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SHANKAR NARAYAN COLLEGE OF

ARTS AND COMMERCE


NAME: NAZIA MOHD SHAFI BAHADUR
ROLL NO – 03
MCOM PART II
SEMESTER III
PRESENTATION ON STUDY OF CONSUMER
PERCEPTION TOWARDS NYKAA
UNIVERSITY OF MUMBAI
A
PROJECT SUBMITTED TO

UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE DEGREE OF


MASTER IN COMMERCE

UNDER THE FACULTY OF COMMERCE


BY
MS. NAZIA MOHD SHAFI BAHADUR
ROLL NO: 03

UNDER THE GUIDANCE OF

PROF. AJIT N. JADHAV


SHANKAR NARAYAN COLLEGE OF ARTS AND COMMERCE
NAVGHAR, MAHAVIDYALAYA NARG, BHAYANDER( EAST), THANE - 401105
INTRODUCTION: CONSUMER PERCEPTION, NEED, BENEFITS AND FACTORS
 The ultimate of every Business is to increase sales by finding out the factors that drive consumers buying
decisions. Consumer perception tries to analyze and explain consumer behavior. The perception of the same
product or service by different consumers would vary.
 Consumer perception is an individual’s appreciation of a product or service provided or marketed to him. This
term can be seen as a process that starts when the consumer or potential consumer receives information about
a product and ends when he builds an opinion or judgement. According to Joseph Reitz, “Perception includes all
those processes by which an individual receives information about his environment—seeing, hearing, feeling,
tasting and smelling. The study of these perpetual processes shows that their functioning is affected by three
classes of variables—the objects or events being perceived, the environment in which perception occurs and
the individual doing the perceiving.”
 A consumer’s perception of a product or service offered may differ from what the producer or marketer had
intended to offer. This is neither helpful nor favorable in today’s competitive environment. Also, is likely to have
more serious result in seeking consumer attention as today’s consumers have greater exposure to the minute,
diverse and information
 With competition becoming more intense in the global economy making it difficult for products and services to stand out get
differentiated from other offerings in the market, even the production, logistics, sourcing and accessibility to information cost is
also rising. Varied products ends-up facing stiff competition from industry outsiders from new bundles or offerings and
substitutes. The result is decrease in prices as most companies want to win over consumers along with closing the product
differences. The modern consumer is more of a mix. Being very sensitive to prices, the modern consumer is constantly in
search of discounts and bargains. They are also constantly on the lookout for branded and other luxury products. Being very
well-informed, they are even aware and conscious of their powers. The only solution available to a business in such situations
is strengthening the bond between the company and the consumers. This is likely to a give better competitive advantage as this
relationship is not limited to the aspect of price, quality etc
• FACTORS INFLUENCING CONSUMER PERCEPTION:
 PRICING
 QUALITY OF A PRODUCT
 BRANDING AND PACKAGING OF A PRODUCT
 HISTORY AND REPUTATION


