A STUDY ON CONSUMER BEHAVIOUR

AT
GROOM INDIA SALON & SPA PVT. LTD. – NATURALS
Submitted to the
UNIVERSITY OF MADRAS
In partial fulfilment of the requirement
Of post Graduate Degree in
MASTER OF BUSINESS ADMINISTRATION
By
SANJAIKUMAR D
REGISTER NO. 712100485
2021-2023

Under the Guidance of

Shri. I VENKATESH
M.A., M.Phil., HDCM, HDSC, FDPM-IIMA

FACULTY MEMBER

Shri G SURESH
M.C.A., MBA. DCBM, FDPM (IIMA)
DIRECTOR

NATESAN INSTITUTE OF COOPERATIVE MANAGEMENT

(An Institution of National Council for Cooperative Training, NCCT, New Delhi
Ministry of Cooperation, Government of India, New Delhi
Accredited by C-PEC BIRD - Lucknow)
2377– A, IV Avenue, Anna Nagar, Chennai – 600 040
 VIVA – VOCA CERTIFICATE

This is to certify that SANJAIKUMAR D (712100485) is the student of Natesan Institute of

Cooperative Management, Chennai; the Project Work entitled “A STUDY ON CONSUMER
BEHAVIOUR AT GROOM INDIA SALON & SPA PVT. LTD” for the award of degree of Master
of Business Administration by the University of Madras and submitted to the External Examiner for
the Viva-Voce held on __________________

Place: Chennai

Date:

INTERNAL EXAMINER EXTERNAL EXAMINER

THE DIRECTOR NICM

 GUIDE DESK

The Project work report “A STUDY ON CONSUMER BEHAVIOUR AT GROOM INDIA

SALON & SPA PVT. LTD” is carried out under my direct supervision and guidance by Mr.

SANJAIKUMAR D (712100485) for the award of degree master of business

administration and the report is purely original work at GROOM INDIA SALON & SPA
PVT. LTD”, CHENNAI

Place: Chennai

Date:
Signature of the Guide.

Shri. I VENKATESH
M.A., M.Phil., HDCM, HDSC, FDPM-IIMA

FACULTY MEMBER
 DECLARATION BY THE CANDIDATE

I SANJAIKUMAR D hereby declare that the Project work report “A STUDY ON

CONSUMER BEHAVIOUR AT GROOM INDIA SALON & SPA PVT. LTD” is

based on an original study conducted by me under the guidance and supervision of an

internal guide Shri. I VENKATESH, FACULTY MEMBER. That has submitted for

the award of, the degree of MASTER OF BUSINESS ADMINISTRATION for the

UNIVERSITY OF MADRAS, Chennai and this report has not been previously

submitted for the award of any other degree, diploma, fellowship and any other similar

titles.

Signature of the Candidate

Place : Chennai
Date :
 ACKNOWLEDGEMENT

I have great pleasure to study at the Department of Management

Studies in Natesan Institute of Cooperative Management, Govt. of India, in Chennai,
Which is having national network in the country. During my academic period, the
institute shaped me as a complete intellectual candidate to work in the competitive
world. Therefore I would like to express my sincere regard and gratitude to our beloved

Director Shri. G. Suresh, M.C.A.,MBA.,DCBM.,FDPM(IIM), for giving me an opportunity

to conduct a study and take part in this Project Work Report

I put forward my sincere thanks to Course Coordinator Shri.P.Raja

Balachandran, Faculty Member, for all the support provided related to the Project
Work Report.

I acknowledge my heartfelt thanks to my Project Work guide Shri. I

Venkatesh, M.A., M.Phil., HDCM, HDSC, FDPM-IIMA for his valuable guidance, suggestions
and encouragement from time to time throughout Project Work Report.

I also like to record with gratitude to the Office staff members, staff
members of Department of Management studies and the Librarian for their timely
assistance.
 CHAPTER – I
INDUSTRY PROFILE
1.1 GENERAL INTRODUCTION
The beauty industry refers to the production, distribution, and marketing of personal grooming,
cosmetic, and fragrance products and services, including skincare, hair care, makeup, personal care,
and fragrance products. The industry is highly competitive and constantly evolving, with new trends
and technologies emerging regularly. It is dominated by a few large multinational corporations, but also
includes many small and medium- sized companies. The global beauty industry is expected to continue
growing, driven by increasing consumer demand for personal grooming and cosmetic products, as well
as a growing middle class and rising disposable income in many countries. The industry is also driven
by advancements in technology, which have allowed for the development of new and innovative
products and treatments.

