Sabahat Ghazal
MBA
INTRODUCTION The objective of carrying the study of Fair & Lovely was: •
To study the current market strategy
•
To identify identify the reasons for the shyness towards the product
•
Compare and analyze the desired positioning with the actual perception
•
ive recommendations for enhancing !rand "#uity and usage
$ince our objective was to identify the reasons for the shyness and then determine the positioning of the product we had to gain e%tensive insight into the target market of Fair & Lovely "ven though our group represents the prime target market of Fair and Lovely we did not want to restrict the views about the product and its usage to us four only and therefore we conducted a consumer research and e%tensive focus discussions with the target market females for a valuable insight in the real co nsumer needs
For our consumer research we took a sample of '( females) as the scope of this report and the lack of time did not allow us to take a larger sample The findings of this research are attached attached in the report and the marketing marketing plan that we propose ahead is also based on these research findings
*oreover since the cosmetics and beauty care is a very comple% and competitive industry we have tried to carry a retailer survey in order to find the most pertinent competition at the shelf space level and their respective positioning
•
Compare and analyze the desired positioning with the actual perception
•
ive recommendations for enhancing !rand "#uity and usage
$ince our objective was to identify the reasons for the shyness and then determine the positioning of the product we had to gain e%tensive insight into the target market of Fair & Lovely "ven though our group represents the prime target market of Fair and Lovely we did not want to restrict the views about the product and its usage to us four only and therefore we conducted a consumer research and e%tensive focus discussions with the target market females for a valuable insight in the real co nsumer needs
For our consumer research we took a sample of '( females) as the scope of this report and the lack of time did not allow us to take a larger sample The findings of this research are attached attached in the report and the marketing marketing plan that we propose ahead is also based on these research findings
*oreover since the cosmetics and beauty care is a very comple% and competitive industry we have tried to carry a retailer survey in order to find the most pertinent competition at the shelf space level and their respective positioning
RESEARCH FINDINGS The view from the users of Fair and Lovely was one of admiration for the products effectiveness They held a highly favorable attitude toward the product The length of use and favorabi favorabilit lity y of results results shaped shaped the intensi intensity ty and degree degree of this product product
Their Their
favorable beliefs mostly focused on positive e%pectations about product success and result from using the the product +verall) their attitudes attitudes were strong and are constantly constantly fed by their hope of product success The ever,increasing number of product sales also reflects these attitudes
The views from the non users was that of lack of faith in the product success They believe that the product is actually skin bleach) a lack of awareness of the natural ingredient of the product) and skin reactions that can be caused by the product
Through our research that is attached in the appendi% we found that Fair & Lovely enjoys the highest recall and recognition) which is a big asset for the product
-n addition a very interesting fact that came out of this research was that the second most recalled product was $tillman.s which is not essentially a fairness cream but a bleach cream Therefore we feel that Fair & Lovely faces competition not only in the fairness creams category but also other categories
*oreover it was interesting to note that most of the respondents viewed Fair & Lovely as the only a Fairness Cream) which highlights the fact that the sunscreen aspect of the product has not been really capitalized on
The area of improvement that was very clearly identified was that of -mage *ost of the respondents felt that the image should be altered
INDUSTRY The beauty industry is a fragmented industry with many players operating in the market The industry is broadly divided into two sectors) the branded sector and the unbranded sector) which produces counterfeit products /owever on a more structured level the beauty care industry can be divided into various categories shown below
T h e I n d u s try Beauty
F a ir n e s s
!atural
F a ir & L o v e l y, English, O liv ia , Fairglo
o s " e ti% s
h e " i% a l
M o is tu r iz e r s
re " e s
B e a u ty S o a . s
F a ir & L o v e l y , English, S t ill " a n $s , F o r h a n $s , + o n d $s , a t h y - a lla s
B le a % h r e " e
B le a % h r e " e ( ) e " o v in g *
E"e#, S t ill " a n $s , & T o u %h " e , Tibet
O l iv i a , 'olen
The generic segment under which Fair & Lovely falls is the beauty segment The beauty segment can be further subdivided into various categories such as cosmetics) moisturizers) cr0mes and soaps +ne of these categories is fairness
1part from fairness creams there is the category of Cosmetics which includes all makeup stuff such as lipsticks) nail colors) foundations and eye colors *oisturizers are another category in the beauty care segment +il of 2lay) Clean and Clear and 3ivea lotions are major players in the moisturizers market The cr0mes category includes cold cr0mes and other specialized cr0mes that again cater to the beauty needs 4onds and Forhans are notable players in this segment
