RESEARCH PROJECT REPORT

ON
“A STUDY ON CONSUMER
BEHAVIOUR TOWARDS NYKAA”

Submitted to- Submitted by-

Dr. Rajeev Johari Nandni Tyagi
Professor 2024087
I.T.S School of Management PGDM
(3rdTrimester)

Session 2024-2026
I.T.S School of Management
Mohanagar, Ghaziabad
 Acknowledgement
I would like to express my heartfelt gratitude to all who given me their
invaluable guidance and support throughout the course of our minor
project. Your mentorship has been instrumental in the successful
completion of our project, which revolved around the topics of “Study of
Consumer behaviour toward Nykaa”.
I would like to extend my gratitude to Dr. Rajeev Johari sir as his
expertise and dedication have been a constant source of inspiration,
helping us navigate through the complexities of the project and fostering
a deeper understanding of the subject matter. Your continuous feedback
and encouragement motivated us to strive for excellence, enabling us to
achieve our goals.
I also want to acknowledge the support of ITS School of Management,
Mohan Nagar, Ghaziabad, for providing us with the platform and
resources to undertake this project.
This experience has not only enriched our knowledge but has also
contributed significantly to our personal and professional growth. Your
unwavering commitment to our development is sincerely appreciated.
Once again Dr. Rajeev Johari Sir , thank you for being a guiding light
through invaluable, and we are truly grateful for your time and expertise.
 Declaration
We, the undersigned, solemnly affirm that the report titled "A
Study of consumer behaviour toward Nykaa”. represents our
original work, meticulously crafted under the expert guidance of
Dr. Rajeev Johari. This project, a culmination of dedicated
effort and rigorous research, is being submitted as an integral
component towards the attainment of a Post Graduate Diploma
in Management. We confirm that every aspect of this report is
entirely the result of our independent work and scholarly
contributions. No part of it has been plagiarized or borrowed
without appropriate attribution, and all sources have been duly
acknowledged.
 Table of Content
1. Abstract
2. Objectives of Study
3. Cosmetic Industry Overview
4. Company Profile
5. SWOT Analysis of Nykaa
6. Marketing Strategy of Nyka
7. Problem at Nykaa
8. Literature Review
9. Research Methodology
10. Limitations of Study
11. Data Analysis
12. Data Interpretation
13. Conclusion
14. Suggestions and Recommendations
15. Biblography

Abstract
The cosmetic industry is one of the major industries that have
attracted many players due to its rapid growth. The cosmetic
industry plays an important role in developing country’s
economy. This research project report titled A STUDY ON
CONSUMER BEHAVIOUR TOWARDS NYKAA aims at
studying the consumer behaviour, attitude and opinion towards
the brand, marketing strategy, mass consumer reach and market
status. NYKAA is one of the leading companies in the cosmetics
industry. It offers various brands on one platform. Founded in
2012 by FALGUNI NAYAR. She foresaw a huge opportunity for
online trading in the next few years and turned that opportunity
into a big vision. Her decision was not wrong, and it led to the
birth of a big business. Working internationally, we attract
clients from different regions. He first started a business
providing beauty products and later diversified his business into
fashion, skin care and luxury. This study is conducted to
evaluate consumer buying behaviour and marketing strategies
used by NYKAA to be one of the top companies in ecommerce.