1.2 INDUSTRIAL BACKGROUND

The salon industry refers to the business of providing personal grooming and beauty services, including
hair styling, nail care, skin care, and massage. The history of the salon industry can be traced back to
ancient civilizations, where people sought out grooming and beauty treatments for personal
enhancement and as a symbol of social status.

The modern salon industry began to take shape in the 18th and 19th centuries, with the rise of
urbanization and the growth of the middle class. In Europe and North America, salons became popular
gathering places for the wealthy, where they could socialize and receive beauty treatments. Over time,
salons evolved to become more accessible to a wider range of customers and offer a wider range of
services.
In the 20th century, the salon industry continued to grow and evolve, with the rise of chain salons and
the increasing use of technology and scientific advances in the beauty sector. Today, the salon industry
is a multi-Billiondollar industry, with a large and growing market in many countries around the world.

Overall, the salon industry has a rich history and has played an important role in shaping the way we
think about personal grooming and beauty. The industry continues to evolve and adapt to meet the
changing needs and preferences of consumers, and is an exciting and dynamic sector with many
opportunities for entrepreneurs and professionals.

Grooming is now an essential part of everyone’s lifestyle, be it in the metropolitan cities or the smaller
towns across India. Consumers are no longer reliant on just home remedies, and therefore want to reach
out to professionals for their beauty needs. Smaller towns are opening up to gender-neutral salons,
where even men can not only get their beards groomed and hair cut, but also opt for a facial or a
manicure and pedicure.

Beauty has always been aspirational –– the young girl or boy who purchases smaller, local brands, sees
themselves being able to afford an international brand in the future. Thanks to the global exposure
available on the internet and social media, they are now able to envision their future and work towards
achieving it.

1.3 SCOPE
The salon industry encompasses a wide range of beauty and personal care services, including hair
styling, nail care, skin care, and massage. The industry is constantly evolving to meet the changing
needs and preferences of consumers, and as a result, new services and treatments are being introduced
all the time.

In terms of geographical scope, the salon industry is present in many countries around the world, with a
large and growing market in areas such as North America, Europe, and Asia. The industry is also
highly fragmented, with a mix of large chain salons and smaller independent businesses operating in
the market.

In terms of market size, the global salon industry is expected to continue growing in the coming years,
driven by factors such as increasing consumer interest in personal grooming and the rise of the middle
class in many countries. The industry is also benefiting from advances in technology and the increasing
availability of high-quality products and equipment.

Overall, the salon industry offers a wide range of opportunities for entrepreneurs and professionals
looking to start a business or build a career in the beauty and personal care sector. Whether you are
interested in hair styling, nail care, skin care, or massage, there is a role for you in this exciting and
dynamic industry.

1.4
1.5 KEY MARKET TRENDS

The salon industry is constantly evolving, and there are several key market trends shaping its future:

1. Personalization and Customization: Consumers are seeking personalized and customized

experiences, and salons are responding by offering tailored treatments and services to meet
individual needs.
2. Men’s Grooming: There has been a growing demand for men’s grooming services, and many
salons are now offering specialized treatments and services for male clients.
3. Technology: The use of technology in the salon industry is increasing, with many salons now
offering online booking systems, virtual consultations, and mobile apps to enhance the
customer experience.
4. Wellness and Self-Care: The focus on wellness and self-care continues to drive demand for spa
and massage services, and many salons are incorporating these offerings into their services.
5. Eco-Friendly and Sustainable Practices: with growing awareness of environmental issues,
consumers are seeking out eco-friendly and sustainable salons, and many salons are adopting
green practices to meet this demand.
6. Remote Work: The trend towards remote work has created new opportunities for mobile and
freelance services, as people seek out beauty treatments from the comfort of their own homes.
7. Hybrid Services: With the COVID-19 pandemic, many salons are offering hybrid services,
with a combination of in-person and virtual options to meet the needs of their clients.

These trends are shaping the future of the salon industry, and those who stay ahead of them are likely to
be well-positioned for success in the years to come.

1.6 RECENT DEVELOPMENTS

Some recent developments in the salon industry include:

1. Online Booking and Contactless Services: With the rise of technology, many salons are now
offering online booking and contactless services to provide customers with a convenient and
safe way to book appointments and access services. This includes virtual consultations, mobile
payment options, and contactless check-ins.
2. At-Home Services: With the COVID-19 pandemic, many salons have adapted to offer at-home
services to meet the needs of customers who are looking for safe and convenient options. This
 includes mobile services, where stylists and technicians visit customers' homes to provide
treatments.
3. Focus on Sustainability: There is a growing focus on sustainability in the salon industry, with
many businesses looking to reduce their environmental impact. This includes the use of eco-
friendly products, recycling and composting programs, and energy-efficient equipment.
4. Personalization and Customization: Salons are now offering more personalized and customized
services to meet the individual needs of customers. This includes customized hair, skin, and nail
treatments, as well as personalized product recommendations.
5. Virtual Training and Education: With the move towards remote work, many salons are now
offering virtual training and education to help stylists and technicians develop their skills and
stay up-to-date with the latest trends and techniques.

