Sr no. Headings Page no.

1 Brand 6

2 What is Brand 7

3 Concept of Brand 8

4 Why Branding is so important 10-16

5 Brand Building & Importance 17-23

6 Brand Awareness 24-25

7 Case Study 26

8 Introduction 31

9 Milestones of the institution 37-39

10 Organisational Structure 40-47

11 Pricing 48

12 Promotion 49

13 Research Hypothesis 60

14 Research Methodology 61

15 Brand Awareness of Lijjat Papad 63-65

16 Data Analysis & Interpretation 66-75

17 SWOT Analysis 76

18 Findings & Conclusions 77

19 Annexure 81-84

20 Bibliography 85
 HISTORY OF COSMETICS

The discovery of the art of photography and of films, particularly, provided the impetus to a sudden
growth in cosmetics. As watchers saw images of famous people with perfect complexion and
strong sexual appeal, the standards of a woman's beauty started to change. Cosmetics have become
a means to beautify one's physical appearance.

During the 1920s, cosmetic history increased quickly. Between the year 1927 and 1930,
advertising expenses on the radio increased from $300,000 to $3.2 million. At first, a lot of the
feminine magazines declined advertisements on cosmetics. However, near the end of cosmetics
had progressed and cosmetic advertising in magazines became one of the magazine industries'
largest revenue producing resources.

Here is a brief chronological overview of cosmetics from 1900

to 2010:
  1900: Annie Turnbo, a black entrepreneur, starts selling hair conditioners, hair treatments
as well as harmless hair straightening products, and hair growers door-to-door.

 1904: From Lodz, Poland, Max Factors moves to the United States, and 4 years later to the state of
Los Angeles, where he puts make-ups up for sale to movie celebrities that does not crack or cake.

 1909: Eugene Schueller, a French chemist, creates the very first harmless commercial hair dye. In
the year 1910, his company was named L'Oreal.

 1905: Sarah McWilliams starts to sell hair growers from door to door. After being wed to Charles
J. Walker, she became recognized as Madame C.J. Walker and integrated her business in
Indianapolis in the year 1911.

 1909: Cosmetologist Elizabeth Hubbard and Florence Graham open a shop on 5th Avenue in New
York City. After some time, Florence Graham renames their shop Elizabeth Arden
.
 1914: Maybelline has been discovered by T.J. Williams. The cosmetics company of Maybelline
specializes in mascaras.

 1922: The bobby pin has been invented in order to control or deal with short or bobbed hair.

 1932: Charles Lackman, a supplier for nail polish, and Joseph and Charles Revson, distributors for
nail polish, discovered Revlon. Revlon is a cosmetics business that sells nail polish in a broad range
of colors.

 1932: A New York chemist named Lawrence Gelb brings home a hair dye product that goes through
the hair shaft. He also starts a business named Clairol. In the year 1950, he commences Miss Clairol
Hair Color bath, a one step hair coloring product.

 1933: A fresh, new technique for enduring waves, making use of chemicals, which does not need
machinery or electricity, is introduced.
  1935: Pancake make up, initially developed in order to appear natural on dye film, was made by
the famous Max Factor

 1941: Aerosols are actually untested, paving the way for the hairspray.

 1944: Benjamin Green, a pharmacist of Miami Beach, develops the sunscreen in order to shield
soldiers' skins in the South Pacific.
 1958: Mascara wands come out, doing away with the need to apply mascara using a brush.

 1961: Cover Girl cosmetics, one of the 1st brand names put up in grocery stores for sale and aimed
to teens is started by Noxema.

 1963: For the first time in the cosmetic history, Revlon offers its very first powdered blush-on.The
next four decades of cosmetic history can be summed up as follows:

 The 1970's: a softer look became fashionable with painted eyeliners and eyelashes taking a
downturn in sales. White highlighters and soft eye shadows were popular.

 The 1980's: anti-aging, skin care, and beauty treatments (therapy) were the fashion trends that
evolved and there was an emphasis on tanning and the link to cancer.

 The 1990's: Touch© by Yves St. Laurent was launched and became the item to have as part of one's
cosmetic regimen.

 2000 to 2010: History will make this the decade for certified organic and/or natural cosmetics. A
period in which safe, toxic-free products will be launched by many companies around the world,
but the US will be left behind.

