Master Thesis

Middlesex University

Working Title: Innovative Growth Strategies for Global Luxury Cosmetic Brands in India

Supervisor: Dr. Huyen Anh Tham

Date of Submission: 11th January, 2019

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 DECLARATION

I prepared my final year thesis entitled “Innovative Growth Strategies for Global Luxury
Cosmetic Brands in India”. I hereby declare that this thesis is carried out my MBA degree in
International Business Management from Middlesex University, United Kingdom.

The interpretations put forth are based on my reading and understanding of the original texts and
they are not published anywhere in the form of books, monographs or articles. The other books,
articles and websites, which I have made use of are acknowledged at the respective place in the
text.

For the present thesis, which I am submitting to the University, no degree or diploma or
distinction has been conferred on me before, either in this or in any other University.

Place: Middlesex University, London Shreya Agarwal

Date: 11th January, 2019 Research Student

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 ACKNOWLEDGEMENT

Conducting this research has been one of the most enriching experiences of my life. The
contribution of this research to enhance my knowledge base and analytical skill has been
paramount. It gave me the opportunity to face challenges in the process and overcome them. This
would not have been possible without the valuable guidance of my professor, peers and all the
people who have contributed to this enriching experience. I would like to take this opportunity to
special thank My module leader: Dr. Sian Stephens and My dissertation supervisor : Dr. Huyen
Anh Tham including My programme leader: Dr. Qiuping Lifor the constant guidance and
support provided to me during the process of this research. It would not be justified if I did not
thank my academic guides for their important and valuable assistance and encouragement
throughout the research process. I would also like to thank my friend Mr. Parth Narayan Singh,
Mr. Maurya Bhatt and Mr. Jagjeet Singh Manku who had provided me with help and
encouragement for collecting data and valuable resources through my entire studies.

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 ABSTRACT

Luxury brands promotion is essential through effective marketing that can ensure the success in
the competitive market. In India, the cosmetic luxury brands need to apply certain strategic
applications that can ensure the success in the market. This research has performed the proper
analysis of the variables, which were adopted by the cosmetic brands dealing globally to expand
their business in various cities of India. Various strategies must be followed by the luxury brand
to grab the global market. But it becomes difficult for the global brand to apply the same
approach while grabbing the local market. In this context, an important question arrives which
states how the retailers can implement the same plan in the local market and can still be same
populated. On the other hand, the luxury cosmetic brands, which have an intention to flourish its
business globally, should know the strategies of how to set the sales to target globally and as well
as locally. In addition, the proper analysis of the opportunities considered global by the dealers
who are dealing with the growth of the market in the industry of cosmetic brands in India. The
research has performed SPSS based survey data analysis to gather effective data and it has been
found that the digital and social media platform-based marketing are the most possible option for
the luxury cosmetics brands.

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 Table of Contents

Chapter 1: Introduction ............................................................................................................... 9

1.1 Introduction ......................................................................................................................... 9

1.2 Background of the Study .................................................................................................... 9

1.3 Background of Cosmetic Industry in India .................................................................... 11

1.4 Problem Statement of the Study ...................................................................................... 12

1.5 Significance of the Research ............................................................................................ 12

1.5 Research Aim and Objectives .......................................................................................... 12

1.6.1 Research Aim ............................................................................................................... 12
1.6.2 Research Objectives ..................................................................................................... 13

1.7 Research Questions ........................................................................................................... 13

1.8 Research Hypothesis ......................................................................................................... 13

1.9 Research Structure ........................................................................................................... 14

Chapter 2: Literature Review .................................................................................................... 16

2.1 Introduction ....................................................................................................................... 16

2.2 Concept of Branding in Luxury Cosmetic Industry ...................................................... 16

2.3 Models in Branding......................................................................................................... 17

2.4 Concept of Digital Branding in Cosmetic Industry ....................................................... 21

2.5 Digital Marketing Framework and Channels using in Luxury Cosmetic Industry ... 22

2.6 Luxury Cosmetics Industry across the Globe ................................................................ 24

2.7 Luxury Cosmetics Industry in India ............................................................................... 27

2.7.1 Alternative channel: online cosmetics maket .............................................................. 27
2.7.2 Market share category wise and channel split ............................................................. 28

Market share through classification and break up of channel ........................................... 28

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 2.7.3 Business opportunity for foreign brands and online players ....................................... 29

2.8 Digitization in Luxury cosmetics sector .......................................................................... 29

2.9 Increasing popularity of organic luxury skin care products ........................................ 31

2.10 Successful branding and its essential elements ............................................................ 31

2.10.1 Effective content ........................................................................................................ 31
2.10.2 Personas of Consumers .............................................................................................. 32
2.10.3 Different platforms..................................................................................................... 32
2.10.4 Cross Promotion......................................................................................................... 32

2.11 Consumer Perceptions on Luxury Cosmetics .............................................................. 32

2.12 Changes in perceptions of consumers of Luxury Cosmetics ....................................... 33

2.13 Luxury Cosmetics Industry utilizes digital brand strategies ...................................... 33

2.13.1 Search Engine Marketing ........................................................................................... 34
2.13.2 Display advertising .................................................................................................... 34
2.13.3 Search engine optimization ........................................................................................ 34
2.13.4 Email marketing ......................................................................................................... 34
2.13.5 Social media marketing.............................................................................................. 35
2.13.6 Referral marketing ..................................................................................................... 35
2.13.7 Affiliate Marketing .................................................................................................... 35
2.13.8 Content marketing ...................................................................................................... 35

2.14 Strategies to Create Brand Awareness through Digital Branding ............................. 35

2.15 Consumers’ Perception about role of Digital Marketing and E-Commerce ............. 37

2.16 Digital Brand Strategy to Generate Online Leads To Increase Market Share ......... 37

2.17 Summary.......................................................................................................................... 38

Chapter 3: Research Methodology ............................................................................................ 39

3.1 Introduction ....................................................................................................................... 39

3.2 Method Outline ................................................................................................................. 39

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 3.3 Research philosophy ......................................................................................................... 40
3.3.1 Justification on the selection of Positivism Research Philosophy ............................... 41

3.4 Research design ................................................................................................................. 42

3.4.1 Justification for selection of the chosen Design .......................................................... 42

3.5 Research approach............................................................................................................ 43

3.5.1 Justification for selection of the chosen Approach ...................................................... 43

3.6 Research Strategy ............................................................................................................. 44

3.7 Data Collection .................................................................................................................. 45

3.7.1 Data Sources: Primary and Secondary ......................................................................... 45
3.7.2 Data analysis Techniques ............................................................................................. 45

3.8 Population and Sample ..................................................................................................... 46

3.9 Ethical consideration ........................................................................................................ 46

3.10 Research limitation ......................................................................................................... 46

3.11 Summary.......................................................................................................................... 47

Chapter 4: Findings and Discussion.......................................................................................... 48

4.1 Introduction ....................................................................................................................... 48

4.2 Descriptive Analysis .......................................................................................................... 48

4.3 Regression Analysis .......................................................................................................... 51

4.4 Correlation Analysis ......................................................................................................... 56

4.5 Reliability Analysis ........................................................................................................... 58

4.6 Discussion........................................................................................................................... 58

Chapter 5: Conclusion and Recommendations ........................................................................ 68

5.1 Conclusion ......................................................................................................................... 68

5.2 Linking with the objectives .............................................................................................. 68

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 5.3 Recommendations ............................................................................................................. 71

5.4 Limitation of the Research ............................................................................................... 74

5.5 Future Scope of the Study ................................................................................................ 74

References .................................................................................................................................... 75

Appendices ................................................................................................................................... 85

Appendix 1: Survey Questionnaire ....................................................................................... 85

List of Figures

Figure 1: Research Structure ......................................................................................................... 15

Figure 2: PCDL model .................................................................................................................. 18

Figure 3: Leveraging the brand equity .......................................................................................... 21

Figure 4: Digital marketing ........................................................................................................... 22

Figure 5: The Framework of Digital Marketing ........................................................................... 23

Figure 6: Global Luxury Cosmetics Industry ............................................................................... 24

Figure 7: Worldwide skin care market from 2012 to 2024 (in billion U.S. dollars) .................... 25

Figure 8: Cosmetics industry in India ........................................................................................... 28

Figure 9: Evolution of cosmetics industry in India ....................................................................... 29

Figure 10: Attitudes towards skincare .......................................................................................... 30

Figure 11: Business strategies through digital marketing ............................................................. 36

Figure 12: Research philosophy.................................................................................................... 41

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 CHAPTER 1: INTRODUCTION
1.1 Introduction
The retailers who are dealing with luxury cosmetic brands have understood the fact that
India has been considered as the market which is very diverse. So, the retailers found it
challenging to run the business over here. So, they wish to capture the global market of India
based on the cosmetic brand. The success of the growth of the company depends on the
capabilities of the retailers to understand how complex the market strategies are and the way how
to make innovations in their plan to capture the business market. This company named colour
essence has followed the strategy and development criteria, so they showed a different
movement of how to flourish their business in India.

In the year 2010, India faced a major recession in the industry of luxury cosmetics and
brands. but now it is back with all the developments in the economic area. Now it is so
developed that it has started to achieve the attention of the global market in the industry of
luxury cosmetic brands. With the increasing attention, the level of competition also increased in
order to grab the Indian market. But it is also necessary for the companies who are planning to
flourish its business must need to make a proper analysis of the market of India. Without proper
analysis, it will become hard for them to understand the aspects in which they can flourish their
business and acquire the maximum profits.

1.2 Background of the Study

E-marketing is actually an increasing trend which is acquiring the interest of numerous
consumers. These days several businesses are making use of electronic marketing in order to
impact the customers’ awareness. A digital marketing allows for the businesses in era of targeted
traffic on the sites and therefore raises product sales. Luxurious makeup products company
because of its serious advantages is additionally changing in the direction of digital choice to
draw the consumers. It is far from only assisting luxurious makeup products brands to improve
consumers however can also be offering them along with the advantage of repurchases by means
of marketing. The e-marketing business is within the condition of trend and it has been growing

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constantly as time goes on. Digital advertising has furnished the way in which for brand new
possibilities and search for fresh concepts by means of numerous fresh resources and methods.

Digital personalisation is substantially a thriving idea within the business world. Within
the previous couple of years, digital personalisation has exploded substantially, resulting in
substantial modifications within marketing methods. The potency of web as well as person to
person feedback is growing and it has suffered substantial effect on customer brand conception.
A variety of tools on the web assist in the development of on-line brand association, therefore
features a substantial effect on the involvement of customers as well as their commitment.

