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By working through the case and assignment questions, students will be able to conduct a marketing environmental analysis to aid strategic decisions; analyse the first-mover advantages of a retail firm and how these can be sustained; comprehend online retail business models and the challenges therein; understand the trade-offs of online/offline retail experiences specific to an emerging market’s beauty and personal care sector; conceptualize and formulate actionable growth strategies that balance the individual and collective requirements of brick and mortar and retail e-commerce environments.

The case is set in 2022, right after Nykaa – the pioneer of beauty and wellness e-commerce platforms in India makes a blockbuster stock market debut in 2021. Starting in 2012 with a disruptive online model for selling beauty and wellness products online in India, Nykaa had come a long way with expansions in physical retail and other segments such as fashion. The firm, which initially aimed to be a virtual store, is now thinking of aggressively expanding in the brick-and-mortar retail space as it opens its 85th retail outlet.

Falguni S. Nayar, founder and CEO of Nykaa, wanted to roll out 300 physical stores targeting 100 cities in India in the next couple of years. She aspired to establish Nykaa as a category leader as the “Indian Sephora” in the beauty and personal care market. Nykaa’s first-mover advantage in the online beauty and personal care marketplace worked well to establish it as a brand with positive endorsements by digital shoppers that enhanced the investment potential with potential financiers. However, the pandemic had brought every physical retailer to the online platform. Most e-commerce platforms dealing in grocery to lifestyle had added personal care products to their existing merchandise.

Additionally, several start-ups had ventured into the online marketplace. Online was a cluttered marketplace with little to no differentiation. In this bloodbath, would the first-mover advantage for Nykaa in the online space still count as a competitive advantage? Nayar was all set to expand Nykaa’s physical presence aggressively. The concern was that the beauty and personal care segment had also moved online as a function of long stay-at-home periods. In the post-pandemic times, would the customer indeed revert to brick and mortar once again? Nykaa was also into product formulations, but so was every big and small player in the space. What was the differentiated winning formula for the consumer’s heart and mind?

The case can be effectively used in foundation courses in marketing and a wide range of specialized courses on marketing management (core/foundation course), retail marketing and e-commerce/digital marketing and e-commerce for B-school learners. The complex decision points faced by an innovative e-commerce start-up firm on its road to market expansion make the case suitable for niche courses such as Marketing for Start-ups. Moreover, learners in executive MBA programs with considerable experience can benefit from the case analysis that balances a growing retail company’s long- and short-run objectives.

Teaching notes are available for educators only.

CSS 8: Marketing.

The COVID-19 pandemic interrupts the supply chain of products around the world. The supply chains of beauty and personal care products in Bangladesh are also heavily interrupted during this pandemic. While these products are perceived as essential by mass people, retailers are struggling to get the supply of the products and maintain a smooth delivery to the people. Considering such facts, the purposes of the study are to identify how the supply of retailers of these products is interrupted and how they can overcome the interruptions to ensure supply resilience.

A case study method has been used in this study. The data has been collected through interviews from 16 retailers of beauty and personal care products.

The results show that the supply of retailers of beauty and personal care products is interrupted in several ways. These include product shortage, limited delivery service, interruption of supplier payment, limited credit facility and irregularity in product delivery. To minimize the impacts of the interruptions and enhance supply resilience, retailers can undertake several strategies including intensive interactions and developing cooperation with the distributors and manufacturers, ordering bulk quantity, formulating an adjusted credit ratio and focusing on product availability over brand preference.

The context of this study is limited to the beauty and personal care products of Bangladesh. Further study can be conducted in other countries and also supply chains of other products to enhance the generalizability of the findings of this study.

Supply interruptions are identified, and strategies are suggested to ensure the supply resilience of retailers of beauty and personal care products. If proposed strategies are implemented by retailers of these products, supply interruptions can be minimized.

The study contributes to the knowledge of the retail supply chain during a pandemic. It also contributes to the supply management and resilience of retailers. As the context is a developing country, the study also contributes to the literature on developing countries.

The Dudley Beauty case illustrates a contemporary branding, management and marketing challenge facing many companies that are 50 plus years old. Movahhed (2016) highlights the six elements to consider during brand strategy: the target audience, the brand promise, brand perception (past, current and future), brand values, brand voice and brand positioning. The times have changed with changing macroenvironmental factors including political, economic, sociological, technological, legal and other environmental (PESTLE) changes that affect a business but which the business does not directly control.

The case is based upon an interview with Dudley Beauty CEO and President Ursula Dudley Oglesby and secondary sources.

