SUMMER TRAINING REPORT

ON

“CUSTOMER SATISFACTION OF
L'ORÉAL INDIA”

FOR THE PARTIAL FULLFILMENT OF THE REQUIREMENT OF

THE AWARD OF DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED To: SUBMITTED BY:

Professor (Dr.) Sayed HAIDER ALI SAIKA FATIMA
H.O.D. (BBA) BBA 5th Sem.
Roll No. 1903063

KHWAJA MOINUDDIN CHISHTI

LANGUAGE UNIVERSITY,
LUCKNOW
2021-22
 DECLARATION

I SAIKA FATIMA (Roll No. 1903063) hereby declare that the project work entitled

“CUSTOMER SATISFACTION OF L'ORÉAL INDIA” submitted to the KHWAJA

MOINUDDIN CHISHTI LANGUAGE UNIVERSITY, LUCKNOW is a record of an

original work done by me under the guidance of Professor (Dr.) Sayed HAIDER ALI,

Assistant Professor and this project work has not performed the basis for the award of any

degree or diploma and similar project if any.

 ACKNOWLEDGMENT

First of all I thank God for giving me this wonderful opportunity to undertake this

research which is a part of my BBA program.

I would like to sincerely thank Professor (Dr.) Sayed HAIDER ALI, Assistant

Professor for giving me the wonderful opportunity to work under his able guidance and

support throughout my research.

I also thank persons working at Eveready India Ltd. office for giving me their valuable

time and vital information which forms a part of this report.

I would also like to thank my colleagues for rendering their help to me in this research.

Last but not the least, I thank my parents for their prayers, help and advice which helped

me a lot to complete this project report.

 TABLE OF CONTENT
Sr. No. Title Page No.

1. Introduction 1-42

2. Company Profile 43-45

3. Review of Literature 46-48

4. Objectives of the study 49-51

5. Research Methodology 52-55

6. Data Analysis & Interpretations 56-66

7. Findings 67-68

8. Conclusion 69-70

9. Limitations 71-72

10. Suggestions/Recommendations 73-74

11. Bibliography 75-76

12. Annexure 77-80

INTRODUCTION

1
 INTRODUCTION

Customer satisfaction

Customer satisfaction is a term frequently used in marketing. It is a measure of how

products and services supplied by a company meet or surpass customer expectation.

Customer satisfaction is defined as "the number of customers, or percentage of total

customers, whose reported experience with a firm, its products, or its services (ratings)

exceeds specified satisfaction goals."[1] In a survey of nearly 200 senior marketing

managers, 71 percent responded that they found a customer satisfaction metric very

useful in managing and monitoring their businesses.

It is seen as a key performance indicator within business and is often part of a Balanced

Scorecard. In a competitive marketplace where businesses compete for customers,

customer satisfaction is seen as a key differentiator and increasingly has become a key

element of business strategy.

"Within organizations, customer satisfaction ratings can have powerful effects. They

focus employees on the importance of fulfilling customers' expectations. Furthermore,

when these ratings dip, they warn of problems that can affect sales and profitability....

These metrics quantify an important dynamic. When a brand has loyal customers, it gains

positive word-of-mouth marketing, which is both free and highly effective."

Therefore, it is essential for businesses to effectively manage customer satisfaction. To be

able do this, firms need reliable and representative measures of satisfaction.

"In researching satisfaction, firms generally ask customers whether their product or

service has met or exceeded expectations. Thus, expectations are a key factor behind

satisfaction. When customers have high expectations and the reality falls short, they will

be disappointed and will likely rate their experience as less than satisfying. For this

reason, a luxury resort, for example, might receive a lower satisfaction rating than a
2
budget motel—even though its facilities and service would be deemed superior in

'absolute' terms."

The importance of customer satisfaction diminishes when a firm has increased bargaining

power. For example, cell phoneplan providers, such as AT&T and Verizon, participate in

an industry that is an oligopoly, where only a few suppliers of a certain product or service

exist. As such, many cell phone plan contracts have a lot of fine print with provisions that

they would never get away if there were, say, 100 cell phone plan providers, because

customer satisfaction would be far too low, and customers would easily have the option

of leaving for a better contract offer.

There is a substantial body of empirical literature that establishes the benefits of customer

satisfaction for firms.

Purpose

A business L'ORÉAL INDIA carlly is continually seeking feedback to improve customer

satisfaction.

"Customer satisfaction provides a leading indicator of consumer purchase intentions and

loyalty." "Customer satisfaction data are among the most frequently collected indicators

of market perceptions. Their principal use is twofold:"

3
 1. "Within organizations, the collection, analysis and dissemination of these data

send a message about the importance of tending to customers and ensuring that

they have a positive experience with the company's goods and services."

2. "Although sales or market share can indicate how well a firm is performing

currently, satisfaction is perhaps the best indicator of how likely it is that the

firm’s customers will make further purchases in the future. Much research has

focused on the relationship between customer satisfaction and retention. Studies

indicate that the ramifications of satisfaction are most strongly realized at the

extremes."

On a five-point scale, "individuals who rate their satisfaction level as '5' are likely to

become return customers and might even evangelize for the firm. (A second important

metric related to satisfaction is willingness to recommend. This metric is defined as "The

percentage of surveyed customers who indicate that they would recommend a brand to

friends." When a customer is satisfied with a product, he or she might recommend it to

friends, relatives and colleagues. This can be a powerful marketing advantage.)

"Individuals who rate their satisfaction level as '1,' by contrast, are unlikely to return.

Further, they can hurt the firm by making negative comments about it to prospective

customers. Willingness to recommend is a key metric relating to customer satisfaction."

Theoretical Ground

"In literature antecedents of satisfaction are studied from different aspects. The

considerations extend from psychological to physical and from normative to positive

aspects. However, in most of the cases the consideration is focused on two basic

constructs as customers expectations prior to purchase or use of a product and his relative

perception of the performance of that product after using it.

4
Expectations of a customer on a product tell us his anticipated performance for that

product. As it is suggested in the literature, consumers may have various "types" of

expectations when forming opinions about a product's anticipated performance. For

example, four types of expectations are identified by Miller (1977): L'ORÉAL INDIA

carl, expected, minimum tolerable, and desirable. While, Day (1977) indicated among

expectations, the ones that are about the costs, the product nature, the efforts in obtaining

benefits and lastly expectations of social values. Perceived product performance is

considered as an important construct due to its ability to allow making comparisons with

the expectations.

It is considered that customers judge products on a limited set of norms and attributes.

Olshavsky and Miller (1972) and Olson and Dover (1976) designed their researches as to

manipulate actual product performance, and their aim was to find out how perceived

performance ratings were influenced by expectations. These studies took out the

discussions about explaining the differences between expectations and perceived

performance."

The Disconfirmation Model

"The Disconfirmation Model is based on the comparison of customers’ [expectations] and

their [perceived performance] ratings. Specifically, an individual’s expectations are

confirmed when a product performs as expected. It is negatively confirmed when a

product performs more poorly than expected. The disconfirmation is positive when a

product performs over the expectations(Churchill & Suprenant 1982). There are four

constructs to describe the traditional disconfirmation paradigm mentioned as

[3]
expectations, performance, disconfirmation and satisfaction." "Satisfaction is

considered as an outcome of purchase and use, resulting from the buyers’ comparison of

expected rewards and incurred costs of the purchase in relation to the anticipated

5
consequences. In operation, satisfaction is somehow similar to attitude as it can be

evaluated as the sum of satisfactions with some features of product." "In the literature,

cognitive and affective models of satisfaction are also developed and considered as

alternatives(Pfaff, 1977). Churchill and Suprenant in 1982, evaluated various studies in

the literature and formed an overview of Disconfirmation process in the following

figure:"

Customer satisfaction measured

Organizations need to retain existing customers while targeting non-

customers. Measuring customer satisfaction provides an indication of how successful the

organization is at providing products and/or services to the marketplace.

"Customer satisfaction is measured at the individual level, but it is almost always reported

at an aggregate level. It can be, and often is, measured along various dimensions. A hotel,

for example, might ask customers to rate their experience with its front desk and check-in

service, with the room, with the amenities in the room, with the restaurants, and so on.

