DIGITAL MARKETING PROJECT

(NYKA)

Submitted by:-

Group 10
Niyati Gupta
Parul Sharma
Priya Batra
Rohan Deep Singh
Sakshi Pasricha
Shievangi Narayani
Introduction

Our product for the project Nyka.com was founded in 2012 by Falguni Nayar, former
managing director of Kotak Mahindra Capital Company. Since then, Nykaa has
become a popular brand in the e-commerce & Retail Industry.

Nykaa has grown strength to strength over years; they have always focussed on
customer needs and worked closely with its brands to achieve the desired results.

Nykaa has quickly emerged as India’s largest Omni channel beauty destination with
millions of happy customers across the country. From bringing brands and keeping
up-to-date with the latest beauty trends, expert advice and videos, to more than 30
Luxe and On-Trend Stores, an ever-growing online community for beauty buffs, and a
Beauty Helpline.

With 1200+, 100% genuine brands, and six warehouses across India that stock lakhs
of well curated, well priced products, Nykaa offers a comprehensive selection of
makeup, skincare, hair care, fragrances, personal care, luxury and wellness products
for women and men.

Nykaa faces immense competition from players such as Purplle.com, Amazon,

Flipkart, as well as the digital platforms of all the brands who are present on the
Nykaa platform. Diving deeper into the different verticals, it can also be extrapolated
that when it comes to men’s grooming (a separate industry in its own right) start-ups
such as The Man Company, Elitify, are contending for market share with Nykaa.

Nykaa is looking to grow further, however. They are also looking at an offline
presence. There is a lot of research that points to e-commerce basically moving
towards Omni-channel, with people losing the ability to differentiate between
channels.
A. Digital Marketing presence of Nyka as per the assessment
Model.
Nykaa will follow an inventory-based model with warehouses in Mumbai, New Delhi,
and Chennai as its offline presence is in 60 stores and expanding. Nykaa's core target
audience is the 18-45 age group.

Nykaa Business Model(Analysis):

Nykaa will follow an Inventory based E-commerce model.

Inventory Model:
The company stores the stock of goods will purchase directly from manufacturers.
And will store the products in their warehouses.
Nykaa’s business will have main warehouses in New Delhi, Mumbai and Bangalore.
The products will be sold directly from there. The responsibility of any damage lies
with the company.

Nykaa Marketing Strategy:

We will use online advertising to promote the products.

Nykaa will collaborate with Femina to host the ‘Nykaa.com Femina Beauty Awards’.
Which will provide easy shopping experience, the virtual makeover tool, beauty
advice, tutorials and celebrity looks. NYKAA will use digital marketing as a means to
market their website.

Nykaa is basically targeting customers through niche marketing strategy, specially the
upper middleclass society and more specifically women and also partly men. We have
segmented its customers through demographic, psychographic surveys.

Nyka’s competitors such as purple.com, amazon, flipkart also sell products in beauty
and personal care. Hence consumer can get several options of purchasing from
different websites and also compare prices of the prices of the products.

Nykaa has plenty of choices in wellness service with their exclusive grab on coupons
which usually attract customers. It will also offer season deals and coupons with
exciting benefits to its customers so that they keep on purchasing items from the
portal.

Nykaa does its promotion at zero budget, social websites like Facebook, Twitter and
YouTube are the best platform to promote a company. Creating blogpost and website
to generate awareness will be made and a website through which customer can access
easily. For android users play store and for Apple users AppStore are two places for
this app.
Nyka SWOT analysis

Strength
It has first mover advantage
Strong relationship with existing customers

Weakness
As a start-up Nykaa has not been able to reach the remote areas of India whereas
amazon, flipkart has succeeded.

Opportunity
Using the best data management and sharp targeting technique Nykaa has an
opposition to expand its business over the neighbour countries of India.

Threat
Though Nykaa is new, however does not figure as the top recall when it comes to
beauty and wellbeing products and due to niche category not too many targeting
options are discovered.

B. Nyka’s Digital Marketing Objectives

• Stakeholder Driven
Nyka with a pretty significant business in terms of online beauty retailing and now
have 35 stores and are continue to grow.

We have got into new initiatives like fashion and focusing own private label called
Nykaa cosmetics as well as Nykaa Bath and Body. There are a number of ranges
within the private label offerings.

They have business has a valuation at $750 million. As an online website, get 40
million visitors a month from 15 million unique visitors. Last year, revenues of Rs
570 crore and this year to close at Rs 1,200 crore.

Having more than 1,000 brands and e-commerce is major contributor with 85-90% of
its revenue.

• Customer Driven
Nyka’s biggest attraction is firstly through bringing top most brand of make and
beauty products worldwide under single website from mac to Sephora they have it all.