Objective of the Study

 To comprehend the company's marketing strategy
 To evaluate attitude and opinion of consumer towards
nykaa
 To evaluate attitude and opinion of consumer towards
nykaa
 Cosmetics Industry Overview
Long heritage of cosmetic and beauty, aesthetic makeup
products is being used. Since 1981 the liberalization along with
the crowning of Indian women at international beauty pageants,
the cosmetic industry came into limelight in a bigger way and
now a days it appears to be booming economy in India which
would be the largest cosmetic consuming country in coming few
decades. The beauty industry in India is growing at a fast rate
due to the young generation, rise in middleclass, urbanization,
digitalization, and an overall shift towards a much better and
affluent lifestyle and personal care. While the demand of
beautify substances are growing each day, a large no of
international manufacturers gradually extend their ranges and
products in different provinces of India. There has been a
change in the cosmetic consumption and this trend is fuelling
growth in the cosmetic sector. The Indian cosmetics industry has
experienced explosive growth over the past few years, with a
CAGR of 8.5% between 2007 and 2009. This is due to increased
purchasing power and increased fashion awareness, but the
industry-maintained growth momentum during this period.
200102013. The growth rate of these cosmetics or retail market
in India for cosmetics is about 17% per annum and is expected
to reach $50 billion by 2030

With all this “Nykaa” has emerged as the largest omnichannel

brand in India. Nykaa is a market leader in online destination for
beauty products in India.
 Company’s Profile
Nykaa is an Indian ecommerce company,
founded by Falguni Nayar in 2012 and
headquartered in Mumbai. Nykaa offers beauty and wellness
products along with a blog that provides makeup tips, it has an
expert panel of makeup stylists, and skin, hair, personal care
expert to answer questions related to beauty, health, nutrition
and personal care. The online portal has a wide collection of
more than 50000 products from than 500 brands. The company
currently has 30 luxury brands It sells beauty, wellness and
fashion products across websites, mobile apps and 100 offline
stores. In 2020, it became the first Indian unicorn startup headed
by a woman. In 2015, she switched from an online model to an
omnichannel model and started selling fashion products. In
October 2020, the company launched Nykaa Man, India's first
multi-brand online store for men's cosmetics. The company
expanded into fashion with the launch of Nykaa Design Studio,
which was renamed Nykaa Fashion. Nika continues to provide
consulting through various platforms such as expert portals, Bio
Monthly Beauty Book, and Virtual Makeup Studio. Today,
Nykaa is not only a symbol of fashion, affordability and
premium brands, but also the largest beauty brand. The brand is
headquartered in Mumbai and has a number of bricks and-
mortar stores.
Services
By doing so, these activities include enabling Nykaa to closely
monitor information related to after-sale data. It is also used to
store information for future use related to the promotion of the
product.
Supporting Activities
Nykaa also has several auxiliary activities in the value chain
designed to support the above core activities. These auxiliary
activities include:
 Skills Development
 Human Resource Management
These activities are subdivided into the various sectoral
activities in which Nykaa operates
The Infrastructure of the Firm
These include quality control, planning and legal services,
administration and finance. These activities play an important
role in supporting Nykaa's value chain. Nykaa's planning and
financing strategy is defined at the corporate level and quality
management is defined at the business unit level as legal and
accounting practices
Technology Development
The most striking element of Nykaa is its technology. It supports
almost all functions of the company. Technology development
at Nykaa includes a variety of activities such as technology
selection, process design, field testing, and component and
function development.
HRM
Nykaa Human Resource Management supports the company in a
variety of key activities, such as hiring and selecting employees,
evaluating and developing employee skills, personnel planning,
training, development and compensation.
Customer Segment
Nykaa focuses on customer-focused niche marketing strategies.
The company's target market is the middle class, mostly women.
Most of Nykaa's customers are over 18-50 years old. Modern
women are the target of companies that require a well-groomed
appearance.
Swot Analysis of Nykaa
 Marketing Strategy of Nykaa

Marketing is the most important departments in any company,

and the job is to figure out what consumer preference and
manufacture or change products to meet needs. With effective
and efficient marketing strategy, Nykaa is thriving in the beauty
sector. Digital marketing is the core Nykaa's marketing
approach. Nykaa uses a digital marketing strategy to pitch its
customers. The brand targets customers from all tiers of the
city..