India is the heart of great possibilities and in addition it requires intense competitors in
luxurious makeup products companies. Consequently, the posh cosmetics brand names which are
searching to take advantage of the market utilize digital advertising processes to conquer the
difficulties. Each one of these communications by means of digital advertising are integrating
numerous modifications in our beauty products within India. In India, numerous digital
advertising resources like web site, Mobile Advertising, Innovative Statistics, Marketing
Automating, SEO, SEM, Social Media, PPC, and Google Ad words etc., tend to be hired by
luxurious cosmetic brand names. Digital advertising as well as its connected station perform a
substantial part within the achievement of the trademark that help in getting competing
advantage. It will help in obtaining combined sights in the clients and knowing their choices and
anticipation throughout all programs.

Within India, just about all kinds of companies are choosing digital advertising since the
application helps to draw consumers. Digital advertising of beauty brands within India is
predominant since it enables the customers to obtain entry to the data anytime and anywhere.
Because the preliminary stage from the internet, marketers have got considered digital press as
being a supply to create customer targeted traffic. The luxurious cosmetic manufacturers have
realized that this customers have put into practice the digital technologies since it has furnished
them with a way to generate and change their buying choices. The luxurious cosmetic businesses
of India which have comprehended this development are logically switching toward digital
interactivity and it has managed to get primary emphasis of their online strategy and they are

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considerably reshaping their focus, finances, abilities and procedures. Luxury manufacturers
within India make use of the details which is acquired by means of digital resources with regard
to harmonized customer encounters, development and expectation of regularity that assists in
transferring the consumers across the purchasing cycle.

The usage of digital advertising mediums has a substantial effect on the company and its
surroundings. Consequently, the cosmetic organizations make an effort to check out the drivers
of e-brand commitment and also the digital sales strategies to hold on to and improve their
consumer bottom. The digital method offers the organization using the data rich systems where
they are able to share their item details using the consumers and may contact consumers rapidly
and efficiently. Chaffey, (2015) mentioned which consequently, the consumers are convinced
through the marketing techniques however also considerably increases the consumer base.
Thinking about these situations, digital advertising is becoming significant as it bears excellent
effect on altering the consumer’ awareness.

1.3 Background of Cosmetic Industry in India

Cosmetics are considered to be an essential substance which gives an effort to enhance
the physical appearance of a concerned person. Cosmetics means a substance which mainly
contains objects which are chemical objects. The purpose of applying cosmetics is to present him
or her in a more appropriate manner which will not influence the structure of the body. The
cosmetic industry brands which are considered to be luxurious in nature started to enter the
global market of India at a pace which is considered to be very fast in nature. In the year of 2010
India faced a recession but now it is back with its complete economic growth and got the
attention of the luxury brands which were considered to be global in nature.

The colour essence company consists of makeup with packaging which is available in
various ranges. The stores of this company are situated in multiple famous cities of India. They
have their stores at Ahmadabad, Chennai, Indore, Kanpur, Noida, Pune and many other cities.
Nowadays it is considered to be a cosmetic brand which is growing very fast in India and people
can see that its uses are available in shopping malls, retailer shops and as well as in different
renowned salons. The distribution network of this company is now considered to be very robust.

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The company also has an intention to explore its brand in the rural areas also which is deemed to
be a very innovative idea.

1.4 Problem Statement of the Study

The beauty industry has been proven as top creativity in market. This creativity doesn't
only originate from a technological side regarding product improvements, but additionally
through e-marketing viewpoint where companies have applied effective ways of appeal to and
maintain consumers.

1.5 Significance of the Research

This research is regarded essential since it examines different facets of digital marketing
that help with enhancing the angle of consumers concerning the services and products that the
brand provides. Various aspects of digital marketing are developed within the situation of luxury
aesthetic combined with the techniques which may be used to generate efficient brand
recognition. Furthermore, the study analysis is certainly substantial since it plays a role in
knowing the need for digital marketing with regard to the companies working within the
cosmetics business and the way it may be utilized to make improved online prospects as well as
improve brand popularity to have advantage over its rivals, since the research the a lot more
crucial as it might provide a detailed the knowledge of a couple of top companies, Dior and
Lancôme, that happen to be currently companies of reputation. The analysis of the significance
and part of digital marketing in advertising and brand placing in the companies and items of
luxurious makeup products, will be built by this research.

1.5 Research Aim and Objectives

1.6.1 Research Aim

The main of this study is to identify the current innovation growth strategies in business
industry with respect to luxury cosmetic industry in India. This study also aims to provide the
details explanation on the impact of digital branding as an innovation strategy for luxury
cosmetics products with respect to skin care products.

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1.6.2 Research Objectives

• To devise a multi-faceted digital strategy that holds conscious luxury cosmetics

by showcasing transparency and authenticity;

• To show pathway for collaborations with online beauty influencers and luxury
online retailers become potential components to a well-rounded global digital
strategy;

• To build brand credibility amongst well-informed consumers by demonstrating

unparalleled expertise around the science behind their products;

1.7 Research Questions

I. How Luxury Skin Care Uses Digital Driven Discovery to Drive Beauty Industry
Growth?

II. What are the key role plays by digital marketing and e-commerce towards
consumer decision making?

III. What are the key digital strategies used to increase market share in Luxury Skin
Care Industry?

1.8 Research Hypothesis

Hypothesis 1:

H0: Multi-faceted digital strategies have significant impact on business growth for luxury
cosmetics industry in India

H1: Multi-faceted digital strategies have no significant impact on business growth for
luxury cosmetics industry in India

Hypothesis 2:

H0: Digital driven strategy (digital marketing and e-commerce) is playing key role to
drive business growth for luxury skin care products

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 H1: Digital driven strategy (digital marketing and e-commerce) is playing key role to
drive business growth for luxury skin care products

1.9 Research Structure

In order to conduct this research study, following structure is followed:

Chapter 1: Introduction – This is the first part of this research study that describes
background of the research to represent a precise overview the topic. In order to introduce the
research study, this chapter explain research aim, objectives, questions and hypothesis along with
problem statement and significance of the study.

Chapter 2: Literature Review – This chapter deals with the theories and models related
to mentioned aim and objectives. In depth analysis with different aspects as well as factors are
described here.

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 Ch1: Introduction • Aim

• Objectives

• Questions

• Theories
Ch2: Literature
• Models
Review

• Approach

Ch3: Research • Philosophy

Methodology • Sample

• Data analysed with

Statistical tool Ch4: Data Analysis
and Results

• Points Highlighted

Ch5: Conclusion and • Objectives Linked

Recommendation • Recommendation

Figure 1: Research Structure

(Source: Created by Author)

Chapter 3: Research Methodology – In order to make the research successful, this

chapter discusses the required methods and approaches along with relevant philosophies. All
these tools are used to gather and evaluate information relevant to the research study.

Chapter 4: Data Analysis and Results – This chapter is the most crucial part for this
study that represents the results using data collection and analysis. This chapter provides the
graphs that are converted from the responses of online survey. Using SPSS tool, collected data
are analysed and presented.

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 Chapter 5: Conclusion and Recommendation – This is the final chapter for this research
study where all the information summarised and required points are highlighted. All the
objectives are linked with relevant theories and results. Future scope of the study and
recommendation is also provided.

CHAPTER 2: LITERATURE REVIEW

2.1 Introduction
Various strategies must be followed by the luxury brand to grab the global market. But it
becomes difficult for the global brand to apply the same approach while grabbing the local
market. In this context, an important question arrives which states how the retailers can
implement the same plan in the local market and can still be same populated. On the other hand,
the luxury cosmetic brands which have an intention to flourish its business globally should know
the strategies of how to set the sales to target globally and as well as locally (Arrigo, 2018).
Considering the market of India as the most competitive market, many cosmetic brands have
tried to flourish their business in this market since the year 1991. India is considered to be a
country which has the population growth supposed to be in the position of second highest. But
still, there are various parts of India which cannot afford the luxury cosmetic brands.

2.2 Concept of Branding in Luxury Cosmetic Industry

The most common notion on the significance of branding is that it is the image and logo
of the business that enable the customers in identifying the company as well as its services and
products. The idea of branding is one of the most popular facet of marketing and business
strategy (Yeshin, 2012). Nonetheless, the scope and role of this particular notion is considered by
advertisers and managers as the essential element to grab business for a specific organization.

Ferrell and Hartline, (2012) further have added with the understanding of the concept of
branding and stated that the idea also includes the area of the brand culture that concentrates
upon the awareness linked with history, anthropology and organization’s social background.
Hence, the concept of branding also encompasses identification and determination of the brand’s
culture as a whole. As per the study conducted by (Helen, 2013), three distinct viewpoints of the

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concept of branding can used by a company in enhancing its overall marketing strategy for
gaining competitive edge and develop business acquisition. Three different perspectives that can
be considered by enterprises are business viewpoint, legal perspective and practical ability
viewpoint. In line with the perspectives of Hair Jr and Lukas, (2014), the branding is identified
as product or service experience and can be evaluated upon the set standard. Legal perspective of
a business is the enterprise’s legal trademark that includes its name, characteristics and
differentiation factors with the other brands offering similar services or products in the market.
In contrast, Schivinski and Dabrowski, (2016) have opined in relation to business viewpoint,
with the support of brand, businesses are facilitated to strengthen their knowledge among their
potential target customers. Jobber and and Ellis-Chadwick, (2012) further have found branding
as the tool to promote business’s products and services that again enable the brands in attracting
potential customers from the target market.

2.3 Models in Branding

PCDL model comprised of four aspects communicating brand message, brand

positioning, leveraging the brand equity and brand performance delivery. This particular
branding model has been proposed by the research conducted on the notion of branding.
However, the availability of appropriate model is inadequate associated with branding strategies.
The selected conceptual model proposes brand building strategies in the competitive market
(Chi, 2011).

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 Figure 2: PCDL model
(Source: Percy, 2014)

Positioning the Brand: Brand positioning is all about create a perception among the
mass market about the brand and gaining differentiation that sets it apart from other competitors
that are operating or delivering services in the same industry (Neti, 2011). Brand markets aim at
creating brand perception in the mind of the target market. Value proposition and brand identify
are the outcomes of brand position that require to be communicated to the mass market and that
highlights the benefits over other market players. A company that has strong position, has
relatively grasping position driven by effective association such as high rating on certain
features, home delivery service of the store or digitization of the store, friendly customer care
services. Marketers need to have adequate understanding about distinct elements that can be
combined to achieve targeted to achieve maximum positioning in the minds of the target
consumers as suggested by (Mihart, 2012). The elements need to be determined in line with the
brand knowledge viewpoint.

