MBA404: Consumer Behavior Analysis for Garnier Shampoo Purchasing

This report provides strategic recommendations to address declining customer loyalty for Garnier shampoo. It analyzes the market scenario, consumer behavior, and factors influencing purchasing decisions, including perception, motivation, cultural background, and lifestyle. The report examines consumer behavior theories, such as the theory of reasoned action and motivation-need theory, to understand purchasing patterns. It also outlines the five stages of the purchase decision-making process: need recognition, information availability, evaluation of alternatives, making a purchase decision, and post-purchase behavior. Based on the analysis, the report offers marketing strategies and customer retention methods to regain customer trust and improve brand loyalty for Garnier shampoo. Desklib provides access to this and other solved assignments to aid students in their studies.

Running head: CONSUMER BEHAVIOUR FOR PURCHASING FMGC
PRODUCT
Consumer Behaviour for Purchasing FMGC Product
Name of the university
Name of the student
Author note

1CONSUMER BEHAVIOUR FOR PURCHASING FMGC PRODUCT
Executive summery
The purpose of this paper is to present strategic recommendations addressing the
issues of reduced customer loyalty in the case of Garneir shampoo. It has been observed that
despite having positive feedbacks from the market the company is on the verge of losing their
market share for decreased customer base. Although, there are Negative Feedbacks,
Company did not really take them seriously. At first, providing an overview of the product,
Garneir shampoo, and its potential in its market segment has been analysed. The report has
critically examined the market scenario and consumer behaviour to understand the trend
among the consumers. The five levels of making purchasing decisions has been considered as
crucial part as it help the marketers to integrate marketing strategy with that psychology. This
analysis includes different driving factors such as perception, motivation, cultural
background, family and lifestyle differences that help the organization to have an idea on
consumers purchasing decisions. According to that, logical and strategic recommendations
have been provided. As per the outcome of market analysis, this report has tried to make a
strategic approach towards framing entirely different marketing strategy for the mentioned
product.

2CONSUMER BEHAVIOUR FOR PURCHASING FMGC PRODUCT
Table of Contents
Introduction....................................................................................................................3
Overview of FMCG product: Garneir shampoo............................................................3
Critical analysis of data..................................................................................................4
Consumer behaviour theories.....................................................................................5
Purchase decision.......................................................................................................6
Recommendations..........................................................................................................8
Conclusion......................................................................................................................9
References....................................................................................................................11

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Introduction
The report aims to suggest strategic recommendations for a product of FMCG sector,
which has confronted with a challenging situation regarding customer loyalty (Rishi 2013).
The proportion of repeat purchases has become surprisingly low. Management has identified
the issue as a result, of poor market research as well as have decided to conduct extensive
market analysis to understand contemporary customer behaviour in order to increase both the
sales and customer loyalty. At first, providing an overview of the product, Garneir shampoo,
and its potential in its market segment will be analysed. The report will critically examine the
market scenario and consumer behaviour to understand the trend among the consumers. This
analysis includes different driving factors such as perception, motivation, cultural
background, family and lifestyle differences that help the organization to have an idea on
consumers purchasing decisions (Srivastava 2013). According to that, logical and strategic
recommendations will be provided. As per the outcome of market analysis, this report will try
to make a strategic approach towards framing entirely different marketing strategy for the
mentioned product.
Overview of FMCG product: Garneir shampoo
Garneir is the second largest brand of L’Oreal group dealing with international hair
care and skincare ranges with availability of various sub-brands of hair care like Ultra
DOUX, Fructis, Ultra Blends and many more (www.garnierusa.com, 2018). The mission of
the brand is to provide innovative as well as affordable hair care solutions to satisfy the
requirements of both men and women. Recently, as reported, the company is collaborating
with UNICEF to serve social and environmental sustainability purposes. Their concentration
always remains on differentiating products infused with natural elements. The target audience
had widely accepted the hair care range by Garneir after its market launch largely because of

