Project Proposal

Topic of Research

“Study on buying behavior of customer on organic

Cosmetic products”
Prepared by:
-
Anshul Singh

Roll No: -MB001

MBA, Semester- 3
Submitted to: -
Centre for Management Studies
DharmDharmsinh Desai University
( Nadiad)

College Guide: - Dr. Frince Thomas

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 Certificate

This is to certify that Ms. Anshul Singh is a bonafide student of MBA Semester IV, Centre for Management
Studies, Nadiad. She has successfully completed the project work as prescribed by the Dharmsinh Desai
University in the partial fulfillment of the requirement of Master of Business Administration (MBA) Program for
the academic year 2021-2023.

The Project Work titled as Study on buying behavior of Customer on Organic Cosmetics Products”.

Project guide
Prof. Dr. Frince Thomas Dean
Centre of management studies,
Dharmsinh Desai University, Prof.(Dr.) Naresh K. Patel
Nadiad
Professor & Dean
Faculty of management and information
Science
Dharmsinh Desai University,
Nadiad

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 Declaration

I, the undersigned, hereby declare that the project report entitled, [Study on buying of Customer on
Organic Cosmetics Products] submitted by me to the University of. Dharmsinh Desai impartial in
partial fulfillment of the requirement for the award of degree of Master of Business Administration
under the guidance of Prof. [Faculty guide is my original work and the conclusions drawn therein are
based on the material collected by myself.

The Report submitted is my own work and has not been duplicated from any other source. I shall be
responsible for any unpleased moment/situation.

Place:

Date:
[Student Signature]
Anshul Singh]

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 ACKNOWLEDGEMENT

I would like to extent my sincere gratitude to all those people who have helped in the successful
completion of my project entitled, “Study on Buying Behaviour of Organic Cosmetics Products in
India” I would also like to express my deep sense of my gratitude to Prof. Frince Thomas the faculty
member, for his help and untying efforts constant inspiration and stimulating guidance to me in my
academic’s endeavour and in my project. I would also like to thank Prof, Frince Thomas for providing
continues support, guidance & encouragement for the project. I would also like to thank the college for
giving me this opportunity for doing this project. I would also like to thank my family for giving me
the support to do the same. And last but not the least. I would like to thank to my family members and
all my friends who assisted me through the work and giving me valuable suggestions and advice
throughout the execution of the project. Finally, I thank all those who directly and indirectly
contributed to this project report.

Place: Nadiad

ANSHUL SINGH

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Sr. No Title Page
No.
1. Purpose Of The study

2. Introduction

3. Objective

4. Importance Of Organic Cosmetic Products

5. Literature Review

6. Variables
7. Data Analysis and interpretation

8. Finding Conclusion

9. Bibliography

10. Questionnaire
11 Reference

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 Selection of Topic/ Purpose of study:

I am selecting this topic because these organic cosmetic products demand more increased after the
covid-19 time and now many new companies are coming in field of organic cosmetic like mama earth,
Patanjali, onion seeds, etc. so this research help to analyze and deep understanding about organic
cosmetic products and their related Industries.

Objectives

To analyze factors that affect consumer buying behavior of organic cosmetic

products.

To understand these factors where by marketers Influence customers to

purchase organic cosmetic products.

To learn how branding of cosmetic products specially organic brads are done

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 Introduction
There is also a growing body of literature that suggests organic cosmetics alternatives may
have improved safety measures over traditional cosmetics and are often formed with fewer
synthetic or genetically-modified ingredients (“National Organic Standards,” 2009; winter, 2009)
thereby lowering harmful ingredient-exposure risks. The recent introduction and dispersion of
mainstream organic cosmetics has also become more commonplace (“Quick
Overview,”2010). Consumers interested in organic cosmetics with fewer synthetic and/or
controversial ingredients (i.e., parabens, phthalates, and fragrances) now have choices with more
easily accessible organic products and more locations to find them (“Quick Overview,” 2010).
The growing trend towards organic products has also influenced cosmetics advertising and
marketing campaigns. The new approach is to angle products with descriptors such as
“Natural,” and/or “free from,” some ingredient. This marketing approach could be confusing to
consumers that rely on imagery or words in the selection of cosmetics and presents the need for
assessments of the reading cosmetics labels as a way to increase the level of understanding of
terminology frequently used in advertising campaigns to garner product sales.
Organic and natural cosmetics show qualitative similarity into formulations; however they are
quantitative different. They may not contain synthetic or semi-synthetic raw materials in the
formulations, with some exceptions. They may contain raw material derived from natural products
with allowed processes and they need to contain raw materials with organic origin - of which
varies in the amount present into natural or organic product.

