PROJECT REPORT ON MARKETING STRATEGY OF FAIR & LOVELY
Submitted to: to: Dr. Saji nair IIM LUCKNOW
BY: Richa 2 (32) Ruchi (34) Reeti (30) Shalini (37) Richa1 (31) Shalini kumari (38) 1
Shrestha (42)
TOPICS PAGE NO. INTRODUCTION ………………………………………………………3 MARKET SEGMENTATION…………………………………………..4 TARGET MARKETING………………………………………………...6 POSITIONING ………………………………………………………….9 DIFFERENTIATION…………………………………………………….10 SUGGESTION.………………………………………………………….12
INTRODUCTION Product: FAIR & LOVELY 2
Brand: HUL
INDUSTRY ANALYSIS • •
•
• •
HLL to HUL HUL is India’s largest consumer product company and was formed in 1933 by Lever brother’s India. HUL is market product leader in India. It is the first company which has introduced fairness cream Fair and Lovely was launched in 1975. Fair and lovely has massive 56% market share.
Fair & Lovely: Evolution of the Brand Hindustan Unilever's star product in the fairness creams segment had evolved into one of the most successful brands over three decades in as many distinct phases. Phase 1 saw the launch of the product in 1976 on the basic premise that "younger women wanted to have fairer skin in order to attract a better looking husband." HUL marketed this brand as a beauty cream capable of providing fairness within 8 weeks. The value proposition lucidly communicated to the consumer base read, "Get noticed by the man of your life." During Phase 2 of Fair & Lovely's evolution, the brand talked to a younger college going woman who is self confident and more modern in her outlook and believes home remedies for facial care to be old fashioned. In Phase 3, this further metamorphosed into a brand offering emotional benefits for achievers who actively seek solutions and do not look at marriage as the ultimate source of personal achievement. Fair & Lovely thus became a brand which communicated a message that Fairness leading to Beauty leading to Good husband to Fairness leading to Selfconfidence leading to Good career.2
THE GENERIC MARKETING STRATEGY The general marketing strategy of any company includes the following steps, so is the case in fair and Lovely. They are as follows: S-MARKET SEGMENTATION T-TARGET MARKETING P - POSITIONING 3
D – DIFFERENTIATION
SEGMENTATION 1) GEOGRAPHIC SEGMENTATION REGIONWISE – Fair and Lovely is preferred all over in India(highly preferred in south).
RURAL AND URBAN AREAS - Rural and urban market segmentation has been done by Fair and Lovely. 2) DEMOGRAPHIC SEGMENTATION 1. Age – In age wise segmentation, Target group is 17-25 years and user group is 12-50 years of age. 2. Income - Segmentation has been done into Lower class and middle class groups as it is allow cost cream. 3. GenderBasic products of fair & lovely Target group: women User group: women & men Fair & lovely Menz Active Target and user group: Men 4. EDUCATION- More users are of uneducated and of less educated group. 3) PSYCHOGRAPHIC SEGMENTATION 1. Life style – It is an important variable as it significantly affects the brand choice of consumers. Here Hyundai is aiming gregarious personalities. 4) BEHAVIOURAL SEGMENTATION 1. Usage rate- It is to find out whether the customers use it on daily basis or occasionally.
2. Loyalty status- It tries to increase loyalty by giving Special incentive like discount schemes Target group is loyal customers 4
RESEARCH METHADOLOGY 1. 2. 3. 4. 5. 6.
Research problem: To study market strategy for fair and lovely. Data source : primary data and secondary data Research Design : Exploratory RD Research methodology: exploratory method Research instrument: questionnaire (5 point likert scale) Research Methodology : Population: Set of all potential Buyers in India. Sampling Frame: Set of all potential buyers in Patna Sample size: 20. Sample method: Judgment sampling.
