Acknowledgement

I deem it an utmost pleasure to be able to express the heartiest gratitude and deep sense of
devotion to reverend and worthy persons Mr. Sohaib Sattar and Ms. Aima Naqvi for their skillful
guidance, unfailing patience, inspiring attitude and invaluable suggestions and giving me an
opportunity to learn in the practical environment with their guidance throughout my training
period.

1
Table of Contents
Acknowledgement ........................................................................................................................................ 1
Table of Contents .......................................................................................................................................... 2
Chapter 1 Introduction of Derma Shine Pakistan ......................................................................................... 4
1.1 Brief Introduction ................................................................................................................................ 4
1.2 Nature of Organization ....................................................................................................................... 4
1.3 Organogram ........................................................................................................................................ 4
1.4 Mission ................................................................................................................................................ 5
1.5 Vision................................................................................................................................................... 5
1.6 Values .................................................................................................................................................. 5
1.7 Goals and Objectives........................................................................................................................... 6
Chapter 2: Marketing Management Practices at Derma Shine Pakistan...................................................... 6
2.1 Marketing Division .............................................................................................................................. 6
2.2 Marketing Environment ...................................................................................................................... 7
Micro Environment: .............................................................................................................................. 7
Macro Environment .............................................................................................................................. 7
2.3 Marketing Mix at Derma Shine ........................................................................................................... 7
People ................................................................................................................................................... 8
Product .................................................................................................................................................. 8
Price .................................................................................................................................................... 10
Place .................................................................................................................................................... 10
Promotion ........................................................................................................................................... 10
Chapter 3: Tasks and Duties at Internship .................................................................................................. 11
3.1 1st and 2nd Week ................................................................................................................................ 11
3.2 3rd and 4th Week ................................................................................................................................ 11
3.3 5th and 6th Week ................................................................................................................................ 12
Chapter 4: S.W.O.T Analysis of Derma Shine .............................................................................................. 12
4.1 Strengths ........................................................................................................................................... 12
4.2 Weakness: An Outcry of Skin Care Products..................................................................................... 13
4.3 Opportunities: Niche Markets .......................................................................................................... 14
4.4 Threats .............................................................................................................................................. 15
Chapter 5: Research Project ....................................................................................................................... 16
5.1 ABSTRACT .......................................................................................................................................... 16

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 5.2 INTRODUCTION ................................................................................................................................. 16
5.3 LITERATURE REVIEW ......................................................................................................................... 17
5.4 METHODOLOGY ................................................................................................................................ 19
5.5 FINDINGS ........................................................................................................................................... 19
5.6 CONCLUSION AND DISCUSSION ........................................................................................................ 19
5.7 LIMITATIONS AND RECOMMENDATIONS ......................................................................................... 20
REFRENCES .................................................................................................................................................. 21
Appendices.................................................................................................................................................. 22

3
Chapter 1 Introduction of Derma Shine Pakistan
1.1 Brief Introduction
Derma shine is the premiere consumer brand having its presence in Pakistan since 2014. It is a
product launch for its permanent company, Outdoor Girl Cosmetics United Kingdom, formulated
in Germany. Mr. Sohaib Sattar is the CEO of Derma Shine Pakistan and the sole distributor all
over Pakistan. Our experience extend since 2014 in cosmetics retailing and the support of its loyal
and ever expanding customer base, derma shine Pakistan has grown into a leading independent
retailer of quality cosmetics products. Our products are exclusively high end products from
renowned German companies and our employees are top qualified and are all certified by German
beauty companies. Derma shine Pakistan is an E-commerce startup which is doing business online
through social websites such as Instagram, Facebook. Along with these platforms it has an online
inventory at shopify.com as well.

1.2 Nature of Organization

Derma Shine Pakistan is an Online E-commerce startup of personal care and beauty products.
Derma shine centered on its core ingredients extracted from plants and mostly natural extracts
from herbs. These products are essentially a duplicate of a vital moisturizer that our bodies
naturally produce, but which diminishes rapidly as early as in our 20’s. Derma Shine returns what
was once naturally yours and gives the skin a natural looking glow from within.