The “A Makeover for Dudley’s Q+” case explores the challenges of a second-generation textured hair care and personal care company in the direct selling channel as it faces an aging market and changing business and economic environment. A Black-owned company, begun in 1967 by her parents, Dudley Beauty is led by the founders’ daughter, Harvard College and Harvard Law School-educated, Ursula Dudley Oglesby. At over 50 years old, the company has continually created new textured hair products and has high brand awareness among older Black consumers but has not adequately addressed changing hair trends and shifting communication preferences of younger consumers. The company is at a critical point needing to reach a younger, larger market to survive. The business situation supports marketing, management, strategy, and/or entrepreneurship undergraduate students in understanding how macroenvironmental forces and internal structures affect businesses.

This case is intended primarily for use by undergraduates in a variety of courses. It is suitable for courses in Principles of Marketing, Entrepreneurial Marketing, general Entrepreneurship and Marketing Strategy courses covering topics such as direct selling, the role of environmental factors in business, rebranding efforts using digital and social media marketing and women/minority business owners.

The purpose of this paper is to examine the dual influence of traditional Chinese and national Singaporean cultural values on the attitude towards skin beauty and the purchase intention relating to skin care cosmetics among Chinese Singaporean women. It aims is to investigate how ethnic and national cultures might interact to influence the attitude towards skin beauty and hence the willingness to buy skin care products.

A survey of 370 Chinese Singaporean women was conducted to test the proposed links. The study adopts an empirical approach using structural equation modelling.

Both traditional Chinese and national Singaporean cultural values impact the attitude of Chinese Singaporean women towards skin beauty and their willingness to buy skin care cosmetics. The components of the traditional Chinese values (Buddhism, Daoism and Confucianism) and national Singaporean values were found to have differing impact on the attitude towards skin beauty and the purchase intention of skin care cosmetics among Singaporean women. Confucianism was found to have a very strong impact on skin fairness and whitening, national Singaporeans' values were found to have a strong impact on skin anti‐ageing, and Buddhist values were found to have moderate impact on attitude towards skin smoothness and skin fairness and on the willingness to buy skin smoothening and skin whitening cosmetics.

Even though the sample can be considered large, given the number of variables in the model, it would be wise to rely on a larger sample. In addition, the research was about specific cosmetics products, namely those related to skin care. It is judicious to extend the analysis to other categories and types of products. For expatriate ethnic groups, it is recommended that marketers think about the interaction between their traditional values and the values of the host country, as these have dual effects on their attitudes and hence on their buying intention. The interaction between these values is not static across products. It varies in size and combination across types of attitudes and products.

Traditional ethnic and national cultural values have differing impact in terms of significance and size on the attitude towards face beauty. Hence, marketing actions such as positioning and advertising should be customized accordingly, to target at these values in an attempt to influence attitude, and hence purchase behavior. Attitude plays a mediating role between cultural values and purchase intention. Influencing consumers' willingness to buy involves influencing their attitudes.

Few works have surveyed the dual influence of national and ethnic values on a specific ethnic subgroup in Asia. To the authors' knowledge, there no previous research has been conducted for Singapore. This paper demonstrates that it is important for the marketer to take into account Singaporeans' national and ethnic values while marketing to them.

After completion of the case study, the students will be able to examine the service failures faced by Nykaa; propose a resolution to the service failures faced by Nykaa through service recovery strategies; analyse the service quality gaps faced by Nykaa and propose strategies to bridge the gaps; learn and comprehend more about business models in e-commerce; and evaluate the e-commerce business models for deciding the best fit for Nykaa.

“Nykaa” was the brainchild of Falguni Nayar, who was an IIM alumna and had worked with the Kotak Mahindra Group for nearly 20 years as a venture investor and merchant banker. After representing the group’s global operation in the UK and the USA, she became the head of the institutional equities division. In 2005, she was the Managing Director of Kotak Mahindra Bank’s project. Nayar had reached the pinnacle of her career, but something was troubling her. In 2012 when Nayar noticed anomalies in India’s beauty and personal care market, her goals were realised. Unlike in other nations such as Japan or France, the availability of beauty products in India was limited, despite significant demand, owing to product unavailability in many areas. Nayar founded “Nykaa”, an online portal for multi-beauty, personal care and well-being items that also later branched out into fashion. However, after 10 years of its establishment, Nykaa was facing challenges regarding services outages, casting doubts over Nykaa’s business model practiced by it for the past 10 years.

This case is intended for discussion in the undergraduate, postgraduate management courses and executive MBA courses with marketing specialisation, services marketing and strategic marketing.

Teaching notes are available for educators only.