ABSTRACT
 The Indian industry is growing and projected to become one of the top 5 global markets by revenue. The Indian
consumer is exposed to international brands more than ever before and is backed by the technological
advancement. Increasing disposable income and image consciousness are making it favorable to invest in the
industry.
 Nykaa is an Indian multi-brand beauty retailer, selling cosmetics and wellness products. It is a successful
ecommerce premier online beauty and wellness destination that offers beauty and wellness products for men and
women at best prices. It is an e-Commerce website offering products from all leading brands such as LAKME,
Mac, L’OREAL, Estee lauder, Maybelline, and many more. Derived from the Sanskrit word “Nayaka” that literally
means “Actress” or one in the spotlight, Nykaa.com is all about celebrating the star in you. Nykaa offers a
comprehensive selection of makeup, skincare, hair care, fragrances, bath, body and luxury products for women
and men at the best price. In terms of both international and Indian, luxury and mass, Nykaa is continuously
adding new labels to its stock. The consumer is growing more and more brand conscious especially with
cosmetics. The targeted consumer belongs to working class, college student and housewives. Working class
women are often keen on purchasing face, eye and lip products that are priced higher, and they look out for that
are easy to use and have longer-lasting effects so that they can last through the day. At the same time, college
students prefer medium-priced products with more color variants for the nails, face, eyes and lips. The wide gap
between the affluent and middle class is decreasing.
 Increasing stress and in India has led to an increase in the demand for products that target these issues. increasing
emphasis on well-being demands safe and non-toxic products. All-natural market is growing at 2.5x non-natural
market. Personalized recommendation by beauty play an equally significant role for premium products. Women in
India have more in terms of adopting Western styles and trend BB/CC creams are gaining over other facial make-
up products in such are tremendous, as these changes are expected to accelerate in the coming years.
PROFILE OF NYKAA:
Nykaa is an e-commerce website founded in 2012 by Falguni Nayar headquartered at Mumbai Maharashtra. She was born
and raised in Mumbai. Falguni Nayar is a graduate of the Indian Institute of Ahmedabad. In 1993, Falguni joined Kotak
Mahindra Bank as a Head of their Investment Banking division. After eight years of managing their international operations
in the US and the UK; Falguni then moved on to take over the role of Managing Director of their investment banking
business in 2005. Over the period of 10 years, she successfully leads the firm to become India’s leading IPO bankers and
was also the key person behind the closure of a number of successful M&As as well. She took a job as a management
consultant after completing her degree of MBA in Finance. Her husband whom she met at business school, took a job in
finance. He is now a CEO of KKR India. Other than that, she was a Founding Member of the Asia Society in India, and also sits
on the boards of several companies, including the Aviva Insurance Board, Dabur India, Tata Motors
Along with the website, Nykaa has entered the brick and mortar space with two formats- NYKAA LUXE and NYKAA ON
TRENDS. The Luxe format features Indian & International luxury beauty brands along with Nykaa Beauty, the in-houses
collection of beauty products. The On-trend format has products by category based on their popularity.
Nykaa Fashion has entered this market while it is experiencing good growth numbers and a lot of growing opportunities.
The online fashion scenario in India has many players already which are playing in many different price ranges and
catering to a wide variety of fashion needs. A growing number of businesses aim to enter the premium to luxury online
selling as India has an increasing number of customers who want to buy premium and luxury goods. The increasing
disposable income and a very young market also supports the growth of such a business In collaboration with Femina,
Nykaa hosted the ‘Nykaa.com Femina Beauty Awards’ in 2015 and 2016, which were the award functions created for
highlighting the best products & brands in beauty & wellness
In 2015, on the occasion of International Women’s Day, Nykaa raised funds for Project “Nanhi Kali”, which is an Indian NGO
for girl child education providing primary education to underprivileged girl children in India.
INTRODUCTION TO NYKAA FASHION
Nykaa Fashion is the fashion vertical of its parent company Nykaa.com. It was
initially launched in 2018 by the name Nykaa Design Studio. Adwaita Nair is the
CEO of the company and her vision was to create a one stop fashion destination
for premium and luxury designer wear for a well aware Indian woman. The
website started with big designer names such as Anita Dongre, Abu Jani
Sandeep Khosla, Amit Agarwal etc. Since then the website has roped in over
150 brands, in only a span of 1 year. These brands include the fresh and
independent designers from all across India. The company leadership decided
to change the name from Nykaa Design Studio to Nykaa Fashion in January
2019, as customers were getting confused as to what a design studio implies in
the case of Nykaa. Nykaa Fashion provides an indulgent online shopping
experience through carefully curated designer labels and collections both,
contemporary and Indian styles for every occasion at premium to luxury price
points. There is a separate domain for the Nykaa Fashion website but a link also
appears on www.nykaa.com by the name Nykaa Fashion. Nykaa Fashion
operates on a Just-in-time marketplace model. Wherein as and when an order is
placed by the customer, a purchase order is raised for the vendor. Nykaa
Fashion gets a commission on the order. The cost of sending the product to the
Nykaa Fashion QC centre (one located in Delhi and another in Mumbai) is to be
borne by the brand, whereas the cost of shipping to the customer is paid by
Nykaa Fashion.
Nykaa Fashion continues to on-board new brands such as W, Aurelia, Forever 21,
etc. There is a dilution in the brand positioning because of this as Nykaa
Fashion wants to present itself as something far more premium than the likes of
Myntra and Jabong.
LITERATURE REVIEW:
Indian fashion landscape, titled “Fashion forward 2020”. They found that more than half the
purchases made by women are driven by trends and variety, as compared to men who often cited
discounts as the primary driver for online shopping. Further, fit was found to be a bigger barrier for
women than men which often led to online purchases as retail stores went out-of-stock. Also, they found
a high regularity of online trend discovery in women’s wear category. In conclusion, they estimate that
digital will influence $30bn of fashion spending by 2020. Out of this, ecommerce will grow 4x its 2016
market size to reach $12-$14bn and women will account for more than 50% of the base.
In Feb 2019, Deloitte published a research report on the behavior of the Indian consumer
“Unravelling the Indian consumer”. They mention that India’s youth (the fastest growing youth
population in the world) is highly brand and fashion-conscious. They cite rising incomes, advent of
globalization, and improved employment and living standards in the country as vital factors that are
leading to the expansion in the market size of apparel, footwear and accessories. They also mention that
e-commerce marketplace model has seen growth in triple digits over the past few years through
innovation, modern retail concepts and use of technology in all parts of the retail sale process.
Samit Chakraborty in his research paper “An Explanatory study on Indian Young MT Consumers’
Luxury Consumption: The Underlying Relationship of Interpersonal.
OBJECTIVES OF THE STUDY1:
➢ To study the Consumer awareness about Nykaa Brand
➢ To study Consumer Perception about Nykaa Brand
➢ To Analyze the Factors influencing to select Nykaa Brand
➢ To Study and Analyze the expenditure and frequency of using the products.