Not only they have big brands but along with that they have it for all, so that people
can buy them without making their pockets empty for which will have interactive
contests, special rewards through emails, voucher, huge discounts on premium brands
online and offline, pinning popular user posts, prizes through campaigns on social
media.
Our communication game is pretty strong and try to communicate majorly through all
the channels like social media (Instagram, Facebook,) magazines
their own application, YouTube tutorials which covers from awareness to purchase.

There are over 5000 monthly brands which they provide with product
recommendations to queries of fellow users. Main focus is to turn a potential customer
into brand loyalists not just by providing the product but also through giving
knowledge about the product, its use so that a customer finally changes into brand
advocate.

Will work more focus on word of mouth as that is the most organic way of getting
more customers.

• Market Driven
Nyka’s success will majorly depend on one such factor of being the influencer
marketer of a beauty brands. In other words, we can say Nyka is a market leader and a
preferred destination for online beauty and wellness products in India.

Nykaa will offer a comprehensive selection of cosmetics, skincare, haircare,

fragrances, bath and body, luxury and wellness products for women and men.

The beauty industry is driven by constant innovation and aesthetic technology

improvement, coupled with consumers changing their preferences at the same pace.
With this background, Nykaa's deep understanding of customers' desires and Nykaa's
ability to offer the best products in India.

Nyka will have bunch of campaigns, like one recent that gathered a lot of popularity
was “Its kay to be you” which was launched in October 2019. Whose face of Katrina
Kaif which portrayed women celebrating different kinds of beauty in each woman.
The prices launched under this campaign were also very reasonable (Price starts at Rs.
249 of a lipstick of a good brand) with a view to reach customer base of lower middle
class as well.

Our marketing strategy is that for each woman, and try to be her confidante and
companion and to discover her unique identity and personal style. And want to
become a brand that every woman wants. (Brand includes – Nyka cosmetics, Nyka
beauty etc.)
From the widest selection of genuine beauty products from around the world to beauty
advice, Nykaa is truly passionate about catering every kind of beauty.

Marketing expenses are generally done on the digital platforms, as the focus will be a
lot more on YouTube page, blogs, social media pages, and own application. This also
shows there is more of experiential marketing like Nyka fashion shows, college brand
activation, do makeovers across malls, advertise with majorly beauty and fashion
magazines.
Nyka has given importance to influencer marketing and stores are equally important.

• Competitors Driven
The have a quit number of competitors like Purple, New-U, Blue Heaven, Sugar
which are providing a decent competition to Nyka. Although they all have
significantly less market share than Nyka also it has indirect competitors like beauty
products on myntra, amazon, flipkart.

Nyka’s Competitive Advantage is having both online and offline presence and are
focusing equally on offline retail stores and focus on at least opening another 50-70
stores.

Innovative strategies and customer centricity are bound to bring more customers into
Nykaa’s sphere, leaving all other competitors far behind.

A curated catalogue, well-structured website, and a wide range of products is the

reason behind Nykaa’s 15,000 orders per day record. Our motive is to create a brand
value in the minds of its consumers as a premium retailer of quality products and not
one of a cheap seller.

C. STP 2.0 Framework
Nykaa is a multi-brand beauty retailer, both online and offline. Also as Nykaa has
many luxury brands as well, we are segmenting people who are brand oriented
without any price constraint and lives a luxurious lifestyle. So, we thought of
positioning our ads and posts on such platforms where these newbies and our other
targeted audience will get more engaged.

Segmentation
1. Demographic Segmentation:
• Age: 21-40 years old
• Income: 5-10 Lakhs of Package
• Gender: Both male and females
2. Psychographic Segmentation:
• Luxurious Lifestyle
• Brand Oriented
• Not highly price sensitive
3. Behavioural Segmentation:
• High degree of loyalty
• High users
Targeting
1. Newbies to matured women
2. Have to travel frequently
3. Self-earning
4. Well-groomed and up-to-date for trends
5. Always up for discounts
6. Highly active on social sites

Positioning
1. Billboards Ad
2. Metro Commercials
3. Radio
4. Discounts on Instagram Stories
5. Attractive snaps on Snapchat
6. Happy client stories on Facebook and Twitter
7. Bloggers
8. Beauty Magazines

D. Persona & Positioning for Nyka

Developing a persona

Natasha who is a 24-year-old, working in E&Y having package of 8 Lakhs is an HR

manager graduated from Delhi University, from past 2 years she is in the industry. For
her being recognised as a star performer, satisfaction regarding her work, impact on
work, being leader and being up to date are major motivational factors. Her values are
being transparent and no compromise with trust, being independent and always fight
for her own rights are embedded in her.
Being a hard worker she never wants to lose the corporate race or hates being left out
in crowd and faces a little anxiety.
She is always on the wheels and is a big traveller and always up for new experience
through her products choices she wants to gain confidence and uniqueness also wishes
to become a blogger one day.

