CONSUMER BEHAVIOUR

Application Exercise Report

Submitted by
Group 8

J SATHVIKA (1911104)
KHUSHBOO CHATTREE (1911239)
PRASUN SHEKHAR (1911289)
NIKHITA HEGDE (1911334)
SAI GANESH (1911342)
MANMEET KAUR (1911403)
 Industry Overview
The cosmetic market comprises of make-up for eye, face, lip, nails and natural cosmetics. Globally,
the cosmetic market is growing at 4.3% CAGR and reached $450 billion by 2025. India is the 4th
largest cosmetics market growing at 25% CAGR is expected to be a $20 billion market by. The
market volume grew by 10.6% in 2018 to reach a volume of 219.5 million units and is expected
to have a volume of 326.5 million units by 2023.
Lip make-up is the largest segment of the make-up market in
India, accounting for 58.6% of the market's total value.
Rivalry in the market is assessed as moderate, with some of
the companies having strong brands and enjoying
geographical diversification. Moreover, relatively high fixed
costs intensify rivalry as they make it more difficult to exit
the market. The online cosmetics market is valued at $50
million (around 2%).

Category Overview
Cosmetics is a huge market with new entrants as a result of expansion of brands from other global
markets, e.g.: Bobbi brown, Two faced, Sephora. Increase in social media exposure and disposable
incomes, rapid urbanization, and the need for instant gratification will drive the market growth over
the forecast period. According to Solomon et al. (2006, 508) many beauty rituals that women
practice daily illustrate the value placed by their culture on personal beauty and looking youthful.
Makeup is a high involvement category and with the advent of online marketing space, we observe
a shift in the buying patterns of the customers. Resonating with Kotler, that heavily advertised
products are generally perceived as being of greater quality and consumers are more likely to
purchase brands that are advertised more, digital marketing has led to higher exposure of
the consumer products, more for few brands than the others. Also, social factors such as reference
groups, family, social roles and statuses tend to affect consumer buying behavior for the cosmetics
products. Thus, it becomes imperative to analyze type of influence on the group (informative,
identification and normative influences).
Cosmetics is a highly conspicuous category and a typical consumer’s behavior depends on actual
and an ideal self and consumer sees the need to alter the self-image either to fulfill the need for
affiliation, avoidance of social or performance risk which comes under Normative and/or
comparative influence. Social media (blogs, e-WOM) along with reference group (peers, brand
community, celebrity) influences the consumer who tries to assess the various factors before
adopting the product.
 Brand Strategy
Nykaa
Nykaa is the largest Indian online beauty platform which started in 2012. The brand name Nykaa
has been derived from Bengali word “Neyka”, which means ‘one in the spotlight’. Nykaa offers
a comprehensive selection of cosmetics, skincare, haircare, fragrances, bath and body, luxury and
wellness products for women and men. Nykaa’s private label started in 2015 and has been
expanding into offline stores.

USP of Nykaa private label that has made the brand the first choice of the Millennials is that the
quality and the price points that are is much better than the competitors while providing colors that
are trendy and are in vogue. Nykaa has curated its online content effectively and educates its
consumers regarding products, provides recommendations over its App and website.

Nykaa tagline is “Your beauty. Our passion” and its advertisement focuses on social orientation,
nominalism and group emphasis portraying multiple slice of life scenarios and their cosmetic
products. The trendy, Chic, budding actress Jahnvi Kapoor (daughter of the style icon Sridevi) is
the brand ambassador of Nykaa. The coherence can be observed on how both the brand and
celebrity are trying to establish themselves in a big industry.

Targeted Customers of Nykaa are millennials (22 – 35 years) who are on the go, trendy, have time
constraints and prefer to order everything online, heavily influenced by social media and seek variety
and instant gratification. Thus, it projects an experimental, variety seeking person with high need
for affiliation. The ads links aspirations and achievement-seeking value of consumers through
their line “Lifegoals are like lipstick, never settle for one”.