Additionally, in a holistic sense, the hotel might ask about overall satisfaction 'with your

stay.'"

As research on consumption experiences grows, evidence suggests that consumers

purchase goods and services for a combination of two types of benefits: hedonic and

utilitarian. Hedonic benefits are associated with the sensory and experiential attributes of

the product. Utilitarian benefits of a product are associated with the more instrumental

and functional attributes of the product (Batra and Athola 1990).

Customer satisfaction is an ambiguous and abstract concept and the actual manifestation

of the state of satisfaction will vary from person to person and product/service to

product/service. The state of satisfaction depends on a number of both psychological and

physical variables which correlate with satisfaction behaviors such as return and

6
recommend rate. The level of satisfaction can also vary depending on other options the

customer may have and other products against which the customer can compare the

organization's products.

Work done by Parasuraman, Zeithaml and Berry (Leonard L) between 1985 and 1988

provides the basis for the measurement of customer satisfaction with a service by using

the gap between the customer's expectation of performance and their perceived

experience of performance. This provides the measurer with a satisfaction "gap" which is

objective and quantitative in nature. Work done by Cronin and Taylor propose the

"confirmation/disconfirmation" theory of combining the "gap" described by Parasuraman,

Zeithaml and Berry as two different measures (perception and expectation of

performance) into a single measurement of performance according to expectation.

The usual measures of customer satisfaction involve a survey from software providers

such as Confirmit, Medallia andSatmetrix[8] with a set of statements using a Likert

Technique or scale. The customer is asked to evaluate each statement and in term of their

perception and expectation of performance of the organization being measured. Their

satisfaction is generally measured on a five-point scale.

"Customer satisfaction data can also be collected on a 10-point scale."[1]

"Regardless of the scale used, the objective is to measure customers’ perceived

satisfaction with their experience of a firm’s offerings." It is essential for firms to

effectively manage customer satisfaction. To be able do this, we need accurate

measurement of satisfaction.

7
Good quality measures need to have high satisfaction loadings, good reliability, and low

error variances. In an empirical study comparing commonly used satisfaction measures it

was found that two multi-item semantic differential scales performed best across both

hedonic and utilitarian service consumption contexts. According to studies by Wirtz &

Lee (2003),[11] they identified a six-item 7-point semantic differential scale (for example,

Oliver and Swan 1983), which is a six-item 7-point bipolar scale, that consistently

performed best across both hedonic and utilitarian services. It loaded most highly on

satisfaction, had the highest item reliability, and had by far the lowest error variance

across both studies. In the study, [11]the six items asked respondents’ evaluation of their

most recent experience with ATM services and ice cream restaurant, along seven points

within these six items: ―pleased me to displeased me‖, ―contented with to disgusted

with‖, ―very satisfied with to very dissatisfied with‖, ―did a good job for me to did a poor

job for me‖, ―wise choice to poor choice‖ and ―happy with to unhappy with‖.

A semantic differential (4 items) scale (e.g., Eroglu and Machleit 1990), [12] which is a

four-item 7-point bipolar scale, was the second best performing measure, which was

again consistent across both contexts. In the study, respondents were asked to evaluate

their experience with both products, along seven points within these four items:

―satisfied to dissatisfied‖, ―favorable to unfavorable‖, ―pleasant to unpleasant‖ and ―I like

it very much to I didn’t like it at all‖.

The third best scale was single-item percentage measure, a one-item 7-point bipolar scale

(e.g., Westbrook 1980).[13]Again, the respondents were asked to evaluate their experience

on both ATM services and ice cream restaurants, along seven points within

―delighted to terrible‖.

It seems that dependent on a trade-off between length of the questionnaire and quality of

satisfaction measure, these scales seem to be good options for measuring customer

8
satisfaction in academic and applied studies research alike. All other measures tested

consistently performed worse than the top three measures, and/or their performance

varied significantly across the two service contexts in their study. These results suggest

that more careful pretesting would be prudent should these measures be used.

Finally, all measures captured both affective and cognitive aspects of satisfaction,

independent of their scale anchors. Affective measures capture a consumer’s attitude

(liking/disliking) towards a product, which can result from any product information or

experience. On the other hand, cognitive element is defined as an appraisal or conclusion

on how the product’s performance compared against expectations (or exceeded or fell

short of expectations), was useful (or not useful), fit the situation (or did not fit), exceeded

the requirements of the situation (or did not exceed).

Methodologies

American Customer Satisfaction Index (ACSI) is a scientific standard of customer

satisfaction. Academic research has shown that the national ACSI score is a strong

predictor of Gross Domestic Product (GDP) growth, and an even stronger predictor

of Personal Consumption Expenditure (PCE) growth.[15] On the microeconomic level,

academic studies have shown that ACSI data is related to a firm's financial performance

in terms of return on investment (ROI), sales, long-term firm value (Tobin's q), cash flow,

cash flow volatility, human capital performance, portfolio returns, debt financing, risk,

and consumer spending. Increasing ACSI scores has been shown to predict loyalty, word-

of-mouth recommendations, and purchase behavior. The ACSI measures customer

satisfaction annually for more than 200 companies in 43 industries and 10 economic

sectors. In addition to quarterly reports, the ACSI methodology can be applied to private

sector companies and government agencies in order to improve loyalty and purchase

9
intent.[19] ASCI scores have also been calculated by independent researchers, for example,

for the mobile phones sector, higher education, and electronic mail.

The Kano model is a theory of product development and customer satisfaction developed

in the 1980s by Professor Noriaki Kano that classifies customer preferences into five

categories: Attractive, One-Dimensional, Must-Be, Indifferent, Reverse. The Kano model

offers some insight into the product attributes which are perceived to be important to

customers.

SERVQUAL or RATER is a service-quality framework that has been incorporated into

customer-satisfaction surveys (e.g., the revised Norwegian Customer Satisfaction

Barometer to indicate the gap between customer expectations and experience.

J.D. Power and Associates provides another measure of customer satisfaction, known for

its top-box approach and automotive industry rankings. J.D. Power and Associates'

marketing research consists primarily of consumer surveys and is publicly known for the

value of its product awards.

Other research and consulting firms have customer satisfaction solutions as well. These

include A.T. Kearney's Customer Satisfaction Audit process, which incorporates the

Stages of Excellence framework and which helps define a company’s status against eight

critically identified dimensions.

For B2B customer satisfaction surveys, where there is a small customer base, a high

response rate to the survey is desirable.[25] The American Customer Satisfaction

Index (2012) found that response rates for paper-based surveys were around 10% and the

response rates for e-surveys (web, wap and e-mail) were averaging between 5% and 15%

- which can only provide a straw poll of the customers' opinions.

10
In the European Union member states, many methods for measuring impact and

satisfaction of e-government services are in use, which the eGovMoNet project sought to

compare and harmonize.

These customer satisfaction methodologies have not been independently audited by

the Marketing Accountability Standards Board (MASB) according to MMAP (Marketing

Metric Audit Protocol).

11
 CONSUMER BEHAVIOR

Consumer behavior is the study of when, why, how, where and what people do or do not

buy products. It blends elements from psychology, sociology, social psychology,

anthropology and economics. It attempts to understand the buyer decision making

process, both individually and in groups. It studies characteristics of individual consumers

such as demographics and behavioural variables in an attempt to understand people's

wants. It also tries to assess influences on the consumer from groups such as family,

friends, reference groups, and society in general. Customer behaviour study is based on

consumer buying behaviour, with the customer playing the three distinct roles of user,

payer and buyer. Relationship marketing is an influential asset for customer behaviour

analysis as it has a keen interest in the re-discovery of the true meaning of marketing

through the re-affirmation of the importance of the customer or buyer. A greater

importance is also placed on consumer retention, customer relationship management,

personalisation, customisation and one-to-one marketing. Social functions can be

categorized into social choice and welfare functions. Each method for vote counting is

assumed as a social function but if Arrow’s possibility theorem is used for a social

function, social welfare function is achieved. Some specifications of the social functions

are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and weak

and strong Paretooptimality. No social choice function meets these requirements in an

ordinal scale simultaneously. The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with

the ranks. Marketing provides services in order to satisfy customers. With that in mind,

the productive system is considered from its beginning at the production level, to the end

of the cycle, the consumer (Kioumarsi et al., 2009).

