Cosmeceuticals, nutricosmetics and health supplements

EXECUTIVE SUMMARY

The objective of the compiled literature is to add information to the Knowledge Bank regarding Cosmeceuticals, Nutricosmetics & Health Supplements. The study is done to understand the market scenario that is prevailing for this category in the Indian Scenario. The study is substantiated by detailed secondary and primary research. The aim of the report is to aid marketers and academicians in understanding the usage pattern that is prevailing for this category and the key drivers that are instrumental in the purchase.

The thesis at first dwells into the current scenario of the selected category of Cosmeceuticals, Nutricosmetics and Health Supplements at global level and the innovative approaches taken by various companies to enhance the beauty factor of million people worldwide. Need for the beauty care is identified through the projective techniques like word association. The need for the category and product is established through structured secondary and primary research pattern.

The primary research is done among different gender groups and the respondents are selected based on a specific recruitment pattern that involves young people of age 22-28 and those who are extremely image conscious. The research helps the marketer understand the various parameters that are considered when a beauty supplement is bought or when a dermatologist or cosmetologist or professional beauty expert is consulted. The respondents are questioned on the parameters like Form of consumption, benefits sought, price range preferred etc. To conclude, a hypothesis is formed stating the set of parameters that are preferred by the image conscious people and based on this the suggestion is made to the marketers which will include the techniques to target efficiently.

INTRODUCTION:

The desire for archetypical beauty has always existed in our system from the ancient times. The perception of beauty has been a highly dynamic factor. In todays world, beauty means health and hydration for hair and skin. The concept ofbeautyeven in the terms of skin deep is patronized only if it is a perfect blend of beautiful face and the confident look which can be sought only if the person is beautiful from within. But with the recent scientific developments in the cosmetic sphere, most of the young professionals want to be idolized as one of the perfect beauties. The need to look good has become one of the essence of todays life. This industry can be broadly classified into body care, skincare, eye care, color cosmetics, hair care, makeup etc...The evolving market size is directly proportional to the change in the social and economic strata of the female consumers in India. Increase in disposable income and exposure to the latest trends in the beauty trends have influenced the women of middle class and higher class of Society. There is a need among women to feel beauty from within. The concept of beauty is getting established as one feels good from within and outside. These women are the potential ones to drive sales for cosmeceauticals and nutricosmetic products.

Cosmeceauticals are the cosmetic products that include ingredients designed not only to enhance appearance but also to have a positive psychological effect at cellular level. They are also known to produce lasting past removal changes and act as a stimulant for both beauty and health needs. Cosmeceauticals are also known as biofunctional materials, dermaceuticals, functional cosmetics, performance cosmetics, active cosmetics, and dermocosmetics. The term is often confused with cosmetics and pharmaceutical.

Nutricosmetics are defined as nutritional supplements which can support the function and structure of the skin. Nutricosmetics are primarily consumed to scale up the conditions in health and beauty. Recent reports have shown that this category promises to be rapidly growing. Huge role is played by the Nutricosmetics in most of the First world nations. For instance, in one of the highly technologically developed country like Japan, the Nutricosmetics are sold in specialty stores and departments. Nutricosmetics are sold as OTC drugs in pharmacies in parts of Western Europe. One of the finest examples for this is Imedeen. It is a skin care supplement with a patented biomarine complex that promises to optimize skin health and prevent the early signs of aging. The term Nutricosmetics is the holistic package of cosmetics, foods and pharma. The primary areas of focus are : skin, hair and staying fit. Nutri cosmetics provide remedies to problems like pigmentation , dark patches, toning, ageing, firmness ,dark circles etc. In terms of hair care, Nutri cosmetic products promises healthy hair growth, volume, restoration etc .In terms of nail-specific products nutricosmetics focus on enhancing strength and the overall appearance of nails. Nutricosmetics can be consumed either in the form of a pill or tablet or liquid and food formats. This is a much newer concept which involves the foods and drinks which are designed, positioned and marketed as products to enhance the beauty factor. The next level of innovation in the cosmetics and toiletries industry are added-value functional foods. The Asian consumers specially the Japanese consumers seem to be one of the high potential consumers because the use of vitamins, functional products and dietary supplements is the highest in these regions.

With increase in consciousness among people to stay beautiful and healthy, there is a consistent upheaval in this industry. Increased Consumer concerns about health have triggered growing demand for cosmeceauticals products. The cosmeceauticals market is growing at a fast pace when compared to other cosmetic sectors. The World Cosmeceauticals market is more than 20-30$ Billion. The major cosmeceauticals markets are USA, Japan, and France. The Market Research Report suggests that the demand for the industry in United States will increase 7.4 percent annually and reaching 8.2 $ Billion through 2012. Antioxidants will continue to be the largest chemical category whereas botanicals and enzymes seem to be the potentials. Indian beauty market is also booming to a great extent. The Cosmetic Industry is recession proof. This is reflected in the significant increase in the number of beauty expos that are being held in the country. Major events such as Asia Spa, in-cosmetics India, Professional Beauty India and Wellness Expo witnessed huge participation. The craving for metro sexual appeal is stimulating lots of men also to splurge money in this market. Skin Care, Hair Care, and Staying Fit; sporting a look devoid of wrinkles, black spots etc have become mantras for the professionals today. The categories include anti ageing, anti wrinkle, skin lightening and cellulite reduction, anti-dandruff, hair growth, hair thickening, Sun Screens, Sun blocks and Sunless tanning. The significant P in the case of Cosmeceauticals is Performance of the product rather than Price.