Regulations will develop globally to certify cosmetic products as being organic and/or natural, but
through strong lobbyists in Washington, DC, the US Cosmetic Industry will fight legislation to
remove toxic ingredients in cosmetics, claiming their products are perfectly safe. Ultimately, when
cosmetic history is studied sometime in the future, it will show that the industry placed revenue
and profits before the health benefits of consumers.
Certifying organizations, mostly in other countries, will emerge, and although they will each use
different criteria, in the end, they will have provided the consumer with safe, toxic-free cosmetic
products. The hope is that the $50 billion US Cosmetic Industry will be somehow encouraged to
do the same.

The Indian industry is growing and projected to become one of the top 5 global markets by
revenue. The Indian consumer is exposed to international brands more than ever before and is
backed by the technological advancement. Increasing disposable income and image consciousness
are making it favourable to invest in the industry. My aim of this project is to introduce a new
range of Nykaa products, which would focus on moving the brand from mid-market sector to the
premium growing market. Though Nykaa has witnessed exceptional growth in Indian history, the
attractiveness of the industry lures many competitors which make its importance for Nykaa to
strategize market domination by maximising market share. The output be Nykaa’s long-term
survival and market leadership by increasing repurchase, and generating new customers. To
achieve this goal, extensive market research about the brand, its target market, and consumers
along with beauty market research is conducted. Based on the research, the weak spots and a new
area for innovation is identified. Accordingly change in the product culture behaviour, tone, and
visual collateral is recommended. The new product line launch and rollout will aim will aim at
creating excitement awareness and knowledge.

The beauty industry worldwide is blooming. This growth is being witnessed in India as well. With
more and more companies trying to get a share of the market, competition is on the rise. Indian
cosmetics industry particularly lacks a strong Indian origin brand in the premium product segment.
This leave a gap for introducing a product range that is made by an Indian cosmetics brand with
aesthetics that speaks directly to the Indian consumer. The consumer is willing to climb the
premium ladder and so it is the right time to introduce premium product category by blending the
existing brand DNA and current market trends. This project delivers a well-researched proposal to
introduce a colour cosmetic product range with packaging inspired by Indian aesthetics and defines
the target audience for the products along with pricing for each product. The project also introduces
a revamped store layout that appeals to the customers seeking added value. A marketing plan that
reflect the entirely of the brand’s communications, product launches, advertising and competitions.
Creating an integrated marketing campaign that generates awareness knowledge thereby boosting
sales.
 BEAUTY AT THE CLICK OF A MOUSE

Nykaa is an Indian multi-brand beauty retailer, selling cosmetics and wellness products. It is a
successful e-commerce premier online beauty and wellness destination that offers beauty and
wellness products for men and women at best prices. It is an e-Commerce website offering
products from all leading brands such as LAKME, Mac, L’OREAL, Estee lauder, Maybelline,
and many more. Derived from the Sanskrit word “Nayaka” that literally means “Actress” or one
in the spotlight, Nykaa.com is all about celebrating the star in you. Nykaa offers a
comprehensive selection of makeup, skincare, hair care, fragrances, bath, body and luxury
products for women and men at the best price. In terms of both international and Indian, luxury
and mass, Nkyaa is continuously adding new labels to its stock. Additionally, one can also avail
beauty services such as Spa/Salon, At home, Skin Treatments, Makeup Artists, Diet Consultants,
Gyms, Misc. Services, etc, as well. In just Five years Nykaa has emerged the most as the most
significant beauty destination in India with half a million happy customers shopping at Nykaa,
not just for their favourite brands, but also for advice, updates, expert tips, and videos on how to
look and feel gorgeous always.

My project work, to find out what people think about the brand after lot many years served by

This is an attempt to know current brand image, customer’s suggestions & innovations what
people want.

OBJECTIVE

Nykaa’s objective should be to target one segment and focus on it. Nykaa’s objective is to scale
up its cosmetics as a full blown FMCG business by reaching out to close to 9,000-stores. Nykaa
want to bring the best to Indian consumers and fill the gaps in the market.
 MISSION

Nykaa rests on three deals – curation, information and personalization. Nykaa bring together the
best offering, to help our customers make the right choice for their holistic beauty needs every
step of the way.

