Marico: Launching Kaya Skin Clinic
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ICMR HOME | Case Studies Collection
Case Details:
Case Code : BSTA141
Case Length : 09 Pages
Period : 1988-2005
Organization : -
Pub Date : 2005
Teaching Note :Not Available
Countries : India
Industry : FMCG
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Please note:
This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.
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Excerpts
Beauty Industry in India
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The beauty industry in India, though small in absolute terms, was growing rapidly. Valued at Rs 1,500 - 1,800 crores, the industry was growing at almost 25 %. While the beauty industry on the whole was doing well, beauty services in the country were still at a nascent stage...
Kaya Skin Clinic
For years, Harsh Mariwala, the Chairman and Managing director of Marico Industries, wanted to have a presence in the skincare business where several other FMCG companies were already present. But he was looking for the right product to enter the high-margin skincare segment.
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In late 2002, a New York-based company asked Mariwala if he would be interested in selling laser hair removal machines. Initially, Mariwala was not very interested because he felt the product could be commoditised easily. But what surfaced was the idea of a service offered around such machines. That was how the skincare business was identified...
Looking Ahead
In 2005, Kaya's base clientele had gone beyond 40,000 with 97% of Kaya's clientele rating its services between good and excellent. But Kaya faced huge challenges ahead. The biggest of them was scaling up. Unlike HLL, which adopted the franchising route for its Ayush and Lakmé salons, Kaya ran its own clinics...
Exhibits
Exhibit 1: Market shares of Marico's Brands
Exhibit 2: Print Campaign for Kaya
Exhibit 3: Growth of Kaya Skin Clinics
Exhibit 4: Kaya Treatments
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