1.3 Organogram
As stated above the company is launched a couple of years ago, so the team is not as big as its
competitors. The hierarchy is not that big. There are total basically 4 major departments in the
Company which are as follows

• Marketing/PR Department
• Human Resources Department
• Sales and Customer Support Department
• Customer Relations Department
• Logistics Department

Each department has 2-3 employees working who are responsible to complete their tasks
effectively and efficiently. Employees report to Miss. Aima Naqvi who is the managing director
at Derma Shine. She is looking forward to all tasks and activities that are being carried out in

4
customer support department, customer relations department, and in HR Department. Whereas all
the financial matters are looked by the CEO Sohaib Sattar.

CEO

Managing
Director

Executives
1.4 Mission
Derma Shine Pakistan has set itself the mission of offering all women and men nationwide the best
of cosmetics innovation in terms of quality, efficacy and safety. By meeting the infinite diversity
of beauty needs and desires.

• Offer quality and full beauty keys to our customers

• Share achievement with our team.
• Build long-term trust with our suppliers
• Follow to the values of good company citizenship

1.5 Vision
Derma Shine Pakistan will continue to strive its best to provide “Quality Products, Best Value and
Professional Service” for its customers to meet their ever increasing needs.

1.6 Values
Service of the markets of cosmetically and dermo-cosmetics with high class products and
trustworthy scientific and marketing support.

5
1.7 Goals and Objectives
• To build good reputation in the field of beauty and healthcare.
• Become a key player in the business.
• To serve the markets, with exclusive marketing lines, excellence in service and un-
comparable quality of products.

Chapter 2: Marketing Management Practices at Derma Shine Pakistan

2.1 Marketing Division
The marketing/ PR department is basically handled by Mr. Ubaid Arshad, he is the marketing
executive. Marketing department is majorly looking forward to the following things.

1. Public Relations
A great number of customers are attracted by the influencers and youtubers which we
engage during our social media campaigns. But its not that easy job as it seems to be. To
engage the Vloggers and influencers they are contacted via emails or telephonic
conversations. After discussions and negotiations a final PR package is sent to them. Once
the package has been mailed to the influencers review our products via their public
accounts. So from searching the suitable influencer, till sending them PR packages and till
their videos are uploaded on our social media pages all the work is carried out by the
marketing team.
2. Designing Promotional Content
All the content. Aesthetics, and promotional material is designed and executed by the
marketing department. It is either done In house or either the agency is contacted.
3. Product shoot
All the product shoot for Instagram, Facebook, and Website and shopify is done under the
supervision and direction of the marketing team.
4. Marketing Plan
Before the start of each month the plan for the upcoming month is decided and approved
by the CEO. This plan has slots and intervals for various marketing activities that shall be
carried out for the upcoming months.

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 5. Daily Posts on Social Media
Each day has its own plan and unique content for the customers and to keep our presence
active. So the marketing team comes up with new creative activities to engage the
customers.

2.2 Marketing Environment

The marketing environment of Derma Shine is as any other company. As the company is dealing
personal care products so there are couple things which are followed and observed strictly.

Micro Environment:
Like any other company, Derma shine also have have scarce and limited budgets for marketing
activities. However it is made sure that the budget is spent at the right place and time. The
marketing budget is the second most budget after the logistics department.

Derma shine is an E-commerce startup so maximum budget is spent on social media boosting. To
keep an edge over our competitors Derma Shine at large give promotional offers which has
provided the company a competitive advantage.

Macro Environment
Derma shine products are manufactured in Germany and packed and sealed at China. So there are
immense macro environmental pressure. The company have to meet the international standards to
avoid any inconvenience. Marketing beauty products is not that easy now a days due to the social
campaigns on anti-racist themes and equality for all. So the marketing team has to formulate and
design campaigns in such a way that no such message of racism, discrimination over color is
delivered to the end consumer. The words, images and graphic selection is tough also for such
sensitive products.

As discussed earlier, the products are imported from China so one of the biggest issues are of
Exporting them from Pakistan, due to this we are only operational nation-wide. Secondly our rates
are dependent on the rate of dollar so any fluctuation in the rates effect the pricing mechanism of
the company.