4CONSUMER BEHAVIOUR FOR PURCHASING FMGC PRODUCT
its blend of essential natural ingredients. It did not take much time to come under the
limelight. However, with the progression of time it has been observed that shampoos of this
company is not doing business well. Customer loyalty has decreased at a level from where it
is difficult to recover if necessary measures are not taken at the earliest.
Considering the market trend of choosing organic products Garneir introduced several
variations of shampoo previously. Garneir Ultra Blends Revitalizing Shampoo, Garneir Ultra
Blends Nourishing Shine Shampoo and Garneir Ultra Blends Intense Repair Shampoo are
assumed as popular among the youngsters the most. Whereas, Garnier Fructis Sleek & Shine
Shampoo is used irrespective of age groups. Since the day of market launch, the products
have been creating positive approach towards female customers the most (Frank, Enkawa and
Schvaneveldt 2014). Acknowledging the recent market scenario, as per (Srivastava 2013), the
objective of this report is to identify the consumer behavior, which is influenced by several
factors such as, perception, lifestyle, cultural background and many more. An extensive
market research and critical analysis of data will assist to understand the phycology behind
purchasing decisions of different consumers.
Critical analysis of data
According to the responses collected from the market survey, the company has
received both the positive and negative feedbacks. The products are mostly used by above the
age of 10 years. On average, the demand of its hair care range is the highest among the age
group of 10 to 30 years. Whereas, 70% of female consumers prefer to use Garneir shampoo,
on the contrary only 30% male considers Garneir as reliable brand. Consumers have different
preferences regarding washing their hair, according to hair type and choosing budget for their
toiletries (Helm and Landschulze 2013). It has been observed from the research that several
factors like culture, lifestyle preferences, attitude towards the products determine purchasing

5CONSUMER BEHAVIOUR FOR PURCHASING FMGC PRODUCT
behaviour (Haghshenas et al. 2013). In order to understand, consumer behaviour related
theories can be consulted.
Consumer behaviour theories
According to Hennig-Thurau and Hansen (2013), competitive business environment
of 21st century encourages the marketer to think of creative marketing principles to draw
attention of maximum number of potential customers. Before framing the strategies,
marketers consider human behaviour in order to understand psychological and economic
aspects. Theories of consumer behaviour help to address issues regarding their purchasing
practice both individually and in groups, the levels of purchasing decisions and attitude after
purchasing and many more. A well-understood market scenario helps marketers to enhance
the effectiveness of campaigns to influence customers the most.
 Theory of reasoned action: According to Montano and Kasprzyk (2015), a
consumer takes a specific action expecting specific consequences. As per the studies
of Siu, Zhang and Yau (2013), in the case of Garneir shampoo if consumers feel that
the products are not meeting their expectations, they decide not to retain by switching
off to some other brands. Marketers must realise consumers’ interest in terms of
gaining positive results.
 Theory of impulse buying: Whereas, other theories of consumer behaviour focuses
on rational buying; Hawking Stern solely believe on the concept of impulsive
behaviour of customers being influenced by advertisements. Marketers explore this
opportunity of impulsiveness by using creative ideas while conducting promotional
activities (Imam 2013). As Garneir carries an international brand image consumers do
not think twice before investing and tend to switch off if the expectations are not
being fulfilled.

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 Motivation-need theory: Garneir, while designing hair care range researched
immensely to find out what are the basic issues women are facing regarding
maintenance of hair. The company has designed various shampoos for versatile need
of hair, which make the customers’ think about purchasing to satisfy their needs. The
problem begins when some customers misestimate their needs and fail to understand
the hair type. Eventually, stop using Garneir shampoos being dissatisfied.
These theories are prediction of consumers’ purchasing decisions and marketer can
frame strategies according to predictable patterns of their behaviour. Although, impulsive
buying is a noteworthy part, sensible thinking and decision-making process effect the
marketing procedures more dominantly (Shekhar and Raveendran 2013).
Purchase decision
There are five stages, which customers consider while selecting a product for buying.
These stages have been identified evaluating consumers’ psychology while purchasing and
experience after purchasing a product. It is true that there are impulsive buyers, yet most of
the buyers invests time and considers options rationally before purchasing. The stages of
purchasing are as follows.
 Recognition of need: The desired product must have some purpose to serve in
consumers’ lifestyle. In a case of selecting a shampoo, female consumers seek for
something, which reduces hair fall and make the hair damage free mostly. A large
proportion of men does not really bothered about what effect it is delivering for them
a good fragrance is priority. Although, teenagers irrespective of genders, attentively
follow the advertisements and a tendency of maintaining good looks are noticeable
among them (Parmar 2014). However, they are that segment of the market, where
customers frequently change their choices and switch between one product to another

