A Case Study presentation on Kaya Skin Clinic in India

1. THE KAYA CASE STUDY
Group Members – Sheikh Rehmatullah, Shagun
Lidhoo and Prabhav Tiwary

2. A Few Irrefutable Insights
• India is an emerging market that is witnessing radical changes
in the lifestyles and spending patterns of customers.
• There is huge unrealized potential in the Indian Hair and Beauty
Care Industry.
• There is growing desire in the Indians to look good and feel
confident about their appearance, especially for recognition by
others.

3. Difference between Product and Service
Offering
• Case in Mind – Kaya Skin Clinic
Storage
A Product offering can be stored for an indefinite period of time,
whereas a primary Service ends after it is executed.
(Example – Difference between Kaya Skin Moisturizer Cream
Tube vs Facial Treatment at Kaya Skin Clinic)

4. Difference between Product and Service
Offering
Homogeneity vs Heterogeneity
A Product offering will be uniform and standardised in nature.
A Service offering on the other hand may differ according to the
person and organisation offering the service.
(Example – Composition of the Kaya Moisturizing Cream will
be the same, irrespective of the place of purchase.
However, services at different Kaya Skin Clinics may differ even
though efforts are made to make the offering and experience
consistent and standard)

5. Difference between Product and Service
Offering
• Tangibility
Product Offering – Tangible
Service Offering – Intangible
(Example – Texture and consistency of the Moisturizing Cream
can be ascertained by touching the cream and applying it.
Services at the Kaya Skin Clinic have little or no room for
tactility. Service of Manicure can only be felt in the form of
experience, but not touched. )

6. Difference between Product and Service
Offering
Ownership
Transaction involving products result in direct transfer of
ownership from seller to buyer
In case of services, the concept of ownership of title is a
ambiguous and service recipients cannot claim ‘ownership’ of the
received service.
(Example – You own a Kaya Skin Moisturizing Cream, but do
you own a hair grooming service from Kaya Skin Clinic?)

7. Service Offering – First Time and Loyal
Customers
• In case of Product offering, the first time users may give the
offering several chances till the contents of the product are over.
Customer in this case more or less is aware of the needs.
• Especially in the Indian context, families tend to avoid wastage
of such products and tend to give the product some time to
show its claimed effects.
• For Loyal Customers, the product offering may have provided
them with the desired/expected result. As a result, the standard
product is purchased over a period of time and preferred over
the competitors.

8. Service Offering – First Time and Loyal
Customers
• In case of Service Offering, the customer is most of the times
undecided about the right course of action for her skin
treatment.
• Hence, the first time customers would be looking forward to
inputs about ways to improve her skin’s health and look.
• Loyal Customers on the other hand have gone beyond the
identification of problem and have got accustomed to a set of
services provided at the service location. Sometimes they desire
services to be provided by a particular person they have built a
trust in.

9. Service Offering – First Time and Loyal
Customers
• Example
• While buying Kaya Skin Moisturizing Cream, the first time
customer has identified that the sole problem she faces is dry
skin (especially during winters)
• After using this cream once, the satisfaction level decides repeat
purchases and eventual loyalty to the product / brand.
• For someone who has multiple skin problems or is too cautious
to take a call herself, the (potential) customer visits a particular
beauty parlour and seeks the advise of the service providers.

10. Service Offering – First Time and Loyal
Customers
• Kaya Skin Clinic has to step in to make their parlour the ideal
centre for first time customers.
• After it has roped in customers, it has to understand the
dimensions of a loyal customer in a beauty parlour to convert
these first timers into regulars.

11. Advantages of Understanding First Time
vs Loyal Customers of Beauty Parlours
• Kaya Skin Clinic, like any other service provider in the beauty
and skin care industry, would want to serve not just more
customers, but the same clients too.
• Hence the foremost advantage would be that Kaya Skin Clinic
can develop strategies that convert their fresh clients into
regulars.
• Dimensions of First Time and Loyal Customers in Beauty
Parlours would be almost the same in case of Kaya Skin Clinic.

