You are on page 1of 18

MARKETING MANAGEMENT II

ASSIGNMENT

Group – 6
Aditya Kumar Yadav 17PGP204

Vishal Vinit 17PGP201

Vipul Kumar 17PGP200

Yuam Bansal 17PGP202

Ajay Jadhav 17PGP205


Mens Fairness Industry

Until 2000, it was nearly inconceivable that there could be a fairness cream for guys
among male grooming products. But it turned out, guys contributed substantially to
consumption of HUL's equity product fair and Lovely or even other fairness
merchandise.

It wasn’t unexpected as we live in a society that's passionate about fair pores and
skin, just as the West is preoccupied with getting the perfect tan. This phenomenon
was not only restricted to girls and, had motivated Indian man as well.

However in this case, HUL did not hunt the treasure first, and Kolkata-based totally
Emami Industries had the a long way-sightedness to become aware of the potential.
It released a fairness cream only for guys - Fair and Handsome - in 2004. The brand
was encouraged via Shah Rukh Khan, which in addition fuelled boom. HUL
observed match, and years later it released HUL's fair and lovely Menz Active - a
line extension of its popular brand Fair & lovely.

The size of Indian skincare marketplace including creams, moisturisers and purifier
is envisioned at Rs 4,750 crore. Of the overall skin care marketplace, the facial skin
care marketplace in India is estimated at Rs 2,000 crore, of which half comes from the
fairness marketplace.

1
In 2007, Elder Health Care along with Shahnaz Husain too entered the section with
Fairone man with director and television actor Anuj Saxena endorsing the logo.
Within the identical 12 months, Beiersdorf AG, the German company which owns
Nivea, also launched a whitening moisturiser beneath the 'Nivea for guys' call in
India.

Kaya skin Clinic, too, added the Kaya Whitening Moisturiser with SPF 15, even as in
advance this year, Garnier stepped into the fairness market with the launch of
Garnier men PowerLight lightening skin cream and furnished a 'Shade card' with
the same. It took in Bollywood hunk John Abraham as the Brand ambassador for the
product.

After that in just 5 years, the class has grown to be Rs 100 crore from nowhere, and
continues to be growing at the price of 20 in line with cent year-on-year.

While some brands attempted to construct on the idea of letting move of women's
products and choosing male-centric merchandise for social motives, others talked
about how men's facial pores and skin is an lot exceptional from women and for that
reason, they want products to healthy their pores and skin kind.

In the past few years, the men's grooming market has grown exponentially with
brands launching not just shaving gels and foams, but equity creams, moisturisers,
talcs, face washes and other grooming products targeted especially at guys, with
fairness creams leading the same.

What triggered this? over time, Indian male became increasingly more conscious of
his appears, not just within the Cooperate world, but also in society. A lot relied on
how he presented himself. Men didn’t want to take the risk of being seen as
irresponsible and negligent due to their looks. Celebrities, too, have become extra
vocal about their grooming habits, sharing self-grooming details in tv and print
interviews.

Following international trends entered the metrosexual male - the person who has
robust issue for his appearance and styling. Leveraging the truth that there had been
no merchandise to fulfil their developing desires, marketers pooled in energy and
resources to target these men.

The grooming fad did not restrain to guys in corporate world - it spread to
collegians and other youngsters too, growing the marketplace.

India’s cosmetics market is reportedly growing at 15-20% yearly that is as twice as


fast as that of the U. S. and European markets. The growth rate within the cosmetics
market shows increasing demand for beauty care merchandise in India. Demand for
pores and skin whitening products by men as well as women, is driving the trend,
however different beauty merchandise are not very far back. Recent cosmetics
business market evaluation shows that many multinational corporations at the
moment are outsourcing cosmetics to India. The celebrities like Sonam Kapoor, Shah
Rukh Khan, John Abraham and Katrina Kaif are brand ambassadors for many
fairness creams.

2
while the overall cosmetics industry is growing at 15% every year, Fairness cream
constitute a huge part of it, generating income worth nearly Rs.2,000 crore . Of this,
men’s fairness creams account for 10%. The importance of male grooming is clear,
with the marketplace well worth Rs.695 crore and developing at 11 percentage.

Fair And Handsome


Fair and Handsome is a pioneer brand from Emami. In 2005, Emami forayed into the
men’s fairness category. Today Fair and handsome, is the largest brand within the
men’s fairness category and second largest in overall fairness category in India. Fair
and handsome was launched based on researches that found that the texture of
man’s pores and skin is different from that of a lady and therefore it requires a
unique product designed exclusively for Men. The cream became a runaway success
doing business over Rs 30 crores in the very first year of its launch. Emami signed in
the Bollywood Baadshah Shah Rukh Khan as the brand ambassador in 2007 who has
been associated with the brand for the past 6 years. Even after competitors released
comparable products in the market, Fair and Handsome continued to rule the
market within the men’s fairness Cream category.

