NATIONAL INSTITUTE OF FASHION TECHNOLOGY

RAEBARELI

MID TERM ASSIGNMENT

“OMNI CHANNEL STRATEGIES”

NYKAA

SUBMITTED TO-
MISS. LIPI PRASOON

PRESENTED BY-
ANUPMA CHAUHAN
PRIYANKA TIWARI
RAJESH KUMAR
MAMTA
INTRODUCTION
Nykaa is an Indian e-commerce company, founded by
Falguni Nayar in 2012 and headquartered in Mumbai.
It sells beauty, wellness and fashion products across
websites, mobile apps and 84 offline stores. It has
cosmetics, haircare, bath and body, skincare, luxury
and other wellness products for men and women. In
2015, the company switched from an online-only to
an Omni channel strategy, and began offering things
other than beauty. Nykaa is derived from the Sanskrit
word "NAYAK," which means "one in the spotlight."
Nykaa has offers well-curated, well-priced, 100%
genuine and branded products.
In 2020, it became the first Indian unicorn startup
headed by a woman. Nykaa sells products which are
manufactured in India as well as internationally. The.
The company is valued at Rs.85 billion, with revenue
of Rs.1860 crore. In a month, almost 5500000 people
visit the Nykaa websites worldwide. selling 104
products each minute, 72 percent of loyal consumers
repeat purchases within a month, and 30 beauty
products per minute. As of 2020, It retails over 2,000
brands and 200,000 products across its platforms.
Mission and Vision

Nykaa's mission rests on 3 prominent ideals -

curation, information and personalization. The
company believes in bringing the best offering to its
customers to help them make the right choice for
their holistic beauty needs.
The Mission statement of Nykaa –
“Inspiring Indians, both men and women to make
fashion & lifestyle choices that best suit them.’

SEGMENTATION MANAGEMENT

Nykaa is a marketplace where diverse manufacturers

can sell their wares to end users. Nykaa has a line of
products that they make under the Nykaa brand and
sell to their customers at a low price. It's a huge
success. Initially, the company's activities were
limited to cosmetic items, with a focus on women
between the ages of 22 and 35. However, they have
now included fashion, healthcare, and wellness
products, as well as segmenting their market into
men's products. Demographic, regional, and
psychographic segmentation are used to categories
the output.
Demographic

women and men aged between 22-35 years of

age of middle and upper section of the urban
population of the society, having occupational status
either as working or homemakers. Some of the Luxe
products are catered to high professional income
earners meanwhile some products being affordable
by the people having a middle-class income

Geographic
Nykaa stores are mostly established in metro
cities. Though there are less are less for the physical
stores and the brand is more available on e-plateform,
so the products can be delivered anywhere across
PAN-India.
The people based in urban cities are the primary
targeted customer.

Behavioral
Nykaa uses the customers behavioral factor to
determine the type of services and products needed
by them, based on their previous purchases buying
habits, and their purchase decisions. The track is
kept, to keep the customer coming back for making
more purchasing
The customers of Nykaa are the ones who are open to
a medium to high price range, are also looking for
good quality latest skincare products.

Psychological
The customers are the ones who are more
active in e-shopping rather than shopping at physical
stores. The customers need a good quality experience
at the website or the store to make purchase for the
deterring factors for the purchase are like Trends,
barites, Quality and discounts.

TARGETING
Nykaa is basically targeting customers through niche
marketing strategy, specially the upper middle class
society and more specifically women and also partly
men with an age range of 18-50 years. It has
segmented its customers through demographic
surveys.
The company has mainly kept focus on beauty and
wellness and therefore targeted modern women who
need to look groomed in a flash.

1.PRODUCT
Product is one of the most important components if
the Nykaa .Com.. The distinctive Characteristics of
the product by Nykaa com. A Passion for Beauty are:-

MAKEUP
SKINCARE
HAIRCARE
APPLIANCES
PERSONAL CARE
NATURAL CARE
NATURAL
MOM & BABY
HEALTH & WELLNESS
MEN
FRAGRANCES
LUXE.