Nykaa has a strong online presence in terms of product information, customer reviews, number of
purchases. It has an extensive network of influencers over social media who form a virtual
community. They become a part of Nykaa blog, Nykaa network and Nykaa TV which facilitate
consumer interactions regarding product quality, purchase, quality, consumption among others and
provide consumer guidance and tutorials. Nykaa’s Instagram handle currently has about 1.4m
followers. Hashtags such as #nykaabeauty, #nykaacosmetics, #makeupchallenge are some of the
popular hashtags on social media platforms such as Facebook, Instagram, Twitter. Concepts of
reference groups, e-word of mouth, information influence, identification influence are
invoked here.
(Brand-wise Consumer Analysis in Exhibit 2)
(Positioning diagrams in Exhibit 4)
Lakme
Lakme is 68-year-old Indian cosmetics brand found by Tata owned by Hindustan Unilever. It is the
market player with 30.4% shares.
The long existence of the brand and well-developed variety of products across various sub-
categories including lips, eyes, skin, nails amongst other personal care products has helped built
high brand awareness. Lakme differentiates itself from competition by positioning itself as an
innovation leader, with the tagline ‘Lakme Reinvent’. It appeals to the achievement as well as
physical vanity of consumers.
It targets consumers are both the youth (18-30) who have neo-mindset orientation and are willing
to adopt new products and mature consumers (31-60+ years) who have been using Lakme for years
and trust the brand for its quality (uncertainty avoidance) and are high on individualism can
resonate with the communication of the brand.
Further, the brand also emphasized its image through celebrity endorsers Kareena Kapoor Khan
and Ananya Panday who were relatable to the target group.
Lakme has a strong distribution network through its own stores as well as various retailers. Lakme
also promotes its brand and products through Lakme Salons in cities across India. Lakme however,
has a weak online presence compared to Nykaa and targeted activity through Instagram was low,
with about 1.2m followers.
(Brand-wise Consumer Analysis in Exhibit 2)

Maybelline
Maybelline LLC more popularly called Maybelline New York is a cosmetics company based out of
the USA and a subsidiary of the French cosmetics major Loreal, which is one of the world leaders
in the cosmetics industry. This association always creates an image of trust and credibility for
the cosmetics brand which acts as a primary differentiating factor.
Maybelline uses celebrity in all its ads with the setting in New York appealing to aspirational,
western lifestyle values of the consumers. It brings out the extrinsic aspect of their product by
addressing the problem it solves, emphasizing on functional benefits of the product. It addresses
the utility seeking behavior, thriftiness and the busy lifestyle by mentioning the price, volume
and its travel friendly packaging. It tries to portray individualism, respect for work, social
orientation, celebrity orientation (Alia Bhatt in the last few years and Sara Ali Khan recently),
need for affiliation, informative influence, concepts of self-esteem of its target group in the
advertisements alongside the neo-mindset orientation. Maybelline India portrays a very simple
online presence through their website, which provides product, its price, functional benefits and
directions for use. Maybelline India also has a very thin social media presence and influencers in
that it has about 5.5k followers on its Instagram handle.
(Brand-wise Consumer Analysis in Exhibit 2)
 Consumer Analysis
78 Lifestyle statements (Exhibit 1) have been used to analyze the psychographics with viewpoint of
values. Prominent values with score above the mean score have been derived from the AIO
analysis (Exhibit 3)
Prominent Values derived from AIO

Values Score

Individualism 3.87
Respect for work 3.81
Nominalism 3.8
Conspicuous Western symbols 3.79
Group Emphasis 3.77
Self-esteem 3.76
Neo - mindset orientation 3.68
Feminism 3.64

Consumer trait analysis has been carried out:

Personality Traits

Innovators vs Laggards Innovators

Open-minded vs Closed-minded Open-minded
Conformity vs Individuality Individuality
Need for cognition High
Verbalizers vs Visualizers Visualizers
Materialism High
Compulsive vs Fixated consumers Compulsive