Then there is the category of beauty soaps 3ow even though beauty soaps come in the soap industry we feel that now as soaps broaden their function and target specific beauty issues they have been recognized as a separate player in the beauty segment
3ow within the fairness cr0mes category) there are further sub categories of natural cr0mes and chemical cr0mes -n the natural cr0mes segment the major players are fair and lovely) "nglish fairness snow and the latest +livia ubtan cream -n the chemical category the cr0mes are mostly the bleach creams and most famously known Tibet snow "ven though the bleach creams are not essentially fairness creams) they are mistaken by the majority as performing the same function $tillman.s bleach cream has done very well in this category and has ac#uired a significant share of mind
STAGE IN THE PRODUCT LIFE CYCLE The category of fairness creams is in the growth stage in the product life cycle
Product Life Cycle
s e l a S
Years
CATEGORY ATTRACTIVENESS The attractiveness of the category can b e ascertained through the five competitive forces
COMPETITIVE FORCES The threat of substitutes : For the fairness cr0mes sector there are many substitutes in
the form of bleach cr0mes) scrubs) moisturizers) and sunscreens Customers have a wide variety to choose from
The threat of e! etrats : The threat of new entrants is moderate 1lthough the capital
costs are not very high for this category) yet the barriers to entry e%ist in the form of established brand names in the market 1ny newcomer finds it hard to make its product recognized in the market and to break away from the clutter) not to mention the shelf space
The bar"aii" #o!er of bu$ers is high in the fairness category and for the whole
beauty segment on the whole This is mainly because beauty care products are high involvement product s and consumers have their special preferences and needs regarding the products *oreover there are so many sellers in the market that the buyer of the company to bargain is reduced and the buyer can e%ert a considerable influence on the market
The bar"aii" #o!er of su##%iers is low for this industry This is mainly because the
raw materials for this industry are easily available in the market /owever the level of integration in the industry is low
Itra i&ustr$ ri'a%r$ is most significant in the industry 3ot only in the category itself
but also competition from other categories is very strong
DRIVING FORCES For the beauty care segment the main driving forces that affect the way the industry operates are:
•
Pro&u(t Io'atio is a very strong and significant driving force for this industry
and will be even more in the future This is so because the industry customers are getting sophisticated by the day and there is an ever increasing need for products to be geared toward their specific needs and thus making more room for innovation
•
Cha"i" bu$er #refere(es is also a driving force in the sense that the
changing needs of buyers determine the way and direction of the industry to a considerable e%tent
•
Mar)et Io'atio is also a driving force in high involvement products such as
Fair and Lovely 3ewer ways of marketing and presenting the product to the customers create new opportunities and steer the way the industry operates in
•
Cha"i" so(ieta% (o(ers and lifestyles is another important driving force for
this industry *ore working women) more outdoor social gatherings and other such new trends all e%ert a considerable influence on the beauty care industry
*EY SUCCESS FACTORS $ome of the more important success factors in the industry are:
•
+ua%it$ of Maufa(ture, $ince the products are for personal care purposes) the
#uality of the product is very important 4roducts survive in the market due to their reputation with the buyers and if poor #uality results in dissatisfaction for the consumer) the image of the product is marred and it becomes very difficult to recoup the lost customer confidence
•
Stro" Distributio Net!or), -t is very important that your product has a very
good distribution system because we feel that customers do not have a fi%ed place that they buy these products from -t could be from the shop near the house) or the grocery store that they generally buy groceries from) or it could be a chemist Therefore your product should be spanned across all these purchase points so as to ensure success
•
Gaii" A-#%e S#a(e o Retai%ers She%f : $ince there is very large pool of
products that are intending to serve the same need beauty care products have a very strong fight for ade#uate shelf space The larger the shelf space the higher the probability of your product catching the eye of the consumer
•
Fa'orab%e I-a"e a& Re#utatio !ith .u$ers : -n beauty care products we have
seen that whenever consumers have e%perimented with a product) the initiative is generally backed by cross confirmation with some other source 1s a result of this the image and reputation among the customers becomes a key success factor in the beauty care industry
•
Abi%it$ to res#o& /ui()%$ a& #ositi'e%$ to shifti" -ar)et (o&itios :
consumers needs and wants change over time They want beauty care products to match their today needs and their personality $unscreens may not be a major concern a few years back) but it has become now Changing lifestyles) aspirations and other environmental factors also induce a change in consumer preferences and in the beauty care industry it is very important to incorporate these changes in order to survive in the long run
