2010

A Marketing Management Project

Rashmi Poddar (132), Raunak Kejriwal (133), Sarveshwar Sharma (!47), Tapasya Kataria (167), Vidhushi Rana (182), Shreya Midha (183) Group 5
12/15/2010

Acknowledgements
First and foremost, we would like to express our sincere gratitude to our professors, Professor Pankaj Priya and Professor A.K.Biswas for giving us the the opportunity to do an interesting project like this. We were privileged to experience a sustained, enthusiastic and involved interest from their side. This fuelled our enthusiasm even further and encouraged us to boldly step into what was a totally dark and unexplored expanse before us. We would also like to thank our seniors who were ready with a positive comment all the time, whether it was an off-hand comment to encourage us or a constructive piece of criticism and a special thank to all those who took out time to fill our survey sheet without which our project would have been a failure. Last but not the least, we would like to thank the retailers who were nice enough to give answers to few of our questions without which this survey would have been futile.

Rashmi Poddar (132), Raunak Kejriwal (133), Sarveshwar Sharma (!47), Tapasya Kataria (167), Vidhushi Rana (182), Shreya Midha (183).

CONTENTS
1. Company Profile 2. Indian Cosmetic Market 3. Fair & Lovely 4. Making of the brand Fair & Lovely 5. Fair & Lovely Variants        Fair & Lovely Multivitamin cream Fair & Lovely Ayurvedic Fairness Cream Fair & Lovely Body Fairness Milk Fair & Lovely Skin Clarity Fair & Lovely Menz Active

6. Competitors Comparative analysis of Fairever and Fair & Lovely Comparative analysis of Garnier Powerlite and Fair & Lovely Menz Active

7. Pricing 8. Target Market 9. Evolution of the Distribution Market 10. Distribution Network 11. Evolution of the Brand         Launch Phase Romance Phase Destiny Phase

12. Promotion Strategies used by Fair & Lovely Advertising Objectives Advertising Appeal Media Vehicle Advertising Seasonality Print Media

13. Fair & Lovely Foundation Completed Projects by the Foundation

     

Fair & Lovely Career Guidance Fair & Lovely Shikhar Fair & Lovely Project Swayam Fair & Lovely Project Shikhar Fair & Lovely Foundation Scholarships

14. Data Analysis and Interpretation Findings

15. Questionnaire 16. Retailers Survey  Findings

17. Recommendations (Consumers and Retailers) 18. References

The company‘s Turnover is Rs. The company was ranked number one in the Asia-Pacific region and in India. 17. in partnership with Fortune magazine and the RBL Group. which holds about 52 % of the equity. Hindustan Unilever was recently rated among the top four companies globally in the list of ―Global Top Companies for Leaders‖ by a study sponsored by Hewitt Associates. The mission that inspires HUL's more than 15.Company Profile: HUL Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company. Unilever.000 employees.523 crores (for the financial year 2009 . look good and get more out of life with brands and services that are good for them and good for others. is to help people feel good. one of the world‘s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of about €40 billion in 2009 Unilever has about 52% shareholding in HUL. It is a mission HUL shares with its parent company. including over 1. Products offered by HUL: Food Brands: Annapurna Red Label Brooke Bond 3 Roses Brooke Bond Taaza Taj Mahal Bru Knorr Kissan Kwality Wall‘s Lipton Modern Personal Care Brands: . touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages.400 managers.2010) HUL is a subsidiary of Unilever.

Axe Aviance Ayush Hamam Lakme Lifebuoy Sunsilk Breeze Clear Oils New Clinic Plus Liril Lux Pears Vaseline Close Up Dove Fair & Lovely Pepsodent Ponds Rexona Home Care Brands: Active Wheel Domex Surf Excel Cif Rin Vim Comfort Sunlight .

2007). . Fair & Lovely Brand: Fair & Lovely Company: HUL Agency: Lowe Fair & Lovely. According to the latest Euromonitor report the Indian color cosmetic market stands at $4113. a branded product of Hindustan UniLever.680 million.‖ This product is popular in many Asian countries such as India and China. fair skin is associated with positive values that relate to class and beauty. Skin color is important in India and many other Asian countries. $950 million and showing growth between 15-20 percent per year. any cosmetic product will be successful within the Indian Market. (Bhattacharya. 2005). Total Indian beauty and cosmetic market size currently stands at U.S.9 million (Bhattacharya. 2007) One can easily see that middle and high class Indian people spend a large portion of their money in cosmetic product or service. In those countries. If properly marketed and advertised.4 million and skin care at $346. where lighter skin color represents a higher status. The overall beauty and wellness market that includes beauty services stands at about $2. LTD (HUL) touted a cosmetic cream that supposedly lightens the skin ―the miracle workers. Many Indians have come to view fair skin as the ideal – and a business opportunity (Perry.Indian Cosmetic Market In India there is a large demand for cosmetic products.