According to the report published by Worldwide Fund for Nature (WWF), human demand on the
planet ecosystems goes beyond Earth bio capacity since late 80's. In short, people are wasting
natural resources at a higher rate than nature can actually regenerate. The report concludes that
"(...) we are living further than our possibilities, and the choices we make today will define the
chances of our next generation" (WWF, 2008). It is necessary to develop the sustainability, so we
can ensure adequate resources for the survival of future generations.

Sustainability, a word that is being more and more used by most of the industries, it has been
responsible for the change in the behavior of consumers and companies, leading to new directions
for the development of raw material and products, environment, people and waste management,
improving the application of energy resources and consumer behavior (Brower, Leon, 1999;
Adams, Jeanrenaud, 2008; Kates, 2010).

Based on these facts, in the last decades there was a rising of the interest on natural products and
biodiversity and there is a consuming market growing especially in the European countries, named
as the "green consumer", which has attracted many fans. The products are formulated with natural
ingredients and developed by cosmetics industries. Studies show that the international market for
personal hygiene products made with natural products has average annual growth estimated in 8-

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25%. The same studies show that the market for synthetic products has a lower growth, oscillating
in 30-10% (Jones, Duerbeck, 2004).

The research, the development and the production of organic and natural cosmetics establishes the
exclusion of traditional production methods, the stimulation of the search for natural alternatives
and the renewable and sustainable production (Moraes, 2009).

GREEN PRODUCTS AND CHARACTERISTICS OF GREEN CONSUMERS

Green products must be able to replace non green products in the stores, so they must be also
useful and affordable products with high quality (Ottman, 1993). The products considered
absolute green are those that were developed, from conception to the manufacture, becoming an
eco-friendly product. The relative green products are those that were not developed with the
primary concern to be greener, but which were later verified as not being aggressive to the
environment. The packaging of green products is another important issue. Beside reduction of
wrapping, a green packaging should allow the re-use or the recycling without leaving much
disposal. Green packaging materials are glass, aluminum or paper (Chick, 1992).

The green consumer is concerned about the environment and the sustainability, and they have
certain characteristics and preferences when they buy organic and natural cosmetics (Blair, 1992;
Hailes, 2007). These characteristics are:

The quality of the product goes beyond the intrinsic characteristics. For them, the most important
is the environmental impact of production and consumption in accordance with environmental
preservation;

They are willing to pay a higher price for an organic product;

The package design should be simple, using just a few materials;

Consumers prefer products with biodegradable, recyclable or returnable packaging;

They don't like to carry the groceries in plastic packaging;

They prefer product without synthetic dye;

They refuse products that contain raw material derived from endangered flora;

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They refuse to consume products derived from animals, whenever it involves their sacrifice;

They search for organic products;

The consumer is concerned about safety and they believe that natural products are safer and more
effective.

They are aware of the culture and behavior of the companies;

They value social and environmental responsibility;
BACKGROUND
They do not accept products tested on animal The beauty industry promotes the daily use of
cosmetics to cleanse, deodorize, and to beautify the face and body (Chaudhry & Jain, 2009; No
Hynek, Antigenic, Re, & Toutain, 2010; Robertson, Fieldman, & Hussey, 2008); millions of
people use cosmetics on a daily basis (Engasser, Long, McNamee, Schlatter, & Gray, 2007; No
Hynek et al., 2010). There is an abundance of research that explores the reasons behind cosmetics
use such as improved appearance and boosted self-esteem in cosmetics users, and that cosmetics
use offers the ability to manipulate the outward image (Cash & Cash, 1982; Robertson et al.,
2008). Cosmetics may be used to compliment or enhance positive facial features and can offer
positive benefits to the consumer by improving their self-image, self-esteem, and confidence, thus
improving the quality of life (Robertson et al., 2008).