2.3 Marketing Mix at Derma Shine

Marketing Mix of Derma Shine the brand/company which covers 5Ps (Product, Price, Place,
Promotion and people) and explains Derma Shines marketing strategy. This section elaborates the
pricing, advertising & distribution strategies used by the company.

7
People
Within the Marketing Mix, "People" regards to the people that are employed to determine the
quality or service that an organizations customer will receive. All the employees at derma shine
are focused, motivated and well trained to do their jobs. Since the company is new in the market,
every day is a new opportunity to learn, grow and practice. Employees complete their tasks as per
defined time lines.

Product
Derma shine is one of the leading companies providing skincare, cosmetics etc. All the products made by
German laboratories are based on the basic 3 steps of cleansing, exfoliating and moisturizing. All the
products manufactured are clinically tested by dermatologists and are manufactured as per the standards of
allergy tested, 100% fragrance free and suitable for different types of skin. Derma shine started with the
mission of providing beautifying products for women but the company is in process to manufacture men’s
product line as well and became the first women's cosmetic company to introduce men’s range. Main reason
for the success of Derma Shine is its adaptability to change as per the needs of its customers and coming
up with variety of products by keeping the growing trends of the market. The company has not limited itself
to skin care but has increased its product portfolio in its marketing mix by introducing make up products.
Below is the product line provided by Derma Shine for different categories:

Skin Care Range:

1. Facewash Range

• Oil Free foaming Facewash

• Tea tree facewash
• Pomegranate Facewash

2. Face Scrub Range

• Lightening face scrub (Fruits • Blackhead Removing Scrub

Extracts) • Whitening foaming scrub
• Charcoal Scrub
• 3in1 Mask (Anti-
Imperfections)

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3. Facial Cleanser Range

• Orange Extract Cleanser

• Blackhead Removing Cleanser

4. Facemask Range

• Cucumber Mask
• Lemon Peel Off Mask
• Charcoal Mask

5. Sunblock Range:

• SPF 45 • SPF 60
• SPF 50 • SPF 70

6. Cleansing Milk Range:

• Cucumber Cleansing Milk

• Whitening Cleansing Milk

7. Bleach Range:

• Hand and Foot Lightening Bleach Cream

• Skin Lightening

8. Skin Toner
9. Skin Polisher
10. Feet and Hand Foot Range:

• Pedi Soak • Pedi Lotion

• Pedi Scrub
11. Anti-aging Kit
12. Pink Kit (Toner, Eye Cream, Face cream)

9
Price

Derma Shine caters the need of middle-class people, those who believe in the quality of the product
and at an affordable cost. As Derma Shine is always associated with the quality products, the prices
of the products are slightly at the higher end. The strategy used is prestige pricing in its marketing
mix. The pricing mix of Derma shine aims to clear the typical thinking of our society that only
high-priced products can provide best results and are good for skin, which is not the case. Derma
Shine pricing helps to create a brand value and convinces the customers that the product provides
an added value as compared to its competitors.

Place

Derma Shine became one of the first cosmetic brands which provided the online store for
purchasing for its customers. Derma Shine anticipated the power of online media and how this can
help the brand to increase the sale. Apart from this, the company has always believed in setting up
physical stores to provide the customers a feeling of belongingness. These physical stores have
few trained consultants who assist the customers with their skin related queries. This creates a
positive brand image and a sense of real care in customer’s mind. Derma Shine products are
available at all leading stores such as Al-Fatah, Enem store, Imtiaz Store nationwide.

Promotion

Derma Shine products are best in the skin and beauty care segment. It is because of the product
quality that makes them the market pioneers. They use various promotional techniques to attract
their customers. They follow below the line marketing technique i.e. they go for Public service
campaigns and advertisements on social media. They also follow strategies such as trade fairs and
promotional events. They also come up with magazines named Aurora. They have a active
presence in social networking sites such as Facebook and Instagram. This covers the entire Derma
Shine’s marketing mix.

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Chapter 3: Tasks and Duties at Internship
3.1 1st and 2nd Week

The first week was one of the toughest for me as I had to understand the objectives and had to have
in depth understanding of the products. But my supervisor was kind and helpful throughout my
initial phase at Derma Shine. Before joining Derma shine there was actually only one person
handling the digital marketing at derma shine so things were a bit un organized an un documented.