The main source of information is when after a tiring day when she sips her coffee,
she gets updated through various blogs, Facebook Instagram while travelling as well
through public transport, metros etc.

She is a shopaholic and huge knowledge about branded product and keeps her
weekends busy on being online shopping or going to beauty stores and lifestyle.
Positioning

We have assumed that our consumer Natasha, has intent and awareness and we want
her to position into the interest so that it leads to action (which will lead her to buy the
product).

Natasha has always dreamt of becoming a fashion/ lifestyle blogger also focus a lot on
views and learning new things, for which the advertisement will be on Instagram,
Facebook and various blogs. There will be constant links to YouTube tutorial which
will instigate to her to buy the product. As Nykaa has different pages for its all
different lines like MyNyka, Nyka beauty, Nyka fashion.

Along with this the retail offline stores will be having different kind of discounts and
coupons available for buyers like her to get a physical experience with the product.

“Statement of Positioning” for our product is to leave no one behind, with its focus
on giving advices, creating new trends and stay up to date with Nyka”. More than just
a beauty & lifestyle website who is girl’s best friend & advisor. A journey to discover
your unique identity and personal style creating passionate about beauty and wellness
need. Because after all, Your Beauty is Our Passion.

E. Media channels for Nyka

Nyka’s is giving its share of personal touch through paid partnership with bloggers
which will give an insight on products sold by Nyka providing a connection with the
customers which is a paid media, and also they give ultimate offers through their
application and website through owned media.

F. Core Elements described for Nyka considering the 6s digital

marketing implementation groups.

Core Elements

1. Channels: Nykaa owns a dedicated YouTube Channel “Nykaa TV” that provides
consumers with up-to-date and best video guidance for using beauty and wellness
products. Also leverages various social media platforms for engaging the
customers and generating leads but also converting them into sales by offering
them with various discounts. Through the use of Facebook fan page for sharing
various deals and offers by integrating a “Shop Now” option on it that redirects
consumers to their e-commerce website for purchasing the beauty products. They
have 1.4 million followers on their platform.
2. Affiliates: These sites end stores which sell same product category. Sites can be
searched by the type of visitors and keywords used. Comparison sites are
Purple.com, New U and Sugar.

3. Content Creators: Janhvi Kapoor as the brand ambassador of Nykaa. She will
appear in digital, TV and print advertising campaigns and play an active role in
creating social media content. The company makes use of high-end content forms
for making people aware of the trends. They have an active blog on beauty and
wellness providing make-up tips and expert advices. By keeping the users engaged
through some interesting contents on its blog and social media has driven many
customers on their web portal.

4. Customers: Nykaa has both online and offline presence. They will attract
customers through interactive contest, rewards, surprise giveaway and popular user
posts by focusing on offline where they want at least 120 to 150 offline stores.
They try to communicate constantly starting from awareness to purchase. They
also provide product recommendations to queries of fellow users.

6s digital marketing implementation groups.

The six stages of digital marketing implementation where Nykaa is placed is

Established Stage where the product is already stable by gaining its name in fashion
and cosmetic industry.

Stage DS5 (Digital Scale-up) involves Nykaa scaled up rapidly and leveraged across
various social media platforms for encouraging the customers and generated leads but
also converted them into sales.

The company makes use of Facebook fan page for sharing various deals and offers by
integrating a “Shop Now” option on it that redirects consumers to their e-commerce
website.

Twitter witnessed 11.1k followers where the content and social media marketing team
posts attractive and lucrative contents over the platform that helps the company to
increase their followers.

The company offers coupons and offers to its customers so that they keep on
purchasing items from the portal. During the festive time, the brand promotes
themselves on various platforms by using various tools.

They make use of coupons and discount deals to attract more and more customers. It
has an Omni channel environment and are present across major earned and paid media
channels such as Instagram and Snapchat.
G. Lead generation, Lead nurturing, Lead Scoring and Lead
Conversion for Nyka
Lead Generation
Definition of Lead: Our leads will be mainly women of age 18-35, who are well aware
about the beauty products and are up to date and who are majorly active on various
media platforms and are serious about quality factors and stress.

We will find our leads through offline and as well as online as there are some of the
feedback provided on retail outlets also through the followers on various blog pages,
email ids and YouTube users.

After finding, our classification is done on the basis that the mass will be from urban
areas, having a budget for a product from 200-1000, need for which will be urge to
remain in up to date circle. Also from people who travel the most.

