Reflections Journal of Management (RJOM)

Volume 6, January 2017

Available online at:
http://reflections.rustomjee.com/index.php/reflections/issue/view/Reflections%20-
%20Journal%20of%20Management/showToc

A STUDY ON BRAND PREFERENCES IN THE FAIRNESS CREAMS MARKET

Panchal Sanjana & Joshi Pallavi

ABSTRACT
The rise in consumerism and changing lifestyle of Indians have led to strong demand for fairness western
culture and hence growing brand conscious, which created an opportunity for the market is increasing
the penetration level of male spending in fairness creams. The easy availability of product has made the
business to expand. The potential growth for expansion of the business depends on the factors like sun
screens, age miracle, fairness cream with multi vitamin etc. This paper aims to identify the brand
preferences in the fairness cream market. This paper also influences the factors responsible for
purchasing different brand of fairness creams.

INTRODUCTION
Are people concerned about their complexion? Do they worry about their skin fairness? YES
In todays world, its a big yes. Previously Fairness creams were used only by women, but now the
situation has changed and Fairness creams are equally sorted by men too. We are living in culture where
mothers advice their daughters not to play under the sun, where marriage classified ads still state looking
for a fair skin and beautiful girl or boy, and not only matrimonial ads but also societies believe that being
fair is beautiful and handsome.
As fashion trends and lifestyles changed, attitudes and conceptions about human beauty also have
undergone tremendous changes and that most of the Indians are very much concern about their
complexion, hence there lies a requirement for fairness products. Various cosmetic brands have launched
fairness creams for men and women with Bollywood celebrities like Yami Gautami, Shahrukh khan,
Varun Dhavan endorsing them, they have become a craze.
The market size for fairness cream in India is estimated to be Rs 3000 Crores (approx.). The leading
player in the fairness product market is Hindustan lever ltd. Fair n Lovely with 76% market share where
the brands available are Multivitamin, Skin Clarity Ayurveda, and Active sun block cream. Other
important players are fair and handsome, Olay, LOreal, Patanjali, Garnier, Ponds etc. share rest of the
market share. As India is known for its diversity, various consumers belonging to the different
backgrounds from different parts of the country prefer unlike brands.
In the view of this, it was found vital to conduct a research on the brand preferences of consumers in the
fairness market. We look at the factors like awareness, preferences, influencing factors while conducting
this research.
LITERATURE REVIEW
In todays world competition of any business depends upon its customers of a particular product as
customer is a king. Customer is the main pillar on which its business stands. The same was conducted on
both men and women where we came to know about different factors like their usage pattern, amount
spent on fairness cream, how frequently they use, satisfaction level etc. Age factor shows where 50% of
men and women are equally conscious regarding their complexion. Another important factor is
advertisement, the biggest source of awareness where people are more convinced to buy a product is 46%
and 70% of the customers prefer to buy cream through local retail shops rather to buy it online. A survey
conducted as part of this report shows that customers prefer fair n lovely over other brands of fairness
cream regardless of age and income, which allows them to have a good personality in the society.68% of
respondent use fairness cream, where fair n lovely 26.4% and patanjali 17% are extensively used.44% of
respondent says that yes fairness creams are effective. As compared to income, respondents purchase
medium size pack of fairness cream. But yes from the report we studied that 98% of respondent would
like to use a natural product i.e. herbal creams which are less available in the market and are unknown to
them and less brand awareness, this is due to lack of advertisement. Customers are more loyal to fair n
lovely because they are pretty much confident about that product, as they are well advertised and have a
good word of mouth.

RESEARCH OBJECTIVES
Proposed hypothesis:
Average income of Fair & Lovely users is less than 25,000
Less than 10% of men use Fair & Lovely
Use of fairness cream brand is not independent of Gender

1) To find the brand preference for fairness cream in Indian market.

2) To study the factors which influence the brand preferences for fairness creams.
3) To find out the sources of awareness for fairness creams.
4) To study the relationship between a particular brand and its buying behavior.
5) To study the influence of advertising in buying decision of the consumers.
6) To study impact of buying fairness creams behavior on consumers buying behavior.
7) To study the usage of fairness cream particularly in terms of gender, age and buying pattern of
consumers.
8) Various customers review about the particular product.
RESEARCH METHODOLOGY
A survey of fairness creams available in the market was done. Commonly used brands were taken into
consideration. This selection was done by forwarding form which was in the form of questioner schedule
to both males and female. Sample size of survey was 61. It is drawn on the basis of brand preferences in
the fairness creams market. All the respondents are from Mumbai. As a researcher, I found out similarities
and dissimilarities and reached a meaningful conclusion.