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for the sake of experiment. Therefore, Garneir must focus on the age group of 20 to
30, as they are sensible buyers in terms of fulfilling specific needs.
 Availability of information: Marketers are responsible for creating the brand
awareness via printed or media advertisements and social networking sites to ensure
highest accessibility of the information for the consumers. As described in Leeflang et
al. (2014), advanced technology and extensive usage of smartphones enable the
consumers to search as well as compare products for resolving their problem. Garneir
must make the marketing sector firm enough to penetrate knowledge of customers
about the hair care range.
 Evaluation of alternatives: As mentioned before, evaluation and comparison
depends on information. After gathering information potential consumers examines
the attributes to see if the product would be helpful for them or not. Technically, if the
buyer has to emphasis on the consequences they tend to research extensively before
choosing a product. Garneir shampoos must deliver the results that they have
promised in their promotions; otherwise, task of customer retention would be
difficult.
 Making purchase decision: This is the critical stage where actual purchase is done.
Consumers seriously consider both the positive and negative feedbacks regarding
product. Product pricing or economic condition of the target market play a crucial role
here.
 Post-purchase behaviour: Consumers have a plenty of time to decide whether they
should switch to other products or not entirely based on satisfaction level. It has been
observed from the journal Gunnell et al. (2014), this feeling of satisfaction or
dissatisfaction is integrated with difference between their initial perception and actual

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performance. Consumers, who are rational enough and whose shopping behaviour is
highly consequence oriented, they will not further invest on such ineffective products.
Garneir shampoo concentrates on every kind of hair needs. Starting from oily scalp to
dry or damaged hair to dull; solution of almost every hair hazards are presented by the
product range. However, losing the customer loyalty is not a healthy sign for a business.
Therefore, in recommendation section along with better marketing strategies, customer
retention method will be discussed as well.
Recommendations
As per the goal of initial survey, it was conducted to determine consumer perception
towards the use Garneir shampoo and its satisfaction level. After gathering feedbacks from 50
respondents it has been concluded that Garnier has a decent market position where 70% of
females and only 30% of males prefers to use Garnier shampoo. However, according to the
balance sheet the tendency of rebuying has reduced at a large scale from the previous year. In
this section, consumers’ psychology will be integrated with marketing principles to regain the
trust of customers and the objective would be to transform the feasible strategies into
sustainable practice of organisation (Martínez and del Bosque 2013).
Before determining the strategies, it is important to understand the reason behind such
downfall. The general reasons are as follows.
 Loyal customer base can be disappeared if marketers choose unethical methods of
promotions, which eventually helps to raise customers’ expectations (Leonidou,
Leonidou and Kvasova 2013). When customers cannot integrate the results with
expectations, they switch to other brands.
 E-commerce websites and internet share a pack of information, which are transparent
and helps to fix business deals. Failed loyalty programmes, and inability of
identifying market trend can be the biggest reason for losing customer loyalty.