Social Media Marketing

Social media channels play the most important role in the
company's marketing strategy. Nykaa has a separate platform for
advertising products. To market nykaa as a well-off brand, the
company uses various social media platforms. Nykaa uses
influencer marketing to reach out to its consumers on social
media platforms. The brand also shares material generated by
influencers who try out Nykaa's products on its social media
accounts.
YouTube Marketing
Nykaa has a comprehensive YouTube marketing strategy.
Nykaa's YouTube channel is focused on providing its target
audience with consumable content such as beauty, self-care tips,
makeup tips, and more. Each of his accounts has a specific
purpose. Nykaa's YouTube channel has a lot of content
including beauty tutorials, bridal makeup techniques, celebrity
beauty tips, and more. Companies also use YouTube ads to
reach their target audience. Nykaa's YouTube marketing is full
of high-quality content that grabs your visitors' attention.
Content Marketing
Content marketing is one of Nykaa's most effective ways to
attract target audiences. Nykaa offers a wide range of
consumables to convert audiences into customers. Nykaa
publishes articles on beauty, makeup and personal care on her
website "Nykaa Beauty Book, Your Beauty is Our Passion"
Event Marketing
Event marketing is a great strategy to target the right audience at
the right time. For the past three years, Nykaa has sponsored the
prestigious Femina Miss India competition. Nykaa's brand value
has grown by sponsoring one of India's largest beauty events
Stepping in Physical Stores
Originally started as an e-commerce company, it has gradually
expanded to individuals and individuals, providing customers
with an omnichannel experience. Because most customers
cannot try on products before purchasing them online, Nykaa
has opened brick-and-mortar stores across the country. Nykaa
maintains its offline presence with 100 physical stores across
India
From makeup to wardrobe`
It is widely regarded as the country's next major border. Nykaa
Fashion is an online store that sells clothes from hundreds of
brands. The launch of Nykaa Fashion proves that the brand is
unstoppable and will continue to grow.
Brand endorsements and collaborations:
After building a public image and strengthening the brand,
Nykaa embarked on brand support and collaboration to promote
its business. Janhvi Kapoor has been appointed Brand
Ambassador for Nykaa. Masaba worked with Nykaa to create a
special line called "Nykaa by Masaba" featuring the packaging
design and printing of Masaba's Nykaa products.
Seasonal discounts and offers:
Nykaa users enjoy various offers and discounts. The Pink Friday
Sale is Nykaa's biggest event, offering huge discounts on
various brands to attract more customers and increase the
company's sales and user base. We also offer various discounts
on various products through our Black Friday sale. Hot Pink
Various items 50% off sale. Customers also participate in Spin
Wheel competitions for a chance to win prizes. To increase
consumer satisfaction with purchases, the company also
provides free gifts for special purchases. This is a fantastic
strategy for companies to increase customer retention. 5 million
brand ambassadors: The brand has amassed such a large
consumer base because it creates word of mouth. Satisfied
customers will sell the product with positive product reviews.
Providing customers with something new is an important
component of Nykaa's marketing approach. Nykaa was a new
concept in Indian businesses at the moment, and it now has a
strong fan base
Platform Marketing
Nykaa promotes its brand because it is specifically designed to
engage audiences on both its website and mobile app. Brand
positioning through the Nykaa website on any platform is very
important. This indicates that updated and new content is
continuously available for the company's target audience. Nykaa
uses blogs, targeted ads and guides to increase online sales.
SEO (Search Engine Optimization)
To improve organic research and establish the presence of its
brand, Nykaa is using SEO services. By adopting the best SEO
services, the company has optimized its content using potential
 Problem at Nykaa

1. Nykaa spends on R&D above industry average

2. Most of the companies rent rather than buy, so they cost
more.
3. The company's ability to meet its short-term financial
obligations is below the industry average.
4. Nika has not done any market research on the markets it
has served in the past two years.
5. Due to low quality control budget compared to
competitors, the order may change sooner or later
 Literature Review
Consumer behavior refers to the psychological, social, and
economic factors influencing purchasing decisions. In the e-
commerce beauty and personal care industry, Nykaa has
emerged as a leading platform in India, revolutionizing the way
consumers interact with beauty products. This literature review
explores existing research on consumer behavior towards online
beauty retail, factors influencing purchasing decisions, and
Nykaa’s role in shaping consumer preferences.

