A STUDY ON EFFECT OF INFLUENCER MARKETING IN

INCREASING BRAND AWARENESS FOR NEW COSMETICS

BRAND

Master Thesis Research Report submitted in partial fulfillment of the award

of degree of Masters in Business Administration

By
RACHANA MAHESHWARI USN:
19MBAR0338

Under the Guidance of

Dr. Sangeeta Devanathan,
Asst. Professor, CMS Business School

No.17, Seshadri Rd, Gandhi Nagar, Bengaluru, Karnataka 560009

Phone: 080 4684 0400 2020
 MENTOR CERTIFICATE

This is to certify that this Research Project submitted to CMS Business School, Jain
(Deemed-to-be University), Bangalore, by RACHANA MAHESHWARI USN. No.
19MBAR0338 is a record of research done on the topic “How effective is influencer
marketing in increasing brand awareness for new cosmetics brand”. This work was
done by her during the academic year 2020, under my guidance and supervision in
partial fulfillment of the requirements for the award of Master in Business
Administration (MBA).

This research report has not been submitted for the award of any Degree, Diploma,
Associateship or Fellowship or any other title in this University or any other University.

Place: Bangalore Dr. _________________

Date: Professor

CERTIFICATE BY THE DEAN

 CERTIFICATE

Awarded to RACHANA MAHESHWARI. This is to certify that the Research Report

entitled ‘How effective is influencer marketing in increasing brand awareness for

new cosmetics brand’ has been submitted in partial fulfillment of the requirement for

the award of master of Business Administration of JAIN (Deemed-to-be University).

Date:
Dean – Academics CMS
Business School Place:

DECLARATION
I, hereby declare that this Research report on ‘How effectives is Influencer marketing in increasing

brand awareness for new cosmetics brand’ is prepared by me during the academic year 2019-2021

under the guidance of Dr. Sangeeta Devanathan, Professor.

This report is not based on any previously submitted project for the award of any Degree or Diploma

offered by any University. It is the result of my own effort.

Name: RACHANA MAHESHWARI

Sem: III. Sec: CM1

Reg. No: 19MBAR0338

ACKNOWLEDGEMENT

First and foremost, I offer my sincerest gratitude to our Dean Prof. Dr. Harold Andrew Patrick,
Jain University, for his academic support and the facilities provided to carry out the Research Report

at the Institute. His wide vision and concern for students have been inspirational.

I take this opportunity to express my profound gratitude and deep regards to my guide Dr. Sangeeta

Devanathan for her exemplary guidance, monitoring and constant encouragement throughout the

course of this project. This project report is a collective effort of all and I sincerely remember and

acknowledge those who have helped, for their excellent help and assistance throughout the project.

TABLE OF CONTENTS
Sl. No. Topic Page No.

1 Chapter 1: Introduction and Review of Literature 2-17

2 Chapter 2: Research Methodology 18-20

3 Chapter 3: Data Analysis and Interpretation 22-30

4 Chapter 4: Findings and Recommendations 32-36

5 Appendix 37-40
 CHAPTER- 1
INTRODUCTION
AND REVIEW OF
LITERATURE

INTRODUCTION

Influencer Marketing is a form of marketing that enables businesses to collaborate with

individuals who have a following for increased brand exposure. Is a hybrid of old and new
marketing tools. It takes the idea of celebrity endorsement and places it into a modern-day
content-driven marketing campaign. The main differentiator in the case of influencer
marketing is that the results of the campaign are collaborations between brands and
influencers. It focuses on using key leaders to drive the brand’s message to the larger market.

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Companies may ask a person with a large following to publish social media content that
promotes their products or services. An integral part of any influencer strategy is figuring out
which influencers might suit your company.

Social media has given normal people an opportunity to build their own brand through
stimulating content and engagement. These new influencers are more relatable than traditional
celebrities.

Since more people are joining social media networks every day, companies have begun to
realize they can leverage these platforms for marketing. Interest in influencer marketing has
only raised, which means a lot of research has been conducted which has produced interesting
statistics. So let's take a look at some of the most eye-popping results of these studies.

Influence can come from a wide range of places. Any person, group, brand, or place could
potentially be an influencer. For example, celebrities are often used to market products
because they are highly respected and highly visible. When a celebrity uses a product, the
maker of that product gets exposure and the respect that comes from a celebrity endorsement.

Influencers are often the driving force behind new trends and movements (which we will
discuss further later on in this article). They frequently introduce audiences to new ideas,
brands, products, etc. So being seen as a hot new concept is one of the many benefits of
influencer marketing. Aligning your brand with an influencer who moves the needle in the
trends department shows people that your company is an innovative leader in your industry.

Influencer marketing campaigns aren’t just about metrics it’s about building relationships. So
establishing rapport with influencers creates strong and lasting partnerships that drive long-
term results for both the brand and the influencer.

Nearly half of marketers engage in influencer partnerships lasting six months or longer, while
37% of influencers say they’re working with brands for longer periods as opposed to one-off
campaigns. This is also an ample strategy for Instagram influencers in building their own
brand and resume.

Additionally, influencer marketing helps brands circumvent certain obstacles many other
online marketing mediums face today. Mainstream adoption of ad blockers is in full effect, as

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well as users’ general loathing for blatant advertising, influencer marketing offers brands a
viable, unobtrusive way to interact with consumers.