12
Belch and Belch define consumer behavior as 'the process and activities people engage in

when searching for, selecting, purchasing, using, evaluating, and disposing of products

and services so as to satisfy their needs and desires'.

Black box model

ENVIRONMENTAL
BUYER'S BLACK BOX
FACTORS BUYER'S

Marketing Environmental Buyer RESPONSE

Decision Process
Stimuli Stimuli Characteristics

Product

choice
Problem recognition
Brand
Attitudes Information search
Product Economic choice
Motivation Alternative
Price Technical Dealer
Behaviour s evaluation
Place Political choice
Personality Purchase decision
Promotion Cultural Purchase
Lifestyle Post-purchase
timing
behavior
Purchase

amount

The black box model shows the interaction of stimuli, consumer characteristics, decision

process and consumer responses. It can be distinguished between interpersonal stimuli

(between people) or intrapersonal stimuli (within people). [2] The black box model is

related to the black box theory of behaviorism, where the focus is not set on the processes

inside a consumer, but the relation between the stimuli and the response of the consumer.

The marketing stimuli are planned and processed by the companies, whereas the

13
environmental stimulus are given by social factors, based on the economical, political and

cultural circumstances of a society. The buyers black box contains the buyer

characteristics and the decision process, which determines the buyers response.

The black box model considers the buyers response as a result of a conscious, rational

decision process, in which it is assumed that the buyer has recognized the problem.

However, in reality many decisions are not made in awareness of a determined problem

by the consumer.

Information search

Once the consumer has recognised a problem, they search for information on products

and services that can solve that problem. Belch and Belch (2007) explain that consumers

undertake both an internal (memory) and an external search.

Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information search is

behaviour. Behaviour is defined as 'the process by which an individual receives, selects,

organises, and interprets information to create a meaningful picture of the world'

14
The selective behaviour process

Stage Description

Selective exposure consumers select which promotional messages they will

expose themselves to.

Selective attention consumers select which promotional messages they will pay

attention to

Selective comprehension consumer interpret messages in line with their beliefs,

attitudes, motives and experiences

Selective retention consumers remember messages that are more meaningful or

important to them

The implications of this process help develop an effective promotional strategy, and

select which sources of information are more effective for the brand.

15
 INFORMATION EVALUATION

At this time the consumer compares the brands and products that are in their evoked set.

How can the marketing organization increase the likelihood that their brand is part of the

consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the

functional and psychological benefits that they offer. The marketing organization needs to

understand what benefits consumers are seeking and therefore which attributes are most

important in terms of making a decision.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase

decision. Sometimes purchase intention does not result in an actual purchase. The

marketing organization must facilitate the consumer to act on their purchase intention.

The provision of credit or payment terms may encourage purchase, or a sales promotion

such as the opportunity to receive a premium or enter a competition may provide an

incentive to buy now. The relevant internal psychological process that is associated with

purchase decision is integration.

Postpurchase evaluation

The EKB model was further developed by Rice (1993) which suggested there should be a

feedback loop, Foxall (2005) further suggests the importance of the post purchase

evaluation and that the post purchase evaluation is key due to its influences on future

purchase patterns.

16
 BUYING

Buying in has several meanings:

In the securities market it refers to a process by which the buyer of securities,

whose seller fails to deliver the securities contracted for, can 'buy in' the securities

from a third party with the defaulting seller to make good.

In poker it signifies the up-front payment required to participate in a given game

or tournament.

In management and decision making, buy-in (as a verb or noun) signifies the

commitment of interested or affected parties to a decision (often called

stakeholders) to 'buy in' to the decision, that is, to agree to give it support, often by

having been involved in its formulation.

Securities market use

On the English stock exchange, a transaction by which, if a member has sold securities

which he fails to deliver on settling day, or any of the succeeding ten days following the

settlement, the buyer may give instructions to a stock exchange official to "buy in" the

stock required. The official announces the quantity of stock, and the purpose for which he

requires it, and whoever sells the stock must be prepared to deliver it immediately. The

original seller has to pay the difference between the two prices, if the latter is higher than

the original contract price. A similar practice, termed "selling out," prevails when a

purchaser fails to take up his securities.

The practise is not limited to the UK Stock Exchange but is found in various forms on

most stock exchanges. The rules vary according to the local regulations, and the party

which fails to deliver is usually penalised and may even be suspended..

Alternatives to short selling available on the SGX :

1. Borrow the share and proceed to sell a stock.

17
 2. Buy a put warrant
3. Short a CFD.
4. Sell a Single Stock Future (SSF) in the futures market.

Poker and gaming

"Buying in" regarding poker tournaments is the process of entering a poker tournament

that requires an up-front payment. The size of the payment, otherwise known as the "Buy

In", determines the total winning prize pool and also contains a fee, otherwise known as

the rake, that is paid to the house.

For example a 50 person capacity tournament could cost $55 to enter per player. In poker

terms this could equate to $50+5, meaning $50 goes to the prize pool to pay the eventual

winners and $5 (10%) goes to the house for hosting the tournament. In this example the

prize pool would contain $2500 and the house would take a total of $250 (also 10%).

Management

The process of lobbying for support for part of the influential group before suggesting an

idea, arguing a case or submitting a report.

In the sports world, buying in is a significant aspect of players/participants accepting

goals and direction from a coach, leader or program. "Buying in" becomes

synonymous with commitment and dedication. In the Spring of 2007, two film

makers, Tim Breitbach(Dopamine) and Ralph Barhydt, started producing a film

entitled, "Buying In" that explores the social issues of buying in based on the success

of the boys' and girls' high school basketball teams at The Branson School, in Ross,

California, who each won the State Championship in their division in 2007.

MARKET AWARENESS

Market awareness, formerly known as tape reading, is an understanding of the market

nuances and order flow that helps us with the decision making process. At tasty trade, we

18
use market awareness to help us broadly assess the market, while providing a sense of

what to trade and why.

Market awareness begins with an overall macro view of the market with stock index

futures. This means understanding the relative strength and weakness of the /ES, /NQ,

/TF, and /YM. We then may look to the bond, commodity and currency futures to gain an

overall view of the current state of the market. In addition, the VIX or /VX futures will

help gauge the fear in the marketplace. Outside of futures, we believe that an

understanding of liquidity, IV rank, binary events, and price movement are important

metrics to look for in individual stock.

market awareness is the extent to which a brand is recognized by potential customers,

and is correctly associated with a particular product. Expressed usually as a percentage of

the target market, brand awareness is the primary goal ofadvertising in the early months

or years of a product's introduction.

Market awareness is related to the functions of brand identities in consumers’ memory

and can be reflected by how well the consumers can identify the brand under various

conditions. market awareness includes brand recognition and brand recall performance.

Brand recognition refers to the ability of the consumers to correctly differentiate the

brand they previously have been exposed to. This does not necessarily require that the

consumers identify the brand name. Instead, it often means that consumers can respond to

a certain brand after viewing its visual packaging images. Brand recall refers to the ability

of the consumers to correctly generate and retrieve the brand in their memory.

A brand name that is well known to the great majority of households is also called

a household name.

Importance

19
"Awareness, attitudes, and usage (AAU) metrics relate closely to what has been called the

Hierarchy of Effects, an assumption that customers progress through sequential stages

from lack of awareness, through initial purchase of a product, to brand loyalty." In total,

these AAU metrics allow companies to track trends in Customer knowledge and attitudes.

Although the hierarchy of effects is considered as a one-way linear relationship, these

three stages are not ―clear-cut‖. The causal link might be reversed. The usage could cause

the awareness while the attitudes can also influence the awareness. For example, one

owned a Dell wireless mouse and had excellent using experience. Such experience might

determine the one’s favorite brand attitude toward Dell.

market awareness plays a major role in a consumer’s buying decision-making process.