Agarwal H. (2020) studied the purchasing behavior of NYKAA

consumers in Bangalore. The primary goal of this study was to
identify factors that influence consumer purchasing decisions for
the NYKAA. The second goal of the study was to study the
process of purchasing beauty products. The data collection
method used a convenient sampling method. Statistical methods
used simple percentage and rank methods. As a result of the
analysis, it was found that most of the cosmetics market is
occupied by women. Research shows that quality is the most
important factor influencing consumers' purchasing decisions.
Social media marketing and reference groups are other
important factors influencing consumers' buying decisions.

Alvin Louis, Crystal Desouza (2021) investigated consumer

purchasing intentions for the NYKAA. The main goal of this
study was to identify determinants that influence consumer
intention to purchase NYKAA cosmetics. Data were collected
using an online questionnaire. Data were collected from 500
samples. Correlation was used for data analysis. Correlation
analysis revealed a strong positive correlation between NYKAA
cosmetic purchase intentions and NYKAA consumer reviews.
The findings of this study are useful for online retailers,
marketers and practitioners to recognize and better understand
emerging trends in the natural cosmetics industry.

Purnima H Agarwal., Rithvik D. (2018) studied consumer

awareness, attitude and preference towards NYKAA cosmetic
products with special reference to Mumbai city. The aim of
study was to consumer awareness towards NYKAA cosmetics,
to identify the factors influencing the consumers to use Nykaa
products. Descriptive research design was used with non-
probability convenience sampling with 200 respondents of
Mumbai. Karl Pearson’s co-efficient of correlation, average
ranking analysis and chi-square analysis were used for data
analysis. They found that family income per month and
spending for NYKAA products have positive correlation.
Quality was ranked as most important factor that influences
consumers to purchase cosmetics. They concluded the research
with a note that consumers believe that Nykaa products are not a
luxury now and can be used by wide consumers
 Research Methodology
Methodology is an essential aspect of any research of
investigation. It enables the investigation to look at the problem
in a systematic, meaningful and in an orderly way. The present
study is descriptive and analytical one. This study is based on
both primary and secondary data
METHOD OF DATA COLLECTION
PRIMARY DATA
The primary data refer to fresh data from the sample universe by
the researcher themselves. Primary data are those which are
collected fresh and for the first data. The data is collected
through questionnaire method. It has been collected from the
consumers.
SECONDARY DATA
Secondary data refers to the information or fact has been
collected already through newspaper, related journal and
through internet.
DATA SOURCE
Questionnaire is the data source from where the data is collected
to conduct research on the particular topic.
RESEARCH DESIGN
The research design refers to preplanning of what a researcher
does in his study the design adopted in the study comes under
descriptive and analytical research. Such the data collected from
the annual report of the company is analysed under various,
statistical tools.
In this report DESCRIPTIVE RESEARCH METHOD was used
i.e, interpretation were drawn on existing company situation and
no analysis were drawn and then interpretated
SAMPLE DESIGN
Convenience Sampling is a type of non-probability sampling
that involves the sample being drawn from that part of the
population that is close to hand. This type of sampling is most
useful for pilot testing

UNIVERSE OF STUDY
Meerut
Ghaziabad
Delhi
Lucknow
SAMPLE SIZE
100 respondents appeared in this survey
SAMPLE UNIT
Women cosmetic and wellness users
 Limitations of the Study

