INTRODUCTION In this research we have survey the product performance and buying behavior of the fragrance of perfumes, which

are used by people of all ages. During this research we have interacted with people of all ages who use perfume. After this research we came to know how people perceives these products on the variables like price, fragrance, advertisement, satisfaction, packaging, brand loyalty etc. We also came to know which particular brand of perfume is most preferred by people of different age groups. In this research we have surveyed that how frequently and how much perfume they use, whether they buy small, big or family pack. Trend of ongoing changes in their likings has been shown in the report. In this report we have tried to explain the entire research and facts product wise.

Objective of the Perfume This project is based on user behavior towards Perfumes. Objectives of the study are: 1 The other objective is to know about the Product. Vs. Price associated with the product and the customer preference level. 2 To increase Product. Vs. Price and recapture the market share by fulfilling the customer needs. 3 To study the factors affecting the consumption pattern.

RESEARCH METHODOLOGY

Primary data:
To analyze buying behavior and in order to gain insight into the buyer need satisfaction level a questionnaire was formulated and administered among 50 people in Sagar City , Most of the questions is based on likert scale. Questionnaire was attached in annexure.

Secondary data:
A number of secondary information was used they were: Web sites: Scribd, Wikipedia and other brands websites. Search of two previous research papers these two research paper were attached in the annexure.

PRODUCT VS. PRICE Steps in Setting Price: Following are the steps in setting price for a product: 1. Selecting the pricing objectives; 2. Determining the consumers' demand; 3. estimating costs; 4. Analysing the competitors' costs, prices and offers; 5. Selecting a pricing method; and 6. Selecting the final price. 1. Selecting the pricing objectives: Before selecting a suitable price for a product, the marketer is needed to review the company's objectives. The more clearer the company's objectives, the more easier to set a price. Following are the possible pricing objectives: a) survival, b) maximum current profit, c) maximum market share, d) maximum market skimming, and e) product quality leadership. The decision whether to select high price or low price depends on various factors: (i) Price susceptibility of market, (ii) Number of competitors in the market, and (iii) Production cost per unit. The price level also depends on the type of marketing strategy adopted for the product. The possible marketing strategies are listed below:

(a) Rapid Skimming: It refers to launching a new product at a high level of price with high level of sales promotion. It refers to the product which is of high quality, but not known to the buyers. As soon as the product is known to the buyers, the buyers are willing to purchase them even at a higher price. It may also refer to the market where there are strong potential competitors. (b) Slow Skimming: It refers to launching a new product at a high price with low level of promotion. It also refers to the situation where the company's brand is known to the buyers and they are willing to purchase them even at a higher price. It may also refer to the market where there are few competitors. (c) Rapid Penetration: It refers to launching a new product at a low price with high level of promotion. This marketing strategy is adopted where the company's brand is unknown in the market and where there are strong potential competitors. (d) Slow Penetration: Under the slow penetration market strategy, the company launches a new product at a low level price with low level of promotion. The brand of the company is known and there are few competitors in the market. 2. Determining the consumer's demand: The next step is determining the consumer's demand. At this stage, marketer analyses the different level of demand at different prices. Therefore, it leads to the study of law of demand, elasticity of demand, demand curve, etc. In normal case, the demand and price are inversely related, i.e, the higher the price, the lower the demand, and vice versa. But some goods have 'elastic' or 'inelastic' demand. For example, demand for automobiles, perfumes, etc. are elastic; whereas the demand for rice, flour, eggs, etc. are inelastic.

