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Executive Summary

Spring 2011

April 5, 2011

Journalism 382

Our group has chosen to take on the role of a beauty company that is interested in knowing the consumer purchasing behaviors of our target market consumer in the Muncie community. With this in mind, our research proposal question is: What are the 16-24 year-old consumer purchasing behaviors of beauty products? Our research hypothesis is: Consumers buy beauty products based on price or brand loyalty. Research Methods The three methods of research we plan on using include focus groups, surveys and experiments. We will carry out six focus groups in the Muncie community to get an accurate representation of consumer purchasing behaviors of beauty products. Three will be conducted in local Muncie High Schools while another three will be hosted on the Ball State campus. Because of the age group we are targeting, we have chosen to use online surveys. They are quick, convenient and cheap, which suit our company’s needs at this time. We are striving to achieve feedback through surveying from a minimal of 300-500 females. In addition, we will conduct two experiments with 10 brand loyal participants in each. Our experiment will last four weeks long and each week we will give our participants a different brand of beauty products to test without them knowing what brand they are using. At the end of each week, we will receive feedback on the particular beauty products that were used, and at the very end of the experiment, we will assess which brand they liked the best. We hope this experiment will determine whether brand loyalty is the cause of consumer purchasing behaviors or if it’s based on the quality of the product itself. Budget We plan on spending $700.04. Below is the dissection of how we plan on spending this money: Food for focus group Papa Johns Pizza (12)

148.14

Coca-Cola (12 liters)

20.28 (Wal-Mart0

Plates (100)

20.56 (Chinet- Sams) 3.94 (Vanity FairTarget) 15.84 (Solo cupWalmart)

Napkins (150) Cups (100) Beauty Products Needed Foundation Mascara Eye-shadow Eye-liner Blush Lipstick Totals

Total: 208.76

MAC Covergirl Clinique Maybelline $29.50 (Pro Longwear $8.49 (TruBlend $7.99 (Fit Me $22.00 (Superbalanced) Foundation) SPF 10) Liquid) $4.99 $14.00 (Pro Lash) (Smudgeproof) $14.50 (High Impact) $8.49 (Lash Stiletto) $7.99 (Exact 14.50 Eyelights) $14.50 (Colour Surge) $5.39 (Eyeshadow Trio) $17.50 (Liquidlast $7.99 (LiquiLine Liner) Blast) $15 (Quickliner) $6.79 (Line Stylist) $5.69 (Classic $20 (Soft pressed $19.50 (Powder Blush) Color) powder blush) $4.99 (Fit Me Blush) $6.99 (Lip $6.49 (Colour 14.50 Perfection $14.50 (longlast lipstick) Sensational) 109.50 42.14 100.50 40.14

Survey Survey Monkey Prem. 1 yr. plan

199.00

Grand Total

700.04


Background This experiment is being conducted to gain a better understanding of cosmetic brand loyalty users, age 18 to 24, in the Muncie area. The four brands being used are Clinique, MAC, Maybelline and Covergirl. They were chosen because Clinique and MAC are two of the top higher end brands and Maybelline and Covergirl are two of top mass-produced brands. The cosmetic products being tested are foundation, mascara and lip gloss because research from popular blogs proved these three products were the most common staple products.

Question What factors are most influential to the cosmetic product brand loyalty of 18 to 24-yearold consumers in the Muncie community?

Hypothesis Consumers buy cosmetic products based on brand loyalty, which we have defined as consistent purchasing decisions (at least 6 months) based on factors including: price, ingredients, effectiveness, packaging, promotional campaigns and recommendations from friends and family.

Definitions For this experiment, three types of cosmetic products from four different companies will be used. The four companies being used are MAC, Clinique, Covergirl and Maybelline. The products being used for each company are foundation, mascara


and lipstick. Each week, each participant will be given these three products from one of the major beauty brands. The participant will not what brand they are using for the week, and at the end they will be asked a set of questions about the products. This will be repeated for three more weeks, using each brand. The cosmetic product the participant uses each week is the independent variable and the participant’s reaction to the product is the dependent variable. This group of participants will be given a series of questions in the pretest and after the treatment will be given the same set of questions in the posttest. The control will be a group of 10 people who will be given the pretest and a month later they will be given the posttest to see if their views change without any treatment.