During this process, the category need is stimulated first. For example, you need to do

food shopping. You will only write down the food categories, like chocolate, instead of

brand names on your list. You will scan the packages of chocolate on the shelf and

recognize different brands. Such recognition might be based on the knowledge of an

acquaintance or friend having used the product in the past or constant advertisement. In

this situation, brand awareness does not require brand recall because brand awareness

may occur along with brand recognition. However, in other situations, brand recall is

required. For instance, you are in a hurry and want to grab a bite at a fast-food restaurant.

It is not possible for you to drive around and make a decision. You need to retrieve

different fast-food brands in your memory, choose one and go there directly. In this

situation, constant advertisement is important in consumers’ memory retrieval because

the consumers are willing to go to the first brand that can be recalled.

The eventual goal of most businesses is to make profits and increase sales. Businesses

intend to increase their consumer pool and encourage repeat purchases. Apple is a

brilliant example of how there is a very high recognition of the brand logo and high

20
anticipation of a new product being released by the company. An iPod is the first thing

that pops into our minds when we think of purchasing an mp3 player. iPod is used as a

replaceable noun to describe an mp3 player. Finally, high brand awareness about a

product suggests that the brand is easily recognizable and accepted by the market in a

way that the brand is differentiated from similar products and other competitors. Brand

building also helps in improving brand loyalty.

Measures of market Awareness

Aided Awareness- This type of awareness is generated in a consumer. When asked about

a product category, if the consumer is aided with a list of company names and he

recognizes the company from the given set it is categorized as aided awareness.

Spontaneous awareness --- When asked about a product category, the consumers are

asked to list brands they know without any cues.

Top of the mind Awareness- When the name of the company is automatically

recollected because the consumer very promptly associates the brand with the product

category, it is called a top of the mind awareness of the product. It’s the first brand name

listed by the consumers when asked to name brands they know without any cues.

21
Methodologies

Mokhira discussion in industry and practice about the meaning and value of various brand

awareness metrics. Recently, anempirical study appeared to put this debate to rest by

suggesting that all awareness metrics were systematically related, simply reflecting their

difficulty, in the same way that certain questions are more difficult in academic exams.

Channels of market awareness

There are many ways to generate brand awareness in the consumers. Listed below are

four such channels

Advertising is the activity or profession of producing information for promoting the sale

of commercial products or services.[6] Advertising is used through various media to

generate brand awareness within consumers. They can be aired as radio ads, television

commercials, internet etc.

Guerrilla Marketing creative campaigns allow every small firm to compete with bigger

firms by carving out narrow but profitable niches. Nowadays, big firms also use guerrilla

marketing to catch consumers’ attention at low cost. These tactics include

(1) extreme specialization,

(2) aiming every effort at favourably impressing the customers,

(3) providing service that goes beyond the customers' expectations,

(4) fast response time,

(5) quick turnaround of jobs, and

(6) working hours that match the customer's requirements. The term 'Guerrilla Marketing'

is a registered trademark of author Jay Levinson who popularized it through his several

'Guerrilla' books.

22
It is an out of the ordinary way of marketing a product. Low-cost channels can be utilised

to generate a high level of interest in the product and create brand awareness. Utilisation

of personal contacts is the most popular way of guerrilla marketing. Product Plabanking is

an advertising technique used by companies to subtly promote their products through a

non-traditional advertising technique, usually through appearances in film, television, or

other media.

A formal agreement between the product manufacturer and a media company can be

generated through which the media company also receives an economic benefit, usually

in the form of a fee. The media company in return will showcase the product through any

of the various means they have available to make the brand stand out. Some people,

however, consider product plabanking to be deceptive and unethical.

For example, Coca-Cola could pay a given fee to have the title character drinking a Coke,

instead of a Pepsi beverage, or Toyota might pay to have one of the characters drive their

newest automobile. Through product plabanking, companies hope that moviegoers will

take note of the products used by the characters, and therefore think more strongly about

using the products themselves. Social Media is the most contemporary and cost-effective

way of creating a brand awareness with an online audience. Many companies use social

media like Facebook, YouTube, blogs etc.

23
Challenges

Maintaining market awareness

Maintaining market awareness is a very important aspect in marketing a company. It is

imperative and very helpful to analyze the response your audience has towards the change

in packaging, advertising, products and messages sent across through various means.

Working towards creating an image in the minds of the consumers is not the last thing a

company should aim to do. Inviting consumer feedback and maintaining a constant

presence in the market is equally essential. Availability of the product to the consumer is

one such way of doing this. The consumer should not have to come looking for you when

he is in need of making a second purchase of the product, dealerships and outlets at

convenient places should make the consumer think of the brand as the most convenient

and best solution to their needs of fulfillments.

While brand awareness scores tend to be quite stable at aggregate level, individual

consumers show considerable propensity to change their responses to aided recall based

brand awareness measures. For unaided recall based brand awareness measures,

consumers’ brand awareness remain relatively stable. For top of mind recall measures,

consumers give the same answer in two interviews typically only 50% the time. Similar

low levels of consistency in response have been recorded for other cues to elicit brand

name responses.

24
 CONSUMER AWARENESS

Consumer awareness is the study of when, why, how, where and what people do or do

not buy products. It blends elements from psychology, sociology, social psychology,

anthropology and economics. It attempts to understand the buyer decision making

process, both individually and in groups. It studies characteristics of individual consumers

such as demographics and behavioural variables in an attempt to understand people's

wants. It also tries to assess influences on the consumer from groups such as family,

friends, reference groups, and society in general. Customer behaviour study is based on

consumer buying behaviour, with the customer playing the three distinct roles of user,

payer and buyer. Relationship marketing is an influential asset for customer behaviour

analysis as it has a keen interest in the re-discovery of the true meaning of marketing

through the re-affirmation of the importance of the customer or buyer. A greater

importance is also placed on consumer retention, customer relationship management,

personalisation, customisation and one-to-one marketing. Social functions can be

categorized into social choice and welfare functions. Each method for vote counting is

assumed as a social function but if Arrow’s possibility theorem is used for a social

function, social welfare function is achieved. Some specifications of the social functions

are decisiveness, neutrality, anonymity, monotonocity, unanimity, homogeneity and weak

and strong Paretooptimality. No social choice function meets these requirements in an

ordinal scale simultaneously. The most important characteristic of a social function is

identification of the interactive effect of alternatives and creating a logical relation with

the ranks. Marketing provides services in order to satisfy customers. With that in mind,

the productive system is considered from its beginning at the production level, to the end

of the cycle, the consumer (Kioumarsi et al., 2009).

25
Belch and Belch define consumer awareness as 'the process and activities people engage

in when searching for, selecting, purchasing, using, evaluating, and disposing of products

and services so as to satisfy their needs and desires'.

Black box model

ENVIRONMENTAL
BUYER'S BLACK BOX
FACTORS BUYER'S

Marketing Environmental Buyer RESPONSE

Decision Process
Stimuli Stimuli Characteristics

Product

choice
Problem recognition
Brand
Attitudes Information search
Product Economic choice
Motivation Alternative
Price Technical Dealer
Perceptions evaluation
Place Political choice
Personality Purchase decision
Promotion Cultural Purchase
Lifestyle Post-purchase
timing
awareness
Purchase

amount

The black box model shows the interaction of stimuli, consumer characteristics, decision

process and consumer responses.[1] It can be distinguished between interpersonal stimuli

(between people) or intrapersonal stimuli (within people). [2] The black box model is

related to the black box theory of awareness ism, where the focus is not set on the

processes inside a consumer, but the relation between the stimuli and the response of the

consumer. The marketing stimuli are planned and processed by the companies, whereas

26
the environmental stimulus are given by social factors, based on the economical, political

and cultural circumstances of a society. The buyers black box contains the buyer

characteristics and the decision process, which determines the buyers response.

The black box model considers the buyers response as a result of a conscious, rational

decision process, in which it is assumed that the buyer has recognized the problem.

However, in reality many decisions are not made in awareness of a determined problem

by the consumer.

Information search

Once the consumer has recognised a problem, they search for information on products

and services that can solve that problem. Belch and Belch (2007) explain that consumers

undertake both an internal (memory) and an external search.

Sources of information include:

Personal sources

Commercial sources

Public sources

Personal experience

The relevant internal psychological process that is associated with information search is

perception. Perception is defined as 'the process by which an individual receives, selects,

organises, and interprets information to create a meaningful picture of the world'

27
The selective perception process

Stage Description

Selective exposure consumers select which promotional messages they will

expose themselves to.