Fair and Handsome has been especially formulated for tough male skin by means of
Emami skin care specialists in association with Actiogen Corp, U.S.A headed by Dr.
Chanda Zaveri, a United States based internationally renowned scientist and student
of two times Nobel Prize winner Linus Pauling. The brand ‘Fair and Handsome’ is
one of the power brand of Emami and very popular brand in the men’s skin care
class in India and also enjoys a leadership position across the world within the men’s
fairness category.

3
Consumer Behaviour
It is believed that there exists a marked preference for skin lightning and glow in
India. Men, also have been using fairness creams meant for women and there felt a
need in market to come up with fairness cream for men, who generally give the
preferences to attributes such as freshness, control of itching after shave, sun
protection, good smell etc.

 Early Youth (13-21 years)

 Focus: Education and career

 Spending Power: 1000-2000 per month

 Brand preferences developed

 Value for money

 Unorganized market biggest shopping destination

 Middle Youth (22-26 years)

 Focus: Career and relationships

 Spending Power: 7000-40000 per month Influenced by peer groups and


work mates

 As disposable income increased, brand value and quality is preferable


over price.

 Late Youth (30 years)

 Focus: Career advancement and children

 Spending Power: Reduces compared to middle youth

 Prefer a mix of luxury and functionality

4
Brand positioning

In 2005, Emami forayed into the men’s fairness category, which was a first for any
FMCG company in India at that time. Creating Fair and Handsome, a marketing
history in the category of men’s fairness creams. Men are generally more exposed to
sun and dust. Men’s skin is 20% thicker than women’s skin, with larger pores and
more melanin production making them more prone to darker skin.

With the launch of Fair and Handsome, fairness no longer remained exclusive for
the eves of the country and provided the men an opportunity to break free from
being the closet users of women’s fairness creams, and still look fair. The launch of
Fair and Handsome was based on researches that found that the texture of a man’s
skin is different from that of a woman and needs a product designed exclusively for
them. Today Emami claims on being the largest brand in Men’s Fairness category
and second largest in overall fairness category in India. Fair and Handsome has
positioned itself to become world’s no. 1 men fairness cream.

Promotion Mix

Public Relations:

What's USP of the brand? It's the celebrity that endorses the product.

Specialising in personal care and health care products Emami signed in 2007,
Bollywood superstar Shah Rukh Khan to endorse Fair and Handsome, its cream
brand for men. In beginning Khan was not very keen on being a part of a fairness
cream commercial, as he didn't want to come across as being biased or judgemental
on the concept of fairness but having shared a good working relationship with
Emami, the concept materialised. According to Emami executives, Khan was an
obvious choice as the actor has been the brand ambassador for various other brands
under the Emami Group, such as Himani Navratna oil, Himani Navratna Cool Talc
and Himani Sona Chandi Chyawanprash.

5
The Face Wash category being in a nascent stage and the habit of using a face wash
building up, presented a lot of potential in men’s face wash category which is
approx Rs 250 crores in size, and is witnessing an exciting 50% plus growth rate year
on year. To capitalize on the opportunity in 2015 roped in Hrithik Roshan as a step
towards that. Hrithik Roshan embodies what Fair and Handsome stands for:
toughness and for men who are tough. He is known to be an all-rounder for acting
in multifarious roles on screen. This has a direct resonance with the Facewash which
delivers all-around performance by giving an instant fairer look, a refreshed feel,
removing oil, sweat and dirt – all in a single splash.

6
Advertising:

TV

The company has maintained its presence through TV commercials since its
inception to spread the message of fairness cream no longer being the domain of the
'fair sex'.

Print

Fair and handsome is giving their newspaper advertisement but not frequently.

Billboard

Some billboards are shown in the different areas of city and some on highways to
remind the consumer about the product.

Magazines

Fair and handsome is managing their ad effectively to some of the most popular
magazines.

Position

In magazines the usual place of fair and handsome is on the front page and in
newspapers in the middle.

Online:

 Fair and Handsome maintains its own facebook page


(https://www.facebook.com/BeFairAndHandsome/) where they promote
their new products and coming up with new contest to promote their reach.