F&L virtually created and owned this category for long. The brand never failed to emulate and learn from the competitor . F&L commands a market share of 53% in the Rs 1000 crore fairness market in India. F&L changed all that. F&L achieved such tremendous success because of careful branding and ad campaigns. F&L sustained the pressure from the competitor by careful branding and new product launches. HUL countered with F&L Antimarks and launched a controversial comparative ad that took the steam out of No Marks.When Fairever launched the ayurvedic variant. F&L enjoyed monopoly till Cavin Kare entered this lucrative segment with Fairever. Initially HUL had to do some ugly talking about fairness. In 1988 the brand went international. F&L never allowed the competitors to gain an upper hand in the market which it created. Multani Mitti etc. When Fairever launched the soap. Then came the competition from Ozone Ayurvedics with their brand No Marks trying to carve a niche. The success of Fairever prompted many players like Godrej to tap the market. This brand is World's first and largest Fairness cream brand with a presence in 40 countries and a value of around Rs. F&L is the product born in the Unilever research center. Some of the ads were controversial because of gender inequality and stuff like that. F&L also responded with soap. F&L launched a much better variant. 6 billion Indian skin care market was dominated by conventional beauty care products like Bezan.Market Share of Fair & Lovely: Source: Scribd Fair & Lovely (F&L) is the brand that revolutionized the Indian Skin care industry. It was necessary at . Launched in 1975. In the fairness market.

this further metamorphosed into a brand offering emotional benefits for achievers who actively seek solutions and do not look at marriage as the ultimate source of personal achievement. Fair & Lovely was able to dominate the fairness market because of careful marketing and is a showcase of the marketing genius of HUL. Making of the Brand Fair & Lovely Hindustan Unilever's star product in the fairness creams segment had evolved into one of the most successful brands over three decades in as many distinct phases. Negative Publicity The brand has had its share of negative publicity. The value proposition lucidly communicated to the consumer base read. . F&L have also launched a premium sub brand Perfect Radiance to tap the premium segment of the market. soon moved to more progressive ones in the 1980s. the brand talked to a younger college going woman who is self confident and more modern in her outlook and believes home remedies for facial care to be old fashioned. "Get noticed by the man of your life. Fair & Lovely thus became a brand which communicated a message that Fairness leading to Beauty leading to Good husband to Fairness leading to Self-confidence leading to Good career. with women‘s groups calling the ad regressive. Phase 1 saw the launch of the product in 1976 on the basic premise that "younger women wanted to have fairer skin in order to attract a better looking husband. The ads.that period because the category was new and the brand should first talk about the need to be fairer. The ads showing a girl achieving the ambition of being a cricket commentator ( a male bastion) were very much effective in connecting with the TG." During Phase 2 of Fair & Lovely's evolution. which focused on the mass aspiration of ―marrying well‖. Now the brand has laddered up to more aspirational values like "Transformation of Women" The insight is that the transformation will be more than skin deep." HUL marketed this brand as a beauty cream capable of providing fairness within 8 weeks. HUL has also extended the brand to more aspirational values by launching Fair& Lovely foundation that works for Women Empowerment achievement and transformation which are the qualities for which F&L stands for. In Phase 3.

So. several companies have launched fairness creams in the hope of securing a piece of the growing pie. In 2007. Their advertisements were demeaning women. The ad showed that if the girl is beautiful then only she will get a good job. Fair & Lovely managed to launch variants that matched. whether it was unique offerings such as ayurvedic formulations with saffron (to combat Fairever by CavinKare Pvt. Fair & Lovely was quick to take on competition—with variants. The company had highest market share and to retain that they had to change their advertising strategies as they were going against the society. Now there advertisements emphasize more on empowering women. the promise touted by the competitor. Ltd) or those that claimed to erase marks (to fight No Marks by Ozone Ayurvedics). they did start eating into the company‘s market share with unique offerings. the brand message was that a woman could make her own destiny—a thought that was carried forward in all its campaigns. Fair & Lovely had typical ads for like 20 years which mainly showed that before using the cream the girl is dark looking and is not confident. In the late 1990s.The early 1990s saw the brand take on the role of enabler of t dreams. Moreover in a particular ad they showed that the father is sad that he doesn‘t have a son. and when she uses Fair & Lovely she becomes confident and her career starts flourishing. While none were able to challenge HUL in terms of numbers. To tap the premium segment of the market. Fair & Lovely Multivitamin Cream . The company started working towards the empowerment of women by ― Fair & Lovely Foundation‖ and they started with various projects which targeted mainly working women. The popularity of the brand and category can be gauged from the fact that today. Fair & Lovely also launched Perfect Radiance. Later when they were sued by the AIDWA in 2002. With the fairness cream business accounting for the lion‘s share of the skincare products industry here. it even has a variant for men. the brand tweaked its approach to the Power of Beauty platform. and in some cases even topped. Now their ongoing scholarship program is also doing good. Fair & Lovely has a range of variants to meet the different needs. Fair & Lovely Variants Different people have different skin types and that is why. They changed their strategies.

The cream gives total fairness in four weeks that rivals the best professional beauty treatment. but without bleach or harmful chemicals that can damage skin. It is enriched with the magical Ayurvedic blend of Kumkumadi Oil .a mixture of 16 Ayurvedic ingredients.World's number 1 fairness cream now redefines the route to fairness with the new advanced Multivitamin Fairness and Nourishment formula. Its gentle formulation gives fairness all the year round. which enhances complexion and cures discoloration of skin. Fair & Lovely Skin Clarity – Antimarks . Fair & Lovely Body Fairness Milk Now complements and matches the fairness on your face with the fairness on your body through Fair & Lovely Body Fairness Milk. Fair & Lovely Ayurvedic Fairness Cream Fair & Lovely Ayurvedic Fairness Cream brings in the fairness secrets of ancient Ayurveda that provides Nourishment. Protection and Purification.

