TATA CLiQ By: Wasim Rahman, IIT Bombay Objective -
Description: TATA CLiQ By: Wasim Rahman, IIT Bombay Objective - Tata CLiQ stepping into the Beauty Category METHODOLOGY ADOPTED Competition Analysis Competitor growth analysis Key Differentiating factors for Tata CLiQ Secondary Research to identify pain
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slide1. TATA CLiQ By: Wasim Rahman, IIT Bombay<br>
slide2. Objective - Tata CLiQ stepping into the Beauty Category METHODOLOGY ADOPTED Competition Analysis Competitor growth analysis
Key Differentiating factors for Tata CLiQ Secondary Research to identify pain points of Indian Population
Industry Analysis to identify booming products & competitors Data Collection & Analysis Identify Ideal Customers Segmentation to identify Target customers
Identify unique user trends of selected customers Proposed Solution Category/Brand Assortment Plan Product/Service Differentiation Financials Business Model Canvas: Value Proposition & Channel Product & Service Concept Check the validity of the Idea Men Women 55 Mins per day spent on grooming Indian women are concerned about their appearance 75% Go-to-market strategy<br>
slide3. 50+ Female 18-45 age TARGET GROUP Age : 18 – 45 (Millennials & Gen Z)
Gender : Male and Female
Lifestyle : Urban or Semi Urban
Mindset : Fashion & Brand Conscious (branded, premium, natural products)
Income : Middle and upper middle class SEGMENTATION (Resource vs Motivation) UNIQUE USER TRENDS AND KEY DIFFERENTIATING FACTORS (linked to Brand Assortment plan) COMPETITOR GROWTH ANALYSIS Premiumisation has been driving the demand for beauty and personal care products.
Premium beauty products come largely in partnership with a luxury or premium brand. Eg- lipstick launched by L’Oreal in collaboration with Indian couture designer Sabyasachi.
Companies like Freshistry and Emcee Beauties produce customised products taking the needs of their customers into consideration<br>
slide4. BUSINESS MODEL CANVAS FOR TATA CLiQ BEAUTY CATEGORY WHY OMNICHANNEL? Differentiating Factor Tata CliQ is a Phygital store. It already has Online and Offline systems seamlessly integrated with each other. It allows Cross-Category Selling As Consumer Experience is our top priority, Omnichannel will offer more trust than other models as the people will also have an option to physically test the product offline Better Consumer Convenience With Omnichannel, people can choose from: Ship to Home or Pickup at store Cost of Change Tata Cliq is already operating as an Omnichannel. Switching to a different channel will further add costs & complexities Increased % of Perfect Orders It reduces the number of return requests by almost 70% because of option of product trial, select brands & brand authorized sellers. Increased footfall in Offline stores When the Covid situation subsides, more people will visit stores for physical trials, thus revenue will increase both online & offline More Data Collection Greater amount of Customer Data can be collected (offline & online) for personalised offers and product recommendations LONG TERM ADVANTAGE MEDIUM TERM ADVANTAGE SHORT TERM ADVANTAGE<br>
slide5. PROPOSED SOLUTION: PRODUCT & SERVICE CONCEPT Major Differentiators Insights from Primary Survey VR, AI technology for face scan, skin tone detection and recommendations Use Case- Alibaba revealed they had increased their conversion rate by 4x since 2019 after they incorporated “YouCam Makeup AR” on their website. Partner with AI, VR tech companies for apps like Loreal’s Skin Genius, Olay Skin Advisor, Ministry XR. Benefits:- 1. Virtual Product trial
2. Personalized suggestions
3. First mover advantage (in India) 4. Huge drop in customer dissatisfaction - decreased return orders Give monthly/quarterly/yearly subscriptions on certain beauty boxes and packages Benefits:- 1. Customer Retention (increases loyalty)
2. Huge Data Collection for different customers, thus better future personalization 3. Personalized offers and discounts Data Point- A report from Royal Mail forecasts the value of the subscription box market to grow 72% by 2022 Option to opt for online expert advice through Video call or phone call if the customer is not satisfied with AI, VR app. AI/VR technology Beauty Subscription Service Online Expert Advice CATEGORY ASSORTMENT BRAND ASSORTMENT Recommended Brands to launch with, as per their performance in India in 2020:
MAC
L'Oréal
Lakme
Maybelline
NYX
Bobbi Brown
Colorbar
L.A. Girl
Olay
The Body Shop<br>
slide6. FINANCIALS Assumptions:
The proposed initiatives suggested will increase Tata Cliq’s market share in beauty segment by 1% every year
One-time investment of Rs 10 crores is considered for all the offline store’s modernization (improving infra)
Monthly Employee salary considered as per Market standards
ROI calculation is done for next three (3) years
YOY Growth In Sales Turnover assumed around 4 to 5% COMMUNICATION PLAN Promote Organic- Launch Digital campaign #WeCareForYou on YouTube/Twitter to promote natural products Influencer Marketing- Partner with popular celebrities, actors, & social media influencers. Seasonal Marketing- Special offers and discounts in Wedding season, No-shave November, Women’s Day Digital Marketing- Social Media pages, Email Marketing Print Marketing- Popular magazines, newspapers COMPETITORS’ RESPONSE Developing of AI/VR apps or partnering with tech companies Offering More Discounts & Offers on their platforms Shifting towards Organic products Increasing investment in Ads on social Media, print, TV ads Increasing emphasis on personalized and convenient solutions for customers Potential Shift towards Omni-channel as it allows product trial Improving Data Collection and Analytics Units In crore Rupees Tata Cliq is expected to become profitable by 2022 with the initial investment (Rs. 101 cr) expected to Break-even by 2023<br>
slide7. Thank You<br>
slide8. References https://www.export.gov.il/files/cosmetics/ReportonIndianCosmeticsIndustry.pdf
https://www.mintel.com/press-centre/beauty-and-personal-care/indias-dapper-men-average-indian-man-spends-42-minutes-grooming-per-day
https://www.mintel.com/category/press-centre/beauty-and-personal-care
https://brandequity.economictimes.indiatimes.com/news/business-of-brands/indias-cosmetics-market-to-grow-by-25-to-20-billion-by-2025/62845033
https://getshogun.com/learn/pure-play-omnichannel-ecommerce
https://redseer.com/newsletters/online-beauty-market-updates-june18/
http://iimraipur.ac.in/cde/pdf/Nykaa.pdf
https://lapaas.com/nykaa-business-model-detailed-case-study/
https://brandequity.economictimes.indiatimes.com/news/marketing/nykaa-reveales-its-omni-channel-content-and-guided-selling-strategy/70841130
https://yourstory.com/2017/06/tatacliq-flipkart-amazon
https://www.marketing91.com/retail-assortment-planning/
https://yourstory.com/2020/02/nykaa-bigbasket-amazon-cosmetics-industry-startups?utm_pageloadtype=scroll
https://medium.com/the-ken/tata-cliqs-quest-for-profitability-24a6bde8cbee<br>
slide2. Objective - Tata CLiQ stepping into the Beauty Category METHODOLOGY ADOPTED Competition Analysis Competitor growth analysis
Key Differentiating factors for Tata CLiQ Secondary Research to identify pain points of Indian Population
Industry Analysis to identify booming products & competitors Data Collection & Analysis Identify Ideal Customers Segmentation to identify Target customers
Identify unique user trends of selected customers Proposed Solution Category/Brand Assortment Plan Product/Service Differentiation Financials Business Model Canvas: Value Proposition & Channel Product & Service Concept Check the validity of the Idea Men Women 55 Mins per day spent on grooming Indian women are concerned about their appearance 75% Go-to-market strategy<br>
slide3. 50+ Female 18-45 age TARGET GROUP Age : 18 – 45 (Millennials & Gen Z)
Gender : Male and Female
Lifestyle : Urban or Semi Urban
Mindset : Fashion & Brand Conscious (branded, premium, natural products)
Income : Middle and upper middle class SEGMENTATION (Resource vs Motivation) UNIQUE USER TRENDS AND KEY DIFFERENTIATING FACTORS (linked to Brand Assortment plan) COMPETITOR GROWTH ANALYSIS Premiumisation has been driving the demand for beauty and personal care products.
Premium beauty products come largely in partnership with a luxury or premium brand. Eg- lipstick launched by L’Oreal in collaboration with Indian couture designer Sabyasachi.
