Premium Essay

Brand Loyalty Buying Cosmetic Product

In: Business and Management

Submitted By marvz
Words 549
Pages 3
An estimated 80 percent of Net-savvy Filipino consumers would buy new products from familiar brands rather than switch to a new brand, according to a study recently released by market research firm Nielsen.

The trend reveals a higher level of brand loyalty among locals compared to the global trend which shows 60 percent of consumers around the world with Internet access prefer to buy new products from familiar brands.

“Introducing innovations on established brands that are already trusted by consumers can be a powerful strategy,” Nielsen Philippines managing director Stuart Jamieson says in a statement.

“Millions of dollars are being spent on new product innovation by manufacturers, yet two out of every three new products will not be on the market within three years,” he adds.

The results of the Nielsen Global Survey of New Product Purchase Sentiment were obtained from over 29,000 Internet respondents in 58 countries. It shows that brand familiarity is one of several key characteristics that resonate strongly with consumers worldwide.

“To deliver successful new products, marketers and retailers should ensure that they uncover unmet consumer needs, communicate with clarity, deliver distinct product innovations, and execute an optimal marketing strategy,” the local Nielsen chief says.

While 77 percent of Filipino respondents welcome new product options, Nielsen’s survey reveals that 74 percent of consumers prefer to wait until a new innovation has proven itself before making a purchase.

Another 70 percent of respondents say that they would consider store-brand options and 64 percent of respondents say they were “enthusiastic” about such brands.

The survey also shows that 74 percent of Filipino respondents like to tell others about new products that they purchased.

“Consumers are enthusiastic about adopting new product innovations but somewhat…...

Similar Documents

Premium Essay

The Influence of Brand Loyalty on Cosmetics Buying Behavior

...look beautiful and gorgeous. Cosmetics have been introduced many years ago. The earliest archaeological evidence of cosmetics has been founded in Egypt around the 4000 B.C., as evidenced by the remains of artifacts probably used for eye makeup and for the application of scented unguents (Britannica, 2011).The cosmetics industry has been one of the world’s leading industries, and today the cosmetic and toiletries industry in Malaysia has developed rapidly. This is because of the increasing number of working women, increased urbanization, and the increasing self-awareness due to education. Due to the trend of globalization, the markets of cosmetic not only develop in western area but has been spread to Asian area such as Eastern Europe and South America which represent a progressive consumption in the cosmetics markets (Kumar, 2005).Therefore, with the growth of global economics, the cosmetic and fragrance industry show a successful performance with an average of 5% growth rate among the industries every year (Kumar, 2005). According to Britannica (2011) the word "cosmetics" is derived from the Greek word Kosmetikos, which means "skilled at decorating". It refers to any of several preparations (excluding soap) that are applied to the human body for beautifying, preserving, or altering the appearance or for cleansing, coloring, conditioning, or protecting the skin, hair, nails, lips, eyes, or teeth. Besides that, when people hear the word ‘cosmetic’, they tend to think of......

Words: 4242 - Pages: 17

Premium Essay

Brand Loyalty

...No. 2; May 2011 The Influence of Brand Loyalty on Cosmetics Buying Behavior of UAE Female Consumers Dr. Hamza Salim Khraim Marketing Department, Faculty of Business Middle East University, Amman, Jordan E-mail: Received: January 24, 2011 Abstract The worldwide annual expenditures for cosmetics is estimated at U.S. $18 billion, and many players in the field are competing aggressively to capture more and more markets. The purpose of this article is to investigate the influence of brand loyalty on cosmetics buying behavior of female consumers in the Emirate of Abu Dhabi in the UAE. The seven factors of brand loyalty are brand name, product quality, price, design, promotion, service quality and store environment. Questionnaires were distributed and self-administered to 382 respondents. Descriptive analysis, one-way ANOVA and Pearson Correlation were used in this study. The findings of this study indicated that brand name has shown strong correlation with brand loyalty. The research results showed that there is positive and significant relationship between factors of brand loyalty (brand name, product quality, price, design, promotion, service quality and store environment) with cosmetics brand loyalty. Keywords: Female buying behavior, Brand loyalty, Cosmetics, UAE 1. Introduction The history of cosmetics spans at least 6,000 years of human history, and almost every society on earth. In the Western world, the use of cosmetics became prominent in the middle......