Fair & Lovely Menz Active (Max Fairness) Fair & Lovely. exfoliating wash). is regularly exposed to harsh outdoor routines. Besides the leading all purpose Fair & Lovely multivitamin fairness Cream. aloe vera and Vitamin A. . It contains proven ingredients including Vitamin B3. Fair & Lovely in the GCC offers a herbal range. Fair & Lovely Menz Active is perfect for skin that is naturally touch. anti marks and a new range of facial cleansers (face wash. the fairness cream for men. Fair & Lovely is constantly looking at bringing in new innovations that suit the Middle Eastern market and meet its consumer‘s needs and aspirations. mask. an Oil Control Fairness Gel. Keeping in mind different requirements of different skin. now introduces Fair & Lovely Menz Active. has more stubble and is rougher due to regular shaving. the world's number 1 fairness cream.The miracle worker Fair & Lovely now not only removes spots but gives fair flawless skin through the Skin Clarity variant. Fair & Lovely offers its consumers in the Middle East a range of variants. fruit principles. skin silicones.

.

Emami Garnier. Himalaya. soap Cream. Fairglow. lotion Cream. Vicco. soap Cream Cream Cream Cream. Nivea. Perfect Radiance. Revlon Fair & Handsome.Competitors Company HUL Emami Cavin care Paras Godrej HUL (Pond‘s) HUL (Lakme) L‘Oreal Brand Fair n lovely Naturally fair Fairever Freshia Fresh glow Pond‘s fairness cream. lotion Cream. lakme sunscreen cream Garnier products Product category Cream. pond‘s cold cream Lakme sunscreen lotion. lotion Category Equivalent pricing Mass premium Mens fairness cream Major Competitors Fairever. Garnier Mens Powerlite .

But there‘s still a huge untapped potential. It has penetrated distribution channel which Fair & Lovely still has to work on. Comparative analysis of Garnier Powerlite and Fair & Lovely Menz Active Fair & Lovely Menz Active was launched in October 2006. Initially launched in South India. Fairever also faced some legal issues with F&L. The market of Men‘s Fairness Cream in India is now a 4 year old market. Garnier Powerlite has various features that men would like. But in the ad war that ensued. Within six months of the launch. Fairever was clear about its positioning and differentiation. It was the first brand to challenge the market leader Fair & Lovely. It was the time when Fair & Lovely (F&L) was ruling the Indian fairness cream market. It was interesting to note that ever since its launch F&L never faced any competition from any players till Cavinkare decided to take on the behemoth. So a product with the unique blend of Saffron and Milk was appealing to the target segment.Comparative analysis of Fairever and Fair & Lovely Fairever is a challenger brand. moisturiser especially for men. The phenomenal success of F&L and the marketing might of HUL scared off many potential rivals. . . Hence HUL has to follow the policy of ―Market Penetration‖ for this product. It is a brand extension of Loreal so men mainly of middle and higher class would like to try it as compared to Fair & Lovely Menz Active. But it was Fairever who broke these cliche ads and turned that attention to Achievement rather than Fairness. this brand went national a year after. It was the second entrant in the Indian Men‘s Fairness Cream market after Emami. They have launched face wash. F&L took over the concept of Women Empowerment and owned the positioning. Fair & Lovely Men‘s Active is scientifically tailored for men‘s skin So now the product has to focus on attracting new customers. From the launch. Fairever garnered a neat six percent of the fairness market. Fair & Lovely still ha sthe highest market share of about 53% and deeper market penetration too as compared to Fairever. The brand was positioned on the basis of its main ingredients Saffron and Milk. Fairever was launched in 1998. The ads of Fair & Lovely was predictable and was revolving around Girl becoming fair and then attractive to men.

Products in the low category are in the price range of about Rs. 15-100. Prices are crucial in the lower end as they target the mass crowed and hence they have to keep the prices competitive. 150-300. Pricing Objective. 80 gm. Suppliers and Competitors. Prices are highly variable across the various segments of the products. Currently Low price strategy is being followed by the company with regard to Fair & Lovely. External Factors – Customer. Market Share. Fair & Lovely has adopted many pricing strategies over the years which have been pretty successful and helped the brand in becoming more acceptable and the .The 4 P’s Pricing Prices are important part in the fairness creams. They vary according to size (25gm. but also discounts. financing. In the High end the prices vary anywhere between Rs.  Affordability is determined by 2 factors:   Income of the consumer Price of the products and services  Factors affecting the price   Internal Factors – Cost. Pricing includes not only the list price. As for the middle end and higher end product the prices are more on quality as they are not targeting the masses but concentrate on effectiveness and quality of the product. In the Middle end the prices are between the ranges of Rs. Pricing decisions should take into account profit margins and the probable pricing response of competitors. and other options such as leasing. 50gm. The Pricing objective of Fair & Lovely is similar to the objectives of all the other firms. and has been stated below:   Survival. 100gm and 200gm). 350-800.

