousaf, Usman et al (2012) tried to know the brand loyalty and affirmed that brand
credibility, brand awareness, brand association, perceived quality and product knowledge are
important to build brand loyalty. Result of this research indicated that there is a positive
relation between brand credibility, brand awareness, brand association, perceived quality,
product knowledge (independent variables) and brand loyalty (dependent variables). It has
also been concluded that customer satisfaction has the highest impact on brand loyalty and
L‟Oreal consumers are more than other brands.
Anjali Sharma et al. (2013), made an attempt to investigate the impact of brand
loyalty on customer satisfaction for Dazzler beauty products and aspects involved while
purchasing cosmetic products. Majority of respondents opined that quality is the most
important factor at the time of purchasing of the beauty products followed by brand and price.
However, small group of women feel packaging is the key factor for decision making.
Researchers concluded that these factors are generally responsible for switching to other
brands and friends are the most powerful reference group.
K. G. Sankaranarayanan & Nandakumar Mekoth (2014), found significant
difference between the usage and attitude of the clusters. This analysis resulted into the
formation of three clusters viz. medium self-directed, heavy other-directed & occasional
nonbelievers with varying characteristics. In addition, brand preference for body spray was
found to vary by cluster and brand preference for face wash, shaving cream and face cream
was not varying by cluster. Surprisingly, heavy other directed were reported to be the lowest
spenders while occasional non-believers were the highest spenders.
 CHAPTER III

HISTORY AND PROFILE OF THE COMPANY

3.1 Profile of the Company

Founded in 1938 by Aravind Laboratories, Eyetex started off as a religious cosmetic

brand, manufacturing Kajal and Kumkum. The earliest Eyetex Kajal was handmade, prepared
by women who worked out of rented households in West Mambalam, Chennai. The pure
quality of the products led to an increase in their popularity and the business expanded from
Chennai to all over south India in the 1960s. In the next decade, the brand gained a foothold
in Maharashtra, Gujarat, Orissa and Madhya Pradesh. Over the years, the product range
expanded to varieties of Kumkum, different sub-brands like Pallavi, Divyaa, and Poornima.
Today, the brand is available in wholesale as well as retail stores all over India.

Eventually, in the year 2000 the Eyetex branched out into colour cosmetics -
introducing the Dazller line, and into the Dazller Eterna line in the year 2010.

Eyetex Dazller

At the turn of the century, Eyetex launched the Dazller range of colour cosmetics in
the year 2000. This range consists of Lip makeup, Eye makeup, Face makeup and Nail
colours. True to their roots, these cosmetics are enriched herbs, vitamins and other natural
ingredients.
 What makes Eyetex Dazller stand out in comparison to other contemporary brands, is
the fact that despite the rich quality of the products, they are economically priced and are free
of harmful chemicals, thereby protecting the skin whilst beautifying it.

Dazller Eterna

Dazller Eterna is a range of premium makeup products by Eyetex, consisting of

unique, easy-to-use cosmetics. Following the Eyetex legacy, these products are herbally
enriched yet formulated with advanced scientific techniques. Unlike most other cosmetics
available in the market today, Dazller Eterna's cosmetics not only glamorize the skin but also
nurture it. This way, women get sophisticated matte finish makeup, while their skin stays
healthy and unharmed.
These products are available in a variety of shades and hues to suit diverse Indian skin
tones and manifold needs of women.
History of eyetex
The coin-sized container of kajal is one of those things we take for granted. Much like
the bottle of coconut oil and the talcum powder on the dressing table, the kajal dabba is not
something we pause to examine in our tearing hurry. But would you do so if you knew that
each of those containers was handheld by a woman who filled the greasy paste into it using a
butter knife? Aravind Laboratories employs sophisticated machinery to make cosmetics, but
their Eyetex kajal is filled by hand, just as it has been since the business was founded in 1938.

Eyetex was started by K. Vasudevan, an assistant to singer M.S. Subbulakshmi.

Vasudevan followed the time-tested method of burning castor oil and gingelly oil and mixing
the resulting carbon with refined castor oil — the end-product, kanmai, a shiny, jet-black
substance that was used to accentuate the eyeswas first sold at Pushpavanam Stores in
Triplicane. He also made saandhu, a deep-red liquid used to draw bindis, at his home in Porur.
 A.V. Srinivasan, a chemist, bought the company in 1958. “I barely remember anything
from those times,” says Shanthi Rajagopal, Srinivasan’s daughter. “I must have been 11 or so.”
Years later, when she got married, her husband R. Rajagopal joined the business. A partner at
Aravind Laboratories, the 78-year-old remembers Eyetex’s milestones with the type of bindis
they made — such as the saandhu phase, sticker bindi phase, the 11-in-one phase.