My first task was to align the messed-up PR work, Documentation at work place. I properly filed
every document relating to budget, PR, packaging etc. The second task which was assigned to me
was of a promotional campaign for Chand Raat and Eid since Eid ul Fitar was just around the
corner. It was an exciting as well as challenging for me as I never had prior experience designing
and executing a promotional campaign before. it took me 4 hours when I came up with the theme,
idea and content for this campaign. Luckily it got approved and appreciated by me supervisor and
other colleagues there. That was the time I was appreciated and felt empowered and motivation
for other tasks which were yet to be assigned.

Soon after Eid I along with my Supervisor planned 2-month marketing plan i.e. for July and
August. For that I searched for the influencers and Vloggers who would be reviewing our products
on their social pages. I contacted and emailed the proposals to Farrah Harris, Nisho Khan, Nadia
Hussain and Glossips. Soon we had them on board after negotiations. I also had to allocate the
budget for PR and Social media spending and get approvals from the CEO.

3.2 3rd and 4th Week

From 3rd week I was rotated to the sales department. It was quite a stressful yet a great learning
experience for me. As Derma Shine is an E-commerce platform hence all the orders were received
from social platforms like Instagram and Facebook. I was assisting the Instagram team, and for it
we used to take orders from Instagram message portal. We used to spontaneously cater our
customers while replying and assisting them with vigilance and respect as per the decorum of sales
and marketing pitch. The most important aspect of this activity was to take orders, confirming the
order and then acquiring the complete postal address information from the customers. It was one

11
of the toughest part of this work as most customers used to share partial information with us which
later created problems in the delivery process.

The second stage was to draft an order sheet on excel in which we used to enter the customer order
along with the delivery information shared by the customer. I used to update the order sheet on
daily basis and then it was sent to the warehouse where all the orders were assembled and then
sent for delivery to the courier company.

3.3 5th and 6th Week

In the last two weeks I handled the complaints and managed the complaint sheet. I was actually
acting as a liaison between the courier company and the customers. I used to manage and keep
record of the complaints relating to Delivery of products, Quality of Products, Order Mistakes and
Billing Errors. The main objective of this task was to rectify the issues and give immediate and
best customer services to our valuable clients and customers. I also used to cater the complaints
that were logged by the clients on our social media pages and then used to call them and provide
them with immediate solutions. This task literally helped me develop my patience level and helped
me polish my Customer services skills. Since the company outsourced the courier services, so
majorly the complaints were of the late deliveries or repeated order deliveries.

Chapter 4: S.W.O.T Analysis of Derma Shine

Derma Shine is an emerging name in the cosmetic and beauty world. Their extensive portfolio of
skin and skin care products is the reason why this brand is the only one offering so many
inexpensive as well as luxurious beauty options. Although the company has many strengths, it also
has a few concerning weaknesses and threats. This SWOT analysis of Derma Shine explains it all.

4.1 Strengths

A variety of products

Many companies decide to branch into this industry with a product line or two. But Derma Shine
is fully invested in this space and has been since they were founded. You’ll see this brand while
walking through the makeup, hair, and skincare aisles of renowned department store. Derma

12
Shine portfolio of products is astounding. It clearly dominates this industry because they’ve
acclaimed such high-profile products under their name.

High Quality

Derma Shine doesn’t just offer inexpensive products. They’ve also moved into the luxury brand,
offering high-quality products for the individual who shops on a richer budget. Or if a customer
wants a bit of both worlds — cost-effective and expensive — they can easily find what they’re
looking for through Derma Shine

Moving into Organic

Consumers want glowing and Flawless skin. And for many, that means less chemicals and
questionable ingredients in their skin products. It’s more costly for companies to use natural
ingredients, but Derma Shine didn’t hesitate. On top of putting an end to testing on animals in
2012, they now offer a complete natural and organic line of products.

Endless Research

Since Derma Shine has so many products in different niches of the beauty and cosmetic industry,
the company relies heavily on research and development. Consumers want products that work, but
are also safe for their bodies. That means understanding how to offer sun protection in skin care
and makeup products. And cutting out sulfates, parabens, and silicones from hair products. Derma
Shine works with dermatologist, cosmetologists, and scientists to provide the top-of-the-line
products customers crave.