Strong identity for the brand can be established by positioning the brand, its products and
services in the minds of the target consumers. Value creation is backed up with the efficiency to
promote a product, service or business with emotional importance more than its functional value.
A strong and effective relationship is developed with a successful brand in which consumers
feels the sense of belonging, commitment and passion towards the product, brand or its services
(Menon, et al., 2015). Emotional needs that the customers possess result in the brand preference.

Communicating the Message of Brand: A brand first needs to create a vision about how
it would be perceived by the target consumers. With the aid of the brand positioning the brand
identity is prioritized and thus develop the communication themes. The communication themes
comprised of a certain aspects such as message types, differentiation of the brand to be met and
aspects that are prioritized by the target customers. With the help of advertisement, a creatively
execution of brand communication, a strong image about the brand is developed in the minds of
the target customers (Luo and de Jong, 2012). Enterprises face several challenges to establish a
brand such as developing strong customer relationship, to be remembered, to be noticed,

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perceptions to be transformed, and to reinforce attitudes. Therefore, a brand image can establish
a bridge between customers and the business, and its products or services.

Direct marketing, advertising, endorsements, sales sponsorships, public relation and

integrated brand communication via internet are the major channels that companies use in
communication for brand positioning. According to Lemon and Verhoef, (2016) application of
emotional message in the advertisements grabs attention of the customers as those are appealing
to their heart and minds and consequently they tend to remember those products, services and
brand as well through the creation of emotional relationship between customers and the business.
The ability of the potential consumers to remember or identify a specific segment of a product is
known as brand awareness. Brand image is again the outcome of consumers or potential mass
market’s perception about a product or services or is the way people think about them.
Advertisement is designed based on a set of variables that are likely to impact on the brand such
as changing perception of the consumers, new technological innovations and new competition
(Kubicová, et al., 2011). The message that a brand creates requires to be aligned with brand
personality, brand value and other dimension of brand identity. Effective brand aids in
positioning the brand and influence on the consumer purchasing decision (Kotler, et al., 2015).

Delivering the Brand Performance: Enterprises constantly track their brands and
compare with other market players and how thy have been dealing with the increasingly growing
competition. They further track their performance in the marketplace (Shimp, 2010). Brand
progress can be evaluated in relation with the purchasing level, brand recognition, brand
remembrance, consumption, awareness and advertising (Hollensen, 2015). Effectiveness of the
selected marketing campaign is evaluated with the particular approach in affecting the target
customer that consequently result in monitoring brand strength. In the increasingly growing
competitive world, services that business deliver plays very critical role in developing an
effective brand relationship as consumers find a brands as the entire relationship they have with
the enterprise.

Progressively, businesses adopts all possible strategies and evaluation process to meet
customers needs and deliver brand experience continuously. The brand that currently is existing

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is potentially vulnerable to the popular new brands from other market players (Kanagal, 2015). It
is therefore one of the key aim of the existing brands to upgrade their performance against the
competitors. This comparative analysis and constant evaluation supports in continuing functional
excellence of the existing brands. Brand loyalty is the attachment that customers possess towards
a brand and it is demonstrated by the likeliness of the consumers of switching to another brand
owing to alterations in its piece or products features. Brand loyalty is the preference of the
customers of purchasing a product over time and it is the outcome of the consumers realizing
about how much the product or the services of the particular brand is meeting their needs (Fritz
and Gülow, 2013). Customer retention can be achieved through boosting customer loyalty by
establishing an emotional bonding between the brand and its customers. Loyal customers again
help in spreading effective word of mouth.

Leveraging Brand Equity: Businesses apply several strategies with an aim to leveraging
their brands such as extension of brands, extending line, co branding and ingredient branding.
Organizations that develop brand equity concentrate upon strong brand in launching new
products in other segment, delivering service to the customers in the existing category in better
manner or delivering services to other customers in the prevailing category. Companies use same
brand in launching a different set of products in the existing category or in the separate product
category to obtain the advantage of the power and effectiveness of the prevailing brand rather
than building a completely new brand that may result in investment of huge amount and time
(Ducey and Samu, 2015).

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 Figure 3: Leveraging the brand equity
(Source: Burchell, et al., 2013)

2.4 Concept of Digital Branding in Cosmetic Industry

Digital marketing adoption of electronic media for promoting products and services that
the markets offer. Digital marketing aims at grabbing attention of the customers and facilitating
them connecting with the brand with the aid of digital media. Marketers can develop
communication with their customers at a regular basis with improved customised interactive
system at a very limited cost. Since customer loyalty drives to customer satisfaction and
customers retention, it is critical to keep good relationship with the customers (Baker, 2014).
Marketers have striven to exploit their competence through marketing campaigns, as referral to
peer has become a commonplace phenomenon. Brand awareness can be build through an
advertisement that is consistent with an enterprise (Stone, 2015).

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 Figure 4: Digital marketing
(Source: Tiago, et al., 2014)

Schivinski and Dabrowski, (2016) have identified the association between advertising
and search and stated that advertising generates online word of mouth. They have found that
advertisements results in increased stimulation for visitation to the websites of the advertised
brands that can be demonstrate the interest of the consumers and involvement with the brand.
Positive opinions of customers looking for information or seek assistance are resulted from the
interactivity in the digital media. Consumers spending with a brand through digital media have
increased cognitive loyalty towards it. Social media is the opportunity to establish positive
relationship between the brand and their customers.

2.5 Digital Marketing Framework and Channels using in Luxury Cosmetic Industry
The digital marketing strategy suggests about the channel behaviour of the potential
customers and the enterprises must possess information about their publishers and competitors,
known as channel strategy. As per the digital marketing strategy, businesses are relied upon the
objectives for the online and offline marketing channels (Jang, et al., 2012). The digital
marketing strategy of a company targets upon developing communication and interact with the

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customers about their products so that they gain adequate information and knowledge about
those and consequently encourage the customers to use the product. Promotion of products and
services in the market depends largely upon the digital marketing strategy if a business (Tiago, et
al., 2014). However, it is optimum that the company manages the integration of the
communication channel.

Erdoğmuş and Cicek, (2012) have opined that the aim of the digital marketing strategy of
an enterprise is to determine how and why it could achieve its sales target. It further has been
added by Javadi, et al., (2012) that digital marketing strategy further aids in communicating the
effectives of the selection of channel and assists in improvement of the brand of the organization.
Digital marketing channel is the way that several enterprises select for targeting customers.

Figure 5: The Framework of Digital Marketing

(Source: Erdoğmuş and Cicek, 2012)

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2.6 Luxury Cosmetics Industry across the Globe
“The longer-term outlook also remains positive as the world population with access to
cosmetics in emerging markets is estimated to increase by 50%.” by Paul Wood.

During the year 2013, worldwide cosmetics market developed by 3.8%, which however
was little lower than the average of previous fifteen years, estimated approximately 4.1%. It has
been estimated that over the next twenty years, the access to luxury cosmetics could increase by
50% owing to the rapid surge of the urban middle class in the current society. The nations such
as Brazil, China and the US have contributed to almost half of the development of the cosmetics
in 2013. The industry is set to double in the coming fifteen to twenty years from now in which
Japan, China, India, Brazil and the US are likely to become the top markets of luxury cosmetics.

Figure 6: Global Luxury Cosmetics Industry

Source: (Coursaris and Van Osch, 2016, July)

Global economic crisis has not been able to affect the cosmetics demand as the
consumers are seeking for higher quality and innovative products. Beauty market is solely
dependent on supply that is driven by innovation where the consumers only seek improved
quality, perceived results and performance (Stokinger and Ozuem, 2018). The industry has
developed by the rise of urban middle class throughout the world.

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Figure 7: Worldwide skin care market from 2012 to 2024 (in billion U.S. dollars)
(Source: Srivastava, 2015)

Resilient demand:

• Need for makeup products is not influenced by the financial crisis, along with
customers aiming for more expensive items and longing for new-technology and
concepts.

• The beauty sector is actually a supply-driven sector motivated by creativity, and

people are usually searching for top quality, effectiveness and recognized
outcomes (Grossberg, 2016).

• Sector have been reinforced through the increase of middle classes worldwide.

Dermo-cosmetics: huge potential

25
 • Dermocosmetics items which mix cosmetic as well as dermatological actions to
maintain the wellness as well as elegance of skin along with hair increased by
6.0% in 2013.

• Usually effective in West European countries, the section is witness to its

advancement speed up in North America and also the new marketplaces

• The perseverance comes from the solid customer charm of goods mixing
effectiveness and protection along with value for money.

• The submission stations which previously integrated conventional pharmacy as

well as “parapharmacies” programs have recently extended to drugstores,
dermacenters in shops and medi-spas.

Widespread growth

The sector had been resilient upon all ground, also within Western Europe, with
expansion of almost 3.0%.

Through a geographic point of view, the newest markets proceed to obtain

growing amounts of expansion. Not including Japan, they displayed 80% of
global market progress because of in equal stocks to Asia-Pacific as well as Latin
America.

Along with development of 5%, the discriminatory market carried on to develop

at a constant speed in 2013, supported through Asian countries. Travel retail leads
to 24% of worldwide progress (Blakeman, 2018).

Along with development of 3.9%, mass-market revenue tailed off, especially

because of lagging need in the US as well as Asia.

Electronic media: the game changer

26
 • Electronic media offers came forth being a important dimension with regard to the
brand names, along with beauty item customers continuously searching for
suggestions and advice.

• The web is progressively built-into the purchasing procedure in a multi-channel

circumstance along with rise of electronic media and social support systems.

• With customer views simply a click away, these people impact ultimate options
both equally on the web and in the shop.

• The on the internet method assists to support a far more immediate and
participative partnership using their “customer-emissary” while offering them
with more potent experience and assistance synchronized to their perspective of
magnificence.

2.7 Luxury Cosmetics Industry in India

2.7.1 Alternative channel: online cosmetics maket

With the increased technological use and advancement of internet, online stores such as
Flipkart, Amazon, etc have added to this online market trend. This industry has included certain
vertical specialists such as Purple, Nykaa who are driving the e tailing surge in the online
cosmetics market. Nykaa the online cosmetics store offers more than six hundred cosmetics
products on both offline and online store, launched in the year 2012. The online cosmetics
market of India value 50 million US dollars that contributes to 2% of Indian cosmetics market.

27
 Figure 8: Cosmetics industry in India
Source: (Mann, et al., 2018)

2.7.2 Market share category wise and channel split

Market share through classification and break up of channel
The split to appear within the Indian makeup products sector according to group and
income is really as follows. Hair-care items, with market innovator Marico, tend to be top using
the share of USD 3.2 bn. This really is accompanied by oral treatment items, driven by Colgate
Palmolive, with business USD 1.9 bn. Skincare items, by which HUL prospects, possess a slice
of USD 1.7 billion, accompanied by perfumes item, driven by Vini Cosmetic, with USD 0.5
billion. Last of all, coloring makeup products, led by HUL again, features a business of 0.18
billion (Ryan, 2016). The Indian makeup products sector provides the people by two channels -
organised and unorganised like Lakme, L’Oreal, Fair and Lovely etc.