CSS 11: Strategy

In response to the rapid growth of the cosmeceutical industry, this study aims to investigate young female consumers' confidence in cosmeceuticals and the perceived competency of cosmeceutical product advertising.

An online survey of 224 young female participants was recruited from an online national young consumer panel from Zoomerang. This group of participants mirrored the characteristics of the largest segment in the cosmeceutical market in the USA.

The results suggest that the perceived information utility of cosmeceutical product advertising is the most significant factor in engaging young female consumers' interests and desire to try cosmeceuticals. Moreover, young female consumers' self‐evaluation on body esteem, their perceived effectiveness of product claims, their interests in reading such advertising, and their attitudes toward advertising jointly affect their likelihood to take cosmeceutical products. Not surprisingly, self‐evaluation on body esteem predicted a negative influence on product purchase intention. As their self‐evaluation on body esteem increases, the likelihood to purchase cosmeceuticals decreases.

The study adds insights on a fast‐growing, but understudied, product category, cosmeceutical products, to the research stream and expands the knowledge on the information utility of cosmeceutical product advertising on young female consumers.

The clean beauty phenomenon is gaining momentum and beauty brands are getting creative with on-pack sustainability claims. With the increasing focus on sustainability from both brands and consumers, sustainability communication has the potential to raise the profile of sustainable production and consumption. Further attention is needed on the creative approach behind on-pack sustainability marketing communications as companies no longer focus on single eco labels but instead use a bundle of claims to advertise their commitment to sustainability which finds consumers confused and brands open to accusations of greenwashing. This chapter explores on-pack sustainability communications in the beauty industry through the lenses of creative marketing communications which need to be both original and appropriate. This study contributes to the longstanding debate on the role of sustainability claims in marketing communications and addresses the role of on-pack sustainability claims design and creativity.

Advancement in technology has increased the use of social media among Internet users. People are on social media all day and brands cannot miss this opportunity to turn these users into potential customers. The purpose of this research paper is to identify the prominent social media platforms in Indian beauty and wellness industry and to establish dimensions of social media activities.

This is a qualitative study in which in-depth interviews were conducted with owners and managers of beauty and wellness centres, who use social media for promotion of their business.

This study establishes 5M's of social media activities (Motives, Media, Management, Merits and Metrics) that play a major role in social media promotion. It also identifies that Facebook and Instagram are prominent social media platforms for this industry, followed by Snapchat, YouTube and LinkedIn.

Being a qualitative study, it is exploratory in nature and confined to beauty and wellness centres only, thus, findings cannot be generalised. Research implication is that social media still preserves its popularity over traditional media for marketing purposes.

The results of the study are useful for business owners, promoters and marketers, who are struggling to effectively use this low-cost marketing tool.

The result of the study are useful in providing awareness and the importance of social media in promoting benefits to the society.

Social media is extensively used for promotion of beauty services but there are very few theoretical studies on the same. This paper provides rich understanding about how to use social media effectively using 5M's.

Known for its motto “All Ages, All Races, All Genders,” MAC cosmetics reflects the brand’s commitment to inclusivity and diversity. It has been at the forefront of promoting a wide range of skin tones, ethnicities and gender identities in the beauty industry. If you have ever wondered about the secret behind the success of this mega-brand in the beauty industry, this case study aims to provide a comprehensive overview of the company’s history from its early days to the present and discusses the factors that might build or ruin a brand. Moreover, players in the industry will need to adapt to changing consumer preferences, focus on sustainability and leverage digital technologies to remain relevant and capture market opportunities. Therefore, would it be wise for MAC cosmetics to take forward their expansion plans in India, and what is the motivation behind the expansion? Alternatively, would the implementation of a proactive strategy for product innovation, combined with a stronger presence, result in a more viable and sustainable proposition?

This study relies on online resources for data collection. The data was collected from the secondary sources in the month of November and December 2022. Moreover, the information provided in the case study was validated and supplemented via using different websites, including the company’s website and social media profiles.

The commitment shown and the roles played will have a lasting impact on the society. Additionally, student will be able to learn when and how to seize opportunities, as well as how to manage obstacles that will arise in their entrepreneurial journey. Through this case study, they will be able to learn a variety of business strategies that can be implemented in emerging markets. The conclusion of the study provides the obstacles and hurdles faced by the industry in expanding in the Indian market. The potential solutions were made through providing information for the students, academicians, entrepreneurs and others to compete in the Indian market situation.

This is a real-world case that provides the audience with first-hand experience to comprehend the event and apply their knowledge to form a conclusion and is also effective for decision-making in the dynamic environment of the present day. However, the authors provide a comprehensive overview of the company’s history from its early days to the present and discuss the factors that might build or ruin a brand.