INFLUENCERS MARKETING EFFECTIVE:

Establish credibility and trust. One of the reasons many businesses have a hard time selling
their products and services is that they can’t establish credibility. Your business must appear
credible if you want people to buy from you. By partnering with an influencer that followers
trust, you can quickly boost your credibility.

Cost-effective. Another major benefit of using influencer marketing is that it’s cost-effective.
If you decide to use this tactic, you may generate a significant return on your investment as
long as you partner with the right people.

Attract quality leads. By using influencer campaigns, you can reach people who are likely
interested in the products and services you offer. As a result, you may have an easier time
increasing your conversion rate.

Boost brand awareness. When you partner with influencers, you immediately get your
products and services in front of hundreds of thousands of people. There are even some
influencers who have millions of followers. Therefore, there are plenty of ways to use
influencer marketing to boost brand awareness.

INFLUENCERS MARKETING STRATEGY:

Identify your goals. What goals do you need to meet? What can you do to track your key
performance indicators? How will you judge the success of your influencer marketing
campaign? You need to have a solid set of goals for the best outcome.

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Determine your audience. Next, you need to take a look at your audience. Who is the ideal
customer? What problems do they have? What types of social media platforms do they use?
By answering these questions, you can reach your target market effectively.

Create a budget. Creating a budget allows you to determine how much you can afford to invest
in influencer marketing. This may be useful if you’re paying influencers directly for their
work.

Find the best influencers. It’s best to take some time to find the right influencers. Who do you
want to partner with? Who are their followers? Do you want to partner with a social media
star? Or, do you want to partner with someone with a large following in a particular industry?

Track metrics and optimize your strategy accordingly. Finally, you need to track your metrics.
How successful is your influencer campaign? Do you need to make adjustments to improve it?

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GROWTH OF INFLUENCER MARKETING

As of 2022, the influencer marketing industry in India was valued at over 12 billion Indian
rupees. It was projected to grow at a compound annual growth rate of 25 percent over the next
five years.
The industry’s market value was estimated to amount to 28 billion Indian rupees by 2026.
Nearly 55 million urban Indians were direct consumers for influencers of various kinds as of
2022.
In recent years, influencer marketing has really been on the rise.
Marketing professionals also realized the benefit of collaborating with influencers who
actively engage in growing their audiences by producing authentic content. These factors
combined led experts to predict a 25 percent compound annual growth rate in the Indian
influencer marketing industry until 2026.
Influencer marketing in India is growing rapidly. Indian Brands are leveraging on information
gathered from digital and social touch points to gain better customer insights, improve
customer experience and also for new product development.
Brands are advertising on web, social and mobile, and driving traffic across channels by cross-
linking various platforms to attract users to their digital touch points.
Brands are also looking to create compelling content such as storytelling, contests to drive
users to digital and social media channels.
Activities on social networking sites are high between 6 PM to 10 PM. Mumbai and New
Delhi accounts highest traffic to social media sites.
According to the report, influencer marketing industry in India is maturing with brands across
verticals and size, political parties, individuals relying heavily on influencer-driven campaigns
nowadays for their product or campaign positioning as well as messaging.

Influencer marketing is a classic marketing concept that is now used in entirely new ways.
Businesses have always relied on the power of influencers, but digital tools make it easier than
ever for them to connect. Working with these tools is not easy though.

Internet marketing presents as many challenges as opportunities. The best way to get all the
skills necessary to carry out successful influencer marketing campaigns is to get a bachelor's
degree in marketing.

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Companies will then start analysing where their influencers gather, who their audience is, and
what kind of message they are spreading. Carefully studying the influencer's preference makes
them easier to reach out to later.

When the company is ready to contact the influencer, they will communicate through social
media or some other informal means. The goal is to form an organic relationship that is not
based entirely on endorsing and selling.

COSMETICS MARKET IN INDIA

India Cosmetics Market Outlook 2017-2030

India’s cosmetics products market is projected to register a CAGR of 4.23% over the next
five years.

In India, the colour cosmetics market is among the fastest growing due to the acceptance of
western culture. The penetration of colour cosmetics in the Indian market is rising as the
aesthetic appeal of the younger generation grows. In the Asian region, India is considered one
of the fastest-growing countries in the cosmetics products market. Furthermore, the color
cosmetics industry (including the eye, facial, and lip makeup categories) is the most
prosperous industry in India. Local companies, such as the Shahnaz Husain Group, are
exclusively providing herbal and ayurvedic cosmetic products due to the prolonged health
benefits they offer the skin.
With the increasing penetration of the internet, the online market for the purchase of
cosmetics products has seen rapid growth in the last 3–4 years in India. This category has
attracted a few vertical specialists, like Nykaa, Purplle, Nnnow, etc., who are riding on the

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increasing e-tail growth and vying for a significant piece of the online cosmetics pie. Nykaa
offers more than 600 brands in both offline and online stores in India. Colour cosmetics,
which deal with the eye, facial, and lip makeup categories, are the most prosperous industry
in India. Local companies, such as Soultree, Herbal Hills, Himalaya, and The Shahnaz Husain
Group, among others, are exclusively providing herbal or ayurvedic cosmetic products due to
the prolonged health benefits they offer the skin.