Nykaa is an e-commerce website founded in 2012 by Falguni Nayar headquartered at Mumbai

Maharashtra. She was born and raised in Mumbai. Falguni Nayar is a graduate of the Indian
Institute of Ahmedabad. In 1993, Falguni joined Kotak Mahindra Bank as a Head of their
Investment Banking division. After eight years of managing their international operations in the
US and the UK; Falguni then moved on to take over the role of Managing Director of their
investment banking business in 2005. Over the period of 10 years, she successfully leads the firm
to become India’s leading IPO bankers and was also the key person behind the closure of a number
of successful M&As as well. She took a job as a management consultant after completing her
degree of MBA in Finance. Her husband whom she met at business school, took a job in finance.
 He is now a CEO of KKR India. Other than that, she was a Founding Member of the Asia Society
in India, and also sits on the boards of several companies, including the Aviva Insurance Board,
Dabur India, Tata Motors (as an Independent Member), as well.

Over the period of time, – she also has managed to receive many accolades throughout her career.
The most notable ones include: –

 The FICCI Ladies Organization (FLO) award for the top woman achiever in the field of banking
 The Business Today award recognizing her as one of the top 25 women in business

Finally, in 2012, she left Kotak to start her own venture – Nykaa.com! After leaving her job from
Kotak Mahindra Capital Co. Falguni Nayar, Managing Director, she started looking for business
opportunities in India, and noticed a huge gap in the beauty products market.

Falguni Nayar got the idea of starting Nykaa when she once walked into
a Sephora store. She was amazed by the variety of brands available at the store. She bought
products worth hundreds of dollars. The sales associates showed her the best way to use
them. They recommended her best beauty products without any bias. She felt that there is a dearth
of multi-brand chains in India in beauty and wellness. At the age of 50, Nayar gave up her stellar
career at Kotak Mahindra and turned into an entrepreneur. That’s how Nykaa Business Model was
formed. The demand was on the top, but there were only few places to get genuine beauty products
so she launched Nykaa with her husband, Sanjay Nayar in 2012. She raised a total of INR 280
Crore(USD 41.6 Million) through multiple rounds of funding. Nyka generated INR 260
Crore(USD 38.4 Million) turnover in 6 years. Nykaa’s revenue has grown close to 300% in past
two years. The company is also eyeing for an initial public offering in 2020. Nykaa is receiving
16,000 orders in a day. India’s beauty market is dominated by Nykaa, which commands a 33%
share. Makeup accounts for about 60% the sales, Skincare makes up 26%, haircare takes about
18% of the sales. Men centric products contributes 7% and the rest of the sales revenue is derived
from bath products, perfumes, beauty appliances, etc. As your beauty buddy, Nykaa also offers
expert advice and guidance, through their must-read Beauty and Makeup Blog –‘Beauty Book’,
which accounts from 25 leading makeup stylists, skin, hair, personal care and wellness experts
who answer any questions or concerns that one may have related to beauty, health, nutrition and
 personal care. This section also includes a Virtual Makeover tool to try and share different makeup
looks as well.
Beyond that, Nykaa also has a section called – ‘Ask Nykaa’, which is a community of fellow
members of the portal for all the questions and doubts that one may have before they purchase a
product from the site.

WHAT IS NYKAA’A BUSINESS AND OPERATING MODEL:

Unlike bigger e-commerce players who prefer the marketplace model, Nykaa believes in storing
most of their inventory; 85%, to be specific! This leads to a much more superior user experience
with extra fast delivery.

