Customer Insights and Their Impact on Marketing Strategies in the Beauty and Wellness Sector

 

Aditya Kumar Gupta ¹, Dr. Reshma Rakesh Nair ², Dr. Bhawna Sharma ³

 

¹ BBA Student, Amity Business School, Amity University, Mumbai, Maharashtra, India

² Associate Professor, Amity Business School, Amity University, Mumbai, Maharashtra, India

³ Officiating HOI, Amity Business School, Amity University, Mumbai, Maharashtra, India

 

1. INTRODUCTION

The beauty and wellness industry has witnessed remarkable growth in recent years, driven by the rise of digital platforms, evolving lifestyles, and heightened awareness of self-care. A deep understanding of consumer behaviour has become crucial to developing effective and distinctive marketing strategies amid increasing competition. Customer insights help businesses uncover the motivations, brand perceptions, and purchase drivers influencing consumer decisions. By leveraging data-driven insights, companies in this sector can design personalized and impactful marketing campaigns where trust and emotional connection are essential. Additionally, social media and digital marketing have shifted consumer engagement predominantly to online channels, making brand interactions and digital experiences increasingly vital.

 

2. Understanding Customer Insights and Consumer Behavior

The beauty and wellness industry has grown rapidly, fueled by rising self-care awareness, lifestyle changes, and the expanding influence of social media. As market competition intensifies, understanding consumer behavior has become vital for crafting effective marketing strategies. Kotler and Keller (2016) emphasize that customer behavior insights form the foundation for creating value-driven marketing approaches that align with consumer expectations. These insights reveal not only what products consumers buy but also the underlying motivations behind their choices. In this industry, consumer decisions are often shaped by emotional connections and personal identity, with Solomon (2018) noting that beauty and wellness are seen as expressions of confidence and individuality.

 

3. Role of Customer Insights in Strategic Marketing

Consumer insights have become vital assets for developing marketing strategies that prioritize relevance and personalization. According to Kumar and Reinartz (2018), incorporating customer data into marketing decisions allows companies to better predict consumer behavior, identify distinct target segments, and customize communication approaches. By analyzing patterns in customer feedback, satisfaction, and loyalty, businesses can align their marketing messages more closely with the needs and values of their customers.

 

4. Research Methodology 

This study aims to explore how consumer insights contribute to the development of more effective marketing strategies and the enhancement of brand awareness in the beauty and wellness sector. The research methodology includes both descriptive analysis and quantitative techniques to examine customer perceptions, satisfaction levels, and behavioral patterns.

Research Design: A descriptive research design was employed to gather accurate and measurable information regarding customers’ awareness, satisfaction, and perceptions of beauty and wellness services. This approach facilitated the identification of patterns and relationships between service quality, customer satisfaction, and brand recommendation.

 

4.1. Research Objectives

·        To assess customer insights and their impact on the development of marketing strategies within the beauty and wellness sector.

·        To assess customer satisfaction and its correlation with recommendations and brand advocacy.

·        To recognize demographic and behavioral trends that affect awareness and engagement.

·        To utilize statistical methods to investigate the connection between satisfaction, loyalty, and the effectiveness of marketing.

Data Collection: Primary data was collected through a structured questionnaire distributed among 142 respondents, primarily students and customers of beauty and wellness institutes.

Sampling Method: A convenience sampling method was used due to accessibility and time constraints. The sample represented diverse demographic groups, including different age ranges, educational backgrounds, and experience levels with beauty and wellness services.

 

5. Data Analysis Methods

Descriptive Statistics: Mean, percentage, and standard deviation were used to summarize customer satisfaction and awareness levels.

Chi-Square Test: To determine the relationship between age group and awareness level of beauty brands.

Correlation Analysis: To test the strength and direction of association between customer satisfaction and recommendation likelihood.

Hypothesis Testing: Conducted to validate the relationship between customer satisfaction and customer loyalty.

Questionnaire (VLCC Student Survey)

Section A: Demographic Details

1) Age group:

·        15–25 years

·        26–35 years

·        36–45 years

·        46–55 years

·        56+ years

2)    Highest educational qualification:

·        10th pass

·        12th pass

·        Graduate

·        Postgraduate

·        Other (please specify)

Section B: Course and Career Preferences

3)    Which primary course are you enrolled in?

·        Hair

·        Makeup

·        Skin

·        Nutrition

·        Combination course

4)    Which area interests you the most for future specialization?

·        Hair

·        Makeup

·        Skin

·        Nutrition

·        Salon management/entrepreneurship

5)    What is your main career goal after completing this course?

·        Get a job in a salon/clinic

·        Start own salon/independent practice

·        Work as a freelancer

·        Continue higher studies in beauty/wellness

·        Not decided yet

Section C: Discovery and Marketing

6)    How did you first come to know about VLCC Institute?

·        Google Search

·        Instagram

·        Facebook

·        Other social media

·        Peer/friend referrals

·        Traditional media (newspaper, hoardings, etc.)

·        Other (please specify)

7)    Before taking admission, which source influenced your decision the most?

·        Online reviews and ratings

·        Social media content

·        Friends/relatives recommendations

·        VLCC brand reputation

·        Counseling at center

Section D: Service Quality and Infrastructure

(Use 1–5 rating scale: 1 = Very Poor, 5 = Excellent)

8)     Rate the quality of teaching at your branch.

9)     Rate the behavior and support of the management/staff at your branch.

10) Rate the infrastructure (classrooms, labs, equipment, hygiene, amenities) at your branch.

11) Rate the availability and quality of practical training and practice models.

