Fair and Lovely Marketing strategy by Anwar Ansari - PGDPM 1405010

Introduction

CORPORATE MISSION (Hindustan Uni Lever) :   

• To meet vitality to the life and meet every day need for nutrition, hygiene and personal care with brand.
• Focus on local culture and market
• Long term success require long term relationship with customer
• Equal behavior with  share holder, people and  business parent

• HUL is the market product leader in India. It is the first company which has introduced fairness cream.
• Fair & lovely was launched in 1978.
• It contains no bleach or harmful ingredients. Instead, it provides visible fairness in a safe and reversible process.
• In 2003, it was rated as the Twelfth Most Trusted Brand in India by ACNielsen ORG-MARG.
• In 2004, it was identified as a Super Brand.
• HUL, with Fair & Lovely, has a massive 76 % market share.
• Widest range of top quality Home Care, Personal Care and Food products

ABOUT FAIRNESS CREAM MARKET

• Fairness cream market in India is about 1200 crores.
• The market growth is 15-20% on year to year basis.
• It has been estimated that males constitute 20 percent of the total sales for fairness creams in India.
• In 1998 Cavin Kare Limited (CKL) launched 'Fairever'.

• Within 2 years it notched 15% market share.
• It USP contained Saffron herb believed to whiten the complexion.
• But HUL (then HLL) found out that it was a copy of ‘Fair & Lovely’
• In an out of court settlement CKL admitted copying and withdraw all stock with ‘Fair & Lovely’ formation.
• 'Fair & Lovely' market share fell from 90% to 80% in this event.

• Other important players like Godrej's 'Fairglow', Emami's 'Fair and Handsome', Vicco and Himalaya share the rest of the market share.

Major players in the fairness product market

Fair & Lovely - Background

• Fair & Lovely was launched in 1978 in India under HUL.
• 33 years of excellence
• Fair & Lovely is sold in over 30 countries worldwide. These include countries    across Asia, Middle East and Africa.    .
• Market leader with 70% of market share

Success

Market Share:

4 P’S OF MARKETING.

• Products- Fair n Lovely ,Fairever etc
• Product Peneteration
• Fair & Lovely Fairness Cream-1978
• Fair & Lovely Ayurvedic Cream-2001 - 50 gm/25 gm/9 gm
• Fair & Lovely Fairness Cream with extra brightness-2003
• Fair& Lovely Menz Active-2006 - 50 GM/25 GM
• Fair & Lovely Body  Fairness Milk - 50 gm/25 gm/9 gm
• Fair & Lovely Anti Marks
• Anti Ageing Cream
• Perfect Radiance Cream - 50 gm /25 gm
• Fair and Lovely Multivitamin Cream - 80 gm / 50 gm /25 gm/ 9 gm
• Fair & Lovely Cream Soap

• Price-Currently low price strategy is being followed by companies.
• Affordability is determine by two factors
• Income of consumer.
• Price of the product & services
• Factor influencing the price
• Internal Factors—Cost, Pricing Objective
• External Factors—Customer, Suppliers, Competitors

• Place-is represented for market, rural market being explored.
• DISTRIBUTION NETWORK
• HUL products are distributed through a network of 4,000 redistribution of stockiest covering 6.3 million retail outlet reaching the urban population, and about 250 million rural consumer.
• It’s Easily available in any retail shop, cosmetic outlets, chemist, etc.

• Promotion-advertising through TVC, print media, hoardings. Fairness cream constitutes 28% of total TVC’s.
• TV Campaign
• Fairness Meter
• Fair & Lovely Scholarship Programme 2007 on Reliance Mobile or R World (Aug 14 – Sep 17, 45,000 Response)

Unique Selling Proposition

• Power of beauty.
• Fairness in 4 weeks.
• Maximum fairness with the power of 8.
• For flawlessly fair skin.
• Change your story- Fair n Lovely Menz   Active.

Segmentation

The process of defining and subdividing of large homogenous market into clearly identifiable segments having similar needs, wants or demand characteristics. Segmentation can be done on the basis of geographic, demographic, psychographic and behavioural.

Segmenting on the basis of:

Geographic – target is generally the south zone and then north and west

• Demographic
• Age - users of the age of 15 to 45 years.
• Gender – female are more ardent buyers of fairness cream.
• Young women aged – 15 to 45
• School girls aged – 12 to 14
• Middle class families (rural, urban people)
• Also men aged 15 to 45 and school boys aged 12 to 14.
• Income – 1 to 3 lakh income group is a big customer group for fairness cream
• Social class – users mainly from upper-middle to lower-middle group.

Targeting

The process of evaluating each market segments attractiveness and selecting one or more segments to enter.

 

• young women aged 18-35.
• school girls in the 12-14 years category widely use fairness creams.
• The poor also are a significant target market for Fair & Lovely.
• Affordable small size pouches to facilitate purchase by the poor. Commonly speaking Fair & Lovely is an example of a product targeted at the poor or those at the “bottom of the pyramid”.

Positioning

• Fair & Lovely could not be a commercial success if it was not advertised.
• Positioned itself as the cream that fulfilled one’s dreams and desires.
• Fair & Lovely has been maintaining its millions of young women/ customers trust and   perceived value towards brand and ruling the fairness cream market in India.

Customer Delight: