- The document discusses Kaya Skin Clinic, an Indian skincare and beauty services provider. - It analyzes the differences between product and service offerings, highlighting that services are intangible, cannot be stored, and do not result in ownership. - The document examines first-time and loyal customers of beauty services, noting loyal customers are more likely to continue using the services than first-timers. Understanding the differences between these customer groups can help optimize marketing strategies.

1. Case Studies
Beauty Products
KIRAN MANDRAWADKAR
9886733833
DIRECTOR DIGITAL SOLUTIONS
DISHA COMMUNICATIONS

2. THE KAYA CASE STUDY
Group Members – Sheikh Rehmatullah, Shagun
Lidhoo and Prabhav Tiwary

3. • India is an emerging market that is witnessing radical changes in the lifestyles and spending patterns of
customers.
• There is huge unrealized potential in the Indian Hair and Beauty Care Industry.
• There is growing desire in the Indians to look good and feel confident about their appearance, especially for
recognition by others.
A Few Irrefutable Insights
Difference between Product and Service Offering
Case in Mind – Kaya Skin Clinic
 Storage
A Product offering can be stored for an indefinite period of time, whereas a primary Service ends after it is
executed.
(Example – Difference between Kaya Skin Moisturizer Cream Tube vs Facial Treatment at Kaya Skin Clinic)

4.  Homogeneity vs Heterogeneity
A Product offering will be uniform and standardised in nature. A Service offering on the other hand may differ
according to the person and organisation offering the service.
(Example – Composition of the Kaya Moisturizing Cream will be the same, irrespective of the place of purchase.
However, services at different Kaya Skin Clinics may differ even though efforts are made to make the offering and
experience consistent and standard)
 Tangibility
Tangibility Product Offering - Tangible
Tangible Service Offering – Intangible
(Example – Texture and consistency of the Moisturizing Cream can be ascertained by touching the cream and
applying it.
Services at the Kaya Skin Clinic have little or no room for tactility. Service of Manicure can only be felt in the form
of experience, but not touched. )

5. Ownership
Transaction involving products result in direct transfer of ownership from seller to buyer
In case of services, the concept of ownership of title is a ambiguous and service recipients cannot claim
‘ownership’ of the received service.
(Example – You own a Kaya Skin Moisturizing Cream, but do you own a hair grooming service from Kaya Skin
Clinic?)
Service Offering – First Time and Loyal Customers
• In case of Product offering, the first time users may give the offering several chances till the contents of
the product are over. Customer in this case more or less is aware of the needs.
• Especially in the Indian context, families tend to avoid wastage of such products and tend to give the
product some time to show its claimed effects.
• For Loyal Customers, the product offering may have provided them with the desired/expected result. As a
result, the standard product is purchased over a period of time and preferred over the competitors.

6.  In case of Service Offering, the customer is most of the times undecided about the right course of action for her
skin treatment.
 Hence, the first time customers would be looking forward to inputs about ways to improve her skin’s health and
look.
 Loyal Customers on the other hand have gone beyond the identification of problem and have got accustomed to a
set of services provided at the service location. Sometimes they desire services to be provided by a particular
person they have built a trust in.
 Example • While buying Kaya Skin Moisturizing Cream, the first time customer has identified that the sole problem
she faces is dry skin (especially during winters)
 After using this cream once, the satisfaction level decides repeat purchases and eventual loyalty to the product /
brand.
 For someone who has multiple skin problems or is too cautious to take a call herself, the (potential) customer
visits a particular beauty parlour and seeks the advise of the service providers.
 Kaya Skin Clinic has to step in to make their parlour the ideal centre for first time customers.
 After it has roped in customers, it has to understand the dimensions of a loyal customer in a beauty parlour to
convert these first timers into regulars.

7. • Kaya Skin Clinic, like any other service provider in the beauty and skin care industry, would want to serve not
just more customers, but the same clients too.
• Hence the foremost advantage would be that Kaya Skin Clinic can develop strategies that convert their fresh
clients into regulars.
• Dimensions of First Time and Loyal Customers in Beauty Parlours would be almost the same in case of Kaya
Skin Clinic.
Understanding First Time Users and Loyal Customers can help Kaya built separate strategies for the two
groups.
• This will result in focussed marketing activities and the result and effectiveness on the two separate groups
can be measured better.
Advantages of Understanding First Time vs Loyal
Customers of Beauty Parlours

