TWOS MATRIX

INTERNAL FACTORS
STRENGTHS WEAKNESSES

1. Extensive product range 1. Poor waste management

2. Strong social media presence 2. Ineffective customer care
3. Strong financials 3. Lack of local business in tier 3 cities
4. Innovation focused
EXPLOIT (SO) BUILD (WO)
OPPORTUNITIES S1 W1
1. S1O1- Increasing reach of
1. Emergence of e- existing and new products to 1. W1O1- Creating Waste management
commerce & new consumers. system on the website Like using an
networking 2. S1O2-Segmentation, application to track the generation
2. New green technology Targeting, Positioning of its waste.
3. Customer lifestyle 3. S1O3- Segregating different 2. W1O2-Creating a new range green
4. Government Incentives product ranges according to beauty-based products with
towards environment preference of customers renewable raw materials
safety 4. S1O4-Leveraging govt. new (Deinococus bacteria).
5. Shifting business environmental initiatives to 3. W1O3 - More Green packaging
model (online + offline) get clearances on the supply 4. W1O4 – Active participation in govt
of products to the waste management schemes
consumers. (example - The Ministry of
5. S1O5 – Displaying and Environment & Forests (MoFE) is
Showcasing of wide range of implementing a Scheme to provide
products in Nykaa retail guidance to companies for setting up
outlets. of treatment, disposal and storage
S2 facility for hazardous and integrated
6. S2O1- Increasing brand value recycling facilities) to create positive
and creating product impact on stakeholders.
category communities for 5. W1O5- Zero waste to landfill
WOM through social media.
7. S2O2- Promoting our value
proposition of sustainable W2
and green beauty through
social media. 1. W2O1- Building CRM as a core
8. S2O3- tracking customer process or network for effective
behavior on social media. customer service.
9. S2O4- launching campaigns 2. W2O2 – Creating green products for
related to green and different skin types.
sustainable products aligned 3. W2O3- Naturally Sourced, Organic,
 with govt initiatives on social Vegan, Cruelty-Free, Biobased,
E media. Recyclable Packaging, Biodegradable,
10. S2O5 – Promoting its retail Fair Trade cosmetics are to be
X outlets through current manufactured.
strong social media presence 4. W2O4 – Developing customer
T centric (first to follow any safety
rules and regulation related to
E customers health and safety) brand
S3 image through govt environment
R 11. S3O1- Investing in M&A i.e; safety programs.

N acquiring e-commerce
beauty brands.
5. W2O5 – Beauty Consultant facility
for customers on visiting the store.

A 12. S3O2- Investing on R&D in

green beauty range of W3

L products.
13. S3O3- Collaborating with
1. W3O1- Developing and
expanding the current

F celebrity brands, Korean

beauty brands.
ecommerce channel and brand
to tier 3 cities

A 14. S3O4 – Investing in

government funded green
2. W3O2- Developing and
introducing green technology

C projects to protect
environment for CSR and
products in tier 3 cities.
3. W3O3 – Surveying and

T shifting the image of Nykaa

towards sustainable beauty.
understanding the preferences
of tier 3 cities customers.

O 15. S3O5 - Investing in more no

of retail outlets to increase
4. W3O4- Helping the govt with its
initiatives to reach tier 3 cities.

R the presence of the brand in

different cities.
5. W3O5 -Building new Nykaa retail
outlets in 3 tier cities.

S S4:
16. S4O1- Wholesaling
approach.
17. S4O2- Water less green
beauty products.
18. S4O3-Leveraging emerging
technologies like
voice/touch/movement
activated augmented reality
mirrors and screens, virtual
product try-ons, skin
diagnostics and shade
matching capabilities.
19. S4O4- Collaborating with
govt institutions like
international Institute of
Health and Hygiene (IIHH) to
work on innovation-based
products related to health
 and environment safety.
20. S4O5 -Hybridization
(integrate online elements
with traditional elements, so
it will contribute to the size
of the customer network,
breadth of the offering,
liquidity and, ultimately, to
customer benefit.)

PROTECT (ST) AVOID(WT)

THREATS S1
S1T1- Licensing & certifications WT1
1. New & strict e-com S1T2- Promoting more the green
regulations beauty range of products W1T1:
2. Health concerns S1T3- Patenting our product Avoid import of cosmetics with lead
regarding chemical compositions. or arsenic as coloring agents.
products
3. Rise in small niche S2 W1T2: Avoid Open burning of the
competitors S2T1- To use social media to verify the wastes without considering the
authenticity of our products by environmental distress. Toxic gases
showing the snippets of manufacturing like ammonia produced from the
processes. To show feedbacks from domestic waste dumps can cause
verified users. numerous breathing problems.
S2T2- Imparting knowledge about our
new green beauty range of products. W1T3: Avoid competitive
S2T3- Creating more target specific differentiators related to waste
campaigns online by tracking consumer management.
footprints on social media. Leveraging
brand value by showing them the
influencers backed reviews.