Selective attention consumers select which promotional messages they will pay

attention to

Selective comprehension consumer interpret messages in line with their beliefs,

attitudes, motives and experiences

Selective retention consumers remember messages that are more meaningful or

important to them

The implications of this process help develop an effective promotional strategy, and

select which sources of information are more effective for the brand.

28
 INFORMATION EVALUATION

At this time the consumer compares the brands and products that are in their evoked set.

How can the marketing organization increase the likelihood that their brand is part of the

consumer's evoked (consideration) set? Consumers evaluate alternatives in terms of the

functional and psychological benefits that they offer. The marketing organization needs to

understand what benefits consumers are seeking and therefore which attributes are most

important in terms of making a decision.

Purchase decision

Once the alternatives have been evaluated, the consumer is ready to make a purchase

decision. Sometimes purchase intention does not result in an actual purchase. The

marketing organization must facilitate the consumer to act on their purchase intention.

The provision of credit or payment terms may encourage purchase, or a sales promotion

such as the opportunity to receive a premium or enter a competition may provide an

incentive to buy now. The relevant internal psychological process that is associated with

purchase decision is integration.

Postpurchase evaluation

The EKB model was further developed by Rice (1993) which suggested there should be a

feedback loop, Foxall (2005) further suggests the importance of the post purchase

evaluation and that the post purchase evaluation is key due to its influences on future

purchase patterns.

29
BUYING

Buying in has several meanings:

In the securities market it refers to a process by which the buyer of securities,

whose seller fails to deliver the securities contracted for, can 'buy in' the securities

from a third party with the defaulting seller to make good.

In poker it signifies the up-front payment required to participate in a given game

or tournament.

In management and decision making, buy-in (as a verb or noun) signifies the

commitment of interested or affected parties to a decision (often called

stakeholders) to 'buy in' to the decision, that is, to agree to give it support, often by

having been involved in its formulation.

Securities market use

On the English stock exchange, a transaction by which, if a member has sold securities

which he fails to deliver on settling day, or any of the succeeding ten days following the

settlement, the buyer may give instructions to a stock exchange official to "buy in" the

stock required. The official announces the quantity of stock, and the purpose for which he

requires it, and whoever sells the stock must be prepared to deliver it immediately. The

original seller has to pay the difference between the two prices, if the latter is higher than

the original contract price. A similar practice, termed "selling out," prevails when a

purchaser fails to take up his securities.

The practise is not limited to the UK Stock Exchange but is found in various forms on

most stock exchanges. The rules vary according to the local regulations, and the party

which fails to deliver is usually penalised and may even be suspended..

Alternatives to short selling available on the SGX :

30
 5. Borrow the share and proceed to sell a stock.
6. Buy a put warrant
7. Short a CFD.
8. Sell a Single Stock Future (SSF) in the futures market.

Poker and gaming

"Buying in" regarding poker tournaments is the process of entering a poker tournament

that requires an up-front payment. The size of the payment, otherwise known as the "Buy

In", determines the total winning prize pool and also contains a fee, otherwise known as

the rake, that is paid to the house.

For example a 50 person capacity tournament could cost $55 to enter per player. In poker

terms this could equate to $50+5, meaning $50 goes to the prize pool to pay the eventual

winners and $5 (10%) goes to the house for hosting the tournament. In this example the

prize pool would contain $2500 and the house would take a total of $250 (also 10%).

Management

The process of lobbying for support for part of the influential group before suggesting an

idea, arguing a case or submitting a report.

In the sports world, buying in is a significant aspect of players/participants accepting

goals and direction from a coach, leader or program. "Buying in" becomes synonymous

with commitment and dedication. In the Spring of 2007, two film makers, Tim

Breitbach(Dopamine) and Ralph Barhydt, started producing a film entitled, "Buying In"

that explores the social issues of buying in based on the success of the boys' and girls'

high school basketball teams at The Branson School, in Ross, California, who each won

the State Championship in their division in 2007.

Customer relationship

31
Customer relationship is a broadly recognized, widely-implemented strategy for

managing and nurturing a company’s interactions with customers and sales prospects. It

involves using technology to organize, automate, and synchronize business processes—

principally sales related activities, but also those for marketing, customer service, and

technical support. The overall goals are to find, attract, and win new customers, nurture

and retain those the company already has, entice former customers back into the fold, and

reduce the costs of marketing and customer service.

According to Forrester Research, spending on customer relationship management is

expected to top $11 billion annually by 2010, as enterprises seek to grow top-line

revenues, improve the customer experience, and boost the productivity of customer-

facing staff.

Once simply a label for a category of software tools, customer relationship management

has matured and broadened as a concept over the years; today, it generally denotes a

company-wide business strategy embracing all customer-facing departments and even

beyond. When an implementation is effective, people, processes, and technology work in

synergy to develop and strengthen relationships, increase profitability, and reduce

operational costs.

Benefits

Customer relationship management tools have been shown to help companies attain these

objectives:

Streamlined sales and marketing processes

Higher sales productivity

Added cross-selling and up-selling opportunities

Improved customer service, loyalty, and retention

32
 Increased call center efficiency

Higher close rates

Better customer profiling and targeting

Reduced expenses

Increased market share

Higher overall profitability

Marginal costing

Challenges

Tools and workflows can be complex to implement, especially for large enterprises.

While some companies report great success, initiatives have also been known to fail—

mainly owing to poor planning, a mismatch between software tools and company needs,

roadblocks to collaboration between departments, and a lack of workforce buy-in and

adoption.

Previously these tools were generally limited to contact management: monitoring and

recording interactions and communications with customers. Software solutions then

expanded to embrace deal tracking and the management of accounts, territories,

opportunities, and—at the managerial level—the sales pipeline itself. Next came the

advent of tools for other customer-facing business functions, as described below.

Customer relationship management technology has been, and still is, offered as on-

premises software that companies purchase and run on their own IT infrastructure.

Vendors include: Oracle Corporation, SAP AG, and Amdocs. Perhaps the most notable

trend has been the growth of tools delivered via the Web, also known as cloud computing

and software as a service (SaaS). In contrast with conventional on-premises software,

cloud-computing applications are sold by subscription, accessed via a secure Internet

connection, and displayed on a Web browser. Companies don’t incur the initial capital

33
expense of purchasing software; neither must they buy and maintain IT hardware to run it

on. In 2009, SaaS represented approximately 20% of all customer relationship

management spending, and continues its trajectory of outselling on-premises software by

a ratio of 3-to-1.

Sales Force Automation

As its name implies, a sales force automation (SFA) system provides an array of

capabilities to streamline all phases of the sales process, minimizing the time that reps

need to spend on manual data entry and administration. This allows them to successfully

pursue more customers in a shorter amount of time than would otherwise be possible. At

the heart of SFA is a contact management system for tracking and recording every stage

in the sales process for each prospective customer, from initial contact to final

disposition. Many SFA applications also include features for opportunity management,

territory management, sales forecasting and pipeline, workflow automation, quote

generation, and product knowledge. Newly-emerged priorities are modules for Web 2.0 e-

commerce and pricing management.

Marketing

Systems for marketing (also known as marketing automation) help the enterprise identify

and target its best customers and generate qualified leads for the sales team. [4] A key

marketing capability is managing and measuring multichannel campaigns, including

email, search, social media, and direct mail. Metrics monitored include clicks, responses,

leads, deals, and revenue. Marketing automation also encompasses capabilities for

managing customer loyalty, lists, collateral, and internal marketing resources.

34
As marketing departments are increasingly obliged to demonstrate revenue impact,

today’s systems typically include performance management features for measuring the

ROI of campaigns.

Customer Service and Support

Recognizing that customer service is an important differentiator, organizations are

increasingly turning to technology platforms to help them improve their customers’

experience while increasing efficiency and keeping a lid on costs. [5] Even so, a 2009 study

revealed that only 39% of corporate executives believe their employees have the right

tools and authority to solve customer problems.―.

