Fair & Lovely


The skin care market in India is around 3500 Cr which is growing at 15 -20% per year. Out of which Fairness cream market alone constitutes for 2000 Cr. Fair & Lovely which is the iconic brand of Hindustan Unilever Limited(HUL) enjoys as much as 53% of the fairness market share with sales of 1100Cr. Its new competitor is Cavincare s fairever which holds a market share of 7 -8% growing at 10% per year. The other competitors include Emami Naturally fair with 6% ,Godrej Fair Glow with 6% market shares .

Share of Fair & Lovely in Skincare Market

4000 3500 3000 2500 2000 1500 1000 500 0


Fair & Lovely Other Fairness Creams Rest of Skincare products

Total Skincare Market in Crores Rupees

The Brand

Equating fairness with beauty has turned out to be a wonderful concept for the fairness creams industry with Hindustan Unilever s Fair & Lovely capturing nearly 53% of the market share. The company, enjoying a brand value of 1100 crore, has taken special care in its promotions and advertisements, which showcase darker skinned women turning fairer on using the cream.

Evolution of the Brand

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. Phase 1 saw the launch of the product in 1978 on the basic premise that "younger women wanted to have fairer skin in order to attract a better looking husband." HUL marketed this brand as a beauty cream capable of providing fairness within 8 weeks. The value proposition lucidly communicated to the consumer base read, "Get noticed by the man of your life." During Phase 2 of Fair & Lovely's evolution, the brand talked to a younger college going woman who is self confident and more modern in her outlook and considers home remedies for facial care to be old fashioned. In Phase 3, it further metamorphosed into a brand, offering emotional benefits to achievers who actively seek solutions and do not look at marriage as the ultimate source of personal achievement. Fair & Lovely thus became a brand which communicated the ideology that Fairness leads to : Beauty - to Good husband to Self-confidence which shapes a good career.

Company Profile
Hindustan Unilever Limited (HUL) is India's larges fas moving cons mer goods company touc ing the lives of two out of three Indians with over 20 distinct categories in home & personal care products along with food & beverages They endow the company with a scale of combined volumes of about 4 million tonnes and sales of over Rs 13 000 crores HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India. The Anglo- utch company Unilever owns a majority stake (52 ) in Hindustan Unilever Limited.

Type Industry Founded Headquarters Key people Products Revenue Employees Parent Distribution channel

Public company BS HUL Fast Moving Consumer Goods (FMCG) 1933 Mumbai, India Harish Manwani (Chairman), Nitin Paranjpe (CEO and Managing Director) Home & Personal Care, Foods, Water Purifier 20,869.57 crore (US$ 4.53 billion) (2009-2010) Over 65,000 direct & indirect employees Unilever Plc. 6.3 million outlets and owns 35 major Indian brand s.

Product-mix Width
Soaps Dove Liril Lux Pears Rexona Lifebuoy Hamam Breeze Hair Care Sunsilk Naturals Clinic Laundry Surf Excel Rin Wheel Beverages Bru Brooke Bond Lipton Oral Care Close-Up Pepsodent Foods Kissan Annapurna Knorr

ProductLine Length

Deodorants Axe Rexona Denim

Skin Care Fair N Lovely Ponds Vaseline Aviance

Cosmetics Lakme

ProductLine Length










Ayurvedic Aayush

Fair & Lovely : Product Lines

y y y y

Fair & Lovely Fair & Lovely Fair & Lovely Fair & Lovely

Anti Marks For Blemish-less Fair Skin Ayurvedic Balance Multi Vitamin For Clear Fair Skin Ma Fairness For Men

Major Competitors
Cavin Kare s Fairever Godrej s Fair & Glow Emami s Naturally Fair Shahnaz Husain Fairness Dream Cream Emami s Fair And Handsome
© ©

Cavin Kare s Natural Fairever :
The unique combination of saffron and milk has made it the beauty secret of millions of beautiful Indian women. Fairever s market share is 15 in India as a whole and 17 only in Southern India. 

Godrej s FairGlow :
Fairglow Fairness Cream has an excellent floral perfume and attractive packaging. FairGlow s market share in fairness cream is about 5 . 

Emami s Naturally Fair:
Emami is the biggest competitor of Fair & Lovely. Emami s market share in Fairness Cream is 6 .

Emami's Fair and Handsome :
Fair and Handsome cream has become a brand worth 100 crore, since its launch in 2005. The total market size of the male fairness category in India is about 150 crore today, of which Fair and Handsome,the market leader, captures almost 70 per cent market share in its category and is also doing extremely well in West Asia.  




Fair & Lovely



fairglow naturally fair


History of Fair & Lovely
y Scientists at Unilever Laboratories in India were the first one to discover the skin lightening action of Niacin Amide that led to the development of a unique and patented formulation of Fair & Lovely in 1972. y Hindustan Unilever is the first company which has introduced fairness cream. y It was launched in 1978. y Fair & Lovely is an ISO certified product, meeting the highest standards in skin care and safety. y It contains no bleach or harmful ingredients. Instead, it provides visible fairness in a safe and gradual process.

Success of Fair & Lovely
Fair & Lovely would not have been a commercial success if it was not advertised. With the USPs like Fairn ss in 4 weeks and Power of Beaut , it has been able to create the positioning of a cream that fulfils one s Dreams and Desires. y In 2003, it was rated as Twelfth Most Trusted Brand In India by ACNielsen O G MA G. y In 2004, it was identified as a SUPER BRAND. y Consumers now perceive the brand as empowering, achieving and transformative. y A lot of its detractors have vanished, thanks to the launch of Fair & Lovely Ayurvedic and new varia nts. y Recently, it has been rated as The Ninth Most Trusted Brand In India, after the largest survey conducted ever, by The Nielsen Compan . ( Dated 1st September 2010).

y Fair & Lovely tried to capture Fairness Soap market for which it launched Fair & Lovely Soap, but failed miserably. y It had launched numerous other products like Anti Aging Cream, Skin Clarit Cream, Acti e Sunblock Lotion etc. But most of them were withdrawn within short periods of time. y It failed badly in its attempt of capturing Premium Segment with the brand s Fair & lo el Radiance Cream.


Fair & Lo el Menz Acti e has lost out to its biggest competitor Emami s Fair & Handsome. 


Stud with 4Ps
y y y y Fair & Lovely Fair & Lovely Fair & Lovely Fair & Lovely Anti Marks For Blemish-less Fair Skin Ayurvedic Balance Multi Vitamin For Clear Fair Skin Ma Fairness For Men

PRICE y Affordability is determined by two factors
o Income of the consumer o Price of the product & services

y Factors influencing the price
o Internal Factors Cost, Pricing Objective o E ternal Factors Customer, Suppliers, Competitors

Pricing Objecti es
o Survival o Market share

Pricing methods
o Mark-up pricing o Product line pricing o Promotional pricing

Products Multi-Vitamin Ayurvedic Max Fairness For Men Anti Marks

25 grams Rs 38 Rs 38 Rs 38 Rs 46

50 grams Rs 74 Rs 74 Rs 74 Rs 89

100 grams Rs 145 Rs 145 Rs 145 Rs 175

Fair and lovely has always focused on lower and middle class socioeconomies and priced taking the budget constraints of those people into consideration. However, newly introduced version Anti Marks has been priced a bit higher which works towards reducing marks on consumer s face.

HUL has one of the largest distribution networks in India. The following are the facts regarding the same : 1) About 2900 stockists 2) Total coverage: 6.3 Million outlets 3) Direct coverage: 1 Million outlets

Distribution framework

Objectives and intentions
y Broad basing their sales and marketing activities across the country. y In terms of town coverage, dealer network and new approaches to communication strategy. y Plan and implement sales and marketing activities to achieve their targets. y Fine tune all marketing inputs in terms of media and other budgets to meet territory specific needs. y Identify performance targets with specific responsibility centres and improve cost effectiveness of it s operations.
HUL Carrying & Forwarding Agencies Redistribution Stockists Wholesalers

Urban Retailers

Rural Retailers


PROMOTION During Launch Phase
y Building efficacy and safety as it was the first brand that was offering real, tangible fairness.

