RESEARCH PROJECT REPORT

ON
“A STUDY ON CONSUMER BEHAVIOUR TOWARDS NYKAA”

Towards partial fulfilment of

MASTERS OF BUSINESS ADMINISTRATION

BBD UNIVERSITY, LUCKNOW

Submitted to- Submitted by-

DR. SHEKHAR SRIVASTAVA DIVYA SAHU

ASSISTANT PROFESSOR 1200672066

SOM, BBDU Lucknow MBA IVth SEMESTER

Session 2021-2022

School of Management

Babu Banarasi Das University

Sector 1, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow

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PLAGIARISM CERTIFICATE

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 DECLARATION

I DIVYA SAHU declare that the work presented in this research report entitled A STUDY ON

CONSUMER BEHAVIOUR TOWARDS NYKAA is carried out and being submitted at the SCHOOL

OF MANAGEMENT of BABU BANARASI DAS UNIVERSITY for the award of MASTERS OF

BUSINESS ADMINISTRATION. The work carried out under the guidance of faculty guide DR. SHEKAR

SRIVASTAVA. This report hasn’t been submitted at any other place for any other purpose.

DIVYA SAHU

1200672066

MBA IVTH SEMESTER

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 ACKNOWLEDGEMENT

I would express my gratitude to Prof. DR. SUSHIL PANDE DEAN of SOM at BBDU for providing me

the opportunity to work on this research project. Secondly a sincere appreciation for my faculty guide DR.

SHEKHAR SRIVASTAVA for his guidance and support throughout the project. It his due to his efforts

that mu project has gained present stature.

At last, it was the support and encouragement of my family and friends which kept me motivated to work

dedicatedly throughout,

The experience gained throughout this project was essential for me at this turning point of my career.

DIVYA SAHU

1200672066

MBA IVTH SEMESTER

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SYNOPSIS

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 SYNOPSIS

The cosmetic industry is one of the major industries that have attracted many players due to its rapid growth.

The cosmetic industry plays an important role in developing country’s economy. This research project report

titled A STUDY ON CONSUMER BEHAVIOUR TOWARDS NYKAA aims at studying the consumer

behaviour, attitude and opinion towards the brand, marketing strategy, mass consumer reach and market

status. NYKAA is one of the leading companies in the cosmetics industry. It offers various brands on one

platform. Founded in 2012 by FALGUNI NAYAR. She foresaw a huge opportunity for online trading in the

next few years and turned that opportunity into a big vision. Her decision was not wrong, and it led to the

birth of a big business. Working internationally, we attract clients from different regions. He first started a

business providing beauty products and later diversified his business into fashion, skin care and luxury. This

study is conducted to evaluate consumer buying behaviour and marketing strategies used by NYKAA to be

one of the top companies in ecommerce.

Research Methodology

In this report, an attempt is made to evaluate-

Consumer buying behaviour

Marketing strategy

Market status

Attitude- opinion

Wide consumer reach

Findings

From this study, its clear that NYKAA is doing very well in E- retailing and gives tough competition to rival

firms, with strong marketing strategy. Giving a platform to small entrepreneurs to grow along with their

successful journey

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 Keywords

Nykaa, Consumer Behaviour, Marketing, Beauty, Entrepreneur

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TABLE OF CONTENT

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INTRODUCTION

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 CONSUMER BUYING BEHAVIOUR

• Consumer behaviour studies consumers and their processes used to choose, consume, dispose of products

a, including consumers’ emotional, mental, and behaviour responses

Why is consumer behaviour important?

• Consumer behaviour study is important because it helps researchers understand consumers influence and

buying decisions.

• Understanding consumers buying behaviour decide on product, they fill in the gap in the market and

identify needed and the obsolete product.

• consumer behaviour study also helps marketing specialists decide presentation their product to generate

maximum impact on consumers. consumer buying behaviour is the key secret to reaching and engaging your

clients, and converting them to purchase from you.

• Consumer behaviour analysis should identify: Consumer thought procedure about various alternatives

(brands, products, etc.

• Consumers influencer to choose between various options;

• Consumers’ behaviour while shopping;

• A consumer's environment (friends, family, media, etc.) influences their behaviour.

There are three categories of factors that influence consumer behaviour.

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Personal factors:

Interests and opinions can be influenced by demographics (age, gender, culture, etc.). •

Psychological factors:

The response to marketing messages depends on their perceptions and attitudes.

Social factors:

family, friends, education level, social media, income,

Types of consumer behaviour

There are four main types of consumer behaviour:

1. Complex buying behaviour

Complex buying behaviour is type of behaviour is encountered when consumers are buying an expensive,

and infrequently bought product. They are highly involved in the purchase process and consumers’ research

before committing to a high-value investment.

2. Dissonance-reducing buying behaviour

The consumer is highly involved in the purchase process but has difficulties determining the differences

between brands. ‘Dissonance’ can occur when the consumer worries that they will regret their choice.

3. Habitual buying behaviour

Habitual purchases are characterized by the fact that the consumer has very little involvement in the product

or brand category.

4. Behaviour in pursuit of diversity.

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 Consumers purchase new products because they seek diversity, not because they are dissatisfied with

previous products.

Factors Influencing Consumer Behaviour

Many things can influence consumer behaviour, but the most common factors that influence consumer

behaviour are:

1. Marketing campaigns

Marketing campaigns have a huge impact on buying decisions. Effective, regular marketing with the right

marketing message can even convince consumers to change brands or switch to more expensive alternatives.

