CHAPTER 1
INTRODUCTION Brand loyalty is a consumer behavior pattern where consumers become committed to a particular brand and make repeat purchases over time. Companies use creative marketing strategies, such
as loyalty or rewards programs, trial, and incentives like free samples to build brand loyalty. The
brand should stand for trust, authenticity, and quality. The focus may also be on family values, as protection and security. Nivea is a German personal care brand that specializes in body care it is
owned by the Hamburg-based company Beiersdorf global AG. The company found on 1882.
Nivea products hold the image of the first mover which implies expertise. Brand loyalty is a consumer behavior pattern where consumers become committed to a brand and make repeat
purchases over time. Companies use creative marketing strategies, such as loyalty or rewards
programs, trails, brand ambassadors, and incentives to build brand loyalty. Another part of its image is that Nivea offers good value for money. Nivea is a unique brand. One of the reasons is
its strong heritage and long history. There are not many brands that consumers already know
from their great grandparents and parents. This is a very important aspect that leads to brand
trust. The satisfaction of the consumers after buying a product is guaranteed by its good product quality, reasonable prices, satisfactory purchasing experience availability of the products and soon.
STATEMENT OF THE PROBLEM Nivea products now occupy important position in every person’s consumption. People spend
a small amount of time to purchase Nivea products. It saves time because the customer gets
everything like skin care, body care, men care. It provides with complete information. Sometimes, customers also get discounts. The present study deals about the brand loyalty of customers toward Nivea products.
1
OBJECTIVES OF THE STUDY
To study the profile of the sample customers of Nivea products
To analyses the preferences of the customers towards different kinds of Nivea products.
To study the factors which influence customers in selection of the Nivea products.
To study the level of satisfaction of the customers concerning the various aspects of Nivea products.
AREA OF STUDY Tiruchirappalli city has been selected as the area of the study. It is one of the main cities in the state of Tamil Nadu and is centrally located in the state.
PERIOD OF THE STUDY The research has been undertaken for a period of from the months of November 2018 to April 2019.
SCOPE OF THE STUDY In today’s highly competitive marketing environment, the positioning decision of Nivea products from the point of the view of the customers plays an important role in marketing management.
Nowadays, shopping behavior of consumers has undergone a remarkable change and is creating many obstacles for marketers of today. Therefore, the Nivea’s owner needs to check their marketing strategies to give them an advantage over the competitors and they need to develop
these in a manner that distinctiveness can be maintained. Therefore, in this study attempt have been made to find out brand loyalty towards Nivea products. This study covers the preference of
customers towards Nivea brands, the factors which influence purchase from Nivea products, the perception and the satisfaction of consumers towards purchase of Nivea products.
2
PILOT STUDY Preliminary information about customer perception of Nivea brand loyalty was collected from
10 respondents.
Based on the preliminary information collected and review of literature,
interview questionnaire was prepared.
Pre testing of the questionnaire was done with 10
respondents. On the basis of information collected through pre testing, necessary changes were incorporated in the questionnaire before the collection of data for analysis.
METHODOLOGY Primary data and secondary data have been used for study.
SAMPLING METHOD A sample of 110 customers of Nivea products were approached for the study and analyzed. Convenience sampling technique was used for selecting the sample respondent’s percentage analysis, graphs and charts and inferences have been drawn. PRIMARY DATA The data regarding brand loyalty of customers of Nivea products were collected through a welldesigned questionnaire. The questionnaire was used to collect data from the 110 respondents. TOOLS USED FOR ANALYSIS The primary data collected were analysed and interpreted with the help of percentage analysis, graphs and charts and inferences have been drawn.
LIMITATIONS OF THE STUDY 1. All the findings and the observations made in the study are based on the primary data
collected from the sample respondents which are based on their perceptions. 3
2. The customer perception towards Nivea product has been studied as a whole and not for a
specified product.
CHAPTER SCHEME The study is presented in five chapters as given below: CHAPTER-1 contains the general introduction of the study, statement of the problem, objectives of the study, research hypothesis, scope of the study, methodology, limitations of the study and chapter scheme.
CHAPTER-2 Presents the review of literature. CHAPTER-3 Provides the profile of the products. CHAPTER-4 Deals with the analysis and interpretation of data collected. CHAPTER-5 Gives the findings, suggestions and conclusion
4
CHAPTER 2 REVIEW OF LITERATURE Mellens, Dekimpe and Steenkamp, 1996 states that loyalty is a biased response towards a
brand or product expressed over a period of time and is defined by the purchase pattern of a decision making unit which may be an individual, a household or a firm.