From the AIO analysis it has been found that consumers score high on the values of individualism,
respect for work, nominalism, group emphasis and Self –esteem. The consumers are typically self-
designated opinion leaders who display the traits of innovators and are open-minded. These
individuals have a trendy and stylish lifestyle and want to excel in their personal and professional
life.
 Celebrity Analysis
Cosmetic category has extensively used Indian actresses as the brand ambassadors ensuring a
demographic fit. The importance of physical appearance and their exposure to cosmetics in the
movie industry makes them a credible source. Therefore, celebrities provide a degree of fantasy,
aspiration, trust and expert power. The Celebrity trait analysis, factors affecting celebrity usage,
social comparison theory, fit between celebrity and brand persona have been used for a
comprehensive celebrity analysis:
Brand Lakme Maybelline Nykaa
Kareen Kapoor Khan (KKK)
Celebrity Sara Ali Khan Jahnvi Kapoor
Ananya Pandey(AP)
KKK - (31-60+) - mature Millennials (22-35)-
Target group Millennials (22-35)-
consumers high on Individualism Trendy , Need for
they appeal experimental,
AP- (18-30) - Millennials, Trendy, affiliation, Ideal
to western outlook
Chic self-image
Credibility High (KKK); Medium (AP) Medium High
Affection, Excitement,
KKK- Elegant, Individualistic, Popularity, Sophistication,
Celebrity
Sophistication, Achievement Sophistication, Affection,
Persona
AP - Affection, Popularity Excitement, Popularity,
Competence Competence
Excitement,
Excitement,
Affection,
Brand Modern, Innovation driven, Popularity,
Sophistication,
Persona Affection, Sophistication, credible Competence,
Popularity,
Affection
Competence
Fit between
celebrity and High (KKK); Low (AP) High High
brand
Number of
endorsements KKK- 4/16 in fashion category 8/10 in Fashion all 3 in Fashion
in fashion AP - 3/4 in fashion category category category
category
Facebook- 1.0 Mn (KKK); 0.32Mn
(AP)
Social Media Instagram-17.1Mn (KKK); 9.60Mn
Instagram- 19.7Mn Instagram- 8.1Mn
following (AP)
Twitter -NA (KKK); 0.16Mn
(AP)
 Factors affecting Reference Group Influence
Cosmetics are conspicuous and highly visible product. Reference groups play an important role in
the behavior of a cosmetic consumer. The degree of influence on consumer by a reference group
in cosmetics depends on the traits of the individual, product, social factors and risks involved
such as social and performance risks. These factors include conformity, group power, product
expertise and product conspicuousness. Each of the factors have been analyzed in detail followed
by a summary in tabular form:
i. Conformity: Conformity comes into play when behavior in conforming is visible to the
group, social acceptance is a strong motivator and reward/punishment is associated with
conforming/not conforming to group behavior. A reference group influences its members
in the following four ways as described in the following table for Nykaa, Lakme and
Maybelline New York:

Factor/Brand: Nykaa Lakme Maybelline

High (Information Low (Strong brand

Inform/make aware Medium
on various channels) presence)
Compare with attitude and
High Medium High
behavior of the group
Influence to adopt attitude
and behavior consistent High Medium High
with group
High (Social Medium (High High (Group
Legitimize individual’s
acceptance, Group individualism leads approval and
decision
approval) to uniqueness) reward)

ii. Group Power: When consumers are convinced about the power that a person or a group
can exert over them, they often purchase products that conform to the norms of that person
or group in order to be complimented for their choices.

Factor/Brand: Nykaa Lakme Maybelline

Friends, colleagues, Information influence Celebrity and friends in

Reference group
influencers, by celebrity, social setting
Group Power High Medium High

iii. Product Expertise: The degree of influence depends on the individual’s exposure to the
product and availability of information.
 Factor/Brand: Nykaa Lakme Maybelline

Product
High High Medium
Expertise
influencers, blogs and
Communication Celebrities, Continuous advertisements and
social media
Medium proposition of “Reinvent” endorser
campaigns.

iv. Product Conspicuousness: High product conspicuousness for the brands. However, upon
looking deeper into the product ranges of Lakme, following was inferred:
• Lakme 9 to 5 range: High product conspicuousness
• Lakme Perfect Radiance: Very high product conspicuousness

Factors/Brands Nykaa Lakme Maybelline

Group Power High Medium High

Product
High High Medium
Expertise
Product 9 to 5: High
High High
conspicuousness Perfect Radiance: Very High

Consumption Related Reference Group

Consumption related groups include friends, fellow shoppers, virtual communities and advocacy
groups. These influence consumer attitude and behavior which have been analyzed for the selected
brands.