 

6. DATA ANALYSIS

6.1. AGE GROUP

The comprehensive survey of 147 students across three VLCC branches revealed critical insights into the institution's target demographic. The age distribution clearly indicates VLCC's strong appeal to young adults, with 57.8% of students falling within the 15-25 age group.

 

6.2. HIGHEST EDUCATIONAL QUALIFICATION

Educational Background Analysis: The survey revealed significant diversity in educational backgrounds, with 38.7% having completed 12th grade and 32.4% being graduates. This distribution demonstrates VLCC's successful positioning as an accessible educational option for students from various academic backgrounds, supporting its mission of inclusive beauty education.

Section B: Course and Career Preferences

 

6.3. Which primary course are you enrolled in?

The survey analysis of course preferences provides valuable insights into market demand and student career aspirations. Hair courses dominate student interest with 96 mentions (37.2%), followed by Makeup with 74 mentions (28.7%).

 

6.4. Which area interests you the most for future specialization?

Comprehensive Career Opportunities: Hair courses offer diverse career paths from salon employment to entrepreneurship

·        Creative Expression: Makeup artistry appeals to students seeking creative and artistic career options

·        Market Demand: Both segments show strong employment prospects and entrepreneurial potential

·        Skill Transferability: These skills can be applied across various beauty industry segments

Emerging Specializations: The data shows growing interest in Skin care (68 mentions, 26.4%), reflecting the wellness industry's expansion. Nutrition courses (20 mentions, 7.8%) represent a niche market with significant growth potential, particularly given India's increasing focus on holistic wellness.

Section C: Discovery and Marketing

 

6.5. How did you first come to know about VLCC Institute?

 

It was observed that the initial point of brand exposure for most students was through Google (54%), followed by Instagram (35%) and referrals (19%)

Section D: Service Quality and Infrastructure

 

6.6. Rate the quality of teaching at your branch.

Teaching Quality: All branches maintain strong performance above 4.0/5.0, with Kalyan leading at 4.71

·        Management: Consistent high ratings across all branches (≥4.3), indicating strong leadership

·        Infrastructure: Significant variation observed, with Borivali showing concerns at 3.91 while Kalyan excels at 4.86

Student Satisfaction Levels

 

Exceeded Expectations: 41 students (28.9%) - indicating exceptional service delivery

·        Met Expectations: 74 students (52.1%) - demonstrating consistent quality standards

·        Fell Short: 22 students (15.5%) - highlighting areas for improvement

·        Did Not Meet: 5 students (3.5%) - minimal but addressable concerns

 

7. Conclusion

This internship experience, culminating in comprehensive primary market research, has provided invaluable insights into VLCC's operational excellence and market positioning. The survey of 147 students across three branches validates VLCC's strong brand reputation while identifying specific opportunities for enhanced service delivery and market expansion.

Key Takeaways:

·        Strong Market Position: 81% student satisfaction rate demonstrates effective service delivery

·        Digital Marketing Success: 60% digital discovery rate validates current marketing strategy

·        Targeted Improvements: Infrastructure enhancement at Borivali branch represents immediate opportunity

·        Growth Potential: Young demographic and entrepreneurial aspirations support expansion strategies

Personal Professional Development: The internship resulted in substantial skill enhancement across research, analysis, and strategic planning competencies. The experience of conducting primary market research, analyzing multi-branch operations, and developing actionable recommendations provides a strong foundation for future career growth in the beauty and wellness industry.

The skills and insights gained during this comprehensive internship will be invaluable for contributing to

Total Survey Respondents: 147 students across 3 branches

Research Duration: 4 weeks intensive fieldwork

Key Insights Generated: 12 strategic recommendations with quantitative backing

Professional Skills Enhanced: 8 core competencies with measurable improvement

 

8. RECOMMENDATIONS

VLCC should build on its strong teaching quality and brand reputation while addressing specific gaps in infrastructure, digital presence, and branch standardization to further enhance student satisfaction and growth.

 

8.1. Infrastructure and Branch Operations

Survey results show that while Kalyan and Thane perform well overall, Borivali’s infrastructure rating is noticeably lower, indicating a clear need for upgrading practice rooms, equipment, and student amenities at this branch. Kalyan’s high scores in infrastructure and teaching can be used as a reference model, with its classroom layout, hygiene standards, and practical lab arrangements documented and progressively replicated across other branches. A simple, recurring student feedback system (monthly or quarterly) focused on teaching, management behavior, and facilities should be implemented at all branches so that corrective actions are data‑driven and time‑bound.

 

8.2. Digital Marketing and Admissions

Since a large share of students discover VLCC through Google Search and social media, especially Instagram, there is a strong case to further strengthen SEO with location‑specific course pages and informative content that answers common student questions. More consistent use of Instagram and other platforms to showcase student work, transformations, reels, and behind‑the‑scenes training can convert visibility into admissions by aligning with how students currently explore options. Given that peer referrals and VLCC’s brand reputation significantly influence final decisions, structured referral schemes and visible testimonials should be promoted to formalize and multiply word‑of‑mouth admissions.

 

8.3. Courses, Entrepreneurship, and Career Support

A high proportion of students aspire to start their own salon or independent practice, which indicates the need for stronger entrepreneurship‑oriented content covering basic business planning, pricing, licensing, staff management, and online promotion. Short, advanced certifications in high‑demand domains like hair, makeup, and skin can be offered to existing students and alumni to deepen skills and create an additional revenue and upskilling pathway. Finally, placement and career support activities should be made more visible through clear communication of partner salons, success stories, and career guidance sessions so that existing high satisfaction and recommendation intent convert into long‑term advocacy for the brand.

 

CONFLICT OF INTERESTS

None. 

 

ACKNOWLEDGMENTS

None.

 

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