4.2 Weakness: An Outcry of Skin Care Products

Growing Saturation

It seems there’s a new skin care line debuting every day now. More products for dry skin, acne
and specific ethnicities are vying for attention. Although these are all just segments in skin and
makeup care industry, it is affecting Derma Shine. Even though the company may not be worrying

13
about these new names, they’re still competing with other big companies. Like Garnier, Doctor
Derma, Genessen etc.

Shrinking Profit Margins

Derma Shine heavily invests in research and development. They must if they want to keep their
customers happy. Unfortunately, it’s massively expensive. And it’s eating away at their profits- at
least as compared to their competitors. Still, focusing so heavily on research and development is
how Derma Shine has stayed competitive in this saturated market. So, this is both a strength and a
weakness for the brand.

Scarce Retail Outlets

Derma shine has an E-commerce sale network, but there is a market segment which prefer buying
products from retail shops for their convenience. But derma shine has a limited scope of retail
network which is one of the biggest flaws as far as I have observed.

4.3 Opportunities: Niche Markets

Product Expansion

Derma Shine can easily move into newer spaces in the beauty industry, like hair products,
fragrances, perfumes, essential oils. People are always looking for the newest, best product for
their body. The likelihood of that changing any time soon is basically zero percent. Derma shine
can branch out into developing economies and countries where saturation isn’t as prevalent. They
have the means and the brand recognition to achieve this.

Niche Consumers

This is where Derma Shine should put more emphasis. Although Derma Shine does have a focus
on fair skin tones or darker skin tones, they’re competing against companies who only work in
these niches. Since Derma Shine is in selected sector of the cosmetic and beauty world, some
people are less inclined to work with them. Mostly because Derma Shine provides products for

14
everyone rather than one specific demographic. This can mean the company isn’t “focused”. But
Derma Shine has the means to change customer minds.

More Organic

Eco-friendly shoppers want products that are both helpful for their body, but not taxing on the
environment. Other customers are looking for specific products that are sulfate, paraben, and
silicone-free. The demand for natural and organic products is high right now. Derma Shine should
put even more focus here.

4.4 Threats

Quick Changes

The cosmetic industry moves quickly. One day, people are falling over themselves about a new
facewash. It gets endless five-star reviews and endorsements. Then the next day, a newer product
comes out. It’s now in the spotlight and the facewash is long forgotten. Keeping up with such
demand can be taxing. Especially when the competition is chomping to move ahead, even if they
have to use small marketing tactics to get it.

Tricky Cash Flows

Let’s be honest: the economy isn’t always steady. It depends on several factors. Although one
country can be flourishing, another may be quickly on the decline. If Derma Shine does business
in declining economies, it will affect cash flow. It’s not as if cosmetic and beauty products are a
necessity. So, if people don’t have extra cash to spend on the products, they won’t.

Market Uncertainties

Since Derma Shine is importing its products from Germany and China, and the trade taxes have
been dynamic and inconsistent over the period of time. Moreover, the lead time is also very
unpredictable in our market, so what I think is that there is a need of a reliable flawless mechanism
should therefore be devised.

15
Chapter 5: Research Project
Research Topic: Studying Brand Loyalty in the Cosmetics Industry

5.1 ABSTRACT
The purpose of this research is to know the brand loyalty and contribute to the knowledge that how
brand credibility, brand awareness, brand association, perceived quality, and product knowledge
is important to build brand loyalty.

5.2 INTRODUCTION
In today's highly competitive environment, organizations are looking all the time for new ways to
maximize their brand loyalty in consumers and there are some factors due to which loyalty toward
brand can be increase. Those are brand credibility, brand association, brand awareness, perceived
quality and product knowledge. This research "BRAND EQUITY IN COSMETIC INDUSTRY"
is conduct to know the brand loyalty of the consumers towards their brand.

The brand credibility is a factor that could holds the buying behavior of consumers. However, just
like with any type of triggers, it can have a positive or negative effect. In this case, it relates to
your reputation of brand, information of brand and its ability (or inability) to convert that into
sales.