431,751 people like this

427,976 people follow this

 Fair and Handsome has been maintaining its twitter page since 2009
https://twitter.com/fairndhandsome?lang=en

Tweets 997
Following 42
Followers 1,935
Likes 61

7
 Placing their ads on Youtube which receives on an average 10000 views.

Sales promotion:

#TheLaserEdgeContest

CONTEST DESCRIPTION

“An exciting contest is here! Are you ready to roll with us? Check out this space for
questions everyday. Participate and send us your entries. The best answer wins an
exciting hamper on each of our 12 contest posts. 1 out of those 12 shortlisted winners
stands a chance to win ‘#TheLaserEdgeContest’. Gear up now. Winner for the day
will be announced tomorrow at 12 p.m. Stay tuned. T&C Apply-
http://bit.ly/TnC_FAH.
How do you get even with someone who speaks ill of you? What’s your fun
solution? While you share your tip, Fair and Handsome Laser 12 works hard to offer
you even tone. #ContestAlert #ContestIsHere#WinItContest #StayTuned”

8
Product Line/Mix

The Fair & Handsome has an array of products under its product line. The company
has christened it as ‘Fairness Solutions’ broadly categorized under four heads.

Fair and Fairness cream Fair and Instant fairness


Handsome for men Handsome face wash
Laser 12 winter cream

Winter Solutions Enhanced Fairness Cleansing Advanced whitening +


Multi Benefit Cream

Product Instant
Mix fairness
Depth Winter Cream Fairness Cream face wash Laser 12

Product Line Length

Recent trends in IMC strategies

1. Identify campaign goals and potential limitations

2. Define the target audience

3. Gain some insight

4. Understand your competition and identify your


competitive edge

5. Get creative

6. Check your “big idea.”

7. Communicate

9
PESTEL ANALYSIS

1. Political Factors:

• Political opposition in Rajya Sabha against promotion of fairness products in


an attempt to condemn racism

2. Economic Factors:
 Mens Fairness cream market in India is around Rs. 730 crores
 Fair and Handsome is the market leader in the segment with a market share
of around 40% (around Rs. 292 crores)
 A newly popularised cosmetic segment, marketers estimate the segment to
grow by aound 25%

3. Social Factors:
 In 2007, the company attracted controversy with an advertisement for its skin
whitening cream for men, Fair and Handsome
 Emami and the star of the campaign, Shahrukh Khan, were accused of
perpetuating racism

4. Technological Factors:
Emami Fair & Handsome has been specially designed for men by skin care
experts and contain:
 Combinations of Natural Vitamins, Anti-Irritants, Sunscreen filters and SPF
15+ that protect the skin from harmful UVA and UVB rays of the sun.
 Vitamin B3, that works from within to lighten the skin and the dark spots.

10
 Special “micro absorbers” that absorb away the excessive oil and sweat,
leaving the skin feeling fresh, sweat and oil free

5. Environmental Factors:
 Certain side effects like Itching, allergy, skin cancer, dry skin, pimples etc
 Contain mainly two chemicals, hydroquinone or mercury
 Lethal health concerns like permanent pigmentation, skin cancer, liver
damage and others

6. Legal Factors:
 In July 2013, WOW a Chennai-based NGO launched a campaign against
Emami asking them to remove the Fair and Handsome advertisement starring
Khan, saying that it is discriminating against people on the basis of skin color.
 The campaign has been supported by celebrities like Nandita Das, Tanishta
Chatterjee. More than 22,000 people have signed an online petition launched
by them.

11
Segmentation
Market Segmentation is the method of dividing a market into distinct groups of
buyers with different needs, characteristics or behaviour. Market Segmentation is
important for devising company’s target markets. Depending upon Product type
and segment potential helps companies decide if undifferentiated or
differentiated approach is needed.

a. Undifferentiated approach: firm ignores market segmentation and developing


products that meet needs of large masses
b. Differentiated approach: firm targets specific market segments, and develops
separate strategies for each segment

A number of factors are likely to affect a company's segmentation strategy.

 Company resources: Market segmentation strategies may depend upon


company’s resources and marketing budgets.
 Product variability: For uniform products (such as sugar or steel), an
undifferentiated marketing may be more suitable. For products that are
differentiated (such as cars), a differentiated marketing segmentation strategy is
more effective.
 Product life cycle: Market segmentation may differ for products at different
product life cycle stage. Newly launched products’ strategies may differ from
strategies for a mature market product.
 Market characteristics: When consumer’s preferences are similar and their
willingness to pay premium for product differentiation, undifferentiated
approach can be used.
 Competitive activity: Market segmentation is essential when competitive
activity calls for differentiation.

