Management

HARNESSING POTENTIAL IN GREEN COSMETICS ABSTRACT: Today the consumers are becoming more savvy about green issues. Terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. There arise a need to strike a balance between eco friendliness and technology advancements. A perfect harmony of technology vis a vis eco friendliness will lead the marketers to ride the new horizons. The popularity of cosmetics is growing worldwide with the developing economy. Cosmetics are big business and the cosmetic industry worldwide witnesses rapid growth annually. With growing ecological and health awareness, modern cosmetics are flooded in the market in the form of organic cosmetics, mineral cosmetics and even environmentally friendly cosmetics to cater to an overwhelming demand for such products. With the increase in the pace of change, organizations are frequently feeling the pressure of societal tides like “social responsibility” and “environmentally friendly.” They are bestowed with the responsibility of preserving the rare natural resources to meet the needs of the forthcoming generation. Transparency and authenticity are crucial in marketing of green beauty products . How environmentally friendly businesses truly are could determine how successful they will be in the long run. The study focuses on understanding the relationship between Green marketing and its impact on brand loyalty and customer satisfaction in cosmetic products. For the conduct of the study a questionnaire was prepared. Consumers, product managers and managers of Organized Retail stores were also interviewed for better insights into the same. Further the literature was reviewed and data collected was statistically tested, and results are discussed later in the research paper. INTRODUCTION People first notice what race someone is, how beautiful or ugly they are and what clothes they are wearing. Beauty is skin deep; however, first impressions are usually what others use to base their personal judgment in the business world, people are expected to dress appropriately and carry themselves appropriately. Studies reveal that better looking people on average earn more than their peers. The cosmetics industry has a more personal influence in our lives, too. The desire to look beautiful, young, and sexy does not only apply to women, but men as well. With growing ecological and health awareness, modern cosmetics are available in the form of organic cosmetics, mineral cosmetics and even environmentally friendly cosmetics to cater to an overwhelming demand for such products. Beauty cosmetic products include an extensive range of make-up cosmetics and toiletries like skin creams and lotions, perfumes, lipsticks and lip gloss, nail varnish, toothpastes, deodorants and eye and face make-up products etc. Optimistically, cosmetics can be a product which helps us bring our best face forward. The desire to look beautiful, young, and sexy does not only apply to women, but men as well. The cosmetics and beauty products are a lucrative and high riding industry today. Cosmetics are not a new age invention but have been part of the human regime for centuries. Nowadays, customers are enthusiastic about products from companies which accept responsibility for social issues and the environment. The continuing health and wellness trend is another key source of motivation. The changing values in society is another reasons why the cosmetics market is going green. The natural cosmetics industry profits from a new orientation towards credible and authentic brands. It is strongly agreed by market researchers and experts that natural cosmetics have a great future. The worldwide sector also maintained its position very well during the crisis and even recorded growth. The global cosmetics industry nets about $20 billion in sales annually, and its pull is far-reaching around the world. For example, sales in Germany grew by some 7 percent to 717 million EUR – 45 million euros more than the year before – and achieved a share of 5.6 percent of the total cosmetics market. As the Gesellschaft für Konsumforschung (GfK), the consumer research institute in Nürnberg, shows in its current study on natural cosmetics, customer reach and spending on certified natural cosmetics have increased by almost 50 percent since 2006. A current study by the international market researcher Kline Group forecasts excellent prospects for natural cosmetics in Asia, Europe and the USA until 2014. According to Kline’s Global Natural Care Market Report, the Asian markets with their two-figure growth rates will reach a volume of 14.8 billion US$. The market researchers expect sales of over 6.3 billion US$ in Europe in the next five years and 5.8 billion US$ in the USA. Evidence of the stability of the natural cosmetics sector in the crisis is also provided by the growth achieved in 2009 – 13 percent in Asia, 9 percent in Europe and 8 percent in the USA. Sales of natural cosmetics in Germany in 2009 grew by almost 7 percent. Whereas the volume demand rose by more than 11 percent in 2009, sales grew by only a single-figure amount of just under 7percent. This is attributed to the starter-price brands. Great