ISSN (Online) 2581-9429

IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

A Study on Social Media Marketing of NYKAA

Products and its Impact on Consumers
Ms. Simran Motwani1 and Prof. Kiran Nagare2
Research Scholar, MAEER's MIT Arts Commerce and Science College, Alandi (D), Pune, India1
Assistant Professor, MAEER's MIT Arts Commerce and Science College, Alandi (D), Pune, India1

Abstract: Technological evolution has recognized the potential of online social media channels in building
strong brand reputation. Companies are leveraging analytical methods like Sentiment analysis to monitor
the brand reputation. With an increase in digitalization, E-commerce has become the need of the hour and
has compelled many industries to go digital. Cosmetic Industry being one, rightly leveraging the use of
digital technologies to tailor its products based on consumer’s demands. This study is based on an Indian
cosmetic brand, Nykaa. Three diverse social media platforms are utilized for data collection and gain
insight on customer reviews by conducting sentimental analysis on the user-generated reviews thereby,
further concluding the impact over brand reputation.

Keywords: Nykaa

I. INTRODUCTION
Social networking websites have upgraded the delivery of information to customers, shifting from a traditional one-to-
many to one-to-one communication, thus becoming more customer-centric.
Such real-time engagement in the digital world works the same as face-to-face communication, thereby enhancing the
speed of marketing operations.
We spend most of our time attached to our devices surfing through the internet generating a tremendous amount of data
that can be utilized to understand a customer’s perspective towards a brand, product, or service.
Reviews and ratings by customers are playing an important role for the companies to know where their product stands
and finally to predict the purchasing decision of the customers.
Monitoring Social media activities is a process to stay connected to our customers and with the metrics generated, we
can measure the customer sentiment towards services offered.
Sentiment Analysis helps to interpret and classify emotions and opinions into positive, negative, and neutral sentiments
within text data, using Natural Language Processing.
Analysis of feedback and comments through social media can help businesses to maintain Customer Relationship and
enhance Customer Experience.
It can also be useful while introducing a new product or service in the market, by doing competitor analysis where they
stand by making an informed decision. Internet has now become a mainstream platform for conducting business.
People are avoiding visiting any physical store as everything is easily accessible virtually and at very good deals.
Cosmetic being a nascent industry of this e-commerce business is gaining a lot of consumer interest and is tending to
grow at a faster pace.
These businesses are making proper use of social media by keeping their customers updated and providing timely
replies to the frequent questions asked.
Consumers are actively participating in discussions and sharing knowledge with other consumers about the products or
services.
This active behavior is changing the marketing approach of companies as consumers are invading the marketing sphere
of many companies.
Social media can be a powerful tool for any organizational can increase your visibility. Enhance relationships, establish
two-way Communication with customers, provide a forum for feedback, unimproved awareness and reputation of the
organization. For these reasons, social media websites have become an important platform for organizations.
Copyright to IJARSCT DOI: 10.48175/568 113
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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

The comparison of social media advertising channels as whole and tradition channels advertising as a whole result in
favor of social media advertising channels.
On every aspect of the advertising respondents agree that social media advertising channels are better than that of
tradition media advertising.
Social media allows exchange of ideas, opinions, stories and facts among individuals who may be living in different
parts of the world.
Facebook and Instagram are among the most popular social media platforms. These platforms often offer user-
generated content and individualized accounts.
There are currently 3.78 billion users of social media worldwide and by using social media brands can target this huge
audience and generate significant leads.

1.1 OBJECTIVES OF THE STUDY

 To study social media branding of Nykaa products.
 To analyze the effect of media communication on buying behavior with respect to Nykaa.
 To check the feasibility of the use of social media marketing of Nykaa products.
 To study various factors contributing to consumers’ purchases on the social media platform

1.2 SCOPE OF THE STUDY

The study focused on how social media marketing influences consumer buying behavior for Nykaa products. This study
is being taken up to better understand the contribution of the beauty industry to the development of the country and to
evaluate the strategies of these companies with the help of social media marketing.

1.3 RESEARCH METHODOLOGY

Research methodology is widely used as a way to solve the research problem. Research methodology refers to various
steps adapted by the researcher to study the problem with objectives.
Research design: The research design is descriptive as it is based on a survey conducted among Social media users.

Data collection:
 Data is collected through both primary and secondary sources.
 Primary data is collected by conducting surveys using questionnaire method.
 Secondary data is collected from journals, newspapers, websites etc

Sampling: In present study, “Convenient Sampling Method” is used among various publics.

Sample Size: 50 respondents are chosen as a sample size for the study.