PHASE I

LITERATURE REVIEW

RESEARCH FRAMEWORK

Literature Review:

Relevance to Indian Context:

This topic is highly relevant to todays Indian context because there is high potential in this sector. With the increase in money power amidst Indian youth, the industry growth promises to be lucrative. Yet the industry faces lots of challenges. With the change in life style of the urban youth, the potential for beauty therapies of various types which promises to provide a therapeutic treatment to achieve outcomes that will alleviate the facial & body conditions, distress and improve the confidence is high.

Need for the segment (Forschungsgruppe, 2008)

Do I want to be beautiful -(Dieter Korczak, GP Forschungsgruppe, Germany; ESOMAR)

The Paper which was presented in the healthcare conference, Rome ,February 2008 talks about the concept of beauty and the reasons for which the person goes for a cosmetic surgery or takes that extra mile of effort to use cosmeceauticals or consume nutricosmetics to become beautiful. The paper primarily talks about the germany market. It throws light on the psychological mindset of the consumers .The insights of the paper has been derived after a thorough primary research which was conducted primarily among women. Though the men market is growing at a higher pace, still the prevalent set of audience is women. There were six factors identified as reasons for undergoing beauty surgery. They were listed as Shame, low self esteem, body control, narcism, anti-aging & need for social acceptance. The paper addresses the key questions like does a person accept how he/she was made by the genetic code of her/his parents? Does he/she accept aging and the slow but constant change of the body appearance? Does he/she withstand the seduction and the image creation of the beauty industry?

Current Scenario & Trends (Beauty Business Brand Impact, 2009)

  1. The value of the global nutricosmetics market is $1.5 billion whereas the figure for the global cosmetics and toiletries Industry is $168 billion. As per the research, it is seen that two largest markets for nutricosmetics are Japan and Europe.
  2. Japan which is considered to be one of the largest markets for nutricosmetics has consumers where they are connoisseurs in assessing and advocating the significance of food, drinks and dietary supplements in the domain of beauty ,wellness & health. The Japanese response to this concept has paved the route for an innovative nutricosmetics market which is flooded with products that are so creative that they yearn to find credibility beyond Japan, points out Dodson. Edible fragrance, a collagen-enriched soup and Shiseidos skin whitening drink from Nissin Food Products are one of the well acclaimed products. Fuwarinka, a candy which is designed to release a vanilla scent through the sweat glands are examples of few Japanese nutricosmetic products.
  3. Chocolate, Mushrooms & Ginger serve as the basic ingredient product. Ginger is now appearing as a key ingredient in radiance and anticellulite products, according to Mintels research. Brands like Menard ,Estee Lauder have used Reishi Mushroom in the reformulation of their Re-Nutriv Sun Care line.A skin care range which is flooded with cocoa based products was launched by a French company Sensation Chocolat and the same product was marketed for the textures, scents and antioxidant action. Le Fondant O Chocolat Paris face cream, La Moussee O Chocolat facial mask and Le Granit O Chocolat body scrub are few of the nutricosmetic products.Massage candles of these can be used as a body moisturizer. When it is melted it can be used as a massage oil.

Challenges in this category (GCI, 2009)

  1. Regulatory Issues, FDA & FTC
  2. Product serving true to the claims
  3. R&D capacity or Sourcing capacity to procure radical new nutrients or delivery systems or extracts
  4. Marketing the product in a contemporary manner to woo the customers
  5. Convincing people to adapt to the new product
  6. Sustaining the customers & converting them to loyalists

Product innovations/Case Studies

Changing sphere in the Pharma market (Cosmetics design-europe.com,2009)

The first cosmeceutical product from the new group of Johnson & Johnson's Evolence was approved by FDA which is an injectable collagen. The purpose of this is to correct facial wrinkles. The FDA approval is a sign of the changing sphere of the pharmaceutical company which is exploring in the cosmetic sector. Since 2004, Evolence has been available in several countries outside the US.

Nescafe launches collagen coffee(20 October 2009,Cosmetics design-europe.com)

Nestle , the maker of Shredded Wheat and Kit-Kat targeted women of higher social strata and launched a coffee under the Nescafe division. Anti-aging nutrient collagen is present in the coffee. Though there is no clarity about the significance of the mixture of collagen with coffee, one of the well known nutricosmetics company based out of Switzerland claims that the product will be promoted by the positive effect that it can create in terms of hair care ,skin care or general appearance. Collagen is used by the cosmetic surgeons to as a filler to rub off the fine lines. The collagen is present in many anti-aging creams.There is a particular belief that the collagen mixed with the drink does not increase the suppleness of the skin. As of now the drink is present only in in Singapore.

Beauty promise by Dairy Products (GCI,May 2009)

Due to the rich presence of beauty enhancing vitamins and minerals ,Dairy products are considered to be the natural contenders for the beauty food wave .They are marketed with specific life enhancing claims such as improved digestion. Danone, one of the well acclaimed nutricosmetic company has introduced a yoghurt in the Mediterranean countries of Italy, Spain and France.

Sun Damage protection by daily pill (Bird, 2008)

Company based out of Florida that specializes in releasing a dietary supplement which is designed to protect the skin against UVA and UVB damage claims that sun protection can be achieved through a pill.

The niche targeting is done for the product which aims at the set of people who believe in the concept of beauty from within. Sunburn, photo aging and cancer can be fought by these set of credible products that have been designed .The target group can be either golfers or tennis players who want to protect themselves against the harmful penetration of UVA & UVB rays and at the same time would not prefer the greasy effect of the sun lotion. The product suits the people who wants to be protected in a convenient way without the topical application of the creams. Since the targeting is niche, the product does not directly competes with the sun lotions and rather offers a unique way of protection against the sun. Two active ingredients of SunPill's are astaxanthin (a carotenoid found in microalgae) and polypodium leucotomos (a fern extract), which is known for their antioxidant properties.