COMPANY Lever !rothers is a part of 2nilever) which is a global company Lever !rothers is the largest fast moving consumer good company in 4akistan with a sale of over 5$ 6( billion of well,known household brands The main emphasis of the company is on continuous change with launch7relaunch every month -t has over '( brands and about 6'(( employees Lever !rothers is aware of and is fulfilling its responsibility to both the environment and its customers 1s mentioned earlier) Lever !rothers has a number of branded products and services) which raise the #uality of life Lever !rothers serves the everyday need of all the consumers for food) hygiene and beauty through branded products and services that deliver the best #uality and value The company can basically be divided into three business units:
8 /ome and 4ersonal care 6 !everages 9 Food
MISSION •
Leading consumer product industry in 4akistan) a multinational with deep roots in 4akistan
•
1ttract and develop highly talented people who are e%cited) empowered and committed to deliver double,digit growth
•
$erve the everyday need of people everywhere for food hygiene and beauty through branded products and services that deliver the best #uality and value
•
$trive to remain an ever simple an enterprising business
•
2se our superior consumer understanding to produce breakthrough innovations in brands and channels
•
The brands capture the hearts of consumers through outstanding communications
•
Through managing a responsive supple chain) Levers ma%imizes value from suppliers to customers
•
Levers is e%emplary through their communication to !usiness "thics) $afety) /ealth) "nvironment and involvement in the Community
PRODUCT DEVELOPMENT Fair & Lovely was introduced as a fairness cr0me in 8;< The product was initially launched in tubes of 6' g and '( g 1t that time) the product was only catering to a small segment of the market and there was no other packaging -n the first 6 to 9 years the product did not do very well The reason behind this was that first of all) people were less conscious about their skin and comple%ion and thus) there was less awareness $econdly) there was the availability of cheap cr0mes) which were being smuggled and widely available at low prices Thus) people preferred using such cr0mes to Fair & Lovely 3ot happy with the way the product was doing) the company tried to change the image of Fair & Lovely Thus) it was not only to be considered as a fairness cr0me but also as a sunscreen) which would maintain and enhance your comple%ion =ith more brand awareness being created for the product) people started using Fair & Lovely and thus) it gained a considerable market share Thus) to cater to the growing market) two years later the jar was introduced This was basically because a lot of people who were now more conscious of their skin and comple%ion wanted to actually see the product they were
using Later on) sachets were also introduced 1t present) Fair & Lovely is the only cr0 me in 4akistan that is available in sachets
5ecognizing the needs of the consumers) Fair & Lovely.s cold cr0me was introduced for winter usage and dry skin The cold cr0me also contained the same fairness and sunscreen ingredients but was made available in the form of cold cr0me to keep the skin smooth and soft in the dry winter season -n the beginning of the year) Fair & Lovely lotion was launched which was a product that could be used all over the body 2nlike the fairness cr0me available in sachets) which were only meat for the face) this lotion was introduced so that the consumers could use the product all over their body to protect it from the sun and without giving their body an oily feel
5ecently) Fair & lovely soap has been
launched 1part from that) Fair & Lovely has also been added with a new nutririch ingredient) which now provides triple protection -t contains Fairness >itamin !9 and natural milk protein) which enhance your comple%ion and provide nutritional benefits to the skin
CUSTOMERS The need behind the use of a product such as Fair & Lovely is that of social acceptability "verywhere in the world and most particularly in 4akistan beauty is something that has become a prere#uisite for being socially accepted This need is most pressing in the female population who have a strong desire to look good) to be the center of attention) to be praised of their beauty and to be attracted to the opposite se% The concept of beauty in 4akistan is very much aligned) rather is synonymous to fairness 1 fair girl is a beautiful girl in 4akistan This mentality becomes very evident when mothers sketch a figure for their ideal daughter in law Fair) tall and slim are three most important things that are generally the criteria for judging on es beauty Fair & Lovely being a fairness cream very effectively serves this need in women The target audience for Fair & Lovely is the urban female population of 4akistan
SI0E OF THE TARGET AUDIENCE The target audience and market have been calculated on the basis of data available in the "conomic $urvey 6((( =e have estimated our target audience to be the urban female population of 4akistan 4opulation of 4akistan @ of 2rban 4opulation : A?')9'<)((( 7 89B)((()((( D8(( 2rban 4opulation of 4akistan: A8?()((()((( D (998( @ of Female 4opulation: A<<)869)((( 7 89B)((()((( D8(( 2rban Female 4opulation of 4akistan: A?<9? m D (?;6< Therefore, Our Target Audience is D $ource: 4akistan "conomic $urvey 6(((76((8
8?( million 998(@ 46.34 million ?;6<@ 669<9 million 22.363 million
TARGET AUDIENCE CHARACTERISTICS DEMOGRAPHICS This aspect of human society plays an important role in market segmentation by Fair & Lovely.s brand management team The important elements of demographics that are relevant for Fair & Lovely are age) education level and income