II. REVIEW OF LITERATURE

Anannya padhi and Antra Sharma (2022)
A major contribution to the GDP of the economy comes from the businesses which constitute Small and Medium
Enterprises (SMEs) run by the residents in these parts.
Initially, the marketing mix of these SMEs revolved around the traditional practices, however, with the introduction of
Digital India and the wave of COVID-19 pandemic, a shift towards adopting social media marketing (SMM) strategies
is evident.
Therefore, this paper attempts to study the impact of SMM strategies on SMEs. Although SMEs themselves are a part
of Sustainable Development Goals (SDGs), they help immensely in attaining the rest of the SDG goals such as food
security through employment generation, SMEs should try to extract the benefits that SMM has to offer for their growth
and optimal outreach of businesses.

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

Dr. B. Ravi and Mr. S. Sujayakumar (2021)

The word of marketing has undergone unimaginable changes in the last century. The level of transformation marketing
practices, tools and techniques have undergone, is beyond one’s wildest imagination. They need to know what drives
are needed in order to ensure an effective outcome and to build successfully promotional campaigns things in line with
their fan’s needs.
The advantages of social media marketing speak for themselves by generating a high degree of brand loyalty and
reducing the company’s contact gap with its customer.

III. COMPANY PROFILE

Company Profile
Nykaa is an Indian e-commerce company headquartered in Mumbai. It sells beauty, wellness and fashion products
through its website, mobile app, and over 100 physical stores. In 2020, it became the first Indian unicorn startup headed
by a woman.
Nykaa sells products which are manufactured in India as well as internationally. In 2015, the company expanded from
online-only to an omnichannel model and began selling products apart from beauty. As of 2020, it retails over 2,000
brands and 200,000 products across its platforms.

History
In April 2012, Falguni Nayar, a former managing director at Kotak Mahindra Capital Company, founded Nykaaas an
ecommerce portal curating a range of beauty and wellness products. The brand name Nykaa is derived from
the Sanskrit word nayaka, meaning actress or "one in the spotlight".The website was first launched around Diwali 2012,
and was available commercially in 2013.
In 2015, the company expanded from online-only to an omnichannel model and began selling fashion products.
In 2018, Nykaa launched Nykaa PRO. It is a premium membership program that provides users special access to
professional beauty products and offers on the Nykaa app. In 2018, the company also launched an online beauty
forum called Nykaa Network.
In March 2020, Nykaa raised ₹100 crore (US$13 million) from Steadview Capital at a valuation of US$1.2 billion,
making it a unicorn startup.This was followed by another tranche of ₹67 crore (US$8.4 million) funding by Steadview in
May 2020.
In October 2020, the company launched Nykaa Man, India's first multi-brand ecommerce store for men's grooming.The
company expanded into fashion by launching Nykaa Design Studio, which was renamed to Nykaa Fashion.

Copyright to IJARSCT DOI: 10.48175/568 115

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

In November 2020, global asset management firm Fidelity invested in the company through a secondary sale of shares
from an existing equity investor.
In December 2020, Nykaa Fashion launched its first store in Delhi, making the fashion business omnichannel.
Nykaa opened its initial public offering (IPO) on 28 October 2021. The IPO raised ₹5,352 crore (US$670 million) at a
valuation of US$7.4 billion. Nykaa was publicly listed on the NSE and BSE on 10 November 2021, and its price rose by
89.2% on opening day, valuing the company at nearly US$13 billion.Founder Falguni Nayar, who owned a 53.5% stake
in the company, became India's wealthiest self-made female billionaire on the listing day.

Operations and Services

Actress Janhvi Kapoor has been Nykaa's brand ambassador since 2018.
Nykaa follows an inventory-based model with warehouses in Mumbai, New Delhi, Pune, Haryana, Kolkata and
Bangalore. In 2020, in addition to its primary ecommerce business, it has an offline presence via 76 brick-and-mortar
stores across the country. It claims to have over 200,000 products across 2,000 brands.
It has three offline store formats called Nykaa Luxe, Nykaa on Trend and Nykaa beauty Kiosks. The Luxe format
features international luxury beauty brands such as Huda Beauty, MAC, Dior, and Givenchy along with Nykaa Beauty,
the in-house collection of beauty products.
The Nykaa On Trend format has products curated by category basis their popularity. In India, Nykaa is the only retailer
that sells international brands like e.l.f, Charlotte Tilbury, Tonymoly, Becca, Sigma, Limecrime, Dermalogica, and
Murad as well as national bestsellers like Soulflower, Lakme, plum.

House of Brands
Nykaa has a series of in-house brands within beauty and fashion. Some of them include:
Nykaa House of Brands – Nykaa Naturals, Nykaa Cosmetics, Kay Beauty
Nykaa Fashion – Nykd by Nykaa, 20 Dresses, RSVP, Mondano, Likha,Pipa Bella
In 2015, Nykaa launched its collection of in-house beauty products via Nykaa Cosmetics and later expanded it across
categories of Eyes, Nails, Face, Lips.
The Nykaa Naturals portfolio is a collection of skincare and personal care products.
In early 2019, the brand launched its Wanderlust Bath & Body collection, and later in the year introduced a beauty line
with designer Masaba Gupta, Masaba by Nykaa.The same year, it launched its first celebrity partnership brand, Kay
Beauty, with actress Katrina Kaif.