Jacoby and Chestnut (1978) opined that commitment is an essential element of loyalty and
distinguishes between loyalty and repeat buying which is due to inertia. Therefore, loyalty implies consistent repurchase of a brand resulting from positive affinity of consumers towards the brand or the product.
Serafin and Horton, 1994 states that Former Ford vice president, Basil Coughlan estimates that
every percentage point of loyalty is worth 100 million dollars in profits to his company Brand loyal consumers are willing to pay higher prices and are less price sensitive to price increases (Mellens et.al.).
Reichfeld, 1996 states that The advantages enjoyed by a brand with strong and consistent customer loyalty include the ability to maintain premium pricing, greater bargaining power with channels of distribution, reduced costs, a strong barrier to potential new entries into the product or service in the same category.
Jacoby and Chestnut ,1978 examined Jacoby et al, defines brand loyalty as “the biased,
behavioral response, expressed over time, by some decision-making unit, with respect to one or more alternative brands out of a set of such brands, and is a function of psychological decisionmaking, evaluative processes.”
5
Cunningham ,1956 identified three definitions of brand loyalty comprising; customers lost and
gained over specific time periods; time sequences of individual purchases and share of the market (Smith).
Olsen and Jacoby ,1971 Used factor analysis to conceptualise brand loyalty and found that
brand loyalty is related to; percentage of purchase devoted to the most purchased brand, number of different brand purchased over the past two years, number of times the favorite brand was
purchased out of the last five purchases, three consecutive purchases out of the last five purchases and the actual number of consecutive purchases of favorite brand out of the last five purchases.
Smith, 2003 examined Based on the summary by Smith Behavioral loyalty is expressed in the form of ‘repeated purchase’ of the brand.
David A. Aake,1991 defines that brand loyalty as the measure of attachment that a consumer has towards a brand. Brand loyalty according to him reflects how likely a consumer will be to
switched brands when that brand makes a product change either in price or product features. Aaker states that the core of a brand’s equity is based on customer loyalty. Therefore if customers buy with respect to features, price and convenience with little concern to the brand name, there is perhaps little equity.
Enis and Paul ,1971 conceptualise brand loyalty as a pyramid with five tiers. The bottom
represents the non-loyal consumers who are indifferent to the brand and who perceived any brand as being adequate whereby the brand name has little influence over buying decisions. The
second level are those who are satisfied with the product or are at least not dissatisfied. The next level are the satisfied buyers with switching costs, those who do not want to risk changing product and may be termed habitual buyer. The next level are loyal buyers who consider the brand as a friend. The fifth level is the committed buyer or those who are extremely loyal to the brand. They comprise those who are proud users and will recommend the product to others.
Sheth and Park ,1974 suggested that brand loyalty is multi-dimensional and comprise three
dimensions namely, the emotive tendency towards the brand; the evaluative tendency towards
the brand and third the behavioral tendency towards the brand. They theorized that all three dimensions are present in every situation where brand loyalty prevails (Sheth and Park, 1974). 6
Kapferer, 1977 in a competitive business environment, brands are not just symbols that serve as
identifiers but have an economic function. The value of brands is its ability to form an exclusive, positive and prominent meaning in the minds of consumers. A brand can create a lasting impression on consumers and this may result in brand loyalty or attract loyal customers.
Weinberg,CV.B.,1973 in his study pointed out that competing brands occupying the market shelves contribute to disloyalty. This is because of one’s personal experience and information gained through trying these brands.
Ronald, F. and Harper, B. 1965 conducted a comparative study and indicated that social-
economic variables could not be differentiated between private and manufactured brand loyal consumers.
Müller and Wünschmann ,2004 identified brand sympathy, brand uniqueness and customer satisfaction as the main sources of brand trust. Furthermore, they illustrate that brand trust leads
to customer loyalty. Having a big loyal customer base is very important for the success and survival of a brand.
7
CHAPTER 3
PROFILE OF NIVEA NIVEA is German personal care brand that specialises in body care. It is owned by the Hamburg-based company Beirsdorf Global AG. The company was founded on 28 March 1882,
by Paul Carl Beirsdorf. In 1890, it was sold to Oscar Troplowitz. Troplowitz worked with his consultant Paul Gerson Unna and the German chemist Isaac lifschutz, developed a new skin care
cream. In 1990, lifschutz developed a water-in-oil emulsion with Eucerit, the first sTABLE
emulsion. This was the origin of Eucerin. Nivea comes from the Latin word niveus, meaning “snow white”.
During the 1930s, Beirsdorf started producing different kind of products such as tanning oils, shaving creams, shampoo and facial cleanser and toners. The trademark “NIVEA” was
expropriated in many countries because of World War 2. The confiscated trademark rights were completely bought back by Beirsdorf. During the 1980s, the NIVEA brand expanded into a wider global market.