India Cosmetics Products Industry Segmentation

Cosmetics are designed to enhance one’s appearance (makeup), conceal blemishes, enhance
one’s natural features (such as the eyebrows and eyelashes), add colour to a person’s face,
and can be used to change the appearance of the face entirely to resemble a different person,
creature, or object. India’s cosmetics market is segmented by product type, category, and
distribution channel. On the basis of product type, the market is segmented into color
cosmetics and hair styling and colouring products. On the basis of the distribution channels,
the market is segmented into hypermarkets and supermarkets, specialty stores, pharmacies
and drugstores, online retail stores, and other distribution channels. For each segment, the
market sizing and forecasts have been done on the basis of value (in USD million).

India Cosmetics Products Market Trends

This section covers the major market trends shaping the India Cosmetics Products Market
according to our research experts:
Inclination Toward Vegan and Cruelty-free Cosmetics Products
The cruelty-free, vegetarian, and vegan beauty market has exploded in recent years, both
globally and in India. The Ministry of Health and Family Welfare of India has imposed the
cosmetic testing ban, which is added to the new rule “148-C. prohibition of testing of
cosmetics on animals, such that no person shall use any animal for the testing of cosmetics”
in the existing Drugs and Cosmetics Rules. Moreover, with the advancement of vegan
products in the country, Indian consumers are paying extra attention to not only a particular
shade of lipstick that suits them but also to how the lipstick is made. Additionally, global
vegan cosmetics companies are also venturing into the Indian market, thus expanding the
scope for the same in the country.

Rising Penetration of Colour Cosmetic Products in the Country

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With the rise in the adoption of western culture, the colour cosmetics market is one of the
fastest-growing markets in India. As the aesthetic appeal of the young generation is rising, the
penetration of color cosmetics products in the Indian market is increasing. India is estimated
to be one of the fastest-growing countries, in terms of colour cosmetics, in the Asian region.
Indian companies are venturing into organic colour cosmetics due to the increasing demand
among large sections of Indian society. The companies in the market, such as Ruby’s
Organics, had developed a range of makeup staples that were specifically meant for Indian
skin tones and textures. These products have bio-active oils, butter, and natural clays in them,
so they’re more than just makeup—they’re also good for your skin. The range of p cosmetics
includes lipsticks, eye pencils, and blush, which is helping to boost sales of colour cosmetics
in the country.

The cosmetics industry in India is expected to show strong signs of expansion during the next
five years.
The growth is impressive, especially during a time when most companies are experiencing
downturns or feeling the pinch of a downturn. It should be noted that the beauty industry in
India dates back to ancient times when women believed that regular kitchen ingredients had
healing and beauty properties.
It is evident that despite the growth of the beauty industry, there are many challenges and
problems that plague the industry in 2023, as well as solutions that can offer relief.
It is estimated annual retail sale of cosmetics & other personal care products is growing in the
range of 1520% annually, thus placing the domestic demand in India as one of the fastest
growing across the world. Over the past 5 years total demand has grew by 60%.

Brands need to build awareness around products through storytelling, right ways to use the
product, skin patch tests, dos and don’ts, and organic reviews rather than paid collaborations
that can be misleading most of the time.

Marketers and communications professionals must look for ways to leverage these new
influencers to change the dialogue about brands in the digital space by ways of leveraging
these new influencers. By doing so, stakeholders in the beauty industry would be able to
protect existing and potential consumers from being misled by inaccurate information.

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India cosmetics industry is driven by the high personal disposable income of people, rising
awareness towards body aesthetics, coupled with increasing demand for herbal cosmetic
products.

High adoption of herbal products has led to growth of the segment at 15% annually, on the
back of the fact that people are becoming more aware of possible side effects on skin by
constantly use of chemical formulations based cosmetics.

The rising awareness of beauty products, increasing premium on personal grooming, changes
in consumption patterns and lifestyles and improved purchasing power among women are
expected to boost the industry. The country's cosmetics and cosmeceutical market is expected
to register annual growth of 25 per cent touching USD 20 billion by 2025, according to
industry experts. The market will maintain healthy growth due to rising preference for
specialised cosmetic products such as organic, herbal and ayurvedic products. Principal areas
that are expected to grow include colour cosmetics, fragrances, specialised skin care and
make-up cosmetics.
The majority of growth is shown to take place in the online retail sector as it has been found to
be much more convenient than the other modes. Headquartered at Mumbai, Maharashtra,
Nykaa has been in the lives of every Indian girl for a very long time. With over 1,30,000
products from 1300+ curated brands, Nykaa has come a very long way. They even have 70
offline stores in various parts of the nation enhancing their public reach. Nykaa offers high-
end makeup and Wellness brands on its website for exciting discounts and complimentary
gifts. We would have to pay the actual price for the same products if bought from a retail
store. Nykaa has come a very long way from where it started. The beauty industry has evolved
so much since 2012 and a huge part of this is due to Nykaa. Makeup was a concept very
distant to the common women of India and was considered as something only used by
celebrities. This idea is now shattered and the main reason behind this is the easy availability
of high-quality products.
According to a new research report, the Indian Cosmetics Industry is expected to witness
impressive growth rate in the near future owing to rising beauty concern of both men and
women. Today the industry holds promising growth prospects for both existing and new
players.
Indian Cosmetic Companies
Himalaya, Biotique, Dabur, Lotus L’Oréal, Revlon, Avon Products Inc., Oriflame, The

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Procter & Gamble Company, Unilever PLC

ABOUT THE RESEARCH

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 100+ offline stores. In 2020, it became the first Indian unicorn startup
headed by a woman.

