VEET FACING CHALLENGES IN PAKISTAN

INTRODUCTION

Veet is the leading name in depilatory products with over 100 years
experience of developing safe, effective hair removal products that are
successfully used by over 30 million women across the world, every
year.

As the number one brand Veet’s reputation is built on the care Reckitt
Benckiser takes in developing products that work well, are easy to use
and are, above all, safe. Innovation and quality are the hallmarks of
Reckitt Benckiser’s business. The company strives to develop new and
exciting products to meet the needs and expectations of consumers.

SUMMARY
Humayun Farooq is the new brand manager for Veet, a hair-removing
cream targeting females in Pakistan. The product, given its superior
quality, could take the company to new heights but a conservative
society where women do not feel comfortable buying hair-removing
creams, Pakistan is a difficult market to operate in.Reckitt Benckiser
started its operations in Pakistan in 1951 following an agency or a
trading model. Based on this model, goods produced abroad were
brought, sold and marketed in Pakistan. Pakistan was classified as a
relatively infantile market for RB, posing some unique opportunities
and challenges. Products marketed by RB Pakistan included Dettol,
Strepsils, Veet, Harpic, Mortein, Moov, Krack, Dispirin, Cherry Blossom
and Robin Blue.

Located between Middle East, India, China and Central Asia, Pakistan
was a country of multiple cultures and ethnicities. Of the Metro cities,
Karachi, Lahore and Islamabad (KLI) are the largest cities and
consequently easier to target, both in terms of advertising and
distribution. Developing at a considerable pace, one could see the
country opening up to new ideas and embracing new technological
products. A major force behind such exponential growth is the young
population of Pakistan. The average household size in Pakistan stands
at six. There were approximately 81 million women in Pakistan as of
2008 out of the total population of 166 million, growing at an aggregate
of 2 per cent per annum.
The median age of the Pakistani woman was 20.8 years, meaning a
young female generation overall. According to the Pakistan
Employment Trends Report, compiled by the Pakistan Bureau of
Statistics, female labor force participation had risen from 16.3 per cent
in 2000 to 23.1 per cent in 2009 – which indicates that approximately 6
million women had entered the workforce, thus increasing the
spending capacity of women in general. The increasing economic
contribution of women to the average Pakistani household had
consequently led to a rising interest of the marketers in this consumer
segment. Previously, feminine hygiene products would hardly ever be
advertised, but later there were massive billboards advertising them in
cities across the country. Women in Pakistan were the largest segment
of users of branded personal care products, meanwhile the culturally
prevalent methods of personal care had not long been forgotten, and
hence women chose products that proclaimed use of herbal and
natural ingredients.
Most women base their decision to buy a personal care product on the
model in the advertisement, word of mouth and early experience.
Women in Pakistan generally preferred to remove hair using creams
and waxing. Hair removal can be primarily divided into two methods:
temporary and permanent.
First, it was perceived to be a luxury that only a few could afford and
second, there were very few licensed practitioners available. Hence,
more popular methods of hair removal were temporary. Temporary
hair removal was classified into two broad categories: depilation and
epilation. The former is the removal of hair from the surface of the skin,
whereas the latter is the removal of the entire hair including the part
under the skin.Veet products available in Pakistan were a part of the
depilatory solutions available in the market. The depilatories’ market in
Pakistan increased at a compound annual growth rate of 10.5 per cent
between 2004 and 2009.At the time of launch in 1999 in Pakistan, the
local culture lent some advantages to the launch of such a product as
well as some peculiar challenges. The advantage came from the local
Muslim culture placing great emphasis on personal hygiene. And the
challenge came in the form of depilatory being an extremely tabooed
category, hence making marketing a difficult task. Depilatory was a low-
involvement category where target customers did not differentiate
between various brands. This meant that most brands in the market
were functionally positioned.
The major competitor of Veet in 2009 was Anne French, a hair
removing lotion made by a local manufacturer. A volume leader in the
depilation category, Anne French had been available in Pakistan since
the 1980s; however, it was never widely marketed. There were several
barriers that prevented target customers from appreciating the
superior quality that Veet provided.
Matters of personal hygiene were considered private and hence not
discussed openly in Pakistan. Consumer buying habits were also
peculiar. Customers were shy and did not ask for a particular brand;
they instead only pointed to a brand visible from over the counter in a
retail store. Fashion shows were help on large scale and even aired on
television which helped the brand establish a image and reduce the
taboo in the minds of people. The target customers were the modern,
urban, confident, independent women who actively look after
themselves and care for their beauty.
Farooq needed to attract the innovators in the market who could have
a positive influence on those around them. He also wanted to increase
the usage level; change the usage of a depilatory cream from mere
hygiene maintenance to beauty enhancement. Farooq decided to study
the Egyptian model – a market where customers were Muslims.
Egyptian Veet advertisements were beauty oriented and they made
Farooq think of ways to communicate the same message of beauty in
Pakistan. Farooq decided to hold another fashion show, but this time
with a lot more grandeur. While editing the 2008 fashion show, he
realized that there was room for improvement. Lack of experience in
organizing a fashion show was his biggest limitation. His stakes were
high and so Farooq wanted to do everything right. He drew his
inspiration from the International Victoria’s Secret fashion show and
wanted to hire the best director to have Veet’s show on a similar
format with music and ramp. Top management had hired Farooq
because of his past track record of successful brand building, they
feared that his idea was putting not just the brand but the entire
company at risk. There was a risk of antagonizing the local religious
groups; at no cost could RB afford to have a negative public image. One
of Farooq’s Assistant Brand Manager (ABM) proposed another strategy.
She suggested that a functional appeal would be more appropriate
keeping in mind the local cultural values. Veet could highlight three
important benefits and be pitched as the best solution for the target
market. Specifically, the idea was to hold a 1- to 2-h-long awareness
session in the auditoriums of schools and colleges in SEC A and B class
localities. RB would hire brand ambassadors to discuss the importance
of hair removal in Islam and link it to Veet by highlighting it as an ideal
solution.
STP
SEGMENTATION
1. Genders do affect the choice of skin care products. In the past, skin
care products only belong to the girls’ world. Nevertheless, in recent
years, men are increasingly becoming more and more concerned about
skin care.
2. Income level directly affects the purchasing power of customers,
mature women with higher purchasing power focus more on quality
and effectiveness.
3. Psychographics divides customers according to their personality and
lifestyle. They will likely choose the skin care products with a
combination of functions which save their time and effort in both
selection and usage.
TARGETING
1. According to Veet Pakistan Urban cities were targeted.
2. Women aged from 17-49.
3. Working women.
* Target customers were the modern, urban, confident, and
independent women who care for their beauty.
POSITIONING
According to the segmentation and targeting RB positioned Veet
product in metro cities of Pakistan i.e, Karachi, Lahore, Islamabad.