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

Acquisition
In May 2019, Nykaa acquired 20Dresses.com, a private women's styling platform.
In 2021, Nykaa Fashion acquired the India fashion jewellery brand, Pipa Bella and the Indian skincare brand, Dot & Key.
In 2022, Nykaa acquired an 18.51% stake in Indian skincare brand Earth Rhythm.It then completed the 100% acquisition
of lifestyle content platform Little Black Book (LBB).

TYPES OF NYKAA PRODUCTS

 Foundation
 Lipstick
 Nail paint
 Face Wash
 Deodorant Spray
 Essential Oils
 Kajal
 Eyeshadow Palette
 Primer
 Eyeliner

VISION AND MISSION

Vision of Nykaa
 Bring inspiration and joy to people, everywhere, every day.

Mission of Nykaa
 To create a world where our consumers have access to a finely curated, authentic assortment of products and services
that delight and elevate the human spirit.

NYKAA - MARKETING STRATEGY

Nykaa has stood as one of the most competent players in the beauty and fashion space due to its robust marketing
strategy, which is carved with digital marketing at its core.
The brand not only focuses on marketing in the Tier 1 cities but also pitches all the potential customers from the Tier 2,
3, and 4 cities.

 Social Media Marketing

Nykaa has 4 social media accounts for the marketing of its in-house brand My Nykaa, Nykaa beauty for the promotion of
its e-commerce platform, Nykaa fashion to promote its e-commerce apparel store, and Nykaa beauty book, which helps
the audience with numerous beauty and makeup tips.
The company has its accounts on diverse social media platforms to extensively promote the brand on social media. The
brand is also engaged in posting the content created by its influencers via its social media handles. Therefore, influencer
marketing plays an important part in the promotion of Nykaa.

 You tube Marketing

Nykaa has a full-fledged you tube marketing strategy. The brand refrains from focusing on selling its products via its you
tube channel but concentrates more on offering consumable content, including beauty, personal care tips, makeup hacks,
and much more, to its target audiences.
Furthermore, the brand also runs you tube ads from time to time to target its customers. Thus, the you tube marketing of
Nykaa is fueled with quality content that keeps the audience engaged and relevanst ads.

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

 Event Marketing
Event marketing is another important marketing strategy that Nykaa leverages to pitch the target customers at the right
time and right place. Nykaa has successfully sponsored the popular femina Miss India event, one of the largest beauty
events in India on a number of occasions, and is still tied to the same event.
SWOT Analysis
STRENGTHS:
 Rising Net cash flow
 MACD Crossover Above Signal Line
 Company with Zero Promoter Pledge
 Strong Momentum: Price above short-, medium- and long-term average.
 Company with No Debt
WEAKNESSES:
 Negative Breakdown First Support.
 Major fall in TTM Net Profit.
 Degrowth in Quarterly Revenue and Profit in Recent Results.
 Declining profits every quarter for the past 2 quarter
OPPORTUNITIES:
 Brokers upgraded recommendation or target price in the past three months.
 RSI indicating price strength
THREATS:
 Profit to Loss Companies.
 Increasing Trend in Non-Core Income

IV. DATA ANALYSIS & INTERPRETATION

Table 1: Showing Gender of Respondents
Sr.No. Gender NO. OF RESPONDENTS PERCENTAGE
1 Male 12 24%
2 Female 38 76%
TOTAL 50 100%

INTERPRETATION
The above table shows that (24%) respondents were male and (76%) respondents were female.

Chart Title
80%
70%
60%
50%
40%
30%
20%
10%
0%
Gender

Male Female

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

Table 2: Showing Social Media Rating of The Respondent.

FACTORS NO. OF RESPONDENTS LIKERT SCALE TOTAL SCORE
Excellent 15 4 60
Good 23 3 69
Average 10 2 20
Poor 2 1 2
TOTAL 50 151

Chart Title
25

20

15

10

0
Execellent Good Average Poor

(Source: Primary data)

INTERPRETATION
Likert Scale = ∑(fx)/Total number of respondents
= 351/120
= 2.92

INFERENCE
Likert scale value is 2.92, which is greater than 2, so the respondents rating was good.
Table 3: Frequency of purchase from Nykaa online portal
Gender No. of respondents Percentage
Male 12 24%
Female 38 76%
Total 50 100%

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

Chart Title
80%

70%

60%

50%

40%

30%

20%

10%

0%
Gender

Male Female

Table 4: What type of product are preferred to buy from Nykaa?