Factors/Brands Nykaa Lakme Maybelline

Friends High Low High

Fellow Shoppers High Low Low
Virtual Communities Very High Medium Low
Advocacy groups Low Low Low

i. Friends: In cosmetics, friends form an important part of consumption related reference

group. Consumer derived values (Exhibit 1) such as group emphasis and social orientation
portray the role of friends in cosmetics usage. Brands like Nykaa and Maybelline portray
usage of cosmetics with friends and approval of cosmetics by friends.
 ii. Fellow shoppers: Female shoppers tend to shop for cosmetics with
friends/colleagues/family in the offline channel. Referral programs are an important element
of shopping groups. Nykaa has ‘Refer a friend’ program for inviting friends to Nykaa
community offering discounts on shopping. Lakme has loyalty program for Lakme salon.
Maybelline does not have an active affiliate program for customers.
iii. Virtual Communities: Nykaa community, blog, Nykaa TV, Nykaa network are leading
communities by Nykaa. Lakme has a weak online community presence as compared to
Nykaa. Maybelline New York has very thin online presence and lacks in terms of virtual
communities.
iv. Advocacy groups: The influence of advocacy groups is low in cosmetics for the three
brands considered.

Online Presence of Brands

Social Media/Brands Nykaa Maybelline Lakme

Instagram 1.4m 10.1m 1.4m

Twitter 32k 721k 78k
Facebook 3.3m 34m 3.1m

Group Influence

i. Normative Influence
Nykaa: In ads, Nykaa portrays slice-of-life people in a social setting. The ads also show group
approval upon use of cosmetics. Relevant others and social acceptance are featured.
Lakme: Normative influence is weak in Lakme ads. Its ads are more towards individualism
and ideal self that the target consumer associates with the symbolic reference group.
Maybelline: Normative influence is high in its ads. Cosmetics usage and group approval are
portrayed in highly desirable environment which also conforms to the conspicuous western
symbol value derived from consumer analysis.
ii. Information Influence
Nykaa: Nykaa has used limited celebrities in the ads, featuring only Jahnvi Kapoor. Expert
spokesperson and influencers are extensively used by Nykaa on its online platforms such as
Nykaa Network, Nykaa TV, blogs thus presenting high information influence providing
credible source of information.
 Lakme: It has extensively used celebrities. Kareena Kapoor Khan has been associated with
Lakme for a long time. Fresh face in form of Ananya Panday has been featured. Lakme
showcases high information influence in conveying credibility of information through
celebrities.
Maybelline: It has used a mix of celebrity and slice-of-life people in conveying credibility of
the information source. Medium informative influence can be inferred from the ads.
iii. Identification influence
Nykaa: Effective use of influencers to convey product information and usage by consumers
invoke high degree of identification influence in the target group. However, ads portray
certain amount of identification influence through slice-of-life protagonists.
Lakme: Weak identification influence as Lakme has always used symbolic group and
celebrities which appeals to the ideal-self-concept of the target group.
Maybelline: Maybelline portrays medium identification influence in its ads. It features
relatable actors in social setting environment focusing on the enhancement of self-concept
of the consumer.
Multi-channel Decision Making and Reference groups

Emergence of mobile technology and social media has impacted the consumer decision making
journey owing to multiple channels available for information search and purchase. Zero Moment
of Truth (ZMOT) is the first exposure of user to product/service on social media networks.
Showrooming is the offline experience. Webrooming is the information search online but offline
purchase of product. (i) Impulsive Journey: Less search of information, depends on mood and
exposure leading to impulsive or emotional purchase decision. (ii) Balanced Journey: An aspirational
or reference group, such as friends, bloggers or celebrities, as well as traditional and digital media
can trigger balanced journeys. Here customers support their decision through cognitive evaluation
by searching information through bloggers, influencers, product reviews on several sources across
channels and platforms to arrive at a purchase decision. (iii) Considered Journeys: Extended pre-
shopping stage which includes gathering of information from multiple sources. ZMOT is the most
influential in this journey laying importance on online forums and blogs as source of information.
 Issues

1. Brand-celebrity fit of new endorser Anaya Panday is weak as it does not resonate with the
year-long proposed brand persona of Lakme

While Kareena Kapoor’s persona fits the elegant inventive and sophisticated persona of
Lakme, Ananya Panday’s persona resonates with affection and popularity but lacks the
elegance and sophistication portrayed by the brand. The introduction of Ananya Panday is
in line with competitor brand also trying to introduce young celebrities as endorsers to appeal
to the youth. However, both Sara Ali Khan and Jahnavi Kapoor fit well with the brand
personas of Maybelline and Nykaa respectively. There is also a marked difference between
the persona of Kareena Kapoor and Ananya Panday. Thus, there appears to be a clear gap
between the persona of the brand and that of Ananya Panday

2. Weak presence on virtual community as compared to Nykaa, Maybelline and low appeal to
consumption-related reference groups of friends and fellow shoppers.