28
 Figure 9: Evolution of cosmetics industry in India
(Source: Ryan, 2016)

2.7.3 Business opportunity for foreign brands and online players

Based on the revenue and category the channel split can be identified in the Indian
cosmetics industry. Marico is the leader of haircare products achieves a share of UDA 3 billion
followed by oral care products. In oral care products, Colgate Palmolive is the leading brand
with market share of $1.74 billion. HUL leads in the skin care products with the market share of
$ 1.63 billion followed by fragrances led by Vini with a share of $ 0.47 billion (Mann, et al.,
2018). With the increasing and significant for branded products in the cosmetics industry, India
has opened opportunities for foreign brands for investment in the specific sector. Additionally,
the industry further promotes the online business opportunities to develop a vertical marketplace
and cater to the needs of the consumers in more efficient manner.

2.8 Digitization in Luxury cosmetics sector

Digital media has been found to be the significant element for the brands where
consumers of the beauty products constantly seek for suggestions and tips. Fast disappearing
trend has been witnessed in the luxury skin care and beauty product sector. Information on the
trends of customers in the cosmetics industry can be demonstrated from the data research to find

29
out consumers interest and considerations. Two aspects have become increasingly popular are
masks and Korean skincare.

Masks have been found to have steady growth over the past few years in the sector as per
the report of Google 2017. Masks have been the safe bet in Japan which has been considered in
both France and the US. “Korean skin care” products also has been found to witness steady
growth globally. Both Korean skin care and masks adopt online informative and attractive
content the beauty embracers has considered the trend and the viewers of the content have
transformed to customers. Korean skin care has become popular through YouTube videos
through their engaging and long content showing steps of complicated skin care regime that the
luxury cosmetics products users can apply anytime anywhere.

Figure 10: Attitudes towards skincare

Source: (Park, 2018)

30
2.9 Increasing popularity of organic luxury skin care products
More than ever, in recent times, people access to the digital media to acquire knowledge
and information about their choices and their outcomes. Conscious consumption not merely has
influenced food and fashion sectors, also has left deep impact on the cosmetics industry.
Consumers in current times prefers gaining information about the ingredients, origins of the
brand and the impact of the luxury skin care products may be owing to the increased knowledge
about harmful chemicals, increasing distrust on brands, or growing concern on environmental
responsibility according to Women’s Facial Skincare Consumer Report 2017 from The NPD
Group (Park,S.;, 2018). Natural organic products have been the most recent segment in
cosmetics industry on which customers manifest upon. Wu and Lee, (2016) also have found that
customers are willing to pay more for the cosmetics products that include organic natural
components. Over the four year period the natural and organic segment of cosmetics industry has
experienced 24% growth and is estimated to reach to 13.2 billion USD. According to report of
Google, trends growth of “vegan” skin care has been witnessed to increase by 83% in the USA
and France also is following the similar trend. People’s priority on clean skin and organic
ingredients need to be focussed upon by the marketers of the cosmetics industry rather than the
ineffective claims.

.10 Successful branding and its essential elements

Rather than the name of the company and products or service sale, luxury cosmetics
brands showcase the traits of the business, by finding them more effective and crucial. Four key
elements have been chosen by the luxury cosmetics brands that have facilitated them in winning
online presence through demonstration of the beliefs of specific cosmetics company (Shallu and
Gupta, 2013).

2.10.1 Effective content

Content quality is one of the significant elements of company’s online presence and
effective digital brand. Digital platform is used by the cosmetics industry for publishing content
regularly through blog posts, to e Books and updated information about the existing and newly
launched products on the social media websites to newsletters (Czinkota and and Ronkainen,

31
2012). Effective content facilitates the cosmetics enterprises making strong online presence and
strengthening the business prospective of the enterprise in the cosmetic sector.

2.10.2 Personas of Consumers

The content that is created by the luxury cosmetics brand must be attention grabbing but
it will not be effective if it is not transformed according to the personas of the cosmetic products
consumers. Cosmetics brands must consider the consumers personal as the critical element that
encompasses demographic, behavioural and psychological aspects.

2.10.3 Different platforms

All the available social networks need not to be used by the cosmetics brands.
Nonetheless, luxury cosmetics brand must have their online presence with a single profile in the
social media website meeting the needs of the consumers. Search engine is the other reason of
presence of the cosmetics brand on distinct platforms as it will enable the brand in improving its
search outcomes associated with the used keywords (Coursaris and Van Osch, 2016, July. ).
Higher ranking in the search engine will lead to increased access and prominence of the
cosmetics brands.

2.10.4 Cross Promotion

Digital branding when effective promotes quality content across different platforms by
modifying the presentation of the content developed by the luxury cosmetics brands. The luxury
cosmetics brands customers use distinct channels at a time but at different time if day can be
segregated into different sections (Rosenbloom, 2012). Cosmetics brands must post their content
in several digital media platforms. Blog post published in the Facebook are more likely to be
overlooked by the consumers of the cosmetics brands but they may browse through the
newsletters sent in their inbox (Lee and Watkins, 2016).

2.11 Consumer Perceptions on Luxury Cosmetics

Recent studies have demonstrated the significance of understanding the consumers
perception for their engagement while developing reliability on the band. Cosmetics brands
distribution is critical to meet growing consumers demand and thus maintain a demand supply

32
balance. Increasing spending ability of the consumers all over the world has led to growing
online challenge for distribution and demand of cosmetics products. Online distribution channel
has influenced the way that consumers of this particular industry make their purchases. Rios, et
al., (2018) have recommended that marketing and branding of cosmetics must be contrasted
since over disperse may result in its distinctive attribute of being luxurious. Therefore, the
marketers of the luxury cosmetics industry must encourage the illusion that their products are
scarce. However, distribution channel being digitalized contrasts with the notion of the scarcity
since it has been considered as the distribution through mass channel (Chattalas and Shukla,
2015).

2.12 Changes in perceptions of consumers of Luxury Cosmetics

Effective marketing and branding strategies adopted by luxury cosmetics brands make
them present globally. Cosmetics has become one of the major section of the global business
sector and world is demonstrated a huge market. Globalization and digitization have helped the
people sharing their love towards the brands of cosmetics through endorsements by popular
celebrities and brand names (Daniel, 2015). It is believed that more than one million consumers
of the cosmetics brands are aware about the names and logos of the enterprises. The perception
of consumers of this particular industry has been witnessed to be changed with the change of
time and the regular updating of the companies about their services and products via social
media websites. Altered spending power and patterns of lives of the population has resulted in
changing needs of global customers. With the adoption of creative and distinctive abilities,
cosmetics brands must improve tehri online presence depending upon the customers purchasing
preferences.

2.13 Luxury Cosmetics Industry utilizes digital brand strategies

A distinct set of digital marketing strategies are used by the companies in different
industries with an aim to improve their operation to an optimum level. Main digital strategies
that cosmetics industry integrate are as below:

33
2.13.1 Search Engine Marketing
Search engine marketing is a kind of digital marketing to promote company’s websites by
creating and improving on the search engine through paid extension, paid search marketing and
use of search engine optimization techniques. Search engine marketing is an effort to make
impressions that leads to brand awareness about product and services, making an effective way
to increase business.

2.13.2 Display advertising

Display advertising is a form of online advertising that are available in varied kinds such
as social media platforms, banner ads and a lot more. Display advertisements depends upon
certain traits such as audio, images and video with a purpose of communicating the message of
advertisements (Belch, et al., 2014). Display advertising is used in third party website to redirect
in the company’s website and thus promote product and service awareness of the same brand.

2.13.3 Search engine optimization

Search engine optimization is a procedure of optimizing the number of visitors to a
specific website of an enterprise by ensuring it is present in the top search list in a search engine.
Search Engine Optimization is one of the most effective strategies of digital marketing that are
integrated to improve the searching result of a particular website or a page for improving their
ranging in the search engine (Chaffey and Ellis-Chadwick, 2012). It helps the customers find any
website, products or services of a specific brand effortlessly leading to increased business and
profitability through customers online visit.

2.13.4 Email marketing

This marketing strategy is an effort to send direct message through emails to the
customers for mass marketing. Through email marketing brand send commercial messages to its
potential and existing customers.

34
2.13.5 Social media marketing
Social media marketing is the effort of gaining attention through social media websites.
In this era of digitalization, companies have been promoting their products and services to attend
their marketing goals in an effective manner (Abratt and Kleyn, 2012). It is a form of developing
and sharing content on social media networks in order to gain branding goals alongside
marketing objectives.

2.13.6 Referral marketing

Referral marketing is one of the most beneficial strategies for developing communication
that ensures products and services are marketed. The particular marketing strategy facilitates in
reaching prospective customers through the referral marketing that is mostly conducted through
the word of mouth (Armstrong, et al., 2014).

2.13.7 Affiliate Marketing

Affiliate marketing is the kind of performance-based marketing in which companies
rewards one or more than one of affiliates because of their efforts resulting in customer visit and
purchase by their own marketing efforts of the associates.

2.13.8 Content marketing

Content marketing is the procedure of delivering valuable and significant information to
the customers depending on their desires, requirements and wants to engage, inform and attract a
customer while promoting the brand.

2.14 Strategies to Create Brand Awareness through Digital Branding

The rapid growth of digital media and technology has changed the entire world and
marketing is no exception. Consumers in recent era of globalization and digitization are provided
with wide array of products and services with prices from several suppliers and the way of
purchasing and payment are hassle free. Digital marketing is the notion of achieving marketing
objectives with the application of digital media and technologies, other terms of this specific
marketing procedure are web marketing, internet marketing and e-marketing.

35
 Figure 11: Business strategies through digital marketing
(Source: Baker, 2014)

Majority of the companies have minimised their expenditure on traditional marketing to

invest more on digital marketing. A good proportion of promotion used to be carried out through
mass marketing which in recent time has witnessed increasing number of direct advertisement as
a significant promotion approach. Online advertising and digital marketing conducted through a
similar procedure. The better the SEO of a company’s website the more activity developed by
the site for consumers. Followed by a visit to the website, some of the prospective consumer get
attracted towards the product and services features and thus their interest towards the website
convert to purchases. With the inclusion of digital marketing channel the cosmetics brands have
more possibilities to develop customer attraction and generate sales. With the adoption of

36
effective strategies, digital marketing procedure can further be enhanced by collecting data about
the online shoppers.