Quality
Nykaa com A Passion for Beauty maintains the high
quality of products
High product quality is maintained by adding value
during different stages of the value chain
Nykaa com A Passion for Beauty procures req.
materials from reliable and trusted suppliers only
These raw materials are processed under carefully
maintained environments to maintain high and
consistent quality of the products.
Ease of use

The products manufactured and sold by Nykaa com

A Passion for Beauty are relatively easy to use
All products come with a user manual, which is easy
to understand and which provides simple instructions
for products use
The consumers can also call the 24/7 helpline to
understand details about product usage
2.Price

⁃ Geographical pricing
Nykaa com A Passion for Beauty is able to penetrate
different regional markets to penetrate different
regional markets optimally with the use of
geographical pricing
For offshore locations, geographical pricing also
allows Nykaa com A Passion for Beauty to cover
shipping and customs expenses
Geographical pricing also allows Nykaa com A
Passion for Beauty to maintain consistent revenue
growth by altering pricing in different markets based
on local currency value.

⁃ Premium Pricing
By using premium pricing of some of its product
ranges, Nykaa com.
A Passion for Beauty encourages Favorable brand
and product perceptions in target consumer groups.
Premium pricing for products also encourages a
favorable quality perception of Nykaa com A Passion
for Beauty products amongst consumers.
With premium prices, Nykaa com A Passion for made
some of its product ranges exclusive by restricting
sales and production.
This in turn leads to perception luxury in
consumption products.

⁃ Bundle Pricing
For some product ranges, Nykaa com A Passion for
Beauty is also known to use bundle pricing strategy
popularly
Nykaa com A Passion for Beauty also uses bundle
pricing sales
Bundle pricing increases the trail rate for consumers
Nykaaa com A Passion for Beauty experiences
higher return on the cost of gaining a new customer
With bundle pricing, Nykaa com A Passion for
Beauty is also able to control costs and prices by
lowering marketing and distribution expenses
The use of bundle pricing also adds value to the
umbrella brand name of nykaa.com A passion for
Beauty.
3. Placement
Nykaa com A Passion for Beauty places high
importance on the placement of its products because
it directly relates to accessibility for consumers.

A) Company-operated stored
The company maintains stores operated by the
management of Nykaa com A Passion for Beauty in
all markets
Company-operated stores give Nykaa com A Passion
for Beauty higher control over operations as well as
store layout and design
Nykaa com A Passion for Beauty also interacts
directly with the consumers and gathers important
details regarding consumer behavior and consumer
feedback through company-operated stores
The company operated stores also give leverage to
Nykaa com A Passion for Beauty in terms of
decisions regarding the stocking of different product
items.
B) Licensed stores
Nykaa com A Passion for Beauty licensed stores also
allow consumers to enjoy the various product
offerings by the company
Licensed stores also decrease the risk of financial and
physical investment for Nykaa com A Passion for
Beauty in unstable markets
Licensed stores have also given Nykaa com A
Passion for Beauty high business growth, and a boost
for rapid market expansion and penetration
Through licensed stores, Nykaa com A Passion for
Beauty has also learned about local consumers and
cultures
Licensed stores and shops encourage sales of
products by Nykaa com A Passion for Beauty by
aligning it with local cultural values
Licensed stores also help Nykaa com A Passion for
Beauty in localizing its product offerings to enhance
brand equity and band image.
C) E-commerce
Nykaa com A Passion for Beauty has developed a
successfully operational website for online order
placement and order tracking
Nykaa com A Passion for Beauty also encourages
sales through social media portals, where the
company takes orders through direct messages, as
well as through a mini-shop model
The company also stocks products with online
retailers such as Amazon and eBay, as well as smaller
local online retailers as well
Online retailing and using the internet to make sales
has boosted the sales for Nykaa com A Passion for
Beauty and has also increased the accessibility of its
products for consumers.

D) Supermarkets and hypermarkets

Nykaa com A Passion for Beauty also places its
products in supermarkets and hypermarkets across
the country
A large number of Nykaa com A Passion for Beauty
target groups shop from supermarkets and
hypermarkets
Placement in supermarkets and hypermarkets also
improve cost efficiency for Nykaa com A Passion for
Beauty.
E) Partner agents
In offshore locations, Nykaa com A Passion for
Beauty also makes use of partner agents for its
products’ placement
These partner agents are assessed and evaluated on
strategic compatibility and reliance
Nykaa com A Passion for Beauty contracts with
partner agents in other countries and markets for its
product placement to ensure quality control and terms
of negotiation.