Marketing campaigns, such as Facebook e-commerce ads, can also be used to remind customers of products

that must be purchased on a regular basis but are not necessarily of interest to customers. A good marketing

message can influence impulse buying.

2. Economic conditions

Economic conditions play a big role, especially in the case of expensive goods (eg houses, automobiles).

Favorable economic conditions are known to make consumers more confident and ready to make purchases

regardless of their financial obligations.

3. Personal preferences

Consumer behaviour is also influenced by personal factors such as likes, dislikes, priorities, morals and

values. In industries like fashion food, personal opinion is especially important. Advertising influences

behavior, but in the end a consumer's choice is largely determined by their preferences.

5. Group influence

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Peer pressure also influences consumer behaviour. What family members, classmates, immediate family

members, neighbours and acquaintances think or do can play an important role in our decisions. Social

psychology influences consumer behaviour. For example, choosing fast food over homecooked food is just

one such situation. Educational level and social factors can influence.

5. Purchasing power

Purchasing power plays an important role in our behavior. Billionaires will consider their budget before

making a buying decision. A product may be great and marketing may be good, but if you don't have enough

money you can't buy it. Segmenting consumers based on purchasing power can help marketers identify the

right consumers and achieve better results.

Customer behaviour patterns

Buying patterns are not synonymous with buying habits. Habits are the result of behaviors and tendencies to

become spontaneous over time, whereas patterns reveal predictable patterns of mental performance

Customer behaviour segmentation

Customer segmentation and customer type identification are very important. Effective segmentation

becomes even more important now as personalization and customer experience are the determining factors

for business success. Only 29% of companies using customer segmentation say they are reasonably

effective, so it's important to provide clarity and find a segmentation method that's right for your business

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 Four main types of behavioural segmentation

1. Benefits sought

There are four reasons why buyers buy toothpaste: whitening, increased tooth sensitivity, taste and price. As

customers explore your product, their behavior provides valuable insight into which benefits, features,

values, use cases, and issues are the most motivating factors influencing their purchasing decisions. When

customers value one or more benefits far more than others, these key benefits are the decisive motivators for

their purchasing decisions.

2. Occasion based

Occasion based behavioural segments refer to both universal and personal occasions.

⦁ Universal reasons apply to most target audiences.

⦁ Recurring Personal Events is an individual customer's buying pattern that repeats continuously over time.

For example, a birthday, anniversary or vacation, monthly shopping, or everyday rituals such as having a

cup of coffee on the way to work every morning.

⦁ Rare individual cases also relate to individual clients, but are more irregular and spontaneous, making

them more difficult to predict.

4. Brand loyalty status

Loyal customers are your most valuable business asset. It has low maintenance costs, usually has the highest

lifetime value, and allows you to become a brand advocate. By analysing behavioural data, customers can be

segmented according to their loyalty, so marketers can understand and meet their needs. Loyal Customers

are customers who deserve special treatment and privileges, such as exclusive rewards programs, to develop

and strengthen customer relationships and encourage continued business in the future.

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INDUSTRY
OVERVIEW

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+

COSMETICS INDUSTRY OVERVIEW

Long heritage of cosmetic and beauty, aesthetic makeup products is being used. Since 1981 the

liberalization along with the crowning of Indian women at international beauty pageants, the cosmetic

industry came into limelight in a bigger way and now a days it appears to be booming economy in India

which would be the largest cosmetic consuming country in coming few decades. The beauty industry in

India is growing at a fast rate due to the young generation, rise in middleclass, urbanization, digitalization,

and an overall shift towards a much better and affluent lifestyle and personal care. While the demand of

beautify substances are growing each day, a large no of international manufacturers gradually extend their

ranges and products in different provinces of India. There has been a change in the cosmetic consumption

and this trend is fuelling growth in the cosmetic sector. The Indian cosmetics industry has experienced

explosive growth over the past few years, with a CAGR of 8.5% between 2007 and 2009. This is due to

increased purchasing power and increased fashion awareness, but the industry-maintained growth

momentum during this period. 200102013. The growth rate of these cosmetics or retail market in India for

cosmetics is about 17% per annum and is expected to reach $50 billion by 2030

With all this “Nykaa” has emerged as the largest omnichannel brand in India. Nykaa is a market leader in

online destination for beauty products in India.

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 Covid19 Impact Analysis

1. Cosmetics products manufacturers are switching their preference to produce hand sanitizers, cleaning
agents, and personal care products, which have been gaining major demand during this pandemic.

2. The outbreak of the COVID-19 pandemic, manufacturers have increased social media advertisement
of using herbal skin care products to reach a large consumer base.

3. Countries around the world-imposed lockdowns, and curfews, which has hugely impacted lifestyles,
health & wellbeing, and affected manufacturing industries.

4. Import and export restrictions on goods and quarantine and lockdown measures imposed by
governments are key challenges exporters are facing during this pandemic.

Key Benefits for Stakeholders

⦁ This report provides a quantitative analysis of the market segments, current trends, estimations, and

dynamics of the cosmetics market analysis from 2020 to 2030 to identify the prevailing market

opportunities.

⦁ The market research is offered along with information related to key drivers, restraints, and cosmetics

market opportunities.

⦁ Porter’s six forces analysis highlights the potency of buyers and suppliers to enable stakeholders make

profit-oriented business decisions and strengthen their supplier–buyer network.

⦁ In depth analysis of the cosmetics market segmentation assists to determine the prevailing market

opportunities.

