A Project Report on

Consumer Attitude & Perception towards High End Perfumes

in partial fulfillment of the requirement of Master 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

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

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 2009 11 MMS Marketing

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

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 fullfledged 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.

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.

TABLE OF CONTENTS
CHAPTER 1 LUXURY MARKET ........................................................................................ 1 1.0 Introduction ...................................................................................................................... 1 1.1 High End Product Brands ................................................................................................. 2 CHAPTER 2 INDIAN 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 3 PERFUMES.................................................... 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 4 PERFUME 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 5 HIGH END PERFUME MARKET IN INDIAError! defined. 5.1 Overview ........................................................................ Error! Bookmark not defined. 5.2 Market Size .................................................................... Error! Bookmark not defined. 5.3 Current Situation ............................................................ Error! Bookmark not defined. Bookmark not

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 6 CONSUMER ATTITUDE AND PERCEPTIONError! 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. Bookmark not

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 8 DATA ANALYSIS AND INTERPRETATIONError! 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. Bookmark not

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! defined. 8.2.2.3 Product features impacting purchase of perfumesError! defined. 8.2.2.4 Brand parameter impacting purchase of perfumesError! 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! defined. 8.2.3.2 Factors influencing purchase of high end perfumesError! defined. 8.2.3.3 Factors repelling from purchase of high end perfumesError! Bookmark not defined. CHAPTER 9 RECOMMENDATIONS ................................ Error! Bookmark not defined. Bookmark not Bookmark not Bookmark not Bookmark not Bookmark not

CHAPTER 10 CONCLUSION ............................................ Error! Bookmark not defined. CHAPTER 11 - APPENDICES ............................................... Error! Bookmark not defined. Appendix 1 Questionnaire................................................. Error! Bookmark not defined. Appendix 2 List of Tables ................................................. Error! Bookmark not defined. Appendix 3 List of Figures ............................................... Error! Bookmark not defined. Appendix 4 List of Images ................................................ Error! Bookmark not defined. BIBLIOGRAPHY .................................................................... Error! Bookmark not defined.

Consumer Attitude and Perception towards High End Perfumes

CHAPTER 1 LUXURY 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.A 2. Japan 3. Taiwan 4. Germany 5. Italy 6. France 7. U.K 8. Brazil 9. Spain 10. Switzerland According to the study conducted, the above markets constitute about 80% of the global markets.

Imran Salim Mansury

Rizvi Institute of Management Studies & Research

Consumer Attitude and Perception towards High End Perfumes

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.

Imran Salim Mansury

Rizvi Institute of Management Studies & Research

Consumer Attitude and Perception towards High End Perfumes

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.

Imran Salim Mansury

Rizvi Institute of Management Studies & Research