BRAND - REPORT

ON

SUBMITTED TO:
SUBMITTED BY
Dr. H. GYAHRI
ARUN RAJKUMAR PERIYA 10070
K SWETHA NANDANA 10082
PEAVEEN SHARMA 10094
SHYLESH V 10106
VISHAL ROY 101

Fair & Lovely

STUDY OF THE INDUSTRY

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 Cavincares 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
Fair & Lovely
1100
2500
Other Fairness
Creams
2000
900
Rest of
1500
Skincare
1000
1500
products
500
0
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
Unilevers 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 largest fast
moving
consumer
goods
company, touching 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-Dutch company Unilever owns
a majority stake (52%) in Hindustan Unilever Limited.
Type
Industry
Founded
Headquarters
Key people
Products
Revenue
Employees
Parent

Produc
t-Line
Length

Public company BSE: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.
Product-mix Width

Soaps

Laundry

Beverages

Dove
Liril

Surf Excel
Rin

Bru
Brooke Bond

Lux
Pears
Rexona

Wheel

Lipton

Oral
Care
Close-Up
Pepsoden
t

Foods
Kissan
Annapur
na
Knorr

Lifebuoy
Hamam
Breeze
Produc
t-Line
Length

Hair Care
Sunsilk
Naturals
Clinic

Distribution
Indian brands.
channel

Deodoran
ts
Axe

Skin Care

Rexona
Denim

Ponds
Vaseline
Aviance

Fair N Lovely

Cosmeti
cs
Lakme

Ayurved
ic
Aayush

6.3 million outlets and owns 35 major

Fair & Lovely : Product Lines

Fair
Fair
Fair
Fair

&
&
&
&

Lovely
Lovely
Lovely
Lovely

Anti Marks For Blemish-less Fair Skin

Ayurvedic Balance
Multi Vitamin For Clear Fair Skin
Max Fairness For Men

Major Competitors
Cavin Kares Fairever
Godrejs Fair & Glow
Emamis Naturally Fair
Shahnaz Husain Fairness Dream Cream
Emamis Fair And Handsome

Cavin Kares Natural Fairever :

The unique combination of saffron and milk has
made it the beauty secret of millions of beautiful
Indian women. Fairevers market share is 15% in
India as a whole and 17% only in Southern India.

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

Emamis Naturally Fair:

Emami is the biggest competitor of Fair & Lovely.
Emamis 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.

FAIRNESS CREAM MARKET SHARE

27%
6%
6%

53%
8%

Fair & Lovely

Fairever
fairglow
naturally fair
others

History of Fair & Lovely

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.
Hindustan Unilever is the first company which has
introduced fairness cream.
It was launched in 1978.
Fair & Lovely is an ISO certified product, meeting the
highest standards in skin care and safety.
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 Fairness in 4 weeks

and Power of Beauty, it has been able to create the

positioning of a cream that fulfils ones Dreams and Desires.
In 2003, it was rated as Twelfth Most Trusted Brand In
India by ACNielsen ORG MARG.
In 2004, it was identified as a SUPER BRAND.
Consumers now perceive the brand as empowering,
achieving and transformative.
A lot of its detractors have vanished, thanks to the launch
of Fair & Lovely Ayurvedic and new variants.
Recently, it has been rated as The Ninth Most Trusted
Brand In India, after the largest survey conducted ever,
by The Nielsen Company. ( Dated 1st September 2010).

Failures
Fair & Lovely tried to capture Fairness Soap market for
which it launched Fair & Lovely Soap, but failed miserably.
It had launched numerous other products like Anti Aging
Cream, Skin Clarity Cream, Active Sunblock Lotion
etc. But most of them were withdrawn within short periods
of time.
It failed badly in its attempt of capturing Premium
Segment with the brands Fair & lovely Radiance
Cream.

Fair

& Lovely Menz Active has lost out to its biggest

competitor Emamis Fair & Handsome.

Study with 4Ps

PRODUCT

Fair
Fair
Fair
Fair

&
&
&
&

Lovely
Lovely
Lovely
Lovely

Anti Marks For Blemish-less Fair Skin

Ayurvedic Balance
Multi Vitamin For Clear Fair Skin
Max Fairness For Men

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

Factors influencing the price

o Internal FactorsCost, Pricing Objective
o External FactorsCustomer, Suppliers, Competitors

Pricing Objectives
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

50 grams

Rs 38
Rs 38
Rs 38

Rs 74
Rs 74
Rs 74

100
grams
Rs 145
Rs 145
Rs 145

Rs 46

Rs 89

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 consumers face.