Experimental Design The experimental design used in this experiment is a pretest-posttest control design. The first group will be receiving the make-up treatment and will be asked the same questions before and after the treatment. The control group will be asked the same questions as the group with the treatment, but they will not receive any make-up.

Sample We will be conducting one experiment over a four week period. The experiment will have 10 cosmetic brand loyal females 18-24 years-old who receive treatment and 10 cosmetic brand loyal females 18-24 years-old who will be in the control group and not receive treatment. Before the experiment begins, a screening survey will be given to potential participants that address the brands of make-up they use and any potential allergies.


The participants responses during the experiment will be kept confidential and they will be debriefed at when the experiment is complete.

Supplies ! 10 MAC Pro Longwear SPF 10 Foundation ! 10 MAC Pro Lash Mascara ! 10 MAC Lipsticks ! 10 Covergirl TruBlend Liquid Foundation ! 10 Covergirl Smudgeproof Mascara ! 10 Covergirl Lip Perfection Lipsticks ! 10 Clinique Superbalanced Foundation ! 10 Clinique High Impact Mascara ! 10 Clinique Longlast Lipsticks ! 10 Maybelline Fit Me Foundation ! 10 Maybelline Lash Stiletto Mascara ! 10 Maybelline Colour Sensational Lipsticks ! 10 Make-up Journals ! 30 generic foundation containers ! 30 generic mascara containers ! 30 generic lipstick containers ! Screening Surveys ! Pretest & Posttest Surveys

Method


Once the participants have been chosen, they will be randomly assigned into two groups; the experimental group and the control group. Each group will be given the same short survey and the control group will be dismissed until they are contacted again in a month. The experimental group will be given their make-up journals and instructions on how they should record their responses. They will record their responses at the end of each day and at the end of the week with each makeup. At the end of each week, they will switch to a different brand of make-up and repeat the same steps. At the end of the experiment, the experimental and control groups will be given the same survey they were at the beginning. Each group will be debriefed and all questions will be answered.

Limitations One of the limitations to the control group could be a participant chooses to change make-up during the month between the pretest and posttest, so their answers would change due to outside influences. Another limitation for both the experimental and control group is the possibility that other factors could influence their choices in make-up and change what make-up they are loyal to, like advertising campaigns or bad press.


Brand Loyalty in Cosmetics Allison Murphy Liz Mensching Mackenzie Davies Meaghan Sigman


Introduction WE ARE: •!

a local up-and-coming cosmetic brand

•!

interested in targeting a niche market of female consumers, age 18 to 24, in the Muncie area

•!

doing research to investigate the most effective ways to build a steady and loyal consumer base


Goals and Objectives •!

To gain a better understanding of cosmetics brand loyalty by users, age 18 to 24, in the Muncie area

•!

Knowledge will be used to help our new, small cosmetics company position itself in the current market

•!

Ultimate goal is to persuade consumers from our targeted population to be loyal to our cosmetic brand


Rationale Prestigious brands: •!

Maybelline

•!

o!

Established in 1915 by a NY chemist, but expanded into the brand we know it as during the 60s and 70s

o!

Bought by Loreal in 1996, giving the company access to a global mass market

Clinique o!

o!

•!

Mass-produced brands:

Established in 1968 as the world's first allergy tested, dermatologist-driven skin care line About 25% of annual sales come from foundation alone

MAC o!

Established in 1984 as a professional makeup line, which was eventually expanded to the general public

o!

Leading social media initiatives in the cosmetic industry (5 current programs)

•!

Covergirl o!

Founded in 1909 and was originally targeted at cover girls, or fashion models

o!

Most well-known for its wide variety of products and reasonable prices


Research Methods 1. Experiment 2. Focus Group 3. Survey


Experiment We are testing foundation, mascara and lip gloss !! !! !! !! !!

10 participants 4 weeks 4 cosmetic brands Pre-test/ post-test Screening survey

Budget: $1,524.40


Experiment Budget Products needed

MAC

Clinique

Covergirl

Foundation $29.50 X 10 $22.00 X 10 $8.49 X 10 (Pro Longwear (Superbalance) (TruBlend SPF 10) Liquid)

Maybelline

$7.99 X 10 (Fit Me Foundation)

Mascara

$14.00 X 10 (Pro Lash)

$14.50 X 10 (High Impact)

$4.99 X 10 $8.49 X 10 (Smudgeproof) (Lash Stiletto)

Lip gloss

$14.50 X 10

$14.50 X 10 (Longlast)

$6.99 X 10 (Lip $6.49 X 10 Perfection) (Colour Sensational)

$580

$510

$204.70

Totals

Grand total: $1,524.40

$229.70


Focus groups •!