Nykaa’s marketing strategy is seen to work via its YouTube channel and influencer marketing
on social media platforms. Nykaa posts product-oriented content on its social media handles
and invests in influencer marketing for influencers to create tutorials, and look at or review
new brand launches.

Nykaa is an Indian e-commerce company and the largest beauty shopping destination in
India. Nykaa being a startup uses influencer marketing to create an awareness about its
products. Influencers enjoy a strong follower-base of loyal fans and this trust is the reason
why influencer marketing works really well for start-ups looking to boost brand awareness
and reach a relevant audience. To be able to judge the influencer marketing done by Nykaa,

My research is about ‘How effectives is Influencer marketing in Cosmetics brand?’ I have

carried out a survey wherein targeted age was between 18 to 25 years as it is the target market
of Nykaa. 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 18-50years. It has segmented its customers through demographic, psychographic
surveys.

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REVIEW OF LITERATURE

• Nathaniel J. Evans,Joe Phua,Jay Lim &Hyoyeun Jun

Pages 138-149 | Accepted author version posted online: 17 Aug 2017, Published
online: 14 Sep 2017

In this study, the effect of disclosure language was examined (control/no disclosure, “SP,”
“Sponsored,” and “Paid Ad”) in Instagram-based influencer advertising on ad recognition,
brand attitude, purchase intention, and sharing intention among a sample of 237 students. In
line with prior research, results indicated that disclosure language featuring “Paid Ad”
positively influenced ad recognition, which subsequently interacted with participants'
memory of a disclosure and mediated the effect of disclosure language on attitude toward the
brand and sharing intention. The findings offer a significant contribution to the literature on
consumers' information processing and understanding for new and developing native
advertising executions.

• Chen Lou &Shupei Yuan

Pages 58-73 | Accepted author version posted online: 30 Oct 2018, Published
online: 12 Feb 2019

In the past few years, expenditure on influencer marketing has grown exponentially. The
present study involves preliminary research to understand the mechanism by which influencer
marketing affects consumers via social media. It proposes an integrated model— the social
media influencer value model—to account for the roles of advertising value and source
credibility. To test this model, we administered an online survey among social media users
who followed at least one influencer. Partial least squares (PLS) path modeling results show
that the informative value of influencer-generated content, influencer’s trustworthiness,

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attractiveness, and similarity to the followers positively affect followers’ trust in influencers’
branded posts, which subsequently influence brand awareness and purchase intentions.

• Alexander P. Schouten,Loes Janssen &Maegan Verspaget

Pages 258-281 | Received 22 Aug 2018, Accepted 13 Jun 2019, Published online:
02 Jul 2019

In their marketing efforts, companies increasingly

abandon traditional celebrity endorsers in favor of social media influencers, such as vloggers
and Instafamous personalities. The effectiveness of using influencer endorsements as
compared to traditional celebrity endorsements is not well understood. Therefore, the present
research investigated the impact of celebrity vs. influencer endorsements on advertising
effectiveness (attitudes toward the advertisement and product, and purchase intention),
moderated by product-endorser fit. Moreover, this research investigated two potential
mediators underlying this relationship: identification (perceived similarity and wishful
identification) and credibility (trustworthiness and expertise). Two experiments (N = 131, N 
= 446) investigated celebrity vs. influencer endorsers with good vs. poor fit with a beauty and
a fitness product, or a food and a fashion product. Overall, the results showed that participants
identify more with influencers than celebrities, feel more similar to influencers than
celebrities, and trust influencers more than celebrities. In terms of advertising effectiveness,
similarity, wishful identification, and trust mediate the relationship between type of endorser
and advertising effectiveness.

• Francisco J. Martínez-López ,Rafael Anaya-Sánchez,Marisel Fernández

Giordano &David Lopez-Lopez
Pages 579-607 | Received 05 Nov 2018, Accepted 08 Jul 2019, Published online: 20
Apr 2020

Influencer marketing actions are mostly carried out on social platforms, e.g., Facebook,
Instagram and Twitter. However, despite its increasing use, studies on this subject are still
scarce. In this research, the focus was on four essential factors related to an influencer
marketing programme, analyzed in two separate experimental studies for theoretical reasons
and methodological operability: brand control over the shared message and its commercial
orientation; and, the celebrity level of the influencer and his/her congruence with the
product/service they comment on in the post. They were also interested in the effects of these

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factors on a set of key responses by the follower with regard to the elements that form part of
an influencer marketing action: the influencer, the post, and the product/service.

• Samantha Kay,Rory Mulcahy &Joy Parkinson

Pages 248-278 | Received 23 Apr 2019, Accepted 02 Dec 2019, Published online:
31 Jan 2020
There are growing discussions of social media
influencers and their effectiveness in endorsing products. Further, recent policy regulations
are requiring social media influencers to disclose sponsored content when using a form of
native advertising. This research examined the effect of macro-influencers (high likes) and
micro-influencers (low likes) and their disclosure of native advertising sponsorship on
consumer evaluations of products. Results from a 2 × 2 experiment first show that consumers
exposed to the micro-influencer condition report higher levels of product knowledge, and
consumers exposed to the disclosure condition reported the products endorsed by social
media influencers to be more attractive. The results also show that when exposed to
microinfluencers who disclose, consumers have higher levels of purchase intentions than
when exposed to macro-influencers who do not disclose, as well as higher purchase intentions
than for posts where sponsorship is not disclosed by influencers. The important findings of
this research for theory, practice and policy are discussed.