Launch of a beauty juice (Montague, 2008), (Jones, 2008)

Beauty juice called Glowelle was launched by Nestle. The powerful antioxidant in the juice will act as a source to boost the energy in the body and helps to keep the body to look longer for a longer period of time.

Coca-Cola and LOral merged to produce a drink which is tea-based, Luma which was introduced in 2008.The distribution channel will be through upmarket cosmetics retailer rather than the prevalent soft drinks channel .French firm laboratories Norevas norelift introduced a novel product antiaging jam to fight the ageing problem. There is a high potential for Chocolate to play a major role in this aspect.

Nutricosmetic candy bar was launched by Frutels which was specifically targeted at the younger generation.The purpose of the candy bar was to control acne. This was achieved by the regulation of hormone fluctuation and this is achieved by nourishing the individual with micronutrients that are not present in diets that are devoid of nutrition.

One of the giants in food manufacture specifically in the category of snackfood ,Mars marked a presence in the US market with Vialize and Dove beautiful chocolate bars. The objective of these products is to fight one of the common problems ,ageing.

Vichy labarotories, a division of loreal is also innovating and producing cosmeceauticals and Nutricosmetics. For example, products like Myokine ,Intensive anti wrinkle dermo decontracting care that is produced for dry skin , Oligo 25 Anti Dull skin hydrating care ,Thermal Fix Intensive Re hydrating care falls under cosmeceauticals. Products like Dercos has both creams and pills that are produced for haircare.

Spirulina, Piramal Healthcare, Ranbaxy, Himalaya Herbals are few of the well acclaimed pharmaceutical companies that have also launched products in cosmeceauticals and Nutricosmetics category in India.

Opportunities in cosmeceauticals market

The Category Development Index rate of the food and drink products which were produced to enhance the beauty steeped high.

The flavours which were dominating the cosmeceauticals market were Sweet flavours and specifically fruits and natural flavours. Speaking about American subcontinent,United States of America remains as the nation where the spend per capita is the highest in terms of the cosmeutical personal care products and nutricosmetics.

The latest cosmeceauticals approaches for anti ageing:

Zoe DianaDraelos, Wake Forest University School of medicine,2008

Cosmeceuticals acts as a solution provider for one of the most prevalent problems, anti-aging. Formation of rhagades, increased presence of dyspigmentation are the significant signs of cutaneous aging. .The irregularity in Skin surface irregularity can be enhanced by the increased skin turnover facilitated by topical niacinamide.The application of moisturizers that contains over the counter retinoids such as retinyl propionate and engineered peptides can help in diminishing the fine lines. Finally, skin pigmentation can become more normal with the topical application of ultraviolet A photoprotective ingredients and N-acetyl glucosamine. Going forward, the benefits can be magnified by combining cosmeceutical ingredients in a moisturizing vehicle that can enhance the appearance of skin in a profound manner.

Way ahead:

Johann Wiechers ,PhD ,Presisdent of the International Federation of the Societies of Cosmetic Chemists states that the Future of these markets is highly defined by four factors such as right chemical composition, Right site, right concentration levels of chemical and the right period of time.

The price point of the cosmeceutical and nutricosmetics is generally on a higher scale and there is a high possibility for the price to hinder demand for this category. There is a high level of skepticism on the effectiveness of these products amidst the consumers and there is a huge responsibility on the Industry to prove the benefits that will be derived. Level of awareness of cosmeceauticals and nutricosmetics is very low and this creates a need for the manufacturers to educate consumers as what is the significance of these products and how it is different from the traditional set of cosmetics..

There are few companies who are very confident about the high potential in the cosmeceauticals market. For instance ,one of the major suppliers Sabinsa have and are looking forward to launch numerous products which are in the league of highly growing cosmeceutical markets.Another example which has been quite successful in the cosmeceutical range is the Inneov brand and the company expects that the success will continue.Inspite of the stammering economic climate, the cosmeceutical market is forecasted to grow.

Culture as a significant factor for consumption:

Consumption is highly influenced by sociological aspects. Food serves as one of the powerful cultural symbols that the human race has acquired, systemized, developed & appropriated over many ages that the human race has evolved. Food has always been fascinated and there is a higher association between food and culture. Food is considered to be as a source of peril or pleasure. Food also assumes the role of a social signifier. Ritual, magic, social and political significance can be associated with the food. Various sorts of social attitudes have been developed over the time towards consumption of food. People in India pay lots of importance to the products that can be consumed. Ayurveda and Homeopathy was the only sciences believed and followed by the people. The concept of western medicines were introduced and practiced more only in the recent past.Few norms of consumption are always resisted by people. There is a deep rooted psychological belief that the health factor is directly related to consumption compared to any other product.Onions and garlic are not considered to be edible by few orthodox vegetarian communities because the onion and garlic are known to produce heat in the body which induces hormonal effects . This is one of the instance to prove the deep sentiments of the sociological communities on consumption. The taste buds vary to a great extent from one socio cultural region to region.

The consumption of Nutricosmetics is oral. Irrespective of the numerous benefits offered by the product, there should be a change in psychological mindset of the people which will create a demand for the product in the market.

Knowledge gap:

The literature in the domain of Cosmeceuticals and Nutricosmetics is available only in the international context. This is a budding concept in the Indian market. There is a huge scope in the Indian Market in this sector. Hence the scope of this research is to explore the possibilities of this specific branch of life sciences in the Indian scenario.