Lever !rothers ideally wants to target the young female population of 4akistan who is ideally educated) but other women who are not very well educated also come under the periphery of the target market for Fair & Lovely with the basic awareness of being able to improve the color of one.s comple%ion being the primary prere#uisite
Fair & Lovely is not highly priced) but is available at different prices for different sub, segments of the target market For those who are not really regular users of the product due to lack of disposable income) the 6',gram tube is the ideal choice
PSYCHOGRAPHICS 1 LIFESTYLE Lifestyle can be viewed as a uni#ue patter of living that influence and is reflected by one.s consumption behavior 4sychographics may be viewed as the method of defining lifestyle in measurable terms The segments that can be identified using this techni#ue are discussed as follows
$egments can be made on the basis of differing activities of the women forming the target market The ideal lifestyle of a Fair & Lovely user would comprise of those who wish to be Esocial butterflies.) so to speak) but do not #uite get the opportunity -nterests of ideal Fair & Lovely users encompass reading magazines such as E1khbaar,e,ehaan.) watching television plays Aespecially soap operas) and doing things typically e%pected of 4akistani women +pinions also play a major role in lifestyle segmentation Fair & Lovely users tend to be more conservative and
conventional in their thinking when compared with other female members of the population
.RAND LOYALTY 4roduct usage is an important element when it comes to market segmentation Fair & Lovely.s brand management team seeks not to just attract brand users) but more importantly) those consistently purchase the brand +nce a consumer does start using Fair & Lovely she usually becomes a repeat buyer) thus becoming one of the company.s brand loyal consumers
PRODUCT USAGE Fair & Lovely is available in different shapes and sizes to cater to those ranging from light to heavy users The characteristics of people purchasing different varieties of Fair & Lovely also differ For e%ample) the heavy users would re#uire the highest volume packages such as the <( ml jar The light users or those who have just adopted the product would be using either the sachet or the 6',gram tube
.ENEFITS SOUGHT 1s is the case with several products) people seeking to derive different benefits out of its use also purchase Fair & Lovely The basic benefit is definitely that of attaining a fair comple%ion) but there are those who use it solely as a sunscreen Fair & Lovely is also mi%ed with a medication) !etnovate to achieve what some people claim to be the ultimate in skin care Therefore) Fair & Lovely is purchased with the primary purpose of making one.s comple%ion fair) but there are other benefits available to the users as well
TARGET MAR*ET SEGMENTATION =ith Fair & Lovely) Lever !rothers 4akistan Ltd aims to target the young female members of the 4akistani population as its primary target market 1 clearer picture of this is:
•
8B G 9( year old femalesH
•
Lower *iddle) *iddle) and 2pper *iddle classH
•
5esiding in areas such as 3azimabad) ulshan,e,-#bal) 4"C/$) IJ1 etc AIarachi target market
2HY THIS TARGET MAR*ET3 This segment of the female population has been targeted because this is when most women start getting really conscious about their appearance and start comparing themselves with other women Fairness is that part of beauty) that has been given) at times) too much preference in our society
Fair & Lovely aims to remove the inferiority comple% brewing amongst the darker comple%ioned 4akistani women 1ll women do tend to develop some sort of comple% at this age) and the glamour appeal provided by Fair & Lovely seeks to put all on an even keel as far as skin color is concerned
TARGET MAR*ET CHARACTERISTICS DETERMINE PURCHASER 4USER The purchases of Fair & Lovely are generally made by mothers who may not necessarily be the final consumers !ut for females above the age of 68 the purchases are made generally by themselves The buying behavior maybe characterized as “Complex Buying Behaior! from the point of view of the user since they would be highly involved with
such a self,e%pressive and in a way) a risky product and perceive significant brand differences
INFLUENCES •
*other
•
5elatives7Cousins
•
Colleagues
•
Celebrities
•
Teachers
AMOUNT PURCHASED OR USED The '( mg tube of Fair & lovely generally lasts for about two months if applied at least once daily The 6',mg tube) however) lasts for about a month or so) again if applied at least once daily
DEGREE OF INFLUENCE ON USAGE OR PURCHASE DECISION •
The relative advantage of Fair & Lovely of being associated with 2nilever definitely influences purchase decisions
•
-t is also compatible with the users. values of social acceptance etc
•
-ts non,comple%ity also influences usage and purchase decisions
The purchaser may not have a high degree of usage or purchase decision since he7she may not necessarily be the final consumer
SI0E OF THE MAR*ET +ur Target *arket is comprised of the 2rban Female 4opulation of 4akistan aged between 8B,9' They are the consumers who are most likely to purchase and use Fair & Lovely This specific number of people who come under this target market have been calculated below
2rban Female 4opulation) calculated in the Target 1udience @ of 4opulation b7w 8',8: @ of 4opulation b7w 6(,6? : @ of 4opulation b7w 6',6: @ of 4opulation b7w 9(,9?: @ of 4opulation b7w 8',9?: 2rban Female 4opulation b7w 8',9?: A669<9m D (9';96 Therefore, Our Target "ar#et is$
669<9 million 88'B@ ;?@ BB;?@ <<6@ 9';96@ ;(89 million %.&'3 million
