Business Final Project Presentation
From the research, it was evident that Nivea holds a significant market share in the beauty product industry. However, the research identified certain findings, which were rather interesting. For instance, the research indicated that households with the biggest income levels had the highest expenditures on skincare products. It went further to establish that the expenses on specific brands of skincare products are directly related to the level of household income. Conversely, the research identified that the most expensive brands recorded the highest sales. It established that there was a 95% confidence level that 71.16% of the consumers preferred brands, which were priced between $9.99 and $10. Furthermore, there was a 95% confidence level that many consumers owned 2 or 3 brands of skincare products. Despite the fact that very few consumers received an annual income that was higher than $70,000, many of them opted to purchase more than one brand. Furthermore, they also picked on the most expensive brands.
Nonetheless, the research also established that more females used skincare products compared to men. Females accounted for 75% while males represented 21% of skincare consumers. These results were expected because women tend to take more care of their skins than men do. As a result, they opt for skincare products such as Nivea, Vaseline, Kleenex and Olay. Furthermore, the study was also established that expenses on beauty products had a strong positive correlation with the skincare brands. This meant that consumers were ready to allocate more of their household income towards expensive brands. These findings were expected because consumers believe that the higher the price, the better the quality of the skincare product. The research proved the hypothesis that there is a positive correlation between beauty related expenditure and the level of household income. It was evident that, despite their income levels, consumers were still willing to purchase extra brands that were more expensive.
This research can be extremely useful to Nivea body lotion manufacturing companies. Firstly, this study provides Nivea companies with vital information regarding customer acquisition, loyalty and satisfaction. Secondly, it would advice Nivea manufactures on the brands they should focus on producing and advertising. Several limitations were encountered during the research. The main limitation was false disclosure of information by some respondents. Most women are very sensitive of their age. Thus, most of them provided inaccurate information while filling out the questionnaire. In addition, some respondents were unwilling to disclose their income levels. Most of them cited insecurity as the main reason why they refused to disclose such information.
The second limitation was that data collection was only confined to one city. Furthermore, only 52 questionnaires were filled out during the study. Different regions within the country have varying climatic conditions. As a result, these variations might influence the quantity or brand of skincare products selected by consumers. For future studies, researchers should ensure that they use a wider population sample that has been randomly selected from different cities. This will ensure appropriate generalization during the research, and enhance the accuracy of their findings. The final limitation of this study was the fact that it was restrictive. This is because it was largely based on quantitative methodology. To provide a wider perspective, future researches should undertake more qualitative methodology during data collection.