Research Framework:

Rationale:

  • There exists a need for the research to be conducted to take a peek into the consumer attitudes of splurging money in the category of cosmeceauticals, Nutricosmetics and Health supplements.
  • It is also important to identify the parameters that are seeked by the users of this category to gain a clear understanding of the important attributes that can sell the product.
  • Based on the factors identified the marketer can devise a model to target the right set of customers. This will let them gauge an understanding as which parameters like price or form of consumption or medium through which the message is advocated is more significant to the consumers and then the marketing campaigns can be devised accordingly.

Research Objective:

To study the usage pattern of the Cosmeceauticals & Nutricosmetics & Health Supplements among different gender groups and hence propose strategies that will benefit both customer & marketer.

Information Areas:

  • Need for beauty care
  • Understanding perceptions of beauty & grooming
  • Need for the category
  • Need for the product
  • Current Usage Pattern of beauty products
  • Preference in the form of consumption
  • Acceptability of beauty product in the oral form
  • Awareness level about the different brands in the selected category
  • Trends of cosmeceauticals, Nutricosmetics & Health Supplements in the Indian market
  • To understand the preferences of the people who use nutricosmetics & cosmeceauticals and frame a hypothesis

Research Design:

I will be conducting an exploratory research with the aid of secondary data which would provide insights about the sector focusing. This study would provide insight into the usage patterns of cosmeceauticals, Nutricosmetics & Health supplements among the different gender groups , which might be useful to advertisers in designing their communication campaigns, beauty therapy practitioners & dermatologists in gauging preferences of people in terms of form of application, price component, medium they trust to buy the concept towards these products.

The insight would be useful to marketers to know the right set of audience to be targeted, offline and online places to be targeted, devising promotional schemes, kind of advertising messages to be used and promoted and most importantly training their sales person to identify and convince the decision maker according to the product category. Advertisers would benefit by this study by understanding whom to target for which product.

The Research would involve only qualitative interview as the main objective is to observe the behavior, derive the insight and finally construct the drivers which would be of benefit to marketers and academicians.

Data Collection Method:

Based on the information gathered through the secondary research, a primary research

will be done to collect the relevant data. Direct Interview will be followed for this purpose. A Recruitment Questionnaire will be first prepared and administered to select the respondents.

Use Of Projective Techniques

Projective techniques involve situations in which participants are placed in simulated activities in the hope that they will divulge things about themselves that might not reveal under direct questioning.

In the study, the following projective techniques were used:

  1. Personifications: where in the respondents will be asked to imagine the product(cosmeceutical or nutricosmetics) as a person and describe the person. This helps to reveal how the respondent views the product, the feelings associated with the brand. Also it becomes clear if the imagery is totally driven by advertising.
  2. Word Association : The respondents will be asked to associate the product with a word and describe the word. This will help in mapping the customer perceptions to the image of the product.

PHASE 2

FINDINGS & ANALYSIS

PERCEPTION ABOUT BEAUTY CARE

CONSUMER PURCHASE & DECISION MAKING PROCESS

SUGGESTION TO MARKETER

FINDINGS & ANALYSIS

What are they doing regularly to look good?

The respondents told that they are very specific about the way they look . Looking good has various factors involved. Most of them said that they are very keen about how they maintain themselves as they considering maintaining oneself is very close to looking good.

I do not step out of my room without combing my hair

I do not step out of my house without the ironed clothes

I use a sunscreen whenever I step out

I wash my face every time I go out and come back

I use a hand sanitizer to be rid of germs

I use a lip cream every morning to avoid the dryness

I only use soaps which are prescribed by my dermatologist

I take bath twice a day and every time after I play/gym

Current usage habits related to enhance the beauty factor:

Female respondents said they use moisturizers, sunscreen, lip balm and lip gloss on daily basis. They were very particular about the brand of moisturizers that they use. They were averse to the dryness of the skin which they stated as one of the important reasons to apply the moisturizer. About sunscreen they were highly specific about the SPF factor more than the brand. Few of the respondents said they select lip balm based on the brand and few said they also pay importance to the flavor of the lip balm. Lip gloss was mostly preferred by people who are professionals than the students. The professionals were more brand conscious than price conscious.

I see the SPF factor when buying a sunscreen lotion before seeing the brand

I prefer using Vaseline lip balm any day rather than using the one with different flavours

I do not mind paying high price for the lip gloss that will not do any damage

Understanding of seeking an expert opinon from dermatologist /cosmetologist/professional beauty clinic:

Why should a professional advice be seeked?

All the respondents who were interviewed were of the same opinion on this question. They listed the pros and cons of seeking a professional opinion.

PROS:

  • Long term solutions rather than the creams in the market which are aimed only at tentative solutions
  • Makes the person looks beautiful from Inside out in a holistic way rather than just not in an exterior way
  • Knows the exact solution for the problem
  • Feels more confident in the process rather than the application of creams which are available in the market

CONS:

  • Person ends up spending lots of money
  • Time consuming process
  • Works only if it is diligently followed

Facts based on the Interviews:

After going to a dermatologist for my acne problem ,I can never trust the creams available in the market

I have changed my dermatologists many times because it was highly time consuming to cure the problem

I find cosmetologist better to dermatologist because cosmetologist also pays significance to the way you look rather than just prescribing the pills and creams

I know it is very costly to get a treatment from dermatologist but still I believe that gives a solution on a long term basis

What attributes are involved in choosing a dermatologist / Cosmetologist/ Professional beauty expert:

Based on the facts given by the respondents , few considerations that came out were

  1. Based on the recommendation given by a trustworthy person like a friend /family member who is aware about the service quality of the particular person
  2. Might visit based on an interesting advertisement for a diagnosis
  3. Will continue the service based on the service
  4. Few of the respondents told that they might visit also based on a user review from a trusted site
  5. Few respondents believed in deriving the insights from the blog written in professional magazines
  6. Only out of the respondents stated that they go by the reviews written by the users of the products that are present in the online space

I visit dermatologist after seeing an interesting advertisement ,go for a diagonosis and then based on the service I take a call whether to continue or not

What are the benefits seeked from dermatologist /cosmetologist/Professional beauty expert:

  1. Hair fall control
  2. Prevention of dry skin
  3. Dandruff control
  4. Maintain the suppleness of the skin
  5. Rashes
  6. Increase the bounce factor or the volume of hair
  7. Acne

I have gone to a dermatologist for acne control

I have visited a dermatologist for dandruff

I visit dermatologist only it the situation goes to the extreme level

What are the attributes that are looked to buy the beauty supplements & health supplements?