Primarily NYKAA was introduced targeting female audience for

cosmetics and wellness , but later in 2020 it introduced NYKAA
FASHION and NYKAA MAN.
1. This study is limited to researching to nykaa as cosmetic
and wellness brand.
2. NYKAA has 200 stores PAN INDIA, but this study
researches NYKAA as an ecommerce platform.
3. This study is limited to taking female as research
sample.
4. Sample size in 100 due to the constraints of time and
resources.
5. Age limit is concentrated due to limited resource
6. The method which was adopted for collecting the data
i.e., convenient sampling method in this study has its
own limitations.
7. The customer response may be biased and it has only
limited applications.
8. The study pertains only to the selected respondents of
few cities. Therefore, the findings out of the study
cannot be generalized at all places
Data Analysis
 Respondents reviews on
nykaa
Once I have ordered the product from nykaa it
was okay okay but the product which came was
very small as per it was shown but it was, I will
recommend that other also buy 😊😊

Nykka is good as it's a one platform wherein you

get all the brand's including the luxury brand. And
the next thing i like about it is that from Makeup
to skincare to hygiene everything is available over
there .

t has unnecessary delivery charges as compared

to other shopping apps specially like Amazon and
the quality bof the products provided can be
futher improved.

It's expensive but some products are worth the

price.

Nyka is something i was searching for so long,its

something with best pricing and quality products
 Interpretation
 63.2% Respondents prefer cosmetics and wellness
products based on their SKIN TYPE. While 50% do
find products of their skin type
 44.7% Respondents spend less than 1000 Rs
averagely on every nykaa purchase
 44.7% Respondents SEASONALY shop from nykaa
 55.3% Respondents purchased nykaa products in the
year 2018-2021
 36.8 % Respondents have less than 5 nykaa products
 43.2% Respondents buy nykaa products because of
authenticity of products
 86.8% Respondents get delivered nykaa products
easily
 81.6% Respondents find nykaa app easy navigation
 44.7% Respondents gave 4 /5 ratings to delivery
service
 68.4% Respondents find packaging important
 73.7% Respondents find nykaa moderately priced
 50% Respondents get influenced by SOCIAL
MEDIA MARKETING of nykaa
 50% Respondents find easy substitute to nykaa
 47.4% Respondents can’t say whether they are loyal
customers to nykaa or not
 39.5% Respondents gave 5/5 ratings to recommend
nykaa to others.
 Conclusion of Data
NYKAA has a positive brand image in cosmetics and wellness
market. Consumers prefer buying cosmetics and wellness
products as per their skin type, and sometimes find products
suitable to their skin type.
A large portion of consumers spends less than 1000 on each
nykaa purchase and find nykaa moderately priced.
Promotions sometimes influence the buying behaviour of
consumers and for nykaa consumers get influenced by its social
media marketing
Between the year 2015-2018 most consumers made their first
nykaa purchase and are seasonal buyers of nykaa products.
Most consumers own less than 5 nykaa products
Authenticity of nykaa products make consumers purchase from
nykaa
Nykaa is easily navigable while products are easily deliverable
at their location and satisfied with the delivery service.
Due to easy substitute available in market, most consumers can’t
say whether they are loyal consumers of nykaa or not.
 Recommendation and
Suggestions

1. Nykaa should continue to provide authenticity of products,

as it is the USP of Nykaa why consumers prefer this over
other brands.
2. Nykaa should continue and make its marketing, operations,
product development more effective so that consumer base
doesn’t shifts to its substitute.
3. Nykaa should continue with its effective marketing strategy
techniques to spread brand awareness amongst target
market
4. Nykaa can cut short its pricing and tap the target market
with lower income.
 References
 https://www.nykaa.com/beauty-trends-report/lp
 https://www.nykaafashion.com/
 https://www.nykaafashion.com/
 https://www.nykaa.com/brands/nykaa-cosmetics/c/
1937
 https://en.m.wikipedia.org/wiki/Nykaa?
utm_source=chatgpt.com
 Instagram of Nykaa -
https://www.instagram.com/mynykaa/
 Linkedin of Nykaa –
https://in.linkedin.com/company/nykaa-com