MARKETING MIX
Marketing Strategy of Reckitt Benckiser analyses the brand with the
marketing mix framework which covers the 4Ps (Product, Price, Place,
Promotion). There are several marketing strategies like product
innovation, pricing approach, promotion planning etc. These business
strategies, based on Reckitt Benckiser marketing mix, help the brand
succeed in the market.
Reckitt Benckiser marketing strategy helps the brand/company to
position itself competitively in the market and achieve its business goals
& objectives.

PRODUCT MIX
The product strategy and mix in Reckitt Benckiser marketing strategy
can be explained as follows:Reckitt Benckiser offers products in health,
hygiene and home care section.
Health: Enfamil, Durex, Mucinex, Nutrofen, Scholl, Strepsils, Gaviscon,
Nutramigen
Hygine: Dettol, Lysol, Harpic, Cillit Bang, Mortein, Veet, Clearasil, Finish
Home: Airwick, Vanish, Woolite, Calgon
Each of these brands has many variants and pack sizes. The
organization combines the latest knowledge in science with consumer
requirements and builds relevant products. In future, company plans to
enter food and pharmaceutical sectors. Reckitt Benckiser has
collaborated with different partners to address some of the problems
and have come up with innovative solutions. Reckitt Benckiser have
global R&D facility for product innovation. The products comply with
the relevant regulatory bodies and their safety is established by
through clinical and scientific evidence. They also have developed
innovative packaging, devices and manufacturing processes as a part of
its marketing mix product strategy. Also, the strategy is to tap the
products which are relatively new and hence have new entrant
advantage with skimming pricing advantage. Also, they invest
disproportionately among different power brands.
PRICE MIX
Reckitt Benckiser has adopted the value based pricing as a part of its
marketing mix and are kept at optimal level and at the consumer's
perception level. Though the prices are affordable, they are a bit on the
higher side which the consumer associates with better quality due to
trust built by the brand. The listing of Reckitt Benckiser is on London
stock exchange and it is constituent of FTSE 100 index. Company has
adopted the strategy of having focused product portfolio.
It concentrates on 19 brands which generate more than 70% of
revenue. The company focuses on rapidly growing consumer sectors
that are yet to be explored, thus having superior margin potential and
consistent return on investment to their investors. Another strategy for
revenue generation is shifting focus on developing economies with
emerging consumer potential.
RB believes in conversion of profit to cash for which they have net
working capital objective incorporated in the annual bonus targets of all
the operational management teams.
PLACE MIX
The company founder Johann Benckiser established the company in
Pforzheim, Germany in 1823. The first overseas business was opened in
Australia in 1886. Reckitt Benckiser is a global organization operational
in nearly 60 countries and sales in 200 countries spread over 6
continents.
 Over 40000 employees are working for RB in these locations. In India,
corporate operations of RB are located in Gurgaon, Haryana. The
company has always focused on its core brands with emphasis on
supply chain and distribution. For continuous innovation Reckitt
Benckiser has R&D facilities located in 35 countries. Major facilities and
based in India, Germany, Italy, China, Thailand and USA. This global
network of experts works together for formulation of new products.
They have planned to start newest Center for Scientific Excellence in
Hull, United Kingdom in 2018. It is largest single investment for
company with £105 millions.
The centre has sustainable building harboring health department
compliant to Good Manufacturing Practices for formulation and testing
of products.
PROMOTION MIX
The promotional and advertising strategy in the Reckitt Benckiser
marketing strategy is as follows:
The organization has adopted the strategy of 'innovative Marketing’. As
the products are mainly in FMCG sector, it has used all the promotional
media available (print, broadcast, billboards and hoardings, digital). It
has also implemented consistent and innovative packaging which
consumers recognize and associate. Reckitt Benckiser has put big
emphasis on advertising. In UK it is among top ten advertisers with first
in television ads. It has also invested in digital world like an i-phone
application for Nurofen in UK, 2010. The company has allocated budget
for Marketing activities along with continuous products innovation
considering consumer needs. This proved to be profitable for the
company which can be seen in revenue boost in 2007 due to 'rapid
succession of well practiced new product variants,’ which correctly
seized consumer imagination. It has organized a scientific challenge for
the University students in UK to solve future consumer health
problems. The winner of the contest will get £5000 and paid summer
internship at their latest facility. This completes the marketing mix of
Reckitt Benckiser

