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ARUN RAJ KUMAR P 10070 K SWETHA NANDANA 10082 PRAVEEN SHARMA 10094 SHYLESH V 10106 VISHAL ROY 10118 Group - 9

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PRESENTATION ON Fair &; Lovely SPECIAL THANKS TO MY TEAM WHO MADE THIS REPORT POSSIBLE

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Page 1: Fair &; Lovely

ARUN RAJ KUMAR P 10070 K SWETHA NANDANA 10082

PRAVEEN SHARMA 10094SHYLESH V 10106

VISHAL ROY 10118

Group - 9

Page 2: Fair &; Lovely

Sunday’s Newspaper

Kaalu Prasad 27/172Chief Officer Bangalore Co. 5 LPASeeks fair ,good looking, well-qualified, employed girl from decent family.Ph: 9916783884

fair

Page 3: Fair &; Lovely

Introduction to Skin Care Industry

• The skin care market in India is around 3500 Cr • Growing at 15-20% per year• Fairness cream market alone constitutes for 2000 Cr• Fair & Lovely enjoys as much as 53% of the fairness

market share with sales of 1100Cr

Total Skincare Market in Crores Rupees0

500

1000

1500

2000

2500

3000

3500

4000

1500

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1100

Fair & LovelyOther Fairness CreamsRest of Skincare products

Page 4: Fair &; Lovely

Fair & Lovely

• 32 years of excellence• 1100 Crore Brand• Market Leader with 53% market share in India• Present in 40 countries• World's first and largest Fairness cream brand

Page 5: Fair &; Lovely

Evolution of the Brand

• Phase 1:o Beauty cream capable of providing fairness within 8 weekso "Get noticed by the man of your life.“

• Phase 2:o Catered to younger college going womeno Self confident and contemporary

• Phase 3:o Offering emotional benefits to achievers o Career Oriented Ladies

Page 6: Fair &; Lovely

Company Profile

• Type Public company BSE:HUL• Industry FMCG• Founded 1933• Headquarters Mumbai, India• Key people Harish Manwani (Chairman)

Nitin Paranjpe (CEO and MD)• Products Home & Personal Care, Foods

Water Purifier• Revenue 20,869.57 crore (2009-2010)• Employees Over 65,000 direct & indirect employees• Parent Unilever Plc.

Page 7: Fair &; Lovely

Product Line of HUL Product-mix Width

Product-Line Length Product-Line Length

Soaps Laundry Beverages Oral Care Foods

Dove Surf Excel Bru Close-Up Kissan

Liril Rin Brooke Bond Pepsodent Annapurna

Lux Wheel Lipton Knorr

Pears

Rexona

Lifebuoy

Hamam

Breeze

Hair Care Deodorants Skin Care Cosmetics Ayurvedic

Sunsilk Naturals Axe Fair N Lovely Lakme Aayush

Clinic Rexona Ponds

Denim Vaseline

Aviance

Page 8: Fair &; Lovely

Fair & Lovely : Product Lines

• Fair & Lovely – Anti Marks For Blemish-less Fair Skin• Fair & Lovely – Ayurvedic Balance• Fair & Lovely – Multi Vitamin For Clear Fair Skin• Fair & Lovely – Max Fairness For Men

Page 9: Fair &; Lovely

Major Competitors

• Cavin Kare’s Natural Fairever• Godrej’s FairGlow• Emami’s Naturally Fair• Emami's Fair and Handsome

Page 10: Fair &; Lovely

53%

8%6%

6%

27%

FAIRNESS CREAM MARKET SHARE

Fair & LovelyFaireverfairglow naturally fairothers

Page 11: Fair &; Lovely

History of Fair & Lovely

• 1st one to discover the skin lightening action of ‘Niacin Amide’

• Formulated in 1972• Launched in 1978• Introduced the concept of visible fairness in a safe

and reversible process• Contained no bleach or harmful ingredients

Page 12: Fair &; Lovely

Success of Fair & Lovely• 2003 - rated as Twelfth Most Trusted Brand In India by

ACNielsen ORG MARG.• 2004 - 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 - rated as The Ninth Most Trusted Brand In India,

after the largest survey conducted ever - The Nielsen Company. ( Dated 1st September 2010).

Page 13: Fair &; Lovely

Historical Perspective

• “Radha Kyun Gori… Main Kyun Kala ?”

• Revived - Age Old Fascination !

• 20% users – Men.

Page 14: Fair &; Lovely

Failures• Tried to capture Fairness Soap market - launched Fair &

Lovely Soap - failed miserably.

• Had launched numerous other products like Anti Aging Cream, Skin Clarity Cream, Active Sunblock Lotion etc. - most of them were withdrawn within short periods of time.

• Failed badly in its attempt of capturing Premium Segment - Fair & lovely Radiance Cream.

• Fair & Lovely Menz Active - lost out to its biggest competitor Emami’s Fair & Handsome.