Lakme’s presence on virtual communities and online platforms is weak as compared to

Nykaa and Maybelline. Lakme’s appeal to the consumption-related reference group of
friends and fellow shoppers is weak which is an important informal reference group in this
category of products. Nykaa effectively appeals to these two groups through ads and Nykaa
Community, Nykaa blog, Nykaa ‘Refer a Friend’ program which lacks in the case of Lakme.

3. Reduction of perceived social and psychological risk by increasing the word of mouth.
The endorsers are believed to generate favorable word of mouth and increase customer
loyalty, and this has not been harnessed by Lakme. Nykaa uses its virtual community and
Nykaa TV to decrease the performance and social risk by resolving consumer queries
regarding product packaging to provide guidance on its application in multiple usage cases.
 Article Summary
Article 1:
From endorsement to celebrity co-branding: Personality Transfer; Laure Ambroise, Gaelle
Pantin-Sohier, Piere Valette-Florence, Noel Albert; Journal of Brand Management, 2014
The article aims to understand the impact of the personality of the celebrity on the brand persona
and further its impact on consumer behavior's paper explores the importance of the proximity of
the consumer’s personality to the brand’s persona and its overall impact on consumer-brand
relationship. The article uses the ‘Co-branding’ as a conceptual framework for their analysis. In this
model the association between the brand and the celebrity are perceived as the pairing of two
brands. The combined image transfer is beneficial to both partners. The article uses a personality
barometer and conducts variance analysis for the brand and the celebrity. Fashionwear was taken
as the product category for this analysis. The results showed that if a co-branding is not relevant, it
may damage the brand. The results also show that the impact of brand personality on attachment
and purchase intention depends on the brand’s reputation. Thus, this article reinforces the idea that
celebrities can enhance purchase intention by creating brand attachment.

Article 2:
The role of virtual communities as shopping reference groups; Iryna Pentina, Victor R.
Prybutok, Xiaoni Zhang; Journal of Electronic Commerce Research, 2008
Article talks about virtual community as a special shopping reference group. Virtual communities
are groups of individuals engaged in online interactions and exchange of information on topics of
common interest and goals governed by shared norms and values. Paper explores motivational
construct to explain the influence of virtual communities on their members’ shopping choices is
exercised through the mechanism of social identification. Reference groups and types of reference
group influence on purchase of product depending upon product conspicuousness is also
explained. Virtual communities influence individual’s choices by: Motivation to Join Virtual
Communities and Social Identification, Internalization, Social Identification, and Virtual Group
Influence, Susceptibility to Interpersonal Influence, Susceptibility to Virtual Community Influence
and Buying Behavior and Choices. Cognitive identification, affective commitment and positive
evaluation with the community increases the likelihood of a virtual community’s influence on its
members’ buying choices within the area of the virtual community’s expertise because of an increase
in the susceptibility to the community’s influence. Normative and informational susceptibility
substantially affect buying choice, with normative susceptibility having a slightly stronger impact.
Article 3
The impact of electronic word-of-mouth on consumer online purchasing decision.
Christy M.K. Cheung, Matthew K.O. Lee, and Dimple R. Thadani, 2009
The article aims to explore the effect of electronic word-of-mouth (eWOM) on online purchasing
decision of consumers. Unlike the existing literature, this article focusses on the role positive
eWOM in building trust of consumers. The article builds on the belief-attitude-intention model
which suggests that belief about a product drives the attitude of the consumer towards it which in
turn drives the consumer’s purchase intention. It was found that positive eWOM increased
emotional trust via cognitive trust enhancement. Cognitive trust factors considered included
perceived competence and perceived integrity. Further, the effect of perceived credibility on
emotional trust is found to be higher in comparison to perceived competence. Thus, sources of
word-of-mouth such as online consumer review forums have a direct impact on purchase intention.
 Why articles selected & how it addresses the issue
Reason for choosing Article 1- From endorsement to celebrity co-branding: Personality
Transfer; Laure Ambroise, Gaelle Pantin-Sohier, Piere Valette-Florence, Noel Albert,
Journal of Brand Management, 2014
We chose this article as it directly addresses the issue of brand celebrity fit as found to be lacking
in Lakme through our analysis. The article aims to address this issue through co-branding which
refers to the celebrity and the brand as a joint entity where both have a cofounding effect on the
perceived personality of each other. Further, the article emphasizes on the fitment of the celebrity
for brand promotion and how a negative fit can have a damage effect for a brand. This was shown
to be more pronounced for a well-known brand. Thus, we found the paper to be useful in leading
us to an empirical and theoretical basis for the issue identified with Lakme.