The pricing methods used by Fair & Lovely are as follows: Mark-up pricing: Mark-up price is the difference between the cost of a good or service and its selling price. However newly introduced version ―Anti-marks‖ has been priced a bit higher which works towards reducing marks on consumer‘s face. When this is done. Promotional pricing: Promotional pricing is a sales and marketing technique.company a good deal of profits. Promotional pricing often involves reducing prices to unsustainably low levels. In some cases. Each product would then be priced accordingly.com/skin-care-cream-lotion-c-4_1101_1900.) 9 gm (Rs. A buy one get one free scheme may even be used.) 50 gm (Rs. interest in goods can be greatly increased. products and services may be sold at or below cost. The total cost reflects the total amount of both fixed and variable expenses to produce and distribute a product.drugneed.) 25 gm (Rs.   Price Chart of the Fair & Lovely cream in India: Product 80 gm (Rs. It involves reducing the price of a product or service to attract customers. essentially creating multiple "different" products or services fully stocked with all the features and add-ons. A mark-up is added on to the total cost incurred by the producer of a good or service in order to create a profit.) Multivitamin 102 70 38 7 Max Fairness 70 38 for men Anti-marks 80 46 7 Ayurvedic 70 38 7 balance Winter 70 38 Fairness Source: www. . meaning sales are also likely to increase dramatically. Product line pricing: Product line pricing is used when a primary product is offered with different features or benefits.html Competitors Price Fairever 102 68 37 7 Fair & Lovely ahs always focused on lower and middle class socio-economies and priced taking the budget constraints of those people into consideration.

therefore.Target Market The target market for Fair & Lovely is predominantly young women aged 18-35. Goods are then sent to these markets. HUL had set up a distribution network that ensures availability of all their products.‖ a stock point for the company‘s products in that market. Evolution of the Distribution Market To meet the ever-changing needs of the consumer. Large retailers also place direct orders. HUL has followed a strategy of building its distribution channels in a transitional manner. maintaining favourable trade relations. The poor also are a significant target market for Fair & Lovely. HUL marketed the product in ‗affordable‘ small size pouches to facilitate purchase by the poor. In order to achieve this. Phase 2 The focus of the second phase was to provide desired products and quality service to the company‘s customers. with the company salesman as the consignee. canvassing for orders from the rest of the trade. innovative incentives to retailers and organizing demand generation activities among host of other things. has penetrated well into the rural market. HUL has a very good distribution channel distribution network catering to every nook and corner of the Country. Phase 1 The HUL distribution network has wholesalers placing bulk orders directly with the company. one wholesaler in each market was appointed as a ―Registered Wholesaler. The Registered Wholesaler system. increased the distribution reach of the company to a larger number of customers. ―there is repeated evidence that schoolgirls in the 12-14 years category widely use fairness creams‖. The company salesman still covered the market. which comprised almost 30 percent of the total orders collected. The Registered Wholesaler was given a margin of 1 per cent to cover the cost of warehousing and financing the stocks held by him. providing. Disturbingly. and the money is remitted to the company. against cash payment. This includes. at all items. . Fair & Lovely targets the poor or those at the ‗bottom of the pyramid‘ as well. He would then distribute stocks from the Registered Wholesaler through distribution units maintained by the company. The salesman then collects and distributed the products to the respective wholesalers. in different successive phases of its evolution of its distribution system. in all outlets.

From the C & F agents. Generally the manufacturing site is located such that it covers a bigger geographical segment of India. Distribution system‘s focus to enable easy access to their brands. and acted as a stock point to minimize stock-outs at the Redistribution Stockist level. and higher levels of brand experience HUL's products. The Redistribution Stockist was required to provide the distribution units to the company salesman. The Redistribution Stockist financed his stocks and provided warehousing facilities to store them. This system helped in trans-shipment. Phase 4 Recently significant change has been the replacement of the Company Depot by a system of third party. The general trade comprises grocery stores. Distribution network HUL products are distributed through a network of 4. touch consumers with a three-way convergence – of product availability.000 redistribution of stockiest covering 6. brand communication. are distributed through a network of about 7.3 million retail outlet reaching the urban population. This knowledge led to the establishment of the ―Company Depots‖ system.Phase 3 The highlight of the third phase was the concept of ―Redistribution Stockist‖ (RS) who replaced the Registered Wholesalers. chemists. The most important benefit has been improved customer service to the Redistribution Stockist.000 redistribution stockists covering about one million retail outlets. the goods are transported to RS‘s (Redistribution Stockist) by means of trucks and the products finally make the ‗last mile‘ based on the local popular and cheap mode of transport. The C&FA system has also resulted in cost savings in terms of direct transportation and reduced time lag in delivery. bulk breaking. Distribution at Urban Centers Distribution of products from the manufacturing site to C & F agents take place through either the trucks or rail roads depending on the time factor for delivery and cost of transportation. and about 250 million rural consumers. The second characteristic of this period was the changes brought in as the company realised that the Redistribution Stockist would be able to provide customer service only if he was serviced well. . The C&FAs act as buffer stock-points to ensure that stock-outs did not take place. The Redistribution Stockist also undertook demand stimulation activities on behalf of the company. the Carrying and Forwarding Agents (C&FAs). wholesale.