These recent developments are helping to drive growth and innovation in the salon industry and are
shaping the future of the sector.
 CHAPTER-II

RESEARCH DESIGN

2.1 Review of literature

THE CONCEPT OF CONSUMER BEHAVIOUR

Behaviour is what a person does. It can be defined as the observable and measurable activity of
human beings. Human behaviourism regular, not despotic; systematic not random. Inducements or
needs cause the human behaviour. Human behaviour is a part of naturalistic system. Behaviour is
basically goal oriented. In other words behaviour is in general motivated by a desire that it may obtain a
goal. Behaviour consists of anything a person or animal does which can be observed in other way.
Behaviour, unlike mind or thoughts or feelings can be observed, recorded and studies.
The decision process involves the mental, emotional, and physical that people engage in when
selecting, purchasing, using, and disposing of products and services so as to satisfy needs and desires.
To make purchases, consumers go through a buying decision process that can be thought of as solving a
problem.

Definitions of Consumer Behaviour

According to Hoyer, McInnis ( 2008),“Consumer behaviour reflects the totality of consumers‟
decisions with respect to the acquisition, consumption, and disposition of goods, services, activities,
experiences, people, and ideas by (human) decision-making units (over time).”

According to Kotler and Armstrong (2004),“Consumer buyer behaviour refers to the buying
behaviour of final consumers- individuals and households who buy goods and services for personal
consumption. All of these final consumers combine to make up the consumer market.”According to
Solomon (1996), “Consumer behaviour is the process involved when individuals or groups select,
purchase, use, or dispose of products, services, ideas or experiences to satisfy needs and wants.”

Peter F Drucker (1988) was apt in saying, “it is the consumer who determines what business
is…. What the consumer thinks he is buying, what he considers „value‟ is decisive – it determines what
a business is, what it produces and whether it will prosper”. The importance of consumption was
recognized even in early periods when Adam Smith (1776) stated that “consumption is the sole end-
purpose ofall production”.
The study of consumer behaviour is the attempt to understand and foretell human actions in
buying process. Consumer behaviour surrounds an immense area comprising of consumer motivation,
preferences, purchasing patterns, buying process and shopping behaviourist. Thus, the study of
consumer behaviour concentrates an answering to these questions, “why, when, where, what and how
do the consumers buy”.

Engel, Kollat and Blackwell (1970) define consumer behaviour as “acts of individuals directly
involved in obtaining and using economic goods and services, including the decision processes that
precede and determine these acts”. They add further that though theword behaviour is used to include
only the overt or observable actions, itis increasingly being recognized that the overt purchasing act is
only one(the discernible) portion of the decision process. Consumer behaviour, viewed more rationally,
would include the less discernible, but nevertheless important process that underlie and accompany
consumption. In effect it involves the study not only of what people consume but when, how often, and
under what condition goods and services are consumed.

CONSUMER BUYING PREFERENCES

The individual consumer has a set of preferences and values whose determinations are outside
the realm of economics. Consumer preferences are defined as subjective (individual) tastes. The present
section reviews various studies that investigated on consumer buying preferences with respect to dairy
and other relevant products.

2.2 STATEMENT OF THE PROBLEM:

1) Study helped to know about customer’s expectation and opinion.

2) This Study helped to know the different services provided by naturals.

3) This researcher is also focus on changing preference of customers because in today’s time there
are so many best option for customers for every naturals services.

2.3 Objectives:

• To Understand the factors that influence consumers to choose a specific salon, including
pricing, location, service offerings, and online reviews.
• To Explore the impact of social media on consumers' decision-making process when it comes to
choosing a salon, including the role of influencer marketing and user-generated content.
• To Evaluate the effectiveness of various marketing strategies employed by salons to attract and
retain customers, including promotional offers, referral programs, and loyalty rewards.
• To understand the influence of retail salon location on consumers shopping for apparels

2.4 SOURCES OF DATA

2.4 (a) Primary Data
The data collected first hand by one, is known as primary data.
The primary data have been collected by using structured questionnaire from the customers
identified randomly from the company for the study. The questionnaire consists of 100 statements
relating to potential source of pressure. These statements relate to customer buying behaviour,
 brand conscious, price of the product, durability, etc... Respondents were asked to express their
level of opinion on a questionnaire.
2.4 (b) Secondary Data
The data which is already collected by the agencies and then used by others is called secondary data.
In this project secondary data is collected from internet sites, newspapers and magazines.