Research design:
Research design includes Exploratory and Descriptive.

Data sources:
The method used for collecting data was primary and secondary as well.
Primary data collection: It is collected through sampling from age group, income group and from
different occupation. By this we get the idea of current situation and also reliable data. Through
Questionnaires method, the data is being derived by looking at the responses given by the
respondents. Questionnaire link is send and posted via emails, blogs etc. to the respondents and
they were asked to answer the questions in the questionnaires.

Secondary data collection: For collecting secondary data we were gone through various sources.
One of the main sources was information through internet, journals, previous years projects.

Sample design:
Sampling was done on factors like age, income, gender, occupation.

GENDER

48%
The above chart shows the percentage responses
of both male and female and there is a negligible
Female difference in respect to gender. Hence, the
preference of fairness creams is same across
Male
gender but differs on basis of age. Men and
women are equally conscious regarding their
52% complexion.
 AGE
5% 8%

In this survey, age group of 0-25 uses fairness

20% 0-25 cream to the great extend as this age group is
26-35 concern about their looks and are highly involved
36 - 45
in impressing opposite gender. Whereas, in the age
group of 36-45 use of fairness cream is low as here
46 above people are opting for anti-aging creams instead of
fairness creams.
67%

INCOME

0%
6% The annual income of any individual could affect
11% 0-25,000 their interest of buying specific brand of Fairness
12% product. Maximum number of respondents belongs
25,001- to the income group of 0-25,000 which amounts to
50,000
67% of total responses who usually use fairness
50,001-
creams which are reasonable in rate, which consist
1,00,000
of Rs. 100-500 in range. People with high income
More Than 1
Lakh prefer to purchase branded products.
71%

OCCUPATION

5%
29% 13%

In occupation 51% i.e service people use

2% Business fairness creams. As they are working women
Housewife and men they always want to look beautiful /
Others handsome and want to look presentative.
Service Whereas only 13% of housewives use fairness
Student
cream as they are busy in their household
work.

51%
DATA ANALYSIS:
1) FINDINGS:

Pack size
6%
24%

Majority of respondents i.e 43% use medium

large size pack, as income group of 25000 prefer to
use medium size rather to keep on buying small
Medium
packs frequently. Medium sizes packs can be
Small
100g, 200g. Low income people would like to
43% (blank)
buy small size packs as those are cheap in
27%
price.

Media influence
12%
20%
Digital TVC has more influence over buying
Outdoor behavior of respondents as advertisements
17% Print Media are more attractive compared to other
Sampling mode of medias. Even outdoor media has
a pretty much influence which is 17%.
4% TVC
(blank)
36% 11%

Recommendation
6%
24%
According to survey, almost 70% of
respondents are satisfied with the
No
fairness cream they use and that they
Yes are happy to recommend it to the
(blank) people. Only 6% people do not wish to
recommend their product due to
ineffectiveness.
70%
2) HYPOTHESIS:
Hypothesis 1: Estimating the average income of fair and lovely users

Ho: Average income of Fair & Lovely users is more than 25,000

Ha: Average income of Fair & Lovely users is less than 25,000

t-Test: Paired Two Sample for

Null Ho: 25000 Means

Alternative Ha: < 25000

Test T Test Variable 1 Variable 2
Tail Left tail Mean 56250 25000
Confidence
level 99% Variance 1510416667 0
Alpha 0.01 Observations 4 4
Probability 0.01 Pearson Correlation
Hypothesized Mean
T Critical (4.54) Difference 0
T Observation 1.61 31250 = x' - df 3
19,432 S/sqrt(N) t Stat 1.61
P value 0.21 X' 56250 P(T<=t) one-tail 0.10
Alpha 0.01 S 38,864.08 t Critical one-tail 4.54
u 25000 P(T<=t) two-tail 0.21
n 4 t Critical two-tail
Decision Failed to reject the null 5.84

BUSINESS DECISION:

Hypothesis 1 proves that average income

of Fair & Lovely users is more than
Acceptance
25,000. This product can be sold even
Rejection
region region more effectively in market by reducing its
price so that income group of less than
25000 can afford to buy this product.
They can even put proper advertisements
in the newspapers like times of India and
DNA, and can be produced in small size
pack.
-4.54 1.61

It was found that 20% of women use fair and lovely

Hypothesis 2: Estimating the % of population using Fair and Lovely

Ho: More than 10% of men use Fair & Lovely

Ha: Less than 10% of men use Fair & Lovely

Null Ho: p 10%

Alternative Ha: p < 10%
Test P test
Tail Left tail
Confidence level 99%
Alpha 1%
Probability 1%
P Critical (2.33)
P Observation 4.44 16.4% p'-p
0.04 sqrt[(p*q)/n]