For our company, quality leads would be ladies of age less than 35 and have good
knowledge or can say well educated.

As for our product Nykaa there is intent and awareness but while working on interest
stage we will try to make customer land on our main website page where they can see
different offers and varieties of products along with which they have certain YouTube
links for the tutorials and blogs to provide them with the complete information.

This will eventually lead to action stage.

Lead Nurturing
Nykaa nurtures will lead by asking what product does our prospective lead wants and
also of which brand and colour. As Nykaa is supreme seller of herbal cosmetic
products, it also explains why and how herbal products are more beneficial for our
skin, through its articles and other fashion bloggers.

It will nurture leads through social media like Instagram, Facebook and Snapchat by
posting videos of process of applying and using a particular product. We have also
started it’s Nykaa Network, which is online beauty market place, and different users
add their reviews there and can communicate with each other. Content at Nykaa
Network is completely User Generated. So, this is how Nykaa is nurturing it’s leads.

Lead Scoring
It is a method to rank prospects to understand the importance and relevance of
following up with each lead in relation to the firm’s investment.
From the very beginning, Nykaa’s marketing team was driven and focused on
acquiring new customers and retargeting uninstalled users. Acquiring customers is the
first challenge, but re-engaging users to boost ROI is the true winning story.
Using AppsFlyer as their mobile attribution platform, Nykaa will quickly scaled its
user base whilst optimizing its paid media campaigns in real-time. Rich in-app events
helped Nykaa gain deeper customer insights and run effective result-driven retargeting
campaigns per cohort group. Retargeting attribution, retention and cohort reports
helped Nykaa improve user engagement and purchase activity; doubling the life-time
value of their customers.

AppsFlyer’s ‘Audiences’ feature improves cost per install and retention rate

Segmentation by complex user behaviour:

Nykaa wanted to re-target users who had uninstalled the app and analyse their user
behaviour that led to the uninstall event. By identifying users within this category, will
run very specific retargeting campaigns through AppsFlyer’s integrated partners and
successfully re-engaged uninstalled users, then converted them into active customers.
The exclusivity of audiences for segmenting users worked wonderfully for the brand
and increased the retention rate by 55%.

So in this way they will started analysing each site and started working on their lead
scoring process.

Lead Conversion

Nykaa mainly focuses on digital world for generating their leads.

The conversion page or the web page of Nykaa is the nykaa.com or the Nykaa app, it
will provide users with all the information about all their products and what are the
offers that are being offered on different products.

Nykaa use Google, Facebook, Instagram quiet extensively and then it also leverages
“Nykaa App” which is very successful in ranking for huge amount of organic traffic.

It also uses CRM and SEO very significantly along with outdoor and television
periodically. It believes in total 360-degree marketing and employ each of these.
These social media platforms work as landing page for Nykaa. So Nykaa basically
creates content first and then ask the market influencers to influence people by using
their products on different media channels by sharing knowledge for people, and by
this way their lead gets converted for buying the product.
H. Digital market campaign and key ways for execution of our
campaign of Nyka
As our product is Nykaa, we will run an online campaign. Campaign planning will
include those digital platforms which are existing and also some of the new.
Our product is an online website Nykaa which has a big platform online sells beauty,
lifestyle’s makeup products majority for women, who are of age 18-45, independent
working or non-working are about the brand.

Our campaign message is “to be your own hero”

#be a nyka hero, to represent how inner beauty plays a big role in women’s life. Also,
our campaign is inspired by an acid attack survivor “Laxmi Aggarwal” to portray an
image that beauty has no proper definitions and confidence plays a major role.
So through nykka, women can show their nyka moment where they can be teal & how
Nykaa as a brand provides them with confidence.

Our campaign run time will be of 6 weeks, beginning of the new year and will be on
Facebook, Instapages and on our own website and also on our app. We will run on
Wednesday and Thursday between 1 pm and 3 pm

About the campaign budget

In the recent research it was analysed that then was 2.4 million organise traffic
whereas only 128k was from paid campaigns. It is assumed that nykaa doesn’t need to
invest more on bids to gain its traffic

Campaign setup
Nykaa indulges with different organisations which sponsor different award and beauty
shows, so we will start our campaign around the starting of these fashion and award
shows. We will involve “Laxmi Aggarwal” Asa face of our campaign

Campaign Monitor
We will firstly, monitor all the social media analysts, which will help to organise our
ongoing campaign

Execution of campaign
We will execute our campaign with the help of advertising agents and then when it
will be successful. We can go for in-house marketing
We will run on Wednesday and Thursday between 1 pm and 3 pm