3. Estimating costs: Demand sets a ceiling on the price and the costs set the floor. The company wants to charge a suitable price covering the cost of production, selling and distribution, and administration. Costs taken into two forms, i.e, variable costs and fixed costs. Variable costs vary directly with the variation in production, but remain fixed per unit of production. However, the fixed cost does not vary with the change in production units, but it does not remain fixed per unit, as the production units varies. In other words, the fixed cost remain fixed in total and decreases in Rs. per unit with the increase in the production units or increases in Rs. per unit with the decrease in the production units. 4. Analysing the competitors' costs, prices and offers: For a marketer, the next step in setting a price for a product is to analyse the costs and prices of the product and after-sales services and different other services offered by the competitors of the company. A deep analysis may enable a marketer to discover the strengths and weaknesses of the competitor and the tastes or the purchasing trends of buyers. 5. Selecting a pricing method: The company has to select an appropriate method for pricing its products. Following are the suggested pricing methods: (a) Mark-up Pricing: Under mark-up pricing, the price is equal to cost plus percentage mark-up on cost. For example, the cost of constructing one residential flat for a constructor / developer is Rs. 500,000 and the constructor / developer charges 25% above cost, the selling price of 1 residential flat will be equal to Rs. 625,000, i.e, [500,000 + (500,000 25%)]. This kind of pricing method is common among the contractors, lawyers, chartered accountants, different practitioners and manufacturing companies for pricing job orders, custom products, etc.

(b) Target Return Pricing: Under target return pricing, the price of a product is equal to cost plus required rate of return on investment. For example, the shareholders / owners of a product-selling company is expecting a return of 20% on net assets that amounts to, let say, Rs. 200,000, the marketer would select a price which would scratch a net profit of Rs. 200,000. This sort of pricing method is adopted in public investment companies, large-scale manufacturing companies, etc. (c) Perceived Value Pricing: The market price of a product is calculated on the basis of customers' perceptions about a product. It is extensively used in non-durable consumer goods manufacturing companies. Non-durable or soft goods may be defined either as goods that are used up when used once, or that have a lifespan of less than 3 years. Examples of non-durable goods include cosmetics, food, cleaning products, fuel, office supplies, packaging and containers, paper and paper products, personal products, rubber, plastics, textiles, clothing and footwear, etc. (d) Value Pricing: It refers to pricing high quality products at fairly level. This sort of pricing method is extensively used in personal computer manufacturing industry, electronic goods manufacturing industry, etc. (e) Going Rate Pricing: Under this pricing method, the price of a product is based on prices of existing products in the market. The going rate pricing method is used in pricing paper, cement, fertilizers, steel, petrol and chemical industries. (f) Sealed Bid Pricing: It also refers to 'competitive-oriented pricing'. It is common where firms submit scaled bids for jobs / contracts. For example, pricing for scraps, wastages of factory, etc.

6. Selecting a final price: The final and the last step in setting prices is, of course, selecting a final price from a number of alternative prices, which would match the company's short term and long term objectives. Price Adaptation Strategies: Following are the price adaptation strategies: 1. Geographical Pricing: Geographical pricing refers to the product pricing for the customers in different locations, cities and countries. It also accounts for various tariffs, taxes and shipping costs. In foreign trade, another term is extensively used, i.e, counter-trade. It has taken 15-25% of the total world trade and may have the following forms: (a) Barter: Exchange of goods with no money and third party. (b) Compensation deal: The seller receives partial cash payment and the rest inproducts by the buyer. (c) Buyback arrangement: The seller receives cash, as partial payment for the plant or machinery or any other technology being sold. And the rest of payment is made in the products manufactured on that machinery. (d) Offset: The seller receives the full amount, but he will have to spent a part of it in the country or the location of buyer. 2. Price Discounts and Allowances: To promote the sales, the seller has to allow price discounts and allowances. Following are the forms of price discounts and allowances: (a) Cash Discounts: Cash discounts are allowed by suppliers on early payments within the stipulated time, e.g, 2/10, net 30, 3/7 EOM, 2/15, net 40 ROG, etc. which are extensively used in trading and merchandising. 2/10, net 30 means the buyer must pay within 30 days of the invoice date, but will receive a 2% discount if they pay within 10 days of the invoice date.. 3/7 EOM - this means the buyer will receive a cash discount of 3% if the bill is