4).Promotion
The marketing strategy for Nykaa com A Passion for
Beauty also places high importance on the
promotional tactics and strategies used. The
promotional strategies allow the Nykaa com A
Passion for Beauty to interact with the consumers and
influence them directly. Nykaa com A Passion for
Beauty uses a 360-degree approach in its promotional
activities, and makes use of the following means of
promotion..
A) Digital marketing
Nykaa com A Passion for Beauty has corporate
profiles on all social media websites and portals
Nykaa com A Passion for Beauty uses its social
media presence to directly, engage with consumers
This direct engagement and interaction allows Nykaa
com A Passion for Beauty to understand the
customers, their needs and demands
Nykaa com A Passion for Beauty uses this feedback
and incorporates it in its broader marketing and
organizational strategy.

B) . Reward Programs
Nykaa com A Passion for Beauty has a loyalty card
program for its customers
The loyalty card allows customers to redeem points
in exchange for products or other exciting gifts, as
directed by the company
Each purchase is entered into the loyalty card by
Nykaa com A Passion for Beauty and is valued for
points against the products’ monetary value
The loyalty card can be purchased or is given
complementary by Nykaa com A Passion for Beauty
on high valued purchases
Frequent usage and purchase of products by Nykaa
com A Passion for Beauty also has rewards against
the loyalty card.
C). Community Influencers
Nykaa com A Passion for Beauty makes use of
community influencers as its on-ground promotional
efforts
Nykaa com A Passion for Beauty identifies strong
and confident individuals to be brand ambassadors in
their communities
Nykaa com A Passion for Beauty provides these
brand ambassadors and community influencers with
its product range and invites them to use it
themselves to see benefits.

D) Conventional marketing
The company places advertisements in consumer-
related magazines. This largely includes home decor,
and home management magazines
Magazine ads are not very frequent, but appear twice
every quarter of the fiscal year
In high-density locations, Nykaa com A Passion for
Beauty also makes use of out of house hoardings
Hoardings increase visibility for Nykaa com A
Passion for Beauty and also work towards building
stronger brand recall
Nykaa com A Passion for Beauty also produces TV
advertisements
All TV advertisements have an emotional appeal to
them
TV advertisements by Nykaa com A Passion for
Beauty have progressed to include a slice of life
elements and characteristics
TV advertisements by Nykaa com A Passion for
Beauty also highlight the functional benefits of the
product.

INVENTORY MANAGEMENT
Nykaa's business plan is based on a series of strategic
business operations that culminate in the delivery of
the final order to the consumer as a product. The
inventory model, exhibiting inventory as selling
products, and order fulfillment are the three essential
features of its business concept.
1. Inventory Model:
 Nykaa operates on both online and offline channels
and to do so effectively, they keep appropriate
inventory in their warehouse. The inventory model is
especially effective at delivering items to customers
faster because it eliminates the need for other sellers
to fulfill the order. It also ensures quality because the
product is obtained directly from a specific brand
without the need for intermediaries.

2. Displaying goods in online and

offline stores:
Nykaa sells beauty and wellness items online and
has several offline stores in various locations to serve
the country's citizens. Clients purchase the product
directly from local retailers. In the case of an online
store, the product range is displayed on the basis of
the inventory on hand. As a result, the company must
constantly monitor stock availability and demand.
3. Order fulfillment:
Nykaa guaranties that product will be delivered
within 1 to 4 days of the order being placed. Nykaa
eventually profits from the discounts they receive for
purchasing products from direct brands. They benefit
from a high product margin because they buy in bulk,
and the end user benefits from dependability, quality,
and a reasonable price.