RESEARCH HYPOTHESIS:
H1: There is awareness about Nykaa Brand among the people.
H0: There is no awareness about Nykaa Brand among the people
H1: There is good Consumer perception about Nykaa Brand.
H0: There is no good consumer perception about Nykaa Brand
H1: There are factors that influence to select Nykaa Brand.
H0: There are no factors that influence to select Nykaa Brand
DATA TO BE COLLECTED AND SIGNIFICANCE OF THE STUDY

A. Primary data: It includes


Customer’s view about various attributes of brand, Customer’s actual experience of the brand.
Customer’s expectations & suggestions.
Major competitors.
Current market shares.
 Questionnaire (Google forms), these online questionnaires will be sent to 76 female/male
respondents in the age group of 23-45.
• B. Secondary data: It is that data which is already assembled & need not to be collected. The
secondary data was collected through various websites newspapers articles reports available on
the internet.
SIGNIFICANCE OF THE STUDY:The purpose of this study is to recognize those factors which effect
consumer perception about the Nykaa products and other reasons of popularity and unawareness of
Nykaa products in different areas and social classes.
DATA ANALYSIS ANALYSIS AND INTERPRETATION:
IN TERMS OF PERCENTAGE WISE(%)
AWARENESS
YES 94.7%
NO 5.3%

In terms of awareness:
 71(94.7%) are aware about the Nykaa beauty and
Nykaa Fashion
 4(5.3%) did not heard about Nykaa beauty and
Nykaa Fashion
INSTAGRAM FACEBOOK YOUTUBES NYKAA FRIENDS/ EMAIL OTHERS
ADS FASHION FAMILY MARKETING
POP UPS
31.6% 18.8% 14.5% 14.5% 23.7% 5% 6.4%

In terms of awareness creating channels:


24(32%) of the women who were aware of
Nykaa Beauty/ Fashion came to know about it
through Instagram, therefore Instagram is the
most effective tool of marketing for Nykaa
beauty/ Fashion.
11(14.5%) of the respondents came to know
through You tube Ads, 11(14.5%) of them
came to know through Nykaa fashion pop-
ups, 18(23.7%) of them came to know from
Friends / Family and 8(10.5%) came to know
through Facebook and rest from others.
EXISTING CUSTOMER FOR NYKAA PERCENTAGE WISE(%)
FASHION/ APP
YES 71.1%
NO 28.9%

In terms of existing and non-existing customers:


• Out of the women who are aware of Nykaa
Fashion / Beauty are 54(71.1%%) are existing
customers for Nykaa Beauty/Nykaa Fashion.
Whereas, 22(28.9%) are non-buyers even after
knowing about the website
IN TERMS OF MAKING PURCHASE PERCENTAGE WISE (%)
PREFERENCE BASIS
Once a month 30.3%
Once every 3 months 28.9%
Once every 6 months 35.5%
Twice a month 5.3%

In terms of making purchase


how customer Prefers to buy:
• 27(35.5%) of the existing
customers make a purchase
once in 6 months on Nykaa
Fashion,
• 22(28.9%) make a purchase
once every 3
months.23(30.3%) make a
purchase once in a month.
• Both these numbers indicate
that the frequency of
purchase is low.
Categor Casual Casual Ethnic Western Makeup Footwea Jewelle Bags Other
y ethnic western wear occasion accesso r ry access
wear ries ories

(%) 13.2% 13.2% 9.2% 14.5% 73.7% 11.8% 34.2% 15. 8% 22.4%
Wise

In terms of category purchase, the existing


customers buy in the following manner:
• 10(13.2%) would consider Nykaa Fashion
for ethnic casual wear, 10(13.2%) would
consider Nykaa Fashion for western
casual wear, 7(9.2%) would consider Nykaa
Fashion for ethnic occasion wear,
11(14.5%) would consider Nykaa Fashion
for western occasion wear, 9(11.8%) would
consider Nykaa Fashion for footwear.
• 26(34.2%) would consider Nykaa Fashion
for jewellery, 12(15.8%) would consider
Nykaa Fashion for bags, 56(73.7%) Would
consider for Makeup accessories,
17(22.4%) would consider for other
accessories.
Informatio Instagram Facebook Other Fashion TV
n Channel social media magazines
(%) Wise 68.4% 42.1% 35.5% 6.6% 26.3%