2.15 Consumers’ Perception about role of Digital Marketing and E-Commerce

Studies have demonstrated strong association between marketing strategies and
purchasing behaviour. Effective branding strategies that luxury cosmetics brand adopt have
positive role in influencing the purchasing behaviour of the consumers. Social media platforms
enable the luxury cosmetics brands in understanding the needs, perceptions and expectations of
the consumers. It has been recommended by Chaffey and Ellis-Chadwick, (2012) that digital
marketing and e commerce platforms play significant role on purchasing behaviour and
consumer perception on the brand, support customers in accessing their services throughout the
day, and therefore allow them shop as per their convenience. Digital marketing is one of the most
preferential marketing strategies that luxury cosmetics brands integrate help them in displaying
their products with detailed product description, application procedures and available price
ranges. These platforms make enable the consumers evaluate the product affectability and price
comparison that lead to purchasing decision. E commerce platforms and digital media also attract
wide classes and types of customers and thus broaden the customer base of the luxury cosmetics
brands. Positive reviews and feedbacks of consumers and brand blogs help the luxury cosmetics
brands persuade the possible consumers in purchasing their products.

2.16 Digital Brand Strategy to Generate Online Leads To Increase Market Share
Effectiveness of digital marketing at current age is highest than ever. Nonetheless, the
benefits of online mediums and digital platforms can only be reaped when enterprises are
efficient in acquiring its complexity and win competitive edge. One of the most commonplace
challenge that digital marketing experience is the increasing number of e stores with an objective
to develop their sales. Luxury cosmetics brand face tremendous challenge in identifying the apt
time and place to make their online presence so that they can stand out from the competitors.
Extensively growing popularity of e commerce has made the act of attracting wide population of
consumers truly difficult that has potential to increase the profitability of the business. Some of
the effective strategies that luxury cosmetics brand can embrace to improve their online presence
and generate visitor traffic:
37
 • Publishing quality and informative content that meets consumers’ needs and queries
• Using graphics in communication with the existing and potential customers on online
social media platforms such as Facebook, Pinterest, Twitter, and LinkedIn
• Develop community exposure with the use of social options
• Develop concise and attractive content
• To leverage reviews and word of mouth marketing
• Develop grabbing blog titles to draw the attention of the consumers
• Use of Pinterest Treasure hunt
• Creating and developing infographics for communication brand messages
• Integration of interactive interface

The strategies given above have not be applied by several luxury cosmetics brands.
However, Chattalas and Shukla, (2015) have commented that luxury cosmetics brands that aim
at achieving competitive edge must adopt all the strategies to gain optimum advantage by
generating maximum number of consumer traffic resulting sales growth of the organization.

2.17 Summary
Luxury cosmetic brands have captured a significant part of the industry by storm. The
pyramid model has helped to access the higher-level customers, the middle-level customers and
also the lower level customers. Firstly, marketers should approach the high-level customers after
whom they should approach the middle class and lastly the lower level customers. The galaxy
business model monitors the fact that there should be one epicentre which will hold the entire
industry. There are two types of business models - consumer-centric theory model and product-
centric business model. The presence of dependent and independent variable in the market helps
in the market analysis of various cosmetic brands in India. The literature gap proves to be a
restriction for many cosmetic brands in India. Luxury brands need to join hands with the non-
governmental organisation to provide a comfortable environment, support global causing factors
and also to support social responsibility.

38
 CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
The specific procedure of research methodology in the research process is helpful to
make interrogative information gathering procedure for the data assembling. The methodological
section allows to maintain overall validity and reliability of the research work by the process of
evaluating the data collection (Berbegal, 2013). In form of research philosophy, research
approach and research strategy, the methodological technique appears with the characteristics to
make proper information assembling process. By explaining and predicting the research
phenomena, data collection for the particular research process can be maintained very properly
(Beiske, 2007). In this current research on the innovative growth strategy implication of the
luxury cosmetic brands of India, different form of research methodology has been applied for the
data gathering and to carry out an in-depth observation. Data collection form has been selected in
the specific manner that can helps to denied key objective of the research process. Considerable
form of method has been applied in the research for the maintenance of the data evaluation
process. Research variable evaluation can be considered as one of the most significant research
processes in the process of making research evaluation process in the current research work.
Therefore, in this current section, the researcher will be focusing on identifying the suitable
methods, which help in fulfilling the research objectives developed. Furthermore, the focus is
also on determining the ethical consideration to be maintained in order to carry out the research
in appropriate manner.

3.2 Method Outline

In the section, the researcher has emphasized on assessing the research techniques for
analysing the digital branding strategy effectively and its impact on the decision-making process
of the consumer with reference to luxury cosmetic brands like Color Essence. The researcher has
focused on specific research philosophy, research approach and design, data collection methods
and analysis. These aspects have largely supported in gathering the required information to
determine the relationship of the innovative growth strategies of global luxury cosmetic brands
with the performance of organisations in attracting customers. On the other hand, particular

39
sampling technique has also been determined to obtain the required number of samples to
accumulate the required data.

3.3 Research philosophy

It has been ascertained that the research philosophy is the determination of beliefs that
helps in scrutinising the understanding about the viewpoints developed related to the subject
matter. In addition, it helps in explaining the application of knowledge to attain the set
objectives. It can be further mentioned that research philosophy develops presumptions that
assists in conducting the research (Hair et al. 2007). On the other hand, knowledge of research
philosophy can help to discuss the presumptions comprised in the research progression. In that
relation, it can be mentioned that the by having philosophical understanding, the researcher has
been able to clarifying and refining the research techniques employed in the research work. This
in turn, has been supporting in acquiring the factual data and appropriately retort to research
questions. Research philosophy is segmented into positivism, realism and interpretivism.
Positivism supports to apply the logic to analyse the hidden information and facts in the logical
way. Interpretivism is about to define concepts of natural law and helps in observing the
behaviour of people to collect the information. Realism is the mixed approach of positivism and
interpretivism for describing the application of beliefs in the research to generate the required
information (Kumar, 2010).

40
 Figure 12: Research philosophy
(Source: Showcase, 2014)

3.3.1 Justification on the selection of Positivism Research Philosophy

For the current research study, the researcher has applied positivism research philosophy
to assess the impact of innovative or digital growth strategy to capture maximum percentage in
the luxury industry. By using the positivism philosophy, data evaluation has been effectively
carried out. Empirical and measurable evidence has been collected in this research process by the
evaluation of the secondary research evaluation through the authentic books, journal and news
article selection process (Marczyk, DeMatteo and Festinger, 2005). As per the selected research
philosophy, the researcher has the positive opportunity for accumulating the general information
from the concerned people. However, it has been determined that while using the positivism
philosophy, the investigator has maintained that no importance or value is placed on the personal
beliefs, which could impact the research study. It is connected with experiments and
observations majorly for accumulating the statistical information linked to the field of study
(Matthews and Ross, 2010). The merit of research philosophy is that both the dependent and
independent variable of this research can be examined by the process of making proper data
evaluation. The significant factor is that the evaluator process of making proper observation of
41
the research process can maintain the data evaluation. Apart from that, it can be pointed out that
the researcher has been successful in generating quantifiable outcomes, which supported in
determining the reliability and dependability of the study. It has been identified that if the
numerical data is inaccurate then positivism research philosophy would be ineffective for the
research (May, 2011). Therefore, the researcher has maintained that all the collected statistical
information is in sync with the research questions developed.

3.4 Research design

Research design supports in discussing the framework that assists in selecting the
collection and analysis pattern. A specific type of approach is employed during the data
collection procedure which supports in quality description of the research design. Exploratory,
descriptive and explanatory are common forms of research design which are usually applied by
the researcher. It has been studied that exploratory design is helpful to acknowledge several ideas
and opinions required for completing the research work (Saunders, Lewis and Thornhill, 2007).
Explanatory research design, on the other hand, explains the occurrence of events and its effect
on the subject matter. For obtaining the details as to state occurrence of incidents with proper and
detailed description of research topic, descriptive research design is applied.

3.4.1 Justification for selection of the chosen Design

Descriptive research design is chosen in this research study where description takes place
by considering subject matter of the research work. The selected research design is suitable as it
helps in defining the key objectives set for the research study. The most significant factor is that
the descriptive research design is helpful in discussing the collected information and data in
detailed manner. By using this research design, the researcher has been able to effectively
describe the growth and expansion strategy of Indian luxury cosmetic brands. Moreover, the
procedure and analysis of the literature review has been appropriate done which is very helpful
for the data gathering management process of the research. The descriptive form of research is
very much effective in the data observation process of making business observation of the
research work (Singh and Bajpai, 2008). The descriptive form has enabled the researcher to
evaluate and make explanation of the issues and challenges that the luxury brands of India is

42
facing in order to expand in the global market place. On the other hand, it can be mentioned that
the business expansion process of luxury cosmetic brands in India is explained very properly and
also observation has been done by the in-depth analytical observation of the collected
information. The most significant aspect of descriptive research design is that related data in the
research can be managed very properly in order to carry out effective evaluation and assessment
of information (Kumar, 2010).

3.5 Research approach

Research approach is needed so that format required for carrying out the study can be
effectively revealed. It has been determined that either inductive or deductive approach is applied
by the researchers to conduct specific research study. Inductive approach focuses on to study the
research topic when there is not sufficient information and data about the selected subject matter.
However, observation is the initial phase of inductive approach, which supports to gain relevant
information that further assist in determining the specific structure of the research (Matthews and
Ross, 2010). On the other hand, deductive approach is utilised for describing the practical
application of the existing models and theories related to the research topic. However, it is
considered important by various researchers and scholars to determine the nature of the study
and research topic for selecting the appropriate research approach.

3.5.1 Justification for selection of the chosen Approach

Deductive approach suitable one for the current study as it helped in deducing the
information by the evaluation of the secondary research and existing theories and concepts. The
utilisation of deductive approach has helped the researcher to develop hypotheses that further
helped in carrying out proper inspection to assess the hypotheses. The benefit of applying the
deductive approach is that it assisted in accumulating both quantitative and qualitative data along
with making association between dependant and independent variables (Berbegal, 2013).
Furthermore, the selected approach allowed the researcher to examine various concepts to
ascertain the clarity of different contents of the research study. By applying deductive research
approach the researcher can figure out the issues and challenge in variable selection. The
process is very simpler to access dependability of the hypothesis testing on the secondary data

43
collection. Apart from that, it can be mentioned that the application of deductive approach is
useful to abstract and simplify the complex issues related to research topic by segmenting into
different parts, which helps to understand the research content in a proper manner. It has been
identified that within shorter span of time, both inferences and analogies with the theories can be
determined by the researcher (Marczyk, DeMatteo and Festinger, 2005). On the other hand,
deductive approach has one drawback. If the researcher fails in considering the right amount of
sample then it is highly likely that counterfeit conclusion will be drawn. Therefore, the
researcher in the current study has maintain to select sample size which is reliable enough to
meet the research objectives successfully.