⦁ Major countries in each region are mapped according to their revenue contribution to the global market

industry.
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⦁ Market player positioning facilitates benchmarking and provides a clear understanding of the present

position of the cosmetics market players.

⦁ The report includes analysis of regional and global Cosmetics market trends, key players, market

segments, applications and growth strategies in the Cosmetics market.

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COMPANY PROFILE

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Nykaa is an Indian ecommerce company, founded by Falguni Nayar in 2012 and headquartered in Mumbai.

Nykaa offers beauty and wellness products along with a blog that provides makeup tips, it has an expert

panel of makeup stylists, and skin, hair, personal care expert to answer questions related to beauty, health,

nutrition and personal care. The online portal has a wide collection of more than 50000 products from than

500 brands. The company currently has 30 luxury brands It sells beauty, wellness and fashion products

across websites, mobile apps and 100 offline stores. In 2020, it became the first Indian unicorn startup

headed by a woman. In 2015, she switched from an online model to an omnichannel model and started

selling fashion products. In October 2020, the company launched Nykaa Man, India's first multi-brand

online store for men's cosmetics. The company expanded into fashion with the launch of Nykaa Design

Studio, which was renamed Nykaa Fashion. Nika continues to provide consulting through various platforms

such as expert portals, Bio Monthly Beauty Book, and Virtual Makeup Studio. Today, Nykaa is not only a

symbol of fashion, affordability and premium brands, but also the largest beauty brand. The brand is

headquartered in Mumbai and has a number of bricks and-mortar stores.

Services

By doing so, these activities include enabling Nykaa to closely monitor information related to after-sale

data. It is also used to store information for future use related to the promotion of the product.

Supporting Activities

Nykaa also has several auxiliary activities in the value chain designed to support the above core activities.

These auxiliary activities include:

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Organizational

Infrastructure

Skills Development

Human Resource Management

These activities are subdivided into the various sectoral activities in which Nykaa operates

The Infrastructure of the Firm

These include quality control, planning and legal services, administration and finance. These activities play

an important role in supporting Nykaa's value chain. Nykaa's planning and financing strategy is defined at

the corporate level and quality management is defined at the business unit level as legal and accounting

practices

Technology Development

The most striking element of Nykaa is its technology. It supports almost all functions of the company.

Technology development at Nykaa includes a variety of activities such as technology selection, process

design, field testing, and component and function development.

HRM

Nykaa Human Resource Management supports the company in a variety of key activities, such as hiring and

selecting employees, evaluating and developing employee skills, personnel planning, training, development

and compensation.

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Customer Segment

Nykaa focuses on customer-focused niche marketing strategies. The company's target market is the middle

class, mostly women. Most of Nykaa's customers are over 1850 years old. Modern women are the target of

companies that require a well-groomed appearance.

Nykaa customers can be divided into four categories:

Active Seekers Customers

This category includes customers from 19-25 who need all their advice on beauty products. These customers

are tech savvy, shop online and read blogs.

Multi-Taskers Customers

This includes clients aged 27-45 years old, low-time and heavy-duty. This category consists of confident

working women who know what she wants.

Beauty Aficionados Customers

Customers of age group 25-45 years who are extremely conscious of beauty and style and spends much time
on browsing sites of new brands or products fall under this category.

Brand Seekers Customers

This category includes customers between the age group of 25-45 years who are more specific to brands and
incredibly stylish. These customers often travel and are exposed to international brands.
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Value Preposition Customers

Nykaa is directly connected with brands, so we can supply quality products at discounted prices for each

brand. Since women prefer to shop online over offline stores, fast delivery is a big advantage of Nica, and it

is convenient as it saves time and money. Nykaa offers a wide range of health and beauty products. The

company's products are also relatively inexpensive compared to other e-commerce giants. Nykaa Beauty

Salon offers a number of options, including an exclusive Grab On Coupon, to attract customers and offer

products at discounted prices. Different seasonal coupons and deals are offered by Nykaa that includes a

range of exciting benefits to customers in order to provoke them to continue purchasing products from the

portal. Nykaa has its own blog through which it displays free of cost beauty tips and also, it has a beauty

channel on YouTube to provide free makeup tutorials to its audience. Nykaa’s key differentiators also

include creating awareness among customers on unique selling proposition (USPs) of online available

products, giving sufficient information to boost the confidence of customers in the company’s selected

products, and provide recommendations on specific products as per the unique needs of customers.

Key Resources

Key resources of Nykaa include the following:

Social Media Presence

One of the key resources of Nykaa is its social media. The social media marketing of the company is
excellent and a great source of displaying advertisements and other useful and informative content related to
their products. Nykaa has a social presence on different social medial channels such as Instagram, Facebook,
Twitter, YouTube, etc. Through social media, Nykaa is able to remain in constant touch with its customers.

Nykaa also has a YouTube channel i.e. Nykaa TV that consists of videos to help customers in understanding
different cosmetics they can use. These videos also help those customers who are not aware of the type of

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products they should use and of which brand.  These videos are posted by Nykaa on a regular basis so that
subscribers receive useful information.

Website and Application Software

The Nykaa website, or Nykaa.com, is a great resource for companies to sell their products online. Similarly,

the Nykaa app allows customers to choose from over 3 Lac beauty products and over 1,000 brands online.