2.5 Sampling Plan

Sampling plan used for the Collection of data required for this research study is Random
sampling. In this type of Sampling particular unit of the population is selected which is typical or
representation of the whole.

Sample size
Sample size of the server is One fifty (150) customers.

Sampling
Research conducted by considering only few the few you need for population is called
sampling.

2.6 Data collection instruments:

2.6 a) Tools and techniques of data collection:

The primary data are collected through questionnaire. The structured questionnaire which
consists of 20 questions is used as a research instrument for collecting the necessary information
for the research. The first part of the questionnaire that is question 1 to 6 consists of questions
relating to the demographic profile of the respondents and the remaining questions are relating
to the objectives of the study.

Here, close ended questions and open ended questions are used.

A close ended question is a question format that limits the respondent with a list of
answer choices from which they must choose to answer the question. Commonly these types of
questions are in the form of multiple choices either with one answer or with check-all-that-
apply, but also can be in scale format where respondent should decide to rate the situation along
the scale continuum similar to the questions.

2.6 b) Statistical tools used for data analysis:

Analysis techniques are used to obtain findings and arrange information in a logical
sequence from the raw data collected. After the tabulation of data the tools provide a scientific
and mathematical solution.
 a) Chart:
Bar chart and pie chart are used for analysis to get a clear idea about the tabulated data.
b) Percentage analysis:
Percentage analysis shows the entire population in term of percentage.
It reveals the number of people preferring a particular thing, etc.

Percentage = Number of respondents X 100

Total number of respondents
c) Weighted average:
Mean in which each item being averaged, multiple by a number (weight) is based
on the item‟s relative importance. The result is summed and the total is divided
by the sum of the weights. Weighted average is used extensively in descriptive
statistical analysis such as index numbers.

∑WX

Weighted average = ------------

∑W

2.7 Data Processing and analysis plan

• This study is to analyse and find out the customer buying behaviour on NATURALS
services.
• After collecting the data, it is analysed and the result of the analysed data has been
interpreted in the form of tables and charts

2.8 Limitation of the Study:

• The study is restricted to Pondy bazaar branch, Chennai. Hence it may not be possible to generalize
the finding to the entire population of the country;
• Some of the respondents may not give accurate information, as they may not like to reveal their actual
identity, income etc;
• There may be some positive and negative biases of the respondents;
• Shopper’s may not have the patience to answer all the questions accurately;
• Consumers would like to portray themselves as trendy and elite and may not give their actual
preferences.
• Promotions and sales may temporarily draw the attention of price conscious customers who otherwise
may go for unbranded apparels from smaller unorganized retailers. With all limitations and
shortcoming, an honest enquiry was undertaken
 CHAPTER – III

ORGANISATION PROFILE

3.1 HISTORY AND ORIGIN OF THE ORGANISATION

Naturals was conceived with the idea of the modern Indian. Founded by K. Veena, whose knowledge
of the international beauty industry pioneered a new era in the hair and beauty care industry in India,
Naturals has made a path-breaking change in the way the beauty industry has been perceived.

In the early 2000s, she made that dream a reality by setting up her first salon in Chennai. It took her
only a while to understand the market potential and the ever-increasing demand for professional
grooming. In 2004 her husband co-founder & CEO, CK Kumaravel joined and ever since then, the
Naturals team has been able to meet every challenge in this competitive industry with a strength of 711
salons across India, and 400+ of them being Women entrepreneurs with a salon in Sri Lanka as well.

Today, Naturals is India’s most prominent chain of hair and beauty salons.