Our passion for skin care is what drives us and makes us unique. Our brands and skin care products are trusted by consumers – both locally and regionally.
Expanded into South and Latin America, Eastern Europe, and Asia Earlier limited range of products: Nivea Creme, Milk, Soap and Sun Extended the Nivea brand to a full range of Skin care and Personal care products Challenge: Maintaining growth while preserving the established brand equity. Skin care brand Nivea was originally founded in 1882 by German pharmacist Carl Paul
Beiersdorf. Beiersdorf has risen to become a global skincare company with brands that include
Elastoplast, Eucerin, Labello, La Prairie and tesa SE. In the 1930s, Nivea began selling skinlightening products across Asia such as Whitening Paste, which proved an instant success. Even 8
now, NIVEA products containing whitening ingredients remain the brand’s biggest sellers. Nivea is known for using perfume in their products.
Skincare
At Beiersdorf we have been caring about skin for more than 130 years. Throughout our history we have built trust by staying close to our consumers and developing innovative skin care brands
that are tailored to their needs. We work as one global team, with one focus: making people feel
good in their skin. Everywhere. Every day. As we head into the future, we want to become the number one skin care company in the world. Skin Care is everything to us.
Our Brands
Strong Global Brands making people feel good in their skin means different things to different
people. That’s why, across our three global skin care brands – NIVEA, Eucerin, and La Prairie – we cater for all sorts of needs and operate across different markets: mass market,dermocosmetics, and premium.
Mass Market
NIVEA, our iconic brand, is one of the world’s largest skin care brands. It stands for values like trust, security, family, and reliable care for all skin types and is available in about 200 countries around the world.
Eucerin is synonymous with innovative medical skin care and is trusted by dermatologists and
consumers across the globe. This high-quality product range is among the world’s leading dermo cosmetics brands and is sold in pharmacies in over 60 countries. Two Business Segments
We are a global company with more than 150 affiliates worldwide. Our business is divided in two segments: Our Consumer Business Segment
Here we concentrate on the international skin and body care markets, which are the main focus
of our business. Our innovative, high-quality skin and body care products are trusted by millions of consumers every day. By staying close to our consumers, and our markets, we can ensure that our international brand portfolio stays relevant and our innovations meet the individual needs and wishes of consumers, both globally and regionally. 9
Nivea Branding strategy Consumed worked with agencies FCB and TBWA to develop the marketing concepts and ad executions.
In each market, they implemented ‘perfect local execution’ with local agency affiliates The models or language may change so as tht NIVEA brand appears local but the content remains consistent.
As Norbert Krapp NIVEA’s Vice President of skin care, stated: “Pictures travel, words don’t”.
Printed a booklet for internal use detailing its brand philosophy, called the ‘Blue Bible’.
Contained basic information about NIVEA’s brand identity, vision, mission, success factors, and the role of its sub-brands.
Provided guidelines for products, packaging, communication, promotion, public relations, direct marketing, and pricing.
Norbert Krapp referred to the Blue Bible as “the best [branding step] we did in recent years”, calling it the “key anchor” for all brand decisions.
10
CHAPTER 4
ANALYSIS AND INTERPRETATION OF DATA
This chapter has been divided into the following subdivisions: 1. Profile of sample customers.
2. The preference of customers towards purchase of NIVEA products.
3. The factors which influence customer regarding selection of the Nivea products.
4. The level of satisfaction of the customers concerning the various aspects of Nivea products.
PROFILE OF THE SAMPLE CUSTOMERS The socio economic factors such as age, gender, education qualification, occupation and income
affect the buying decisions of the customers. Hence, the socio economic profile of the respondents has been studied.
11
TABLE4.1 AGE OF THE RESPONDENTS AGE
NUMBER OF RESPONDENTS
PERCENTAGE
Upto 20 years
67
61
21-40 years
37
34
Above 40 years
6
5
Total
110
100
Source: Primary data TABLE 4.1 gives the age of the respondents. Out of 110 sample respondents, 61 per cent of the respondents belong to the age group of up to
20 years and 34 per cent of the respondents belong to the age group of 21 to 40 years and 5 per cent of the respondents belong to the age group of above 40 years of age. Majority (61 per cent) of the respondents are up to 20 years of age.