potential lies in customer retention, but the level of loyalty of natural cosmetics customers is currently still too low. It is a question of making occasional buyers into regular customers. Positive signs of international market growth are wittnessed by both the forecasts of the traditional manufacturers and the increased entry of international cosmetic players. More than 70 percent of the retailers are convinced that natural cosmetics will also be one of the growth segments with great potential in the future. Thus sector of cosmetics making environmental, natural or organic claims is projected to experience double-digit growth for the foreseeable future. The green product trend has moved into the mainstream in most consumer product categories. In the cosmetics market, the large multinationals are buying smaller green product brands, launching their own green product lines, or both. Green claims are increasingly popular in all marketing channels, from prestige to drug stores and retail stores." The Indian scene Researchers indicate the Indian cosmetic industry is expected to remain on its growth track in coming years. According to the study, the industry will grow at a CAGR of around 17 per cent between 2010 and 2013. The reason behind the surging interest in naturals and organics is concern for the environment and green issues, including whether products are ethically produced and where ingredients are sourced. Another reason behind this growth is down to as people becoming more beauty conscious in India, due to changing lifestyles, status symbol and increasing consumer awareness. This has given market players profitable opportunities about personal care and the influence of western culture, which will also drive further growth in the cosmetic market, alongside the increase in disposable income of middle class families, according to RNCOS. Many Indian companies such as Lotus, Herbals, Natures, Forest Essentials and Shahnaz Husain are looking to increase their brand presence in the international markets and are scouting for international partners to sell their products. Green Marketing- concept : Before discussing the green cosmetics in length it is vital to understand the concept of Green marketing and its importance. With the increasing awareness of global climate change and natural disasters, environmental protection is an issue of high topicality and relevance. Companies across all sectors try to develop products and practices with minimized environmental effect as part of socially responsible practices, but also in order to establish themselves in a new niche for consumers with environmental concerns. Generally terms like Phosphate Free, Recyclable, Refillable, Ozone Friendly, and Environmentally Friendly are some of the things consumers most often associate with green marketing. Green or Environmental Marketing consists of all activities designed to generate and facilitate any exchanges intended to satisfy human needs or wants, such that the satisfaction of these needs and wants occurs, with minimal detrimental impact on the natural environment. [Polonsky 1994b, 2] Thus green marketing incorporates a broad range of activities, including product modification, changes to the production process, packaging changes, as well as modifying advertising. Yet defining green marketing is not a simple task. Indeed the terminology used in this area has varied, it includes: Green Marketing, Environmental Marketing and Ecological Marketing. Need for Green cosmetics The wide range of eco friendly cosmetic products is somewhere existent because there is a need for them and is expressed by us in our day to day consumption. Cosmetics enhance the appeal of a person. Branded and trusted products are essential so that they do not harm the skin and the environment. In recent years, people have realized the adverse effects of using cosmetic products that contain chemical ingredients. Such reactions gave rise to the need for green cosmetics. Below mentioned are some solid reasons, benefits of eco friendly cosmetics. • The skin has pores which absorb most of what you apply on your skin. When moisturizer is applied right after bath it keeps the skin soft and fresh. Similarly, just how it absorbs the moisturizer, the skin also absorbs the cosmetics which are used. These cosmetics travel from the skin into blood-stream and exist internally. Hence it is necessary to use safe and natural products that do not harm in the long run. • These do not cause allergies as they are suited to any skin type. For skin to stay healthy it needs to breath and using organic cosmetics keeps its fresh and clean without any clogged pores. • Natural cosmetics eliminate the exposure of toxic particles to your skin. They are devised to suit most types of skin and are made from natural products rather than toxic chemicals. • They are rich in vitamins and minerals which are necessary for a radiant and glowing skin. A lot of brands are now endorsing mineral products as the audience itself is realizing the quality of these products. They are rich with Vitamin A, E and Bs. • Lastly, Natural products from a lot of top brands are being manufactured