“A CRITICAL STUDY OF SALES PROMOTION IN NYKAA AND

LAKME” (with special reference in Kanpur)

Research Project submitted to the

Department of Commerce

D.A.V. College, C.S.J.M University, Kanpur

For the partial fulfilment for the award of the degree of

Master of Commerce

Submitted By
ISHITA MEHRA
(ROLL NO. :22093000937)

Under The Supervision Of

PROF. Y.C. VISHNOI

Department of Commerce,
D. A.V. Postgraduate College, Kanpur
C.S.J.M University, Kanpur, U.P.

ACADEMIC YEAR-2024

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 CERTIFICATE

This is to certify that the work contained in the research project entitled “A CRITICAL STUDY
OF SALES PROMOTION IN NYKAA AND LAKME” submitted by ISHITA MEHRA of M.
Com 4th SEM (University Roll No: 22093000937) for the award of the degree of Master of
Commerce to the Department of Commerce, D.A-V. College, C.S.J.M. University, Kanpur, is a
record of bonafide research work carried out by her under my direct supervision and guidance.
I considered that the research project has reached the standards and fulfilling the requirements of
the rules and regulations relating to the nature of the degree. The contents embodied in the
research project have not been submitted for the award of any other degree or diploma in this or
any other university.

Date:
Place: Kanpur
Signature of Supervisor

Department of Commerce

D.A.V. College

Kanpur

STUDENT'S DECLARATION

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 I, ISHITA MEHRA hereby declare that the project entitled “A CRITICAL STUDY OF
SALES IN NYKAA AND LAKME ” is the original work done by me and submitted to the
Department of Commerce, D.A. V College, Kanpur, (C.S.J.M. UNIVERSITY, Kanpur, U.P.)
in partial fulfilment of requirements for the award of degree of Master of Commerce under the
guidance of Prof. Y.C. VISHNOI

Place: Kanpur
Date: ………………

Signature of the Student

Name of Student
Roll No ……………

ACKNOWLEDGEMENT
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I would like to offer my heartfelt appreciation to Prof. YOGESH I CHANDRA VISHNOI, my
research supervisor, for his essential guidance, support, and encouragement during the study. His
experience, critical input, and willingness, to spend time and efforts have all helped in shaping this
study.

I am grateful to DAYANAND ANGLO-VEDIC COLLEGE, Kanpur for providing the resources and
facilities required to carry out this project.

Furthermore, I want to thank the Department of Commerce for their assistance with data collecting,
analysis, and any other contributions that improved the quality of this research.

My deepest gratitude also extends to my family and friends for their unfailing support and
understanding during this undertaking. Finally, I would want to thank all of the participants who so
kindly gave of their time and wisdom. This research would not have been possible without the
combined efforts and support of everyone named above.

Thank you to everyone who has contributed, no matter how big or small, to the success of this
research and for being a part of the journey.

ISHITA MEHRA

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 “ABSTRACT"

This study undertakes a critical examination of sales promotion strategies employed by Nykaa and
Lakme, two prominent players in the Indian cosmetics industry. The research aims to investigate
the impact of sales promotion on the operational efficiency and financial performance of both
companies. Through a comparative analysis of their sales promotion strategies, this study seeks to
identify the most effective tactics and their implications for the companies' competitive
positioning.
The study employs a mixed-methods approach, combining both qualitative and quantitative data
collection and analysis techniques. The data is collected from various sources, including company
reports, industry publications, and market research. The analysis includes a detailed examination
of the sales promotion strategies employed by Nykaa and Lakme, including their use of discounts,
free samples, loyalty programs, and social media campaigns.
Findings reveal significant differences in the sales promotion strategies adopted by Nykaa and
Lakme, reflecting their distinct positioning, target audience, and market objectives. While Nykaa
emphasizes online promotions and digital engagement to target a diverse customer base, Lakme
focuses on offline channels and experiential marketing to create immersive brand experiences. The
study also highlights the role of social media and influencer marketing in amplifying the impact
of sales promotion campaigns for both brands.
The study concludes by highlighting the importance of sales promotion in the beauty and cosmetics
industry and the need for companies to continually adapt and innovate their strategies to stay
competitive. The study provide valuable insights for Nykaa and Lakme, as well as for other
companies operating in the industry, on how to effectively utilize sales promotion to enhance brand
performance and improve customer engagement