The Nykaa website and app allows customers to easily browse a wide range of products in different

categories including cosmetics, hair care, skin care, health and wellness, men's products, consumer

electronics, personal care, pregnant women and children. The Nykaa online shopping website and app

allows customers to purchase beauty products online at attractive discounts and best prices.The Nykaa

website, or Nykaa.com, is a great resource for companies to sell their products online. Similarly, the Nykaa

app allows customers to choose from over 3 Lac beauty products and over 1,000 brands online. The Nykaa

website and app allows customers to easily browse a wide range of products in different categories including

cosmetics, hair care, skin care, health and wellness, men's products, consumer electronics, personal care,

pregnant women and children. The Nykaa online shopping website and app allows customers to purchase

beauty products online at attractive discounts and best prices.The Nykaa website, or Nykaa.com, is a great

resource for companies to sell their products online. Similarly, the Nykaa app allows customers to choose

from over 3 Lac beauty products and over 1,000 brands online. The Nykaa website and app allows

customers to easily browse a wide range of products in different categories including cosmetics, hair care,

skin care, health and wellness, men's products, consumer electronics, personal care, pregnant women and

children. The Nykaa online shopping website and app allows customers to purchase beauty products online

at attractive discounts and best prices.

Virtual Stores for Assistance

Nykaa also has its offline virtual stores where customers can visit for beauty advice, virtual makeover tool,

free expert advice, assistance on the phone, and articles on beauty trends, etc.

Workforce at Nykaa

The team of Nykaa is highly energetic, motivated, and includes young people.

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Nykaa Technology

Nykaa uses a variety of technology products and services as its primary resource, including Google

Analytics, HTML5, Query, and more. The brand uses 48 technologies for its website, including Google

Analytics, Viewport Meta, and iPhone or mobile device compatibility.

Customer Relationships Management

Nykaa provides good customer service by following activities:

Content Creation

Nykaa has a content strategy focused on increasing awareness and educating customers for great buying

experiences using cutting-edge technology. Nykaa informs customers about products available online

through content and recommends products based on their needs. Appropriate information about these

products is provided so that customers can confidently choose the products they want. Nykaa has

customized content in the form of IT listings, beauty book articles, in-store product reviews, and editor-

picked widgets..

Tools

Nykaa uses different tools to facilitate customers. Tools such as the monthly buying guides and different

seasonal or festival stores for sale guidance like monsoon store, eyeliner and kajal store, summer store,

Diwali store, skincare by age are specifically meant for the benefit and convenience of customers.

Skin, Hair and wellness tool of Nykaa i.e. Routine Finder helps customers in making their perfect beauty

regimen and for this, products are recommended that best suit their skin, hair, and wellness needs. This

facilitates customers by educating them in products that work together, their benefits, and their appropriate

order to be used for better results.

One more tool is Beauty Book which is an in-house next-gen digital magazine of Nykaa that focuses on

expert advice, tutorials, and trends in different formats, and includes articles, FB lives, web series, etc.

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Customer Support Automation

In order to provide better customer service, Nykaa has automated parts of its customer support. This has

helped Nykaa in providing seamless conflict resolution to customers. Through automation, Nykaa handles

repetitive requests of customers related to returns, refunds, cancellations, shipping inquiries, replacement

concerns, payment hassles, etc. on its app through bot-qualified questions. By automating customer support,

Nykaa is able to handle more customer queries in a detailed way that results in more after-sale customer

satisfaction and improved customer loyalty.

Nykaa Support

Nykaa provides customer support related to shopping, order, payments, and others by email and customer
care contact number. Also, it has a grievance cell to handle the grievances of customers.

Key Partners

Nykaa's key partners include beauty partners, i.e. luxury beauty brands, as the company sells these brands

directly to customers. These beauty partners include luxury brands such as M.A.C, Maybelline New York,

Biotique, L'Oreal Paris, The Face Shop, Kama Ayurveda and more

Channels

Key channels of Nykaa includes its website and online app where customers get useful information about
products. Different tools are

Try it On: 

This is a beauty tool through which customers can try different shades in the makeup range of Nykaa. This
tool also includes various options for different skin types.

Personalized Widget: 

This is a personal tool that Nykaa has provided for every shopper that allows them to save videos of
products that are recently viewed.

Videos of Product Pages Tool: 

This tool helps customers in understanding products in a better way.

Get the Look Widget: 

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Through this tool, shoppers can purchase products according to a look they like.

Routine Finder: 

This tool suggests personalized products according to the daily routine of customers.

Sales Channel

Nykaa has categorized its sales channel into four categories i.e. Kiosks, Web. Nykaa on Trend, and Nykaa
Luxe.

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 COST STRUCTURE

Nykaa major expenses or costing of Nykaa includes the following:

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BUSINESS MODEL OF
NYKAA

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Nykaa has an inventory-based business model where products are stored in one location in inventory and

fulfillment is performed based on the availability of products in stock. Using this stock-based business

model, Nykaa purchases goods directly from manufacturers. Nykaa has warehouses in various cities such as

Mumbai, Bangalore and New Delhi where these products are stored. These products are additionally sold

through the Nykaa website or in-store formats such as Nykaa Kiosks, Nykaa Luxe and Nykaa On Trend.

The business model helps Nykaa receive all bulk orders at the same time, rather than one item at a time. As

part of its business model, Nykaa follows the following strategy to provide a seamless shopping experience

for its customers

Omnichannel Experience

Nykaa has provided users with an omnichannel experience by allowing them to try on some brands that do

not have retail outlets in India (eg Bobby Brown). Customers are also given the opportunity to shop using

the gadget. Customers can also visit Nykaa stores to try the product if they have any difficulties.