Words: 6729 - Pages: 27

Premium Essay

Brand Loyalty

...INTRODUCTION The global cosmetic industry has been captivated by India in a fascinating manner the worlds second most populous country has seen an enormous growth of the cosmetics industry. India's retail beauty and cosmetics industry, currently estimated at $950 million, is likely to almost treble to $2.68 billion by 2020. The industry has been growing at an annual rate of almost 15-20 per cent in the coming years, which is twice as fast as that of the United States or Europe. The Indian cosmetic industry has witnessed robust growth in the past decade and has been ranked 5th largest in Asia. The Associated Chambers of Commerce and Industry of India has published a survey which stated that 65% of the teenagers claimed that their expenditure on branded cosmetics had increased 75% in the past 10 years. Unlike the western countries, where 55 plus age category is the target group, in India the target range is from 30 plus age group. Major driving factors for this industry have been the improved purchasing power and rising fashion consciousness among the population. Increased levels of brand advertising have also captured the imagination and awareness of the people. The cosmetic market caters to all sections of the masses, offering products ranging from a mere Rs. 100 to about Rs. 50000. The higher-end market range is considered to be within Rs. 1500 to Rs. 15000, while the middle market consumes products that are priced below Rs. 1500. The increased brand awareness has also......

Words: 554 - Pages: 3

Premium Essay


...To Know And Study The Trends Of Consumer Buying Behavior Toward The Cosmetic Products Of HUL, P&G And Nirma Company’s Brands. 2013 PRITHVI NATH THAKUR St. KABIR INSTITUTE OF PROFESSIONAL STUDIED 12/31/2013 EXECUTIVE SUMMERY The Project and research works are integral part of academic curriculum. During the process I get an opportunity to study the market scenario and set the practical aspect of theory which makes the concept clear. This is an outcome of the research work and study of market that undertaken on the subject related to “To Know And Study The Trends Of Consumer Buying Behavior Toward The Cosmetic Products Of HUL, P&G And Nirma Company’s Brands.” of the cosmetic items. The study and research is also to understand the value of sales and advertisement promotion so also the perception of cosmetic users. DECLARATION I Prithvi Nath Thakur student of PGDM at St. Kabir Institute of Professional Studies Ahmedabad, 2012-14 batch, hereby declare that the Project Report Titled “To Know And Study The Trends Of Consumer Buying Behavior Toward The Cosmetic Products Of HUL, P&G And Nirma Company’s Brands.” is the outcome of my work and same has not submitted by any institute for the award of any degree or any professional diploma. ACKNOWLEDGEMENT I owe a great many thanks to a great people, ...

Words: 6387 - Pages: 26

Premium Essay


...Consumers (Anjum, et al., 2012) | Advertisements, Brand, Brand equity, Celebrity, Credibility, Endorsed | Celebrities Endorsement (Appendix 1) | Celebrity endorsement, brand credibility and brand equity (Spry, et al., 2009) | Celebrities ,Product endorsement, Brands, Australia | Celebrities Endorsement Conceptual Framework (Appendix 2) | Global Beauty Industry Trends In The 21ST Century (Łopaciuk & Łoboda, 2013) | global beauty industry, global market for cosmetics and toiletries products | Global Cosmetic Trends (Appendix 3)Global Retail Trends (Appendix 4) | Effective Advertising and its Influence on Consumer Buying Behavior (Ghulam Shabbir Khan Niazi, 2012) | Environmental response, Emotional response, Consumer buying behavior | Research Model (Appendix 5) | Exploratory analysis of global cosmetic industry major players ,technology and market trends (Kumar, 2005) | Cosmetic industry; Toiletry industry; Cosmetic industry analysis; SWOT analysis; Cosmeceuticals; Globalization | Global Market Size (Appendix 6) | An Exploratory Study of the Types and Roles of Skincare Advertising Visuals in Magazines (Hingorani, 2008) | Skincare Advertising, Visuals, Magazine Advertisements | Advertisement Elements (Appendix 7) | On the relationship between store image, store satisfaction and store loyalty (Josée Bloemer, 1997) | store image, store satisfaction and store loyalty | Conceptual Model (Appendix 8) | The Effects of Multiple Product Endorsements by Celebrities on......