2HO IS THE TARGET MAR*ET OF THE COMPETITION The target market of the competitors of Fair & Lovely such as Tibet $now) "nglish fairness $now) *od girl Cream !leach etc is the middle,middle and the middle,lower income classes 1part for this) E2btan. and E*ultani *itti. and such other desi items of skin care and protection are used by middle class as well as the lower classes of income The upper class generally prefers international brands such as "mami 3aturally Fairness Cream and product ranges offered by 3eutrogena) Freeman and $t -ves etc for skin care and protection
THE INHERENT .ENEFITS OF YOUR PRODUCT TO DIFFERENT TARGET SEGMENTS The target segments use Fair & lovely for a number of purposes 3ot only is it used for fairness purposes but also used as an effective sunscreen Competitors such as *od irl) "nglish Fairness Cream) Tibet $now etc) are only used as fairness creams Therefore) Fair & Lovely has a relative advantage of fulfilling dual re#uirements of the consumers together in one offering
COMPARISON OF CURRENT TARGET TO DEMOGRAPHICS AND GEOGRAPHIC MAR*ET PROFILES The current target market is the middle,middle and the middle,lower classes of income These markets usually reside in urban areas including major cities such as Iarachi) -slamabad) Lahore) 4eshawar) and Kuetta 1lso smaller cities of ujranwala) Faisalabad) *ultan) Larkana) 1ttock etc have the market potential 1s more and more population shifts from rural to urban areas) the market for such fairness creams is almost absent in rural areas The age group targeted by the company is between late teens and early 9(s !ut women over 9' years of age also use Fair & Lovely as sunscreen primarily
DETERMINE 2HETHER THE TARGET CONSUMER IS A HEAVY USER 4PURCHASER The target consumer of fair & lovely is generally a heavy consumer applying the fairness cream twice daily as recommended by the company et) the target consumer may not necessarily be a heavy consumer in case of usage as a sunscreen 1lso) the purchase may not necessarily be heavy also since there may be gaps in the fre#uency of purchases
THE IMPORTANCE5 DELIVERY5 UNI+UENESS 6IDU7 ANALYSIS
2ni#ueness
>ariables
- *4+5T13C"
F1-5 & L+>"L
$T-LL*13$
T-!"T
4erformance
8(
B
;
4rice
;
<
;
$mell
;
<
5eactions
-mage
B
B
8(DBND;N;D
$T-LL*13$ M
8(D;ND
T-!"T
8(DND;N;D
M
<
9
SCORE F1-5 & L+>"LM
'
;
;
<
Through this analysis we are trying to find out as to what options does Fair & Lovely have to improve its over all score
The first option is to improve the importance of one of the variables that the company does well on but has a low perceived value
The second option the company has to improve the perceived performance of the brand on the attributes that are considered important by customers -n this case performance and effectiveness is an important variable but which is not performed well by the Fair & Lovely brand as compared to Tibet
1lso the perception about Fair & Lovely on the image variable is low despite its high importance
DEMAND ANALYSIS GEOGRAPHICAL TERRITORY 1ll major urban and suburban areas of the country
CONSUMPTION CONSTRAINTS /igh pricing as compared to traditional constraints) lack of awareness regarding the product and more confidence in traditional7herbal solutions to achieve the same purpose
AVERAGE PURCHASE CYCLE The average purchase cycle has been identified as one month
TOTAL PURCHASE PER YEAR PER CATEGORY 8<; million tubes a year for the total market
AVERAGE PRICE 5s 6B per tube of a 6','( mg tube
TOTAL R S8 PURCHASES 5s 6?B'9< million
COMPETITION FORMS OF COMPETITION Fair & Lovely faces competition not only from the other Fairness Creams in the market) but also from other beauty products such as bleaching creams) sun blocks) facial washes and other home made beauty care remedies and tips The reason for this is that all these products are essentially providing the same need ie protecting the skin and looking better /ence) when analyzing the competition for Fair & Lovely) it is important that the different forms of competition ie product class) product form and generic competition are all studied
4onds *oisturizer
"nglish Fairness $now 2btan
Fair 1 Lo'e%$ Tibet $now
*od irl
Fairever
$tillmans !leach
5evlon $unblock
4roducts such as $tillmans !leach Cream poses as competitors to Fair & Lovely as many people confuse the uses of a bleach cream with that of a fairness cream as both products are designed to make the skin lighter Furthermore) house hold kitchen remedies and products such as 2btan) though not part of the fairness cream category or even the beauty care segment can not be ruled out as competitors as a lot of people use these products on their skin to moisturize it) lighten it and protect it
RETAILER SURVEY 1 retailer survey was conducted in order to determine the major competitors in the market) their relative positioning and other important variables such as price) shelf space etc The major retailers in different areas were selected for this purpose These included 1ghas) Jeltons) Time *edico) umbo) 3aheed $uperstore and -mtiaz store +ur findings from this survey are provided below
.ra& Tibet $now
Pri(e 6'
Positioi" 4erfumed $kin Tonic) *akes skin velvety soft
and -ndian Fair & Lovely 3ivea !ody Lotion +il of 2lay =hitening "mami 3atural Fairness Cream Fairglow Freshia 5ich & Lovely 5evlon Touch & low
89' 8<' 8; 6< ' ' 8' 6'
white)
4revents
against
roughness)
chapness and redness entle and $oft Fluid for a naturally Fair and "ven $kin tone /erbal Fairness Cream 3oticeable Fairness) the natural way Complete cream with sun screen To make you fair and OO
MAR*ET SHARE Fair & Lovely is the market leader in the EFairness Cream. Category as #uoted to us by the !rand *anager of Fair & Lovely This was also verified in our survey) as all the retailers whom we #uestioned about the most selling fairness cream brand in their shops responded with Fair & Lovely