3.6 Research Strategy

As per the study of Marczyk, DeMatteo and Festinger (2005), research strategy can be
explained as the procedure to understand the way to gather data that is suitable for the proper
research outcome. The progressive form of research can be maintained very properly. The
questionnaire survey research strategy has been applied in this research for the evaluation of the
data gathered. The growth and expansion strategy of the luxury cosmetic brands have been
examined by the procedure of making observation process in order to carried out the research
process in an appropriate and effective manner. It has been determined that the use of
questionnaire survey strategy helped the researcher in providing the scope to gather statistical
data from the concerned people to understand the role of growth and expansion strategy in
capturing large market share in luxury cosmetic industry of India. The survey has been carried
out upon the respondents who have understanding on the role of growth and digital branding
strategy in order to capture large market share in the industry. From the opinion of the customers
of luxury cosmetic brands, determinative objective of implementing growth and expansion
strategy has been described and evaluated very properly.

The close ended questions are justified as it can provide efficient way in the
determination of the key objective of the research. The close ended questions set out variable of
the research process. Questions are asked which are based on the likert scale, where 1 is ranked
as strongly disagree, 2 as disagree, 3 as neutral, 4 as agree and 5 as strongly agree.

44
3.7 Data Collection
The selection of specific data collection method is helpful to gather information and facts
that assists in studying any research topic with better details. It has been ascertained that data
collection is useful to accumulate accurate outcomes for achieving the research objectives.

3.7.1 Data Sources: Primary and Secondary

For carrying out research study, it is important to determine the appropriate sources of
data which supports to extract information as per the requirements. It has been identified that
primary and secondary are the two data sources that are usually applied to gather required and
relevant information in context of the undertaken research topic. For collecting the raw data,
primary data is considered crucial as it helps in understanding the real-time situation (Kumar,
2010). Furthermore, it can be mentioned that the first-hand information can be more reliable,
which can effectively fulfil the requirements of the research study. On the other hand, it can be
mentioned that secondary sources are based on existing literatures and researches related to the
research topic (Kumar, 2010).

For the current research study, the researcher has considered the primary data sources to
gather information through questionnaire survey. It helped in understanding the viewpoints of
the concerned people about the growth strategy used by the luxury cosmetic bands in India to
expand market share and attract customers.

Secondary data is another data collection technique, which is usually applied to obtain
data and information from various existing or secondary sources (Kumar, 2010). The researcher
has gathered information from several online and offline platforms such as books, journal
articles, libraries, newspapers, and company’s annual report. Nevertheless, it can be mentioned
that the investigator in the current study has obtained data from online sources, books, e-books,
libraries and digital libraries such as EBSCOhost and Emerald Insight, etc.

3.7.2 Data analysis Techniques

The SPSS data collection tool has been utilised by the researcher for analysing the
collected information, which has been very much helpful for the maintenance and evaluation of

45
the research outcome. Furthermore, the researcher has used regression and correlation analysis
for assessing the collected data in an effective manner. In addition, reliability testing has been
done to determine the relationship between the data. On the other hand, it is to be mentioned that
statistical tables have been used to present the data, which has been useful to assess and interpret
the numerical data into descriptive and understandable form.

3.8 Population and Sample

Simple random sampling has been applied by the research to find out the required
number of sample size from whom the required and relevant data can be obtained. Under the
random sampling, all the population has the equal opportunity to be part of the survey. However,
it is to be noted that individual have been considered who are engaged in the online shopping for
luxury cosmetic brands in India. For the questionnaire survey, 100 customers of luxury cosmetic
brand in India have been selected to assess the growth and expansion strategy adopted by them to
attract potential consumers.

3.9 Ethical consideration

Some research ethics have been maintained for conducting the research process very
effectively. The researcher has maintained the rules and regulation of the Data Protection Act
1998. The respondents who are involved in this research process are not pressurized to give their
opinion on the question. Both the open ended and close ended questions must be presented in the
survey list. The researcher protected the personal information of the respondents who are
involved in this research process. Moreover, the collected data has not been used for any kind of
illegal purpose rather for academic purpose.

3.10 Research limitation

Some limitations have been found in the process of carrying out the research process very
significantly. In this research, there has been time limitation and data limitation. The time
limitation has been affected on the process of carrying out the survey for collecting data from
consumers. The sample size that has been collected in this research for the survey is small for the
vast level of information gathering process. In order to carry out this research the sample size
could have been larger. It can be further mentioned that at times, it has been difficult to control

46
the behaviour of respondents as some of them casually answered the survey questions, which
were of no use.

3.11 Summary
It can be concluded that data collection can be considered as the process to make proper
observation of the research process. Different types of data collection method have effective
impact in the evaluation of the data process. By explaining and predicting the research
phenomena, data collection for the particular research process can be maintained very properly.
Data collection method of this research process is the form to complete the research.

47
 CHAPTER 4: FINDINGS AND DISCUSSION
4.1 Introduction

The current section has emphasised on presenting the results, which have been acquired

through questionnaire survey. The responses of the consumers of different cosmetic brands have

been helpful to understand the strategies used by them to promote their brands in India. From the

regression analysis and descriptive analysis different factors behind the growth and expansion

strategy of an organisation can be evaluated very significantly. From the gender analysis, total

response frequency behind the observation has been understand eventually. The maximum

percentage has been identified are female who are involved in the activity on online shopping.

Innovative growth strategy related information has been identified very significantly by the

evaluation of the data analysis. Analysis has been done on the Indian fashion brand Color

Essence.

4.2 Descriptive Analysis

48
 Based on the above result, it can be observed that responses of female counterparts have

been more in comparison to male. 37% of male consumers were engaged in the survey whereas

63% were female. However, the responses from both genders have been helpful to understand

their perspective about the cosmetic brands and the strategies applied for promoting their

products. The response variety related information is helpful in order to deal with the outcome

evaluation related factor of the research study. The gender analysis in the research is very much

helpful in order to deal with the research outcome related analytical observation. Most of the

respondents are female in the research who are mostly participated in this research survey.

The result obtained clearly indicates that 11% respondents were having 15-20 years of

age, 33% were between 21 and 25 years, 35% were between 26-30 years and 21% were between

31 and 35 years. The inclusion of respondents from different age brackets have been effective to

know their opinions about the cosmetic brands in India.The maximum frequency in response

giving is found to be the customers of the 26-30 years old who are mostly involved with the

activity in purchasing goods and products of the market through the online shipping process.

The opinion of the responses has the effectiveness in making proper observation of the data and
49
the analytical observation. People’s interaction with the fashion brand has effectiveness to help

in the growth and expansion process. The observation is very helpful in order to make

progressive form of innovation of the organisation. Main target customer of this company is the

young fellow who can be attracted very highly by the service quality of the products.

Majority of the respondents (42%) replied that they purchase luxury cosmetic products

within 30 to 60 days. 23% of the participants answered that within 15-20 days they buy the

luxury cosmetic products. On the other hand, 20% said they purchase the products within 15

days whereas 15% replied that they take more than 60 days for buying the luxury cosmetic

products.

The growth and expansion strategy of Color Essence is very helpful in order to make

their position in the market place. From the opinion of the respondents it has been found that

people’s initiative has been found in the online purchase is very slow for the maximum

respondent. 42% revels their monthly online shopping related activity in the business innovation

related factor. The focus must be given more in the online marketing process of the organisation

and high level of digitalization. Digital marketing is the form that increase higher level of

customers attraction in the market.

50
4.3 Regression Analysis

To measure the coefficients of the variables, regression analysis has been utilised. It

helped in understanding the extent to which independent variables impact the dependent

variable.

The model summary table clearly presents that there is a positive relationship between

the model and dependent variables. It has been determined that there is 46% of the variance in

the data. Therefore, it can be indicated that the data gathered are more related to each questions

asked from the respondents. The table shows that R Squire result has been estimated as .458 that

indicated that response focus has been highly given on the changing online strategic reformation

process. The online shopping process has been considered as the most suitable procedure in

making higher level of customer attraction and to maintain business innovation through the

progressive manner.

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 The mean square result has been estimated by the regression analysis is 2.681. The

procedure shows that responses are given more stress on the online shopping process that can

ensure growth and expansion factor of the company. The regression test result indicates that

Dependent variable digital marketing strategy has been indicated as the digital marketing

strategy is suitable in order to deal with the product differentiation process and service

management process of the organisation. The digital branding strategy is suitable in order to

make growth and improvement process of the organisation. The strategic innovation process has

been found to be the important process in the growth factor in the business explanation.

52
53
 The regression analysis result shows that there is high dependency of the digital branding

strategy of thecustomers digitally communicating with the luxury cosmetic brands. Both

significance and beta value are positive, which indicates that the luxury cosmetic companies

have better prospective to reach out to potential consumers through digital communication
54
 It has been found that digital branding strategy of luxury cosmetic firms in India is

dependent on the consumers to gain maximum benefit in the competitive luxury cosmetic

industry. The beta value of 0.268 and significance value of 0.010 indicates that there is high

possibility for organisations in the cosmetic industry in India to compete strongly in order to

attract high number of customers.

The beta value of 0.067 and significance value of 0.595 shows that by adopting digital

branding strategy, the cosmetic brands in India are able to create their presence on the digital

platforms like Facebook, Emails, websites and other, which supports in developing awareness of

brands among the consumers. Thus, it is clear that by using digital media platforms, customers

can collect desired information about brands, thereby making purchase decision.

It has been determined from the finding that the success of digital branding strategy of

cosmetic companies significantly linked to the market share obtained by the organisations. The

significance value of 0.001 and 0.402 beta value clearly indicates that the luxury cosmetic

companies can generate high market share by increasing their presence on different digital

platforms.

55
4.4 Correlation Analysis

56
 The correlation data has indicated the fact that the Pearson coefficient that the possibility

of knowing the brand from the digital platform and social media such as Facebook has the

highest possible correlation with the search engine searching possibilities in the cosmetic

industry with the value of 0.663. Based on this the role of digital branding is essential for the

determination of the marketing of the cosmetics brands especially the skin care products.

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4.5 Reliability Analysis

Reliability Statistics

Cronbach's Alpha N of Items

.893 13

The Cronbach’s Alpha value has been determined using SPSS tool and it has been found

that the value is 0.893. Comparing it with the standardized value it can be said that the data is

highly reliable.