• Jay Trivedi &Ramzan SamaORCID Icon

Pages 103-124 | Published online: 14 Dec 2019

This paper focuses on consumer electronics products and observes the comparative effect of
celebrity as well as expert influencers on consumers' online purchase intentions. The
mediating role played by brand admiration and brand attitude between influencer marketing
and online purchase intentions is tested. The moderating role played by message involvement
between influencer marketing and brand attitude is also observed. The survey method was
employed to conduct this research, and data were collected from 438 respondents. The
proposed hypotheses were tested using structural equation modeling, hierarchical regression
analysis, and Hayes process method. The results showed that there is a definite advantage in
choosing an expert influencer over an attractive celebrity influencer while planning the
marketing communications of consumer cosmetics or lifestyle products, especially for
startups. The mediating role of brand attitude and brand admiration is empirically evident.
The moderating effect of involvement is also established.

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 • Marijke De Veirman,Veroline Cauberghe &Liselot Hudders
Pages 798-828 | Received 11 Aug 2016, Accepted 07 Jun 2017, Published online:
14 Jul 2017

Findings of two experimental studies show that Instagram influencers with high numbers of
followers are found more likeable, partly because they are considered more popular and act as
a positive influence on their followers or viewers. Important, only in limited cases,
perceptions of popularity induced by the influencer's number of followers increase the
influencer's perceived opinion leadership. However, if the influencer follows very few
accounts him-/herself, this can negatively impact popular influencers’ likeability which may
not give good results as expected by the company. Also, cooperating with influencers with
high numbers of followers might not be the best marketing choice for promoting divergent
products, as this decreases the brand's perceived uniqueness and consequently brand attitudes.

• Booth and Matic, 3

Brands have always had a focus on targeting their consumers’ wants and needs. The image a
brand gains from its social media influencers helps build direct relationships with its key
consumers and encourages brand loyalty. While a brand does not have total control over its
online conversation, the direct voice of an influencer and trust that consumers have for this
individual is instilled in the brand through the two-way conversation that is established for the
product via social media outlets.

• Fredberg, 3

Social media influencers represent a new type of independent, third-party endorsers who
shape an audience’s attitudes through blogs, tweets, and the use of other social media
channels (by uploading a story or post about the product). Through sites like Instagram,
YouTube, Twitter, and Facebook, social media influencers create content promoting certain
brands with the goal of obtaining a following and brand recognition. Customer engagement
on YouTube is way greater than on any other social media platforms.

• Influencers truly serve as the ultimate connection between a brand and a

consumer. Through their candidness and openness with consumers, influencers have
high social clout and credibility (Buyer, 2016), which is what makes the phenomenon

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 so successful. Where traditional marketing targeted mostly mass audiences, it also did
not give great results as expected. But influencers have the unique ability to target
niche audiences that have until now been unreachable or unnoticed by the company.
(Ledbetter).

 Lee and Youn, 473-475

Electronic Word of Mouth (eWOM) can help one better understand the strategies that make
social media influencers so successful. eWOM refers to any positive or negative statement
made by potential, actual, and former customers about a product or company via the internet.
eWOM encourages consumers to share their opinions with other consumers. Word of mouth
is known to be one of the most credible and trusted sources of marketing. Social media
influencers are masters at eWOM. They take on the role of forming consumers’ opinions on
products and services. It is in the interest of the company as well as the influencer to keep
online conversations positive and persuade other consumers to try products in a way that
makes it feel as if the decision to make the purchase was in the interest of the consumer as
opposed to the persuasion of the influencer.

NYKAA’S TARGET MARKET

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
18-50years. It has segmented its customers through demographic, psychographic surveys.

Nykaa’s Influencer Marketing strategy

The brand collaborated with influencers with a following less than five lakh and was able to
garner a reach of more than three million in days from a media value pegged between Rs 57
lakh. Nykaa has collaborated with influencers and bloggers who played a major role in
getting 30 million visitors per month to its website. They have a lot of tie-ups with
bloggers, influencers, and they believe that they have a fair amount of reach and influence,
but clearly, Bollywood’s reach is very different. This is because the Bollywood stars have
more followers than bloggers, on Instagram.

The brand has collaborated with several bloggers and influencers in the past, but a noteworthy
campaign was the #MakeupChallenge. For the same, a sequence of videos featuring veteran
comedian and influencer Rohan Joshi was released on Instagram, Facebook and YouTube.

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Nykaa launched its first beauty celebrity brand Kay Beauty. Every major Bollywood actor
has posted about Kay Beauty and #ItsKayToBeYou ad film. From Amitabh Bachchan to
Shah Rukh Khan and Salman Khan, they have all posted from their Instagram handle.
Everyone will know about the new product launch
and it will have a good reach. To reach a wider audience, Nykaa gets Janhvi Kapoor as its
new face.

PROBLEM STATEMENT

Nykaa.com is a market leader and a preferred destination for online beauty and wellness
products in India. Even though if it is a well known brand whether it is necessary to hire
millennial as influencers in order to create a brand recognition and awareness. It will also
result in increase in sale of the Nykaa products. Since the social media space is cluttered, I
need to know whether their attempt to take Janhvi Kapoor as an influencer and to be as brand
ambassador has well worked for Nykaa or not.