12
FIGURE 4.1
AGE OF THE RESPONDENTS
Percentage 5
34
Upto 20 years 21-40 years
Above 40 years 61
13
TABLE 4.2
GENDER OF THE RESPONDENTS
Gender
Number of respondents
Percentage
Male
25
23
Female
85
77
Total
110
100
Source: Primary data TABLE 4.2 gives the gender of the respondents. It shows that, among the 110 respondents chosen for the study, 77 per cent of the respondents
are female and 23 per cent of the respondents are male. Majority (77 percent) of the respondents are female.
14
FIGURE 4.2
GENDER OF THE RESPONDENTS
Percentage
23
Male
Female
77
15
TABLE 4.3
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational qualification
Number of the respondents
Percentage
10
9
Under Graduate
67
61
Post Graduate and/ or professional
33
30
TOTAL
110
100
Up to school level
Source: Primary data TABLE 4.3 gives the educational qualification of the respondents. Out of 110 respondents, majority that is 61 per cent of the respondents are Under Graduates; 30
per cent of the respondents are Post Graduates and/or professionally qualified; 9 per cent of the respondents have education up to school level.
Majority that is 61 per cent of the respondents are Under Graduates.
16
FIGURE 4.3
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Percentage 10 33 Upto school level Under graduate
Post graduate and/orprofessional
67
17
TABLE 4.4
OCCUPATION OF THE RESPONDENTS
Occupation
Number of respondents
Percentage
Government employee
11
10
Private employee
21
19
Self employed
Business/Profession Students
TOTAL
Source: Primary data
13
13 52
110
12
12
47
100
TABLE 4.4 gives the occupation of the respondents. The TABLE shows that 47 respondents are students, 19 per cent of the respondents are private
employees, 12 per cent each of the respondents are self-employed and engaged in business or profession and 10 per cent of the respondents are employed in government organisations. Maximum, that is 47 per cent respondents are students.
18
FIGURE 4.4
OCCUPATION OF THE RESPONDENTS
60 50
Number of respondents
40 30 20 10 0
Self employed
Government employee Business/Profession
Occupation
19
Private employee
Students
TABLE 4.5
MONTHLY FAMILY INCOME OF THE RESPONDENTS
Monthly income (RS.)
Number of respondents
Percentage
20,001 to 40,000
26
24
Above 40,000
22
20
TOTAL
110
100
Up to 20,000
62
56
Source: Primary data TABLE 4.5 gives the monthly family income of the respondents. Out of the 110 respondents, 56 per cent of the respondents have monthly family income up to Rs.
20,000, 24 per cent of the respondents have Rs. 20,001 to 40,000, and 20 per cent of the respondents have monthly family income of more than 40,000.
Maximum, that is 56 per cent respondents have monthly income up to Rs. 20,000.
20
FIGURE 4.5
MONTHLY FAMILY INCOME OF THE RESPONDENTS
Amount (Rs)
ABOVE Rs. 40000
Rs.20001 TO Rs. 40000
PERCENTAGE
NO OF RESPONDENTS UP TO Rs.20000 0
10
20
30
40
50
Number of respondents
21
60
70
PREFERNCE TOWARDS NIVEA PRODUCTS TABLE 4.6
MOST INFLUENCING FACTOR TO PURCHASE NIVEA PRODUCTS
Factors
Rank: 1
Brand image
20(18%)
Advertisement and promotion
30(27%)
Word of mouth
18(17%)
Reasonable price
16(15%)
Quality of the products
Source: Primary data
26(24%)
Table 4.6 shows the most influencing factor to purchase Nivea products For 27 per cent respondents, the most influencing factor to purchase Nivea products is the adverstisement and other promotion activities.
For 24 per cent respondents, the most influencing factor to purchase Nivea products is the quality of the products.
For 18 per cent respondents, the most influencing factor to purchase Nivea products is the brand image.
For 17 per cent respondents, the most influencing factor to purchase Nivea products is the word of mouth.
For 15 per cent respondents, the most influencing factor to purchase Nivea products is the reasonable price.
22
FIGURE:4.6
MOST INFLUENCING FACTOR TO PURCHASE NIVEA PRODUCTS
30
18
Quality of the products 16
16 20
Brand image
Adevertisement and Promotion Word of mouth
Reasonable price
24
23
TABLE 4.7
PURCHASES OF NIVEA PRODUCTS
Location
Number of respondents
Percentage
Showroom
18
16
Online websites
12
11
Others
5
5
Total
110
100
Departmental stores and malls
75
68
Source: Primary data Table 4.7 shows thepurchase of Nivea products by the respondents. Out of 110 respondents, 68 per cent of the respondents purchase Nivea products from departmental stores and malls, 16 per cent of the respondent purchase from showrooms, 11per centof the respondents throughonline websites and the balance 5 per cent of the respondents purchasefrom other places.