paid within 7 days after the end of the month indicated on the invoice date. It should be noted that if an invoice is received on or before the 25th day of the month, payment is due on the 7th day of the next calendar month. If a proper invoice is received after the 25th day of the month, payment is due on the 7th day of the second calendar month. 2/15 net 40 ROG - this means the buyer must pay within 40 days of receipt of goods, but will receive a 2% discount if paid in 15 days of the receipt of goods by the purchaser. (ROG is short for "Receipt of goods."). (b) Quantity Discounts: Quantity discounts are the price reductions generally allowed on bulk purchases, for example, 1% on less than 1000 units, 2% on 1000 units or more than 1000 units. The rationale behind them is to obtain economies of scale and pass some (or all) of these savings on to the customer. In some industries, buyer groups and co-ops have formed to take advantage of these discounts. 3. Promotional Pricing: The promotional pricing strategies are: (a) Loss-Leader Pricing: Super markets and departmental stores often drop prices on branded products to promote their stores' sales. But it dilutes the company's brand image and may lead to complaints from other retailers who charge the normal list price. (b) Special Event Pricing: Special event pricing are for special events, e.g, Eid sale, Christmas sale, back-to-school sale, Eid Mela, etc. (c) Cash Rebates: Cash rebates allowed by auto manufacturers and some consumer goods manufacturers within a specified time period. (d) Low Interest Financing: Low interest financing is provided on certain consumer goods like automobile, motorcycle, television, refrigerators, air conditioners, etc.

(e) Longer Payment Terms: Sellers, especially mortgage banks and auto companies, stretch loans to their customers over longer periods and thus lower the monthly payments. (f) Warranties and Service Contracts: Warranties and service contracts are provided on, especially, the consumer goods like television, refrigerators, air conditioners, personal computers, etc. (g) Psychological Discounting: Psychological discounting involves in setting an artificially high price and then offering the same product at substantial savings. 4. Discriminatory Pricing: Price discrimination exists when sales of identical goods or services are transacted at different prices from the same supplier. Different prices are charged on the basis of different consumer groups, locations, product forms, etc. Discriminatory pricing may take the following forms: (a) Consumer-Segment Pricing: Discriminatory pricing based on consumer segments, e.g, museum often charge low admission fee for students and senior citizens. (b) Product-Form Pricing: Different versions of the same product are priced differently but not proportionately to the increase in costs. For example, Microsoft sold different versions of its operating software Windows XP at different price level. 'Windows Vista Home Basic Version' is sold at $200 and with some variations the same operating software 'Windows Vista Ultimate Version' is sold at $320. (c) Image Pricing: Image pricing refers to pricing the same product on the basis of different images, e.g, a perfume manufacturer may put a perfume in a bottle, name it and give it an image and may price it at $10 per ounce; he

may put the same perfume in a different bottle, give it another name and image and may price it at $18 per ounce. (d) Location Pricing: Discriminatory pricing based on different locations, even though the cost of offerings at each location is identical, e.g, theatre charges different prices for different audience preferences for different locations. (e) Time Pricing: Prices are varied by seasons, day or hours. Time pricing is usually applicable in public utilities like electricity, telephone bills, hotels and airlines, and also for internet hours. Predatory Pricing: There is another type of pricing of discriminatory pricing known as 'predatory pricing'. It refers to setting a price of a product below its cost, just to beat the competitors in the market. This has been prohibited by law. There was a strong legal allegation against the Microsoft that it has been perceived from its pricing tactics that it is involved in predatory pricing. Thus, the US Government's anti-trust lawsuits against Microsoft, bring it to a big trouble. It even led the court to think to bifurcate the company into two companies. Actually, in 1996, the company started giving away its product 'Internet Explorer' below its cost and in some cases absolutely free. This Microsoft's pricing tactics wrest the market dominance from Netscape Communication Corporation. Netscape constantly revised its pricing structure but failed to appeal the customers. This cause rivals to label Microsoft as a predator, which was further tendentious for raising prices as it gains the lion's share of the market. 5. Product Mix Pricing: In pricing a product, the marketer must also accounts for profitability of product mix. Product mix pricing is a difficult task because each product has different demand, cost and competition. Product mix pricing may take several forms:

PRODUCT VS. PRICE

Perfume & Cologne in India: (Men, Women...)