Network Community

There is an online community developed by Nykaa where users can connect, share ideas and tips, learn

tutorials, and get inspiration from others. This strategy has helped the company retain its customer base and

attract new customers. Nykaa's offline presence comes in two formats: Nykaa Luxe and Nykaa OnTrend

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Primary Activities

Primary activities include below five categories:

Inbound Logistics

This logistics involves separating, receiving and storing products. This includes material handling,

warehousing and architecture to maintain Nykaa's customer database. The company has outsourced most of

these operations

Operations

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During operation, raw materials are converted into final products. Nykaa Café has quite a variety of
activities. This includes customer data collected from the Nykaa database to develop new company
strategies based on consumer buying behaviour

Outbound Logistics

This is because Nykaa's end products are distributed to customers and trading partners. Retailers,

wholesalers and distribution channels are included in nykaa's outbound logistics

Sales and Marketing

Nykaa's main sales and marketing focus is to create sales channels through which the company's potential

customers can purchase its products. This category includes various activities such as pricing strategies,

promotions, advertising campaigns, channel selection, and more.

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MARKETING STRATEGIES
OF NYKAA

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 MARKETING STRATEGIES OF NYKAA

Marketing is the most important departments in any company, and the job is to figure out what consumer
preference and manufacture or change products to meet needs. With effective and efficient marketing
strategy, Nykaa is thriving in the beauty sector. Digital marketing is the core Nykaa's marketing approach.
Nykaa uses a digital marketing strategy to pitch its customers. The brand targets customers from all tiers of
the city..

Social Media Marketing

Social media channels play the most important role in the company's marketing strategy. Nykaa has a
separate platform for advertising products. To market nykaa as a well-off brand, the company uses various
social media platforms. Nykaa uses influencer marketing to reach out to its consumers on social media
platforms. The brand also shares material generated by influencers who try out Nykaa's products on its
social media accounts.

YouTube Marketing

Nykaa has a comprehensive YouTube marketing strategy. Nykaa's YouTube channel is focused on

providing its target audience with consumable content such as beauty, self-care tips, makeup tips, and more.

Each of his accounts has a specific purpose. Nykaa's YouTube channel has a lot of content including beauty

tutorials, bridal makeup techniques, celebrity beauty tips, and more. Companies also use YouTube ads to

reach their target audience. Nykaa's YouTube marketing is full of high-quality content that grabs your

visitors' attention.

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Content Marketing

Content marketing is one of Nykaa's most effective ways to attract target audiences. Nykaa offers a wide

range of consumables to convert audiences into customers. Nykaa publishes articles on beauty, makeup and

personal care on her website "Nykaa Beauty Book, Your Beauty is Our Passion"

Event Marketing

Event marketing is a great strategy to target the right audience at the right time. For the past three years,

Nykaa has sponsored the prestigious Femina Miss India competition. Nykaa's brand value has grown by

sponsoring one of India's largest beauty events.

Stepping in Physical Stores

Originally started as an e-commerce company, it has gradually expanded to individuals and individuals,

providing customers with an omnichannel experience. Because most customers cannot try on products

before purchasing them online, Nykaa has opened brick-and-mortar stores across the country. Nykaa

maintains its offline presence with 100 physical stores across India

From makeup to wardrobe`

It is widely regarded as the country's next major border. Nykaa Fashion is an online store that sells clothes

from hundreds of brands. The launch of Nykaa Fashion proves that the brand is unstoppable and will

continue to grow.

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Brand endorsements and collaborations:

After building a public image and strengthening the brand, Nykaa embarked on brand support and

collaboration to promote its business. Janhvi Kapoor has been appointed Brand Ambassador for Nykaa.

Masaba worked with Nykaa to create a special line called "Nykaa by Masaba" featuring the packaging

design and printing of Masaba's Nykaa products.

Seasonal discounts and offers:

Nykaa users enjoy various offers and discounts. The Pink Friday Sale is Nykaa's biggest event, offering

huge discounts on various brands to attract more customers and increase the company's sales and user base.

We also offer various discounts on various products through our Black Friday sale. Hot Pink Various items

50% off sale. Customers also participate in Spin Wheel competitions for a chance to win prizes. To increase

consumer satisfaction with purchases, the company also provides free gifts for special purchases. This is a

fantastic strategy for companies to increase customer retention. 5 million brand ambassadors: The brand has

amassed such a large consumer base because it creates word of mouth. Satisfied customers will sell the

product with positive product reviews. Providing customers with something new is an important component

of Nykaa's marketing approach. Nykaa was a new concept in Indian businesses at the moment, and it now

has a strong fan base

Platform Marketing

Nykaa promotes its brand because it is specifically designed to engage audiences on both its website and

mobile app. Brand positioning through the Nykaa website on any platform is very important. This indicates

that updated and new content is continuously available for the company's target audience. Nykaa uses blogs,

targeted ads and guides to increase online sales.

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SEO (Search Engine Optimization)

To improve organic research and establish the presence of its brand, Nykaa is using SEO services. By

adopting the best SEO services, the company has optimized its content using potential keywords that result

in keeping it high in search results.