Reason for choosing Article-2: The role of virtual communities as shopping reference
groups; Iryna Pentina, Victor R. Prybutok, Xiaoni Zhang; Journal of Electronic Commerce
Research, 2008
The identified issue mentions the weak presence of Lakme on virtual communities and
consumption-related reference groups of friends and fellow shoppers. Article clearly explains the
concept of virtual communities as a special shopping reference groups which comprises of
consumption-related reference groups in terms of friends, fellow shoppers who have
consumed/purchased the product. A positive influence of virtual communities on individual’s
choices is explained through Social Identification, Susceptibility to Interpersonal Influence,
Susceptibility to Virtual Community Influence. Cognitive identification, affective commitment and
positive evaluation with the community increases the likelihood of a virtual community’s influence
on its members’ buying choices. Paper provides enough support directly for virtual communities
and inferred support for consumption-related reference group of friends and fellow shoppers.

Reason for choosing article 3- The impact of electronic word-of-mouth on consumer online
purchasing decision; Christy M.K. Cheung, Matthew K.O. Lee, and Dimple R. Thadani,
2009
The issue identified in our analysis addresses the perceived risk associated with purchase of the
cosmetic products. While the perceived risk was lower as brand credibility rose, there is still room
for reducing this risk through word of mouth marketing. While papers that spoke on word of mouth
marketing and perceived risk theory were from literature of the 1970s and 80s, we wanted to look
at literature that took the online nature of purchase unto account. Thus, we chose this article as it
speaks on electronic word of mouth through review forums. The paper highlights the positive effect
of word of mouth in improving emotional and cognitive trust thus reducing perceived risk
 Recommendations
1. Lakme can introduce a celebrity that more closely associates with the sustainable core
proposition and brand persona of the company Ananya Panday is a young face and has
popularity and acceptance amongst the youth, this goes in line with the introduction of
younger endorsers by competitor brands. However, unlike Maybelline and Nykaa, Lakme’s
new age endorser does not seem to be a good fit with the brand. Thus, a young celebrity
with a more elegant and innovative appeal can be introduced to endorse alongside Kareena
Kapoor

2. We found that the virtual community footprint of Lakme is weak compared to Nykaa and
Maybelline. Virtual communities can be useful in creating purchase intention as highlighted
through the journal analysis. Communities such as Nykaa Army have helped Nykaa create
likeability and boost purchase intention amongst consumers. Similar communities can be
created by Lakme to address the gap.

3. Through our analysis we found that word of mouth can be an effective tool in reducing the
risk associated with purchase of Lakme products. This can be gene the product the
consumption utility can underscored through electronic word of mouth. Uploading make-
up trial videos highlighting the use of the product, holding offline events and contests
showing products being reviewed by experts can be conducted. This could be used to build
a consumer network conveying the utility of the product. It will further reduce the social and
psychological risk associated with the brand over time. To create further buzz the Lakme
Fashion week can be used as a platform to connect to the consumers.
 Exhibit 1: Psychographic Lifestyle Statements