Below mentioned are the steps to place the order: –

 Visit www.nykaa.com
 Click on “Account” on the top right-hand corner of the page and then “Sign Up” to register with
Nykaa
 Once you have shortlisted your choice of purchase, click the “Add to bag” button to add them to
your shopping bag
 Click on your shopping bag on the top-right corner to use the offered discount coupons by
clicking on “Got a Coupon Code? Apply it here”.
 Next, click on the “Checkout” button and fill in the email address, shipping address, and
payment details.
 Then, click on “place order” to go ahead
 Once the order is placed, you will see a confirmation page with an order number. This would
also be emailed to you as well.
 After the ordered products pass through the final round of quality check and inspection, they are
packed and handed over to Nykaa’s trusted delivery partners and are delivered
 The orders are dispatched within 1-4 business days (excluding Sundays and public holidays).
Nykaa ships their products across the country with the help of leading and reliable courier
companies.
 Some of their payment options include: Debit and Credit Cards, Net banking, Cash on Delivery,
PayUmoney, Wallets, e-Gift cards, Wallets, e-Gift cards

Additionally, to maintain the reputation for product quality and reliability, Nykaa makes sure to
put in all the efforts to do so, from – random sampling of products that are near expiry, surprise
checks at the warehouse to make sure all quality control measures are implemented, and
choosing the most reliable courier partners across the country.

Plus, to ensure that no fake products are sold, Nykaa also controls the entire value chain from
product sourcing to final sale too.

For any queries, feel free to contact them on support@nykaa.com or chat with them by clicking
on the “Chat with us” tab at the bottom of the screen.

ACCOLADES AND CSR

‘The Most Innovative Ecommerce Company’ award at the e-Tales Awards (2015)

Collaborated with Femina to host the ‘Nykaa.com Femina Beauty Awards’ (2015 and 2016)
Nykaa raised funds for Project ‘Nanhi Kali’ (an Indian NGOs for Girl child Education that
provides primary education to underprivileged girl children in India) on the occasion of
International Women’s Day (2015).

WHO ARE NYKAA.

WHAT DEFINES NYKAA?

 HISTORY

Founder- Falguni Nayar

Nihir Parikh – Chief Business Officer for the E-commerce Business

Sanjay Suri – Chief Technology Officer.

Sachin Parikh – Chief Financial Officer.

Madhavi Irani – Chief Content Officer.

Hitesh Malhotra – Chief Marketing Officer.

Manoj Jaiswal – Chief Supply Chain Officer.

Nykaa Business Model (Analysis):

Nykaa is one of the rare companies which follow an Inventory based E-commerce model.

Inventory Model:

 The company stores the stock of goods purchased directly from manufacturers.

 They store the products in their warehouses.

 Nykaa’s business has warehouses in New Delhi, Mumbai and Bangalore.

 The products are sold directly from there.

In this, the profit margin is high. The responsibility of any damage lies with the company.
They achieved their breakeven after 5 years of operations. Initially, the cost to acquire a
customer was Rs. 1000 which has now reduced to Rs.200-300.Nykaa has its offline presence in
35 stores.

Nykaa has two store formats – Nykaa Luxe and Nykaa On-Trend
Along with the website, Nykaa has entered the brick and mortar space with two formats- NYKAA
LUXE and NYKAA ON TRENDS. The Luxe format features Indian & International luxury beauty
brands along with Nykaa Beauty, the in-houses collection of beauty products. The On trend format
has products by category based on their popularity.
Nykaa in-house products were launched in the year 2015 with 30 nail enamels collection in bath
and body products along with essential oils. Nykaa’s in-house products contributes 10-20% of its
overall revenue. Private label earns a margin of 40-60%, which 10-20% more than what the
company earns by selling branded products based on the platform. The company has entered into
apparel segment with the launch of lingerie which contributes 5% of the revenues. The Luxe
business has 14% revenue contribution, INR 2300 (USD 35.4) Average order value, 45+ brands
and 30% revenue comes from metro cities.
The beauty industry is known to be resistant to economic downturns - even fairing well during
the Great recession of 2008. Tough consumers lend to be more price conscious during those
times, they do not stop sending. So in today’s environment of rising per capita incomes the
beauty business in booming.
The global beauty market is predicted to grow from USD 50.4 Billion in 2018 to USD 57.1
Billion by 2021. In the US, Retail Dives notes that beauty specialty stores grew their market
share from 12% to 14.3% in 2016. NPD group found that online growth has been massive in the
sector, and Forbes estimates there are at least 40 beauty startups founded by women, making the
USD 455 Billion in sales. The online revenue is forecasted to increase from 16% to 17.1% of the
total Cosmetics and Personal care market but brick and mortar will still dominate with 82.9%
revenue generation.
Gone are the days when celebrity looks and endorsements set trends in beauty industry, 82%
women believe social media drives the trends now. The ad budgets are redefined by shifting
focus from traditional televisions and print ads to Instagram and Youtube. The most important
aspect in beauty industry is knowledge and social media provides constant flow of information
by trendsetters, celebrities, and friends. Beauty brands create product experience through media
and they are becoming more diverse and inclusive. In the past year, global views of beauty
videos on you tube surged 60%, 219 billion, according Pixability, a Boston based company that
tracks influencers and provides data to brands. Pixability estimated that Millennials makeup 60%
of the beauty audience.