Page 15: Fair &; Lovely

Study with 4Ps

• PRODUCT

• Fair & Lovely – Anti Marks For Blemish-less Fair Skin• Fair & Lovely – Ayurvedic Balance• Fair & Lovely – Multi Vitamin For Clear Fair Skin• Fair & Lovely – Max Fairness For Men

Page 16: Fair &; Lovely

PRICE

• Pricing Objectives

o Survivalo Market share • Pricing methods

o Mark-up pricingo Product line pricingo Promotional pricing

Page 17: Fair &; Lovely

PRICE

Products 25 grams 50 grams 100 grams

Multi-Vitamin Rs 38 Rs 74 Rs 145

Ayurvedic Rs 38 Rs 74 Rs 145

Max Fairness For Men Rs 38 Rs 74 Rs 145

Anti Marks Rs 46 Rs 89 Rs 175

Page 18: Fair &; Lovely

PLACE

• About 2900 stockists• Total coverage: 6.3 Million outlets• Direct coverage: 1 Million outlets

Distribution frameworkHUL

Carrying & Forwarding Agencies

Redistribution Stockists

Wholesalers

Urban Retailers

Rural Retailers

Consumers

Page 19: Fair &; Lovely

PROMOTION• During Launch Phase –

o Building efficacy and safety as it was the first brand that was offering real, tangible fairness.

• Thereafter, –o Era of romantic movies so Fair & Lovely concentrated on women

and getting for them their dream man - considered an achievement then

o Concentrated on married women looking to keep spark alive in the relationship.

• Destiny Phase –o About achieving one’s dreams and desires - key communications

- Airhostess , commentary & Ayurveda ad.

Page 20: Fair &; Lovely

PROMOTION• T.V. Promotion

Always casts common faces - enables people to relate - realistic.

• Latest - “clear fairness”.

• New tagline –“Gorepan se kahi zyaada, saaf gorapan.” - in stark contrast to : “zindagi roshan kare” and “badle aap, badle zindagi” – all of them playing up how fairness could change one’s destiny.

Page 21: Fair &; Lovely

PROMOTION• Campaigns :

USP :o Power of beauty.o Fairness in 4 weeks.oMaximum fairness with the power of 8.o For Flawless Fair Skin.o Change your story – Fair & Lovely Menz Active.

Page 22: Fair &; Lovely

Sales Promotion

• 1st one to introduce “Fairness Meter” - to judge 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)

Page 23: Fair &; Lovely

The Fair & Lovely Foundation • Set up to give an opportunity to women as possible to help

realize their dreams. • An initiative that will empower women.• Focuses on education, career and entrepreneurial skill.• Emphasizes majorly on the low income groups - majorly operates

in India & Bangladesh.

• Success Stories – • Shikhar – to explore & share success stories of women achievers.• Suvarna – to identify athletic talents- guided by P.T. Usha.• Swayam - initiative in the area of education- enabled women to

open own schools.

Page 24: Fair &; Lovely

Threats:

• Excessive Competition.

• Had its share of negative publicity, with women’s groups calling the ad regressive.

• Increasing inclination of consumers towards premiumisation.

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 Men’s cream.

Opportunities:

• Huge untapped market around the world.

• Men fairness market - growing at a rate of 25% every year.

Strengths:

• High awareness level.• Large Distribution Network of HUL.• Innovative Promotion Pattern.• Most trusted brand for young women in

India.• World's 1st & largest Fairness cream

brand.• Present in 40 countries.

SWOT Analysis

Page 25: Fair &; Lovely

Present Products New Products I. Market Penetration (Intensive Growth) III. Product Development (Intensive)

Present Market

Convert nonusers into users

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

Product reformulation strategy

Ayurvedic Fair & Lovely

Increase frequency of usageo Proposed to apply twice a day.

Product feature addition strategy

o Multi- Vitamin cream

Increase the frequency of purchaseo Reversible effect made constant regular usage a

prime requisite.

New product development strategyo Fairness cream for men.

II. Market Development (Intensive) IV. Diversification

New Market

Expand geographically

o Present in 40 countries.

Related

o Soap

o Active Sunblock LotionTarget new segments

o Anti Ageing

Ansoff’s Model

Page 26: Fair &; Lovely

Segmentation

Age :• 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.)

Page 27: Fair &; Lovely

Psychographic

By communicating a message that Fairness leads to : Beauty - to Good husband – to Self-confidence - which shapes a good career

Benefits• 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.

Page 28: Fair &; Lovely

Positioning

• Fight for consumer mind.

• Positioned - "Get noticed by the man of your life.“ - Later, for achievers – “Redefining Beauty”.

Targeting

• Middle class Indian women who want fairer skin.

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

Page 29: Fair &; Lovely

Recommendations• Major reason for failure of Fair & Lovely Men’s Active - 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.

• Psychology- “Men are wary of walking into a fancy and cosmetic store and prefer to pick up products from chemists and hypermarkets.” - Should be placed in vicinities of other products’ for men like After Shave, Shaving Gels etc.

• No product 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.

Page 30: Fair &; Lovely

Thank You….!!!