SWOT ANALYSIS
For Veet, SWOT analysis can help the brand focus on building upon its
strengths and opportunities while addressing its weaknesses as well as
threats to improve its market position.
Veet Strengths
The strengths of Veet looks at the key aspects of its business which
gives it competitive advantage in the market. Some important factors in
a brand's strengths include its financial position, experienced
workforce, product uniqueness & intangible assets like brand value.
Below are the Strengths in the SWOT Analysis of Veet :
1. Established brand name in waxing and hair removal
2. Dynamic brand which relates to the changing needs of the global
consumer
3. Strong distribution network and good brand visibility
4. Has a wide product range
5. Good branding and advertising as it is associated with celebrities as
well.
Veet Weaknesses
The weaknesses of a brand are certain aspects of its business which are
it can improve to increase its position further. Certain weaknesses can
be defined as attributes which the company is lacking or in which the
competitors are better. Here are the weaknesses in the Veet SWOT
Analysis:
1. Presence of similar beauty products means limited market share and
high brand switching
2. Skin Sensitivity can be an issue for some customers
Veet Opportunities
The opportunities for any brand can include areas of improvement to
increase its business. A brand's opportunities can lie in geographic
expansion, product improvements, better communication etc.
Following are the opportunities in Veet SWOT Analysis:
1. Untapped rural market and global expansion
2.Tie ups with beauty parlors, fashion and modeling houses
3. With hospitals and clinics to treat scars after waxing off around
affected parts
Veet Threats
The threats for any business can be factors which can negatively impact
its business. Some factors like increased competitor activity, changing
government policies, alternate products or services etc. can be threats.
The threats in the SWOT Analysis of Veet are as mentioned:
1. Strong and established competitors
2. Low brand loyalty of customers
3. Threat from substitutes
CHALLENGES
● In 2009, veet's main competitor was Anne French, a hair removal
lotion made by a local manufacturer having a market share of 26%
which more than 23% of veet market share .Anne French is the
volume leader in the hair removal category and has been available in
Pakistan since the 1980s. However, it was never widely adopted.
● There was no marketing of personal hygiene brands for women like
sanitary napkins and depilatory creams in Pakistan. Most brands
therefore relied on keeping numbers at the point of purchase.In
addition, commercials had to undergo rigorous sensor board testing
before airing.
● There are a number of obstacles that prevent the target customers
from appreciating the superior quality of the veet on offer. Issues of
personal hygiene are considered private and therefore are not
openly discussed in Pakistan. The buying habits of customers are
also very peculiar. Customers will shy away and point out the
product from the display the store's product instead of asking for it
and it is covered with a brown paper.
● Pakistan was relatively classified as a infantile market for Rb, posing
some unique opportunities, cultural challenges, and peculiar buying
behavior.
● a fashion show themed as 'Garden of Eden' was organised at the
Karachi Parsi Institute. However, lack of experience in organising a
fashion show was his biggest limitation. The first fashion show in
2007 was over dramatic and hence no connection between brand
and fashion
CONCLUSION
Farooq’s Assistant Brand Manager proposed a strategy