8. What features of the parlour induce repeat visits?
What is the first thing that a first time customer expects from the parlour?
What expected features from the parlour are common between first timers and loyals?
What attribute is expected by first timers that is ignored by loyals and vice’ versa?
What is the desired level of satisfaction for first time users and loyal customers?
Do first timers and loyal customers expect services to standardised or is there a difference in the approach of the
two groups?
Do first timers get lured by beauty parlours through Word of Mouth?
Do loyal customers discuss about their beauty parlours amongst their friend/peer circle?
Questions that Kaya can ask and build their strategy on are–

9. • Data has been collected for the two types of customers of beauty parlours – First Time Users and Loyal
Customers
• This data is further divided into three sections • Section I data reflects the ‘expectations’ of the first time and
loyal customers from a beauty parlour
• Section II data reflects the experience of both the customers with the beautician / service provider in the
parlour
• Section III data reflects the final experience of the respondent against the corresponding expectation in Section
Analysis of Data

10.  There is a clear variation in the expectation of customers and the final experience or the result. (Variation in
Section I and Section III)
 The realized output or result clearly drops in comparison to the initial expectation.
 The only exception to this drop is in the expectation of the service helping the customer feel more attractive.
 In this case, both – the first timers and loyals responded that the result was higher than the expectation
 Amongst both the classes of customers, the variation in response about the expectation and result is more in ‘First
Time Users’ than in Loyal Customers.
 In other words, according to the data, the gap between the expectation of first time users and the final experience
is wider than in loyal customers.
 However, there are a few exceptions. For instance, the gap between expectation and experience of reasonable
prices is (almost) the same for both classes of customers.
 In response to continuing the service of the beauty parlour, the loyal customers were more positive in their
response than the first time users.
 The loyal customers are more willing to repeat visits at the parlour than first time customers. •
Patterns in Data

11. Differentiating b/w First Time and Loyal Customers
Our Understanding –
 To identify the differentiating aspect of decision making, we need to look for the questions which have
produced wider gulfs in the response of the two classes.
 Hence, expectation of customer from employees to help with initial inquiries about products and services
can be used as a differentiating factor.
 Expectation of loyal customers is much higher in comparison to first timers.
 Another differentiating factor is the willingness to continue using the parlour service. Here too, loyal
customers are more willing than first time users.

12. Characteristics of Service Quality
 Customer Response
• Section I and Section III represent two different stages of decision making.
• Section I represents decision making prior to availing the service, in the expectation level.
• Section III represents decision making after availing the service, in the experience level.
• Section II represents service quality in terms of the beautician.
• Various characteristics of service quality can be measured against different responses in the stages of decision making.
• For instance, ambience feature of parlour has a high expectation response of 4.21 and 4.27 in Loyal and First time
customers respectively.
• However, the stage of service experience shows a new figure of 4.00 and 3.86
Implication
• This study and analysis indicates how a particular feature / characteristic is held in importance of expectation, and the
level of satisfaction gained after the experience.
• The variation in response for the particular attribute of parlour service in decision making stage of expectation and stage
of experience can be used by marketers to identify problems and devise solutions.

13. Case Study on Nykaa
E-Commerce Platform for Beauty and Cosmetics Products

14. About Nykaa:
Nykaa is an e-commerce platform for beauty and cosmetics products. Nykaa was launched in 2012 by Falguni Nayar.The
platform offers a wide range of category including skincare, makeup, luxury products, fragrances and hair care products for
both men and women. Nykaa can be accessed through its website(http://www.nykaa.com/) or you can download the
mobile application for Android and iPhone.
Nykaa Founder:
Falguni Nayar:
Falguni Nayar is the Founder and CEO of Nykaa.Nayar was born and raised in Mumbai. Falguni
is a graduate of the Indian Institute of Management, Ahmedabad. She worked for Kotak
Mahindra Capital Co. for 18 years.
When she left in 2012, she was the managing director and head of its institutional equities
business but she wanted to be an entrepreneur.

15. How Nykaa Started:
After leaving her job from Kotak Mahindra Capital Co. Falguni as looking for business opportunity in
India and she noticed a huge gap in the beauty products markets in India. She noticed that the
demand was on the top but there were very few places to get the genuine beauty products. So
she launched Nykaa with her banker husband Sanjay Nayar.
Fundings:
Nykaa has managed to raise 25 million dollars so far from 7 different investors in 4 rounds.
Series A: In the first round of funding held in July 2014. Nykaa abled to raise 3.4 million dollars.
Series B: In series B round of funding Nykaa raised 9.5 million dollars from series of investors
including Michael Carlos, Dalip Pathak, TVS Capital Funds, Atul Nishar, and Harsh Mariwala.
In the third round of funding the company was able to raise 820 million rupees from Harsh
Mariwala, Sunil Munjal.