Dynamic Pulse By Adidas For... 1,104

Charming Edt Spray 3.4 Oz... 564 534

Black Xs Deodorant Spray 5.1... 938 855

Perfume for Women

Fcuk Edt Spray 3.4 Oz 1,448 1,348

Burberry Touch Edp Spray 1... 2,206 1,995

Diesel Plus Plus Edt Spray... 1,080 980

Arden Beauty Eau De Perfume... 1,448 1,338

Fifth Avenue After Five Eau... 1,720 1,560

Perfume for Men

My Emotions For My Husband 500

Azzaro Edt 100 ml 2,206 1,995

Bellagio Edt 100 ml

1,040 960

Jovan Sex Appeal Cologne Spray... 583 553

Jovan Black Musk Edt Spray... 583 553

Burberry Perfume

Burberry London Edt Spray 3.3... 3,201 2,841

Burberry London Eau De Parfum... 3,846 3,389

Burberry Edt Spray 3.3 Oz 2,625 2,345

Burberry Touch Edp Spray 1... 2,206 1,995

SWOT ANALISYS

Strengths
Brand building capabilities: Brand image of the company existing in the industry, every company has a strong brand image to consumers. Diversified product range of the industry covering al segments. The depth of distribution

Weaknesses
Dependence on retailers and grocery stores for displaying diversified products on shelf. Lack of technology up gradation

Opportunities
The $220 Billion food industry is expected to grow to $300 Billion by 2015.

 Per capita consumption of Biscuits in the country is only 1.8 kg as compared to 2.5 kg to 5.5 kg in South East Asian countries and European countries, and 7.5 kg in USA. Opportunity to further grown in Urban & Rural market; Current penetration levels are,

Threats
Fluctuations in the prices of raw materials, transportation costs & distribution cost due to high wedges and oil prices, Entry of ITC (having very good distribution channels) in to Perfume industry)

Data analysis and interpretation

1 Frequency of purchasing perfume

The frequency of purchasing perfume is higher on monthly basis comparing to weekly, quarterly and yearly.

2. Purpose of using perfume

The reason for purchasing perfume is higher for the use of body spray which is around 45%, comparing to body odour regulator (23.8%), sensitive skin (21.42%), roll on (9.52%).

3. Brand preference Men :

Axe is the brand most preferred by men comparing to Lee, Nike, Adidas, Tommy.

4 Women

Spinz and FA is the most preferred brand by women comparing to others like She, Tommy Girl, Calvin Klein.

5 Reasonable price of the perfume mostly preferred.

According to this graph price range of perfume most preferred is between Rs. 151- Rs. 250.

RECOMMENDATION AND SUGGESTIONS

1. Setting up a production plant in India to reduce costs and improve distribution. 2. Entry into the perfume industry under the same name. 3. Address both the genders. Release a Perfume for women.
4.

Axe Perfume should come up with a break open seal to avoid duplication and refilling.

FINDINGS

It has been observed that people use not only Perfume s but home remedy is also preferred because of its uniqueness of effectiveness. People also use more than one Perfume or keep two Perfume s

Most

people have tried one or more Perfume s but hardly finds any differences. Except

for clinic all clear and organic in which respondents have positively agreed of best Perfume than others.
People

buys those Perfume s giving them maximum benefits. Female normally look for

Perfume matching with their hair type but male look for combination of benefits i.e. 1st hair problem and then fragrances followed by price.
An

advertisement is the one that influences a lot than any other factors.

Most people change their Perfume s occasionally but there are people who never change their Perfume i.e. they are satisfied with their current brand.

People Most

normally Perfume twice a week or three to four times a week.

people normally buy sachets available followed by above 250-ml pack.

Most people know of the brands through advertisements. Next come magazines. And then the newspapers.

