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AProject Report

on

Consumer Attitude & Perception towards High End Perfumes

in partial fulfillment of the requirement ofMaster of Management Studies (MMS)

conducted by

Rizvi Institute of Management Studies & Research

under the guidance of

DR. KALIM KHAN

Submitted by:IMRAN SALIM MANSURY

MMS (MARKETING)Roll No.39

2009-11


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ACKNOWLEDGEMENTS

During the course of the work completed on this project, it has been my pleasure to have

worked with and been assisted by very talented and special individuals. I would like to

express sincere appreciation to Dr. Kalim Khan, Director, Rizvi Institute of Management

Studies & Research who first fueled my interest to work for this topic and who dedicated his

time and effort in helping me construct the background of my research and ideas for this

project. His knowledge and talent are greatly respected and will always be truly appreciated.

I would also like to thank the staff people of the college who have been willing to help me

from the starting of the project till its completion.

To the students and my friends; Nawaf Ghansar, Anis Khan; Siraj Sayed, Fahad Kazi, and all

the respondents who filled my questionnaire for this report, for their invaluable suggestions,

time and effort during the course of the project.

I extend sincere thanks, as their opinions and input during some of the more difficult aspects

of the study have been very helpful. Finally, my parents who have given me full support and

encouragement for completing this project.

Imran Salim Mansury

Roll No. 39

MMS Marketing


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DECLARATION

I declare that the project titled Consumer Attitude and Perception towards High End

Perfumes is a record of the research carried out by me in my fourth semester for the

academic year 2009-2011 under the guidance of my mentor Dr. Kalim Khan, Director,

Rizvi Institute of Management Studies & Research.

I also declare that the project is a result of my effort and hard work and the guidance of my

mentor and has not been submitted anywhere else for a degree of any other university. All the

information, analysis and details hold true to the best of my knowledge.

__________________________

Imran Salim Mansury

Roll No.39

Batch of 200911

MMS Marketing


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CERTIFICATE

This is to certify that Imran Salim Mansury, a student of Masters of Management Studies

(MMS), Roll No.39, specializing in Marketing has successfully completed the project titled

Consumer Attitude and Perception towards High End Perfumes

under the guidance of Dr. Kalim Khan, Director Rizvi Institute of Management Studies &

Research in partial fulfilment of the requirement of Masters of Management Studies (MMS)

by Rizvi Institute of Management Studies & Research, for the academic year 2009-11.

__________________________

Dr. Kalim Khan

Project Guide

Director

RIMSR


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EXECUTIVE SUMMARY

The research was started with the objective of studying the Consumer Attitude & Perception

towards High End Perfumes. Today in the 21st century perfume is a 20 billion dollar

industry worldwide. Both Men & Women have fragrance wardrobes of at least five-six

different perfumes, rather than a single signature perfume, keeping special perfumes for

special occasions.

My research in this topic started with understanding the need of the study and the framing of

the objectives for the research. Research was done to analyze the consumer attitude towards

High End Perfumes with respect to the age group, income group and gender. This was done

through means of a structured questionnaire among a considerable sample. Limitation to the

study was the fact that the sample was interviewed within various malls of Mumbai city.

Thus the results of the study cannot be applied to other parts of the country.

The perfume industry in India has come of age. From a cottage industry it has become a full-

fledged industry due to the huge demand among the people, in the last two decades. The

growth is attributed to an increase in disposable incomes. With globalization, liberalization

and the IT revolution, living standards of Indians have increased manifold. The demand for

fashionable products has increased too. That is why; all global players are eyeing the

subcontinent for business purpose. Thus it has become important for the companies to know

what are the likes and dislikes of consumers in the perfume category, what are their

preferences regarding the high end perfumes available in the market. Through this the

companies or the perfume brands can modify or innovate something special for their

consumers once they know what the consumers want in the product.
http://www.merinews.com/topic/global-perfume-market.shtmlhttp://www.merinews.com/topic/global-perfume-market.shtml


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Therefore this report is about the consumer attitude and perception towards high end

perfumes which gives a detail analysis and explanation of the consumers buying behavior

towards perfume and their preferences while buying it. .

With the growing demand for fragrance, the Indian perfume companies can change their

strategies by utilizing their resources mainly for the domestic market and a meager portion

for exports. Apart from that these companies can also plan and strategize multiple marketing

and distribution strategy to foray into a market with huge potential. The potential is immense

as the middle class is growing rapidly and disposable incomes are increasing.


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TABLE OF CONTENTS

CHAPTER 1LUXURY MARKET ........................................................................................ 1

1.0 Introduction ...................................................................................................................... 1

1.1 High End Product Brands ................................................................................................. 2CHAPTER 2INDIAN LUXURY MARKET.......................Error! Bookmark not defined.