  1. Brand name
  2. User reviews from a trusted site by a professional expert
  3. Reviews from a dermatologist or cosmetologist or professional beauty expert
  4. Form of consumption
  5. Natural ingredients
  6. Avoid the ones which claim too much of chemicals
  7. Will go for it based on the recommendations
  8. Test the product before buying so that it suits the type of skin or does not create any allergy of any kind
  9. Easy availability
  10. Price
  11. Packaging to some extent for the creams to be applied topically

What are the attributes that are involved in the selection of products of cosmeceauticals or Nutricosmetics ?

  1. Recommendations by dermatologist or cosmetologist or any professional beauty expert
  2. Since not aware of the brands , go by reviews and recommendations of professionals

Perception about Beauty Care

Beauty Care Need:

Beauty care was perceived by everyone as one of the signficant fact of existence. People were very keen about the fact that they look. However cultural differences involving the place of origin or the education level created varying attitudes and beliefs regarding beauty care. Using certain beauty supplements were part of the daily routine for most of the respondents. For example many respondents claimed that they always washed their face after they come from outside to clear their face of germs which would lead to the formation of acne and other skin problems. This also includes maintenance of Hair.

I do not feel good when my skin is dry

According to me people who do not shower are the most dirtiest

Cleanliness is highly related to looking good

Why Want to look beautiful/look good

The respondents were asked to associate few words with Beauty. Below are the responses

Mind Map associated with Beauty Factor:

The respondents were then asked to associate few words with Grooming. Here is the mind map that is associated with Grooming Factor

The respondents were asked to associate few words with Not Beautiful. The mind map is as below:

Out of the responses , the findings were that the respondents related beauty more towards natural and reflection of what is present in the person without applying any external effort. More deeper things like personality factor ,elegance and confidence was related to beauty. One of the respondents stated that beauty is nothing but a state of being which meant the reflection of a natural self. Few respondents defined beauty as internal and skin deep beauty initially. Internal beauty such as grace, elegance , charisma and radiating personality was considered to be important parameters for the person to look beautiful. Skin deep beauty was judged by the parameters like how well the person maintains oneself, cleanliness ,hair free of dandruff and stickiness, clear skin ,skin free of dryness etc. Grooming is considered to be an act that makes a person look beautiful .It is very short lived and is seen as not a natural effort that enables the person to look good or presentable or elegant. Respondents felt that the person who does not have a favourable characteristic trait like behaving rude or being fake to be not beautiful. This again revolved around the fact that the person who does not pay much attention to one self like not taking bath or maintaining one self to be not beautiful at a skin deep level.

The Key Benefits that the respondents are looking for:

If the activity is not practiced properly, the negative repercussions was very salient in the respondent minds:

  • Fear of dry skin
  • Dandruff
  • Hair loss
  • Fragile nails
  • Acne
  • Ageing
  • Obesity

Responses on the health mode:

I consume vitamins to look good and also be healthy

I prefer losing weight through natural techniques like physical exercise because I find this method very healthy

I consume food supplied with sufficient nutrition to make my skin look good in a healthier way

A step beyond health:

Apart from health as a reason, the respondents had other views like

I need to look good to belong to a certain social class

I need to look good to feel more confident

The need of attaining that particular position in the society was seen more in the respondents who were very specific about the way they look.

How do respondents feature on the Maslows Hierachy

Most of the primary attributes that contribute to the self actualization & esteem are enhancement related rejuvenating skin , fresh appearance etc.

Lower level needs is related to Maintenance

Repercussions of not taking any beauty supplements( Cosmeceuticals / Nutricosmetics)

These can be divided into the following heads:

  • Rational
  • Emotional implications

Looking Good The Ideal :

The components that emerged out of the respondents when they were asked to define Ideal beauty/Looking good. These were:

  1. Clear Skin devoid of marks and wrinkles
  2. Nourished hair free of dandruff or stickiness
  3. High level of fitness Related to confidence if the person feels more energetic and has high metabolism rate
  4. Presentable This is related to the grace factor and how well the person displays her/her personality in a radiant manner.

If the skin is not clear I do not consider that the person looks good

Well groomed and nourished hair adds to ones beauty in a significant way

I feel that looking good boosts confidence

The way one carry off ones personality adds or diminishes the persons look

Needs of health supplements & beauty supplements (Nutricosmetics & Cosmeceuticals):

The views of respondents were aggregated into macro propositions , 3 basic needs emerge with respect to health supplements and beauty supplements:

  1. Functional
  2. Cosmetic
  3. Societal

Functional

Exploring the benefits from beauty supplements and health supplements, the respondents came up with a fundamental expectation : to possess a clear skin that is devoid of marks and wrinkles , to be free of dandruff, to stay fit and be highly energetic

This expectation arised from two basic needs:.

To be one of the flawless beauties:

If the person has sharp defined features and does not possess clear skin ,the features are not accentuated. If the person is very obese or extremely skinny, the person is seen to possess a problem.