The core for customer service has been and still is comprehensive call center

management, including such features as intelligent call routing, computer telephone

integration (CTI), and escalation capabilities. More recently, e-service capabilities—Web

self-service, knowledge management, email response management, Web chat,

collaborative browsing and virtual assistants—are gaining in importance. In fact, today’s

profusion of customer service channels has prompted many companies to deploy

integrated support applications that deliver knowledge-enabled solutions across all of

them.

Another key trend is the increasing popularity of SaaS platforms for customer service,

owing to their rapid deployment, low initial cost, and now-established efficacy for large

and complex contact centers.

Analytics

Relevant analytics capabilities are often interwoven into applications for sales, marketing,

and customer service. These features can be complemented and augmented with links to

separate, purpose-built applications for analytics and business intelligence.

35
Sales analytics let companies monitor and understand customer actions and preferences,

through sales forecasting, data quality management, and dashboards that graphically

display key performance indicators (KPIs).

Marketing applications generally come with predictive analytics to improve customer

segmentation and targeting, and features for measuring the effectiveness of online,

offline, and search marketing campaign Web analytics have evolved significantly from

their starting point of merely tracking mouse clicks on Web sites. By evaluating customer

―buy signals,‖ marketers can see which prospects are most likely to transact and also

identify those who are bogged down in a sales process and need assistance. Marketing

and finance personnel also use analytics to assess the value of multi-faceted programs as a

whole.

Customer service analytics are increasing in popularity as companies demand greater

visibility into the performance of call centers and other support channels, in order to

correct problems before they affect customer satisfaction levels. Support-focused

applications typically include dashboards similar to those for sales, plus capabilities to

measure and analyze response times, service quality, agent performance, and the

frequency of various customer issues.

Integrated/Collaborative

Departments within enterprises—especially large enterprises—tend to function in their

own little worlds. Traditionally, inter-departmental interaction and collaboration have

been infrequent and rivalries not uncommon.

More recently, the development and adoption of the tools and services has fostered

greater fluidity and cooperation among sales, customer service, and marketing. This finds

expression in the concept of collaborative customer relationship management, which uses

technology to build bridges between departments. The objective is sharing and harnessing
36
information from all quarters to improve the quality of customer service, and increase

customer satisfaction and loyalty as a result.

For example, feedback from a technical support center can enlighten marketers about

specific services and product features customers are asking for. Similarly, demand

generation strategies need to marry marketing programs with structured sales processes—

that is, campaign-engendered leads must be quickly and efficiently funneled to sales.

Reps, in their turn, want to be able to pursue these opportunities without the time-wasting

burden of re-entering records and contact data into a separate SFA system. Conversely,

lack of integration can have negative consequences: If a sales force automation or

customer relationship management system isn’t adopted and integrated among all

departments, several sources might contact the same customers for an identical purpose.

Owing to these and related factors, many of the top-rated and most popular products

come as integrated suites.

Despite all this, many companies are still not fully leveraging these tools and services to

align marketing, sales, and service to best serve the enterprise and its customers. Often,

implementations are fragmented; isolated initiatives by individual departments to address

their own needs. Systems that start disunited usually stay that way: Siloed thinking and

decision processes frequently lead to separate and incompatible systems, an incomplete

customer view, and dysfunctional processes.

Small Business

Basic customer management can be accomplished by a contact management system, an

integrated solution that lets organizations and individuals efficiently track and record

customer and supplier interactions, including emails, documents, jobs, faxes, scheduling,

and more.

37
This kind of solution is gaining traction with even very small businesses, thanks to the

ease and time savings of handling customer contact through a centralized application

rather than several different pieces of software, each with its own data collection system.

In contrast with contact managers, bona fide customer relationship management tools

usually focus on accounts rather than individual contacts. They also generally include

opportunity management for tracking sales pipelines plus added functionality for

marketing and customer service.

As with larger enterprises, small businesses are finding value in online management

solutions, especially for mobile and telecommuting workers.

Social Media

Social media sites like Twitter and Facebook are greatly amplifying the customer voice in

the marketplace, and are predicted to have profound and far-reaching effects on the ways

companies manage their customer relationships. [9] This is because customers are using

these social media sites to share opinions and experiences on companies, products, and

services. As social media isn’t moderated or censored, individuals can say anything they

want about a company or brand, whether pro or con.

Increasingly, companies are looking to gain access to these conversations and take part in

the dialogue. More than a few systems are now integrating to social networking sites.

Social media promoters cite a number of business advantages, such as using online

communities as a source of high-quality leads and a vehicle for crowd sourcing solutions

to customer-support problems. Companies can also leverage customers’ stated habits and

preferences to personalize and even ―hyper-target‖ their sales and marketing

communications.

38
Some analysts take the view that business-to-business marketers should proceed

cautiously when weaving social media into their business processes. These observers

recommend careful market research to determine if and where the phenomenon can

provide measurable benefits for customer interactions, sales, and support.

Adoption Issues

Historically, the landscape is littered with instances of low adoption rates. In 2003, a

Gartner report estimated that more than $1 billion had been spent on software that wasn’t

being used. A contemporaneous AMR Research study found that of 80 large customers

surveyed, 47% had difficulty with end-user adoption, leading to abandoned projects or

unused software modules.

More recent research indicates that the problem,while perhaps less severe, is a long way

from being solved. According to a CSO Insights less than 40

EVALUATION OF CUSTOMER RELATIONSHIP MANAGEMENT

Customer Relationship Management (CRM) is to create a competitive advantage by being

the best at understanding, communicating, elivering, and developing existing customer

relationships, in addition to creating and keeping new customers. It has emerged as one of

the largest management buzzword. Popularised by the business press and marketed by the

aggressive CRM vendors as a panacea for all the ills facing the firms and managers, it

means different things to different people. CRM, for some, means one to one marketing

while for others a call centre. Some call database marketing as CRM. There are many

others who refer to technology solutions as CRM. If so, what is CRM?

39
Merchants and traders have been practicing customer relationship for centuries. Their

business was built on trust. They could customize the products and all aspects of delivery

and payment to suit the requirements of their customers. They paid personal attention to

their customers, knew details regarding their customers tastes and preferences, and had a

personal rapport with most of them. In many cases, the interaction transcended the

commercial transaction and involved social interactions. Even today, this kind of a

relationship exists between customers and retailers, craftsmen, artisans – essentially in

markets that are traditional, small and classified as pre-industries markets.

These relationship oriented practices have changed due to industrial revolution..

Businesses adopted mass production, mass communication and mass distribution to

achieve economics of scale. Manufactures started focusing on manufacturing and

efficient operations to cut costs. Intermediaries like distributors, wholesalers and retailers

took on the responsibilities of warehousing, transportation, distribution and sale to final

customers. This resulted in greater efficiencies and lower costs to manufacturers but

brought in many layers between them and the customers. The resulting gap reduced direct

contacts and had a negative impact on their elationships.

The post-industrial era saw the re-emergence of relationship practices. Marketing

academicians.

(a) Rapid advances in technology,

(b) Intensive competition in most markets,

(c) Growing importance of the service sector, and

(d) Adoption of total quality management programs

40
BENEFITS OF CR

Customers are Profitable over a period of time

Studies by the US-based Bain and Company have shown that a customer becomes more

profitable with time because the initial acquisition cost exceeds gross margin while the

retention costs are much lower. When an organization retains the customer, it gets a larger

share of the customers wallet at a higher profit-one percent increase in sale to existing

customer increase profits by 17 per cent while the same amount of sale to new customer

increased profit by only 3 per cent. This huge different is explained by the fact that for

most companies the cost of acquiring the customer is very high. It costs six to eight times

more to sell to a new customer than to sell to an existing one. The same study also

highlighted that a company can boost its profit up 85 per cent by increasing its annual

customer retention by only 5 per cent.

Customer Experience Focus

41
Marketing

Interactions

Sales

Interactions

Service

Interactions

Support

Interactions

Customer

Differential

Customer

Satisfaction

Loyalty,

and

Value

Similarly, studies have shown that the probability of selling a product to a prospect is 15

per cent while it is 50 per cent to a existing customer. Thus, the time, the effort and the

costs of selling are much lower for an existing customer.