2.0 Introduction ....................................................................Error! Bookmark not defined.2.1 Growth of Indian Luxury Market ...................................Error! Bookmark not defined.

CHAPTER 3PERFUMES ....................................................Error! Bookmark not defined.3.1 History ............................................................................Error! Bookmark not defined.

3.1.1 Islamic ..................................................................... Error! Bookmark not defined.3.1.2 Western ....................................................................Error! Bookmark not defined.

CHAPTER 4PERFUME INDUSTRY IN INDIA ...............Error! Bookmark not defined.4.1 Introduction ....................................................................Error! Bookmark not defined.4.2 Market Size ....................................................................Error! Bookmark not defined.4.3 Trends Affecting the Industry ........................................ Error! Bookmark not defined.4.4 Future Opportunities for Fragrance ................................Error! Bookmark not defined.4.5 The Outlook....................................................................Error! Bookmark not defined.

CHAPTER 5HIGH END PERFUME MARKET IN INDIAError! Bookmark not

defined.5.1 Overview ........................................................................Error! Bookmark not defined.5.2 Market Size ....................................................................Error! Bookmark not defined.5.3 Current Situation ............................................................Error! Bookmark not defined.


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5.4 Major Players of Perfumes Industry............................... Error! Bookmark not defined.5.4.1 Bvlgari ..................................................................... Error! Bookmark not defined.

5.4.2 Gucci ........................................................................Error! Bookmark not defined.

5.4.3 Giorgio Armani........................................................ Error! Bookmark not defined.5.4.4 Azzaro ...................................................................... Error! Bookmark not defined.5.4.5 Burberry ...................................................................Error! Bookmark not defined.5.4.6 Hugo Boss................................................................Error! Bookmark not defined.5.4.8 Calvin Klein .............................................................Error! Bookmark not defined.5.4.8 Versace .................................................................... Error! Bookmark not defined.5.4.9 Davidoff ...................................................................Error! Bookmark not defined.5.4.10 D&G ......................................................................Error! Bookmark not defined.

5.5 Costliest perfume............................................................Error! Bookmark not defined.CHAPTER 6CONSUMER ATTITUDE AND PERCEPTIONError! Bookmark not

defined.6.0 Introduction ....................................................................Error! Bookmark not defined.

6.0.1 Perception ................................................................ Error! Bookmark not defined.6.0.2 Personality ...............................................................Error! Bookmark not defined.6.0.3 Values ......................................................................Error! Bookmark not defined.6.0.4 Beliefs ......................................................................Error! Bookmark not defined.6.0.5 Attitude ....................................................................Error! Bookmark not defined.

6.1 Perceptions of Consumers towards Perfume ..................Error! Bookmark not defined.6.2 Consumers and High End Perfumes...............................Error! Bookmark not defined.


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6.3 Consumers Perfume Trends ...........................................Error! Bookmark not defined.CHAPTER 7- RESEARCH METHODOLOGY .....................Error! Bookmark not defined.

7.1 Need of the study............................................................Error! Bookmark not defined.

7.2 Research Objective .........................................................Error! Bookmark not defined.7.3 Limitations of the study.................................................. Error! Bookmark not defined.7.4 Sampling Procedure .......................................................Error! Bookmark not defined.7.5 Sources of Data collection..............................................Error! Bookmark not defined.

CHAPTER 8DATA ANALYSIS AND INTERPRETATIONError! Bookmark not

defined.8.1 Data Analysis .................................................................Error! Bookmark not defined.

8.1.1 Respondent Profile ..................................................Error! Bookmark not defined.8.1.1.1 Gender ..............................................................Error! Bookmark not defined.8.1.1.2 Age ...................................................................Error! Bookmark not defined.

8.2 Data Interpretation..........................................................Error! Bookmark not defined.8.2.1 Frequency Table ......................................................Error! Bookmark not defined.

8.2.1.1 Consumer fondness towards perfume ..............Error! Bookmark not defined.8.2.1.2 Count of high end perfumes owned by the consumersError! Bookmark not

defined.8.2.1.3 Frequency of purchase of perfumes .................Error! Bookmark not defined.8.2.1.4 Frequency of wearing perfumes ....................... Error! Bookmark not defined.8.2.1.5 Recall rank of Gucci ........................................Error! Bookmark not defined.8.2.1.6 Recall rank of Armani ......................................Error! Bookmark not defined.


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8.2.1.7 Recall rank of CK ............................................Error! Bookmark not defined.8.2.1.8 Recall rank of Davidoff ...................................Error! Bookmark not defined.

