CHAPTER 1

INTRODUCTION

1.1 Overview of Research Objects 1.1.1 General History of L’Oreal L’oreal Group is the largest and beauty company in the world founded by a French chemist, Eugene Schueller. He was one of the young graduates of the Institut de Chimie Appliquee de Paris (now changed his name to Chimie ParisTech) in 1904. The company was headquartered in Clichy, France and was founded in 1909. The company produces various kinds of cosmetic products and employs 68,900 workers.

The L’oreal Group first arrived in Indonesia in 1979 by distributing Lancome, one of the luxury brands. Several other L’oreal brands in the luxury category in the following years also enlivened the Indonesian market such as , , and Ralph Lauren perfumes. In 1985, the Loreal Group collaborated with local companies and established manufacturing companies, PT. Yasulor Indonesia. In 1993, the L’oreal Group took over all of its operations in Indonesia and starting in 2000 formed the entity PT. L’oreal Indonesia.

Until now, the Loreal Group's business activities in Indonesia have focused on both of these entities, namely PT. L’oreal Indonesia handles the marketing and distribution of Loreal brands and PT. Yasulor Indonesia produces skin and hair care products in the mass market segment to meet the needs of the domestic and Southeast Asian markets.

The L’oreal Group is currently present in Indonesia with 15 brands divided into 3 categories, namely: luxury, consumer, and professional (salon). Through various distribution channels. These brands are L'oreal Paris, New York, , L'oreal Professional, Kerastase Paris, Matrix, Lancome, , , Yves Saint Laurent, Kiehl's, Ralph Laurent perfumes, , , and .

PT. L’oreal Indonesia is very concerned about quality standards and Good Manufacturing Products (GMP) for cosmetic products. PT L’oreal Indonesia has also implemented a government program in developing environmentally sound industries or green industries that realize sustainable development

On July 18, 2014, PT. L’oreal Indonesia was announced as the first company in Indonesia to win the "Greenship Interior Space" certification from the Green Building Council Indonesia after successfully fulfilling the requirements in an environmentally friendly rating system that proved the company's commitment in applying the greening concept.

1.1.2 Vision & Mission Vision and Mission is something that must be achieved and implemented by the following companies: Vision & Mission of PT L’Oreal Paris:

a. Vision

The vision of the L’oreal company is to get one billion consumers worldwide and create beauty products that meet the unlimited diversity of beauty needs desired by consumers.

b. Mission

L’oreal has made a beauty product project for years to come. Beauty is universal, meaning that L’oreal offers the best beauty products, both in terms of quality, efficacy, and safety for women and men throughout the world. Beauty is nature, in this case, L’oreal explores and creates new products in the future. Beauty is a commitment, meaning L’oreal creates an innovative power to preserve the beauty that supports society

1.1.3 Company Logo The logo is the identity of a company and the following is the logo of PT. L’Oreal Paris:

Figure 1.1 Company logo PT. L’Oreal Source: www.Loreal.com

1.1.4 Organizational Structure The organizational structure is a framework that describes the authority and responsibility in each part. Therefore the organizational structure is one of the factors that support the success of a company. Following is figure 1.2 regarding the organizational structure of PT. L’Oreal Paris:

Figure 1.2 Organizational structure Source: www.lorealparis.com

1.2 Background of Research Nowadays, face and body care are not a strange thing to the man anymore, appearance is one of the important things for men, not only because of their desire to appear charming and confident in front of women but also the demands of the work they do. Many men try look balanced with the appearance of women who naturally look neat and well-groomed (Trisdiwiastuty, 2015). Now face care is not only related to the women, but now men are beginning to realize the importance of maintaining healthy skin. Face products for men are not as much as compared to facial care products for women. Facial products for men have the same benefits as facial products for women, which are to deal with various facial skin problems. Just like woman, male has a lot of facial skin problems. Therefore, a lot of facial product for man are available on the market. (Pujasari, 2016).

Men's face wash products are growing rapidly due to the demands of lifestyle, in Southeast Asia including Indonesia, those men who live in big cities now care about their health and facial appearance (www.marketing.co.id). The Nielson survey results showed that the male grooming market share grew significantly by 23% from 2013. These care products included hair styling, deodorant, cologne and skin care, the growth of the men's care product market can be seen in figure 1.3 (www.tirto.id).