Srinivasan continued the tradition of making kanmai by hand — he employed women

to make and fill the paste at rented households in West Mambalam. But since their work
largely involved burning oil, he decided to move far from the city — he purchased land in
Ramapuram in 1968 (where their factory is currently located). “The area was a Palmyra forest
then,” recalls Shanthi.

Eyetex initially stuck to four products — kajal, and kumkum in paste, liquid and
powder form. Today, though, they’ve branched out into the Dazzler range of cosmetics, and
are gradually taking on the big names. Their USP, though, is kajal and the sticker bindis that
are pasted in bright green cards. You can see them everywhere in India — strung at that
nameless corner store that sells bananas and soap to the glittery ‘fancy stores’ that stock
everything from nail clippers to compact powder.

M. R. Jayanthi, chief executive — production, walks us down the red-tinged work

floors of the factory. While a few women tumble white saandhu into a plastic drum at one unit,
some others are bent in concentration at tables packing nail polish. At the sticker bindi section,
machines carve out perfect red circles of various sizes and stick them on cards that are packed
into boxes by more women.
 In a light-filled work floor upstairs, the kajal unit is at work, sitting around steel
containers filled with the shiny, black substance. Women, with butter knifes and a pile of the
tiny black ‘Eyetex’ containers, work amid friendly banter. Their hands function at a rhythmic
pace — scoop, smear; scoop, smear... the containers are filled in effortless precision. The
mood is relaxed yet serious; perhaps, it’s because over 95 per cent of the workforce consists
of women who’ve worked together for years.
Colour cosmetics are the fastest growing segment, valued at $60 million. The major
products in colour cosmetics market are foundation, compacts, eye make-up, lipsticks, nail
enamels, blush-on, etc. Lipsticks and Nail Enamel account for 65% of the Color cosmetic
segment. The nail polish segment is valued at Rs. 1.25 billion followed by the lipstick market
at Rs 7 million. All the categories in this segment are growing at around 25-30%.
Gone are the days when cosmetics were viewed as expensive and self-indulgent items.
Greater access to television, increased advertisement, growing awareness of western world,
and greater product choice and availability have resulted in growing demand for cosmetic
products in India.
Aravind Laboratories is the flagship of the Group of Companies engaged in the
manufacture of cosmetics since 1938, when Sri Vasudevan started to make Kajal under this
Brand. Initially he manufactured Kajal (Kanmye / Katuka / Kankappu / Kanmashi/Kohl etc.,)
and Kumkum (Bindi) Chandu liquid in glass bottles. With superior quality and unique
preparations, the Brand Eyetex gained immense popularity & was sold in the then Madras
State only. The Kajal was so popular that the brand became synonymous with Kajal.