To feel confident:

Looks are one of the significant factors for a person to feel confident. It is considered to be significant because it records the first impression of a person in the first meeting. Confidence is one of the important traits for a radiant personality. There are lots of social significance associated with this factor.

The proposition emerging from the functional area seems to be nourishing skin, hair and fitness.

Cosmetic:

The benefit that is sought in this area is completely externalized that is able to attract people. This benefit would accrue if a person has elegance and graceful personality which is resulted as the inner confidence where beauty plays a significant role.

so many times you look at someone with great looks and feel I would like to know him/her you get attracted to the person unconsciously

The concepts that were emerged from the responses in the cosmetic area are as follows:

To enhance the feel good factor about oneself and to possess a flawless skin & hair by the consumption of beauty supplements like cosmeceauticals , Nutricosmetics & health supplements like Carotene, ProteinX, Coach Formula etc.

Societal:

The fundamental expectation here comes from the basic fact that the person does not want to be seen as the one with flaws.

To be more socially acceptable:

If a person is known to have dandruff or sticky skin or has a bad body odour, he or she will not be liked by many people and there is a high possibility that his/her social circle is limited. There is also a high possibility that the person can be misjudged because there is a larger set of people who believe that most of the judgments are based on initial impression

I have the fear of being socially rejected if the dandruff increases

Perception of Beauty Supplements & Health Supplements

Awareness of Brands:

The respondents were aware of few brands in the cosmeceauticals ,Nutricosmetics & Health supplements. The most mentions were of the following:

  • Safi
  • Seven seas
  • Botox
  • Spirulina (Ranbaxy)
  • ProteinX
  • Coach Formula

Perceptions about different beauty supplements:

Safi:

Safi was known among all the respondents. 90% of the respondents have used Safi atleast once. None of them knew it was a nutricosmetic though they were aware of the benefits that it is used to clear acne and acts as a blood purifier. No negative associations to the brand was there.

Seven Seas:

Seven seas was also the brand where the awareness level among the respondents was quite high. They were aware of few benefits like maintaining healthy hair, skin and nails but was not aware of other benefits like maintaining strong bones & teeth, keeping the joints supple and flexible, release of energy etc. The benefits of post consumption of seven seas was positive. The other respondents who have not consumed it were willing to try it Positive associations to the brand was there.

Botox:

Few respondents were aware of the beauty supplements like botox. The purpose and the methodology in which it is used were known. The respondents who were aware of the product has not tried it. They stated that it is not a very healthy mechanism to stay or become beautiful. Other respondents who were not aware after explaining the purpose was not ready to buy the concept of injecting into the skin to cure ailments.

Spirulina:

Few respondents were aware of the beauty benefits like anti ageing offered by Spirulina. It was preferred by the respondents because it is the vegetable source of vitamin B12. They were also aware of the form of consumption of spirulina which included Capsules, tablets, powder, biscuits, flakes ,health drinks and also face packs. The associations to the brand was not negative.

Perceptions about different Health Supplements:

ProteinX:

Respondents who wanted to stay fit and build muscles were in favour of this product. The awareness of this brand was high among respondents. Respondents who used this brand stated that there was a positive difference in a moderate manner. The respondents also stated that the product was taken more due to the taste rather than the benefit. Other respondents were willing to try this product.

Coach formula :

Coach formula is also another protein supplement which is taken to build muscles. There are two types of Coach Formula. One is the normal protein and other is the whey protein. Coach Formula Creatine is the famous brand among the available brands under Coach formula. The respondent stated that if it is mixed with water and if consumed going before gym, it has a positive effect. In addition to the medicinal benefits, it creates a positive perception in the minds of people who consume the product that it will build more energy. The associations to the brand was positive.

Response to natural ingredients as beauty supplements:

A discussion was held asking the respondents as which are the natural ingredients that can be used as beauty supplements, the following were mentioned:

  • Bitter guard
  • Neem
  • Lemon
  • Honey
  • Vinegar
  • Henna
  • Tea tree oil
  • Aloe vera gel /Juice
  • Baking Soda
  • Azelaic acid Natural material produced by yeast
  • Shea butter
  • Jojoba
  • Algae polysacchride

Few respondents stated that they would prefer face creams and moisturizers which has Aloe Vera or neem component in it. The natural ingredient in cosmeceauticals and Nutricosmetics is one of the parameters that woos the customers and go for the product. Anti bacterial properties of Neem and Tulsi were talked about. Lemon was also appreciated for its easily availability .It was also found that the cosmeceauticals and Nutricosmetics are preferred than the home remedies among people because of the fact that they are convenient to use in terms of timing and application.

CONSUMER PURCHASE PROCESS FOR COSMECEUTICALS, NUTRICOSMETICS & HEALTH SUPPLEMENTS:

The Engel, Blackwell,Miniard model of consumer decision making:

Models acts as the framework for understanding consumer behavior. A model is just a method of describing a concept, the effects and its causes. Four distinct aspects of consumer decision making are identified by EBM model. The four distinct aspects are input, information processing, decision process and the variables influencing the decision process. It is demonstrated by the model that the decision process is not static and is not one way

EBM Model aids marketers:

  • To analyse every detail involved with the consumer decision making process
  • To assess the level which the target consumer have attained in the decision making process and to create ways to aid them in further guiding through it
  • Classify and Identify the various psychological and external variables that affect and influence the purchase of their product by target consumers.

The process of decision making:

The process of decision making is explained as the figure stated below. This process of decision making complexity ranges from high to low. The situations in which the decisions are made by the consumers for the first time, problem solving must act as the base for actions. Extended problem solving is is when the problem is very complex and lower degree of complexity represents Limited problem solving. Most of the purchase that is made by the consumer are done in a repeated manner. Habitual decision making is considered as one of the least complex method in decision processes.