HOW HAS BEEN NYKAA’S GROWTH SO FAR

Falguni founded Nykaa.com when she was looking at various business options. This one
particular trend that she noticed was countries like Japan, France, and Europe had stores like
Harrods, Bloomingdale’s and Saks Fifth Avenue that offered a wide range of beauty products
and fragrances. But unlike them, even after having a huge demand, India did not have many such
outlets.

Later, she also studied and observed Sephora – a US-based multi-brand retailer, which offered its
customers an unbiased advice about multiple brands and products.
Around that time, the eCommerce sector had begun to take off in 2012 when she quit investment
banking. There was a need for a multi-brand retail format in the beauty business in India, and the
millennials exactly knew what they wanted and were also open to change.

So if you wanted to cater to such customers, a few brands on display would not have been
enough; but instead, you’d need performance-based products!
She understood that this segment had a large market to be catered and eCommerce would be
more efficient way to service all the customers with a long-tail inventory market in India.

Hence, inspired by the concept and a keen interest in the segment; Falguni along with her banker
husband Sanjay Nayar, started Nykaa.com. The Nayars invested $2 Mn from their own pockets
and controlled roughly 95% stake, while employees held the remaining stake.
They started off with an extensive selection of curated and branded products through an initial
offering of 100+ brands and 4000+ SKUs (stock keeping units), and received their first order on
24thOctober 2012.
In the next two years, not only did Nykaa open their first physical store in Delhi’s T-3 Terminal
(August 2014), but were also booking a staggering growth of 323%, with 1.5 million visitors and
50,000 unique visitors a month.

They had now expanded to over 350 brands and 35,000 products and were also claiming to have
sold more than 1.25 million products to 178,659 customers till date.
They were now directly competing with companies like Purple, as well as large online retailers
such as Amazon.

More recently, the company has also introduced their privately labeled products in the bath and
body care category and have also expanded their physical outlet to Mumbai airport as well.

Talking about their funding – Nykaa.com has raised a total of $12.9M from a clutch of investors,
including high-net-worth individuals (HNIs), non-resident Indians (NRIs) and family offices,
along with TVS Capital, Atul Nishar, Harsh Mariwala, Dalip Pathak (who established the India
business for private equity firm Warburg Pincus, LLC in 1994), Techpro Ventures Private
Limited, etc…

Going ahead, Nykaa aims to open offline stores in Mumbai, Delhi, and Bangalore by the end of
this year. They also intend to raise roughly ₹100 crores more, to expand their private labels and
offline stores, and for marketing and setting up warehouses.