8.2.1.9 Recall rank of Burberry ...................................Error! Bookmark not defined.

8.2.1.10 Recall rank of D&G .......................................Error! Bookmark not defined.8.2.1.11 Recall rank of Bvlgari ....................................Error! Bookmark not defined.

8.2.2 One-way ANOVA ...................................................Error! Bookmark not defined.8.2.2.1 Luxury item on which most of the money is spentError! Bookmark not

defined.8.2.2.3 Product features impacting purchase of perfumesError! Bookmark not

defined.8.2.2.4 Brand parameter impacting purchase of perfumesError! Bookmark not

defined.8.2.2.5 Store parameters impacting purchase .............. Error! Bookmark not defined.8.2.2.6 Marketing parameter impacting purchase of perfumesError! Bookmark not

defined.8.2.3 T-Test....................................................................... Error! Bookmark not defined.

8.2.3.1 Consumer perception towards high end perfumesError! Bookmark not

defined.8.2.3.2 Factors influencing purchase of high end perfumesError! Bookmark not

defined.8.2.3.3 Factors repelling from purchase of high end perfumesError! Bookmark not

defined.CHAPTER 9RECOMMENDATIONS ................................Error! Bookmark not defined.


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CHAPTER 10CONCLUSION ............................................ Error! Bookmark not defined.CHAPTER 11 - APPENDICES ............................................... Error! Bookmark not defined.

Appendix 1Questionnaire .................................................Error! Bookmark not defined.

Appendix 2List of Tables .................................................Error! Bookmark not defined.Appendix 3List of Figures ...............................................Error! Bookmark not defined.Appendix 4List of Images ................................................Error! Bookmark not defined.

BIBLIOGRAPHY .................................................................... Error! Bookmark not defined.


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Consumer Attitude and Perception towards High End Perfumes 1

Imran Salim Mansury Rizvi Institute of Management Studies & Research

CHAPTER 1LUXURY MARKET

1.0 Introduction

Luxury can be defined as an indulgence rather than a necessity. It comes with a heavy price

and only the up-market population can afford to enjoy it. This does not make the market any

smaller or short of demand. The luxury goods market includes - fashion, fragrances, watches,

automobiles, drinks etc. The size of the market was US$ 185bn and grew at 8.9% in 2000 and

faced its first recession in 6 yrs in 2009 where the growth went down to about 4% in 2009,

due to the financial crisis worldwide. (Bain and Companys luxury goods worldwide market

study).

Some of the most Luxurious Countries included:

1. U.S.A2. Japan3. Taiwan4. Germany5. Italy6. France7. U.K8. Brazil9. Spain10.Switzerland

According to the study conducted, the above markets constitute about 80% of the global

markets.


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1.1 High End Product Brands

We know some consumers buy luxury brands because they are called Luxury Brands. Be it

status, badge value, or a desire to feel part of the in-crowd, some people buy Versace for its

plaid, Mercedes for its Hood, Chanel for its wear. But that is not the scenario for the typical

luxury consumer.

As far as a handful of luxury categories automobiles, perfumes and beauty, watches,

consumer electronics go, a majority of a affluent consumers rate the brand as very important

in their purchase decision. Let it be any category for any specific product, the brand image

plays a very important role.

Luxury, derived from the Latin word luaus, means indulgence of the senses, regardless of

cost. Luxury brands are brands whose ratio of functional utility to price is low while that of

intangible utility to price is high. - A. V. Vedpuriswar.

Luxury Brands have often been associated with the core competences of creativity,

exclusivity, craftsmanship, precision, high quality, innovation and premium pricing. The

product attributes give the consumers the feeling of uniqueness.

Such goods are meant to show off a persons prosperity, lavishness, and also serve as a

medium of self-expression. This high end market, which was once considered to be

accessible only for the elite, has undergone drastic changes with middle income consumers

showing interest towards the consumption of luxury goods. The luxury goods market has

grown tremendously for the past few years. Amongst all the segments, watches account for

the largest share in the global market.


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More than half of the demand of gold and diamond has been in the jewelry making. India

consumes more than one fourth of the total gold produced. In recent years, there has been a

shift in the consumer preferences towards platinum. In the luxury perfume market, the

Italians dominate the luxury goods market, accounting for almost 80% of the global luxury

perfume production. In the global champagne market, Europe has been the largest market for

luxury goods in the world and as per the nationality of the luxury consumers, Japan leads

having more than one-fourth of the luxury consumers.

The luxury goods market is directly correlated with the global economic conditions. Thus,

GDP has been one of the major factors affecting the market. Also the growing population of

high net worth individuals and the increasing demand from the emerging economies is

expected to boost the global market. There has been a trend in the market that people spend

more on the luxury goods while traveling.

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