Marketing Management 1

Presented by: HITESH BAJAJ 231065 KIRTI OBHAN 231076 MEENAL NARULA 231087 POOJA SHARMA 231097 PUNEET GUPTA 231107 ROBIN SHARMA 231117

REVIEW OF THE COSMETIC INDUSTRY WITH SPECIFIC REFERENCE TO FAIRNESS CREAMS IN INDIA FROM 2002-2007

• The Indian Cosmetics Industry is defined as skin care; hair care, color cosmetics, fragrances and oral care.

Market capitalization: • According to analysis and figures given by the Confederation

of Indian Industries (CII), the total Indian beauty and cosmetic market size currently stands at US$950 million.

• The skin care segment has grown the fastest at 15-20% per annum.

Major Players

•

Change in Economic and Demographic trends:• A cumulative positive impact of the changing Economic

and Demographic trends has spurred sales for cosmetics and toiletries in India from --- in 2002 to --- in 2007 These include:

• Increase in disposable incomes of the households• Market growth within the semi rural and rural areas

( growth of about 25% of annual sales of Non essential products)

• Increase in the working youth population -High disposable income -High purchasing power -Willingness to spend• Inclination of younger women towards branded products

Increase in Advertisement expenditure

• Market Transformation: Men's fairness creams• Men's fairness cream market in 1999: Did not existMen's

fairness cream market in 2007: Rs 100 crore• Emami launched a fairness cream just for men - Fair and

Handsome - in 2004. The brand was endorsed by Shah Rukh Khan, which further fuelled growth

• In 2007, Elder Health Care along with Shahnaz Husain too entered the segment with Fairone Man.

• In the same year Nivea also launched a whitening moisturiser under the 'Nivea for Men' name in India.

MARKET LEADER: HUL (FAIR & LOVELY)Strategies:

1) Made its product offering affordable to all group of consumers.

2) Uses its distribution network effectively. Products were available at major retail and kirana stores.

3) Ads are based on women empowerment and carry brand’s message of hope and self confidence.

4) Perfect radiance brand targeting the premium consumers.

5) To increase its market share and to suit indian skin tone products were introduced that have high UV protection against UV rays.

MARKET CHALLENGER: CAVINKARE (NATURAL FAIREVER)

STRATEGIES:1) Differentiated its product on the basis of the ingredients used i.e

kashmir saffron and milk.

2) Produced and promoted the product in all shapes, sizes, price to withstand competition with HUL.

3) Introduced product in sachet format to increase its concentration on rural market and middle income segment.

4) Embraced a definitive approach to marketing by maintaining exclusivity of the distributor.

5) Brand ambassador- Asin

Product and Service Differentiationin Fairness Cream Category

• For women : Fair and Lovely, Cavin Kare• For men : Fair and Handsome, Nivea• Ayurvedic : FairOne (Shainaz Husain), Dabur’s Vatika fairness, Himalaya

Fairness Cream• Anti-ageing : L’Oreal White Perfect , Olay’s White Radiance, Nivea Visage

Sparkling Glow• Anti-marks : Garnier Lightening• Oil Control : Olay’s White Radiance• Day and night cream : L’Oreal White Perfect, Nivea Visage Sparkling Glow• Face wash : Nivea Visage Sparkling Glow• Toner : L’Oreal White Perfect, Nivea Visage Sparkling Glow, Amway• Moisturisers : L’Oreal White Perfect, Amway• Direct Selling : Amway’s Artistry Pure White, Avon, Oriflame• Antiseptic : Boroplus

EMAMI’s FAIR AND HANDSOME:

STRATEGIES: 1) Created a niche for itself by launching fairness cream for men.

2) Clearly communicated the difference between fairness cream of men and women through their advertisements.

3) Product was differentiated on the basis of its ‘ Unique 5 power fairness system’.

4) To cater the need of rural consumers, company launched its product in small sachets.

5) Shahrukh khan was made brand ambassador.

MARKET FOLLOWERS: L’OrealSTRATEGIES:1) Ads emphasised not only on fair skin but also on healthy flawless

skin.

2) For mass and professional segment, garnier skin natural light was introduced.

3) Promotes its fairness products through TV commercials with the tagline ‘BECAUSE YOU ARE WORTH IT’.

P&G (OLAY)1) Main focus- Anti Aging (Olay total effects).

2) Target elite urban upper class women .

BRAND ANTI AGEING ANTI ACNE SUN CARE SKIN WHITENING

MOISTURIZER

HUL PONDS AGE MIRACLE _______

LAKME, FAIR & LOVELY

PONDS WHITE BEAUTY

PONDS,VASELINE, LAKME

P&G OLAY AGE PROTECT

_______

OLAY NATURAL WHITE SUN BLOCK

OLAY NATURAL WHITE DAY CREAM

OLAY

LOREAL GARNIER WRINKLE LIFT

GARNIER PIMPLE CONTROL

LOREAL SOLAR EXPERTISE

L’OREAL PARIS PEARL

GARNIER

SHAHNAZ HUSSAIN

OXYGEN SKIN BEAUTIFYING MASK

BODY CLEAR CLEANSER,SHABASE

SHASCREEN, SHABLOCK

FAIR ONE FAIR ONE

CAVIN KARE _______ _______ _______ NATURAL FAIREVER

_______

BRAND AND PRODUCTS:

Strategies for the New Entrants

• Product Differentiation– the new entrant should differentiate itself substantially in the minds of the

consumers. Such positioning can be accomplished through substantial changes in either the product or promotion strategies.

• Aggressive marketing campaigns– It will ensure that firms entering the industry have products which are

known to the market. Creating market awareness will help in capturing the market share.

• Research and development– Due to the high competition and diverse nature of the fairness cream

industry, research will enable firms to develop products which meet customer needs.

• Intensive Distribution– Make products available at major retail and mom-and-pop (kirana) stores.

Also develop new channels for distribution.• New entrants should develop creative ways to increase product trial.

How would you differentiate your strategies for fairness cream market in urban and rural areas?

The needs, preferences, buying habits and context of product and service usage of rural customers differ from those of their urban counterparts.

Therefore there is a need to modify products sold in urban areas or design and develop specific products and services for rural markets.

RURAL MARKET• Population Approximately 70% of India's population lives in rural areas.

Therefore, it can target large number of customers. Large untapped rural market.

• Packaging Packaging is one of the key drivers of success in rural market.

As many consumers in rural areas have low disposable income, products available in large sizes designed for urban markets are not suitable for rural markets.

Small sachets of creams specifically for its rural consumers. Low unit packing increases brand penetration.

• Brand identity system Rural consumers show a distinct preference for bright colours. Yellow and red are the most acceptable colours among rural

households.

• Distribution network Major distribution is through kirana stores. Personal selling in this case would be expensive as the cost of

the product is less.

• Promotion Fairness creams can be promoted by supporting a cause like

empowerment of women. Promote the product through advertisement on TV, radio,

hoardings

URBAN MARKET

• Population Approximately 30% of India's population lives in urban areas

of different income level.

• Packaging High to medium segment looks for branded products and

quality, style and novelty. Lower segments prefer small-unit packing

• Distribution network Products are available at major retail and kirana stores. • Promotion Fairness creams can be promoted by supporting a cause like

empowerment of women. Promote the product through advertisement on internet, TV,

radio, hoardings.

URBAN AREASPrice: Product:Place:Promotion