Introduction
The Indian beauty care industry had been growing with the blinding pace in a few years and that has been made possible with the penetration of the beauty care products and services. The change in the lifestyle of Indians has led to the increased use of the beauty care products and services. For instance the increase in education and working women in the corporate sector, proved to be the booster for the rapid growth in the industry.
Kaya clinic was launched having the objective of delivering the services for the flawless skin and the skin that looked naturally very good. It was made possible through the latest technology and experienced staff of dermatologists. In 2011, Kaya had a network of 81 clinics which were spread across 26 cities across India. Whereas, Kaya also had 18 highly successful clinics being operated in Middle East and 2 clinics in Dhaka in Bangladesh. In May 2010, Kaya was successful in gaining the business of Singapore-based Derma (Derma Rx). Kaya also expanded its portfolio by increasing the services offered at its clinics. The new services included the lip enhancement, fairness and hair removal. There were a number of services being offered at the clinic such as skin beauty, skin concerns, and anti-aging and laser hair reduction. The product range included 40 skin, hair and body products for women and men.
Kaya clinics were designed and supervised by a team of over 250 dermatologists. The service was gone through the skin specialists, who went through the specialized training of the skin treatment techniques. The price of services was starting from the INR 1250, whereas Kaya served over 600,000 happy customers. Kaya took special measures for improving the training facilities of the clinic in a way that the training programs and workshops were initiated to train the practitioners and dermatologists. There was a program initiated once in a six month, to increase the knowledge of the staff and keeping them up-to-date with the latest skin care techniques and also providing quality services to the customers.
Problem Statement
The challenge for Kaya was realizing the insights through differentiating the first time customers and the loyal customers of the Kaya beauty parlor, which can be useful for the company in realizing the profits and growth. Kaya was facing issues which were relevant to its competitive strategies. Whereas, there was a challenge for Kaya management in identifying the kind of insights from the customers' data, in order to develop itself in the emerging market in which the brand demanded to be diffused.
Case Analysis
Key Issues
Marico, identified the emerging needs of the market in the beauty and care industry. The realization of looking good and also feeling good was increasing among Indians. Therefore, the first Kaya Skin Clinic was launched with the objective of delivering the services for flawless skin and providing solutions through the latest technology. Kaya Skin Care was the wholly-owned subsidiary of Marico. It had opened many clinics across India and many cities.
Marico launched Kaya Skin Clinics, and it provided the gateways for entering into the branded services business for Marico. It was a big challenge for Marico, as it was the first time that a big corporation was branding the service of this kind. The beauty care industry involved many products like hair, shampoos, oil, cosmetics and fragrances, whereas the skin care segment was smaller than the personal care segment. So targeting the small segment was a very big challenge for the organization.
With the increase in technology and advancements in the medical treatments of the skin, Marico was facing different issues regarding the Kaya clinics. The main issue was that the latest technology was to be implemented in its clinics for the skin treatment and the services were supposed to be of a standard to increase the loyalty of the customers. The changing trend was the issue for Kaya clinics as the Indian women were quite changed and they were feeling good by the use of high performance skin creams. So providing them the facilities in the clinics accordingly was a challenge for Kaya.....................
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India was an emerging market that is witnessing a radical change in lifestyle and spending patterns of consumers. There has been a significant change (after liberalization) in terms of how consumers look at their self-esteem. The impact of the western way of life and through the media, the availability of discretionary income and the impact of the reference group calls are one of the important aspects that have created interest in products and services related to beauty consumers. Clients were used branded creams and lotions, and some of the proposals currently advertised with a strong symbolic appeals associated with increased self-esteem. Kaya also a brand in the category of beauty care. However, the proposal to deal with the medical brand anchor of services designed to enhance the look of customers. The brand opened a new dimension of beauty services, which has been associated with more up-market and the state of modern hospital, where customers have chosen these services under the supervision of doctors who specialize in cosmetic surgery / procedures. Will there be a difference between the novice users of the beauty salon and loyal customers come up with ideas that Kaya would find helpful? Issues related to management services, as well as customer value and customer loyalty are related to Kaya competitive strategies. Although clients beauty can be demographically different from the customer Kaya community benefits associated with the beauty services are the same. The point about how the brand that created the category would be useful to involve the idea of brand loyalty with related category, which does not compete with them directly. Such measurements of competitive education, perhaps unique to emerging markets such as India. "Hide
by Ramesh Kumar, Ande Teja, Syed Hussain Source: Indian Institute of Management, Bangalore 9 pages. Publication Date: Aug 01, 2012. Prod. #: IMB357-PDF-ENG
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