Fairness Products

Market in India: Who

is the Fairest
Harjas Kaur
Kanika Jain
Mahak Aggarwal
Naveen Kumar Suman
Pranay
Priiyanshu
Cosmetic Industry in India 2002
to 2007.
O Products in wide range of brand portfolio:
O Body and health care, sun care in addition to toners, cleansers, anti-
wrinkle creams, dark circle creams, facial creams, fairness creams, etc..
O Skin care has the fastest growing segment with a growth rate of 15-
20% per annum.
O Fairness cream, Moisturizers, day and night creams contribute about 60%
of skincare segment.
O Per capita expenditure on cosmetic products is $0.68 compared to
$36.65 in other Asian countries.
O According to India Brand Equity Foundation (IBEF), rural area
contribute about 50% of FMCG market.
O Sales in rural area is expected to grow at 40% outpacing the sales
growth of 25% in urban areas.
O About 50% of Indian Population are below 25 years of age, which
are key drivers of consumption due to their high disposable
income, high purchasing power and their willingness to spend.


Reason
behind
Growth
of
Cosmetic
Industry
Aging
Population
Growing
Consumer
Affluence
Media
Attention
Economic
Developmen
t
Technologic
al Advances
Increasing
consumer
awareness
of health and
wellness
Indian Cosmetic Sector: 2007-
08

28%
19%
15%
9%
7%
7%
6%
9%
Fairness Creams
Faco Cream
Moisturising
Lotion/Creams
Antiseptic
Creams/Liquids
Range of skin care
products
Cold Creams
Acne Preparations
Others
Top Players in Market
O Fair and Lovely HUL (Market Leader)
O Fair and Handsome Emami
O Ponds - HUL
O Nivea
O L'Oreal SA- Garnier
O Beiersdorf AG
O Unilever
O Procter & Gamble
O Estee Lauder
O Avon
O Shiseido
O Revlon Inc.
O Oriflame




STRATEGIES USED



1.Pricing factors

2. Non Pricing Factors

PRODUCT VS SERVICE DIFFERENTIATION OF
FAIRNESS CREAM PRODUCTS


Strategies for New Entrants
O The big players in the fairness cream category have been unable to tap
the opportunities available in the rural market. Though each player has
tried to expand into the rural market but the offering is generally a
sachet or a small packet which fetches them a really small profit margin
plus they are burdened by the cost of distribution to these villages.
A new entrant can tap on to this opportunity with its prime focus on
positioning and distribution channels for the rural market.
O Why concentrate on rural market?
According to India Brand Equity Foundation(IBEF) rural areas
contributed to 50% in the FMCG sector in 2007.
Analyst projects a growth of sales by 40% in the rural areas compared
to urban growth of 25%.
As per Mckinsey Global Institute spending per household in rural in
India would reach the level of urban India in 2008 by the year 2017.
With the increase of TV sets in rural homes(22 million), people are
exposed to same advertisements seen by urban people, thus buying
habits have changed and rural people aspire what city people want.
Strategies
O Prepare a sales and marketing team that comes in direct
contact with the local shopkeepers, thus cutting in on any
intermediaries (distributors, wholesalers).
O In the rural areas the scenario is changing as the person
travelling to cities is becoming a major source of influence
for decision making. Thus research and come in contact
with such people, make them a part of your team. They
could help you in positioning your brands using their local
skills.
O Doordarshan channel has the most widespread reach in
the rural region. Associate with doordarshan and develop
an advertising campaign that reflects the rural buyers.
O Follow this up by setting up melas, and interacting
directly with the customers, holding a game where the
people can win the companys merchandise.
Product and Brand Relationships
Company Brand Relationship
Hindustan
Unilever Limited.
(Fair & Lovely)
Strong Market Research & distribution network
Countrys largest ad spender in FMCG sector
Ad highlighted the issue of women empowerment
and depicted modern women as independent,
strong and confident
Targets women from low income group in rural
areas
CavinKare
(Fairever)
Exclusivity of distributor and customizing the
product
Brand Ambassador : Asin
Ads based on concept of achievement after HUL
came with the concept of women empowerment
Emami
(Fair and
Handsome)
Company has reduced expenses on
advertisement and promotion
Brand success attributed to innovation, quality
and strong endorsement by Shah Rukh Khan

Shahnaz
Husain
(Fair One)
Beauty products catered to premium users and
were available in beauty salons
Began tapping mass market through fairness
cream
Brand Value of Owner attached to it
Brand was never advertised extensively

LOreal Ads emphasis not only on fair skin but also on
healthy skin
Provide personalized services to their
customers
Fifth largest spender on ads in india
Urban vs. Rural
Urban market
O Consumers prefer buying branded products, and
hence urban consumers are oriented to foreign
brands. To attract urban customers, the
companies must improve their brand image.
O Focus on ayurvedic and herbal products, as
consumers prefer natural and herbal products.
O Variety in cosmetic products e.g.; oil control,
ayurvedic, anti-marks, etc.
O Brand endorsement by celebrities like Bollywood
actors, cricketers, etc.
Urban vs. Rural Cont
Rural market
O Concentrate on product that appeals to masses.
O Wouldnt spend high amounts on TV and Newspaper,
Magazine advertisements as Electricity reaches only
57.6% of rural population and literacy rate in India for
rural population is 58.7%.
O Company needs to concentrate on Packaging. It
needs to robust to hold onto adverse weather
conditions. Product availability in small sachets and
small packets as rural people have low disposable
income.
O Rural customers have a distinct preference for bright
colors, this information can be used in packaging of
product.
SUGGESTION FOR CRITICISM AGAINST
DARK SKIN BEING SEEN AS A
DRAWBACK
The industry can focus more on clearing the
skin by removing dead skin cell leaving skin
younger and brighter looking.
The companies can organise campaigns and
promote creams appreciating the dark beauty.
Eg: Nandita Das organised a Dark is
Beautiful campaign in India against the fair
skin prejudice.
The companies can introduce a wide range of
products and creams catering to different skin
types and tones in order to meet everyones
requirement and hence tap a bigger market
and create unique brand associations.