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COMPETITORS OF
NYKAA

38
 COMPETITORS OF NYKAA

The top 5 competitors of Nykaa are as follows:

1) SUGAR

2) COLORBAR

3) LOREAL PARIS

4) KAY BEAUTY

5) MAYBELLINE

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40
 SUGAR

Founded by Vinita Singh, Sugar Cosmetics is one of India's fastest-growing premium cosmetics companies

with a large following among millennials. Sugar cosmetics are chosen by brave independent women who

reject stereotypes. Unique low poly packaging and chart topping products. The brand's best-selling products

in the Lips, Eyes, Face, Nails and Skin categories are shipped worldwide from state-owned factories in

Germany, Italy, India, USA and Korea

MAYBELLINE

Maybelline New York is one of the world's leading beauty brands, sold in more than 150 countries. Offering

more than 300 products, Maybelline New York combines cutting-edge technology and expertise to create

affordable cosmetics with a luxurious urban feel and lively style. Maybelline New York sponsored

Mercedes-Benz Fashion Week in New York. Maybelline got a boost when Linda Carter was hired as her

fashion and beauty coordinator. She has appeared in several TV and print commercials. Josie Maran,

Miranda Kerr, Sarah Michelle Gellar, Sandha, Sheetal Mallar, Julia Stegner, Jessica White and Kristin Davis

endorsed Maybelline products. Maybelline's current faces are Adriana Lima, Christy Turlington, Charlotte

Kemp Muhl, Josephine Skriver, Gigi Hadid, and ITZY, and in 1981 the company adopted Maybelline's adve

rtising slogan, Maybelline Ooh La La, until 1991 when the slogan was changed to has been used. maybe.

She was born with it. Maybe it's Maybelline. The slogan has been called one of the most recognizable

slogans of the last 150 years.

KAY BEAUTY

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Bollywood actor Katrina Kaif launched beauty brand Kay Beauty, in partnership with India’s largest beauty

retailer, Nykaa, in an unprecedented pan -India launch across 50 Nykaa stores and on the Nykaa website and

app. Kay Beauty created by Katrina with a vision to deliver high-performance, long-lasting, ultra-glam

makeup products that also care for the skin. The launch collection will feature lip, eye and brow products to

create 3 beauty trends - Perfecting The 3D Lip, The Art of Sultry Eyes, and Natural Ombré Brows. The idea

of #MakeupThatKares, a makeup collection where each product has specific ‘care’ ingredients to nourish

the skin, while at the same time delivering a long -wear, high-performance finish. This led her on a journey

to discover ingredients that could be fused with makeup to repair and enrich the skin. After months of

testing and refining every aspect of every product, from the ease of application to colour payoff, texture and

shade range, Katrina felt that this collection was a part of her and extended her name to it, calling it ‘Kay’.

COLORBAR

Colorbar is an Indian cosmetic brand. The company's headquarters is located in New Delhi, India. It is one

of the most famous cosmetic brands in India and now all over the world. Colorbar provides the world's best

innovative products to provide consumers with the best service and experience. Products are manufactured

and packaged in France, Germany, Italy, Korea and the United States. Colorbar is an Indian cosmetic brand.

The company's headquarters is located in New Delhi, India. It is one of the most famous cosmetic brands in

India and now all over the world. Colorbar provides the world's best innovative products to provide

consumers with the best service and experience. Products are manufactured and packaged in France,

Germany, Italy, Korea and the United States

LOREAL PARIS

42
L'Oreal S.A. A French personal care company with headquarters in Clichy in Haute-Seine and a registered

office in Paris. It is the world's largest cosmetics company producing hair dye, skin care, sunscreen, makeup,

perfume and hair care products

43
SWOT ANALYSIS OF
NYKAA

44
 SWOT ANALYSIS OF NYKAA

STRENGTHS OF NYKAA

Nykaa has rock pillar strengths that made it one of the largest e-commerce companies in the beauty sector of
India.

Innovation:

 Nykaa constantly adds innovations to product range and offerings to capture the attention of customers and
meet the dynamic business environment by shifting from online-only to omnichannel.

Strong Social Media Presence:

 Nykaa has been able to attract many social media users as potential customers with rigourous online
campaigns, contests such as Nykaa Beauty Femina Awards, brand endorsement, magazines, and web series
etc

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Variety of Products:

 Nykaa has very well managed in showcasing a wide range of products in both online and offline stores to
prevent customers from migrating away from the brand due to lack of stock.

Geographical Presence:

 Since geographic presence in different regions is considered to be one of the company’s greatest strengths.
It helps to determine the reach of the company in the target market and ensures easy accessibility.

Affordability: 

As the ability to pay and willingness to buy is a factor determining demand. Nykaa also has considered this
factor and has priced its product keeping in mind the needs of different classes.

Less Charging Suppliers: 

Access to suppliers that offer raw materials at a lower cost can improve the overall efficiency of the
business.

Property Rights: 

A company may own various intellectual property rights that can make the product offering unique and
exclusive, making it difficult for competitors to imitate.

WEAKNESSES OF NYKAA

Poor Waste Management:

 Nykaa has been criticized by environmentalists for its poor waste management and inability to integrate
sustainability into its business operations.

Research and Development:

 Low spending on research and development activities may weaken the company’s performance due to a
lack of local/international market knowledge.

Delivery Charges:

 It offers free delivery for orders above Rs. 700, which excludes some of the prospective buyers.

Customer Care Support:

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 Nykaa is not able meet and resolve customer complaints effectively, and hence reducing consumers
credibility

Decision-making Process: Decision making at Nykaa takes too much time, leading to costly delays in
bringing new products to market.