Decision making processes in the case of Repeat Purchase:

For the cosmeceutical category, the consumers indulge in mediocre problem solving. In this category, choice is made by following a logic that I will buy a brand that is recommended by my friend or family member to me or I will test a product and will buy it only after testing the product and if suits my skin

For the nutricosmetic category, the consumers indulge in extended problem solving. In this category, choice is done by following a simple logic that I will use a product that is recommended by a dermatologist or cosmetologist or professional beauty expert or I will trust a product based on the user review that is present in a well trusted website or I will use a product if it is from the house of the brands which is considered to be credible or I will use a product that is recommended in a professional beauty column or a blog . The range of problem solving differs from cosmeceutical to nutricosmetics because the form of consumption varies. In case of cosmeceutical, the form of consumption is topical which does not have the potential to create more harm since it is external .Whereas in the case of nutricosmetics, the form of consumption is oral and there is a fear among the respondents about the trustworthiness of oral consumption.

For the health supplements category, the consumers are indulged in extended problem solving. The form of consumption of health supplements are either in the form of pills or powder that can be mixed with hot water or Milk. Only after researching about the product in an exhaustive manner , the purchase decision is made.

Repeated Problem Solving:

This occurs when the user is not satisfied with the product. In the beauty supplements and health supplements category, this is known to occur when

  1. The brand that was previously used ceases to deliver the new value that is sought by the consumer
  2. The new brand is tried by the consumer and is not satisfied with it.

I changed from safi to seven seas because consuming safe was a big deal due to the bitter taste

Habitual Decision Making:

Habitual decision making is dependent on parameters like

Brand / Company Loyalty:

In the category of cosmeceauticals, Nutricosmetics and health supplements, there is a fair level of loyalty. The brand and company is seen as one of the significant parameters to choose a product in this category. Respondents stated that a product from Ranbaxy or Himalayas or Piramal would be preferred than a new comer in the market. The switching attitude was seen to be low unless the benefit was not totally derived for the particular ailment.

Inertia:

In this respondent segment , the loyalty is quite high. People are habituated using a particular product. Variety seeking behavior is very low. Switching cost is high because the cure of the ailment is achieved only by a particular type of cosmeceauticals or Nutricosmetic.

Diagnosing the Consumer Decision Making Process:

Level of Involvement:

The Interest evoked by stimuli/stimulus within a specified situation or level of perceived importance indicates the involvement.

The level of involvement for this cosmeceauticals/Nutricosmetics/Health supplements category is high.

The reason as why the decision making process falls in the high of the decision making spectrum are as follows:

Personal factors:

The beauty supplements or health supplements is used to enhance the look in terms of skin or hair or fitness factor. The respondents are very keen on the way they look. They are very conscious that they should possess flawless skin, nourished hair and fit body so that they feel good about themselves and socially acceptable.

Product Factors:

People who are beauty conscious are in need of a product that will cure their ailments without any repercussions. Since this involves the application of the cream on the skin and the hair which are most seen and responsible for adding ones look, there is lots of pondering in the minds of consumer before choosing the product. Various parameters like the recommendation of the product, chemical components of the product, review of the product by the user and the professional are looked by the consumer before the purchase.

Situational Factors:

People who visit dermatologist or cosmetologist generally follow the medicines prescribed by them diligently. For the brands that are prescribed by the doctors, the decision making process for these falls under low problem solving because of the trust associated with the person whom they consult.

Steps in the decision making process:

Need Recognition:

Need recognition is defined as the primary step in the decision making process. It is known as the difference between the actual situation that is prevailing and the desired state of affairs that is existing to induce decision making. A set of factors will influence the probability that a particular need will be activated. Certain kind of that factors exist by changing the persons desired or/and actual states. In this respondent group the need activation takes place at certain times.

Product Consumption:

There is a need that is arised when the person realizes that there is an ailment that has to be treated as soon as possible. The person is victim of ailments like acne, dandruff and seeks for an immediate solution and hence the product is consumed.

I was in a situation where I had to consult a dermolotogist and take pills/creams to cure acne

Changed Circumstances:

In the case of cosmeceauticals or Nutricosmetics or Beauty supplements , there is a tendency among people to look for cure themselves by the creams available in the market. This selection is based on the advertisements by the marketers. If the benefit is not as expected or if the ailment is intense, then the person considers to visit dermatologist or cosmetologist. Cosmetologist is preferred because there is a notion that the cosmetologist considers more on how the person looks during the treatment instead of just prescribing the medicines. The cream that is prescribed by the cosmetologist are transparent and non greasy which can be worn during day also since it is unnoticeable. Professional beauty experts are considered mostly for purpose like removal of facial hair, cleansing the face or making the hair look shiny or radiant (the type of cure is less intense ). In the case of changed circumstance where the person is consulting a professional, the brand that he /she uses depends on this aspect.

Decision process flowchart:

suggestion to marketers :

Understanding Activation & Need Recognition helps marketers:

Market segmentation based on the concept described by kotler Marketing management analysis, implementation and planning (Chapter 9) is elucidated here by the researcher to arrive at a framework of segmentation for consumers of this category.

Consumers are segmented based on the purchase motives. Market segmentation is defined as the process of identifying the consumers and profiling them according to their backgrounds and preferences.

Geographic Segmentation:

The consumers are profiled based on the place of origin. People from metropolitan cities have high sentiments attached towards the way one carry one self. They are concerned about the impression they leave in the minds of people they socialize with. There is a high need for socializing also among people who belong to the cities. Hence cities like Chennai, Ahmedabad and Mumbai were picked for this exercise. In case of marketer it is an extremely important variable as the method of targeting for the people who live in the city and the ones who live in the rural area are quite different.