for the mass markets which makes it easier on the pocket while providing what the consumer want. There is no fear when it comes to natural cosmetics since these cosmetics are ideal as they do not further harm the skin but keep it nourished and long lasting fresh. Effect on sales Skin care products are becoming a trend at the moment and is growing rapidly. Many supermarkets are increasing its offerings of green products and as people are becoming more environmentally conscious, their interest in organic skin care and organic products has increased. Realizing the fact that what you put in your body is just as essential as what you put into your body, people are buying more organic skin care products which are without chemicals and pose less health harm in long-term. Despite of high price it purchased frequently because of it eco-friendly or health & safety or high performance or lifestyle .Thus, this confirms that there is a constant growth in the sale of green cosmetic products. Effect on consumer satisfaction As, people are beauty conscious whether it is women or men it essential to both. They cannot take risk with their skin by applying cosmetics which contains toxic and harmful chemicals. The organic cosmetic products are made from materials which have been grown naturally and have been certified pesticide free. Organic products are made without synthetic pesticides, insecticides, fungicides, hormones and chemical fertilizers. the US Department have been doing a great job in regulating the cosmetic companies and educating and making the consumers aware. It is believed that there’s only a fraction of people who are “green” fanatics— who will buy something simply because it’s envivonmental friendly. The bulk of consumers buying green will only do so if there’s “something in it for them,” or if it meets one of these values: 1) Health and safety 2) Efficiency and cost-savings 3) Improved performance 4) Convenience 5) Status “People respond better to something that directly impacts their personal health and safety or one of the other values on the list,” Increase in consumer awareness towards green Cosmetics is defined as using natural resources that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations. All this has led to customer satisfaction . Effect on Brand Loyalty : The increase demand and consumption of branded green cosmetics despite of high prices proves that customers are loyal towards the brand. Women who have used organic(green )“ skin care products, felt their skin was even more fresh and pure after using organic products and did not want to switch back to the old non-organic brands. Cosmetics which are highly priced are also sold at an increasing pace due to their eco friendliness. In future, companies are hoping to replace non-organic skin care products with organic ones, thus ensuring the cosmetics using green and natural materials. Benefits to cosmetics sector • The cosmetics business is a billion dollar industry in FMCG Sector. The cosmetics and beauty products are a lucrative and high riding industry today. Cosmetics are not a new age invention but have been part of the human regime for centuries. Be it the Egyptians or Persians, Asian or Americn. Every year, women and men are responsible for consuming millions of cosmetic products. Cosmetic companies are highly competitive with one another. To remain competitive, companies feel the pressure to come out with innovative products. In the past few years, cosmetic companies are expanding their product lines to include products for men. The cosmetics industry is so large because of several factors. The media is a huge contributor to the intense pressure to look a certain way. The idea that "beauty sells" is evident in gossip magazines, movies, advertisements, music, and more subtly in the business world. The government's worldwide change towards a more market-based economy has opened flood gates of opportunities for its people and foreign companies Lets Go Green (Conclusion) With increasing awareness among customers, it has become very important for the cosmetic and skin care companies here to develop the right brand positioning and create the right product and brand awareness. In recent years, people have realized the adverse effects of using cosmetic products that contain chemical ingredients. Factors for successful marketing should take into consideration the current market trends & demands, regulatory framework & compliance requirements, scientific learning on performance, efficacy and safety. In addition to environmental friendliness if any one or all of these i.e Health and safety, Efficiency and cost-savings, Improved performance, Convenience, lifestyle may also be considered in brand positioning and enhancing brand loyalty. As the world seems being destroyed by pollutants which cause disease and destruction of animal habitats, focus should be made more on making eco friendly choices. Using green cosmetics may be one way to begin our daily lives make “green” . This choice will not only make our skin more youthful and attractive, it can also prevent from purchasing a product toxic to the environment or aiding in animal cruelty.