16. Nykaa Business Model:
The company has an Inventory-based model that has helped the brand to gain its name in the fashion and cosmetics
industry. The products are 100 percent genuine and authentic, sourced directly from the brands. Nykaa provides a hassle-
free shopping experience, the virtual makeover tool, beauty advice and assistance on the phone, free expert advice and
articles on beauty trends and tutorials and celebrity looks.
Nykaa sells more than 35,000 products from 650 brands, both international and Indian, luxury and mass, and is constantly
adding new labels to its stock. In 2015, Nykaa introduced her own brand and it has gone on to become a best-seller on
the platform.
Nykaa Revenue:
Nykaa’s revenue has grown close to 300% in the last two years. In 2016, it raised a total of 104 crore rupees from
investors and the company hopes to break even by the end of this year. The company is also eyeing for an initial public
offering in 2020.Nykaa is receiving 15,000 orders a day, mostly from consumers between the ages of 22 and 35.

17. Nykaa Marketing Strategies:
Nykaa depends on content marketing for their marketing strategy. They provide high-quality content to showcase the
global trends that have proved a winning formula for the brand name.On one hand, where Nykaa is using high-quality
content to generate traffic on the website, Nykaa uses email marketing and social media marketing for remarketing.Nyka
also collaborated with Femina to host the ‘Nykaa.com Femina Beauty Awards’ in 2015 and 2016 to create the brand
awareness.

18. Case Study of Lakme

19. About Lakme
Lakme was probably India's first beauty brand. Ahead of its times, Lakme tapped into what grew to be amongst the
leading, high consumer interest segments in the Indian Industry - skincare and cosmetic products. Lakme has since then
grown to be the market leader in the cosmetics industry in India.
Problem Statement
Lakme wanted a faster and deeper PAN India roll out and Franchising was chosen as an independent growth strategy by
the company. The broader work category involved a Project Development plan as well as Marketing & recruitment of
franchisees in a PAN India roll out plan.
Proposed Solution
Francorp has consulted Lakme in all stages of Franchise Development – starting from business model development to the
execution with special emphasis on following aspects:
 Concept verification & proof of concept
 Benchmarking analysis
 Recommendation for the business model
Impact Of The Engagement
Extension of Lakme from a product brand into a service brand and creating a business format for the service offering -
thus making it more relevant to the consumer.

20. Case Study Of Jurlique
Australian natural skincare products

21. Australian natural skincare products
Founded in 1985, Jurlique International aims to provide pure, effective skin care through natural products. It
is the only Australian beauty brand that has its own certified biodynamic farm.
Started in South Australia, Jurlique’s global presence includes 18 concept stores in Australia, more than 40 stores
in 23 additional countries, and representation in 5000 retail outlets.
Carbon management
A sustainability focus
Jurlique has reduced its environmental impact through numerous measures. To
name just a few:
•Waste diversion of over 90%, supported by a waste management education
program,
•75 kW of solar photovoltaic panels installed at the Jurlique farm and factory,
•Water is transported from the Mount Barker site’s cooling system to the farm for
irrigation use,
•Environmental Management System implemented that aligns manufacturing
processes with ISO 14001.
Jurlique

22. Measuring progress with carbon monitoring software
Yoshie Obara, Jurlique International Environmental Officer, spoke to Pangolin
about the need to align a carbon monitoring solution with Jurlique’s carbon
reduction initiatives. Jurlique required a new, more effective management tool
to replace software in place at the time. Yoshie outlined the company’s core
‘must haves’ as the provision of live data, reliability, cost effectiveness, and a user
friendly interface.
Importantly, the company also wanted a partner in it for “the long run.” After a tender process and investigation of the options
on the market, Jurlique chose Pangolin Associates, providers of Acresta’s CarbonView carbon monitoring solution.
Contributing to their decision, the company considered Pangolin’s experience across carbon management in general, and as
well Pangolin’s team of NGER registered auditors under the Clean Energy Regulator.
CarbonView benefits:
According to Yoshie, Carbon View is a significant improvement for the company. It is “straightforward to use and flexible in
customising the dashboard to suit Jurlique’s particular requirements.” The CarbonView tool enables Jurlique to uncover
information that was previously unavailable to them.