42
COMPANY PROFILE

43
 L'ORÉAL INDIA
L’ORÉAL COMPANY PROFILE

L’Oréal Company Profile, Wiki, Owner, Net Worth, Products, Logo, Brands, Cosmetics,
Founder and more

L’Oréal is a company of Cosmetics. The company headquarter is in Paris. It is a leading

company in the world in beauty and pioneering the world of beauty technology. There are
36 international brands are divided into four unique Divisions: Luxe, Consumer Products,
Active Cosmetics, and Professional Products.

The international brands include Kiehl’s, Lancôme, Giorgio Armani Beauty, Yves Saint
Laurent Beauté, Ralph Lauren, Clarisonic, Maybelline New York, Essie, Kérastase, IT
Cosmetics, Prada Beauty, Biotherm, Shu Uemura, Viktor&Rolf, Maison Martin Margiela,
Urban Decay, Redken, Vichy, La Roche-Posay, Diesel, Garnier, L’Oréal Paris, and more.

Points Information
Company Name L’Oréal
Date of Establishment 1909
Establishment Place Paris, France
Founder Eugène Paul Louis Schueller
Registered Address L’Oréal India Pvt Ltd, A-Wing,
8th Floor, Marathon Futurex, N.M. Joshi Marg,
Lower Parel (E) MuBBAi 400013
Net Worth €29.87 billion (2019)
Email [email protected]
Telephone no. 01 57 77 00 00
Company Status Active
Website www.loreal.com
Establishment
L’Oréal established in 1909 by Eugène Paul Louis Schueller. L’Oréal has devoted itself
solely to one business which is beauty. They want to bring beauty to all people. L’Oréal
offers a wide range of beauty products and present in 150 countries.

44
Brands
L’Oréal Paris
The world’s leading cosmetics brand, L’Oréal Paris makes the best of luxury beauty,
accessible on all continents. L’Oréal Paris presents a complete range of highly advanced
beauty products with clinically-proven efficacy and safety: in five categories: makeup,
skincare, haircare, hair color and men’s grooming.

Garnier
Garnier is at the forefront of formulating natural & naturally inspired products, a legacy
which began when Garnier patented the first-ever plant-based hair lotion back in 1904.
Garnier aims to go further and commit to Green Beauty, an end-to-end approach to
sustainability.

Maybelline New York

Maybelline New York is the number one cosmetic brand in the world, available in over
120 countries. By combining technologically advanced formulations with on-trend
expertise and New York edge, Maybelline New York’s mission is to offer innovative,
accessible and effortless cosmetics for every woman.

NYX Professional Makeup

The NYX PMU professional writes new rules and leaves their mark on the city. Self
taught and self made, they are empowered innovators who express their creativity through
the media they own.

Stylenanda
Stylenanda is a K-beauty and fashion love brand of Asian Gen Z & Millennials around
the world via well-established O2O platforms. Established in 2004. The company first
started-off as a 1st generation fashion online.com in South Korea then launched its
makeup brand 3CE in 2009 to complete the Nanda girl’s look.

45
REVIEW OF

LITERATURE

46
 REVIEW OF LITERATURE
Customer Satisfaction

Satisfaction has been broadly defined by Vavra, T.G. (1997) as a satisfactory post-

purchase experience with a product or service given an existing purchase expectation.

Howard and Sheth (1969)

According to Westbrook and Reilly (1983) define satisfaction as, ―The buyer’s

cognitive state of being adequately or inadequately rewarded for the sacrifices he has

undergone‖ (p.145). 6, customer satisfaction is ―an emotional response to the

experiences provided by, associated with particular Customer Satisfaction Satisfaction

has been broadly defined by Vavra, T.G. (1997) as a satisfactory post-purchase

experience with a product or service given an existing purchase expectation. Howard

and Sheth (1969)

According to Westbrook and Reilly (1983) define satisfaction as, ―The buyer’s

cognitive state of being adequately or inadequately rewarded for the sacrifices he has

undergone‖

(p.145). 6, customer satisfaction is ―an emotional response to the experiences

provided by, associated with particular purchase expectations with perceptions of

performance during and after the consumption experience.13 Oliver (1981)14 defines

customer satisfaction as a customer’s emotional response to the use of a product or

service. Anton (1996)15 offers more elaboration: ―customer satisfaction as a state of

mind in which the customer’s needs, wants and expectations throughout the product

or service life have been met or exceeded, resulting in subsequent repurchase and

loyalty‖. Merchant Account Glossary points out that, ―Customer satisfaction is an

ambiguous and abstract concept and the actual manifestation of the state of

47
satisfaction will very from person to person and produce/service to

produce/service ‖16Schiffman and Kanuk (2004) 17 Woodruff and Gardian (1996)

defines customer satisfaction as ―The individual’s perception of the performance of

the product or service in relation to his or her expectations‖.

According to Hung (1977), ―…. satisfaction is a kind of stepping away from an

experience and evaluating it … One could have a pleasurable experience that caused

dissatisfaction because even though it was pleasurable, it wasn’t as pleasurable as it

was supposed to be. So satisfaction / dissatisfaction isn’t an emotion, it’s the

evaluation of the emotion‖. define ―Satisfaction, then, is the evaluation or feeling that

results from the disconfirmation process. It is not the comparison itself (i.e., the

disconfirmation process), but it is the customer’s response to the comparison.

Satisfaction has an emotional component.‖

48
OBJECTIVES OF THE STUDY

49
 OBJECTIVES OF THE STUDY
An objective is the most important part of a research .The objective is the bull’s

eye, which a researcher has to hit. The objective determines the path on which a

researcher has to walk on, and help him/her by not deveining from the path.

To analyse brand loyalty of customers towards the company’s products range.

Analyse consumer satisfaction for after sales service provided by L'ORÉAL

INDIA.

Analyse the Consumer behaviour of among L'ORÉAL INDIA .

To analyze the awareness of customer of L'ORÉAL INDIA

50
 SCOPE OF STUDY

The scope formulation is the first step to a successful Research process. Project

undertaken the problem of analyzing the consumer satisfaction with special reference to

L'ORÉAL INDIA in lucknow

IMPORTANCE AND USE OF THE STUDY

To keep things in mind that as the ever changing competitive business environment. New

thoughts and ideas should pour into its, Research & Development to innovate its existing

products which should be beyond competitors comprehension.

This study enables the user with answer to formulate an effective marketing mix strategy

with a broader prospective to tap areas where it did not feel the need earlier, hence the

decision of whether to penetrate this section or not can be found out at the end of the data

analysis.

It also gives an idea of the potential of our business in the future & the fluctuation in

prices from time to time & from product to product.

Special reference is made to the improvement of ability of product in terms of

packaging& product innovations & advertisement always means to cut down competitors.

51
RESEARCH METHODOLOGY

52
 RESEARCH METHODOLOGY

INTRODUCTION

This chapter aims to understand the research methodology establishing a framework of

evaluation and revaluation of primary and secondary research. The techniques and

concepts used during primary research in order to arrive at findings; which are also dealt

with and lead to a logical deduction towards the analysis and results

RESEARCH DESIGN

The research design applied here was exploratory research

Exploratory Research is one in we don’t know about the problem, we have to find about

the problem and then work on solving the problem. Whereas in case of descriptive

research, we know the problem, we just have to find the solution to the problem.

Generally descriptive research design is applied after exploratory research design.

Here after doing the secondary research, we found the general perception about the retail

baking but then in second phase we tried to figure out where the difference lies and on

what basis the banks differ from each other

53
RESEARCH TOOL

Research tool

The purpose is to first conduct a intensive secondary research to understand the full

impact and implication of the industry, to review and critique the industry norms and

reports, on which certain issues shall be selected, which remain unanswered , this shall be

further taken up in the next stage of secondary research. This stage shall help to restrict

and select only the important question and issue, which inhabit growth and segmentation

in the industry.

DATA COLLECTION:

Both primary and secondary data have been collected very vigorously

Secondary data: it is collected by the study of various reports. The reports studied under

secondary data. Primary Data was taken with questionnaire

THE RESEARCH DESIGN

The research design used in the project is exploratory design. The investigation is

carried upon the customers in Lucknow city. The reason for choosing this design is to get

responses from the customers so that their buying behaviour about the products of the

company and their loyalty could be predicted.