the network directly covers about 50.HUL is using the point of purchase method for much higher level of direct contact.kiosks and general stores. It has developed customer management and supply chain capabilities for partnering emerging self-service stores and supermarkets. Distribution at village The company has brought all markets with populations of below 50. sampling. HUL launched Operation Streamline to extend their distribution.HUL has set up a full-scale sales organization. once dealers do the necessary demand creation exercises and as such off takes increases.000. One of the efforts in this direction is Operation Streamline . For the additional 30. it has doubled the company‘s reach in rural India. reaching 250 million consumers. Lever‘s distribution network now covers 60 per cent of the villages with population greater than 2.In 1998. designed on the same principle of holistic contact with consumers. who are paid 1-2 per cent more margins that the retailers. sub-stockiest structure. . Operation Streamline is one of the major initiatives undertaken by HUL in recent times to penetrate the rural markets. Penetration levels for Fair & Lovely cream shot up nearly three times in just three months of launch of project. who in turn pass it on to the Star Sellers Operation Streamline opened up a new distribution channel beyond the territories. Then. The super-stockiest in the bigger towns service these sub-stockiest. through in-store facilitators. In rural India. it created a super stockiest. in less than two years. the goods are distributed from the C&F Agents to the Re-distributors. through 6000 sub-stockists. Pioneering New Channels Hindustan Unilever is simultaneously creating new channels. This is to cover the sub-stockist‘s costs in servicing retailers in his area. In the case of Operation Streamline. and having motor able roads. for this channel to serve modern retailing outlets. education and experience. Since the distributor cannot cover these retailers regularly.000 villages. these sub-stockiest are essentially stock points.000 under one rural sales organization and the team handling this team focuses on building superior availability of products and comprises of an exclusive sales force and exclusive redistribution stockists.000 villages that HUL wanted to reach.

Evolution of the brand: Launch Phase: At the time of launch 1975. unlike the bleaches that were available in the market that were the only offerings that promised temporary fairness. the critical task for Fair & Lovely was to tell consumers that it was a safe and efficacious skin cream.‖ . Launch of the product on the premise that ―younger women wanted to have a fairer skin in order to attract a better looking husband. Therefore building efficacy and safety was the main goal as Fair & Lovely was the first brand that was offering real. tangible fairness.

the Cricket ad and the Ayurveda ad. Male: . Unique Selling Proposition:      Power of beauty Maximum fairness with the power of 8 For flawlessly fair skin Change your story.‖ Romance Phase: Era of romantic movies so Fair & Lovely concentrated on women and getting for them their dream man. Ayurvedic Balance.15 to 45 years Gender:     Female are more ardent buyers of fairness cream Yong women aged 15-25 years School girls aged 12-14 years Middle class families (rural.Fair & Lovely.Max Fairness for Men. Menz Active Cream . The key communications that epitomize this phase is the Airhostess ad.Marks Cream. urban people) Also men aged 15-45 and school boys aged 12-14 years Female: . Destiny Phase: This is the phase about achieving one‘s dreams and desires.Anti. This was considered as an achievement.Value Proposition: ―Get noticed by the man of your life. The cricket ad shows a girl achieving her dreams of becoming a cricket commentator.Fair & Lovely Menz Active Fairness in 4 weeks Target Market Demographic: Age: . It also concentrated on married women looking to keep spark alive in their relationship. an arena which has long been regarded as a male bastion. Multi Vitamin winter fairness cream. Anti-Marks for blemish skin.

.1 to 3 lakhs income groups is a big customer group for fairness cream.Income Group: . Promotion Strategies used by Fair & Lovely TV Campaign The following ad is of Fair & Lovely fairness cream of HUL.

Advertising Seasonality:   Campaign period of an ad is not less than 6 months and not more than a year.Destiby & Romance 2) Building brand awareness and developing strong customer perception about the brand 3) Enhancing brand image 4) Recall of brand/products Advertising Appeal: 1) Emotional appeal to grab attention 2) Mass appeal to communicate product usage and its positive affects on beauty 3) Fear appeal to grab attention Media Vehicle. Here the media vehicle used by the brand is those TV channels which are more popular among women like Star Plus.wedding season and festive season 3) Seasonal.As it has product for all seasons Print Media: Advertisements in the print and electronic media highlight the functional benefits and the self-expressive benefits that accrue to the users of the brand. NDTV Imagine who telecast more and more daily soaps. the new suggested variant Fair & Lovely Lucent Proteins clearly highlight the concept of "beauty beyond fairness". and not wrinkles. . Colours. 3 categories of ads are advertised by the brand 1) General 2) Occasional.ageing with laugh lines.Advertising Objectives: 1) Affective association:. By using a celebrity endorser like Hema Malini for promoting the anti-ageing cream. Sony. For example. the message sent out was loud and clear .

Now there advertisements emphasize more on empowering women. Later when they were sued by the AIDWA in 2002. Their advertisements were demeaning women. Fair & Lovely Foundation: HUL mission is to add Vitality to life. and when she uses Fair & Lovely she becomes confident and her career starts flourishing. The ad showed that if the girl is beautiful then only she will get a good job. feel good and get more out of life (Unilever. the Fairness Meter helps Indian men and women to accurately track the bleaching effect of Fair & Lovely‘s skin-whitening cream. 2006b). The company had highest market share and to retain that they had to change their advertising strategies as they were going against the society. and personal care with brands that help people look good. They changed their strategies. Fair & Lovely had typical ads for like 20 years which mainly showed that before using the cream the girl is dark looking and is not confident. They meet everyday needs for nutrition. which . The creation of the Fair & Lovely Foundation. The lower the number – the logic goes – their fairer the person and thus the more beautiful. they achieve this goal by instilling confidence in women by enabling them to create an external image of themselves that they feel proud of. Moreover in a particular ad they showed that the father is sad that he doesn‘t have a son. Part of the Fair & Lovely line of cosmetics. hygiene. With regards to their Fair & Lovely brand.The Fairness Meter: The Fairness Meter brought a new level of accuracy to the time-honoured tradition of judging people by the colour of their skin. Now their ongoing scholarship program is also doing good. The company started working towards the empowerment of women by ―Fair & Lovely Foundation‖ and they started with various projects which targeted mainly working women.