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 CHAPTER- 2
RESEARCH
METHODOLOG
Y

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RESEARCH METHODOLOGY

Primary research is defined as a methodology used by researchers to collect data directly,

rather than depending on data collected from previously done research. Technically, they
“own” the data. Primary research is solely carried out to address a certain problem, which
requires in-depth analysis.

Primary research is fundamentally tailored towards gathering context-specific data that can
solve a particular problem. In addition, it allows the researcher to gather first-hand information
which can be considered to be more valid and authentic in a research environment.

With this research approach, the researcher has full control over the data because he or she
owns the data. For example, a brand that wants to obtain feedback about customer satisfaction
will employ primary research methods to gather relevant data to inform practical product
improvement decisions.

I had carried out a primary research through a survey. Conducting primary research is a useful
skill to acquire as it can greatly supplement the research in secondary sources, such as
journals, magazines, or books. One can also use it as the focus of writing project. It can also
be useful in a variety of settings including business, personal, and academic.

QUESTIONNAIRE METHOD OF DATA COLLECTION

Survey research is defined as "the collection of information from a sample of individuals

through their responses to questions" This type of research allows for a variety of methods to
recruit participants, collect data, and utilize various methods of instrumentation. Survey
research can use quantitative research strategies (e.g., using questionnaires with numerically
rated items), qualitative research strategies (e.g., using open-ended questions), or both
strategies (i.e., mixed methods). As it is often used to describe and explore human behavior,
surveys are therefore frequently used in social and psychological research. Questionnaire is as
an instrument for research, which consists of a list

of questions, along with the choice of answers, printed or typed in a sequence on a form used
for acquiring specific information from the respondents.

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If people were not aware of the brand, I have stopped the survey. That is people who are
aware of the brand Nykaa and its endorser as Janhvi Kapoor, their responses has been
recorded and evaluated.

SAMPLING

Sampling is a process used in statistical analysis in which a predetermined number of

observations are taken from a larger population. The methodology used to sample from a
larger population depends on the type of analysis being performed, but it may include simple
random sampling or systematic sampling.

In this research, I have used judgemental sampling. Judgment sampling, also referred to as
judgmental sampling or authoritative sampling, is a non-probability sampling technique
where the researcher selects units to be sampled based on his own existing knowledge, or his
professional judgment. Judgment sampling is most effective when only a limited number of
individuals possess the trait that a researcher is interested in. Sample age chosen- 18 to 25
years. This is because the target market of Nykaa is millennials. They have more knowledge
and understanding of the latest trend and style statements. These group of young people are in
line with the products manufactured by Nykaa The sample size is 115.

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 CHAPTER-3
DATA
ANALYSIS AND
INTERPRETATI
ON

DATA ANALYSIS AND INTERPRETATION

Research data analysis is the process of sifting through large samples of data, identifying valid
data and evaluating these data groups in order to arrive at objective research findings. Here,

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the researcher interprets data samples in order to establish a logical pattern that confirms or
negates the hypothesis.

Data analysis is important because it allows the researcher to select the most important data
that can suggest useful insights during the research process. While this is a time-consuming
process, it is necessary to create structure, sequence, and meaning to the research data.

To objectively carry out data analysis, the researcher must follow 3 essential steps. First, he or
she must organize the data samples then summarise and categorize the data in line with stated
parameters after which the researcher evaluates data categories to arrive at specific outcomes.

Below are some of the questions that were asked to a few of the customers i.e. 114.

1) Which brand comes to your mind when we say cosmetics?

Choosing the right makeup brands from the thousands available in the market can be a
daunting prospect. Whatever product we select, has to suit an individual needs and
preferences. And we tend to be extra careful when spending large sums of money on these
products. Because ultimately, it is a matter of looking

the best either on daily basis or on a special occasion.

Interpretation

According to data collected, from the above bar graph it can be said that for 26% of the
sample, Lakme brand comes to their mind when they hear about cosmetics. For about 23% of

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them, it is Nykaa that strikes their mind when they think of a cosmetic brand. Around 9% of
the people think about Maybelline. For the rest of them, it is Mac, Nivea, Park Avenue and
Sephora.

2) Have you purchased cosmetics online?

Interpretation

From the above pie chart it can be said that majority of the people (88%) purchase cosmetics
online rather than those who buy from offline stores (12%).

Shopping holds a very social aspect – Some people use shopping as a bonding experience
with family and friends. Shopping in-store is always an experience – it doesn’t have to be a
large experience, but it does connect shoppers to a brand on a different level than an online
store would.
One of the biggest appeals of online shopping is the
fact that it can be done anywhere. This means you can buy a new eye shadow pallet without
having to run to a store and wait in line for it. This also opens up the option of ordering
products on the go. Instead of rushing around to run errands you can quickly purchase a
product and have it delivered to you next day, while also giving you the option to order a
product at any time of day without having to wait for a store to be open.

3) What is your preferred mode of buying cosmetics?

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Interpretation

Around 52% of the sample size prefer buying cosmetic through online mode while 48% feel
that purchasing through physical stores is better.

In certain cases people prefer purchasing online since they get a lot of discount coupons and
offers which in turn reduces the amount of the product and they save time while shopping.
Products are almost always in stock – if one can’t find something at one online store they try
the next one. At a physical location one is only able to buy what is in stock currently in store,
lowering the range of choices.