Majority 68 per cent of the respondents buy Nivea products from departmental stores and malls.
24
FIGURE 4.7
PURCHASE OF NIVEA PRODUCTS
Others 5%
Percentage
Online websites 11%
Departmental stores and malls
Showroom 16%
Showroom
Online websites Others
Departmental stores and malls 68%
25
TABLE 4.8
TYPES OF NIVEA PRODUCTS PURCHASED
Types of product
Number of respondents
Percentage
Nivea skin care
38
35
Nivea body care
56
51
Nivea Men and other products
16
14
Total
110
100
Source: Primary data Table 4.8 gives the types of Nivea products purchased by the respondents. The TABLE shows that 51 per cent of the respondents purchase Nivea body care, 35 percent of the respondents purchase Nivea skin care and 14 per cent of the respondents purchase Nivea men and other products.
Maximum, that is 51 percent respondents purchase Nivea body care.
26
FIGURE 4.8
TYPES OF NIVEA PRODUCTS PURCHASED
60
Number of respondents
50 40 30 20 10 0
Nivea Skin Care
Nivea Body Care
Types of products
Number of respondents
27
Percentage
Nivea Men and other products
TABLE 4.9
YEARS OF USING NIVEA PRODUCT
Years
Number of respondents
Percentage
5 to 10 years
27
25
More than 10 years
6
5
Total
110
100
Less than 5 years
77
70
Source: Primary data Table 4.9 gives the number of years Nivea products are used by the respondents. Out of 110 respondents, 70 percent of the respondents are using the Nivea products for less than 5 years, 25 percent of the respondents are using for 5 to 10 years and 5 percent of the respondents are using for more than 10 years.
Majority that is 70 percent respondents are using Nivea products for less than 5 years.
28
FIGURE 4.9
YEARS OF USING NIVEA PRODUCT
Percentage 5
25
70
Less than 5 years
5 to 10 years
29
More than 10 years
TABLE 4.10
AMOUNT SPENT IN A YEAR FOR PURCHASE OF NIVEA PRODUCTS
Amount (Rs)
Number of respondents
Percentage
501-1000
34
31
More than 1000
11
10
Total
110
100
Upto 500
65
59
Source: Primary data Table 4.10 gives the amount spent by the customers in a year towards purchase of Nivea products.
Out of 110 respondents 59 per cent of the respondents spend up to Rs. 500, 31 per cent of the
respondents spend Rs.501-1000 and 10 per cent of the respondents spend more than Rs.1000 towards purchases of Nivea products.
Majority that is 59 per cent spend up to Rs. 500 per year for purchasing Nivea products.
30
FIGURE 4.10
AMOUNT SPENT IN A YEAR FOR PURCHASE OF NIVEA PRODUCTS
Amount (Rs)
More than 1000
501-1000
Upto 500
0
10
20 Percentage
30
40
50
Number and Percentage of respondents Number of respondents
31
60
70
BRAND LOYALTY TABLE 4.11
FACTORS INDUCED TO BUY NIVEA PRODUCT
Factors
Number of respondents
Percentage
Slogans
37
34
More frequent advertisements
33
30
Total
110
100
Celebrities
40
36
Source: Primary data
Table 4.11 gives the factors influencing to buy Nivea products. Out of 110 respondents 40 per cent of the respondents are induced by celebrities, 37 per cent of the respondents by Slogans and 30 per cent of the respondents are induced to buy because of more frequent advertisements.
Majority that is (36 percent) of the respondents purchase Nivea products induced by celebrities.
32
FIGURE 4.11
FACTORS INDUCED TO BUY NIVEA PRODUCT
Percentage
30
36
34
Celebrities
Slogans
More frequent advertisements
\ 33
TABLE 4.12
PERSONS INFLUENCING TO BUY NIVEA PRODUCTS
Persons influencing to buy
Number of respondents
Percentage
Friends
57
52
Family members
21
19
Neighbors
20
18
Others
12
11
110
100
Total Source: Primary data
Table 4.12 gives the persons influencing to buy Nivea products. Out of 110 respondents, 52 per cent respondents have been influenced to Nivea products through
friends, 19 per cent of the respondents have been influenced through family members, 18 per cent through neighbors and 11 per cent by others.
Majority, 52 per cent of the respondents have been influenced to buy Nivea products through friends.
34
FIGURE 4.12
PERSONS INFLUENCING TO BUY NIVEA PRODUCTS
Percentage 11
18 52
19
Friends
Family
Neighbours
35
Others
TABLE 4.13
OPINION ABOUT BRAND IMAGE OF NIVEA PRODUCT
Nivea products have good brand image
Number of respondents
Percentage
Yes
83
75
No
27
25
TOTAL
110
100
Source: Primary data Table 4.13 gives the opinion of the respondents about the brand image of Nivea products. Out of 110 respondents, 75 per cent of the respondents state that Nivea product have good brand
image and 25 per cent of the respondents are of the view that Nivea products do not have good brand image.