4.6 Discussion

With the changes that are occurring in the cosmetic industry, it has been realized that

there is lot of dynamism noticed in the choices and preferences of the customers. As mentioned

by Bhandari, (2018) the needs and demands of the employees is changing frequently and thus

there is immense pressure being faced by the retailers of the luxury cosmetic brand to make such

changes in their retailing. It may cater to the needs and demands of the highest share of

employees in the cosmetic industry in India and other countries. It can be stated from the

research work of Cavender and Kincade, (2014) that considering the need for innovativeness in

the cosmetic industry for enhancing the possibilities of the growth strategy, the need for resorting

to digital marketing and branding for the global marketing strategy for the marketing of the

cosmetic brands. The survey questionnaire that had been formulated for the purpose of the data

58
collection reflects upon the scenario of the market as well as the demand for cosmetics in Indian

as well as global market. It has also been found that the increased level of competition in the

cosmetic industry globally has been due to the increased level of demand for cosmetics around

the world and this has also led to increased level of competition. As per Chang and Chung,

(2016) this has led to increased need for innovation in the cosmetic industry for being

competitive and to emerge victorious against the competitors. Thus, the questionnaire that has

been formulated has been to address the need for examination of the factors that are required in

the cosmetic industry for effective growth strategy. The discussion shall be upon the descriptive

analysis of the customers for the cosmetic products in the global cosmetic industry.

From the descriptive analysis that had been conducted upon the customers, it has been

found that in the questionnaire survey, the percentage of female participants had outnumbered

the number of male customers. It has been seen that in comparison to the 37% male customers

that have taken part in the survey, there is participation of 63% female customers. This

percentage difference in the participation of the customers reflects upon an important supposition

in the cosmetic industry. According to Chang and Chung, (2016) descriptive analysis thus

reflects upon the demand structure and the focus of the cosmetic brands in the cosmetic industry.

The descriptive analysis also reflects on the demographic segmentation of the market of luxury

cosmetic brands in India and globally. The analysis of the data received thus suggests the fact

that the demographic segmentation in the cosmetic industry is dominated by gender based

segmentation. Thus the brands, in the cosmetic industry when they launch new products in the

market in India and globally, focus on the gender based segmentation. Based on the data

gathered from the descriptive analysis, it had been established that the female customers form the

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niche market for the cosmetic industry in India and global market. The participation from the

female customers also reflects upon the fact that there is dominance of the female customers in

the industry and that majority of the brands that exist in the industry address the needs and

demands of the female customers in major cases. However, as per Chang and Chung, (2014) it

cannot be denied that male customers also have 37% in the participation and that shows that

contrary to assumptions that female are the only customers for the cosmetic companies, the

companies also have male customers. Thus, it can also be added here that the growth strategy for

innovation in the cosmetic industry might also include targeting the male customers in greater

degree and cater to their demands for cosmetics also. Considering the fact that the female

customers have the largest share, as customers, in the cosmetic industry, advertisements and

products that are introduced, address the female customer needs primarily.

From the results, it is clear that primarily the women customers in the age group purchase

the major share of the cosmetic products in India and the global market 21 years to 35 years in

the cosmetic industry. Thus, for the purpose of innovation for better growth opportunities, there

would be need for addressing the needs and demands for customers among the women customers

in the age group 21 years to 35 years. Since it has been realized that the aim has been to engage

in digital marketing strategies and branding of the cosmetic brands on digital media platforms for

innovation, there would be need for targeting the women customers in the age group 21 years to

35 years on the digital media and social media platforms. This age group that has been found to

be the most responsive to the purchasing of cosmetics from the luxurious cosmetic brands is also

very responsive and active on the digital media and social media platforms. As per Kapferer,

(2014) it can be stated that it would be easier and convenient to address this target customer on

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the digital media platform on the social media platform and branding advertisements. Since

women customers in the age group 21 years to 35 years cover the majority share in the cosmetic

industry, it also be stated that there are positive opportunities for the cosmetic companies to

improve their growth strategies as this age group is a huge margin and that the demands for

cosmetics in this age group does not fluctuate much. It can also be added that the advertisements

need to be formulated in a manner that the demands for cosmetics from the luxury cosmetic

brands are displayed aptly. Moreover, the ads need to cater to the beauty issues and problems

that the women customers in the age group 21 years to 35 years face for better opportunities of

growth.

On the basis of the understanding of the data that had been gathered on the purchasing

habits of the customers in the questionnaire it can thus be stated that majority of the respondents

that are primarily women purchase cosmetics once a month. It has been found that the 42%

respondents have admitted to have buy luxury cosmetic products in one month or in two months.

This shows good frequency for the purchase of the cosmetics. Moreover, it has also been noted

that 23% of the participants buy the luxury cosmetics product within 15-20 days. In this respect,

it can be stated that the purchase frequency for the luxury cosmetics product is very high and the

customers purchase the luxury cosmetics product in little time gap. There are very few customers

that buy the luxury cosmetics product infrequently (15%) and thus overall the data reflects on the

fact that the market for the luxury cosmetics products is very current and dynamic and that it has

good market in the Indian as well as global market. Macchion Danese, and Vinelli, (2015) has

mentioned since majority of the customers buy the luxury cosmetics products frequently, there is

good scope for the companies and brands in the cosmetic industry for future growth. Moreover,

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it can also be added that since the purchase frequency for the luxury cosmetics product is very

high and the demands of the customers is frequently changing, there is immense pressure on the

companies in cosmetic industry to offer new products frequently. The frequent purchase of the

luxury cosmetics product by the customers also suggests the fact that the customers believe in

experimenting with the products and are willing to buy new products for their beauty and skin

care and often try new products frequently. In this matter, it can thus be deliberated that since the

purchase frequency is high and the time lag in the purchase is low, the luxury cosmetics products

need to be innovative every time a new product is launched in the market. If the new product that

is launched in the market, in the cosmetic industry in India and globally is not innovative then

the product would fail to attract the niche market. Moreover, Malhotra and Choudhury, (2017)

has mentioned that the innovative product also needs to be frequently placed in the market and

there is also need for effective market strategies and advertisements for marketing the luxury

cosmetics product. If the marketing is not effective and attractive then it would fail to attract the

customers and the luxury cosmetics product would go unnoticed.

From the data that had been gathered from the regression analysis, the relationship

between the independent and dependent variable has been understood. It has been seen that since

there is variance of only 46% in the data in the regression analysis, it can thus be stated that the

independent and dependent variable are closely related and that the dependent variable and the

independent variable have positive correlation. In this regard, it can further be elaborated that the

digital media advertisements and the media advertisements and branding has positive correlation

with the luxury cosmetic products. Wong and Dhanesh, (2017) has mentioned it can also be

stated that the independent variable that is the luxury cosmetics products in India and global

62
market is closely dependent on the digital media advertisements and branding strategies. In this

manner it can also be stated that the innovative strategies that would be formulated for the

growth strategies can focus upon digital media advertisements. Since the data variance is only

46%, keeping certain other factors intact such as the market and environment conditions, digital

media advertisements can be used for impacting the innovation strategies in the market of luxury

cosmetic industry. In this manner it can also be elaborated that if the advertisements are not

effective and attractive then it can also have negative impact on the growth strategies of cosmetic

industry in India as well as global cosmetic market. This is because the variance data in the

regression is only 46%. The data from the regression analysis also states that the data that had

been gathered from the questionnaire also effectively addresses the responses. It can also be

stated that the responses gathered can be effective for analyzing the relationship between the

independent and dependent variables.

From the analysis, it has been found that stress has been given on the acceptance of the

dependent variable digital marketing strategy related evaluation in the marketplace. The analysis

shows that Color Essence has been focused on the digital marketing strategy for the evaluation of

the business management. In the market entry process, it is very necessary for the organisation

to make the target customer happy. The online branding strategy is another form for the

evaluation of the process of making target audience attraction. In the age of digitalization,

concentration has been given very highly on the organisational attractiveness. From the market

analysis of Color Essence, essence, it has been found that business motivation and improvement

is highly dependent on the position of the company. In order to expand properly in the market

place, Color Essence has to be focused on the business-related innovation. The realities brand

63
management and market innovation, it has been found that target market strategy is highly

dependent on the digitalization. Wong and Dhanesh, (2017) has mentioned the growth and

expansion can be influenced by the notion of branding process through the online platform. In

the higher-level business orientation, it has been found that product and service related

improvement can be possible while the products are highly purchased by the company. Apart

from that, it is the case of high level of growth and expansion management process. The market

also includes some important factors such as product differentiation process and service.

Macchion, Danese and Vinelli, (2015) have mentioned the market innovation and marketing

management process of Color Essence can be improved by the level of expansion strategy that

they have been given for the organisational development. Online platform in now a days is very

easy to access to get high level of interaction with the customers. Online business marketing

strategy is helpful in the evaluation process of maintaining long term business improvement.

Respondents opined about their high interaction with online channels and application to purchase

goods and products. The respondents opined that the online platform provide them the

opportunity to have information on the goods and products. It can further be analysed that online

strategy and initiatives are effective to make operation in maintaining customer’s efficiency.

Branding strategy can provide the chance to have progressive growth and operation. In most of

the case, it can be said that business strategy for the product development is based on the

feedback that can be taken from the customers. Product and service related orientation of Color

Essence can be developed if they can renew their product and service related differentiation

strategy. The growth and expansion of Color Essence can be improved if they can focus on the

expansion strategy. The online marketing platform of the company can be improved very

64
properly by the changing factor of the market. The product and service related orientation

through the online platform can be maintained as the procedure to improve business related

efficiency in the marketplace.

As per Theurillat and Donze, (2017) the growth and expansion strategy of Color Essence

can be improved through the digitalization. The investigation demonstrates that Color Essence

has been cantered around the computerized promoting methodology for the assessment of the

business the board. In the market passage process, it is extremely fundamental for the association

to satisfy the objective client. The web based marking system is the another shape for the

assessment of the way toward making target group of onlookers fascination. Macchion, Danese

and Vinelli, (2015) have mentioned in the period of digitalization, fixation has been given

exceptionally on the hierarchical engaging quality. From the market investigation of Color

Essence, pith, it has been discovered that business inspiration and enhancement is exceedingly

subject to the situation of the organization. So as to grow legitimately in the commercial centre,

Color Essence must be centred around the business related development

From the opinion of the respondents, impact of digitization on the business expansion has

been clearly been identified. The research report shows that maximum percentage of youth

generation are likely to carry out their product and service management related activity through

the online store as recent updates on the service related innovation can be taken by this process.

People are more likely to foreign brands that can created slowdown of the foreign brand in the

business. The three factors which bind the relation between dependent and independent variables

are satisfaction, loyalty, and image of brands. For the growth and expansion related

improvement, organisation needs to be more focused on the choice of the customers. The

65
product and service related orientation can eventuallybe improved by the notion of marketing

strategy.