S3
S3T1- Funding some money on the WT2
environmental backed social causes & W2T1: Avoid treating e-commerce as a
imprinting those causes on some of our platform just for selling products. E-
highest valued products. commerce opens up a whole new realm
S3T2- Keeping small test samples for of the beauty experience by providing
every product to let consumers try lots and lots of content for the modern
before buying. customer before making the final step to
S3T3- Acquiring some well performing click and purchase — from video
companies that might has the potential tutorials to peer reviews.
to become a threat & also investing W2T2:
more on physical outlets for getting in Avoid using Palm oil, instead use
 the reach of more untapped market. more of Coconut & Babassu Oil.
W2T3:
S4 Avoid being vague in delivering
S4T1- Setting certain benchmarks relevant information about the
based on government regulations and products.
specifications before bringing any new
product in the market. W3
S4T2- To create more of healthy & W3T1: Avoid any lack of adherence
quality range of products to new rules and regulation while
S4T3- Innovation based on consumer- expanding e-com network to tier 3
based feedback & continuously cities.
improving the current and new range W3T2: Avoid introducing products
of products that can cause serious health
concerns (high amount of paraben
containing products) for tier 3 cities
customers.
W3T3: Avoid any negligence in
keeping track on the movement of
small niche competitors’ movements
in tier 3 cities.

STRATEGIES
1. Marketing
a. Segmentation, Targeting, Positioning
b. Increasing brand value and creating product category communities for WOM through
social media.
c. Promoting our value proposition of sustainable and green beauty through social media.
launching campaigns related to green and sustainable products aligned with govt
initiatives on social media.
d. Promoting its retail outlets through current strong social media presence
e. Developing customer centric (first to follow any safety rules and regulation related to
customers health and safety) brand image through govt environment safety programs.
f. Beauty Consultant facility for customers on visiting the store.
g. Promoting more the green beauty range of products
h. Imparting knowledge about our new green beauty range of products.
i. To use social media to verify the authenticity of our products by showing the snippets of
manufacturing processes. To show feedbacks from verified users.
j. Surveying and understanding the preferences of tier 3 cities customers

2. Distribution
a. Displaying and Showcasing of wide range of products in Nykaa retail outlets.
 b. Wholesaling approach.
c. Developing and expanding the current ecommerce channel and brand to tier 3 cities
d. Avoid import of cosmetics with lead or arsenic as coloring agents
3. Corporate (Investment)
a. Investing in M&A i.e; acquiring e-commerce beauty brands.
b. Collaborating with celebrity brands, Korean beauty brands.
c. Investing in government funded green projects to protect environment for CSR and
shifting the image of Nykaa towards sustainable beauty.
d. Investing in more no of retail outlets to increase the presence of the brand in different
cities.
e. Collaborating with govt institutions like international Institute of Health and Hygiene
(IIHH) to work on innovation-based products related to health and environment safety.
f. Funding some money on the environmental backed social causes & imprinting those
causes on some of our highest valued products.
g. Zero waste to landfill
h. Building new Nykaa retail outlets in 3 tier cities.

4. Productions & Operations

a. Creating Waste management system on the website Like using an application to track
the generation of its waste.
b. Creating a new range green beauty-based products with renewable raw materials
c. Creating green products for different skin types.
d. Naturally Sourced, Organic, Vegan, Cruelty-Free, Biobased, Recyclable Packaging,
Biodegradable, Fair Trade cosmetics are to be manufactured.
e. Creating more target specific campaigns online by tracking consumer footprints on
social media. Leveraging brand value by showing them the influencers backed reviews.
f. To create more of healthy & quality range of products
g. To create more of healthy & quality range of products
h. More Green packaging
i. Avoid using Palm oil, instead use more of Coconut & Babassu Oil

5. Functional
a. Building CRM as a core process or network for effective customer service.
b. Leveraging emerging technologies like voice/touch/movement activated augmented
reality mirrors and screens, virtual product try-ons, skin diagnostics and shade matching
capabilities.
c. Acquiring some well performing companies that might has the potential to become a
threat & also investing more on physical outlets for getting in the reach of more
untapped market.
 d. Active participation in govt waste management schemes (example - The Ministry of
Environment & Forests (MoFE) is implementing a Scheme to provide guidance to
companies for setting up of treatment, disposal and storage facility for hazardous and
integrated recycling facilities) to create positive impact on stakeholders.
e. Avoid treating e-commerce as a platform just for selling products. E-commerce opens up
a whole new realm of the beauty experience by providing lots and lots of content for
the modern customer before making the final step to click and purchase — from video
tutorials to peer reviews.

6. R&D
a. Investing on R&D in green beauty range of products.
b. Innovation based on consumer-based feedback & continuously improving the current
and new range of products

7. License & certifications

a. Licensing & certifications
b. Patenting our product compositions.