Maximum of the respondents (75 per cent) said that Nivea products have good brand image.
36
FIGURE 4.13
OPINION ABOUT BRAND IMAGE OF NIVEA PRODUCTS
NUMBER OF RESPONDENTS
brand image among the respodents
75
25 0
BRAND IMAGE
YES
NO
37
TABLE 4.14
OPINON ABOUT SWITCHING OVER
Have idea of switching over to other brands
Number of respondents
Percentage
Yes
53
48
No
57
52
Total
110
100
Source: Primary data Table 4.14 gives the opinion of respondents about their idea of switching to other brands. Out of 110 respondents, 48 per cent of the respondents have idea of switching over to other brands and 52 per cent of the respondents do not have idea of switching to other brands.
Majority of the respondents (52 per cent) do not have idea of switching over to other brands.
38
FIGURE 4.14
OPINION ABOUT SWITCHING OVER
58 56
Number of respondents
54 52 50 48 46 44 42
Yes
39
No
TABLE 4.15
BRAND PREFERRED IN FUTURE
Brand preferred in future
Number of respondents
Percentage
Himalaya
28
50
Patanjali
8
14
Ayush
Vaseline Total
Source: Primary data
8
13
57
14
22
100
Table 4.15 gives the brand preferred in future by the customers who are switching over to other brands.
Out of 57 respondents who are ready to switch over to other brands, 50 per cent of the
respondents prefer Himalaya, 8 per cent each of the respondents prefer Ayush and Patanjali and 13 per cent of the respondents prefer Vaseline.
Majority (50 per cent) of the respondents prefer switch over to Himalaya brand.
40
FIGURE 4.15
BRAND PREFERRED IN FUTURE
Other brands
Vaseline
Patanjali
Ayush
Himalaya 0
10
20
30
Number of respondents
PERCENTAGE
NUMBER OF RESPONDENTS
41
40
50
60
TABLE 4.16
REASONS FOR SWITCHING OVER TO OTHER BRANDS
Reasons
Number of respondents
Percentage
High price
25
44
Poor customer services
13
23
Low quality
Brand fatigue TOTAL
Source: Primary data
10 9
57
18
15
100
Table 4.16 gives the reasons for switching over to other brands. Table shows that out of 57 respondents 44 per cent of respondents switching over to other
brands due to high price, 18 percent of respondent switching over due to low quality, 23 percent of respondents due to poor customer services and, 15 percent of respondents due to brand fatigue.
Majority that is 44 percent of the respondents switch over because of high price.
42
FIGURE 4.16
REASONS FOR SWITCHING OVER TO OTHER BRANDS
Percentage 15 44
23
High price
Low quality
Poor customer services Brand fatigue
18
43
TABLE 4.17
LEVEL OF TRUST REGARDING NIVEA PRODUCTS
Level of trust Very High
Number of respondents
Percentage
20
18
44
40
High
36
Low
8
Moderate Very low TOTAL
2
110
33 7
2
100
Source: Primary data Table 4.17 gives the level of trust regarding Nivea products among the respondents. Out of 110 respondents, 18 per cent of respondents have very high level of trust regarding Nivea brand, 33 per cent of respondents have high level of trust regarding Nivea, 40 per cent of the
respondents have moderate level of trust regarding Nivea, 8 per cent of respondents have low level of trust and 2 per cent of respondents have very low of trust regarding Nivea product. Majority that is 40 per cent of respondents have moderate level of trust regarding Nivea.
44
FIGURE 4.17
LEVEL OF TRUST REGARDING NIVEA PRODUCTS
8
2
20
Very High High
Moderate Low
Very low
44 36
45
TABLE 4.18
RECOMMENDING OTHERS TO PURCHASE NIVEA PRODUCTS
Recommending others to
Number of respondents
Percentage
YES
88
80
NO
22
20
TOTAL
110
100
purchase
Source: Primary data Table 4.18 shows whether the respondents are recommending others to purchase Nivea products. Out of 110 respondents, 80 per cent of respondents recommend others to purchase Nivea products, 20 per cent of the respondents do not recommend others to purchase Nivea products. Majority of respondents 80 per cent recommend others to purchase Nivea products.