LIKERT SCALE USED • • • • •
Strongly disagree-1 Disagree-2 Neutral-3 Agree-4 Strongly agree-5
Results for MARKET SEGMENTATION VARIABLES R1 R2 R3 R4 R5 R6 R7 R8 R9R1 R11 R12 R13 R14 R15 R16 R17 R18 R19R20 REGION 5 4 3 4 3 4 3 4 5 4 5 3 4 5 2 3 3 4 3 2 RURAL&SEMIUR 4 4 5 4 4 3 4 5 4 5 4 3 4 5 2 3 3 2 4 3 INCOME 4 4 5 4 3 4 3 4 3 3 4 5 4 5 4 4 5 3 4 3 AGE 4 4 3 4 2 5 5 4 5 4 5 5 4 3 4 5 4 4 3 4 GENDER 5 4 3 3 2 3 4 3 3 4 2 3 4 3 4 5 4 3 3 2 EDUCATION 3 3 4 3 4 3 4 3 4 2 3 4 3 3 2 3 3 4 3 4 LIFESTYLE 4 4 4 5 4 3 2 4 5 3 4 3 3 2 2 3 4 3 3 2 USASERATE 3 3 2 3 3 2 1 3 2 2 1 3 1 2 3 2 1 1 2 2 LOYALTYSTATUS 4 2 1 3 2 3 1 2 3 4 2 3 1 2 3 4 4 2 1 3
3.7 3.8 3.9 4.1 3.4 3.3 3.4 2.1 2.5
Of all these segmentation variables income and age was choosed for focused group discussion for Targeting stage.
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TARGET MARKETING REGION Teenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower Middle upper Lower middle upper R1 4 4 2 5 4 3 4 3 3 R2 5 4 3 2 4 1 1 2 3 R3 4 4 3 5 3 1 3 1 2 R4 3 4 3 5 3 1 3 3 1 R5 4 4 3 4 3 2 3 2 1 R6 3 4 3 4 3 2 2 2 2 R7 4 5 2 5 3 2 2 3 2 R8 4 5 2 5 4 2 2 3 2 R9 3 3 2 4 4 1 1 3 1 R10 5 3 2 4 5 1 1 3 1 MEAN 3.9 4 2.5 4.3 3.6 1.6 2.2 2.5 1.8 RURALANDSEMI URBANAREA Teenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper R1 4 3 1 4 3 2 1 3 1 R2 3 2 2 3 3 3 2 2 2 R3 3 4 2 3 2 2 3 2 1 R4 4 3 1 4 3 2 1 3 2 R5 3 2 2 3 3 3 2 2 2 R6 5 3 2 3 2 3 3 2 1 R7 4 3 1 4 3 2 1 3 1 R8 3 2 2 3 3 3 2 2 2 R9 5 3 2 3 2 3 3 2 2 R10 4 3 1 4 3 2 1 3 1 MEAN 3.8 2.8 1.6 3.4 2.7 2.5 1.9 2.4 1.5
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GENDER Teenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper R1 4 3 1 3 2 1 3 1 1 R2 4 4 2 3 2 2 1 1 1 R3 4 4 1 4 2 2 2 1 1 R4 4 4 1 4 2 1 1 1 1 R5 4 4 1 4 2 1 2 1 1 R6 4 3 1 5 2 1 1 2 1 R7 4 3 1 4 1 1 1 2 1 R8 4 3 1 3 1 1 1 1 1 R9 4 3 1 3 1 2 1 1 1 R10 4 3 1 3 1 2 1 2 1 MEAN 4 3.4 1.1 3.6 1.6 1.4 1.4 1.3 1 EDUCATION Teenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper R1 1 3 3 3 4 4 1 1 1 R2 1 4 4 4 4 5 1 1 1 R3 1 3 3 3 4 4 1 2 1 R4 1 3 4 3 4 5 1 2 1 R5 1 3 3 3 4 4 1 3 1 R6 1 3 4 3 4 5 1 3 1 R7 1 3 3 3 4 4 1 2 1 R8 1 3 4 3 4 5 1 2 1 R9 1 3 3 3 4 4 1 1 1 R10 1 3 3 4 4 5 1 1 1 MEAN 1 3.1 3.4 3.2 4 4.5 1 1.8 1 LIFESTYLE Teenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper R1 4 3 1 3 2 3 3 2 1 R2 3 4 2 4 3 2 5 2 2 R3 3 4 2 4 3 2 4 3 1 R4 4 3 1 3 2 3 3 2 2 R5 3 4 2 4 3 2 5 2 3 R6 3 4 2 4 3 2 4 3 2 R7 3 4 2 4 3 2 5 2 1 R8 4 3 1 3 2 3 3 2 1 R9 3 4 2 4 3 2 5 2 2 R10 3 4 2 4 3 2 5 2 2 MEAN 3.3 3.7 1.7 3.7 2.7 2.3 4.2 2.2 1.7