Several grassroots organizations such as the Environmental Working Group (EWG) and
the Campaign for Safe Cosmetics have questioned the effectiveness of the laws pertaining to the
regulations surrounding cosmetics (“About the Environmental, “n.d.; Malkin, 2007). These groups
‘current goal is to establish laws that address full regulation of cosmetics, making the process
similar to pharmaceutical drugs by requiring strict regulations that mandate Individual
assessments of cosmetic ingredients including short- and long-term safety assessments (“About
the Environmental,” n.d.; “About Us,” n.d.; Malkan, 2007; Varvaresu et al., 2009).
CONCEPTS AND TERMINOLOGY
Green products are the ones that can be improving or developing according to ecological
standards and satisfy the customer expectation, obtaining several advantages such as: reducing the
use of raw material and packaging; developing multiple utility products, using recycled materials,
reducing the use of natural resources, making products safer for health and less toxic for the
environment, increasing the lifetime of the products, developing reusable products or packaging,
obtaining products for remanufacture and recycling, recovering products for recycling, designing
products that can be buried or incinerated, and also designing products that can be converted into
fertilizers (Ottman, 1993; Lambin, 2002).

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 Green products have the same characteristics and functions as the normal products,
however, they cause less damage to the environment considering the life cycle, and they have
characteristics that somehow minimize the environment impact, for example we have the
biodegradable packaging (Ottman, 1993).

The product that has a "green" attribute can be considered a different product. The term
"eco-friendly" means that there is a concern in the production process, the life cycle and other
factors, like the use of clean technologies, the rational use of natural resources, product
certifications and biodegradable packaging (Blair, 1992).

Organic and natural cosmetics show qualitative similarity into formulations; however they
are quantitative different. They may not contain synthetic or semi-synthetic raw materials in the
formulations, with some exceptions. They may contain raw material derived from natural products
with allowed processes and they need to contain raw materials with organic origin - of which
varies in the amount present into natural or organic products (IBD, 2010).

In Brazil, the certification agency to these products "Instituto Biodinâmico de

Certificações", IBD (2010) classified them as:

Organics: when at least 95% of the formulation components, less water, are organic raw
material with extraction certificate or raw materials that follow strict standards of production,
extraction, purification and processing. These raw materials can be obtained through certificated
crops and extraction, it's fundamental that they are biodegradable and that they preserve the most
natural chemical characteristics. An organic raw material is always natural. The last remaining 5%
of the formulation may be composed of water, natural raw materials, coming from agriculture or
non-certified allowed extractive for organic

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Natural ingredients have always been a part of the beauty regime of Indian women. It may be the
‘dahi-besan pack’ or ‘milk-honey face pack’ or for that matter even tomato face masks for
beautiful and glowing skin. However time constraints have started forcing consumers to adopt
more and more of instant solutions for their beauty needs, without making any compromise with
the beauty as they are aware of the adverse effects of chemical based products on the health and
skin and this the reason that most of consumers are shifting towards green products worldwide.
Green consumerism can be described as being a multifaceted concept, including protection and
preservation of the environment, pollution decrease, animal welfare, species preservation and
responsible use of non-renewable resources (McEachern and McClean, 2002).

According to Tech-Sci Industry Estimates Report (2022) India currently occupy a just over
1% share of total global personal care industry, cosmetics and cosmeceutical market. In the
coming next five years the share is anticipated to grow significantly. The factors responsible for
the growth of the organic cosmetic products as per the report are disposable income, young
urban privileged population and rising middle-class population. Cosmetics and personal care
industry is one the fastest growing consumer products sector and it also offers huge growth
opportunities for international companies as well. This industry is being propelled by various
factors like growth in organized retail, increase in the number of working women, changing
lifestyles, rising disposable income and increasing affordability of luxury and lifestyle oriented
products.