Mean
score
Values A/I/O Lifestyle Statements Score
for
value
Individualism A I like to be stand out from the crowd at times. 3.60 3.87
I I like to match cosmetics with my clothing. 3.45
It's important that people respect one's
O individuality. 4.57
I like to be considered creative, daring and
Self-esteem A imaginative 3.95 3.76
I consider wearing makeup is indispensable on
I workdays. 3.00
Different brands of cosmetics stand for different
O personalities. 4.33
Conspicuous
Western
symbols A Women wear too much makeup these days. 2.72 3.79
I I like to party on weekends or whenever I get time 4.33
Malls/pubs are places to hang out for enjoyment
O and fun 4.33
Personal
grooming A I purchase a lot of personal grooming products. 3.42 2.84
I prefer going to a beauty salon than shopping for
I beauty and grooming products. 2.33
wearing cosmetics makes me feel attractive to
O men. 2.78
Forward
looking A I am usually the centre of attention in a group 2.22 3.17
I will probably have more money to spend next:
I year than I have now. 4.00
O My greatest achievements are still ahead of me. 3.30
Achievement I get upset when I don’t see the products, I want
seeking A in a store 2.87 3.24
I like to read the stories of people who i aspire to
I be like 4.07
I take pride in performing even the smallest
O activities 2.78
Respect for
work A I buy products that are easy and quick to use 4.33 3.81
I like to finish my work well in advance of the
I deadline 3.60
 O Putting on makeup is too time-consuming. 3.50
Seeking Sometimes, I buy cosmetics/beauty care products
prosperity A that were not on my shopping list. 3.78 2.93
I buy products simply because I liked the
I advertisements. 2.67
O Shopping is fun. 2.33
Social
Orientation A I generally buy brands that reflect mv uniqueness. 3.08 3.15
An important part of my life and activities is
I dressing smartly. 3.87
I tend to form opinions about people who are
O poorly or too casually dressed. 2.50
I am usually the first among my friends to try new
Innovation A cosmetics products. 2.33 3.39
I I like trendy colours. 3.50
O I consider myself a risk-taker. 4.33
Celebrity I only shop for brands that have celebrity
Orientation A endorsements. 1.33 2.21
I like to read fashion magazines and other articles
I that inform me about latest trends 3.03
O I trust the products that celebrities use. 2.25
Emotional
decision I do purchase products out of emotional
making A attachment 2.25 2.94
I Purchasing my favourite brand makes me happy 3.53
I have sort of emotional bonding with the product
O I use 3.05
Neo - mindset I like to visit frequent cosmetics counters to see
orientation A what is new there. 3.25 3.68
I like to watch movies that are intelligent and have
I female protagonists 3.73
O I like to travel and indulge in adventure activities 4.06
Need for
affiliation A I often buy personal care product with friends. 3.77 3.20
I feel upset when mv friends don't call me to go
I shopping with them. 2.87
My choice of brands for many products is
O influenced by advertising 2.95
Group The ‘way I wear makeup is influenced by people I
emphasis A admire. 3.96 3.77
It is more likely for me to buy when accompanied
I by friend(s) than shopping alone. 3.45
I think social drinking is acceptable and at times
O necessary 3.90
 Family I often take advice from my parents about what I
bonding A should buy 2.28 2.61
I I enjoy most forms of housework 2.37
Shops should have seating arrangements to
accommodate family and friends while one is
O shopping 3.17
Uncertainty I feel confident after I choose and use my brand
avoidance A of personal care products 3.77 2.84
I I would not participate in dangerous sports 2.58
Investing in the stock market is too risky for most
O families. 2.17
I buy products for their benefits and not for
Utilitarianism A materialistic possession 4.33 3.25
I Makeup is a way to cover-up my skin problems. 1.93
Free offers and promotions cannot sell products
O that are very rarely useful. 3.50
I won't put on cosmetics that makes me stand out
Conservatism A from everybody else 2.88 2.59
I Men should not wear cosmetics. 2.37
O Makeup is bad for skin. 2.52
Ethnocentrism A I like to read local general interest magazines 2.55 3.04
Personal grooming products with Ayurvedic
I content appeal to me 2.25
I feel proud when Indian women make their mark
O internationally 4.33
I am uncomfortable when my house is not
Nominalism A completely clean. 4.42 3.81
I respect all traditions and often try to conform to
I them 3.67
Traditions are contemporary and relevant in the
O present day 3.33
I buy products that bring out the strong woman
Feminism A that I am 4.33 3.64
I I like to read international women‘s magazines 3.00
Certain brands portray women with progressive
O values to address social issues 3.60
Time If I had my life to live over again, I would sure do
orientation A things differently. 3.83 2.87
I I wish I were younger than I am 2.50
O I often wish for the good old days. 2.28
I enjoy the finer things of life and don't mind
Spend Thrift A paying for them on credit. 2.17 2.97
I spend more time shopping for goods that I
I fancy than the goods that I need 3.67
 O It is worth to pay more for reputations products. 3.08
I would rather spend a quiet evening at home than
Introversion A go out to a party. 2.83 2.69
I prefer to watch movie alone than with a group
I of friends 2.28
Spiritual values are more important than material
O things for self - realization 2.95
Self-
Designated
Opinion Beauty advisors cannot sell me anything that I
Leader A don't want. 3.52 3.33
I I often can talk others into doing something 3.48
people come to me more often than I go to them
O for information about brands. 3.00
Overall Mean for values 3.09