From the ANOVA test result different types of digital strategy has been described that are

using by the organisations for the business development. Color Essence has been focused on

different types of online strategy that can provide them effectiveness to meet with organisational

improvement. The most significant factor is that customer’s trust on the luxary brand can be

improved and decreased by the online platform. Color Essence has been expanded globally by

the social media and digital media. As per Theurillat and Donze, (2017) the strategy of digital

media can be considered as the procedure to make proper business improvement. Marketing

advertisement through the digital strategy is helpful for the operational success of the company.

Different operations have been developed in the company to improve the idea to attract

customers. By the evaluation of the global business market, it has been identified that Facebook

and twitter is the way to make higher level of customer attraction. The social media and digital

media can be considered as the important way in improving growth and expansion process of the

company. In most of the case Color Essence is likely to make proper operation in the

management process of the company. In most of the case, it can be said that operation related

evaluation of the company can be developed significantly by the operation that is taken by the

company. The respondents evaluated about the negative impact on the growth and expansion

process of the company. The procedure is effective to understand objective of making proper

market expansion. Business innovation and operation are two important t part in the business

where social and digital media works as the bridge to improve marketing operation of the

company. The most significant factor is that service related efficiency of the business

66
development process. Social media and digital media operation in the business has fruitful result

to maintain organisational initiative. The most significant factor is that the growth and expansion

strategy in the business can be considered as the procedure to make suitable relationship with the

customers. In the customer engagement process, it has been found that Facebook, twitter and

Instagram can be considered as the safest platform for the organisational development. The

growth and expansion strategy in the company is used to differentiate their goods and products

with other company. In the market, the business, Color Essence is facing issues due to the

negative feedback of the customers. This procedure can come up with the negative impact for the

marketing operation development.

As per Theurillat and Donze, (2017) digital platform along with the users’ review has

positive impact on the marketing operation management. The service related operation in the

market can have suitable impact to make the customer aware about the goods and products that is

giving by the company. Apart from this, it can be said that, respondents said about the growth

and expansion process in the market. People have trust and faith in the business operation to

make business improvement process. The business improvement process can be generated. The

operation management process in the market has effectiveness in order to deal with business

improvement process.

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 CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
5.1 Conclusion

Therefore, in the digital era, entering the market in different cities has become easier for

the luxury brand. With the help of the digitalization, the organizations have been able to reach

the people at a shorter span of time. Therefore, many of the luxury brands have been expanding

the business in an effective manner. It has been found that the organizations have been

implementing different theories of business that has helped in the growth and development of the

business in a faster pace. With the execution of the business theories, the organization has been

to adapt the culture of different market in different cities in an effective manner.

With the expansion of the business of the luxury brand, the level of the profitability has

been increasing. This has increased the pace of the growth and development of the companies.

Due to this reason, the culture of different markets has been adopted. Many new employees have

been hired within the organizations due to which the level of the employment has also been

increased. This has led to robust of the workforce of the luxury brands.

5.2 Linking with the objectives

Objective 1: the proper analysis of the variables which were adopted by the cosmetic

brands dealing globally to expand their business in various cities of India

In the literature review, it has been found that the cosmetics brands have been using many

business models and theories for entering into the markets of different regions. The business

models and theories adopted by the luxury brands have helped the organizations in the expansion

68
of the business in the global market. One of such companies is Color Essence. With the adoption

of the pyramid business model, the luxury brand has been segmenting the markets in an

appropriate manner. It has been found that in the earlier scenario, the luxury brand found it

difficult to enter the markets in the different regions.

In the chapter 4, it has been found that the luxury brand has been using the social media

for the purpose of marketing. The dependency of the people on social media has been increasing.

Due to this reason, the organizations have been using many websites of the social media for the

advertisement of the products offered to the people. With the marketing through social media,

reaching the people has become easier. Due to this reason, the luxury brand has been able to

advertise the products in different markets in an effective manner.

Here, use of digital marketing strategy is discussed with respect to luxury skin care

industry. Benefits of using digital branding is explained here. The role that plays by digital

marketing for luxury skin care products is demonstrated with relevant theories. The role of social

and digital media has taken up the cosmetic brands up by a storm. The highly competitive

cosmetics market has identified the potential of social media branding and the implementation of

digital media. These new technologies assist in the business on a social media platform. New age

customers are hooked onto social media platforms like facebook, twitter, Instagram. This gives a

cosmetics brand like colour essence an edge. In this aggressive new age marketing strategies,

promoting and selling in social media platforms is a rage. This is possible only due to the advent

of the digital technology or platform. The age of smartphones and smart gadgets completely

revolutionised the way people used to do things.

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 Objective 2: Proper analysis of the opportunities considered to be global by the dealers

who are dealing with the growth of the market in the industry of cosmetic brands in India

In the literature review, it has been found that the digitalization has been considered has

one of the opportunities for entering in the global market. With the digitalization, the

organizations have been using many new and advanced technologies. With the adoption of the

technologies, the organizations have been able to analyse the markets of different regions. Due to

this reason, the organizations have been developing the strategies in such a manner that has

enabled it in attracting the consumers of the different markets. With the execution of some of the

technologies, the organizations have been reducing the cost of the operation of the products of

the luxury brand. Due to this reason, the organizations have been offering the products to the

consumers at a reasonable cost. The people of all classes have been able to afford the products of

the luxury brand. Due to this reason, the demands for the luxury cosmetic products have been

increasing in the markets of different cities. This has led to the creation of many business

opportunities. This has helped the companies in the expansion of the business in a faster pace. It

has been found that the organizations have been adopting many new and advanced technologies

within the business. This has helped the companies in adopting the changes that are required to

capturing more portions in different markets of the cities.

Here the concept is based on the global luxury brands in India and the ways innovative

growth strategies needed to analyse the market, maximise profits and the role of social media.

Some luxury brands have been discussed earlier in chapter one. Out of which, colour essence has

been given the priority for its creative excellence, brand exclusivity, premium segment products,

sophisticated craftsmanship, and high market value. The importance of luxury brands comes

70
from the fact that it reflects the rarity and exhibits exclusive charm. All the more, the advent of

social media in this digital age adds fuel to the flame. Taking the assist of social media to

establish a brand (here, a luxury brand) has been both a boon and a curse. With unlimited scope

and availability, comes tough challenges.

5.3 Recommendations

For development of the global luxury cosmetics in Indian market it is very much required

for the global cosmetic brands to take care of the aspect of development of its brand image along

with attracting the new customer segment and the whole operations of the business are required

to be based on development and controlling of the effective distribution channels. Therefore, the

following recommendations will be helpful for the international luxury cosmetic brands to be

successful in case of developing the growth strategies of the cosmetics companies.

• One of the most important aims for the global luxury cosmetic brands will be to adopt

the strategies for developing deeper sense of satisfaction in the minds of the

consumers and thereby creating such an image of the brands that will be irreplaceable

by other cosmetics brand available in the market. The brand development as well as

marketing strategy by the companies will be aimed at to be easily identifiable by

customers.

• The people of India are becoming highly technology oriented and specifically in case

of searching product information through the digital media and engaging in use of the

online media for buying the products. Therefore, all sorts of luxury cosmetic brands

of global level will mainly target strategic promotional aspects with the help of

adopting the social media based marketing strategy mainly.

71
• The global cosmetic brands, while developing their business in Indian market, are

required to be making application of the wide ranges of digital and online marketing

strategies. This will be helpful for the companies for reaching to millions of peoples

and in different market segments and thereby attracting new customer bases towards

the luxury cosmetics and beauty products.

• The global brand must ensure being in consistent touch with the customers from

different market segment by ensuring seamless communication of all the new product

information to the consumers. Apart from this, it will be one of the most effective

steps in case of reaching to the new customers also apart from being oriented towards

the existing customers.

• The global cosmetic brands will also be mindful regarding taking care of the aspects

of development and spread of their brand story, which will encompass the history and

spirits of the luxury brands. The complete commitment of the companies in case of

product designing and development will be solely reflected in the shape, colour, and

fragrance of cosmetic products in considerable details. This will help the brands in

causing the customers a specific feeling of using the products every time.

• For gaining success in case of expansion of the luxury cosmetic brands in the Indian

cosmetics market, it is one of the most important requirements for the overall

marketing strategy that the designing of products must be innovative. Developing the

profound and gorgeous designed products will help the luxury cosmetic brands

attracting the Indian consumers of higher classes in easier ways. However, another

72
 very important aspect in this connection will be to take help of the modern technology

for achieving greater success in overall growth of the business.

• Applying the most advanced technology-based marketing of the cosmetic products

will help the customers in the Indian market to sufficiently exploiting the market

scopes in cosmetics. This will be great opportunity for the cosmetic product brands

for experiencing successful market growth in India.

• One very effective step towards developing the business opportunity in the Indian

market will be to introduce a perfect combination of the product range of luxury

cosmetic products. This will help the brands in reaching increased number of

customer bases in more effective ways as considerable number of the customers will

be attracted towards such lucrative combination and range of the cosmetic and beauty

products along with having the touch of luxury.

• In addition to product designing, the global luxury cosmetic brands will ensure

presence of representation of luxury in the cosmetics that will help the brands in

gaining competitive edge in the markets.

• The global brands will turn their attention towards development of effective supply

chain in personal level in India as without this; effective development and growth of

the global luxury cosmetic brands will not be possible. Apart from this, taking

effective care of the CSR aspects will also be required while operating in the Indian

market as this will be one of the most important success factors in India.

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5.4 Limitation of the Research

The present study has considered mainly the possible best effective growth strategies for

the global luxury cosmetic brands in India, this is also necessary with this respect to consider the

differences in marketing essentialities in case of business growth in India and other developed

countries in Asia. There are brands like Lakme, L’Oreal, Revlon, Maybelline and Himalaya,

which have adopted specific growth strategies in India and specific strategies for different

European and American countries. However, conducting a study regarding important differences

in growth strategies to be required for Cosmetic brands in India, China, USA and UK might be

effective in case of finding out the essential differences. This is significant limitation of the

present study.

5.5 Future Scope of the Study

There are scopes for further studies regarding essential differences between the possible
growth strategies to be adopted by the luxury cosmetic brands in Indian market and in the
markets of other Asian countries and some of the important developed nations like USA, UK and
Japan. Apart from that, social media plays a crucial role in developing market strategies and
knowledge. Using social media, the customer's choices, preferences, requirements, and
problems, every tiny detail can be analysed. This will be highly effective in case of conducting
the further studies.

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 APPENDICES
Appendix 1: Survey Questionnaire

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