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 The awareness towards healthier lifestyles and the negative effects of using chemical based
healthcare & personal care products are also some of factors responsible for increasing the
demand for cosmeceutical healthcare products in India. Now a day’s Consumers in India
(especially) are becoming more conscious about their skin, not only in terms of color but also in
terms of fair color, reduced wrinkles, etc., to look young and bright, and thereby increasing
demand for various types of skin care products. Most of the Indian companies are witnessing
their online presence in order to expand their consumer base and reachability (Co. like Patanjali,
Himalaya, Dabur and Emami). Products with multiple benefits and with an organic base such as
anti-ageing properties, moisturizing care and sun tan protection are getting popularity in skin
care cosmetics industry.

osmetic can be classified as natural and be certified if the formulation is composed of natural
raw materials certified or not. Natural raw materials are vegetable or mineral products, most
often produced in a conventional condition and not always adhering to the criteria established
for organic production. A natural raw material is not necessarily organic.

Natural: a cosmetic can be classified as natural and be certified if the formulation is composed of
natural raw materials certified or not. Natural raw materials are vegetable or mineral products,
most often produced in a conventional condition and not always adhering to the criteria
established for organic production. A natural raw material is not necessarily organic.

With raw organic or organic ingredients, prepared or made with organic raw materials is at least
70% and at most 95% of the formulation components, discounting water, are certified organic.
The remainder of the formulation may consist of water, natural raw materials coming from
agriculture, extraction or non-certified allowed for organic formulations

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13
Following are the top ten organic beauty brands in India;
1. Mama earth
2. Forest essential
3. Himalaya herbal
4. Soul flower
5. Boutique
6. Lotus organic
7. Vaadi herbals
8. Plum
9. Organic harvest
10.WOW

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15
16
  Charles Revson.
Charles Revson, otherwise known as the creator/founder of the brand Revlon, entered into the
U.S. beauty scene in 1931. Reason’s focus was initially on hair and beauty salon services and then
later incorporated cosmetics (Allen, 1981). Revson was the first to introduce nail enamel and also
package sets that included polish, tweezers, orange sticks, and emery boards. In 1940, Revson
added lipstick shades that matched catchy-named, top selling nail polishes, and with this addition
to the Revlon line, sales for Revlon doubled in value (Allen, 1981). In 1960, Revlon salon products
became available to the public via mass-market drugstores. Additionally, Revson realized that
there was a market for men‘s products and introduced a line called “That Man,” to capitalize on
this population (Allen, 1981).

 Charles Winget
Charles Revson, otherwise known as the creator/founder of the brand Revlon, entered into the
U.S. beauty scene in 1931. Revson‘s focus was initially on hair and beauty salon services and then
later incorporated cosmetics (Allen, 1981). Revson was the first to introduce nail enamel and also
package sets that included polish, tweezers, orange sticks, and emery boards. In 1940, Revson
added lipstick shades that matched catchy-named, top selling nail polishes, and with this addition
to the Revlon line, sales for Revlon doubled in value (Allen, 1981). In 1960, Revlon salon products
became available to the public via mass-market drugstores. Additionally, Revson realized that
there was a market for men‘s products and introduced a line called “That Man,” to capitalize on
this population (Allen, 1981).

 TechSci Research, Assocham India.

The healthcare problems associated with traditional cosmetics are increasing day by day, which
are compelling consumers to shift to organic cosmetics, which are much safer. These are
especially popular among the younger generation. Demand for organic cosmetics across the globe
is emanate mostly from consumers in the age group of below 30years. Major players in the
industry and the Multinational companies are investing heavily on the research and development
of new cosmetics and cosmeceuticals. These multinationals majorly are investing significantly in
innovations like hypoallergenic creams, which have minimal impact on health. Cosmeceuticals
are becoming attractive choice for consumers as they have lower contamination of pesticide
residues, which makes them safe. Going green has become the new concept in the fashion and
lifestyle categories and with increasing preference of Indian

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 Buyers would react differently to sustainable companies based on their ecological awareness
level. Customers are increasingly concerned about its specific product features and also found
similar results in which customers believe that organic cosmetics products exhibited excellent
quality even while they contain fewer synthetic chemicals than traditional cosmetics goods.
Furthermore, two consumers are worried about health problems or the consistency of their
buying actions and environmental issues. Thus, skincare foods' increased profitability has been
influenced by climatic concerns. Subsequently, several organic beauty firms have penetrated the
international market (Jones, 2017).