Mean of values: 3.09

Exhibit 2: Brand-wise consumer analysis

LAKME MAYBELLINE NYKAA

Brand
68 years 21 years 4 years
presence
Market share 30% 10% 2%
Maybe She’s Born with
Your beauty. Our
Tagline Reinvent It. Maybe It’s
passion
Maybelline
Excitement,
Excitement, Popularity,
Brand Sophistication, Excitement, Popularity,
Competence, elegant,
personality Popularity, creative, trendy
trendy
Competence,
Been in the market for Conspicuous western Easy Access, Quality at
Differentiator
the longest symbol lower price point
Target Group 18-60+ years 22-35 years 22 - 35 years
Celebrity orientation, Group emphasis, social
Respect for work,
Need for affiliation, orientation, western
Values (AIO) Achievement seeking,
Group emphasis, self appeal combined with
forward looking
esteem Indian culture
 Compliant, Aggressive,
Non- Freudian Compliant, Detached Compliant
Detached

Innovators Vs
Innovators Innovators Innovators
Laggards
Open Vs Close Both outer and inner
other directed other directed
minded directed
Conformity while
Conformity Vs
Individuality establishing Conformity
Individuality
individuality
Online - easy access
Brand
Passed down through and go to website with
consumer Western Symbol
Generations 10Mn+ App
relation
downloads
Ideal Self-image (9 to 5)
Self-Image Ideal social Self Image Ideal Social Self-Image
+ Actual (Radiance)
Symbolic and Symbolic and
Extended self Conferring to status or Conferring to status or Symbolic
rank rank
Altering the Physical and Physical and
Physical Vanity
self achievement Vanity achievement Vanity
9 to 5: Everyday makeup,
long lasting Fit - Me: Anywhere
Product line Nykaa: Trendy, chic,
Perfect Radiance: For makeup, bold, western
perception youthful, Wide variety
special glow, premium symbol
product feel, Ritual
Physical Kiosks, online
purchase platforms,
Physical Kiosks, online company website, App,
Consumer Physical Kiosks, online
purchase platforms, Nykaa Tv, Blog ,
Interaction purchase platforms,
company website, Network, Nykaa beauty
points company website
Lakme fashion Show, award in collaboration
with Femina
Exhibit 3: Prominent Values derived from Psychographic analysis
Criteria for selection of prominent values: Score of value > Mean (3.09)

Values Score

Individualism 3.87
Respect for work 3.81
Nominalism 3.8
Conspicuous Western symbols 3.79
Group Emphasis 3.77
Self-esteem 3.76
Neo - mindset orientation 3.68
Feminism 3.64
Innovation 3.38
Self-Designated Opinion Leader 3.33
Utilitarianism 3.25
Achievement seeking 3.24
Need for affiliation 3.2
Forward looking 3.17
Social Orientation 3.15
 Exhibit 4: Positioning Diagrams
HIGH VARIETY SOCIAL ORIENTATION

CASUAL FORMAL UTILITY LUXURY

LOW VARIETY
INDIVIDUALISM

HIGH FEMININE APPEAL HIGH PERCEIVED RISK

TRADITIONAL WESTERN LOW WOM HIGH WOM

LOW FEMININE APPEAL LOW PERCEIVED RISK

Modifications/New Additions in the Rework Submission Group-8 13.03.2020

Modifications New Additions

Concise Industry and category overview Brand-wise consumer analysis (Exhibit 2)

Brand strategy: Includes inferred target segment e-WOM vs Perceived Risk Positioning

(Exhibit 4)

Consumer Trait Analysis

Celebrity Analysis

Factors affecting reference group influence

Consumption Related Reference Group

Online Presence of Brands

Group Influence: Normative, information,

Identification

Multi-channel Decision Making and

Reference Groups

3 New Issues

3 New Journals

3 New Recommendations