"nglish Fairness $now and Tibet $now are the only major local competitors that Fair & Lovely faces in the fairness cream category /owever) both these brands though present in the market for a considerably long time do not enjoy the same brand recall and recognition as Fair & Lovely Furthermore) even in terms of sales) Fair & Lovely has a decided edge over these brands 1nother local company E+livia. has also recently come up with a new fairness cream called the +livia 2btan Fairness Cream) which will be also be directly competing with Fair & Lovely
+ther than these local brands) Fair & Lovely also faces competition from the foreign smuggled brands from -ndia) -ran and Jubai These creams such as "mami 3atural cream) Fairever etc) though do not enjoy a very high share of the market still pose a threat to Fair & Lovely The Fair & Lovely -ndian !rand is also smuggled into the country /owever) Lever !rothers do not consider it a major threat as it feels that it complements their sales 1lso since the -ndian !rand is more e%pensive as compared to the local brand therefore) it does not cannibalize the major portion of their sales
MAIN COMPETITORS E"%ish Fairess So! This creme is available in a little glass jar and also a 6',gram tube "nglish is a local company) which has surfaced in the recent past -t started out with its dental care product line) ie toothpaste and toothbrushes This product combines natural and chemical elements into one mi%ture and aims to provide the same benefits as Fair & Lovely The one thing that "nglish lacks is an established brand name and the company really needs to look to improve its promotional strategies The promotional methodology pales in comparison to that of Fair & Lovely
Tibet So! Tibet $now has been established in the market for a long time Tibet is the leader in the cream category) but not in the fairness creams Tibet $now enjoys a good enough recall among its target consumers but it is not as established as Fair and Lovely -t is available in most of the retail stores and is usually placed close to Fair & Lovely -ts red and white colour is very striking and hence the product can be recognized from a distance Tibet $now does not advertise or promote its product e%tensively /owever) they do advertise in some of the 2rdu *agazines
Sti%%-a9s .%ea(h CreaThis cream is available in a 6;,gram pack The product formulation is a bleach cream G thus) it whitens the skin with the help of bleaching agents This cream is supposedly patented in the 2nited $tates and is affiliated with a 2$ company This obviously helps in enhancing its image -t is available at most of the retail outlets where Fair & Lovely is available -t is also displayed on product shelves near Fair & Lovely
The price is 5s ;( /ence) it is almost three times the price of the Fair & Lovely tube of almost the same size The primary promotional media are television and print 4rint ads are usually featured in women.s 2rdu magazines such as PIhawateen JigestQ 1ds in the magazine tend to be towards the center or near the fashion pages The theme revolves around a model that claims to use the cream to become fair
E-e: .%ea(h CreaThis cream comes in a tube formulation 2nfortunately) product details an price could not be determined The ads pertaining to this brand are mostly print ads and usually appear in P1khbaar,e,ehaanQ The ads are mainly marriage,focused and display the thoughts of the groom.s mother about potential brides for her son $he finally chooses a girl who is fair and uses "me%) just like the groom.s mother
Tou(h-e Little information was available about this product The ads are mostly print and tend to focus on a model that claims to use the product
O%i'ia 1 ;o%e These are bleach creams that have to be removed after 8( G 8' minutes of use The prices of these products are 5s ?( and 5s <' respectively for a 9(,gram pack 4romotions mostly appear on T> and in print
*ath$ Da%%as S)i Re#air CreaThis cream is a Pfi%,allQ cream that claims to repair all skin defects including sun damage -t is supposedly an 1merican patented product 4romotions mostly appear in 2rdu magazines The promotion type is testimonial
Forha9s This product is another all,purpose cream -t also claims to lighten skin comple%ion 4romotions are mostly print ads and tend to appear in 2rdu magazines
S2OT ANALYSIS STRENGTHS •
The advantage of having the 2nilever name associated with the brand
•
"stablished distribution network
•
Capitalize on the market leader status in the market of fairness creams
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$uperior positioning as a trusted name for skin care and protection
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The benefits of being backed and supported by an e%perienced & professional team of marketing and sales e%perts of 2nilever
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Competitive advantage of packaging ie in tubes that are convenient to use
2EA*NESSES •
1bsence of distinctiveness or differentiation
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The market is not vast and mature enough to sustain product changes as well as changes in strategies
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-neffective advertising strategy
OPPORTUNITIES •
Capitalize on the 2nilever connection
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Jue to the limited size of the market) effective and efficient research on changing consumer preferences is made possible
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There is a great need for fairness creams and sunscreen for social acceptance and the company has successfully identified and evaluated this niche