3.2 TIMECHART OF THE COMPANY

2006 – FIRST FRANCHISE

2008 – LAUNCH OF NATURALS TRAINING ACADEMY

2009 – 100+ SALONS ACROSS INDIA

2011 – SIGNING ON ACTRESS GENELIA AS THE FACE OF NATURALS

2013 – 250+ SALONS ACROSS INDIA

2014 – SIGNING ON ACTRESS KAREENA KAPOOR AS THE FACE OF NATURALS

2015 – 500+ SALONS ACROSS INDIA

2017 – STARTED FRANCHISING NATURALS TRAINING ACADEMY

2019 – 600+ SALONS ACROSS INDIA

2021 – LAUNCH OF NATURALS SCHOOL OF MAKEUP

2022 – 700+ SALONS ACROSS INDIA

TIMELINE

3.3 ACHIEVEMENTS OF THE COMPANY

2011 – INDIA

2012 – INDIAN RETAIL FORUM AWARD FOR BEST HEALTH & BEAUTY RETAILER

2013 – IMAGES RETAIL AWARD FOR THE MOST ADMIRED SALON

CII SOUTHERN REGION EMERGING ENTREPRENEURS AWARD

2015 – SAM EVE SOOPER LADY AWARD

IMAGES RETAIL AWARD FOR MOST ADMIRED RETAILER OF THE YEAR

2016 – GOLD TROPHY, BEST SMALL SCALE PRIVATE ORG AWARD

2017 – PROMISING RETAIL BRAND 2017

2018 – BEST INCLUSIVE WORKPLACE

2019 – INSPIRATIONAL BUSINESS ICON

RETAIL ICONS OF INDIA

WOMEN ON A MISSION AWARD

BCN AWARD
3.4 DIVISIONS OF ORGANISATION

The world of Naturals can be classified into four.

Exclusive Brands:

3.5 NATURALS PROVIDES FRANCHISEING OPPORTUNITY:

Brand Category:

The unisex salon chain provides high-quality beauty service and hygiene at affordable rates.
Franchise
 Space Required 1000 – 1500 sq. ft
 Approx investment 50 – 55 lakhs
 Franchisee sign up fees 6 lakh + GST
 Royalty 15% of monthly sales
 ROI 24 – 30 months

The Signature salon line provides exclusive beauty offerings with premium service and products.
Franchise
 Space Required 1200 – 1800 sq. ft
 Approx investment 60 – 70 lakhs
 Franchisee sign up fees 8 lakh + GST
 Royalty 15% of monthly sales
 ROI 24 – 30 months
Naturals Ayur provides a mix of modern beauty treatments and traditional ayurvedic therapies under
one roof, with special treatments based on Indian traditions and knowledge.
Franchise
 Space Required 1200 – 1800 sq. ft
 Approx investment 55 – 65 lakhs
 Franchisee sign up fees 8 lakh + GST
 Royalty 15% of monthly sales
 ROI 24 – 30 months

Naturals School of Makeup teaches the art of makeup and the in-demand skills required to be a
professional in the beauty industry.
Franchise

 Space Required 1000 - 1200 sq. ft

 Approx Investment INR 25 - 35 Lakhs
 Franchisee Sign-up Fees 5 Lakh

Franchise
 Space Required 400-600 sq. ft
 Approx. Investment INR 15 – 20 Lakhs
 Franchisee Sign-up Fees 3 Lakh + GST
 Royalty 15% of monthly sales
 Royalty ROI 24-30 months
Franchise
 Space Required 1000-1500 sq. ft
 Approx. Investment INR 1 Cr.
 Franchisee Sign-up Fees 12 Lakh + GST
 Royalty 15% of monthly sales

3.6 The Naturals Nationwide Wave

 700+ SALONS

 22+ YEARS

 20+ STATES

 7000000 HAPPY CUSTOMERS

 400+ WOMENPRENEURS

3.6 VISION OF THE ORGANISATION 2025

Vision:
Striving to take the brand to a broader perspective, making our presence known globally.
To create women entrepreneurs, maximizing their wealth.
Mission:
Providing excellent services to the customers with innovation, and technology through various
products and services.
Goal:
To create 3000 outlets by 2025 through franchising
SWOT ANALYSIS OF THE ORGANIZATION
A SWOT analysis is a tool used in small business planning that evaluates the Strength, Weakness,
Opportunities and Threats in your market. The power of a SWOT analysis is two- fold, by exploring
the strength and weakness of your competition you can identify a niche that may be untapped and other
area that may lead to greater business success.

Second, a SWOT analysis guides you as you identify your own weakness. This will help you anticipate
the threats you may face and then maximize your strength to compensate for the weakness you
identified by conducting this type of analysis, you can develop a marketing strategy that sets you apart
from the competition.

STRENGTH

 Strong Brand & Reputation

 Services are offered by well Educated staff
 Prime Location
 Clean & Welcoming Atmosphere
 Adapting to new trends

WEAKNESS

 Price is little high

 Communication

OPPORTUNITIES

 High job opportunity

 Expanding Salons & Exploring services

THREATS

 New & existing Competitors

COMPETITORS

 GREEN TRENDS
 TONY & GUY