KAYA SKIN CLINIC: CREATING A SUSTAINABLE COMPETITIVE ADVANTAGE WITH CUSTOMERS Ka

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KAYA SKIN CLINIC: CREATING A SUSTAINABLE COMPETITIVE ADVANTAGE WITH CUSTOMERS Kareem Abdur Waheed and Vim Jham wrote this case soley to provlde material for class dsssion. The authors do not intend to Mustrate either emective or inerective nanding of a managerial suation. The authors may have disguilsed certaln names and other dentirying Information to protect confidenta ry. This pubication may not be transmited, photocopied, agtized, or otherwise reproduced in any form or by any means witnout the permission or the copynght noider. Reproduction or th's matenal is not covered under authorzaon by any reproduction rights organization. To order copies or request permission to reproduce materials, contact Mey PuDishing, tvey Business School westem Unversity, London, Ontaro, Canada, NOG ON1;?510.0013208, e) cases@vey.ca: www/veycases.com. Version 2017-04-17 Kaya Skin Clinic (Kaya)2 Middle East had been growing since its inception in 2003, with considerable efforts made to position the brand through defined e-marketing and customer relationship management (CRM) strategies. In 2015, it was time to redefine the brand in the Middle East region. To date, the customization strategy had been integral in delivering the client value proposition Although Kaya was a well-established brand, it was investing in technology. Due to changing market conditions, differentiation strategies through customized solutions were developed for customers. In the Middle East market, Kaya was in heated competition with other local players and with dematologists who were actively creating personal relationships with clients. Kaya's CRM team had developed Middle East-specifie customized skinsciptions Because of growing competition in the beauty and skin care sector, differentiation between competitors was becoming difficult. Every competitor was customizing according to the needs of the client. Kaya also provided customized solutions by taking care of the personal needs of customers and building loyalty Differentiation was the keyword for Kaya, which wanted to work on providing innovative solutions after already being positioned as a skin care expert. In the beauty industry, skin care remained the biggest contributor to absolute growth and comprised approximately one-quarter of total annual revenue. Innovation was a key diver of growth and therefore the focus of players in the beauty industry. Looking at the changes that the Middle East market was demanding, Kaya needed to consider whether combining expertise, customized solutions, and a fiiendly environment would continue to work for the brand, or whether management should revamp and redefine the brand in the United Arab Emirates (UAE) KAYA COMPANY BACKGROUND Kaya Limitedwched in 2002 in India and by October 2015 had operations in mostounries in the Middle East. Its main business was the Kaya bran clinies, which catered to the growing needa of men and women who wanted to look good naturally. According to Kavita Krishnan, regional manager for the Middle East, "Kaya is the Sanskrit word for body. We offer the latest and effective skincare

Explanation / Answer

2) What variables in business would make customers loyal to a particular business? Explain Kaya's loyalty program. What are the four main types of loyalty programs?
Ans- Various varibles towards customer loyalty are- a) The brand has to support customer outside the financial side of business. b) Social media, its not just about complaints, it means brand is available to help customers. c) A sense of kinship through nostalgia. d) when brand is expert in their field, then only audience will trust their opinion. e) Brand should provide discounts and special offers for loyal customers f) by providing time to time proper customer service.

In Loyalty program, the several product line of Kaya were stamped with US Food and Drug Administration(FDA) various loyalty program of Kaya are-

a) E- marketing b) Customer relationship management c) differentiation strategy through customized solution for customer(this means to customize according to customers personal needs through inovative solutions) d) Each Kaya clinic has employed current technology e) their service team includes dermatologists and beauty therapists f) Kaya has chain of retail outlets to sell standard retail product line.

3) Suggest ways of achieving customer-centricity by implementing CRM initiatives. How can Kaya implement such initiatives?
Ans- Customer Relationship Management is a system to track information , Various ways through which Kaya can implement CRM initiatives are-
a) By creating identical stores which are equally devoted to their products and space for customers to enjoy the product. b) By analysing and understanding customers buying habbits. c) By providing Wifi facility at store and itroducing loyalty app. d) By organising campaigns to understand customers needs. e) by making customer service at heart of their business. f) by making geo-specific products which are not duplicate of local brand. g) by use of SAP CRM technique. h) Use of CRM for contact customer for feedback and surveys. Managing loyalty program.
Kaya conducts loyalty program called Kaya Smiles, the levels are based on frequency of visits and levels of transactions which provides reward point on their expenditures.

4) What are the different methods of customer segmentation? How does Kaya implement customer segregation?
Ans- The different methods of customer segmentation and how kaya implement are-
a) Geographic segmentation, it is segmenting target audience based on their location. Kaya has designed their outlets with cultural sensibilities so that kaya was perceived as local brand.
b) Demographic segmentation(B2C), here characteristic are not limited to race, gender, income, marital status and occupation.  
c) Demographic segmentation(B2B), here demographic includes xcompany size, industry, working time and more.  
d) Psychographic, here segments are less tangible and market is divided on principles such as lifestyles, values, social class. Kaya employes well trained therapists which are multilingual.
e) Behavioural Segmentation , here customers are divided according to usage, loyalties, liking and purchase pattern. Kaya maintains high level of customer service through experts.

5) Evaluate the success of Kaya's international branding strategy.
Ans- The success of brand depends upon the loyalty on customers. Kaya has achieved it very well. Their international branding strategy which includes CRM, loyalty program, Rewards point for expenditures, understanding Geographic and demographic segmentation, conducting surveys and receiving feedback from customers, maintaining kinness. If we observe the rate of increase of market size in consecutive year, they have profit in positive.

6) Should the customization of expert service and customers friendliness work for the brand, or should the company redefine the Kaya brand?
Ans- Yes, customization of expert service and customers friendliness work for the brand. It makes customer loyal and bring kinness among them. There is no need to redefine the Kaya brand, but we can say that they should implement new ways and process before their competion strikes it.

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