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$trong brand recognition due t effective packaging) color association and logo used
THREATS •
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Jifficulty in keeping up with the changing *icro Trends 3o protection of licenses) trademarks etc in the country leading to an absence of rights to protect proprietary knowledge
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-nflu% of international brands of fairness creams) masks) etc and other skin care and protection products that have secured the upper segment of the market
PRODUCT Fair and lovely is a product of Lever !rothers and falls in the 4ersonal care segment -t is commonly regarded as a fairness cr0me and falls under the natural method category
Fair & Lovely is a natural product) which comes in the form of a vanishing cr0me -ts advantage over other cr0mes is that it can be applied easily and gives the skin a smooth look "ven though Fair & Lovely protects the skin from the sun) it is not rub,proof or waterproof like a sun block -t would fall more in line with the sunscreens) rather than the sun blocks Fair & Lovely has a uni#ue physiological attribute) which makes it a natural product The human skin possesses melanin) whose molecules when grouped together make the skin seem darker Fair & Lovely) wherever applied) distributes this melanin evenly and this results in a seemingly fairer comple%ion Thus) Fair & Lovely can be considered as a safe and gentle way to fairness 5ecently) a breakthrough scientific research was carried at Lever $kin Centre and hence) Fair & Lovely now contains a new 3utririch vitamin !9 1long with enhanced sun protection with proven double sunscreen system) the product is now further boosted with a natural sunscreen
The product faces competition with a variety of substitute products Firstly) the market contains -ndian manufactured Fair & Lovely Then) there are substitutes available which offer the same benefits as Fair and Lovely These could include brands such as $tillmans) Tibet $now) and "nglish Fairness $now
PAC*AGING 1 product.s packaging is also a part of the marketing mi% element Fair and lovely has a very distinctive packaging) which is adopted globally For instance) it is hard to differentiate a Fair & Lovely manufactured by /industan Levers from that manufactured by Lever !rothers 4akistan ltd or one made in 3epal without first referring to the information on the packaging
Fair & Lovely.s packaging shows two female faces in tandem) one a bit darker than the other The packaging is pink and white) so as to appeal to the psyche of the female consumer Fair and lovely altered its packaging Aboth the bo% outside and the tube inside slightly last year when it added a new ingredient to the fairness cream and therefore) inserted the word P3"= 32T5-5-C/Q on the packaging
Fair & Lovely comes in the following packaged varieties: •
8( ml sachet
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6' gram tube
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'( gram tube
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<( ml jar
Fair & Lovely is available in different shapes and sizes to cater to those ranging from light to heavy users The characteristics of people purchasing different varieties of Fair & Lovely also differ For e%ample) the heavy users would re#uire the highest volume packages such as the <( ml jar The light users or those who have just adopted the product would be using the 6',gram tube The first time users or the ones using it on trial along with the ones who cannot afford the tube and jar Asuch as the females belonging to the lower income group would opt for the sachet
PLACE Lever !rothers 4akistan LTJ has a very strong distribution network across the country -t distributes Fair & Lovely evenly throughout 4akistan through its network of sales branches 1t the retail level) Fair & Lovely is available at all types of stores catering to the different income levels The following table would clarify the distribution strategy of Fair and Lovely Ain Iarachi region only:
INCOME CLASS Lower income group
PLACE Iiryana stores) khokhas) pan shop
Example- khokha near -!1) kerayla *iddle income group
store in 4echs eneral) retail and discount stores and supermarkets Example-
2pper income group
-mtiaz
discount
store)
3aheed store $upermarkets Example-
1gha.s
supermarket
and
Jeltons /owever) one important point about its distribution strategy is that it would be easier to locate Fair & Lovely at a retail store in the ulshan,e,-#bal area rather than the posh retail outlets such as Tes,*art This may be because of the reason that its target market is defined as the females belonging to the upper and lower middle group
The product is distributed through the distributors but the company has ade#uate say in the placements of the product
PRICE $ince this product is targeted towards the middle and lower middle class women) the pricing has to be in line with their household incomes Lever !rothers 4akistan Ltd basically follows a cost,plus pricing approach The pricing strategy used by Fair & Lovely entails product,line pricing
PRICES OF FAIR 1 LOVELY MANUFACTURED IN PA*ISTAN Pa()a"i" 8( ml sachet 6' gram tube '( gram tube <( ml jar !ottle
Pri(e 6Rs7 < 6B '6 ''
PRICES OF OTHER SU.STITUTE PRODUCTS .ra& Tibet $now $tillmans !leach Cr0me "nglish Fairness $now
Pri(es 6Rs7 <= ;( 6B
Fair and Lovely manufactured in -ndia is also available but at a considerably higher price than the 4akistani brand
Looking at the prices of its competitors) we can say that Fair and Lovely is available at an affordable price and is not priced above its competitors 1long with that) the retailer margin on Fair & Lovely is #uite high -t is around 5$ 8( on the 6' g tube and around 5$ 6( on the '( g tube and the <( ml bottle