Identifying market to be segmented:

For identifying markets to be segmented, marketers should first assess the size of
the potential customers based upon income levels, demography and lifestyle
patterns of a specific market, then estimating the percentage likely to use the product
or service and thus, estimating the revenue potential of the market. If the revenue
potential of the market is good, then market segmentation is beneficial.

Bases for segmenting consumer markets:


The factors for segmenting consumer markets are:

12
 Identifiability: extent to which managers can identify or recognize distinct groups
within the marketplace
 Substantiality: extent to which a segment or group of customers represents a
sufficient size to be profitable
 Accessibility: extent to which marketers can reach the targeted segments with
promotional or distribution efforts
 Responsiveness: extent to which consumers in a defined segment will respond to
marketing offers targeted at them

Criterion for evaluating segment attractiveness


Considerations can be used to assist in evaluating market segments for overall
attractiveness. These aspects help to estimate and evaluate segment attractiveness.
a. Segment size and growth

 Market size and market potential


 Market segment’s substantiality to be profitable
 Market segment growing or contracting?
b. Segment structural attractiveness

 Extent to which competitors are targeting the market segment


 Substitute products availability
 Responsiveness of members of the market segment to the marketing program
c. Company objectives and resources

 Alignment of market segment with company's operating philosophy


 Company’s resources necessary to enter the market segment
 Skills or know-how to enter the market segment successfully

Which segment is being targeted?

The market segment which is being targeted by the product Fair and Handsome
is a combination of demographic, psychographic, geographic consumer segment.

Geographic Segment:

• Countries: South East Asia (India, Bangladesh, Sri Lanka, Pakistan)


• Region: Urban and Semi-urban regions

Demographic Segment:

• Age – users of the age of 18 to 45 years.

• Gender – Male

13
• Young men aged – 25 to 40

• Teen male aged – 18 to 25

• Income – 100000-300000 p.a. income group is prime consumer group


Psychographic Segment:

• Growing influence of fashion and film industry on Urban and semi-urban region
men
• Belief that fair skin helps in enhancing self confidence
Behavioral Segment:

• Middle class men with a high frequency of usage of Fair and Handsome mens
fairness cream
• Men having income range of Rs. 100000 to 500000, with good disposable expense
patterns, spending significantly on men’s cosmetic products

Competitors
Fair and Handsome faces competition from a number of brands in the market
including creams which are not focused on fairness. In the fairness cream segment it
faces competition from the following:

1. Fair and Lovely for Men

2. Nivea Men Whitening

3. Garnier Men Power Light

14
All three above have fairly good market share but fair and handsome is still the
leader with the highest share of 40%. Below is the Market Share in the fairness cream
market.

Market Share

36.9% 40%

9.70% 9.9%

3.5%
Fair and Handsome Fair and Lovely Menz Nivea Men Whitening
Garnier Men Power Light Others

However, these all are just competitors which cater to the male audience. A study
was done by the company under which it was found that a large majority of male
population female fairness products. Now, Fair and Handsome maybe the leader in
the Men’s Fairness cream market but its competitors Garnier and Nivea has a wider
range of products. Nivea provides other products such as dark spot reduction, Oil
control, All in one and 10x whitening effect etc. whereas Garnier also provides Acno
Fight, Power White and its Dual texture products.

Competitor Behaviour

Product Weight Price Effect after USP Rating


use
Fair and 60 gm 140 7 days 5 Power 1
Handsome Fairness
system:
Double
strength
peptide
complex,
Sun guard,
Stress
busters,
Anti
bacplus,
herbo cool
Fair and 50 gm 120 14 days Power of 2
Lovely for Beauty /

15
Men Maximum
fairness
Garnier 45 gm 180 14 days Natural and 3
Men Power strong skin
Light care with
SPF 15
Nivea Men 50 gm 190 7 days Nivea 4
Whitening makes dry
skin
smooth and
irresistible
to touch

All the major competitor’s product is priced higher than Fair and Lovely as per the
Weight- Price ratio.

Distribution Channels

Most companies in the sector follows a basic and robust 4 stage distribution model,
i.e., there are 4 intermediaries in the system. The first is the carrying and forwarding
agents followed by redistribution stockists then wholesalers who supply to retailers
and then the product reaches the consumer.

Carrying and
Fair and Redistribution
Forwarding
Handsome Stockists
Agents

Retailers
Consumers (Urban and Wholesalers
Rural)

16
In the retailer section the sales are done by different kind of retailers where the
general urban store contribute the highest numbers followed by Modern retail
followed by the rural retailers.

Sales through different channels

7%

33%
Urban General Store
60%
Modern retail
Rural Retail

17

You might also like