12. Advantages of Understanding First Time
vs Loyal Customers of Beauty Parlours
• Understanding First Time Users and Loyal Customers can help
Kaya built separate strategies for the two groups.
• This will result in focussed marketing activities and the result
and effectiveness on the two separate groups can be measured
better.

13. Advantages of Understanding First Time
vs Loyal Customers of Beauty Parlours
• Questions that Kaya can ask and build their strategy on are–
What features of the parlour induce repeat visits?
What is the first thing that a first time customer expects from
the parlour?
What expected features from the parlour are common between
first timers and loyals?
What attribute is expected by first timers that is ignored by
loyals and vice’ versa?

14. Advantages of Understanding First Time
vs Loyal Customers of Beauty Parlours
• What is the desired level of satisfaction for first time users and
loyal customers?
• Do first timers and loyal customers expect services to
standardised or is there a difference in the approach of the two
groups?
• Do first timers get lured by beauty parlours through Word of
Mouth? Do loyal customers discuss about their beauty parlours
amongst their friend/peer circle?

15. Analysis of Data
• Data has been collected for the two types of customers of
beauty parlours – First Time Users and Loyal Customers
• This data is further divided into three sections
• Section I data reflects the ‘expectations’ of the first time and
loyal customers from a beauty parlour
• Section II data reflects the experience of both the customers
with the beautician / service provider in the parlour
• Section III data reflects the final experience of the respondent
against the corresponding expectation in Section I

16. Patterns in Data
There is a clear variation in the expectation of customers and
the final experience or the result. (Variation in Section I and
Section III)
The realized output or result clearly drops in comparison to the
initial expectation.
The only exception to this drop is in the expectation of the
service helping the customer feel more attractive. In this case,
both – the first timers and loyals responded that the result was
higher than the expectation

17. Patterns in Data
• Amongst both the classes of customers, the variation in
response about the expectation and result is more in ‘First Time
Users’ than in Loyal Customers.
• In other words, according to the data, the gap between the
expectation of first time users and the final experience is wider
than in loyal customers.
• However, there are a few exceptions. For instance, the gap
between expectation and experience of reasonable prices is
(almost) the same for both classes of customers.

18. Patterns in Data
• In response to continuing the service of the beauty parlour, the
loyal customers were more positive in their response than the
first time users.
• The loyal customers are more willing to repeat visits at the
parlour than first time customers.
•

19. Differentiating b/w First Time and Loyal
Customers
• Our Understanding - To identify the differentiating aspect of
decision making, we need to look for the questions which have
produced wider gulfs in the response of the two classes.
• Hence, expectation of customer from employees to help with
initial inquiries about products and services can be used as a
differentiating factor.
• Expectation of loyal customers is much higher in comparison to
first timers.
• Another differentiating factor is the willingness to continue
using the parlour service. Here too, loyal customers are more
willing than first time users.

20. Characteristics of Service Quality –
Customer Response
• Section I and Section III represent two different stages of
decision making.
• Section I represents decision making prior to availing the
service, in the expectation level.
• Section III represents decision making after availing the
service, in the experience level.
• Section II represents service quality in terms of the beautician.

21. Characteristics of Service Quality –
Customer Response
• Various characteristics of service quality can be measured
against different responses in the stages of decision making.
• For instance, ambience feature of parlour has a high expectation
response of 4.21 and 4.27 in Loyal and First time customers
respectively.
• However, the stage of service experience shows a new figure of
4.00 and 3.86

22. Characteristics of Service Quality –
Customer Response
Implication
• This study and analysis indicates how a particular feature /
characteristic is held in importance of expectation, and the level
of satisfaction gained after the experience.
• The variation in response for the particular attribute of parlour
service in decision making stage of expectation and stage of
experience can be used by marketers to identify problems and
devise solutions.