Words: 581 - Pages: 3

Free Essay

Understanding Consumer

...Gender and consumer behaviour Consumer buying behaviour can be influence by various factor, which included several major factor that could influence their buying behaviour while in engaging in buying decision. Therefore, these factor could be vary tremendously in terms of income, age, personal taste, as well as gender. By understanding consumer buying behaviour it will allows marketers making further process while in creating an appropriate marketing strategy aim on their consumers. Furthermore, it can be a foundation for marketers to develop a sense of awareness on the criteria that influence consumer buying decision making. In this analysis, it is to study the differences between the genders at a various level of buying decision. Among all these factor which will influence consumer buying behaviour. Gender is one of the major factor. Putrevu, (2001, p.1) stated that gender is one of the most common method while on segmenting criteria which used by nowadays marketers. This makes sense, by dividing gender into two male and female primary category, its makes marketers ease to identify and access into their market and at the same time it is large enough to be profitable. The differences between men and women is due to their diversity in socialization, biological and psychological factors that illustrate the differences on their behaviour at the various situations. When comes to decision making whether it is on shopping or eating, or perhaps in the aspect of personal or......

Words: 2770 - Pages: 12

Premium Essay

Case Study L'Oreal

...introduce both Synergie and Belle Couleur into the Dutch market, only one of the ranges or none at all. • Synergie: Finding the right price for the products and whether they should introduce the antiaging cream (didn’t score as highly) • Garnier is a new entrant into the Dutch market and as such is a relatively unknown quantity with neither positive nor negative brand perceptions. • To build the brand, L’Oreal will need to start from scratch although they already have the distribution channels - sales people, retailers, logistics, and back office operations in place to give the new brand a head start. • The brand is highly successful in neighbouring French and German markets however Dutch consumers are seen as having their own unique requirements and preferences for cosmetics and toiletries. • Possible dilution of its own brand or a cannibalisation of its current market leading products Recital and Plenitude. • Market testing has indicated that the product formulation of Belle Colour is darker, preferred by the French consumer, when in fact Dutch consumers have a preference for lighter hair shades. It has been noted that as the Dutch market is considered a minor country, less than 5% of European sales, therefore reformulation will not be possible. • Low market orientation at the R&D level – L’Oreal won’t adapt their Belle product to suit the majority of consumers who prefer lighter shades and weren’t happy with the result (based on the market research) –more selling......

Words: 4775 - Pages: 20

Premium Essay

L'Oreal Expansion in China Case Study Report

...This report is based on the ‘L’Oreal: Expansion in China’ case study. L’Oreal is a successful French cosmetic company that involved into many different international markets. This report will discuss how L’Oreal gets into the Chinese cosmetic Market and the strategic to develop their brand in the Chinese market. L’Oreal acquires two famous Chinese cosmetic brands which are Yue-Sai and Mininurse. It is in order to entrance the market quickly and sales the most suitable products. The aim of this report is to define the challenge L’Oreal has been faced. Then it describes how L’Oreal managing their strategic in Chinese market. In addition, it gives an accommodation which could help L’Oreal overcoming these challenges. Background L’Oreal’s background The French company L’Oreal is a giant in cosmetics market that founded in 1907 by Eugene Schueller. The earliest success for L’Oreal is because it got the first hair color formula and then expanded into the field of shampoo and soaps. From the very beginning, L’Oreal decided to export its product to other countries such as Holland, Italy and so on. It entered the US market at 1953. Schueller was died in 1957 and Francois Dalle replaces his post. Although the boss has been change but L’Oreal expanded into overseas markets continuity. In 2004, L’Oreal had 52,000 employees over the world and portfolio of 17 international brands. As shown in the L’Oreal group annual report, the largest market for L’Oreal is still Western Europe......