The term brand equity means the increase in the value of brand due to the name of that product or
brand. Brand loyalty is a power of brand earned over time by its goodwill and name recognition
which increases its sales volume and higher profit margins against competing brands. Brand
awareness is an important way of promoting a product. This is because for these products, there
are some reasons and factors that differentiate one product from the other competitor product.
Therefore, the product that has the highest brand awareness as compared to its competitors will
usually get the highest sales. The way by which a specific brand is associated with the other product
category in consumers mind (share of mind). Often a consumer will call the product by its name
of that brand rather than the general name. Perceived quality refers to a consumer's intangible
perception of the whole quality or superiority of a product or service - their overall feeling about
the brand Perceived quality is that providing information and values by giving reasons that why
customer or consumer should buy that brand and by differentiating their brand from other
competing brand. It is concluded that consumer perception of quality will be associated with their
brand loyalty. Customer wants to buy or perceive such brand that is offering superior quality .and

16
is become loyal with that brand. Providing information about the brand is also important to attract
customer and build loyalty of the brand.

5.3 LITERATURE REVIEW

Brand Credibility

Names of a brand have high credibility; and a line can easily lunch by the company and company
can easily extend their brand. Above all, it relates to your reputation of brand, information of brand
and its ability (or inability) to convert that into sales. The belief on the information contained by
the brand and ability of a firm to deliver what they promise. The brand credibility is the
believability of brand which entails brand promises [Erdem and Swait, 1998]. The concept of
credibility contains two dimensions includes trustworthiness and expertise whereas
trustworthiness denotes the brand promise and expertise denotes willing to deliver or capability of
delivering [Erdem and Swait, 1998].

Brand Awareness

The ability of the consumer to identify a brand is called brand awareness. [Keller, 2003]. Brand
awareness takes the form of recognition of a brand and recall of a brand. Recognition of brand is
full explanation of the brand and provides full information about the brand to consumer, consumers
can easily differentiate the brand from other competing brand and can identify previously seen or
heard [Ergin et. al 2005, Papista, Dimitriadis 2012]. Many brands can be recognized by the
consumer but they recall only small number and sometimes recall only one brand. Recognition of
brand is considered as the minimum level of awareness of the brand and provides help to recall a
brand [Holden, 1993; Laurent et al., 1995; Mariotti, 1999].

Recognition of brand is important by consumer while chooses or selecting a brand at the point to
purchase a brand. Loyalty begins when the customer knows about the product and have full
information about the product [Aaker, 1991, Jamal et al. 2012]. The possibility of a product
purchase will be increase if customer has information and he knows about the product.

Brand Association

Brand associations are difficult, consist of many ideas and are connected with one and provide
strong facts that made brand knowledge [Yoo et al., 2000]. Brand association is formed by the
believability of the consumer on brand, which may or can be built by the marketer or by the

17
consumer personally by experienced or by using the product himself [Aaker, 1991]. The belief of
the consumer on the brand has impact on their repurchase and in choosing a brand. Brand
association is considered as important for loyalty of a consumer toward their brand [Aaker, 1996,
p. 8]. Anything relates to a brand is called brand association [Aaker 1991]. Brand Association is
the combination of product related attributes and no product related attributes [Kaller, 2003] but
in services, it contains core services and some supporting services [Gronroos, 2007].

Brand Loyalty

The composite perspective of loyalty of a brand firstly suggested by Day [1969] and later other
researchers supported it. [E.g. Jacoby, 1971; Dick and Basu, 1994, Kim, Lee 2011]. The approach
to claim the loyalty that one is truly loyal with the brand, consumer must have a favorable attitude
toward the brand in order to repurchasing it. Brand loyalty is defined as the result from non-
random, long existence response of behavior and it was a process of mental purchase formed by
some certain decision units who considered more than one brands [Jacoby and Olson, 1970, Chen
et al. 2011]. Loyalty toward brand is a commitment to rebuy or repurchase a specific product
consistently in the future, [Oliver, 1999]. Dick and Basu, [1994] explained loyalty construct, the
mixture of "relative attitude and patronage behavior". The other dimension of loyalty included the
cognitive loyalty, this dimension is higher level dimension which involved customer decision
making process to evaluate alterative products. Gremler and Brown, [1996] extended the concept
of loyalty to the intangible products and their definition of service quality contains three
components included purchase, attitude and cognition. Purchase means the repeat purchase,
attitude means that customer shows the positive feelings towards service provider and the cognitive
process means to use only this provider when a need of service exists.