In terms of information about Nykaa:


• 52(68.4%) get the information
through Instagram, 32(42.1%) get
through Facebook, 20(26.3%) from
TV, and rest from Other Social
media and Magazines
Price Less than 3000-6000 6000-9000 9000- 12000- Above
points 3000 INR INR INR 12000 INR 15000 INR 15000
42.1% 34.2% 13.2% 9.2% 2% 5%
(%) Wise

In terms of price point


customers are willing to pay
for Premium products:
• 32(42.1%) are willing to pay
less than or up to 3000 INR,
26(34.2%) of the women who
buy from Nykaa Fashion are
willing to pay 3000-6000 INR
for premium designer wear,
10(13.2%) are willing to spend
6000-9000 INR.
• 7(9.2%) are willing to spend
9000-12000 INR, 2 each are
willing 15000 INR or above.
Shopping
experienc 0 1 2 3 4 5
e (range 0
to 5)
(%) Wise 10.2% 2 .9% 3% 10.5% 38.4% 36.8%

In terms of shopping experience


• 56(73.6%) of the respondent’s
experience was good
according to Rating scale 5 &
4
• Rest of them gave an average
rating as shown above.
Gender Male Female
(%) Wise 83.8% 16.2%

On the basis of Gender:


• From the above chart it is
observed that 62(83.8%) are
female users and 12(16.2%) are
male users of Nykaa
CONCLUSION:

 I would like to conclude my project work on Consumer Perception and Brand Awareness of
Nykaa beauty and Nykaa Fashion. It was really very interesting interacting with customers &
have an insight into brand image in their minds.
 The enormous Beauty Industry is exceptionally growing and this attracts many players in the
market Several new start-ups by female entrepreneurs have proved to be successful in the
recent times. One such player is NYKAA. Nykaa has proven to fill the gap between demand and
supply of cosmetics in India. With 33% market share, Nykaa is leading cosmetics brand. After
being reputedly known for selling the best quality products of various brands it’s time to
launch in-house products in premium category. The new initiative will help Nykaa as a brand to
elevate itself from mass market segment to the growing premium segment. The extension will
boost Nykaa’s sales thereby it to remain market leader in long run. The Luxe product range
will lead to repurchases and reach to new customers. Nykaa Fashion has not been able to
find its core area of competency and therefore faces immense competition which it cannot
fight through a distinguishable characteristic.
FINDINGS
 All its competitors have a higher recognition among the customers. The hypothesis that
Indian women still put price considerations as a top most priority has not been proven to
be true, quality of the product and fashionability are some of their top most priorities
while purchasing a premium/designer product.
 Strict return options while purchasing premium products online remains as one of the
biggest problem areas for Indian customers. Nykaa Fashion’s policy of 48 hours return is
something that does not go down well with the Indian woman because to buy a premium
product online is already not a very easy thing to do as the transaction values are
higher.
 Nykaa Beauty/ Fashion should create an easy to follow catalogue format as many of the
brands complain about the cataloguing process as it is tedious and repetitive. Nykaa
Fashion must create a very strong and fixed brand proposition in front of its customers
so that there is no cognitive dissonance among the customers and the company can grow
through a core competency instead of just offering cheaper brands.
 The main aim was to know the factors & attributes of brand which customer look when
they prefer to buy products. From the survey, in all concluded that people are quite
satisfied with the brand.
 The organized market of Beauty industry is growing, because more & more women are
getting employed, income levels have increased & most of the women don’t get time to go
to the stores and buy the products.
 So Nykaa Beauty as major player in organized market has even better opportunities in
future. Some customers have complained about packaging & prices, Discounts and lack of
variety where company has to improve. But in all it can be concluded that most of the
customers are satisfied about the brand, & are well aware of various attributes of the
brand.
SUGGESTIONS:
 Forecast market trends & try to adjust accordingly so as increase market share &
take advantage of established brand image.
 Try to bring more innovations like more varieties, sizes & their different
combinations.
 Company should improve its packaging.
 Time to time market survey should be conducted.
 Some consumers perceive that price of Nykaa products and Price on Nykaa is
somewhat high so if possible, company should think on its price positioning in market
by revising prices.
THANK YOU