46
FIGURE 4.18
RECOMMENDING OTHERS TO PURCHASE NIVEA PRODUCTS
20
Percentage
YES 80
47
NO
TABLE 4.19
LEVEL OF SATISFICATION REGARDING QUALITY OF NIVEA PRODUCTS
Quality aspects
Number of respondents
Percentage
Highly satisfied
40
36
Satisfied
61
55
Highly dissatisfied
3
4
Dissatisfied Total
Source: Primary data
6
110
5
100
The Table 4.19 shows the level of satisfaction of quality of the product among the consumers . Out of 110 respondents, 36 per cent of the respondents are highly satisfied regarding the quality of Nivea products, 55 per cent of the respondents are satisfied regarding quality of Nivea
products; 5 per cent of respondents are dissatisfied and 4 per cent of the respondents are highly dissatisfied regarding the quality of Nivea products.
Together majority (91 per cent) respondents are satisfied and highly satisfied regarding the quality of Nivea products.
48
FIGURE 4.19
LEVEL OF SATISFICATION REGARDING QUALITY OF NIVEA PRODUCTS
Percentage 6
3
40
61
Highly satisfied Satisfied
Dissatisfied
Highly dissatisfied
49
TABLE 4.20
LEVEL OF SATISFICATION REGARDING PRICE OF NIVEA PRODUCTS
Price
Number of respondents
Percentage
Highly satisfied
14
13
Dissatisfied
27
25
Total
110
100
Satisfied
Highly dissatisfied Source: Primary data
60 9
55 7
The table 4.20 shows the level of satisfaction towards price of the Nivea products. Out of 110 respondents, 13 per cent of the respondents are highly satisfied and 55 per cent of the
respondents are satisfied regarding the price of Nivea products, 25 per cent of the respondents
are dissatisfied and 7 per cent of the respondents are highly dissatisfied regarding the price of Nivea products.
Together, majority (68 per cent) of the respondents are satisfied and highly satisfied regarding
the price of Nivea product.
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FIGURE 4.20
LEVEL OF SATISFICATION-PRICE OF NIVEA PRODUCTS
9
14
27
Highly satisfied Satisfied
Dissatisfied
Highly dissatisfied
60
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TABLE 4.21
LEVEL OF SATISFACTION REGARDING VARIETY OF NIVEA PRODUCTS AVAILABLE
Variety of products
Number of respondents
Percentage
Highly satisfied
34
31
Satisfied
48
44
Dissatisfied
20
18
Highly dissatisfied
8
7
Total
110
100
Source: Primary data The table 4.21 shows the level of satisfaction regarding variety of Nivea products available. Out of 110 respondents, 31 per cent of respondents are highly satisfied regarding variety of
Nivea products available and 44 per cent of the respondents are satisfied, 18 per cent of the
respondents are dissatisfied and 7 per cent of the respondents are highly dissatisfied regarding variety of Nivea products available.
Together majority (75 per cent) of the respondents are satisfied and highly satisfied regarding the variety of Nivea products available.
52
FIGURE 4.21
LEVEL OF SATISFACTION REGARDING VARIETY OF NIVEA PRODUCTS AVAILABLE
7
18
8 34
20
31
Highly satisfied Satisfied
Dissatisfied
Highly dissatisfied
48 44
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TABLE 4.22
LEVEL OF SATISFACTION REGARDING BRAND IMAGE OF NIVEA
Brand image
Number of respondents
Percentage
Highly satisfied
31
28
12
11
110
100
Satisfied
59
Highly dissatisfied
8
Dissatisfied Total
Source: Primary data
54 7
The table 4.22 shows the level of satisfaction regarding brand image of Nivea products. Out of 110 respondents, 28 per cent of the respondents are highly satisfied regarding brand
image of Nivea and 54 per cent of the respondents are satisfied,11 per cent of respondents are dissatisfied and 7 per cent of the respondents are highly dissatisfied regrading brand image of Nivea products.
Together majority (82 per cent) of respondents are satisfied and highly satisfied regarding the brand image of Nivea products.
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FIGURE 4.22
LEVEL OF SATISFICATION REGARDING QUALITY OF NIVEA PRODUCTS
7 11
8
12
28 31
Highly satisfied Satisfied
Dissatisfied
Highly dissatisfied 59
54
55
TABLE 4.23
LEVEL OF SATISFACTION REGARDING EFFECTIVENESS OF NIVEA PRODUCTS
Effectiveness
Number Of respondents
Percentage
Highly satisfied
29
26
Dissatisfied
16
15
Total
110
100
Satisfied
Highly dissatisfied Source: Primary data
56 9
51 8
The table 4.23 shows the level of satisfaction regarding effectiveness of Nivea products available.
