International Consumer Behaviour

This report explores international consumer behaviour and its significance for business growth. It focuses on the case of Larry Cosmetics, a herbal cosmetic company based in the UK, and their decision to expand into the Indian market. The report discusses the reasons for choosing India, the product model, and the brand equity model. It also covers segmentation, targeting, and positioning strategies for the company. Overall, the report highlights the importance of understanding consumer behaviour in international markets.

International Consumer
Behaviour

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Introduction of company..............................................................................................................3
Reason for the country choice......................................................................................................3
Product model..............................................................................................................................4
Segmentation, targeting and positioning......................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................1

INTRODUCTION
When the company is doing business in the market then to understand international
consumer behaviour or the buying behaviour and the factors related to purchase decisions is
important for the business to achieve goals (Kasemsap, 2018). Larry cosmetics is the herbal
cosmetic company which is known for authentic beauty products. This study will discuss the
company and the market share and in which country it will expand. Further, explain that what is
the reason of making the choice of company like competition, consumers etc. it will also explain
product model as well as brand equity model. Segmentation, targeting and positioning of the
company will be done.
MAIN BODY
Introduction of company
Larry cosmetics is the herbal cosmetic company which is based in UK. It has started in
2000 with the aim to manufacture and supply chemical free cosmetic products. They have good
market share in UK because nowadays people are more concern about their skin so prefer herbal
cosmetics over chemical one. As cosmetics which are not herbal are loaded with chemical so this
is also the reason that larry have good market share. Now company want to increase their market
share so planning to perform business at global level and ready to go in India.
Reason for the country choice
India is chosen for further expansion by Larry cosmetics because of the massive use of
cosmetics by Indian so company found that launching company in this market can be helpful for
increasing the sales which will increase profit and now worldwide people are preferring herbal
products over chemical based products to enhance the beauty (Reisch and Zhao, 2017). As to be
healthy is trending nowadays so consumer also want safe option in the cosmetic industry as well.
Company has researched and found that there are less herbal cosmetic company in India so India
is the best option to target as company can grow in Indian market. Less companies means less
competitors which means more profit.
It is always the wish of people to look attractive and good but now they are searching for
healthy options. With the passing time the demand for herbal cosmetics is growing day by day
and giving more opportunities to herbal based business. Nowadays consumers have many
options, so they are not ready to compromise on beauty products and go for chemical beauty
products. In India people now has started using cosmetic products more as compare to earlier

times and now also people are more educated in India, so they know the harmful effects of
chemical cosmetics, that is why they want natural or herbal products which increase their beauty
without damaging their skin (Spangenberg and Lorek, 2019). Herbal products have ingredients
like neem, aloe Vera, rose petals, sandalwood etc. so with these ingredients Indian are more
familiar with, so they will take no time in purchasing the products.
Product model
Kotler's five product level model:
This framework is used to evaluate the product.
Core benefit:
It refers to the satisfaction level of consumers and their needs satisfy when they take goods or
services. Here the need is for herbal products which is increasing day by day so that will help the
company in getting core benefit (Swaminathan and et.al., 2020).
Generic product:
It means that products only have that characteristics or features which is necessary for the
products. In the herbal products which is manufactured by larry cosmetics have herbal ingredient
which make them different from other cosmetics as they are harmless for the body.
Expected product:
It is the set of characteristics that buyers agree when they make a purchase (Kotler, 2017). As
buyers now expect chemical free products so after that larry company has come with herbal
cosmetics then consumers easily agree to spend money to purchase the product.
Augmented product:
This means that when the company includes extra feature, advantages or attributes which help
the company in differentiating the product from the competition. The feature which makes larry
cosmetics different from their competitor's product is their ingredients which are herbal and also
their price range which is less as compare to competition (Gorbatov, Khapova and Lysova,
2018).
Potential product:
This means that the transformation and changes which can be held in the product in the future.
To gain customer loyalty, business should bring discounts or extra benefits to the customer by
continuously providing augmented products. This will attract customers to make a purchase.
Keller’s Brand Equity Model