2). Health consumers.

Health benefit is one of the major reasons to buy natural cosmetics. The outcomes indicated that
Health Consciousness (HC)’s absolutely stimulus attitude regarding buying organic personal
care products as earlier health approach is practically imperative on consumer attitudes.
Moreover, found that health variables positively affect consumer attitudes towards organic
cosmetics in Malaysia. These two studies were near that have shown similar results. They care
more about wellbeing related issues, for example, sun security, maturing, UV beams, and
ecological contamination. That well-being factors are the most substantial factors influencing
customers' ability to buy natural beauty care products.

Well-being mindfulness is imperative in impacting customers' buy practices Notwithstanding, it

explains that customer buy goals and well-being related arrangements stay a subject of
exploration interest (Ashraf et al., 2019). Hence, the expansion of authentic encounters as an
indicator of procurement goal and saw social control as an arbitrator of the attitude-purchase
goal relationship further developed the TPB model (Kim and Chung, 2011). As ladies develop
more established, they are probably going to turn out to be more well-being cognizant than more
youthful guys. Henceforth, ladies utilization of beauty care products for well-being related
reasons and well-being awareness is socially adequate and urges different men to utilize these
items (Hall, Gough, and Seymour-Smith, 2013). The well-being concern is essentially huge on
consumer’s disposition toward prepping items in INDIA. In this manner, Hypothesis 1 has expressed as
follows.

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 DATA ANALYSIS AND INTERPRETATION
I had prepared Questionnaire in which 28 response had generated and still working on.
This is my Analytical basis on 28 response dent.

INTERPRETATION:
 This pai chart shows that age group between 15-25 use mostly organic cosmetic
products and age group between 26 to 36 used organic cosmetics products.

INTERPRETATION

 This Pai chart shows that Female widely use Organic Cosmetic products More
than males .

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 INTERPRETATION
 This Pai chart shows that Sensitive Oily and Dry Skin people Widely Used Organic Cosmetic Products and
oily skin 42.9% people use the organic cosmetic products.

INTERPRETATION

This Pie Chart shows that mostly 71.4% people aware about Organic cosmetic products while remaining 17.9% little
bit aware about Organic cosmetic products and while 10.7% were not aware about Organic Cosmetics Products.

INTERPRETATION
This Pie chart shows that mostly people used Organic Cosmetic Products in the form of Cleaner (39.3%) and while.
(28.6%) people used Organic cosmetic Products and remaining used in the form of Toner, Facial mask or any form.
6

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 INTERPRETATION
 This Pai Chart Show That More than 50 % customers Rarely use Organic Cosmetic Products and 32.1%
frequently used Organic cosmetic products and remaining 7.1% did not used organic cosmetic products.

INTERPRETATION
This Pie chart shows that ( 35.7%) people influenced from Social media advertising 10.7% influenced from
promotion and Advertising, while 21.4% influenced from any consultancy firm or doctor while remaining people
influenced from Friends and family.

INTERPRETATION
This Pie Chart shows that mostly (42.9%) people prefer Ayurvedic Organic Cosmetic Products while (17.9%)
people prefer Chemicals cosmetic products while remaining prefer both chemicals and Ayurvedic.
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 INTERPRETATION
This Pie chart shows that mostly people purchased Organic Cosmetic Products on monthly basis (67.9%) and
remaining people purchased Quarterly, weekly basis and while remaining people do not purchase any kind of
Organic Cosmetic Products.

INTERPRETATION
This Pie Chart shows that mostly people (35.7%) people spend on organic Cosmetic products on the range of 200
to 500, while spend (14.3%) people spend on the range of 500 to 1000 and remaining people spend more then
2000.

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 INTERPRETATION
This pie chart shows that mostly (35.7%) people buy Organic Cosmetics products from Supermarket/Shopping

INTERPRETATION
This Pie chart shows that mostly (60.7%) people used Organic cosmetic Products in case of allergies from
chemicals products while remaining (39.3%) people don’t used organic cosmetic products in case of any allergies.