COSMETICS REVENUE & SALES

Premiumisation is driving standards across all levels in the beauty industry. As standards
improve, luxury is becoming more accessible to ordinary consumers, notably millennials, who
tend to be at the forefront of lifestyle changes. For wealthier consumers, this is more pronounced
through personalized services, such as smart diagnostics. Going forward, the use of
digital technology will become more sophisticated as augmented reality and artificial intelligence
become mainstream. The beauty Industry is moving beyond the standard options and is adopting
customized beauty products. The millennial era is equipped with apps and technology which
makes it easier to adapt customized beauty products. Web-based questionnaires and remote
expert recommendations helps gather data to give individuals the best possible beauty products
that are tailored to their individual needs. When for personal goals, generic off-the-shelf products
are just not enough as they lack versatility and serves just one purpose. Micro-customization on
the other hand allows the consumer to personalize their products based on their needs.
Instagram influencer marketing has proved to be successful for many brands and more and more
brands are rating influencer marketing in their budgets. With the increasing competition
influencers are to thousands of products and when faced with relatively similar quality they tend
to pick the more eye catching one that will look amazing on Instagram. It is important for brands
to focus on giving consideration to the power of social sharing for targeting millennials and Gen
Z by crafting 'gram-friendly packaging. Merging product and brand marketing is necessary in
today's retail environment. There has a new shift from range of shades to fit every skin tone to
availability of broad-shade-spectrum foundations and concealer included in mainstream brands.
Popularly known as the Fenty effect this trend is being reflected on the runway and in media
with representation of more diversity. The name Fenty effect comes from the most talked about
Fenty Beauty by Rihanna that launched the Pro Filt'r Foundation that offered 40 shades options.
The trend of treating body like face has led to increase in ærums, cleaners to fight pollution, acid
exfoliators for body and moisturizers with SPF. Simplification of prcKiucts with the new
technological advances is seen in a-in-I products. With evolving consumer demands and climatic
changes around the world, the beauty and care industry's approach to natural and sustainable
ingredients must adapt. A move to become more 'local' in terms of ingredient sources will
create opportunities for consumers to protect and preserve resources within their surrounding
environment. Augmented reality has become mainstream in beauty industry. The functionality of
the technology is not confined to the websites and apps but is also moving to in-store experience.
From helping customers with try-on to providing additional information on and offers,
Augmented Reality has tH)osted fcn)t traffic into brick-and-mortar stores. According
to Statista, by 2021 17% of the total revenue generated will be through online sales in the
cosmetics and personal care market. This means that brick-and-mortar stores are still going to be
an important aspect when making purchase and purchase decisions.

MARKET OVERVIEW

The categories of Indian cosmetics industry are skin care, hair care, oral care, fragrances, and
color cosmetics segments. It currently has an overall market standing of USD 6.5 billion and is
expected to grow to USD 20 billion by 2025 with a CAGR of 250k In comparison, the global
cosmetics market is growing steadily at •1.3% CAGR and will reach USD •150 billion
by 2025. This means that by 2025, India will constitute 5% of the total global cosmetics market
and become one of the revenue. GDP is forecasted to grow 7.6% in 2018 helping the middle
class and increase top 5 global markets by consumer spending beyond essentials. Key growth
drivers in this sector are I) improving purchasing power, 2) demand for enhanced products, 3)
increasing image consciousness, a) social media to spread awareness, and 5) favorable
demographics in metro as well as I and 2 tier cities. These factors will be beneficial for Nykaa's
new product line as the brand can leverage on the consumers beyond the metro cities and who
are willing to spend the extra amount for enhancing their look. Elite and affluent households are
the fastest growing classes. This is changing consumer and spending patterns as the income is
rising and society is evolving. It is forecasted to the largest combined segment by 2025.
According to BCGCCI consumption survey 2016, Indian consumers are trading up with greater
enthusiasm shifting towards higher quality, higher price subsequent with the category. They also
said that of consumers are willing to spend extra on products perceived as 'better' than products
found in developed markets.

Shopping has become more social and frequent involving family members and friends.
Immediate gratification is becoming more important and asset creation. Rising internet
penetration is leading to consumers using internet to make purchase decisions. Convenience is
the biggest force driving online shopping growth. Discounts are another feature popular in online
shopping. But trust in stores is still a barrier along with difficulty in navigating website, and fear
of fake products makes it important to have offline format as well. The Indian market is getting
bolder, more consumer brands are expected to come up in the beauty space in the next five years.
According to a report by Google and Bain & Company, beauty and hygiene-related searches on
beauty is in-third highest after apparel and mobile phones in shipping-related searches. India’s
average spending on beauty is increasing as social media has high impact on the rising Indian
middle-class and millennials increasing purchasing power.
India’s beauty and personal care consumer appears to be laying special emphasis on both looking
and feeling good. The domestic beauty and personal care market, worth USD 8 billion currently,
is slated to grow on an annual rate of 5-6 percent over the next few years to touch USD 10.5
billion by 2021. A recently released report by the Indian Beauty and Hygiene Association, an
apex body of beauty and personal care majors, and AT Kearney says that not only women, but
men too are becoming significant users of beauty products. The report says that the men’s
grooming market will touch USD1.5 billion b 2021, a nearly twofold growth in five years.