UNIFIED POINT OF SALE

Develop or provides a POS system to your business
that operate as a unified transaction platform for
online and offline channels. The brands should
connect the essential solution to interlink sales
channels, gain inform brand appearance and provide
customers with genuine added value over
competitors .
a) Nykaa ‘s Wallet
Nykaa Wallet is a virtual currency purse. You can use
it as a source for getting instant refund in your wallet
in case a product is returned. It helps you to place
order faster.
₹ 1 balance in Nykaa Wallet is equivalent to 1 Indian
Rupee.
Nykaa Wallet contains:
1. Nykaa Cash: This amount is accumulated by
accepting refunds in wallet. This amount has no
expiration date.
2. Nykaa Rewards: This stores the balance that you
received as Cashback by Nykaa. Rewards points get
expire in 1 year.
B) Cash on Delivery
If you are uncomfortable making online payment,
please use our Cash on Delivery (COD) facility.
This facility allows you to pay your invoice amount
in cash at the time of delivery at your doorstep.
Kindly select Cash on Delivery at the payment page
Kindly note:

1. You can only make COD payments in Indian

Rupees. Currently, we do not accept foreign currency
or demand drafts
2. Due to the limitations of our courier partners, COD
is not yet available for all pincodes in India. On the
product page, kindly check your pincode under
'Delivery Options' if the COD facility is available for
your delivery address
3. The COD facility is only available for orders above
INR 499.

c.) EMI
EMI option is available only on orders above INR
4000.
You will see the EMI option on the payment page of
the qualifying order with the interest rates charged by
banks
EMI option is supported by following banks
currently:
Standard Chartered bank
Industrial Bank
HDFC Bank
Yes Bank
Axis Bank
Kotak Bank
HSBC Bank
RBL Bank
Citi Bank
ICICI Bank
Interest rate charges depend on the bank and will be
visible on payment page. Please follow the below
steps for order above INR 4000 to use EMI option for
payment:

d). Debit and Credit

We use the 3D secure payment gateway for card

payments and the PayU payment gateway for net-
banking. These are industry-standard secure payment
methods so that we can ensure that all your online
transactions at Nykaa are processed in an extremely
secure environment.
What steps does Nykaa take to prevent card fraud?

Our trusted online payment partners monitor

transactions continuously for suspicious activity and
flag potentially fraudulent transactions for manual
verification by our team:

1. When our team is unable to rule out the possibility

of fraud categorically, the transaction is kept on hold,
and the customer is requested to provide identity
documents.
2. The ID documents help us ensure that the
purchases were indeed made by a genuine card
holder.

E) E-GIFT
This E-Gift Card is redeemable on the online
ecommerce platforms of Nykaa group entities to
include Nykaa.com, NykaaMan.com,
NykaaFashion.com, and used at Nykaa Retail stores
(Luxe and On Trend formats).
This E-Gift Card shall have a validity period of 1
year.
There is no fee or other charges associated with e-
Gift Card purchase.
This E - Gift Card cannot be used to purchase other
gift cards.
E -Gift Cards cannot be redeemed for Cash or Credit
and cannot be reloaded.
This E-Gift Card can be redeemed online against
sellers listed on Nykaa.com, NykaaMan.com,
NykaaFashion.com, and used at Nykaa Retail stores
(Luxe and On Trend).
For individual retail customers E - Gift Cards can be
purchased using the following payment modes only -
Credit Card, Debit Card, Net Banking and UPI.
E-Gift Cards cannot be used to purchase other Gift
Cards.

UNIFIED CUSTOMER SERVICES

Nykaa Beauty Service is a way for to discover ,
browse and book appointments at your city's top
salons ,spas, dermatologists ,nutritionists ,diet
consultants and many other service providers with
Nykaa Beauty Services ,You can:
1. Browse Select and then Purchase a Service of your
choice.
2. Choose to Fully Prepaid. By using online payment
methods such as credit /debit card, wallet or net
banking, or pay up partially online ,and pay the
balance directly to the service provider at the time of
availing the service.
3. Receive your unique appointment code and the
phone number of the service provide via a
confirmation SMS & Email call the service provider
to fix your appointment at your convenience within
30 days from the date of purchase.