Also people prefer offline, since they get a chance to test the product on their skin before
buying and they get to know the right shade of lipstick, foundation, concealer etc. They
prepare the list of items which they want to buy and then I look for it in the beauty shop. This
technique makes it easy to shop. Getting products instantly is perfect for shoppers who need a
product right away.
4) Which are the ecommerce cosmetic

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 retailers that you heard of?

Interpretation

Most of the consumers, 94% of them have heard about Nykaa brand as a cosmetic retailer. It
can be said that Nykaa has a gained a good brand recognition among the public at large.
About 79% of them are familiar with Myntra as a cosmetic retailer. 48% of them know about
Purplle and the brand name MyGlamm is known by 29% of the total sample size. Globox has
the least recognition.

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5) Identify the correct Logo of Nykaa

Interpretation

About half of the people (51%) were able to identify the correct logo of Nykaa. It can be
assumed that 46% of the people who chose “Nyka” may have confusion with the spelling i.e
“Nykaa”

The brand colour was carefully chosen to reflect a modern, playful, vibrance, that is still
rooted in Indian culture. The most important aspect of logo and tagline of a company’s brand
is to ensure that it is memorable. The logo consists of the brand name, Nykaa and its slogan
or tagline ‘Your Beauty, Our Passion’

6) What does Nykaa stand for?

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Nykaa is all about celebrating the star in each woman, and being her confidante and
companion as she embarks on her own journey to discover her unique identity and personal
style. The Nykaa woman is fun, fearless and feminine. She dreams big, has flaws, keeps a
crazy schedule and manages to look fabulous through it all. It stands for a women’s beauty
and her style statement.

Interpretation

More than half of the people(55%) and 14% think that Nykaa stands for Beauty and wellness
and style statement respectively. They are somewhat correct in their opinion in identifying the
brand personality of Nykaa. Whereas other feel that Nykaa is all about collection of products,
high quality cosmetics and competitiveness.

7) Of the choices listed, which best describes Nykaa's makeup style?

The choices given are on the y-axis while the number of people is on the x-axis.

List of choices given are- Trendy, Natural, Glamorous, Feminine and Retro.

Interpretation

62% of the people are of the opinion that Nykaa's makeup style is trendy. Nykaa sells
products that is trending and as per the consumers buying needs. 46% of them believe that by
applying Nykaa’s makeup, they look glamorous. As mentioned above the Nykaa woman is
fun, fearless and feminine. Their makeup style is feminine. 18% of the people were able to
identify. 31% believe that Nykaa’s style and products are natural. It is a wrong statement
made by them.

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8) Which of the following is a celebrity endorser for Nykaa?

Interpretation

Majority of the people(87%) are aware that Janhvi Kapoor is the celebrity endorser for
Nykaa. Choosing a brand ambassador is a critical decision in advertising and it seems like
Nykaa has made a good pick. Janhvi emerged as someone who is talented, confident and
determined in whatever she does. With her, Nykaa wants to empower and encourage Indian
females to have a unique identity by focussing on personal goals. She will communicate
Nykaa’s unique identity with the best of beauty products along with engaging content to
excite and indulge beauty enthusiasts across India.

9) I think Janhvi Kapoor is a style diva

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Interpretation

It is the truth that Janhvi Kapoor is a style diva. More than half of the people, 65% believe the
same.

Janhvi believes in the maximisation of fashion. She enjoys going for the full look—from the
cosmetics, accessories to shoes, everything should stand out. She chooses fashion and style
over comfort and loves sequins and heavily embroidered garments.

10) I think of buying Nykaa products as Janhvi Kapoor is endorsing it on social media

Interpretation

Through endorsing a celebrity, marketers actually excites their consumers by showing them a
very admirable and famous face and succeeded in creating a demand because through this
tactic, marketers are also increasing the recall value of their brand which positively creates an
impact in the consumers buying behavior. In this survey the above statement stands false. It
seems that there is less influence of celebrity endorsement on consumer purchase decision of
buying Nykaa products.

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11) Personality of Janhvi Kapoor suits the brand

Interpretation

Exactly 64% of the people believe that personality of the Nykaa’s brand embassador, Janhvi
Kapoor is in line with the brand.
She is known for her own style of dressing outfits –
be it at the airport, gym, family functions or others. This makes her a perfect fit for Nykaa and
Janhvi’s favourite products from Nyka will be available in the ‘Janhvi Loves’ edition on
Nykaa.com and in stores soon. Janhvi is still a pretty fresh face in the film industry and she
has over 2.5 million followers on Instagram. We all the power of Instagram when it comes to
promoting products and when the brand is fashion related, chances of getting good results are
more.

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 CHAPTER 4
FINDINGS AND
RECOMMENDATI
ONS

RESEARCH OUTCOME AND FINDINGS

 Consumers prefer buying cosmetics online than through offline mode.

 Nykaa has introduced some new products into its range that include

celebrity endorsements.
 87% of the people know that Janhvi Kapoor is the celebrity endorser for

Nykaa which is a good thing.

