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Product Market Analysis of

Fairness Creams

VIKAS

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Geographical Distribution

South36%

West23%

East18%

North23%

Cosmetics & Toiletries Industry

120040%

180060%

Skin-care segment Others

Skin-Care Segment

720

60%

480

40%

Fairness Cream Others

Industry Overview

Fairness cream market – 25% p.a. vs cosmetic market – 15% p.a.

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Reasons for the growing demand

• Greater access to television, which has made the Indian consumers beauty consciousness and increased his or her need to look presentable and attractive

• Increased advertising in general

• Greater product choice and availability

To succeed: The positioning and the style of the product’s appeal for “making consumers fairest of all” will make the difference

Reality is that Indians at large, and most of Asia, for that matter, are partial towards light skin

Demand Drivers

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Broadly divided into mass and premium• Premium segment

Niche ûÿ~wÿÿ· and so small base

Low scope for increasing volumes

Growth mainly from up-gradation

• Mass segment Scope for increasing volumes is much higher because

Much larger base

Low price drives first-time users

Industry Overview

Mass segment: Concentrated market structure - 70% by top 3 brands

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Consumer Behaviour Analysis

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Physiological - Clean Face

Social – Beauty, Complexion

Esteem – Compliments

Self Actualization - Confidence

Safety - Anti ageing, no pimples

Hierarchy of Needs

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Market Growth Factors

Increased media exposure

More working women

Growing consumerism

Move towards personal grooming

Increased penetration levels

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Demographic Effects

Greater tendency to use fairness creams in Southern India

Frequency of application decreases with age

Highest percentage of users among single working women

Younger women more inclined towards branded products

Men are increasingly using fairness creams

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Product Differentiation

Analysis

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Product Differentiation

Bases• Type

• Price range

• Chemical characteristics

• Application

• Packaging

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Product Differentiation - Type

Cleansing creams

All purpose creams

Emollient creams

Skin protective and hand creams

Soap bars

Usage of Talcum powder for fairness purposes was prevalent in earlier days

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Product Differentiation – Chemical CharacteristicsFunctional Property Physio-chemical Property

Cleansing creamsCold creams

Medium to high oil contentOil in water or water in oil

Neutral pHMay contain surfactants of improved penetration and suspension properties

Hand and body protective

Low to medium oil contentUsually oil in water

May have slightly alkaline or acidic PHMay contain protective factors especially

silicones and lanolin

All purpose creamsMedium oil content

Oil in water or water in oil

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Product Differentiation – Application

Even tone

Clearing dark spots

Reducing pigmentation

UV protection

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Product Differentiation - Packaging

Creams/Lotions• Tubes

• Bottles

Soap• Bars

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Competition Analysis

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Positioning

Herbal – safe and traditional Age – teenagers, middle aged, all age groups Lifestyle – working women, party goers Occasions – marriage, date, interview Benefits – confidence, impact, fashionable

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Low End

Godrej Fair Glow ‘FaireverFreschiaVicco Turmeric

Middle End

Fair and LovelySamara Fairness creamLotus Fairness gelAvon VIP Fairness creamBiotique Coconut MilkOriflame Love A ‘Fair

High End

L’Oreal Plenitude White Perfect YSL’s Blanc Absolu SerumClinique’s Active White LineElizabeth Arden’s Visible Whitening Pure Intensive CapsulesEstee Lauder’s White Light.

Major Players

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Market Shares

75%

15%

4%

2%

4%

Fair & Lovely

Fairever

Fair Glow

Himalaya

Others

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Prominent Brands

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Product proposition – “Change your destiny” - transforms a woman in ways, more than just skin deep

Target segment – Women in the age group of 20s to late 50s

Packaging – Tubes and soap bars

SKUs 25 gm 50 gm 80 gm 75 gm

Pricing Rs 26.5 Rs 48 Rs 70 Rs 15

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Key ingredients – UV sunscreens, niacin amide, papaya and watermelon extracts

Other attributes – sunscreen system typically optimized for Indian skin

Market share – 76%

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Product proposition – a cream that will help the "world notice you"

Target segment – middle class young girls in their early 20s who are in college or have just started working

Packaging – tubes and sachets

SKUs 9 gm 25 gm 50 gm 80 gm

Pricing Rs 5 Rs 27 Rs 49 Rs 70

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Key ingredients – saffron, milk, fruit vitalizers

Other attributes – lasting fragrance Market share – 15%

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Product proposition – first fairness soap, blemish free fairness

Target segment – mass market

Packaging – bars

SKUs – 75 gm

Pricing – Rs 13

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Key ingredients – bio-extract natural Oxy-G, 76% TFM (Total Fatty Matter)

Other attributes – visible fairness without leaving the skin greasy

Market share – 3.5%

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Product proposition – herbal fairness cream - give ayurveda a modern image

Target segment – college students

Packaging – tubes

SKUs – 25 gm and 50 gm

Pricing – Rs 25 and Rs 46, respectively

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Key ingredients – rose, orange, aloe, walnut

Other attributes – antiseptic, no side-effects and suits all skin types

Market share – 2% to 2.5%

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Vacant Position

Need for a new product• Fairness products contain bleaching agents which

make the skin dry and flaky, especially during the winter season

• Consumers need to apply a separate moisturizer after the application of the fairness product

• No existing products for use on other visible parts like arms and feet

Vacant position• A fairness product that contains a moisturizer and

is priced low enough to be applied on arms and feet

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Increase rural market penetration

Launch new brands like ‘Handsome’ for men, specially target at urban youth

Media exposure

Increased focus on personal grooming – adaptive products

Road Ahead

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Thank You!!!

For the confident look