Out of 110 respondents, 26 per cent of respondents are highly satisfied regarding the effectiveness of Nivea product, 51 per cent of respondents are satisfied, 15 per cent of
respondents are dissatisfied and 8 per cent of respondents are highly dissatisfied regarding effectiveness of Nivea products.
Together majority (77 per cent) of respondents are satisfied and highly satisfied regarding effectiveness of Nivea products.
56
FIGURE 4.23
LEVEL OF SATISFACTION REGARDING EFFECTIVENESS OF NIVEA PRODUCTS
Percentage 8 15
9 29
16
26
Highly satisfied Satisfied
Dissatisfied
Highly dissatisfied
56 51
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CHAPTER 5
Findings:
FINDINGS, SUGGESTIONS AND CONCLUSION
1. Majority (61 per cent) of the respondents are upto 20 years of age. 2. Majority (77 per cent) of the respondents are female.
3. Majority (61 per cent) of the respondents are under graduate. 4. Majority (47 per cent) of the respondents are students.
5. Majority (56 per cent) of the respondents have monthly income up to Rs.20000.
6. Majority (24 per cent) of the respondents ranked 1 for the quality of the Nivea product.
7. Majority (27 per cent) of the respondents ranked 3 for the brand image of the Nivea product.
8. Majority (27 per cent) of the respondents ranked 1 for the advertisement and promotions of the Nivea product.
9. Majority (25 per cent) of the respondents ranked 4 and 5 for the word of the mouth of the Nivea product.
10. Majority (28 per cent) of the respondents ranked 5 for the reasonable price of the Nivea product.
11. Majority (68per cent) of the respondents buy Nivea products fromdepartmental stores and malls.
12. Majority that is (51 percent) respondents purchase Nivea body care.
13. Majority (70 per cent) of the respondents are using Nivea products for less than 5 years.
14. Majority (59 per cent) of the respondents who spends up to Rs.500 for purchasing Nivea products.
15. Majority (36 per cent) of the respondents purchase Nivea products induced by celebrities.
16. Majority, (52 per cent) of the respondents have been influenced to buy Nivea products through friends.
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17. Majority, (52 per cent) of the respondents have been influenced to buy Nivea products through friends.
18. Majority (52 per cent) of the respondents does not have the idea of switching over to other brands.
19. Majority (50 per cent) of the respondents are ready to switch over to brands and they prefer Himalaya brand.
20. Majority (44 per cent) of the respondents are switching over to other brands because of high price.
21. Majority (40 per cent) of the respondents have moderate level of trust regarding Nivea.
22. Majority (91 per cent) respondents are satisfied and highly satisfied regarding the quality of Nivea products.
23. Majority (68 per cent) of the respondents are satisfied and highly satisfied regarding the price of Nivea product.
24. Majority (44 per cent) of the respondents are satisfied and highly satisfied regarding the variety of Nivea products available.
25. Majority 82 per cent of respondents are satisfied and highly satisfied regarding the brand image of Nivea products.
26. Maximum (77 per cent) of respondents are satisfied and highly satisfied regarding effectiveness of Nivea products.
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SUGGESTIONS
Majority of the respondents are satisfied with the quality of the products. Hence, Nivea
Some customers are of the opinion that price changed by Nivea are comparatively high.
should continue to offer quality products for sale.
So, it can take efforts to reduce the prices of the product and also offer more discounts.
Maximum respondents mostly purchase skin care items. However the time spent for purchasing is the lowest. Hence Nivea can concentrate on promotion of sale of skin care items.
Majority of the respondents purchase products from departmental stores and malls. So, it should take efforts to maintain and improve the quality and variety of products so, that the existing customers are retained.
Even the quality of navy’s products is good there is lack of popularity among people. So, Nivea should tithe key proper measures to improve it.
Satisfaction level is low regarding price and effectiveness of products. So, the company have to work on the customer preference towards the pricing and effectiveness.
Majority of respondents recommending others to purchase the Nivea products. Even the company have to work more on promotional activities to satisfy the existing customers.
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CONCLUSION Nivea a brand with a loyalty of more than 100 years has been an prime product in every single
household and has played an important role in each individual lives. It has more of a necessary product rather than leisure. The customer base for Nivea has been increasing but there are
various competitors such as Himalayas, Vaseline, ayahs etc. and other are also have good and
fair market at present. Based on the findings and stated in the literature review loyal customers are emotional creatures which are highly driven by their desire to maintain a relationship with
the brand they feel an emotional connection with. Consequently, even though feelings related to continuance commitment engage the consumer in a brand relationship, these feelings are not
enough to develop feelings of loyalty in the consumers mind. So therefore Nivea have to stand among the fierce competition with more loyalty.
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