 Many of them believe that Janhvi is the style diva is a perfect fit for the

company branding.
 Nykaa offers high-end makeup and wellness brands on its website. More than 40%
of the people know about what Nykaa stands for and what is its makeup
style. Hence, we can say that Nykaa has been

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 successful in creating the brand identity and its positioning among the
consumers.
 Their marketing spends are majorly on digital.
 Makeup was a concept very distant to the common women of India and

was considered as something only used by celebrities. The celebrity

endorsement has given this thinking a new shape.
 The extensive marketing strategies deployed by the cosmetics companies
makes sure that every beauty enthusiast gets the news about beauty
products and makes a purchase.
 Nykaa has big plans for the beauty and fashion industry and is aiming to

bring the best products and services to the users at the best rate possible.
 One of the biggest decisions taken by the firm was to extend its services

from just an online mode to an omnichannel model of retail. This has

made a huge impact on how people perceive the brand.

RECOMMENDATIONS
 Nykaa has not conducted a market research within the market for past 2 years. Since
the world is dynamic and the consumers taste and preferences keeps on changing, the
company should have carried out a research to gain knowledge about their consumers
needs in terms of beauty products.
 Nykaa has rightly used eye-catching content engaging for the audiences & alluring
customers to buy their products. High-quality content is the strength of Nykaa which
it should maintain.
 Increase the financial average as it is less than the cosmetic industry average. This
might create a negative impact.
 New entries into the market can be a threat to

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the company. Hence, it should create a strong position in the industry along with a pool of
loyal customers.
 Nykaa should maintain the consistency in providing variety of products. This is
because it’s competitors might be selling the same products or its substitutes and
Nykaa may lose out the valuable customers if there isn’t any consistency.
 Nykaa is doing well in promoting its brand but the rate of promotions should be
increased. This is because its competitors, Purplle, MyGlamm etc are doing the same.
 Niche markets growing in the last few years, Nykaa can take full advantage of it. 
The population has been growing and is expected to grow at a positive rate which will
increase the sales rate of potential customers that it can target.
 There has been an increase in the number of social media users worldwide. The three
social media platforms; Facebook, Twitter, and Instagram, have shown the greatest
number of increase in monthly active users. Nykaa is doing and has a huge
opportunity to use the medium for their promotions.

LIMITATIONS OF THE STUDY

o Sample size- The sample size is small due to constraint of time. Hence it was difficult
to find significant relationships from the data, as statistical tests normally require a
larger sample size to ensure a representative distribution of the population.
o Lack of available and/or reliable data -- A lack of data or of reliable data limits the
scope of the analysis. This can be a significant obstacle in finding a trend and a
meaningful relationship. o There are some people who might not be willing to fill the
correct information.

CONCLUSION

Influencer Marketing will continue to grow, but marketing’s big trend-forecasting focus right
how is predicting how it change and evolve with consumer demand. One hyphenated word:
Micro-influencers.

Influencer marketing presents a glorious opportunity for brands to leverage the power of
word-of-mouth through personalities that consumers already follow, trust and admire While
the cast of the current Bachelorette may be

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able to reach millions of people through social media, their audiences tend to be fragmented.
And for some businesses, it may make more sense to reach a highly-targeted audience instead.

That’s where micro-influencers come into place. Micro-influencers are people with a smaller,
more loyal following that can be just as powerful with your message. These types of
influencers are not only more affordable, they’re also able to share more highly targeted
content. Small businesses, or those with a smaller marketing budget, should consider using
micro-influencers.

The best way to approach an influencer is by first building a relationship with them. Start by
following them on social media, signing up for their email address, and engaging with their
content. Get to know them inside and out. Once they have you on their radar, reach out to
them with a personal email. For top VIP’s, you’ll likely work with a gatekeeper such as an
agent or publicist.

By curating a relevant message and audience, mapping out your “best-fit” influencers and
utilizing social engagement best-practices, your inbound marketing can reap massive rewards.
Those include improved word-of mouth marketing, an increased number of expert opinions
gained and social proof. All of these factors are essential in gaining customer trust and
loyalty. Those pay the bills.

Talking about Nykaa, were a common man sees a problem, an entrepreneur sees an
opportunity to find a solution. This single line caters very well to how Nykaa came to be.
Falguni Nayar, the founder of Nykaa, was intelligent enough to see that there was untapped
potential in the online beauty industry. Back in 2012, there were not many brands or a wide
range of products available online, which the customers could buy with confidence. This is
where Nykaa saw its niche.

Falguni Nayar was someone who was very much passionate about the makeup and beauty
products and wanted to change the way Indian women thought about personal grooming. She
started Nykaa from the sheer passion of wanting to create something of her own. This fueled
her to become an entrepreneur after working for a company for over 18 years.

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REFERENCES
Books:
Philip Kotler (2010), “Marketing Management”, Koshi Jha, Pearson Education, 13 th
edition.
C.K. Kothari (2004), “Research Methodology Methods and Techniques”, Revised 2 nd

Edition, New Age International Publishers.

Websites:
nykaa.com
scholar.google.co.
in

emerald.com

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 repositorio.iscte-iul.pt owler.com
thoughtoverdesign.com/work/nykaa
socialmediatoday.com/news/
mumbaimirror.indiatimes.com
skyramtechnologies.com/blog/nykaa techstory.in
exchange4media.com bestmediainfo.com
brandequity.economictimes.indiatimes.com
blog.alexa.com/benefits-of-influencer-marketing
impulsecreative.com/blog/

APPENDIX

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Identify the correct Logo of Nykaa

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