Companies like Freshistry and Emcee Beauties produce customised products taking the needs of their customers into consideration<br>
slide4. BUSINESS MODEL CANVAS FOR TATA CLiQ BEAUTY CATEGORY WHY OMNICHANNEL? Differentiating Factor Tata CliQ is a Phygital store. It already has Online and Offline systems seamlessly integrated with each other. It allows Cross-Category Selling As Consumer Experience is our top priority, Omnichannel will offer more trust than other models as the people will also have an option to physically test the product offline Better Consumer Convenience With Omnichannel, people can choose from: Ship to Home or Pickup at store Cost of Change Tata Cliq is already operating as an Omnichannel. Switching to a different channel will further add costs & complexities Increased % of Perfect Orders It reduces the number of return requests by almost 70% because of option of product trial, select brands & brand authorized sellers. Increased footfall in Offline stores When the Covid situation subsides, more people will visit stores for physical trials, thus revenue will increase both online & offline More Data Collection Greater amount of Customer Data can be collected (offline & online) for personalised offers and product recommendations LONG TERM ADVANTAGE MEDIUM TERM ADVANTAGE SHORT TERM ADVANTAGE<br>
slide5. PROPOSED SOLUTION: PRODUCT & SERVICE CONCEPT Major Differentiators Insights from Primary Survey VR, AI technology for face scan, skin tone detection and recommendations Use Case- Alibaba revealed they had increased their conversion rate by 4x since 2019 after they incorporated “YouCam Makeup AR” on their website. Partner with AI, VR tech companies for apps like Loreal’s Skin Genius, Olay Skin Advisor, Ministry XR. Benefits:- 1. Virtual Product trial
2. Personalized suggestions
3. First mover advantage (in India) 4. Huge drop in customer dissatisfaction - decreased return orders Give monthly/quarterly/yearly subscriptions on certain beauty boxes and packages Benefits:- 1. Customer Retention (increases loyalty)
2. Huge Data Collection for different customers, thus better future personalization 3. Personalized offers and discounts Data Point- A report from Royal Mail forecasts the value of the subscription box market to grow 72% by 2022 Option to opt for online expert advice through Video call or phone call if the customer is not satisfied with AI, VR app. AI/VR technology Beauty Subscription Service Online Expert Advice CATEGORY ASSORTMENT BRAND ASSORTMENT Recommended Brands to launch with, as per their performance in India in 2020:
MAC
L'Oréal
Lakme
Maybelline
NYX
Bobbi Brown
Colorbar
L.A. Girl
Olay
The Body Shop<br>
slide6. FINANCIALS Assumptions:
The proposed initiatives suggested will increase Tata Cliq’s market share in beauty segment by 1% every year
One-time investment of Rs 10 crores is considered for all the offline store’s modernization (improving infra)
Monthly Employee salary considered as per Market standards
ROI calculation is done for next three (3) years
YOY Growth In Sales Turnover assumed around 4 to 5% COMMUNICATION PLAN Promote Organic- Launch Digital campaign #WeCareForYou on YouTube/Twitter to promote natural products Influencer Marketing- Partner with popular celebrities, actors, & social media influencers. Seasonal Marketing- Special offers and discounts in Wedding season, No-shave November, Women’s Day Digital Marketing- Social Media pages, Email Marketing Print Marketing- Popular magazines, newspapers COMPETITORS’ RESPONSE Developing of AI/VR apps or partnering with tech companies Offering More Discounts & Offers on their platforms Shifting towards Organic products Increasing investment in Ads on social Media, print, TV ads Increasing emphasis on personalized and convenient solutions for customers Potential Shift towards Omni-channel as it allows product trial Improving Data Collection and Analytics Units In crore Rupees Tata Cliq is expected to become profitable by 2022 with the initial investment (Rs. 101 cr) expected to Break-even by 2023<br>
slide7. Thank You<br>
slide8. References https://www.export.gov.il/files/cosmetics/ReportonIndianCosmeticsIndustry.pdf
https://www.mintel.com/press-centre/beauty-and-personal-care/indias-dapper-men-average-indian-man-spends-42-minutes-grooming-per-day
https://www.mintel.com/category/press-centre/beauty-and-personal-care
https://brandequity.economictimes.indiatimes.com/news/business-of-brands/indias-cosmetics-market-to-grow-by-25-to-20-billion-by-2025/62845033
https://getshogun.com/learn/pure-play-omnichannel-ecommerce
https://redseer.com/newsletters/online-beauty-market-updates-june18/
http://iimraipur.ac.in/cde/pdf/Nykaa.pdf
https://lapaas.com/nykaa-business-model-detailed-case-study/
https://brandequity.economictimes.indiatimes.com/news/marketing/nykaa-reveales-its-omni-channel-content-and-guided-selling-strategy/70841130
https://yourstory.com/2017/06/tatacliq-flipkart-amazon
https://www.marketing91.com/retail-assortment-planning/
https://yourstory.com/2020/02/nykaa-bigbasket-amazon-cosmetics-industry-startups?utm_pageloadtype=scroll
https://medium.com/the-ken/tata-cliqs-quest-for-profitability-24a6bde8cbee<br>