Words: 1444 - Pages: 6

Premium Essay

Sephora Case

...Sephora Case Study Retail Management Jillian Moroz January 22, 2014 * Sephora is the world’s largest luxury goods company * Innovative retail concept from France; changing the way cosmetics are sold * Sephora’s store layout, design, and product concept is much different * Fashion retail concept try’s to give customers what they want * “Freedom, beauty, and pleasure” * Some of the products that Sephora offers are: * Hair care * Cosmetics * Fragrances * Bath and body * Skin care * Own private label brand (accounts for 10% of their sales) * Sephora allows their customers to choose their own level of service * May opt for a “individual experience and reflection to detailed expert advice” * can be done either in store or on their website ( * Issues catalogues several times a year that include beauty tips, trends, and showcases a variety of different brands and products * Arrived in the US in 1998 with two store locations in New York and Miami * “Flagship” store opened October 1999 in Rockefeller Center in New York with 1950 square meters of space * Sephora operates 515 stores in 14 countries worldwide * Canada * Czech Republic * England * France * Greece * Italy * Luxembourg * Monaco * Spain * Poland * Portugal * Romania * Russia * Turkey * More than 126 store across North America * Opened......

Words: 756 - Pages: 4

Premium Essay

Case Study

...CASE STUDY ANALYSIS AVON PRODUCTS, INC. Time Frame: 1999-2000 Submitted by; Koseki, Shota C. PROBLEM: • The main problem faced is the lack of experience and expertise by the CEO Andrea Jung where by company significantly lack of innovative strategy to attract customers and achieve organizational goal. Vision • "To be the company that best understands and satisfies the product, service and self-fulfillment needs of women - globally." Mission • The Global Beauty Leader we will build a unique portfolio of Beauty and related brands, striving to surpass our competitors in quality, innovation and value, and elevating our image to become the Beauty Company most women turn to worldwide. The Women's Choice for Buying We will become the destination store for women, offering the convenience of multiple brands and channels, and providing a personal high touch shopping experience that helps create lifelong customer relationships. The Most Admired Company we will deliver superior returns to our shareholders by tirelessly pursuing new growth opportunities while continually improving our profitability, a socially responsible, ethical company that is watched and emulated as a model of success. OBJECTIVE: • To serve families throughout the world with  products of the highest quality backed by a guarantee of satisfaction • To render a service to customers that is outstanding  in its......

Words: 1093 - Pages: 5

Premium Essay

Consumer Behaviour of Shiseido's Customers

...conscious 4 - Product feature conscious 5 V. Buying Behaviour - Fashion Conscious 5-8 - Price conscious 8-12 - Product feature conscious 13-16 VI. Recommendation 16-17 VII. References 18 II, Introduction This project works on a well-known cosmetic brand – Shiseido. In the following parts, the project will evaluate the positions of SHISEIDO, the competitions within the industry, customer’s buying behavior (including their personalities) and their decision making process. We separated the customers mainly into three groups. They are (a) fashion followers, (b) price-conscious consumers and (c) consumers who focus on product features. Recommendations are made referring to the consumers’ profile. III, Company Background SHISEIDO is established in 1919, by a pharmacy launched in 1872. SHISEIDO then tried to develop different brands. It includes IPSA, CLE DE PEAU, ETTUSAIS, AQUA LABEL, MAJOLICA MAJORCA. In 1989, SHISEIDO make up was awarded with Marie Claire Prix d’Excellence/Astir Magazine Astir Award. It becomes one of the most famous global cosmetic brands in the world. The core values of the company are “RICH”, “HUMAN SCIENCE” and “OMOTENASHI”. “RICH” means enriching our hearts and minds. “HUMAN SCIENCE” means enhancing beauty and Wellbeing. “The spirit of OMOTENASHI” means providing social and human care services to customers. All the products and services are developed based on these. Through the three core values, SHESEIDO associates its brand with......

Words: 3796 - Pages: 16

Premium Essay

L'Oreal’s Product

...4 4. Propose segmentation criteria to be used for products in different markets…..5 5. Choose a targeting strategy for a selected L'Oreal’s product………………….6 6. Demonstrate how buyer behavior affects L’Oreal‘s marketing activities in two different buying situations……………………………………………….…….7 7. Propose new positioning for a selected L'Oreal’s product…………………….8 Part III Conclusion………………………………………………………….………10 Part Ⅳ Bibliography……………………………………………………...……….11 Introduction My report is written in the marketing mix of Kraft foods. What I must write is market Orientation and target market. L ' Oreal group is the nearly century-old history of the world's largest cosmetics company, is also one of the Fortune the same time also is for maximum visibility, the oldest one of the popular cosmetics brand, it mainly produces hair color hair, makeup and skin care products. I will then use 1) Explain the various elements of the marketing process. 2) Evaluate the benefits and costs of a marketing orientation for a selected organization. 3) Show macro and micro environment factors which influence marketing decisions. 4) Propose segmentation criteria to be used for products in different markets.5) Choose a targeting strategy for a selected L'Oreal’s product.6) Demonstrate how buyer behavior affects L’Oreal‘s marketing activities in two different buying situations.7) Propose new positioning for a selected L'Oreal’s product the seven knowledge point analysis L'Oreal......