OPPORTUNITIES FOR NYKAA

The environment within which our organization operates offers opportunities. An organization can identify
such opportunities and enjoy benefits arising from them by planning and executing required strategies.

Wide Reach to prospective Consumers: 

The exponential growth of the population and especially the existing or potential customer segments is a
great growth opportunity for the company.

E-commerce and Networking: 

The emergence of e-commerce and social media networking as a trend can be a great opportunity for Nykaa.
It can ensure a strong online presence on various social networks.

Government Subsidies:

 Government provided subsidies and other measures that make the business environment friendlier are a
positive external environmental factor for Nykaa.

Consumer lifestyle upliftment:

 Improving customers’ lifestyles and standards means more consumption of consumer goods and services
and more opportunities to encourage purchases.

Business Model:

 Nykaa’s business model is climbing a new ladder to increase its international reach and boost profits.

Dynamic Technologies: 

The development of new technologies to support the production and delivery process of products can be
used to integrate innovation into business operations. Advanced Technology integration can reduce costs,
improve efficiency, and lead to the rapid adoption of innovative products.

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Updated with trends:

 The changing needs, tastes, and preferences of customers can be an opportunity if the company has good
market knowledge.

THREATS TO NYKAA

Every coin has two sides, so does Nykaa have.

E-commerce Rules and Regulations: 

The altering legal framework and the introduction of new, stricter regulations pose a major threat to Nykaa.
Inability to comply with the changing regulations increases the risk of costly litigation.

Increased Competition:

 The increasing number of direct competitors such as purplle, indirect competitors such as small businesses
selling organic and cruelty-free products affects the company’s ability to maintain and expand its customer
base.

Excess use of chemicals: 

The growing trends of organic and cruelty-free products poses a great danger if the products offered are not
environmentally friendly. Nykaa should now focus more on expanding its reach to natural and organic
products.

Instable economic conditions:

 During the pandemic, the purchasing power declined to an extent and the business got affected in the first
phase of lockdown as the economic conditions of people deteriorated.

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 CONCLUSION

Nykaa is the largest platforms for meeting beauty needs of customers and has been successful in doing so. 

Nykaa has strengthened itself in providing products that are affordable and has been able to do well through
its omnichannel mode but at the same time, it somewhere lacks in doing research and development which
will help its competitors to take Nykaa’s customers away from it.

Nykaa has so many opportunities to become more successful in its venture. But there are many areas where
Nykaa still has to work such as reducing the product cost by reducing the internal expenses so that it can be
affordable for the majority of people.

Nykaa should increase the frequency of marketing digitally with the campaigns globally to create a better
digital presence and to cut off the competition by influencing the minds of consumers by frequent
advertisement. 

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PROBLEMS AND
LIMITATIONS AT
NYKAA

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1. Nykaa spends on R&D above industry average

2. Most of the companies rent rather than buy, so they cost more.

3. The company's ability to meet its short-term financial obligations is below the industry average.

4. Nika has not done any market research on the markets it has served in the past two years.

5. Due to low quality control budget compared to competitors, the order may change sooner or later

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OBJECTIVES OF THE
STUDY

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1) To analyze consumer buying behavior

2) To evaluate attitude and opinion of consumer towards nykaa

3) To understand Nykaa’s status in current market

4) To understand marketers, reach to consumers in dense and diversified geographics

5) To comprehend the company's marketing strategy.

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LITERATURE
REVIEW

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 LITERATURE REVIEW

Agarwal H. (2020) studied the purchasing behavior of NYKAA consumers in Bangalore. The primary goal

of this study was to identify factors that influence consumer purchasing decisions for the NYKAA. The

second goal of the study was to study the process of purchasing beauty products. The data collection method

used a convenient sampling method. Statistical methods used simple percentage and rank methods. As a

result of the analysis, it was found that most of the cosmetics market is occupied by women. Research shows

that quality is the most important factor influencing consumers' purchasing decisions. Social media

marketing and reference groups are other important factors influencing consumers' buying decisions.

Alvin Louis, Crystal Desouza (2021) investigated consumer purchasing intentions for the NYKAA. The

main goal of this study was to identify determinants that influence consumer intention to purchase NYKAA

cosmetics. Data were collected using an online questionnaire. Data were collected from 500 samples.

Correlation was used for data analysis. Correlation analysis revealed a strong positive correlation between

NYKAA cosmetic purchase intentions and NYKAA consumer reviews. The findings of this study are useful

for online retailers, marketers and practitioners to recognize and better understand emerging trends in the

natural cosmetics industry.

Purnima H Agarwal., Rithvik D. (2018) studied consumer awareness, attitude and preference towards

NYKAA cosmetic products with special reference to Mumbai city. The aim of study was to consumer

awareness towards NYKAA cosmetics, to identify the factors influencing the consumers to use Nykaa

products. Descriptive research design was used with non-probability convenience sampling with 200

respondents of Mumbai. Karl Pearson’s co-efficient of correlation, average ranking analysis and chi-square

analysis were used for data analysis. They found that family income per month and spending for NYKAA

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products have positive correlation. Quality was ranked as most important factor that influences consumers to

purchase cosmetics. They concluded the research with a note that consumers believe that Nykaa products are

not a luxury now and can be used by wide consumers

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HYPOTHESIS

57
 HYPOTHESIS

1. There is no easy substitute for nykaa as an e commerce brand available market

2. Nykaa customers are loyal consumer’s buying behaviour get affected by promotions

3. Nykaa is expensive as per the target audience

4. Nykaa is not reachable in every location

1.