Three focus groups conducted in the Muncie area

•!

Participants will be engaged in discussion questions about their cosmetic preferences

•!

Moderator will also conduct several activities with the participants to give the researchers more accurate results

•!

Incentives, including pizza and drinks, will be provided during the session

Budget: $208.76


Survey •!

Distribute through Survey Monkey; premium one-year plan

•!

Send to 18 to 24-year-old females in the Muncie area

•!

Expect to have 300 to 500 surveys completed

•!

Quantitative results so that we have measurable results that can be generalized to other communities as our company grows

Budget: $199.00


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ABOUT YOUR COSMETIC PURCHASING DECISIONS: 1. How many cosmetic products (makeup) do you use on a daily basis? ! 0 (only for special occassions) ! 1-3 ! 4-5 ! 6+ 2. Are you brand loyal to a specific brand of foundation? For the purpose of this study, brand loyalty is defined as purchasing exclusively from the company for a minimum of 6 months. YES NO 3. If you indicated that you are loyal to a brand of foundation, please list the brand: 4. Are you brand loyal to a specific brand of mascara? For the purpose of this study, brand loyalty is defined as purchasing exclusively from the company for a minimum of 6 months. YES NO 5. If you indicated that you are loyal to a brand of mascara, please list the brand: 6. Are you brand loyal to a specific brand of lip gloss? For the purpose of this study, brand loyalty is defined as purchasing exclusively from the company for a minimum of 6 months. YES NO 7. If you indicated that you are loyal to a brand of lip gloss, please list the brand: 8. To what extent do the following factors affect your cosmetic brand purchasing decisions? 1 = Not at all 4 = Very much Friends, personal recommendations: 1 2 3 4 Celebrity endorsement, approval: 1 2 3 4 Commercials, other promotional material: 1 2 3 4 Price: 1 2 3 4 Quality of ingredients: 1 2 3 4 Appealing packaging: 1 2 3 4 Accessibility of product: 1 2 3 4 Familiarity with the brand: 1 2 3 4 Familiarity with the product: 1 2 3 4 Other-- please indicate: ______________ 1 2 3 4 9. Of the reasons listed above, which has the most influence on your cosmetic purchasing behaviors? _____________ 10. Of the reasons listed above, which has the least influence on your cosmetic purchasing decisions? ________________


11. How much are you comfortable spending on one foundation purchase?: $_________ 12. How much are you comfortable spending on one mascara purchase?: $_____________ 13. How much are you comfortable spending on one lip gloss purchase?: $____________ 14. On a scale of 1-4, rate how comfortable you are with purchasing and using a new foundation: ! 1- Very comfortable. I jump at trying something new every chance I get. ! 2- Somewhat comfortable. I am generally open to trying new products if I am familiar with brand, etc. ! 3- Somewhat uncomfortable. I like what I have and need a good reason to try something new. ! 4- Very uncomfortable. I’d rather continue using what I know works for me. 15. Would you be more willing to try a new foundation if a sample was provided for you? YES NO 16. On a scale of 1-4, rate how comfortable you are with purchasing and using a new mascara: ! 1- Very comfortable. I jump at trying something new every chance I get. ! 2- Somewhat comfortable. I am generally open to trying new products if I am familiar with brand, etc. ! 3- Somewhat uncomfortable. I like what I have and need a good reason to try something new. ! 4- Very uncomfortable. I’d rather continue using what I know works for me. 17. Would you be more willing to try a new mascara if a sample was provided for you? YES NO 18. On a scale of 1-4, rate how comfortable you are with purchasing and using a new lip gloss:: ! 1- Very comfortable. I jump at trying something new every chance I get. ! 2- Somewhat comfortable. I am generally open to trying new products if I am familiar with brand, etc. ! 3- Somewhat uncomfortable. I like what I have and need a good reason to try something new. ! 4- Very uncomfortable. I’d rather continue using what I know works for me. 19. Would you be more willing to try a new lip gloss if a sample was provided for you? YES NO