The growth of the male beauty industry

Figure 1.3 The growth of the Men's Beauty Industry Source: www.Tirto.id

Based on Figure 1.3 it can be concluded that the growth of the male beauty industry is increasing every year. In 2017 the growth of the men's care market reached $ 20.52 and in the next five years, it will reach $ 27.76. Estimated, 70% of men do not use facial and skin care equipment, but the interest in body and face care continues to increase (www.Tirto.id). So that this becomes an interesting phenomenon to be examined. Men's interest in wearing facial and skin care can be categorized as a purchase interest. The interest in purchasing according to Kotler and Keller (2012) in Priansa (2017: 16) is a consumer behavior that appears as a response to an object that shows someone's desire to make a purchase.

There are a number of facial and skin care products that are usually used by men including , facial wash, shaver and cream, facial scrubs and sunscreen (Source: https://lifestyle.kompas.com). One of the easiest treatments to use is the face wash. Like women, men also need to do a basic facial treatments such as cleaning the face and moisturizing the face. Every day, facial skin is often exposed to pollution, including cigarette smokes. In addition, men tend to have more oily and thicker skin than women. Therefore, they need to use facial that are good and effective for all skin types. This becomes the background of men needing to use facial wash products (Source: lifestyle.kompas.com).

The researcher conducted a preliminary survey on the use of facial wash products for men by interviewing 32 male sources and found out that 75% of men are using facial wash products while 25% of men do not use any facial wash products, as it can be seen in Figure 1.4 below: do you use male skin care?

25%

Yes No

75%

Figure 1.4 Survey data for male skin care user (Source: Processed by the author, 2018)

Although most of the male skins have a low level of sensitivity compared to women, men do not spend a lot of time doing treatment, especially on the face. Men's face soap has several advantages compared to other facial soaps. The soap can be used to help men to shave. Some of them contain exfoliants which help reduce the occurrence of ingrown hair, and aloe vera which can soften the beard (Source: www.Hellosehat.com).

Generally, a man normally washes his face with facial soap once a day in the morning before taking a shower or in the afternoon when he has done outdoor activities. It is not good for men to wash their face too often, this habit is causing several problems such as: the ingrown fine hairs on the face (beard, mustache, sideboards), acne, or oily skin. Wrong habits in washing the face can also cause irritation (Source: www.Hellosehat.com)

This is the basis for fulfilling the needs of cosmetics for men, the number of requests for male consumers of cosmetics producers is aware of these opportunities, and from that manufacturers are starting to produce cosmetics specifically made for men. There are several cosmetic products that are used by men, for example, L'Oreal with Loreal Men Expert products and Garnier Man. And from one of the beauty products, there are also some products from Unilever such as Ponds Man and Man, and some products from KAO such as Biore Man, also a Biersdorf's product: Man (source: www.viva.co.id). Figure 1.5 and Figure 1.6 show that the top brands of face wash in 2017 and 2018 can be seen in the following:

Facial Wash

BRAND

Figure 1.5 Data Top Brand index 2017 (Sumber: www.Topbrand.com)

Facial Wash

BRAND

Figure 1.6 Data Top Brand index 2018 (Sumber: www.Topbrand.com)

As in the description of Figure 1.5 and Figure 1.6, the Garnier brand face cleaning products increased by 7% in becoming the Top Brand Index in Indonesia, marked by the beginning of 2017 the Garnier brand had not yet become a Top Brand and in 2018 the Garnier brand had been labelled as the top brand. This shows that purchase intention in Garnier is increasing. This purchase intention will later continue to consumer purchasing intention. Purchasing intention according to Schiffman and Kanuk (2010) in Priansa (2017: 214) define decisions like the choice of action from two or more alternative choices. Researcher conducts an additional surveys to see which facial washing products that are often used by men, shown in Figure 1.7:

CSurveyonsumer pemilihan selection konsumen survey of terhadap Product Facialproduk Wash cuci muka

1 1 1 5 1 1 1 1 4 1

2

3 4 2

garnier man pounds men nivea men biore men clean and clear loreal men sk2 krikland monoxidil lifeboy natasha sabun dokter body shop acnes wardah

Figure 1.7 Consumer selection survey of face wash products (Source: Processed by the author, 2018)

As we can see in figure 1.7 according to the survey wich conducted by the author to 30 male respondes. It shows that the biggest percentage is 15,26% or 5 respondens out of 30 respondes are using Garnier Men. Because respondents prefer Garnier Men facial wash products because of the many variants of Facial Wash Garnier Men products, so consumers can adjust to their skin problems. Why consumers don't want to switch to other products, because of the skin compatibility of consumers with facial wash Garnier Men products. Another four Respondens are using Neviea men, also 4 respondens are using clean and clear, next,Two respondens are using poundsmen. And for the res, each respondens are using different products such as wardah, lifebuoy, soap from doctor, body shop,L’oreal Men,SK II, and acnes. (Source: www.garnier.co.id)