has educated and empowered economically thousands of low-income women across India. Fair & Lovely Career Guidance A good career comes from a sensible choice made after evaluating one's capabilities. . 3. Project Disha organises a ‗career fair‘ where girl students can obtain information on 100 career options. This foundation initially faced few challenges but this foundation speaks louder than of what they are striving to be as a brand and company than any other promotional activity. an aptitude test to gauge their capabilities. Fair & Lovely Shikhar This is an initiative taken by the Fair & Lovely Foundation to explore and share the awe inspiring stories of women achievers who have overcome all obstacles with their strong will and positive attitude and dared to change their destiny. aptitude tests. 2007). interests and talent. Fair & Lovely organized Career Fairs each year across the country for young girls who were at crossroads and needed to evaluate the available options before they made a decision. It has also been a key to rebuilding their image and securing their brand as the market leader. Completed Projects by the Foundation: 1. This transformation helped them to undercut the efforts of direct competitors such as CavinKare‘s Fairever to exploit their bad publicity and position themselves as more socially responsible. and have oneon-one counselling. This project helped train women and . It is a thirteen episode show based on real life stories of women from different walks of life. A student could go for a one-to-one counselling session. It is imperative for students who finish their 10th and 12th standard exams to make an informed career choice. is the greatest testament to their care and advocacy for women (Fair & Lovely. career workshops and exhibits. Till date. attend workshops and identify where their interest lies. 00. The Career Fair was held in over 25 cities in India. The Fair & Lovely Foundation Career Guidance fairs provided adequate guidance and relevant information to the students on over 200 career options. Fair & Lovely Swayam Fair & Lovely Foundation's Project Swayam conducted in 2005 was an initiative in the area of education and enterprise for women in association with VRDC [Vanasthali Rural Development Centre]. 2. over 6.000 students have used this platform to their advantage.

It is an initiative taken for all those who have the aptitude. with help from VRDC had an opportunity to start their own schools which provided them an earning opportunity. 4.Jan Jagran Sansthan.equip them with the knowledge to become effective teachers for pre-school students. these women. 173 girls out of 5000 were selected and trained under the guidance of Ms. This project was replicated in 2005 in Bihar in association with local NGO . Usha along with Fair & Lovely Foundation to give these girls their wings! Ongoing Projects Fair & Lovely Foundation Scholarships: The Fair & Lovely Scholarships assists deserving women in pursuing their educational goals.P. The project covered the states of Maharashtra and Tamil Nadu in the year 2005. Post their training. Fair & Lovely Survana Project Suvarna aims to identify and select talent in the field of athletics for girl between the age group of 12 . T. . The Scholarship provides a voice to the talent that would have gone unnoticed and opinions that would never have been heard. drive and ambition but are bound by financial constraints.Participants were selected from a large base of competing talented girls on their athletic abilities by none other than India's renowned athlete . It is an ongoing endeavor to give women the privilege of a formal education and over 600 women till date have benefited from this opportunity. Usha.16 years.

DATA ANALYSIS AND INTERPRETATION .

2% .2% of the surveyed respondents are female and the remaining 40. 1. Inference: From the data collected it can be inferred that 59.7% 22.1. of Respondents 12 18 11 5 Percentage 24.5% 36.1 Showing gender distribution of the male and female users of the product Gender Male Female 20 29 41% 59% Source: Primary Data Analysis: Out of the total of 49 respondents 29 are female respondents and 20 are male respondents.8% of the respondents are male.2 Showing the age group of the surveyed consumer group: Age Less than 20 20-25 25-30 30-35 No.2% 35 and above Source: Primary Data 3 6.4% 10.

. 1. of respondents less than 20 20-25 25-30 30-35 35 and above Analysis: Out of 49 respondents 18 belong to 20-25 age group followed by 12 respondents from <20 age group. 11 respondents from 25-30 age group. 24.Fair & Lovely 1 2 3 4 5 2 3 10 13 21 4% 6% 20% 27% 43% .5% belongs to <20 age group followed by 22. 10.2% belongs to the >35 age group. It is found that there are more users of the product in the age group of 20-30 years. Inference: From the data collected it can be inferred that 36.2% belong to 30-35 age group and 6.7% of the surveyed consumers belong to the 20-25 age group.No.4% that belongs to 30-45 age group. 5 from 30-35 age group and the remaining 3 respondents from >35 age group.3 Showing the brand preference and awareness of various brands of fairness cream by the surveyed consumer group.