OMNI CHANNEL STRATEGY

A) Content Marketing
Content marketing is one of Nykaa's most effective
techniques for attracting customers. Nykaa converts
its audience into customers by providing them with a
range of consumable content. Nykaa publishes
articles on beauty, makeup, and personal care on its
website, "Nykaa beauty book.” Additionally, the
brand creates video content such as cosmetic
tutorials, do-it-yourself projects, and more.
B) Event Marketing
Event marketing is another important marketing
strategy that Nykaa leverages to pitch the target
customers at the right time and right place.
Nykaa has successfully sponsored the popular
Famines Miss India event, one of the largest beauty
events in India on a number of occasions, and is still
tied to the same event.Besides, Nykaa also sponsors
numerous college tests and events like the Red Brick
Summit, 2019 Iim Ahmedabad, and the Mumbai
college fest, Mood Indigo
C) Social Media Marketing
Nykaa has 4 social media accounts for the marketing
of its in-house brand My Nykaa, Nykaa beauty for
the promotion of its e-commerce platform, Nykaa
fashion to promote its e-commerce apparel store, and
Nykaa beauty book, which helps the audiences with
numerous beauty and makeup tips.
The company has its accounts on diverse social
media platforms to extensively promote the brand on
social media. The brand is also engaged in posting
the content created by its influencers via its social
media handles. Therefore, influencer marketing plays
an important part in the promotion of Nykaa.
D) YouTube
On Nykaa’s YouTube channel, more than 45 videos
with 80 industry experts and influencers are created
every month, which are also steamed at all Nykaa
offline stores. Hindi tutorial videos targeting Tier2 &
Tier 3, average over 200000 views per video.

Conclusion

As customers continue to control the method in

which they receive goods from retailers, it’s critical
that retailers match where those customers are
looking. It’s no longer viable to provide one outlet for
purchase. In today’s world, an omni channel
approach is imperative for longevity.

With the right software solution and an honest

customer service experience, merchants can build an
optimized omni channel inventory management
platform built for complete visibility as you grow.
References

Dahlén, M., Lange, F. & Smith, T., 2010. Marketing communications: A brand narrative
approach. Chichester: John Wiley & Sons.

De Chernatony, L., 1999. Brand Management through Narrowing the Gap between
Brand Identity and Brand Reputation. Journal of Marketing Management, 15(1–3), p.
157–79.

Harish, R., 2008. Brand Architecture and its Applications in Strategic Marketing:The
Example of L’Oréal. The Icfai Journal of Marketing Management, 7(2), pp. 39-51.

Išoraitė, M., 2009. Theoretical aspects of marketing strategy. Ekonomika ir vadyba:

aktualijos ir perspektyvos: mokslo darbai, Volume 1, pp. 114-125.

Keller, K., 2001. Mastering the marketing communications mix : Micro and macro
perspectives on integrated marketing communication programs. Journal of Marketing
Management, Volume 17, p. 819–847.

Kotler , P., 2003. Marketing Management. New Jersey: Pearson Education Inc.

Kotler, P., 1997. Marketing management: Analysis, planning, implementation and

control. New Jersey: Prentice-Hall.

Kotler, P., 211. Reinventing marketing to manage the environmental imperative. Journal
of Marketing, 75(4), pp. 132-135.

Kotler, P. & Keller, K., 2007. Marketing Management. Praha: Grada Publishing.

Lamb, C., Hair, J. & McDaniel, C., 2011. Essentials of marketing. s.l.:Cengage Learning.

Rafiee, V. & Sarabdeen , J., 2013. Social Media Marketing: The Unavoidable Marketing
Management Tool. Dubai, University of Wollongong, pp. 933-942.
Rao, K., 2011. Services Marketing. New Delhi: Pearson Education India.

Richards, K. & Jones, E., 2008. Customer relationship management: Finding value
drivers. Industrial marketing management, 37(2), pp. 120-130.

Schmitt, B., 1999. Experiential marketing. Journal of Marketing Management, p. 57.

Teilmann, V., 2010. Market Entry Strategies: International Marketing Management.

Berlin: GRIN Verlag.

Zahay, D. & Griffin, A., 2010. Marketing strategy selection, marketing metrics, and firm
performance. Journal of Business & Industrial Marketing, 25(2), pp. 84-93.