It has four levels of brand equity pyramid.
Identity:
Creating identity should be the priority so that people can recognize the company. Here larry
cosmetics created their identity as the renowned herbal cosmetic brand (Keller's Brand Equity
Model., 2021).
Meaning:
It means that what you are as the company, so performance is used to judge that how the product
is able to satisfy the customers the price which is set by the company is lower than the
competition without compromising on the quality and also comes in easy to use packaging
(Campelo, 2017).
Response:
It means that what consumers are feeling or have response on the brand. The herbal products are
liking by them and have great response.
Relationship:
It means the relationship which is between the customer and brand. Strong relations can help the
company in retaining the customers. It brings customer engagement and enhance customer
loyalty so that they can bring new customers (Camilleri, 2018).
Segmentation, targeting and positioning
Segmentation:
It means segmentation on the basis of range of the products which include professional
based products and consumer based products (Romppanen, 2021).
Demographic segmentation: segmentation which is based on characteristics like income, gender,
age, occupation etc.
Gender segmentation: larry cosmetics has segmented the Indian market because they have
product which is made from natural ingredient and have low price because in India people are
attracted towards natural items as from ancient times these people are suing herbs as beauty
products.
Income segmentation: company has segmented high class people and middle class people and
launch the product range accordingly.
Age segmentation: company will target mostly young people whose age range from 16-4 years
as they are more conscious about the skin.

Benefit segmentation: under this company will launch different herbal products which have extra
benefit to attract more customers.
Targeting:
The main target of the company is the middle class young females who are very possessive with
the skin and hair and have knowledge about the benefits of herbal products (Imaningsih, 2018).
That is why company do promotion in such a manner that can target their audience.
Positioning:
Larry cosmetics will hire Indian celebrity for the promotion because celebrities are the role
model of the people and will purchase what they advertise. This will differentiate this brand from
the domestic brand because of the cheap price and the quality given by the company. Company
target middle class people whose income is limited that is why price of goods are also cheap.
Company will also plan to launch many programs which will benefit to the society that will help
the company in getting better brand reputation.
CONCLUSION
Through this report it can be concluded that consumer behaviour plays vital role in the
growth of the company. Larry cosmetics identify the opportunities in Indian market and is
planning to launch the products their because of low competition in the herbal sector. Two
models are explained in the report which are Kotler's five product level model and Keller’s
Brand Equity Model so that international consumer behaviour can be understood effectively. In
the last STP of company is done which has shown that company will target middle class young
people because they are the massive users of the herbal cosmetics.

REFERENCES
Books and journals
Camilleri, M.A., 2018. Market segmentation, targeting and positioning. In Travel marketing,
tourism economics and the airline product (pp. 69-83). Springer, Cham.
Campelo, A. ed., 2017. Handbook on place branding and marketing. Edward Elgar Publishing.
Gorbatov, S., Khapova, S.N. and Lysova, E.I., 2018. Personal branding: interdisciplinary
systematic review and research agenda. Frontiers in psychology.9. p.2238.
Imaningsih, E.S., 2018. The model of product quality, promotion, price, and purchase
decisions. Jurnal Ekonomi.23(2).
Kasemsap, K., 2018. Mastering social media in the modern business world. In Social media
marketing: Breakthroughs in research and practice (pp. 111-137). IGI Global.
Kotler, P., 2017. Philip Kotler: some of my adventures in marketing. Journal of Historical
Research in Marketing.
Reisch, L.A. and Zhao, M.I.N., 2017. Behavioural economics, consumer behaviour and
consumer policy: state of the art. Behavioural Public Policy.1(2). p.190.
Romppanen, J.M., 2021. Segmentation, Targeting & Positioning (STP).
Spangenberg, J.H. and Lorek, S., 2019. Sufficiency and consumer behaviour: From theory to
policy. Energy Policy.129. pp.1070-1079.
Swaminathan, and et.al., 2020. Branding in a hyperconnected world: Refocusing theories and
rethinking boundaries. Journal of Marketing.84(2). pp.24-46.
Online
Keller's Brand Equity Model., 2021. [Online]. Available through:
<https://www.mindtools.com/pages/article/keller-brand-equity-model.htm>
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