– Fairever 1 2 3 4 5 – Himami 1 2 3 4 5 – Vicco 1 2 3 4 5 14 16 9 7 3 29% 33% 18% 14% 6% 12 8 18 9 2 24% 16% 37% 18% 4% 3 15 11 16 4 6% 31% 22% 33% 8% .

etc. 6% prefer Vicco and 22 % prefer the other brands like Garnier. Fairness Sunscreen Fragrance Other 25 19 2 3 51% 39% 4% 6% Source: Primary data Analysis: Out of the 49 respondents. Inference: From the data collected from the surveyed respondents above it can be inferred that 43% of the respondents would prefer and know about Fair & Lovely highly (5). Emami. .4 Showing the factors that influence brand preference. 4% prefer Himani. 3 of Vicco and 11 respondents who have rated other products and brands highly in comparison to the ones listed above. 19 8 4 7 11 39% 16% 8% 14% 22% 1. 2 of Himami. 19 feel that sunscreen that it carries influences the same. 2 think the fragrance does and 3 feel that there is some other reason why this happens.– Others 1 2 3 4 5 Source: Primary Data Analysis: From the above data (where 1 stands for low and 5 stands for high preference and awareness) it can be seen that out of the 49 respondents 21 have rated Fair & Lovely high(5) as against 4 of Fairever. 25 respondents think that fairness influences brand preference. whereas only 8% of the respondents prefer Fairever.

High Optimum Low 5 40 4 10% 82% 8% Source: Primary data Analysis: Out of a total of 49 respondents 40 find the price of Fair & Lovely optimum while 5 find it to be high and the rest 4 find it to be low. . 1. 4% feel that fragrance does the job while 6% feel that there are some other reasons that are responsible. while 39 % feel that brand preference is influenced because of the sunscreen quotient. while 8 say ―no‖.Inference: From the data collected it can be seen that more than half i. 51% of the respondents think customers are influenced by the fairness quotient in the product.5 Showing whether Fair & Lovely provides quality product to its customers. 1.6 Showing that how do the respondents feel about the price level of Fair & Lovely when compared with other brands. Yes No 41 8 84% 16% Source: Primary data Analysis: Out of the 49 respondents 41 say ―yes‖.e. Inference: 84% of the surveyed respondents say yes and agree that Fair & Lovely does provide quality product to its customers while 16% do not feel the same and disagree with the statement.

10% feel it to be high and 8% think that the price is low in comparison to others. Friends and/or relatives Family members Retailers recommendation Television Commercials (TVCs) Newspaper Ads Magazine Ads 6 4 1 37 1 0 12% 8% 2% 76% 2% 0% . Interpretation: 55% of the surveyed sample prefers Fair & Lovely in the popular price range.8 Showing the source that has contributed the maximum in making people aware about the product.7 Showing in which price range is Fair & Lovely preferred the most. 1.Inference: 82% of the respondents feel the price of Fair & Lovely to be optimum when compared to other brands. 14 prefer it in the premium category and 8 would like to see in the economical category. 1. while 29% prefer it in the premium price range maybe because they feel that it is undercharged and 16% want it to be economical so that they can afford it. Economy Popular Premium 8 27 14 16% 55% 29% Source: Primary data Analysis: Out of 49 respondents 27 respondents prefer Fair & Lovely in the popular price category.

9 Showing whether advertisements attract towards products or not.Other 0 0% Source: Primary data Analysis: Out of the total of 49 respondents are aware of the product because of television commercials. 10 through friends. Yes No 31 18 63% 37% Source: Primary data Analysis: Out of the 49 respondents 31 agree to the fact that advertisements do attract customers towards the product. whereas 18 respondents disagree with this statement. 1. Interpretation: Of all the surveyed respondents 76% are aware through the medium of television. 20% people know about it through their friends. It can clearly be seen that TV commercials are the most effective medium. family and relatives and 1 each from retailers‘ recommendation and newspaper ads. . family members and relatives and the rest 4 % know about it from newspaper ads and retailers‘ recommendation.

novelty and features to be the reason. 10% each the non availability and advertising to be good enough reason and 6% feels the reason to be the way the product is promoted.10 Showing which factor contributes the most in a customer’s decision to switch brands. 12% of the respondents feel the price to be the reason. Variety/boredom Non Availability Packing/ novelty/ features Price promotion Advertising Other Source: Primary data Analysis: Out of the 49 respondents 13 find the reason for switching brands to be variety/boredom. 13 5 11 6 3 5 6 27% 10% 22% 12% 6% 10% 12% .Interpretation: 63% of the total surveyed respondents know how important it is to advertise your product and agree that advertisements do attract whereas 37% of the surveyed respondents decline this fact. 22% feel it‘s packing. 1. the price. Inference: From the above data it can be inferred that 27% of the surveyed feel boredom to be the reason. the promotion. 11 feel that features do this and there are almost equal numbers who feel the reason to be the non availability if the product. etc.

Interpretation: 63% of the surveyed respondents find Fair & Lovely products to be good. 76% of the respondents get the information about the products of Fair & Lovely through television commercials. 10 rate it an average product. 14% think it to be a very good product and 2% feel it ti worthless. As per the satisfaction derived from the products Fair & Lovely rates well as 63% or 31 out of 49 respondents‘ rate Fair & Lovely products as being good while only 2% of respondents rate Fair & Lovely products as poor. Findings:  More than half i.1. 51% of the respondents consider fairness provided as the prime factor in making a choice of fairness creams. 63% i. As per the pricing 55% of respondents prefer Fair & Lovely in the popular price category. The second rated is sunscreen with 39% respondents laying importance to it.11 Showing how do people rate Fair & Lovely products? Very good Good Average Poor 7 31 10 1 14% 63% 20% 2% Source: Primary data Analysis: Out of 49 respondents 31 respondents rate Fair & Lovely products to be good. 20% feels it is an average product. 82% respondents think that Fair & Lovely is value for money and has been priced optimally as compared to other brands. 40 out of 49 respondents i. 7 rate it to be very good and 1 rates it poor.       . Fair & Lovely wins by clear majority of 84% where 41 out of 49 respondents feel that Fair & Lovely provides quality products to its customers. The least ranked is fragrance. 31 out of 49 respondents feel that Fair & Lovely advertisements attract users towards the products.e. On the whole it is a good product.e.e.