THE DATA SOURCE

The data has been taken from two sources

 Primary data source

The primary data source has been collected through questionnaire by personally

interviewing each respondent on a number of queries structured in a questionnaire.

 Secondary data source

Secondary data was collected from following sources

54
Prior research reports

Websites

Books

Newspaper

Personal consultation
THE AREA OF WORK

The field work is conducted in the Lucknow city in various Places like

Mall, Showroom and retailers situated in different location all over the city.

THE SAMPLE SIZE

The sample size consists of 100 units out of which the most logical and

non biased response are selected thus the sample size is taken out to be 100 units.

55
 DATA ANALYSIS

AND INTERPRETATION

56
 DATA ANALYSIS

1. Do you like the idea of purchasing L'ORÉAL INDIA products?

Yes 87

No 13

INTERPRETATION

87% respondent said that they have idea of purchasing L'ORÉAL INDIA products but

13% are not

57
2. Have you ever purchase product of L'ORÉAL INDIA ?

Yes 77

No 23

INTERPRETATION

77% respondent said that they have ever purchase product of L'ORÉAL INDIA but 23%

are not

58
3. What helps you to decide which product of L'ORÉAL INDIA you purchase ?

TV Advertisement 23

Personal recommendation 36

Special offer 11

Radio advertising 17

News paper 7

Word of mouth 6

INTERPRETATION

23% respondent said that they decide to purchase the product of L'ORÉAL INDIA by TV

advertisement, 36 personal recommendation, 11% special offer, 17% radio advertising,

7% from News paper and 6% word of mouth.

59
4. How frequently you see advertisement of L'ORÉAL INDIA product ?

Weekly 27

Monthly 37

daily 27

None 19

INTERPRETATION

25% respondent said that they have see advertisement of L'ORÉAL INDIA product

weekly, 33% monthly, 25% daily, but 17% none.

60
5. For which one of the following purpose you visit in your product ?

Purchasing brand goods 57

Purchasing local goods 23

Only gathering information 11

Others 9

INTERPRETATION

57% respondent said that they have purpose to visit product purchasing brand goods, 23%

purchasing local goods, 11% only gathering information and 9% others.

61
6. What according to you are attractive features that buy L'ORÉAL INDIA product ?

Quality 32

Economy 49

look wise 19

INTERPRETATION

32% respondent said that they have attractive features that buy L'ORÉAL INDIA product

Quality, 49% Economy, 19% Lookwise.

62
7 Are you satisfy with L'ORÉAL INDIA Products?

Yes 91

No 9

INTERPRETATION

91% respondent said that they satisfied buy 9% no.

63
8. Do according to you L'ORÉAL INDIA product have changed the way the Consumer

behavior towards L'ORÉAL INDIA product ?

Yes 71

No 29

INTERPRETATION

71% respondent said that L'ORÉAL INDIA product have changed the way the Consumer

behavior towards L'ORÉAL INDIA product Yes but 29% said no.

64
9. Do you suggest L'ORÉAL INDIA products to others

Yes 89

No 11

INTERPRETATION

89% respondent said that they suggest L'ORÉAL INDIA products to others yes but 11

said no.

65
10. How will you rate your present L'ORÉAL INDIA product performance?

Poor 7

Satisfactory 23

Fair 27

Good 21

Very good 13

Excellent 9

INTERPRETATION

7% respondent said that they rate your present L'ORÉAL INDIA product performance

poor, 23% satisfactory, 27% fair, 21% good, 13% very good, 9% excellent.

66
FINDINGS

67
 FINDINGS

87% respondent said that they have idea of purchasing L'ORÉAL INDIA products

but 13% are not

77% respondent said that they have ever purchase product of L'ORÉAL INDIA

but 23% are not

23% respondent said that they decide to purchase the product of L'ORÉAL INDIA

by TV advertisement, 36 personal recommendation, 11% special offer, 17% radio

advertising, 7% from News paper and 6% word of mouth.

25% respondent said that they have see advertisement of L'ORÉAL INDIA

product weekly, 33% monthly, 25% daily, but 17% none.

57% respondent said that they have purpose to visit product purchasing brand

goods, 23% purchasing local goods, 11% only gathering information and 9%

others.

32% respondent said that they have attractive features that buy L'ORÉAL INDIA

product Quality, 49% Economy, 19% Lookwise.

91% respondent said that they satisfied buy 9% no.

71% respondent said that L'ORÉAL INDIA product have changed the way the

Consumer behavior towards L'ORÉAL INDIA product Yes but 29% said no.

89% respondent said that they suggest L'ORÉAL INDIA products to others yes

but 11 said no.

7% respondent said that they rate your present L'ORÉAL INDIA product

performance poor, 23% satisfactory, 27% fair, 21% good, 13% very good, 9%

excellent.

68
CONCLUSION

69
 CONCLUSION

The report comes to the following conclusion

 The customers of L'ORÉAL INDIA are brand loyal with only a small percent want to

shift over to other brands. Trying of other brands by customers is mainly because the

customer wants to try something new.

 The performance of L'ORÉAL INDIA is fair in comparison to other pro brands.

 Economy is the basic feature influencing to built brand Image.

 The competition of L'ORÉAL INDIA is majorly Honda .

 Due to high brand loyalty the customers of L'ORÉAL INDIA recommend its product

to others.

 The customers are satisfied with the product range of L'ORÉAL INDIA product.

70
LIMITATIONS

71
 LIMITATIONS

Though, best efforts have been made to make the study fair, transparent

and error free. But there might be some inevitable and inherent limitations. Though

outright measure are undertaken to make the report most accurate.

The limitation of the survey are narrated below:

 The project is valid for Lucknow city only. 

 It was not possible to cover each and every respondent due to time constrains.

 There may be some biased response form the respondents

 Some respondents did not provide the full data.

 Unwillingness on the part of the customers to disclose the information as per the

questionnaire. 

 The decisiveness on the part of the customers regarding some question hence

difficulty faced in recording and analyzing the data.

72
 SUGGESTIONS
AND
RECOMMENDATION

73
 SUGGESTIONS AND RECOMMENDATION

The recommendations are

 The brand loyalty for more L'ORÉAL INDIA can be increased if the Quality and

appearance of the products are given due attention because Honda has captured a

major share of automobile sector.

 The switch over of the customers can be prevented if more of new products are

launched more frequently like Honda which launches new products with slight

variations from the previous.

 Quality are good but it still needs improvements.

74
BIBLIOGRAPHY

75
 BIBLIOGRAPHY

BOOKS AUTHORS

 Marketing Management : Philip Kotler 

 Marketing Research : D. D. Sharma

 Research Methodology : C. R. Kothari

 Websites

 www.L'Oréal India.com

 www.google.com

76
ANNEXURE

77
 QUESTIONNIARE

Q1) Do you like the idea of purchasing products L'ORÉAL INDIA ?

( a) Yes ( b) No

Q2) Have you ever purchase product of L'ORÉAL INDIA ?

( a) Yes ( b) No

Q3) What helps you to decide which product of cement you purchase?

( a) TV Advertisement ( b) Personal recommendation ( c) Special offer

( d) Radio advertising ( e) News paper ( f) Word of mouth

Q4) How frequently you made a purchase L'ORÉAL INDIA product ?

( a) Weekly ( b) Monthly ( c) Quarterly ( d) None

78
Q5) For which one of the following purpose you visit in your product ?

( a) Purchasing brand goods

(b) Purchasing local goods

(c) Only gathering information

(d) Others

Q6) What according to you are attractive features that buy L'ORÉAL INDIA product

(a) Quality (b) Economy (c) performance

Q7) Are you satisfy with L'ORÉAL INDIA Product ?

(a) Yes (b) No

Q8) Do according to you L'ORÉAL INDIA product have changed the way the

Consumer behavior towards cement ?

(a) Yes (b) No

79
Q9.Do you suggest L'ORÉAL INDIA products to others

 Yes

 No

Q10. How will you rate your present L'ORÉAL INDIA performance?

 Poor

 Satisfactory

 Fair

 Good

 Very good

 Excellent

80