The cosmetics market can be segregated into talcum powder, colour cosmetics (lip ,
eye, face, and nail care products), deodorants, and perfumes. The cosmetics market has been
growing at the rate of 15-20% for the last few years. The sector has witnessed growth mainly
from medium and low priced category that accounts for 90% of the cosmetic market.
In March 1958, the current Promoter s family headed by Late Sri A.V. Srinivasan
acquired the business. Their business expanded considerably with the launch of Kumkum
(Bindi) preparations (Liquid Kumkum, Kumkum Paste, Kumkum Powder, Sticker Ku mkum,
Multi-color Kumkum liquid, Kumkum pencils), Eyebrow Pencils and Eyeliner liquid all
under the brand name . The Firm expanded its range with attractive Plastic Containers and
introduced the concept of Multi Coloured Kumkum in Liquid, Paste and Powder forms.
Since the 1960s the firm expanded their sales in South India by appointing the
distributors in Andhra Pradesh, Kerala and Karnataka. From mid-seventies, the Fir m
extended its marketing reach in North India by entering Maharashtra, Madhya Pradesh,
Orissa and Gujarat.
Early seventies saw the introduction of liquid Kumkum in Plastic containers of
different sizes. Matt Finish Kumkum was launched in Plastic Tubes in two sizes in mid-
seventies. Gradually the Brand gained the top position amongst the Trade & the consumers
for these varieties; nearly 18 million pieces are sold every year in three sub brands Poornima,
Divyaa and Pallavi. Introduction of another new product with a new strategy: Mid-eighties
saw the launch of Kumkum Stickers under Pallavi sub Brand.
The Firm upgraded the quality of the Pallavi Kumkum Stickers in 1997 by switching
over to an exclusive non-woven based flocked fabric (only Brand in India to do so till date) &
doing away with the harmful PVC based flock fabric. The manufacturing procedure was so
upgraded that no part of the human skin retained any traces of the adhesive applied on the
fabric. The adhesive never gets transferred to the skin on the forehead and the pH of the
adhesive matched that of the skin a voiding any chances of skin irritation. Gradually, the
Brand gained immense popularity and trust from the millions of w omen who had become its
loyal consumers. A variety of attractive packs, excellent quality of the products, regular
coverage of the markets with excellent after sales services resulted in becoming the market
leaders in town after town and state after state. How did they do it : Customers experienced
their marketing, sales personnel, he customer's impression of key product performance, and
brand in numerous ways: products, packaging, price, etc. Each of these contacts or touch
points moulded t the brand. Some of these touch points are obvious, li one-on-one customer
interactions.
Brand became a living legend for Traditional or Religious range of Cosmetics. The ir
foray into the Colour Cosmetic segment began in 1985, with the introduction of Eyeliner.
Since 2002, the firm launched a wide range of Colour Cosmetics such as Mascara, Nail
Polish, Lipstick, Lip Gloss, Liquid Makeup, Compact Powder, Nail Polish Remover, Liquid
Lip Colour, Lip Gel, Face Powder, Talcum Powder, Eyeshadow, Combination Packs etc,
under the sub brand . The Reasons For Its Success : Quality products Constant up gradation
of the manufacturing processes, packaging & labelling on a regular basis. They delivered
More Value for Less Money to the millions of Customers. Brand Popularity : Apart from 22
states in India the products are available in markets around the world where Indians are
settled. In 2010 Dazzler moves into personal care. Talcum powder is one of the most popular
cosmetic products in India. Its market is valued at Rs 3.5 billion and is growing at the rate of
12% per annum. Its penetration level is 45.4% and 25.2% in urban and rural areas
respectively. Dazzler brand which is endorsed by Eyetex has moved into personal care
category by launching its range of Talcum powders.
The brand owners - Arvind Laboratories has been investing behind this brand which
is targeting the youth. Dazzler so far was focusing on color-cosmetics. Talcum powder is one
of the most popular cosmetic products in India. Its market is valued at Rs 3.5 billions and is
growing at the rate of 12% per annum. Its penetration level is 45.4% and 25.2% in urban and
rural areas respectively. Ponds dominates talcum powder market with a market share of 70%,
followed by Johnson & Johnson with a market share of 15%. Dazzler has been luring the
customers with its hip-hop advertisement campaigns and very competitive pricing. The
endorsement from Eyetex brand also helped Dazzler to gain acceptance from the customers.
The move of Dazzler to launch a talcum powder is a surprising one. The move can be
qualified to be called as a brand extension ( category extension) because talcum powder
belongs to a different category (personal care) while Dazzler's products were primarily in the
cosmetics segment. Brand extensions are always tricky and these extensions will succeed
only if the parent brand is significantly powerful.
Dazzler itself derives support from the Eyetex brand and has not yet become
independent. The move for this extension may be part of a larger plan to develop Dazzler as a
personal care + cosmetic brand in future. Brands like Pond's, Lakme etc has successfully
developed themselves to be family brands endorsing a large number of products across
various categories. Personal care is different from color cosmetics in terms of attributes.
Dazzler may find it difficult to manage these two categories using same set of attributes.
Having said that, Dazzler may have to set a clear direction in terms of the positioning. Now
Dazzler color cosmetic campaign s are depending heavily on imagery to do the talking. The
entire brand is revolving around the " Dazzler Girl " who is imaged as a modern, stylish,
fashionable and thus radiates the brand's attributes. The same imagery is shown in the
Dazzler's Talcum Powder advertisement.
Dazzler now should move to become an independent brand with a clear positioning.
The use of " Dazzler Girl " will give brand imagery but along with that, the br and should
communicate some very relevant attributes that will support the positioning of a trendy
fashionable brand. Competitors and their market share : Ponds dominates talcum powder
market with a market share of 70%, followed by Johnson & Johnson with a market share of
15%.
PRODUCTS

Eyetex Pallavi Sindoor - 7.5g Eyetex Dazller Deep Cleansing Milk - 100ml

Dazller Eterna All Clear Makeup Remover Eyetex Dazller Talcum Powder - 100g
Eyetex Pallavi Sindoor Liquid Eyetex Pallavi Kum Kum - 2 in 1 Gopi

Eyetex Dazller Lipgloss - 3.2 gm Eyetex Dazller Lipgloss - 6.5 gm

Eyetex Dazller Lipstick Creme Eyetex Dazller Lipstick