Questionnaire: Fair & Lovely Market Analysis: .An insight into consumer perception Name * Age * Gender *   Male Female Brand preference and awareness for fairness cream? *Here 1 is low and 5 is high preference and awareness 1 Fair & Lovely Fairever Himami Vicco Others Factor influencing brand preference? *     2 3 4 5 Fairness Sunscreen Fragrance Other: .

Do you think Fair & Lovely provides quality products to its customers? *   Yes No What do you think about the price level of Fair & Lovely when compared with other brands? *    High Optimum Low Which price range of Fair & Lovely you prefer the most? *    Economy Popular Premium Source of Awareness for fairness creams? *        Friends and/or relatives Family members Retailers recommendation Television Commercials (TVCs) Newspaper Ads Magazine Ads Other: Reasons for switching brands? *    Variety/boredom Non Availability Packing/ novelty/ features .

    Price promotion Advertising Other: How do you rate Fair & Lovely products? *     Very good Good Average Poor Do you recommend Fair & Lovely products to others? *   Yes No .

This shows that people are willing to shift incase there is a better product in the market. etc. Ponds. Olay. They generally go for Garnier or Fairever. Emami Fair and Handsome.Retailers Survey: A general and oral retailers survey was conducted in which around 10 retailers in the nearby area were questioned the following questions:1) Do you keep Fair & Lovely? 2) Which other brands of fairness cream do you keep? 3) How well does it fair as compared to other brands? 4) Which pack economy. • According to retailers. Garnier. • All of the retailers did have Fair & Lovely on their shelves but none of them did keep the whole range of products. • According to the retailers surveyed Fair & Lovely justifies its market share of 53% but they also agree to the fact that its market share is in a continuous declining phase and Fair & Lovely is being given a stiff competition by its competitors Fairever. Hence very rarely do customers switch brands. Rarely do retailers stock premium packs (80 gm and above). Fairever. They do so only when they feel that there is a better product available at the same or a little higher price. etc. some had only Fair & Lovely Ayurvedic and some had a combination of two variants. . • Most of the retailers surveyed generally stock the economy (9 gm &15 gm) and popular pack (25 gm & 50 gm). • The retailers surveyed had quite a few other brands which include Garnier Mens Powerlite. The most interesting thing observed here was that all of the shops had mens fairness creams and said that they sold pretty good hence it was important to have them in their inventory. Some had only Fair & Lovely Multivitamin. Nomarks. customers are generally brand conscious especially when it comes to fairness products because its effect develops over a certain period of time. popular or premium is sold more? 5) If Fair & Lovely is not available to consumers do they buy something else? If yes which other fairness cream do they opt for? Findings The retailers came up with almost similar responses only with a little variation.

Considering that Fair & Lovely's market share touches nearly 60% and it has a high brand recall of nearly 80% .a conservative estimate. Women in the society have transformed and the brand has evolved to capture this need. Currently though. drill into the core of the brand. underplaying the fairness attribute may hurt the brand so the focus has to be extended and not shifted. Only then can Fair & Lovely hope to achieve its targets. confident. With the introduction of the new variants in the market place. and happy users of the products . Though Fair & Lovely is the market leader in this segment. The ads could present both fair and darker skinned models together as equally beautiful. 9. but it is a great investment toward managing our brand image and serving the best interests of Indian women of all colours and shades. then in order to convert at least 20% of the users exposed into customers. especially since there are no significant points of difference from its competitors. increase brand attitude and to generate the intention to purchase in the minds of the consumer. TV commercials must be aimed at generating awareness and increasing brand recognition of the new products. an erosion of its market share is always on the cards.This type of advertising requires a higher degree of creativity and sensitivity to be effective. Fair & Lovely must focus its promotional activities in order to sell a category need. This revamp needs go beyond just the look of the package (which has been constantly changing) and instead.000 customers have to be exposed to these commercials on prime time television.200. The addition of attributes to products would increase the perceived value for the customer which is an important objective with a mature product such as Fair & Lovely. The basic product needs to be re-positioned with additional attributes to increase its points of difference from the other competing brands. Towards that extent. . modernizing along with its consumers. This extension includes fairness but adds that extra something to the product as well as the brand.Recommendations (Consumers & Retailers Survey) Fair & Lovely has come a long way since 1976 when it was first introduced in India.

Romanticizing the poor.Leistikow. Doing Well By Doing Good.knowledge@wharton. Marketing Management.References:       Philip Kotler.com . N. www. Aneel Karnani.‘ R.Balu. Aneel Karnani. ‗Strategic innovation: Hindustan Lever Ltd‘. ‗Indian women criticize ‗Fair & Lovely‘ ideal.