Perceived Quality

Perceived quality is defined as a buyer's subjective evaluation of a product [Zeithaml, 1988;

Grewal, Monroe and Krishnam, 1998]. Perceived quality is defined as an intangible perception of
the consumer on whole quality or superiority of a product or service .consumer feeling the brand
[Ramaseshan and Tsao, 2007]. Percieve Service Quality means consumer judgements about
product or brand values [Aaker, 1991] and the product dominance that leads consumer towards
selection of particular goods or services [Aaker and Jacobson, 1994].

18
Differentiating the brand from other brand and giving value to customers by providing reason to
repurchase the brand again and again. It is observed that consumer perception of quality will be
associated with their brand loyalty. Customer wants to buy or perceive such brand that is offering
superior quality [Bolton and Drew 1991, Khraim 2011].

Product Knowledge

Product knowledge that estimates how the brand is perceived by the customers and how customers
evaluate the brands; product knowledge measure the bond between the consumer and the brand.
The knowledge that helps to differentiate products or services from the others is known as product
knowledge [Kotler and Keller, 2009, Lai et al., 2010]. The evaluation of a brand by the consumer
and the information about the brand in the mind of consumer is called product knowledge.

5.4 METHODOLOGY
This research has been conducted in order to find out the brand loyalty in the cosmetic industry of
Pakistan and to find out the loyalty of customers for these cosmetics brands. For this purpose a
sample of 50 questionnaires were filled. The questionnaire for this research was adopted from the
study (Ms. Amanda Spry, Dr Ravi Pappu, and Professor T. Bettina Cornwell). The questionnaires
were filled from the students of different departments of the university who were the customers of
any one of the cosmetic brand user from the four main cosmetics brand in Pakistan named as
L’Oréal, Ponds, Johnson & Johnson, and Etude.

5.5 FINDINGS
The findings of the analysis reveals that there is a significant positive relationship between brand
loyalty (dependent variable) and brand credibility, brand awareness, brand association, perceived
quality, product knowledge (independent variables). So hypotheses are supported by statistical
analysis. So according to researcher's knowledge most of the Respondents are satisfied with their
brand and consumer are more loyal with L’Oréal brand.

5.6 CONCLUSION AND DISCUSSION

Good brand is vital to an organization and this research has reflected how cosmetic industry has
managed to be just that. it is clear from the analysis survey carried out that the cosmetic industry
adopting global branding to its higher standard and that exactly how global presence of any
cosmetic industry is taken to highest level of success. So far cosmetic industry has been able to be
one of the best businesses.

19
The research is conducted to know the brand loyalty of consumers toward their favorites brand
and how brand credibility, brand awareness, brand association, perceived quality effects brand
loyalty. Brand credibility can increase loyalty of a consumer toward brand and it has positively
effect on brand loyalty as previous researcher [Erdem and Swait, 1998]. The relationship between
brand awareness and brand loyalty is significant and brand awareness is highly effect the brand
loyalty as previous researcher founded [Aaker, 1991], brand association influences on brand
loyalty and have significant positive relation with brand loyalty and the result of this research
supports the previous research [O'Cass and Lim (2002]. The relation between perceived quality
and brand loyalty is also significantly positive and quality that consumer perceived also influences
brand loyalty and [Kayaman and Arasli, 2007].

However, the study found that brand awareness in cosmetic industry is the most important
dimension among other independent variables (brand credibility, brand awareness, brand
association, perceived quality, product knowledge) effecting brand loyalty and knowledge about a
product is also important for loyalty toward brand if consumer have max knowledge about the
product he became loyal with his brand.