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USASERATE Teenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper R1 4 3 1 3 2 3 3 2 1 R2 3 4 2 4 3 2 5 2 2 R3 3 4 2 4 3 2 4 3 1 R4 4 3 1 3 2 3 3 2 2 R5 3 4 2 4 3 2 5 2 3 R6 3 4 2 4 3 2 4 3 2 R7 3 4 2 4 3 2 5 2 1 R8 4 3 1 3 2 3 3 2 1 R9 3 4 2 4 3 2 5 2 2 R10 3 4 2 4 3 2 5 2 2 MEAN 3.3 3.7 1.7 3.7 2.7 2.3 4.2 2.2 1.7 LOYALTYSTATE Teenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper R1 3 4 2 4 3 2 5 2 2 R2 3 4 2 4 3 2 4 3 1 R3 4 3 1 3 2 3 3 2 1 R4 3 4 2 4 3 2 5 2 2 R5 3 4 2 4 3 2 4 3 1 R6 3 4 2 4 3 2 5 2 2 R7 4 3 1 3 2 3 3 2 2 R8 3 4 2 4 3 2 5 2 3 R9 3 4 2 4 3 2 5 2 2 R10 3 4 2 4 3 2 4 3 1 MEAN 3.2 3.8 1.8 3.8 2.8 2.2 4.3 2.3 1.7 TOTAL 35
FINA PERSEN
22.5 64.29
24.5 70.00 BENCHMARK
13.8 39.43
25.7 73.43 55%
20.1 57.43
16.8 48.00
19.2 54.86
14.7 42.00
10.4 29.71
AGE
8
Teenager
middle
old
lower INCOME
middle upper
DIFFERENTIATION In our case the product has been differentiated into two dimensions. PRODUCT DIMENSION: As compared to its competitors Fair & Lovely has Variety- It has more variety than its competitor such as Ayurvedic, Anti mark cream, multivitamins, skin clarity etc. Design-It has very attractive design. It is available in different kind packets, also in small five Rs. Sashes. Reliability- It is very reliable in lower class and lower middle class. •
•
•
Image Dimension: Symbol- In the market it has created a symbol of fairness cream. In recent advertisement they have created the image of “Beauty beyond fairness” Punch line- The punch line of Fair & Lovely “Chand ka Tukra” they have attracted a big market Packaging- its packaging is very attractive. The external cover of this cream contains pictures of big actresses and famous models for attracting young customers. •
•
•
According to our survey two strategies of Fair & Lovely such as Variety and Packaging is very success full because in our survey these strategies have got highest rating such as Variety (3.35) and Packaging ( 3.5) . Fair and lovely should give more attention on these two strategies to increase their market share as well as their productivity.