Then after the Launch Phase
y It was an era of romantic movies so Fair & Lovely concent rated on women and getting for them their dream man, which was considered an achievement then. In addition, Fair & Lovely concentrated on married women looking to keep spark alive in the relationship.

Destiny Phase
y This phase is about achieving one s dreams and desires. The key communications that epitomi es this phase are Airhostess ad, commentary ad and the Ayurveda ad.

y T.V. Promotion : Fair & Lovely always casts common faces so that people are able to relate with them and their achievements seem realistic. y The ads, just launched, speak of this very attribute clear fairness . The product has a new tagline gorepan se kahi yaada, saaf gorapan. This is in stark contrast to taglines earlier, which at different times have been indagi roshan kare and badle aap, badle indagi all of them playing up how fairness could change one s destiny.
$ $ $

Campaigns :
y USP :
o Power of beauty. o Fairness in 4 weeks. o Ma imum fairness with the power of 8. o For Flawless Fair Skin. o Change your story Fair & Lovely Men Active.
y Projects :
& %

o Fair & Lovely Career Guidance o Fair & Lovely Shikhar o Fair & Lovely Project Swayam o Fair & Lovely Project Suvarna o Fair & Lovely Foundation (Going On)

Sales Promotion :
y Fair & Lovely was the first one to introduce Fairness Meter for consumers

to judge their fairness.
y Other tactics like 20% e tra!! More value for same cost have worked

wonderfully well.
y Sponsorship. y Fair & Lovely Scholarship programme 2007 on Reliance Mobile or R World

(Aug 14- Sep 17,45,000 Responses)

Corporate Social Responsibility

Fair & Lovely Foundation

The Fair & Lovely Foundation was step to give an opportunity to as many women as possible, to help reali e their dreams. This is an initiative that will empower women by supporting them in every aspect of their life. They aim to nurture young girls so they can reali e their potential to achieve success. It focuses on education, career and entrepreneurial skill. This foundation emphasi es majorly on the low income groups and majorly operates in India & Bangladesh.
( ( (

Fair & Lovely Shikhar
This is an initiative taken to e plore 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. It is a thirteen episode show based on real life stories of women from different walks of life.

Fair & Lovely Project Suvarna
Project Suvarna aims to identify and select talent in the field of athletics for girls between the age group of 12 - 16 years. The project covered the states of Maharashtra and Tamil Nadu in the year 2005.Participants were selected from a large base of competing talented girls on their athletic abilities by none other than India's renowned athlete - P. T. Usha.

173 girls out of 5000 were selected and trained under the guidance of Ms. Usha along with Fair & Lovely Foundation to give these girls their wings!

Fair & Lovely Project 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]. This project helped train women and equip them with the knowledge to become effective teachers for pre -school students. Post their training, these women, with help from VRDC had an opportunity to start their own schools which provided them an earning opportunity. This project was replicated in 2005 in Bihar in association with local NGO - Jan Jagran Sansthan.

SWOT Analysis of Fair & Lovely
y High awareness level. y Distribution Level of HUL makes it easily available in any retail shop, cosmetic outlets, chemist shops etc. y Innovative Promotion Pattern. y Most trusted brand for young women in India . y More than 50 per cent people prefer Fair & Lovely over any other brand. y World's first and largest Fairness cream brand. y Present in 40 countries. y A value of around Rs. 6 billion. y Market share of over 53 % in the Rs 2000 crore fairness market in India.

y Chunk of products were launched, most of them remained unpopular. y Decline in market share from 90% to 53%. y Inability to attract premium segment. y Inadequate promotion of Men s cream.


y Huge untapped market around the world. y Men fairness market is growing at a rate of 25% every year.