5.7 LIMITATIONS AND RECOMMENDATIONS

Loyalty of a consumer toward four cosmetics brand of Pakistan. Limited research had done on this
topic and according to the researcher's knowledge it's first of its kind. The researcher's carried out
research only in Lahore city and the results of this study are limited by the specificity of the
geographic context by taking a sample of 50 respondents of only one department from population
of total so on larger scale reality may differ. Increase sample size will help in increasing
generalizability and validity of study more research should be done on the topic in Pakistan to
reveal the facts according to this research no doubt most of the students have trust on their brand
that they consume but there is always a room for improvement so there is a need to enhance brand
trust. Like overall reliability on brand loyalty. We suggest further study will be large size and can
be expanded to more universities in areas near to Lahore for more specific results. Cosmetic
industry must focus on brand association, perceived quality, product knowledge, brand credibility
in order to build Brand Loyalty. The results of present research shows that the brand awareness is
highly influence on brand credibility and cosmetic industry can increase the loyalty of their
consumer toward their brands by providing them awareness about their brands. More the

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awareness, more the loyalty toward their brand [McCarthy et al., 2001] and the consumer are more
loyal with the L'Oreal brand then all other brands.

REFRENCES
Aaker D.A., 1991, Managing Brand Equity, Free Press, New York, NY, 19-32. Aaker D.A. 1991,
Managing Brand Equity, the Free Press, New York. Aaker D.A. 1991, Managing Brand Equity,
Macmillan, New York, NY. Aaker D.A. 1996, Building Strong Brands, Free Press, New York, NY.

Keller K.L. 2003, Strategic Brand Management: Building, Measuring and Managing Brand
Equity, Pearson, Upper Saddle River, NJ.

Khraim H.S., 2011, The influence of brand loyalty on cosmetics buying bahavior of UAE female
consumers. International Journal of Marketing Studies. 3, 2.

Kim T., Lee H.Y., 2011, External validity of market segmentation methods: a study of buyers of
prestige cosmetic brands. European Journal of Marketing, 45, 1/2, 153-169.

O'Cass A., Lim K., 2002, Toward understanding the young consumer's brand Associations and
ethnocentrism in the lion's port, Psychology and Marketing, 19, 9, 759-775.

Zeithaml V.A., 1988, Consumer perceptions of price, quality, and value: a means-end model and
synthesis of evidence, Journal of Marketing, 52 July, 2-22.

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Appendices
What is your age bracket? (Tick as applicable)

• Under 20 years
• B. 21-30 years [ ]
• C. 31-40 years [ ]
• D. 41-50 years [ ]
• E. Over 50 years [ ]

2. Marital Status?

• Single [ ]
• Married [ ]
• Other (specify) [ ]

3. What is your highest level of education?

• Secondary [ ]
• Diploma [ ]
• Undergrad degree [ ]
• Post Graduate [ ]
• Other (specify) [ ]

What is your average monthly income?

• Less than R15000 [ ]

• Between R15000-R20000 [ ]
• Between R20000-R35000 [ ]
• Between R35000-R45000 [ ]
• Above R50000 [ ]

5. What is your frequency of shopping?

• Once a month [ ]
• Twice a month [ ]
• Three times a month [ ]

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 • Four times a month [ ]
• More than four times a month [ ]

Section B: Determinants of brand loyalty

Part I: Brand trust a determinant of brand loyalty

Strong Strong
Questions Agree Neutral Disagree
Agree Disagree
Brand
reputation
influences
brand loyalty?
Brand
predictability
influences
brand loyalty?
Brand
competence
influences
brand loyalty?
Switching cost
influences
brand loyalty?
Peer influences
brand loyalty?

Part II: Satisfaction a determinant of brand loyalty

Please indicate the level of agreement with the following statements:

23
 Strong Strong
Questions Agree Neutral Disagree
Agree Disagree
Do you agree
that brand
reliability
influences
brand loyalty in
cosmetic
products?
Do you agree
that
information
quality affects
brand loyalty in
cosmetic
products?
Do you think
past interaction
of cosmetic
products
influences
brand loyalty?
Do you agree
that perceived
quality
influences
brand loyalty?

24
Section C Brand loyalty in cosmetic products

Please indicate how strongly you agree with these statements:

Strong Strong
Questions Agree Neutral Disagree
Agree Disagree
I intend to buy
this brand in
the future?
I intend to buy
other products
of this brand?
I consider this
brand as my
first choice in
this category?
Will I continue
to be a loyal
consumer for
this brand??
I will
recommend this
brand to
someone who
seeks advice?

25