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

Rural Retailers

Consumers

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

Then after the Launch Phase

It was an era of romantic movies so Fair & Lovely
concentrated 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
This phase is about achieving ones dreams and desires.
The key communications that epitomizes this phase are
Airhostess ad, commentary ad and the Ayurveda ad.

T.V. Promotion : Fair & Lovely always casts common faces

so that people are able to relate with them and their
achievements seem realistic.
The ads, just launched, speak of this very attribute
clear fairness. The product has a new tagline gorepan
se kahi zyaada, saaf gorapan. This is in stark contrast to
taglines earlier, which at different times have been
zindagi roshan kare and badle aap, badle zindagi all

of them playing up how fairness could change ones

destiny.

Campaigns :
USP :
o Power of beauty.
o Fairness in 4 weeks.
o Maximum fairness with the power of 8.
o For Flawless Fair Skin.
o Change your story Fair & Lovely Menz Active.
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 :
Fair & Lovely was the first one to introduce Fairness Meter
for consumers to judge their fairness.
Other tactics like 20% extra!! More value for same cost
have worked wonderfully well.

 Sponsorship.
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 realize 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 realize their potential to
achieve success. It focuses on education, career and entrepreneurial skill.
This foundation emphasizes majorly on the low income groups and
majorly operates in India & Bangladesh.

Fair & Lovely Shikhar

This is an initiative taken 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. 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

Strengths:
High awareness level.
Distribution Level of HUL makes it easily available in any
retail shop, cosmetic outlets, chemist shops etc.
Innovative Promotion Pattern.

 Most trusted brand for young women in India.

More than 50 per cent people prefer Fair & Lovely over
any other brand.
World's first and largest Fairness cream brand.
Present in 40 countries.
A value of around Rs. 6 billion.
Market share of over 53 % in the Rs 2000 crore fairness
market in India.

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

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

Threats:
There are several existing competitors in the market with
the same product category.
The brand has had its share of negative publicity, with
womens groups calling the ad regressive.
Emamis Fair And Handsome has been growing at almost
45 per cent on a year-on-year basis.
Entrance of foreign companies in Indian market with
better skills and efficacy to beat the domestic players.
The consumers off late are inclined towards
premiumization, 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,

Present Products
I. Market Penetration (Intensive
Growth)

New Products
III. Product Development
(Intensive)

Product reformulation strategy

P Convert nonusers into users
or When they related success to fairness,
o Ayurvedic Fair & Lovely
e they attracted even those persons who
s were primarily only success oriented &
e cared less about looks and appearances.
n
t
Increase frequency of usage
Product feature addition strategy
o Proposed to apply twice a day.
M
o
a
Increase the frequency of
r
purchase
k
o Reversible effect made constanto
e
t
regular usage a prime requisite.
II. Market Development (Intensive)

Multi- Vitamin cream

New product development
strategy
Fairness cream for men.

IV. Diversification

Expand geographically

N
e
w
M
a
r
k

Present in 40 countries.
Target new segments

Anti Ageing

Related
o
o

Soap
Active Sunblock Lotion

e
t

Ansoffs Model

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

Gender :
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.
Male - Fair & Lovely Max Fairness For Men, Menz Active
Cream.

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

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:
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.

Targeting:

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 extended to target the consumers
seeking specific benefits apart from fairness by introducing
Ayurvedic Fairness cream, Anti-Marks cream and Multi vitamin
cream.

Recommendations :
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 Emamis Fair and
Handsome by promoting Vaseline for Men as skin care
and Fairness cream. Thus, it is concentrating less on
promotion of Fair & Lovely Max 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 & lovelys
mens cream faring well in the lower and lower middle
class. So, attempts should be made to enliven the product.

 The major reason for failure of Fair & Lovely Mens Active
is inadequate promotion. Thereby, we recommend the
signing up of celebrities for its further endorsements to
compete with Emamis Fair & Handsome, which is
promoted by Shah Rukh Khan.
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.
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.

References
1. www.google.co.in
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3. http://economictimes.indiatimes.com
4. en.wikipedia.org/wiki/Hindustan_Unilever
5. timesofindia.indiatimes.com/home/...fair-lovely
6. www.youtube.com
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9. www.business.com
10. www.scholarshipsinindia.com/Fair_Lovely_Foundation_Project_Saras
wati_2005-06_Scholarship.html
11. www.mouthshut.com/.../Fair_%7C%7C_Lovely_Cream925007959.html

12. http://economictimes.indiatimes.com/news/news-by-industry/consproducts/fashion-/-cosmetics-/-jewellery/Men-use-anti-ageing-productsmarketed-for-women/articleshow/6278153.cms
13. www.fairandlovely.in
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