Figure 1.8 Types of Garnier Men products (Source: www.garnier.co.id) As in figure 1.8, the website www.garnier.co.id offers various types of facial wash products for all male skin problems in Indonesia, for example, Garnier Men provides facial washing products for men who have oily, dull and acne prone skin problems. This is evidenced in the journal (Source: www.jurnal.maskoolin.com) facial skin problems that are often experienced by men in Indonesia are acne, dull skin, dry skin, blackheads, and excess oil. Although Garnier has not issued facial wash products specifically for dry skin Garnier Men issued a moisturizing product specifically for men who have dry skin problems. Based on research journals by Irawan (2011) there are 4 factors that indicate that the belief in the product and the attitude of influence on purchasing in buying skin care products are; belief in Product Attributes, Aging Effect, Health Concern, and Self Image. There is also a journal according to Laksono & Purwanegara (2014) regarding the Factor impact of product experience consisting of the effect of benefits for male consumers in purchasing face wash products, namely; Purchase Location is reachbale and Reduce acne. Other than that journal from Rangkaputi (2017) regarding What are the perceptions of Thai male consumers about their purchasing decisions on cosmetic products and how does the concept of male masculinity and the importance of their self- image and appearance affect men's consumption of cosmetic products? Therefore, these are the basis for the researcher to choose Garnier Men as the object of this study. Table 1.1 Reference Journal Factors No. Reference Journals Factors

1. Development of Male 1.beliefs in product attributes Consumer Behavior Model 2.aging effect health concern in Buying Skin Care Products in Indonesia 3.health concern

Source: Irawan (2011) 4.Self-image

2. Male Consumers Behavior 1. purchase location is Towards “For Men” Facial reachable Wash Skincare Product 2. Reduce acne source: Laksono, Sufiati (2014)

3. Male image, masculinity 1. Male Image and consumer behavior 2. Masculinity related to cosmetic products: a study of Thai men in Bankok City

Source: Rangkaputi (2017)

Source: Processed researchers, 2018

Factor analysis according to Prastiwi et al (2017) is used to see the dimensions that emerge from the tested attributes. There is a purpose in carrying out factor analysis, this goal according to Prastiwi et al (2017), that is, trying to classify a number of attributes, then there should be a strong correlation between attributes, so that grouping will occur. Based on the background described above, the researcher is interested in examining more deeply the problems in this study with the title "Analysis of the Factors Affecting Customer is Purchase decision of Male Skin Care Product (Study on Garnier Men)" 1.3 Research Questions Based on the background discussed earlier, the formulation of the problem in this study are:

1. What are the most dominant factors in encouraging male customers to purchase the Garnier Men Facial Wash?

1.4 Research Objectives

Based on the formulation of the problems mentioned above, the objectives of this study are:

1. To find out the most dominant factors that encourage male customers to purchase Garnier Men Facial Wash.

1.5 Research Usabilities The uses of this research are as follows:

1. Theoretical aspects

a. For the researcher, it can be used to apply the knowledge of marketing management obtained in college and to sharpen knowledge and insights in the science of marketing management, especially regarding the influence of consumer perceptions and preferences on the process of purchasing intention.

2. Practical aspects

a. For companies, the results of this study are expecting to contribute ideas that can be used as consideration for companies regarding the influence of perceptions in purchasing Garnier man cosmetics products online and in physical stores. b. For further researchers, it is expecting that the results of this study can be used as reference material to conduct similar research. 1.6 Systematics of Writing In the preparation of this report, systematic research has been prepared to provide an overview of the research conducted. The research systematics of this research is arranged as follows:

a. Chapter I Introduction

This chapter is an introduction to the research. This chapter contains a brief description of the contents of the thesis, concerning the background, problem formulation, purpose and usefulness of the research, and systematic research

b. Chapter II Literature Review and Research Scope

This chapter provides an overview of theoretical concepts as reinforcement in this thesis. In this chapter, we will also discuss the previous research, frameworks, and hypotheses used.

c. Chapter III Research Methodology This chapter describes the research methods used, the scale of measurement, data collection, and processing techniques, population and samples, and systematic research.