P 10%
p' 26.4%
q 90%
P value 1 n 66
Alpha 0.01
Decision Failed to reject the null

BUSINESS DECISION:

More than 10% of men use Fair & Lovely. As

the scenario can be men are also conscious
about their complexion.
Acceptance
Rejection
region
region

-2.33 4.44

It was found that less than 10% men use fair and lovely
HYPOTHESIS 3: Estimating whether Use of fairness cream brand is not independent
of Gender

Ho: Use of fairness cream brand is independent of Gender

Ha: Use of fairness cream brand is not independent of Gender

Null Ho: Use of fairness cream brand is independent of Gender

Alternative Ha: Use of fairness cream brand is not independent of Gender
Test right test
Tail chi square
Confidence level 99%
Alpha 1%
Probability
Critical C 48.28 df= (r-1)*(c-1) = 28
Observed 34,541
P- value 0
Alpha 0.1
Decision reject the null

reject

rejection
region

48.28 34541

Use of fairness cream brand is not independent of Gender

observed Female Male Total proportion
Fair N Handsome 4 4 6%
Fair N Lovely 11 2 13 20%
Fair N Lovely, L'oreal 1 1 2%
Garnier 1 4 5 8%
I don't use. 1 1 2% BUSINESS DECISION:
lakme 1 1 2%
L'oreal 1 1 2 3% It is proved that use of fairness cream
L'oreal, Ponds 1 1 2% brand is not independent of gender
NA 1 1 2% this is because male and female have
Nivea 1 5 6 9% different perceptions towards fairness
None 1 1 2% cream products.
Olay 3 3 5%
Patanjali 2 7 9 14%
Ponds 4 4 6%
(blank) 7 7 14 21%
Grand Total 33 33 66 100%
expected Female Male
Fair N Handsome 545 545
Fair N Lovely 168 168
Fair N Lovely, L'oreal 2178 2178
Garnier 436 436
I don't use. 2178 2178
lakme 2178 2178
L'oreal 1089 1089
L'oreal, Ponds 2178 2178
NA 2178 2178
Nivea 363 363
None 2178 2178
Olay 726 726
Patanjali 242 242
Ponds 545 545
(blank) 156 156
(fo-fe)^2/fe Female Male
Fair N Handsome 545 537
Fair N Lovely 146 164
Fair N Lovely, L'oreal 2,176 2,178
Garnier 434 428
I don't use. 2,178 2,176
lakme 2,176 2,178
L'oreal 1,087 1,087
L'oreal, Ponds 2,176 2,178
NA 2,178 2,176
Nivea 361 353
None 2,178 2,176
Olay 720 726
Patanjali 238 228
Ponds 537 545
(blank) 142 142 34,541
LIMITATIONS-
Survey has been conducted taking into consideration 61 responses as sample size.

All the information collected belongs only to the mindset of the consumers of Mumbai City. So we
dont have the clear and perfect idea about the choices and responses for the same questions of the
respondents of the other cities or throughout the world.

The accuracy of the finding of the study depends upon the correctness of the information given by
respondent.

As the data is available through online forms responses data may not be universally acceptable.

CONCLUSION:
Fairness creams being one of the most preferred cosmetic products has created a strong impact in peoples
life. As most of the people are very much bothered about their colour complexion the fairness cream
products enjoy very good market growth rate when compared with other related cosmetic product
categories. This widespread preference for fair skin has been exploited by the manufacturers of fairness
creams. People have made it a routine to use fairness cream on daily basis to get a bright look. Taking into
consideration the factors like health and skin sensibility fairness manufacturers can produce herbal
fairness cream for healthy living of customers. It is not sufficient for companies to have the right product
with right quality; the product should be communicated properly to the targeted audience. Various
measures of advertisements can be used for creating the awareness for various brands of fairness creams.

REFERENCES:
http://www.worldwidejournals.com

http://www.indianmba.com/Faculty_

Consumer behavior on fairness cream http://www.slideshare.net/soorajdms

RM fairness cream http://www.scribed.com./doc/27599586/RM-Fairness-cream

Article - All's Fair in Love and Cream by Shevde Natasha (From: Advertising & Society Review
Volume 9, Issue 2, 2008 10.1353/asr.0.0003)

Article on Brand Management The Indian Context, YLR Moorthi, Vikas Publishing House Pvt.
Ltd.