Male Female Number of respondents %
Personal care 6 31 37 74%
Home and kitchen 2 6 8 16%
Clothing and Accessories 12 38 50 100%
Others 3 7 10 20%
Total

Chart Title
40

35

30

25

20

15

10

0
Personal care Home and kitchen Clothing and Accessories Others

Male Female

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

Table 5: How satisfied are customers from the purchase of Nykaa products?
No. of respondents
Excellent 21
Good 17
Average 10
Bad 2
Poor 0
Total 50

No. of respondents

Excellent Good Average Bad Poor

Table 6: How often customers see Nykaa ads on social media?

No. of respondents
Very often 30
Often 12
Not much 6
Never 2
Total 50

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

no.of respondent

Very often Often Not much Never

Table 7: What type of branding attracts customers the most?

No. of respondents
Discounts 13
Variety of products 22
Quality of products 8
Offers 7
Total 50

No. of respondents

Discounts Variety of products Quality of products Offers

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

Table 8: Mode of awareness about Nykaa.com

No. of response
Social media platforms 35
Word of mouth 16
Search engine (google) 28
Ads 50
Total 129

No. of response

Social media platforms Word of mouth Search engine(google) Ads

V. FINDINGS, CONCLUSION & SUGGESTIONS

FINDINGS
Students and salaried persons are most frequent users of Nykaa.
Word of mouth was more influential in promotion as many people were made aware by their friends and family when
customers recommend this website to them.
Highly discounted products got out of stock quickly, since customers purchased it assoon as they could when they see
high discount on good featured product.
The services provided by Nykaa are good and even more scope of development isthere for increasing the customer
strength.
Digital marketing techniques like socialmediabranding, search engine marketing, links providing other website and
advertisement also functioned well for promotion of this website
Fast delivery is one of best service Nykaa is providing.
Different payment options available in Nykaa made customers more satisfied andcomfort for paying while purchasing
product.
Most of customers have good experience with Nykaa while purchasing products.
Most of them are satisfied with the services of Nykaa and so that they succeed inretaining the customers.

SUGGESTIONS
The company Nykaa can pitch its beauty products for men which apparently do not have a great reach amongst the
consumers.

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

As people are being more conscious about their skin, they are shifting to herbal products. Nykaa can promote its herbal
products in order to increase its consumption which leads to increase in sales.
The company can avail gift vouchers to its potential customers and new customers so that they can attract them to repeat
their purchase.
Out of stock items can made available as soon as possible and intimate the neededcustomers
Should look for International/ Overseas markets or Neighbouring Countries

VI. CONCLUSION
The study reveals that main reason for growing importance of online marketing is the increasing literacy about internet
among people. They have identified that internet is truly advantageous through which they can serve their various
purposes mainly social networking, online shopping & media sharing (photo, music, video). This efficacy of internet has
intensified their tendency of being online. Today’s consumers strongly feel that every company must use this efficacy to
strengthen its marketing efforts. So that they will get motivated to use onlinemarketing with the intent of getting access to
exclusive content about the brand and getting discount and sharing their feedback about brand with the advertiser. With
the advent of internet technology, consumers’ preference towards traditional marketing tools has decreased. The major
benefits of online marketing are its capability of interaction between consumers and advertisers followed by availability
of wide range of information & ease of shopping. These benefits make online marketing superior than traditional
marketing. But at the same time consumers are susceptible about the user-safety side of internet. They feel that online
marketing is unsafe as it may lead to increase in frauds & privacy issue. Social media marketing is truly an emerging
marketing tool and if properly used it can gain more audience than traditional marketing.

BIBLIOGRAPHY
[1]. www.google.com
[2]. www.en.m.wikipedia.org
[3]. www.nykaa.com

QUESTIONNAIRE
Gender of the respondent
Male Female Not applicable

What is the frequency of purchase from online shopping portal?

Very often Often Not much Never

How often do you purchase from Nykaa online shopping portal?

Very often Often Not much Never

What type of product you prefer to buy from Nykaa?

Personal care Home and kitchen Clothing and Accessories Others

How satisfied are you from the purchase of Nykaa products?

Excellent Good Average Bad Poor

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 ISSN (Online) 2581-9429
IJARSCT
International Journal of Advanced Research in Science, Communication and Technology (IJARSCT)
International Open-Access, Double-Blind, Peer-Reviewed, Refereed, Multidisciplinary Online Journal
Impact Factor: 7.53 Volume 4, Issue 3, April 2024

How much will you rate Nykaa?

5 (excellent) 4(good) 3(average) 2(bad) 1(poor)

How often you see Nykaa ads on social media?

Very often Often Not much Never

What type of branding attracts you the most?

Discounts Variety of products Quality of products Offers

Mode of awareness about Nykaa.com

Social media platforms Word of mouth Search engine (google) Ads

In which social media platform, you see most of the Ads

Instagram Facebook Twitter others

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