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DIFFERENTIATION Productdi R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16 R17 R18 R19 R20 Ave Variety 3 3 4 5 3 4 3 3 3 2 4 3 3 3 4 5 3 4 3 2 Design 3 2 1 3 2 2 3 1 4 1 3 2 2 3 1 4 3 2 1 3 Reliability 2 1 2 3 2 3 2 3 2 3 3 1 2 2 1 2 3 2 3 2
Imagedimention Symbol Punch line
5 4 3 3 4 2 1 3 3 2
3 2 4 5 1 2 1 2
3 2
2 3
4 2
3 1
4 3
5 3
4 2
3 1
3 2
2 1
3 2
POSITIONING “Positioning is the act of designing the company’s offerings and image to occupy a distinctive place in the target market’s mind. The essence of brand positioning is achievement of valued distinction/differentiation in a consumer’s mind.”
Positioning variables for fair and lovely are as follows: •
•
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Quality – After survey, It has been found out that its quality is of medium scale. It produces an instant fairness effect. All the oil & fat used in Fair & Lovely products are of vegetable or synthetic origin only. Unilever follows a very stringent code of not using any animal based ingredients. Fair & Lovely as a base before makeup then your makeup will last for hours. Even if you are sweating it does not show the sweat on your face. Price- Being cheap Fair & lovely is affordable to people of any class and the fairness cream is pretty much effective as well. It is, therefore, used in villages and low income families on a grand scale. Variety- A variety of fair and lovely creams is present in the market keeping in consideration different sections of the society. E.g.
Fair & Lovely Ayurvedic 10
Your skin appears naturally fairer when in a state of balance. Presenting New Fair & lovely ayurvedic Balance enriched with Lodhra and Manjistha in addition to kumkumadi Tail z, a powerful concoction of 16 precious ayurvedic ingredients, know to helps restore the natural balance on skin. Fair & Lovely multi vitamin This cream gives you: Natural fairness, balanced skin tone, Rejuvenated skin. Fair & lovely Multi Vitamin with a breakthrough Tri-fair vitamin complex that works on key barriers to clear fairness. •
Darkening
•
Marks
•
Uneven skin tone
Fair & lovely anti marks fairness cream It contains new Vita-Aloe Complex made with a breakthrough combination of essential vitamins, Aloe Vera and fruit principles that work within the inner layers of skin to give you clear, fair skin. Fair & lovely multi vitamin winter fairness cream Multi vitamin Winter Fairness Cream gives you: The fairness of Fair & Lovely Multi vitamin. The goodness of Active Moisturizers and the protection of Sunscreens. Now get radiant fairness along with soft, supple skin in winter. Fragrance- It plays a very important role in positioning of any fairness cream in the mind of consumers. The fragrance of fair and lovely is very good and smoothing. After the survey, we have found that the following two factors are the most important factors for the positioning Fair and Lovely: QUALITY PRICE • •
positioning quality price variety
R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16 R17 R18 R19 R20 4 5 3 4 3 4 5 3 5 4 4 4 4 4 5 5 5 5 5 5 3 4 4 3 4 4 4 4 5 5 5 5 3 4 4 3 3 4 4 4 2 3 2 3 2 3 2 3 2 3 4 4 3 4 5 5 4 5 4 3
HIGH QUALITY
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LOW PRICE
HIGH PRICE
LOW QUALITY
SUGGESTIONS Need for Change: Fair & Lovely has come a long way since 1976 when it was first introduced in India, modernizing along with its consumers. Women in the society have transformed and the brand has evolved to capture this need. Currently though, underplaying the fairness attribute may hurt the brand so the focus has to be extended and not shifted. This extension includes fairness but adds that extra something to the product as well as the brand. The addition of attributes to products would increase the perceived value for the customer which is an important objective with a mature product such as Fair & Lovely. Though Fair & Lovely is the market leader in this segment, an erosion of its market share is always on the cards, especially since there are no significant points of difference from its competitors. The basic product needs to be re-positioned with additional attributes to increase its points of difference from the other competing brands. This revamp needs go beyond just the look of the package (which has been constantly changing) and instead, drill into the core of the brand.
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