Words: 2755 - Pages: 12

Premium Essay

Background of Etude House

...Background of Etude House: Etude House is a popular cosmetics brand originated from South Korea owned by a chemical and cosmetics company Amorepacific Corporation. The name ETUDE was inspired by a famous Polish composer Frederic Chopin's studies for the piano from the early 1800's. The company was founded in the year 1966 and the corporate name was changed to Oscar Corporation in 1985. During 1990, Amore Pacific Group incorporated the company and have decided to change the company's name to Etude Corporation in 1997. Etude House is one of the main cosmetics retailer in South Korea and the first Etude House retail store was opened in Seoul during 2005 and is growing rapidly ever since then. In the year 2009, Etude House launched stores in several countries including Malaysia, Taiwan, Singapore and more. It now has around 9 retail stores all spread across Kuala Lumpur and Selangor in Malaysia and has grown into a famous cosmetics retailer for the ladies here. Environmental forces affecting the retail store: Environmental forces are the uncontrollable forces that will affect the survival, operations, growth of an organization and the results of a marketing decision. There are several forces that will affect the business of the retail store Etude House. The first force is the technological forces. Advanced technology often creates new products based on innovation and creativity and it has the potential to change the ways of operating a business. The......

Words: 450 - Pages: 2

Premium Essay

Shiseido Business Analysis

...Background 3 Company Analysis 5 Primary Activities 8 Secondary Activities: 9 Strategic Problems 9 Expense Management 10 R&D Expenditures 12 Brand Value 14 Appendices 16 Executive Summary Shiseido is a Global Cosmetics Brand based in Japan, participating in the Beauty and Personal Care Market. Shiseido prides itself on the “Premium” status of its brand across the world, as well as a strong focus on both R&D and the superb training of its Beauty Consultants in properly creating a flagship brand that is beloved by customers. Also part of Shiseido is a broad portfolio of Cosmetics brands in various parts of the world – covering both global and niche target markets to round out the firm’s total product offering. It is these aspects that have driven Shiseido to a household name in its home Japanese market – but it is also these factors that have led it down a path of many problems. This study seeks to identify these problems and the strategic underpinnings responsible for them. To this end, the following line of investigation is used. First, a firm analysis identifies what Shiseido itself regards as core to its identity. Second, an industry analysis seeks to understand the environmental factors that affect its strategic considerations. Lastly, three forces: Expense Management, R&D Expenditures, and Brand Value, are identified and proven to be the primary culprits of Shiseido’s strategic floundering. These factors are investigated and......

Words: 4087 - Pages: 17

Premium Essay

Customer Oriented

...WEAKNESSES | 456 | 4.0 RECOMMENDATIONS | 6 | REFERENCES | 7 | APPENDIX | 9 | Summary Cosmetics line is always popular in our daily lives, especially for the ladies. There are variety of cosmetics brand in the market nowadays, and we as consumer have the choices to choose in the big cosmetics market. As the cosmetics market grow bigger, these cosmetics brand are selling more than products but also services. Their service are moving more towards to customer-oriented so that they could meet the needs of customer thus gain customer loyalty towards their brand. This brings me to the core of my assignment, which is to identify and analysis the communication activity of the cosmetics brand and recommend a better customer-oriented communications for the brand. I have choose The Body Shop as my main subject. 1.0 Introduction of Organisation The Body Shop is solely franchisee by Rampai-Niaga Sdn Bdn in West Malaysia. There are more than 64 stores operating in the western Malaysia. The Body Shop is driven by values, high quality skin and body care retailer for natural inspired skin and body care products. The Body Shop is authority in developing 100% Vegetarian personal care products. The company only use a few products that are animal-derived ingredients such as honey. All products cruelty-free as endorsed by People for the Ethical Treatment of Animals (PETA) and the products are not tested on animals. The Body Shop strongly believe that true beauty comes from the......

Words: 2440 - Pages: 10