CHAPTER-1

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 INTRODUCTION

OVERVIEW OF SALES PROMOTION IN THE BEAUTY & COSMETIC INDUSTRY

The beauty and cosmetic industry heavily rely on sales promotion strategies to attract customers,
increase brand visibility, and drive sales. Sales promotion in this industry involves a variety of
tactics aimed at influencing consumer behaviour and boosting product sales. Some common
sales promotion techniques used in the beauty and cosmetic industry include:
1.Discounts and Offers: Offering discounts, buy-one-get-one-free deals, or limited-time offers on
beauty products to incentivize purchases and attract price-conscious consumers.
2.Gift with Purchase (GWP): Providing free samples, gifts, or beauty kits with the purchase of
specific products to encourage trial and repeat purchases.
3.Limited-time Offers: Creating a sense of urgency through limited-time offers, such as flash
sales or exclusive deals, can drive sales by encouraging customers to make a purchase before
the promotion ends.
4.Loyalty Programs: Implementing loyalty programs that reward customers for repeat purchases,
referrals, or engagement with the brand, fostering customer loyalty and retention.
5.In-Store Promotions: Conducting in-store events, demonstrations, or makeovers to engage
customers, showcase products, and drive foot traffic to physical retail locations.
6.Online Promotions: Utilizing digital marketing channels, social media platforms, and e-
commerce websites to promote products, run online-exclusive offers, and engage with customers
through targeted campaigns.
7.Product Bundling: Offering bundled packages where customers can purchase multiple products
at a discounted price can increase the average transaction value and encourage customers to try
complementary products
8.Collaborations and Partnerships: Collaborating with influencers, celebrities, or other brands to
create limited-edition products, exclusive collections, or co-branded promotions that generate
buzz and attract new customers.
9.Contests and Giveaways: Organizing contests, sweepstakes, or social media giveaways to
create excitement, increase brand awareness, and encourage user-generated content.
Sales promotion in the beauty and cosmetic industry is dynamic and constantly evolving to adapt
to changing consumer preferences, market trends, and competitive pressures. By effectively

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leveraging these sales promotion strategies, beauty and cosmetic brands can enhance their
visibility, engage with customers, drive sales, and maintain a competitive edge in the market.

1.1 STATEMENT OF PROBLEM

The beauty and cosmetics industry is marked by fierce competition, with companies continually
seeking innovative strategies to attract and retain customers. Sales promotion plays a pivotal role
in this landscape, serving as a key tool to influence consumer behaviour and drive sales. Nykaa
and Lakme are two prominent players in the Indian beauty market, each employing distinct sales
promotion tactics to gain a competitive edge.
This study aims to conduct a critical analysis of the sales promotion strategies employed by
Nykaa and Lakme, with a focus on understanding their effectiveness, impact on consumer
behaviour, and overall contribution to brand success. By comparing and contrasting the
approaches taken by these two companies, this research seeks to identify key insights and best
practices that can inform marketing strategies within the beauty and cosmetics industry.
Key research questions include:
1.What are the primary sales promotion tactics utilized by Nykaa and Lakme?
2.How do Nykaa and Lakme tailor their sales promotion strategies to target different consumer
segments?
3.What is the impact of sales promotions on consumer purchasing behaviour and brand loyalty
for Nykaa and Lakme?
4.How do Nykaa and Lakme measure the effectiveness of their sales promotion campaigns?
5.What are the strengths and weaknesses of the sales promotion strategies employed by Nykaa
and Lakme, and how do they compare with each other?
By addressing these questions, this study aims to provide valuable insights into the role of sales
promotion in the beauty industry, offering practical recommendations for marketers to enhance
their promotional efforts and drive sustainable business growth.

1.2 OBJECTIVE OF THE STUDY

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1.To analyse the sales promotion tactics employed by Nykaa and Lakme in the beauty and
cosmetics industry.
2.To evaluate the impact of sales promotions on consumer purchasing behavior and brand loyalty
for Nykaa and Lakme.
3.To investigate the methods used by Nykaa and Lakme to measure the effectiveness of their
sales promotion campaigns.
4.To identify the strengths and weaknesses of the sales promotion strategies of Nykaa and Lakme
and compare them with each other.
5.To provide actionable recommendations for marketers in the beauty and cosmetics industry
based on the findings of the comparative analysis.