PRICE .REA*DO2N 4rice of Fair & Lovely
5etail 4rice 7 6' ml $ales Ta% 4rice less $ales Ta% 5etailer *argin Jistributor *argin Co-#a$ Pri(e
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The 5etail 4rice of a 6' ml tube of Fair & Lovely is 5s 6B $ales Ta% of 8'@ is deducted from this price and a 5etailer *argin of 5s has been subtracted from it to arrive at the "%, Factory or Company 4rice of 5s B; 5etailer *argins for the other Fair & Lovely products include 5s 6( for the Fair & Lovely cold cream and 5s 8' for the larger sized A'( ml Fair & Lovely tube 1ccording to the information received from the company the distributor margin is '(@ of the retailers margin) which amounts to 5$ ?' The company d id not disclose the e%act percentage
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Fair & Lovely
Fair & Lovely
The world.s largest selling fairness cream G Fair & Lovely AF1L =hile beauty is a universal desire amongst all women) specific beauty needs and beauty icons differ across regions
World's no.1 fairness cream !ased on breakthrough scientific research on skin care from 2nilever) Fair & Lovely fairness cream gives you unmatched radiant fairness in just ? weeks Fair & Lovely was developed in -ndia in 8B' 3ationally marketed since 8B; ) this fairness cream brand has been e%tensively tested with consumers in -ndia and abroad -n terms of benefit and delivery Fair & Lovely has proven to be superior to all key competitive brands Connsumers perceive the brand as empowering and transformative -n $ri Lanka Fair & Lovely was launched in 86) which became the leading fairness cream in the market within a very short period of time that has led to the growth of the fairness segment in skin care
Fair & Lovely - skin care cream for asian skin Today Fair & Lovely has reached a high groun d of science and efficacy and remains non, chemical and easily comprehensible The new fairness proposition has been brough t alive through multi,vitamins) a mi% of four essential vitamins each of which help in giving fairness N nourishment) resulting in the re,launched F1L 4ink being henceforth known as F1L multi,vitamin fairness cream *ulti,vitamin is the breakthrough new fairness invention that has four essential skin vitamins A1) !) C) " which give you the four signs of beauty parlour fairness) but with total fairness N nourishment The four signs of beauty parlour fairness in the new *ulti,vitamin formula:
Vitamin B3 – radiance but it!out bleac! •
>itamin C G "ven,tone like derma,brasion
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>itamin 1 G $kin elasticity of chemical peels
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>itamin " G Jeep hydration like fruit facials
1nd much more , >itamin !9NC give glowing fairness in four weeks) >itamin 1N" give genuine skin nourishment from within and triple sunscreens protect your fairnessV
Fair & Lovely "yurved!a fairness cream Fair & Lovely 1yurvedha Fairness cream brings in the fairness secrets of ancient ayurvedha that provides 3ourishment) 4rotection and 4urification -t is enriched with the magical 1yurvedic blend of Iumkumadi +il,a mi%ture of 8< 1yurvedic ingredients) which enhances comple%ion and cures discolouration of skin
Fair & Lovely "nti-marks The miracle worker Fair & Lovely now not only promises a bright radiance but also pledges a flawless skin through the 1nti, *arks variant -t contains proven 1yurvedic ingredients including 3eem) Chandan) and !rahmi that creates a wonderful formulation for every mark) which helps to give a fair) clear and even toned skin *ore specifically) it reduces dark spots left from pimples) lightens pigmentation marks) reduces dark circles and lessens stretch marks
" ne be#innin# unfolds$$
%erfect adiance -n 6((< Fair & Lovely unveiled the secret to perfect skin with E4erfect 5adiance.) a complete range of 86 premium skincare solutions from Fair & Lovely The 4erfect 5adiance range from Fair & Lovely contains international formulations from 2nilever.s lobal $kin Technology Centre) combined with ingredients best suited to -ndian skin types and climates 4erfect 5adiance products are divided into 9 main groups GCleansing) Jaily Care and $pecial Care 1ll twelve products in the 4erfect 5adiance range have been specially formulated to re,activate the skin.s radiance) while simultaneously working to lighten and tone the skin The range is a sensuous bou#uet of scrubs) cr0mes) gels and lotions -t.s uni#ue !iolight Formula) researched and proven by 2nilever lobal $kin Technology Centre) ma%imises skin, lightening efficacy) for visibly radiant skin =ith satin te%tures) pleasing colours and soothing fragrances that bring alive a spa,like e%perience) the range works in complete harmony with $ri,Lankan skin to provide specific solutions and protect from the environment 4erfect 5adiance recommends the Cleansing routine) to effectively purge skin of all impurities Gsurface layer of dead cells) e%cess sebum) an d pore blockages and surface *elanin
Fairness t!at c!an#es your destiny Fair & Lovely is one of 2nilever $riLanka.s key brands offering skin lightening benefits to thousands of $ri,lankan women -n line with the essence of the the Fair & Lovely brand, Efairness that changes your destiny. in 6((9) 2nilever decided to provide more than skin lightening benefits to the brand.s consumers Thus the Fair & Lovely Foundation was formed with the objective of initiating programmes to provide economic empowerment and greater prosperity to women in $ri, lanka 3ow more than ever before) the Fair & Lovely brand is set on delivering on its promise of changing destinies) giving wings to the dreams of many a $ri,lankan woman