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 RESEARCH
METHODOLOGY

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 RESEARCH METHODOLOGY

Methodology is an essential aspect of any research of investigation. It enables the investigation to look at the
problem in a systematic, meaningful and in an orderly way. The present study is descriptive and analytical
one. This study is based on both primary and secondary data

METHOD OF DATA COLLECTION

PRIMARY DATA

The primary data refer to fresh data from the sample universe by the researcher themselves. Primary data are
those which are collected fresh and for the first data. The data is collected through questionnaire method. It
has been collected from the consumers.

SECONDARY DATA

Secondary data refers to the information or fact has been collected already through newspaper, related
journal and through internet.

DATA SOURCE

Questionnaire is the data source from where the data is collected to conduct research on the particular topic.

RESEARCH DESIGN

The research design refers to preplanning of what a researcher does in his study the design adopted in the
study comes under descriptive and analytical research. Such the data collected from the annual report of the
company is analysed under various, statistical tools.

In this report DESCRIPTIVE RESEARCH METHOD was used i.e, interpretation were drawn on existing
company situation and no analysis were drawn and then interpretated

SAMPLE DESIGN

Convenience Sampling is a type of non-probability sampling that involves the sample being drawn from
that part of the population that is close to hand. This type of sampling is most useful for pilot testing

UNIVERSE OF STUDY

Lucknow

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Varanasi

Barabanki

SAMPLE SIZE

100 respondents appeared in this survey

SAMPLE UNIT

Women cosmetic and wellness users

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LIMITATIONS OF THE
STUDY

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Primarily NYKAA was introduced targeting female audience for cosmetics and wellness , but later in 2020
it introduced NYKAA FASHION and NYKAA MAN.

1. This study is limited to researching to nykaa as cosmetic and wellness brand.

2. NYKAA has 200 stores PAN INDIA, but this study researches NYKAA as an ecommerce

platform.

3. This study is limited to taking female as research sample.

4. Sample size in 100 due to the constraints of time and resources.

5. Age limit is concentrated due to limited resource

6. The method which was adopted for collecting the data i.e., convenient sampling method in this

study has its own limitations.

7. The customer response may be biased and it has only limited applications.

8. The study pertains only to the selected respondents of few cities. Therefore, the findings out of

the study cannot be generalized at all places

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DATA ANALYSIS

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Ratings are given out of 5
1 absolute not
5 is very muck likely to recommend

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 RESPONDENTS REVIEWS ON NYKAA

Once I have ordered the product from nykaa it was okay okay but the product which came was very small as
per it was shown but it was, I will recommend that other also buy 😊😊

Nykka is good as it's a one platform wherein you get all the brand's including the luxury brand. And the next thing i like
about it is that from Makeup to skincare to hygiene everything is available over there .

t has unnecessary delivery charges as compared to other shopping apps specially like Amazon and the quality bof the
products provided can be futher improved.

It's expensive but some products are worth the price.

Nyka is something i was searching for so long,its something with best pricing and quality products

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INTERPRETATION

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1. 63.2% Respondents prefer cosmetics and wellness products based on their SKIN TYPE. While 50%

do find products of their skin type

2. 44.7% Respondents spend less than 1000 Rs averagely on every nykaa purchase

3. 44.7% Respondents SEASONALY shop from nykaa

4. 55.3% Respondents purchased nykaa products in the year 2018-2021

5. 36.8 % Respondents have less than 5 nykaa products

6. 43.2% Respondents buy nykaa products because of authenticity of products

7. 86.8% Respondents get delivered nykaa products easily

8. 81.6% Respondents find nykaa app easy navigation

9. 44.7% Respondents gave 4 /5 ratings to delivery service

10. 68.4% Respondents find packaging important

11. 73.7% Respondents find nykaa moderately priced

12. 50% Respondents get influenced by SOCIAL MEDIA MARKETING of nykaa

13. 50% Respondents find easy substitute to nykaa

14. 47.4% Respondents can’t say whether they are loyal customers to nykaa or not

15. 39.5% Respondents gave 5/5 ratings to recommend nykaa to others.

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CONCLUSION

75
 CONCLUSION

NYKAA has a positive brand image in cosmetics and wellness market. Consumers prefer buying cosmetics

and wellness products as per their skin type, and sometimes find products suitable to their skin type.

A large portion of consumers spends less than 1000 on each nykaa purchase and find nykaa moderately

priced.

Promotions sometimes influence the buying behaviour of consumers and for nykaa consumers get

influenced by its social media marketing

Between the year 2015-2018 most consumers made their first nykaa purchase and are seasonal buyers of

nykaa products.

Most consumers own less than 5 nykaa products

Authenticity of nykaa products make consumers purchase from nykaa

Nykaa is easily navigable while products are easily deliverable at their location and satisfied with the

delivery service.

Due to easy substitute available in market, most consumers can’t say whether they are loyal consumers of

nykaa or not.
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RECOMMENDATIONS
AND SUGGESTIONS

78
 RECOMMENDATIONS AND SUGGESTIONS

1. Nykaa should continue to provide authenticity of products, as it is the USP of Nykaa why consumers

prefer this over other brands.

2. Nykaa should continue and make its marketing, operations, product development more effective so

that consumer base doesn’t shifts to its substitute.

3. Nykaa should continue with its effective marketing strategy techniques to spread brand awareness

amongst target market

4. Nykaa can cut short its pricing and tap the target market with lower income.

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BIBLIOGRAPHY

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