SCOPE OF THE STUDY

This study will focus on sales promotion strategies implemented by Nykaa and Lakme in the
Indian market.
The research will primarily consider promotional activities such as discounts, coupons, gift with
purchase (GWP), limited-time offers, contests, and loyalty programs.
The analysis will include data from various sources, including company reports, marketing
materials, consumer surveys, and academic literature.
The study will assess the impact of sales promotions on consumer behavior and brand
performance metrics such as sales revenue, market share, and customer satisfaction.
The comparative analysis will highlight similarities and differences in the sales promotion
approaches of Nykaa and Lakme, considering factors such as target audience, promotional
channels, and campaign effectiveness.
The research will offer insights and recommendations applicable to marketers and practitioners
in the beauty and cosmetics industry to enhance their sales promotion strategies and achieve
competitive advantage.

CHAPTER-2
LITERATURE REVIEW

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Literature survey highlighting ten key studies and articles on sales promotion within the realm of
digital marketing:

"The Impact of Online Sales Promotions on Buyer Behavior: An Experimental Study" by Rajeev
Batra and David A. Aaker (2016) - This study examines the effectiveness of various online sales
promotion techniques and their influence on consumer behavior.
"Digital Marketing: A Framework, Review and Research Agenda" by Irene Ng (2018) - Ng
provides a comprehensive framework for understanding digital marketing strategies, including the
role of sales promotion in digital contexts.
"The Role of Sales Promotion in Digital Marketing: A Conceptual Framework and Research
Propositions" by Yew Kuok Wai, Hooi Yu Koh, and Aneel Salman (2020) - This article proposes
a conceptual framework for integrating sales promotion techniques into digital marketing
strategies, offering valuable research propositions for further investigation.
"The Impact of Social Media Promotions on Consumer Buying Behavior: A Mediating Role of
Brand Awareness" by Umar Saeed and Shahbaz Ahmed (2017) - Saeed and Ahmed explore how
social media promotions influence consumer buying behavior, with a focus on the mediating role
of brand awareness.
"Effects of Online Promotions on Consumer Behavior: A Literature Review" by Chun-Chiao
Huang and Chih-Chien Wang (2019) - This literature review synthesizes existing research on the
effects of online promotions, shedding light on their impact on consumer decision-making
processes and purchase intentions.
"Sales Promotion and Brand Equity: Evidence from Social Media Marketing" by Tao Wang, Xi
Chen, and Xin Yu (2018) - Wang et al. investigate the relationship between sales promotion
activities on social media platforms and brand equity, offering insights into the strategic
implications for marketers.
"The Impact of Sales Promotion on Consumer Behavior in the Context of Social Media: A Review"
by Yim Lung Leung, Jessica Li, and Tracy Yuen Yi Lee (2018) - This review paper explores the
influence of sales promotion strategies deployed on social media platforms on consumer behavior,
highlighting key findings and research gaps.
"Online Sales Promotion: An Overview and Research Agenda" by Christophe Van den Bulte and
Stefan Wuyts (2020) - Van den Bulte and Wuyts provide an overview of online sales promotion
techniques and outline a research agenda for future studies in this area.
"Impact of Online Promotions on Buying Behavior: A Study on Apparel Consumers in India" by
Neha Chawla and Sandeep Kakkar (2019) - Chawla and Kakkar investigate the impact of online
promotions on buying behavior among apparel consumers in India, offering insights relevant to
the e-commerce industry.
"Sales Promotion and Brand Equity in Internet Banking: Evidence from Social Media Marketing"
by Jianping Deng, Yingzhi Zhang, and Qiankun Zhu (2017) - Deng et al. examine the relationship
between sales promotion activities in internet banking and brand equity, with a focus on the role
of social media marketing.
These studies collectively contribute to our understanding of how sales promotion techniques
intersect with digital marketing strategies, offering valuable insights for marketers and researchers
alike.

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