Satisfaction is maximum drawn with people using clinic and organic. These are the brands, which attract most because of perceived quality and brand image.

LIMITATION OF THE PROJECT

Sampling done is convenience sampling and hence all disadvantages associated with this technique exist such as sampling bias and the sample not being representative of the entire population

Study is based majorly on residents of Mumbai and hence may not represent exactly consumer behavior of residents of other cities, towns, villages or states etc.

Limitations associated with filling online form exist such as non representation of people who are non-net-savvy, inaccurate form filling etc.

In todays internet age, Perfume is not representative of daily use item since more and more people are getting most of their writing done on the internet. Thus assuming Perfume to be a daily use item may be wrong.

CONCLUSION.
From this research we have arrived at the conclusion that our hypothesis is rejected at 10% level of significance .The value arrived at 10% level is 1.645.This means that Brand influences the user to purchase the Perfume. 1. With the help of question 1 and question 3 we can says that Cadbury is the brand preferred amongst the other brand perfumes like nestle , Amul , etc. the total Weightage is given to both the questions is 10 each and total comes out 20 points. After applying the Ztest on both the questions we arrived at conclusion that our derived value of Z-test of both questions comes out to be less than the tabulated Z-test table Value. 2. With the help of question 6,7, and 12 we can says that brand ambassador influence the user to purchase the Perfume. The value of Z-test is 0.261, 0.19042 and 0.2498. This value is less than the table value, Which signifies that our second hypothesis is rejected. 3. At the end of the conclusion we can say that flavor price, packaging, brand are the most important factors ,which influences user to purchase Perfume,

thats why question 3 and 12 gives the more Weightage amongst the other.
BIBLIOGRAPHY

Web sites: Scibd Wikipedia Brands of perfume (LEE, AXE, NIKE)

Books: Book of Research methodology Kothari C.R. Reference: Prof. Shweta Jain.

History
According to the Bible, Three Wise Men visited the baby Jesus carrying myrrh and frankincense. Ancient Egyptians burned incense called kyphi made of henna, myrrh, cinnamon, and juniperas religious offerings. They soaked aromatic wood, gum, and resins in water and oil and used the liquid as a fragrant body lotion. The early Egyptians also perfumed their dead and often assigned specific fragrances to deities. Their word for perfume has been translated as "fragrance of the gods." It is said that the Moslem prophet Mohammed wrote, "Perfumes are foods that reawaken the spirit." Eventually Egyptian perfumery influenced the Greeks and the Romans. For hundreds of years after the fall of Rome, perfume was primarily an Oriental art. It spread to Europe when 13th century Crusaders brought back samples from alestine to England, France, and Italy. Europeans discovered the healing properties of fragrance during the 17th century. Doctors treating plague victims overed their mouths and noses with leather pouches holding pungent cloves, cinnamon, and spices which they thought would protect them from disease. Perfume then came into widespread use among the monarchy. France's King Louis XIV used it so much that he was called the "perfume king." His court contained a floral pavilion filled with fragrances, and dried flowers were placed in bowls throughout the palace to freshen the air. Royal guests bathed in goat's milk and rose petals. Visitors were often doused with perfume, which also was sprayed on clothing, furniture, walls, and tableware. It was at

this time that Grasse, a region of southern France where many flowering plant varieties grow, became a leading producer of perfumes.

CONCLUSION
The business models of the Axe have been different with a wide popularity of stores in high streets, malls and new formats such as store in store has been catching up even with international brands having gone the store in store model which has been the most cost effective model in terms of testing the markets. Thus it improves its advertisement effectiveness and marketing communication in better understanding of changing generation.

ENCLOSURE

QUESTIONNEIRE
Name.. Add.. Q.1 Q.2 frequncey of purchesing perfume ? Yes { Yes { Yes { Yes { Yes { } } } } } No { No { No { No { No { } } } } } purpose of using perfume ? age . date.

Q.3 brand preference men ? Q. 4 brand preference women ? Q.5 reasonable price of the perfume mostly praferred ?