Demographic segmentation:

This is done based on the demographic variables such as income, education level, occupation, age etc. This study was based on the factors like age, education level and income. The group that was identified was a homogeneous set of people who were in the age of 22-25 and belonged to SEC A.

Psychographic Segmentation:

This is based on the personality and lifestyle variables. This category is highly influenced by the aspect of lifestyle. People start using cosmeceauticals, Nutricosmetics and health supplements to refine their personality and to impress the world.

Behavioral Segmentation:

The purchase of this category is not based on variety seeking. The purchase is made only after research of the product.

The competition scenario is medium in this category. The target group of these products are youth and adults. It majorly focuses on youth because this is the prime age where lots of changes happen and people will want to belong to a certain social group and grow to various levels in their career points.

Search :

After the stage of need recognition, the consumer is engaged in the process of need satisfiers. The Second stage of decision making process is defined as the process of acquiring knowledge from the environment or the information that is stored in the memory. Search is either internal or external in nature. External search is the process of collecting information from the market place or the memory that is gained through the retrieval of knowledge.

Internal Search:

Internal search is based on the memory of a particular brand stored in the minds of potential consumer, awareness about the particular product and positive attitude towards the particular product. The positive impression can be formed by witnessing the usage of particular product by a known person.

External Search:

External search is generally done when the information provided by the internal search is not adequate. This is done through word of mouth, user review in a well trusted website, professional review or recommendation by dermatologist or cosmetologist.

The mediums for external search are as mentioned here. The mediums that are and can be used to advertise about cosmeceauticals, Nutricosmetics and health supplements are

  • Print
  • Online
  • Outdoor
  • TV
  • Mobile

Print :

Brands like Safi advertises in print space like magazines & newspapers. The magazines like womens era, cineblitz, filmfare and regional magazines like kumudam, ananda vikatan , mangayar malar etc which are read by the youth and mostly by women are targeted. The target group who read these magazines aspire to belong to a social group that has flamboyant lifestyle and also wants to look beautiful by possessing a flawless skin , dazzling hair and perfect structure. So there is a high possibility for a brand like safi or any other cosmeceutical or nutricosmetic to get noticed. The price component also plays a role. Brand like safi or seven seas or any medium priced cosmeceutical or nutricosmetic gets noticed if it is advertised in regional magazines or newspapers which is read by the mass. The products of this category whose price component is generally very high are advertised in magazines like womens era or filmfare or stardust etc which is read by the professional affluent women who can afford and are more likely to buy the price component and concept of the innovations in nutricosmetic in the form of candy bars or liquid diets. Based on the responses, it was observed that cosmeceauticals are preferred in majority by women and health supplements by men. Advertisements of cosmeceauticals and Nutricosmetics can be put in magazines as stated above to target women and health supplements can be advertised in mens magazine like Mens Health , sports magazine or auto gear.

Online :

Marketers can make the people buy the concept of this category by the use of blog marketing. Blogs written by professional expert act as an instrumental tool in convincing people. The reviews written by users who have used the product that are present in a well known website which is credible for the beauty advices are trusted. Social marketing website like Facebook where 90% of the youth population is present can be used to promote the products of this category. Based on the responses it is observed that the health supplements like proteinX or Coach Formula is used by the male population and hence the advertisements of these products should be done in online game related site or sports related site.

Outdoor:

The lifestyle of people have changed to a greater extent that most of the time is spent outdoor than the indoors. This has led to the concept of outdoor to grow on a higher scale. Marketers of this category can target men and women by digital signage screens in Malls, Restaurants, Beauty salons, clubs, Gymnasiums, Airports where there is ample time to look at the screen and where there is a chance that the brand in the advertisement gets stored in viewers mind. Event activation can also be done where the free samples can be given or a free invitation for diagnosis by the dermatologist can be availed by mass.

TV:

GEC channels can be targeted to attract the attention of female audience. Youth channels like the music channel or channel like UTV Bindaas can act as the target platform

Word of Mouth:

Word of mouth plays a very significant role in this category. None of the purchases are impulsive. The purchases are made after a significant amount of research. The behavior of the user is not variety seeking.

Conclusion :

The usage pattern has been studied. This has been done by initially understanding the need for the beauty care for an individual. The awareness level of the category and the brands has also been studied. It has been observed that the majority of the people are aware of the products but not the term Cosmeceuticals & Nutricosmetics. People who favoured Herbal Teas for its medicinal purpose rather than the different taste were also willing to try Nutricosmetic. People who were fine with the concept of Nutricosmetics also favoured the application of both Nutricosmetics and Cosmeceuticals simultaneously as they believed that the effect will be higher and the cure will be achieved in a shorter span of time. People who were running short of time and who valued convenience more preferred oral consumption than topical application. People who valued security preferred topical application more than the oral consumption. People preferred natural methods for getting slimmer rather than the consumption of medicines. As the majority of people preferred convenience and looking good to a significant level ,there is a high potential for the marketers to launch Nutricosmetic products. There was a set of very few people who were against the concept of cosmeceauticals and hence we can derive the fact that there is high potential for cosmeceutical products also. Health supplements are favoured only by a niche set of population and hence it is better for the marketers to identify and target specified set of people. But since the concept of building six abs has been a rage amidst men recently, there is high potential for health supplements like ProteinX and Coach Formula in the market. The distribution channel must be ensured strong enough so that the products must be made available in speciality stores like Health & Wellness and the pharmacies. The medium chosen must be highly credible, hence rather than concentrating on Above the line activities, marketer must prefer blog marketing or Influencer marketing strategies.

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