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 INTERPRETATION
This pie chart shows that mostly (82.1%) people like the smell of Organic Cosmetic products and while remaining
17.9%) people does not like the smell of Organic Cosmetics products.
int

INTERPRETATION
This Pie chart shows that (50%) people were attracting from Quality of products and while 28.3%) people were
attattt

INTERPRETATION
This Pie chart shows that (46.4%) people used Organic Cosmetic products once in a day while (53.7%) people
used twice a day, while others are used weekly/monthly and while remaining people did not used the organic
cosmetics products.

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 INTERPRETATION
This Pie chart shows that (60.7%) people always collect information before purchasing any organic cosmetic
products and while (32.1%) people sometime search or collect any information before purchasing any organic
cosmetics products and while (7.1%) people do not search any information while purchasing any organic cosmetic
products.

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 INTERPRETATION
This Pie chart shows that more than 64.3% people are willing to pay more price for organic cosmetics products
compared to chemical products

INTERPRETATION
This Pie chart shows that (71.4%) people recommend Organic cosmetic products depending on their good past
experienced and while remaining people did not recommend any organic cosmetics products.

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 INTERPRETATION
This pie chart shows that people using organic products on the basis of excellent in term of nutrition reach, Safe
for skin, Environment friendly and most important no side effects.

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Finding And Conclusion :

 This Pai Chart Show That Age group between 15 to 25 used widely organic
cosmetics products.

 This graph shows that more then 50% female widely used Organic Cosmetics
Products more then Male.

 Out of 100 People 42.9% people having Sensitive skin, while 35.8% people
having Oily and Dry skin while others recombination/ Normal Skin.

 This Graph show that 39% people using Organic Cosmetics Products as a
Cleaner form while some are using in the form of Day cream ,Toner form
while some are using in the form official mask or any other form of organic
cosmetics products in their daily routine.

 This Graph also shows that more then 60% people are Rarely Purchase
Organic Cosmetics Products Only 35 to 40% people are Purchasing Organic
Cosmetics products.

 This Graph also shows that 42.9% People Purchased Organic Cosmetics
products in the Ayurvedic Form While 17.9% purchased in the Chemical
form while 39.3% people purchased both Chemical and Ayurvedic form.
 This data also shows that 32.1% people influenced from Friends and Family
while 35.7% influenced from Social Media Advertising while 32.2%
influenced from Organic cosmetic products.

 This Data also shows that 67.9% people purchased Organic Cosmetic
products monthly while 17.9% purchased Quarterly ,while 14.2% purchased
monthly organic cosmetics products.

 This Data also shows that 35.7% people purchased Organic Cosmetics from
Supermarket/Shopping mall, 39.3% from Departmental or medical store while
25% purchased from Online ..

 This Data also shows that more then 80% people like the smell of Organic
Cosmetic products and 17.9% people does not like the smell of Organic
Cosmetics products.

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 This Data also shows that 50% people attract the Quality, 21.4% attract the
Social media advertising while 14.3%motivated by other factor to purchased
the organic cosmetics products.

 This Data also shows that 46.1% people used daily, 17.9% used Twice a day,
while 17.9% used weekly while others do not used the organic cosmetics
products.
 This Data also shows that more then 60% people Collect information before
Purchasing any Organic Cosmetics products.

 This Data also shows that 64.3% people willing to pay more price for Organic
cosmetics products compared to chemical products if they find satisfactory
results.

 This data also shows that 71.4% people recommend Organic Cosmetics
products to their family/Friends/Peer Colleagues if they find satisfactory and
Positive results.

 Data also shows that mostly 30 to 45% People find the Organic Cosmetics
Products as a ,
 NUTRITION RICH
 SAFE FOR THE SKIN
 ENVIRONMENT FRIENDLY
 NO SIDE EFFECTS

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Refences :

www.google.com
www.wikipedia.in
www.sidesnare.net
www.scribed.in
https://reaserchgate
https://etd.online.edu.in

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THANK YOU…

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