9CONSUMER BEHAVIOUR FOR PURCHASING FMGC PRODUCT
It does not take much effort to establish a solid customer base if product quality is
delivered as it has been promised in the first place (Segoro 2013). Keeping it as a key
strategy, some strategic recommendations can be mentioned acknowledging the scenario.
 Company needs to conduct several contest programmes with every purchase to make
the buying experience exciting. They can organise free hair treatments in L’Oreal
salon for lucky winners. Although, it should be kept in mind these are instant
techniques of increasing the profitability. Company needs to focus on market trend
and issues to make a long-term approach.
 E-commerce websites are tools of measuring customer satisfaction. In order to handle
Negative Feedbacks Company must take actions without any delay. Marketers can
communicate and ask customers virtually how their experience can be improved or
they can assist if consumers are confused between products according to exclusive
needs.
 Celebrity endorsement is common among international personal care brands.
However, advertisements will be more appealing if along with celebrities positive
feedbacks of consumers can be presented via advertisements or virtual posts.
 Communicative participation of both the customers and customer care executives will
help to obtain an idea of market trend and demand. The service must be consumer
oriented. Garneir must be aware enough about the evolving nature of consumers’
requirements. Ultimate customer retention strategy is to pay attention and differentiate
accordingly (Vera 2016).
 Briefly, transparent presentation of product information, avoidance of unethical
marketing practices, improving within the capabilities to enhance customer
experience and providing quality product is ultimate solution in terms of customer
retention.

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Conclusion
Consumers’ psychology depends on various factors including cultural background,
lifestyle choices, economic condition and attitude towards the brand mostly. As far as
retaining customers and maintaining market loyalty are concerned, marketers need to present
the shampoos honestly through promotional activities. Customers should not be influenced
with false hopes rather delivering them the actual idea will be helpful for them, as they tend
to integrate initial perception with the ultimate result. To conclude, it can be stated that
Garneir has a well-established international brand image yet authority must address the
ongoing issues regarding customer base to sustain in a competitive business scenario of 21st
century. Strategic recommendations can be applied to mitigate issues and regain the
customers’ trust.

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References
Frank, B., Enkawa, T. and Schvaneveldt, S.J., 2014. How do the success factors driving
repurchase intent differ between male and female customers?. Journal of the Academy of
Marketing Science, 42(2), pp.171-185.
Gunnell, K.E., Crocker, P.R., Mack, D.E., Wilson, P.M. and Zumbo, B.D., 2014. Goal
contents, motivation, psychological need satisfaction, well-being and physical activity: A test
of self-determination theory over 6 months. Psychology of Sport and Exercise, 15(1), pp.19-
29.
Haghshenas, L., Abedi, A., Ghorbani, E., Kamali, A. and Harooni, M., 2013. Review
consumer behavior and factors affecting on purchasing decisions. Singaporean journal of
business economics, and management studies, 1(10), pp.17-24.
Helm, R. and Landschulze, S., 2013. How does consumer age affect the desire for new
products and brands? A multi-group causal analysis. Review of Managerial Science, 7(1),
pp.29-59.
Hennig-Thurau, T. and Hansen, U. eds., 2013. Relationship marketing: Gaining competitive
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for marketing in a digital era. European management journal, 32(1), pp.1-12.
Leonidou, L.C., Leonidou, C.N. and Kvasova, O., 2013. Cultural drivers and trust outcomes
of consumer perceptions of organizational unethical marketing behavior. European Journal
of Marketing, 47(3/4), pp.525-556.

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Martínez, P. and del Bosque, I.R., 2013. CSR and customer loyalty: The roles of trust,
customer identification with the company and satisfaction. International Journal of
Hospitality Management, 35, pp.89-99.
Montano, D.E. and Kasprzyk, D., 2015. Theory of reasoned action, theory of planned
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Parmar, S.M., 2014. A study of brand loyalty for cosmetic products among
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Rishi, B., 2013. Determinants of Brand Trust for FMCG Products with Special Reference to
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Shekhar, S.K. and Raveendran, P.T., 2013. Role of packaging cues on consumer buying
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Siu, N.Y.M., Zhang, T.J.F. and Yau, C.Y.J., 2013. The roles of justice and customer
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Srivastava, S., 2013. Factors Affecting Buying Behavior of Consumers in Unauthorized
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Vera, J., 2016. Two paths to customer loyalty: the moderating effect of the differentiation
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www.garnierusa.com (2018). Hair Care, Hair Styling, Hair Color & Skin Care Products -
Garnier. [online] garnier. Available at: https://www.garnierusa.com/ [Accessed 3 Oct. 2018].