ABOUT YOU:


1. Are you a female?

YES

NO

(survey is discarded if “no”)

2. Are you at least 18 years old, but not older than 24? “no”)

YES

NO

(survey is discarded if

3. What is your current job status? ! Full-time employee ! Part-time employee ! Unemployed ! Other-- please indicate: (student, stay-at-home mom, housewife, etc) 4. At what age did you begin regularly purchasing and wearing makeup? ! 10-12 years old ! 13-15 years old ! 16-18 years old ! 19-21 years old ! 22 + years old


Experiment Booklet Daily Journal This is a daily journal that you are to fill out at the end of each experiment day. We are trying to gauge why you did or didnâ&#x20AC;&#x2122;t like the product that was tested. Name________________________ _______________

Date

How do you feel about the foundation you wore today?

How do you feel about the mascara you wore today?

How do you feel about the lipgloss you wore today?

Would you recommend any of these products to your friends or family? If so, why?


Weekly Overview Once you have completed the experiment for the week, please fill out this journal. Name________________________ _______________

How do you feel about the the foundation you wore this week?

How do you feel about the the mascara you wore this week?

How do you feel about the the lip gloss you wore this week?

As a whole, how do you feel about the brand you tested this week?

Would you wear it regularly? If so, why?

Of the four brands tested, which do you think you tested this week?

Date


Focus Group Questions Welcome and Overview “Hello. My name is Allison Murphy and I will be moderating this session today. Welcome and thank you for participating in this focus group. The purpose of the focus group is to find out why 18 to 24-year-old females are brand loyal to certain cosmetic products.” “The underlying assumption that we are working with is that people are brand loyal for different reasons that vary between individuals. During today’s focus group, we specifically want to seek out which characteristics tend to influence brand loyalty the most.” “In order to analyze data, this session is being video and audio taped. Your names will not be used in any reports or public documents. Also, there are people behind the one-way mirror to listen to your opinions and view the session. If at any time you are uncomfortable with the discussion or don’t want to do something, please don’t feel that you have to participate if you don’t want do. At this point, is there anyone who would like to leave?” Q&A “Okay, let’s start the session. First, let’s go around the table and state your name, as well as your favorite cosmetic brand.” ! your names ! favorite cosmetic brand 1. How did you first become aware of this brand? 2. How have your friends and family influenced your brand loyalty of particular beauty products? 3. How frequently do you purchase the brand you mentioned and where do you purchase it? ! purchase frequency ! location of purchase 4. What is it that you like about these brands? 5. What characteristics do you look for in a cosmetic brand? ! [Possible responses - DO NOT READ unless needed to prompt responses] " price " packaging


! ! ! !

advertising quality convenience ingredients

6. If you were to endorse a two-minute commercial for one of the following cosmetic brands: MAC, Covergirl, Clinique or Maybelline, which brand would you choose and why? " Brand choice " Reason behind choice 7. Which line of beauty products between MAC, Covergirl, Clinique, Maybelline do you consider to reach the largest demographic? " Why do you think that? 8. What ways do you think beauty product lines target specific age groups? " Which beauty product lines do you feel represents your age group? " In what ways do the companies relate their products to your age group? 9. What are your staple beauty products? " [Possible responses - DO NOT READ unless needed to prompt responses] ! lip gloss ! mascara ! foundation ! blush ! eye shadow 10. If money were not an issue would you continue to purchase the same line or try another line? " If so, what brand would you try and why? 11. Are you aware of the ingredients used to make the line of beauty products you use? " How much does that affect your brand loyalty? 12. In front of you are four different brands of mascara; we are allowing you to keep one. Which brand would you choose? [allow time for answers, then ask question below]


! Why did you make that decision?

13. There is a piece of paper in front of you. Fold one piece of paper into fourths and list the three things that come to mind for each brand of beauty products: MAC, Covergirl, Clinique, Maybelline. [allow time to answer, then ask question below] ! Explain what you wrote for each line of beauty products and your reasoning. [excuse yourself to get any questions from the observers] Closing “Do you have any other comments that you would like to add to our discussion? Do you have any questions?” “Thank you for your participation! Your opinions are valuable and will help us find characteristics in cosmetic brand loyalty.”

Brand Loyalty of Cosmetics  

Research Methods Project to discover what makes customers brand loyal to cosmetic companies.