Present Products

New Products

y There are several e isting competitors in the market with the same product category. y The brand has had its share of negative publicity, with women s groups calling the ad regressive. y Emami s Fair And Handsome has been growing at almost 45 per cent on a year-on-year basis. y Entrance of foreign companies in Indian market with better skills and efficacy to beat the domestic players. y The consumers off late are inclined towards premiumi ation, which is why the focus is on this segment. By and large consumers are averse to taking chances with products perceived to be low in value when it comes to personal care, say analysts. That is also contributing to this trend of premiumisation,
1 0

I. Market Penetration (Intensive Growth)

III. Product Development (Intensive) Product reformulation strategy

P r e s e n t M a r k e t

Convert nonusers into users
o When they related success to fairness, they attracted even those persons who were primarily only success oriented & cared less about looks and appearances.

Ayurvedic Fair & Lovely


Increase frequency of usage Proposed to apply twice a day. Increase the frequency of purchase

Product feature addition strategy

Multi- Vitamin cream

New product development strategy Fairness cream for men.


Reversible effect made constant regular o usage a prime requisite.

II. Market Development (Intensive) Expand geographically

IV. Diversification Related
o o

N e w M a r k e t


Present in 40 countries. Target new segments

Soap Active Sunblock Lotion


Anti Ageing

Ansoff s Model

Segmentation Age :
The main target customers of Fair & Lovely are segmented in the age group of 15-40.

Gender :
y Female - Fair & Lovely Anti Marks Fairness Cream, Anti Marks For Blemish-less Fair Skin, Ayurvedic Balance, Multi Vitamin For Clear Fair Skin, Multi Vitamin Winter Fairness Cream. y Male - Fair & Lovely Max Fairness For Men, Menz Active Cream.

Income :
Low (up to 40,000 p.a.), lower middle ( 40,001 80,001 120,000 p.a.) 80,000 p.a.), middle (

Psychographic :
Under this segmentation, Fair & Lovely is psychologically targeting the customers by communicating a message that Fairness leading to Beauty leading to Good husband, to Fairness leading to Self-confidence leading to Good career.

Benefits :
According to the product range provided by Fair & Lovely, it segments its customers based on their requirement, related to fairness and skin care. Along with Fairness solution, it also offers dark circles treatment, aging signs solution and Vitamin procurement for skin care.

Usage :
Medium Usage, i.e. twice a day, is advised.

Positioning is fight for consumer mind. Fair and lovely is very well positioned in the minds of the consumers. Fair & lovely is the first product that comes to mind of Indian consumers in case of fairness creams. In the initial stages it positioned itself as fairness cream for the young women who wants to attract a better looking husband. The value proposition lucidly communicated to the consumer base read, "Get noticed by the man of your life." Later it positioned itself as 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 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.

The target segment for the brand is middle class Indian women who want fairer skin. The message is conveyed in ads where women using the brand become fairer and get ahead in life by attracting men and jobs. Of late, the range of the products under the brand is e tended to target the consumers seeking specific benefits apart from fairness by introducing Ayurvedic Fairness cream, Anti-Marks cream and Multi vitamin cream.

Recommendations :
y Previously, men in India did not feel the need for skincare or were shy to show their interest in it as they felt that such treatment was a woman's domain. But today male consumers in India are demanding skincare products that are specially made for them and suit their skin type. Thereby, this segment calls for a huge opportunity. However, HUL is looking to compete with Emami s Fair and Handsome by promoting Vaseline for Men as skin care and Fairness cream. Thus, it is concentrating less on promotion of Fair & Lovely Ma Fairness For Men . While we are of the opinion that, since Vaseline for Men caters to the middle and upper middle class in terms of offering as well as price, there still lies a huge scope, of Fair & lovely s men s crea m faring well in the lower and lower middle class. So, attempts should be made to enliven the product. y The major reason for failure of Fair & Lovely Men s Active is inadequate promotion. Thereby, we recommend the signing up of celebrities for its further endorsements to compete with Emami s Fair & Handsome, which is promoted by Shah Rukh Khan.

y Psychological studies suggest that Men are wary of walking into a fancy and cosmetic store and prefer to pick up products from chemists and hypermarkets. Therefore, placement of the product in supermarkets and stores should be worked upon. It should be placed in vicinities of other products for men like After Shave, Shaving Gels etc. y There is no cream in the market which offers Total Solution Fairness for the body as a whole, specifically for men. Such a product for economic segment could be a viable option.

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