Factors Influencing on Brand Loyalty and Customer Satisfaction of L’Oreal Cosmetics in Yangon
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Chapter – 1: Introduction
1.1 Research Background: Cosmetics industry background
The cosmetic industry is a lucrative market which attracts more and more attention for marketing research. In this 21st century, cosmetic industry is very competitive business environment, which is a good area to study brand loyalty and customer satisfaction. In order to get a sustainable competitive advantage in business brand loyalty and customer satisfaction are the significant and crucial factors for Management. In this research, factors Influencing on brand loyalty and customer satisfaction of boreal cosmetics focused in the Yangon area. The brand loyalty of cosmetic products in Myanmar is influenced by the perceived quality, price, availability (place), promotion, brand name.
1.2 Research Background: L’Oreal cosmetics industry background
According to (Euro monitor, 2012), L’Oreal is one of the world-leading cosmetics businesses. The Company has various kinds of new cosmetics products that are based on cutting edge technology. The portfolio of L’Oreal cosmetics has 32 brands located in diverse segments from the mass market to selective cosmetic market (Szutowski & Szułczyńska, 2017). L’Oreal Paris is a whole beauty care organization which integrate with the latest technology and the best quality for latest luxury beauty products. “L’Oreal” name is rapidly evocative of the signature phrase of the brand “Because I’m Worth it”. It means the significance of the L’Oreal brand as a whole, a spirit that is about providing all women to adopt their special beauties whilst boosting her innate self- worth sense. As the largest cosmetics brand in the world, L’Oreal has an unparalleled commitment to technology, research and innovation and high-quality cosmetics products for all men, women and children. L’Oreal Paris is especially dedicated to celebrating beauty diversity. The company’s large range of spokespeople consists of Andie MacDowell, Eva Longoria, Doutzen Kroes and Liya Kebede. The L’Oreal encompasses the five principal beauty classes – hair color, hair care, hairstyle, skincare and cosmetics – and consists of such established brands as Superior Preference® (L’Oreal Paris Official website, 2019). The brand loyalty of cosmetic products in Myanmar is influenced by the perceived quality, price, promotion, expiry date, purchase decision, brand name, store environment, ingredients and design.
1.3 Problem Statement
In Myanmar, business trends, including the cosmetics industry, has gradually changed since the transition to democracy of Myanmar. Korea cosmetics brands and some U.S cosmetics brand such as Estée Lauder, Clinique enter the Myanmar cosmetic market. Some loyal customers of L’Oreal cosmetics brand change from L’Oreal customers to other brands including Thai cosmetics, Korean cosmetics and Estée Lauder, Clinique. Thus, in order to get competitive advantage among its competitors, L’Oreal needs to have more and more customers who are loyal to L’Oreal cosmetics brand, and on the other hand, the Company should have lots of satisfied customers by serving excellent customer satisfaction. If L’Oreal customers are satisfied, they are loyal to the L’Oreal brand, the Company do not need to take of its competitors.
1.4 Research Objectives
Objective 1: To identify the factors why customers prefer L’Oreal cosmetics
Objective 2: To identify the overall level of satisfaction of customers for cosmetics products of L’Oreal in Yangon, Myanmar
Objective 3: To provide suggestions and recommendations to L’Oreal to improve the factors impacting customer satisfaction
1.5 Research Questions
- Why do customers prefer L’Oreal cosmetics?
- What is the overall level of satisfaction of customers for cosmetics products of L’Oreal in Yangon, Myanmar?
- What are the suggestions and recommendations to Loreal in order to develop the factors impacting customer satisfaction?
1.6 Significant of Research
Loreal cosmetic can get more market share and competitive advantage from this “Factors Influencing on Brand Loyalty, and Customer Satisfaction of Loreal Cosmetics in Yangon” research as customers who purchase Loreal cosmetics brand are highly dependent on the brand loyalty and customer satisfaction. On the other hand, brand loyalty and customer satisfaction are interrelated each other. And in this competitive business environment, having customers who are loyal to Loreal cosmetics brand is crucial for the Company to be ahead of its competitors.
1.7 Research Methodology
There are 100 respondents will who will participate in this “Factors Influencing on Brand Loyalty and Customer Satisfaction of Loreal Cosmetics in Yangon” research. Most of the respondents will be friends, colleagues, relatives, family members of the researcher who are loyal to Loreal cosmetics and live in Yangon, which is the commercial city of Myanmar. All the answers of the respondents will be confidential, and the researcher will not disturb the respondents who do not want to answer the questionnaires. The purposive sampling method is utilized in collecting qualitative research questionnaires in the limited time for data collection. Descriptive research design and questionnaires are used in this research paper. Data are analyzed and presented with graphs, bars, pie charts, etc. The qualitative research method is used in collecting data because the author would like to know likes, dislikes and opinions of the respondents towards Loreal cosmetics. This study shows the point of view that brand loyalty and customer satisfaction need to be strong as an important focus for Loreal cosmetics to maintain its market share and competitive advantage among its competitors.
A number of limitations may contain in the research and which need to be acknowledged. Moreover, the collected data have come from the respondents’ opinions, and those opinions of the respondents may change from time to time. There may be a lack to present about brand loyalty and customer satisfaction relating to the respondents’ background. This “Factors Influencing on Brand Loyalty and Customer Satisfaction of Loreal Cosmetics in Yangon” research is conducted in Yangon so there may be many respondents who love in the other states and divisions of the nation.