23. Additionally, it provides the following key benefits:
•A flexible, customisable data collation and reporting system,
•The ability to track:
• Energy consumption across a number of stores,
• Water, waste, electricity usage,
• Fuel for company cars and forklifts,
• Impact of flights taken by the organisation,
•Collation of data for monthly, quarterly and annual reports, as well as ad hoc updates.
At mid 2015, Jurlique uses CarbonView monitoring software at the Adelaide Head Office, the Hong Kong office, and at one
store which is running a trial. The company plans to roll out 16 additional stores and other international offices and
warehouses.
Sustainability initiatives in the pipeline
According to Yoshie, the company has set a target of 20% reduction of electricity, waste and water by the end of 2015 (from a
base year of 2010). Without CarbonView software Jurlique would not be able to track progress effectively. Further, Yoshie
comments:
Our goal is to analyse and reduce our environmental impact through the whole supply chain. We have been monitoring the
factory, office and warehouse’s environmental impact. Although it is challenging to expand this monitoring upstream to vendors
and to their sources, this is the direction that Jurlique has taken, it will include everything from the extraction of raw materials
to the final disposal of packaging after a consumer has used the product. We believe that it is critical to understand and
dimensionalise our total environmental impact. By completing the analysis, we believe that we can take actions to reduce the
environmental impact dramatically in the years ahead.

24. Testimonial
Our work with the team at Pangolin Associates aimed to set up our environmental monitoring system and customise our
dashboard and reports. We are pleased with our new carbon monitoring system and the way Pangolin conducts business.
What we appreciated most about working with Pangolin Associates was their comprehensive understanding of wide range of
environmental standards and their ability to apply the standards to the actual business.
Yoshie Obara, Environment Officer, Jurlique International
June 2015

25. Case Study Of Sukin
Australian natural skincare products

26. BRIEF.
Skincare like no other
Based in Melbourne, Sukin Organics is one of Australia’s top-ranked natural skin care brands. Sukin needed
to drive more organic and qualified traffic through to their website, as well as amplify their brand’s
awareness on a national scale. They also wanted to increase their online engagement and convert more of
this online traffic into website purchases.
STRATEGY.
The digital strategy by Zib Media involved implementing a targeted, national SEO across all product and service
offerings, in order to enhance the online visibility of the brand. With ongoing display marketing and tailored
content strategies, we’re able to maintain this boosted visibility. We have also put in place and continue to
manage a successful PPC campaign, Google shopping sales and website e-commerce to drive sales growth.
RESULT.
Through our partnership, Sukin improved their organic search ranking and saw an increase in website visits by
more than 50%. Sukin has now achieved over 300 first page Google results, with sales through their e-
commerce store only continuing to grow. They continue to lead in organic search.

27. Case Study Of KOSMEA
Australian natural skincare products

28. Background
Kosmea founder Marie Kapetanakis established her business from the kitchen of her Adelaide home back in
1993, and more than 21 years later she now sells her range of natural skin care products throughout Australia as
well as to Canada, Hong Kong, Japan, Singapore, UK and the USA.
With current staff numbers at 10, the company continues to grow and aims to expand beyond its existing
stockists which include a number of health food stores, national pharmacy chains and high end retailer David
Jones.
It was time for a makeover
The health and beauty market is ultra-competitive and while Marie Kapetanakis has
been very loyal to MYOB - “I still have the original box on my shelf!” - she knew
Kosmea needed to review their existing software. “We were using AccountRight
Premier Enterprise but we had reached the point where the demands of our
business were growing significantly and we needed to upgrade”, she says.
There were some unique complexities to consider, as Marie points out: “We have
multi warehouse requirements which requires stock to be held in an outsourced
warehouse, a 3rd party manufacturing site, as well as holding stock in our own
office.”

29. A step up to the cloud broadened horizons
Kosmea met up with David from Business Hub, an experienced MYOB Partner. Going with
MYOB was not a given, as Marie says: “While we have a lot of trust in the MYOB brand and
have been using their products for 20 years, loyalty is earned, not taken for granted”.
After a thorough evaluation Kosmea decided upon the one integrated solution that met all of
their needs and had the capacity to help the company grow into the future — MYOB Advanced.
“Firstly, it was cloud-based software which is perfect for our team working off site, but much
more than that, MYOB Advanced could accurately control our inventory, manage customer
special pricing and segment our customer groups without any drama.”
The beauty of 100% flexibility and visibility
From a business perspective, Kosmea now has more flexibility and visibility, in no small
part due to the fact that everybody — including those working off site — has access to
critical information and numbers, which in turn improves productivity.
While Kosmea has come a long way, Marie Kapetanakis is looking to what’s ahead: “We
have a solid foundation to grow on and MYOB Advanced can help us expand the business,
particularly as we enter the US market which will see us embark on further product
development.”