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Integrated Marketing Communication Submitted by Group 8 - Section B emamiFAIR AND HANDSOMEHandsome’ brand commands over 30-40% of themarket share in the country. The ‘Fair and Handsome’ family leads the industry with revenues of over 55 crores,and sales of 16 crore cases in 2005 alone. ‘Fair and Handsome’ has always projected itself asan international brand and with presence in 60 countries, truly, Fair and Handsome is aglobal brand. The following integrated marketing plan provides an outline of how ‘Fair andHandsome’ brand has been successful so far and how it can further consolidate its marketshare. The total fairness market is estimated to be around Rs 900 crore and men’s segmentis around Rs 160 crore A fair complexion has always been associated with success and popularity. The postlaunch research done in India indicated that 73% consumers reported improvement incomplexion, 78% found it to be an effective after-shave moisturizer & 75% found effectiveoil control.Emami Fair and Handsome is targeted at male consumer between the ages of 15-35.The company expects to sell one million tubes in the next 12 months period. Through a survey that we conducted and fromsecondary data sources, we observed that withsocietal perception changing and purchasing powerincreasing, it is likely that first time men, of differentGroup Members:ages would increasingly shift their preferences. Wesaw the need to extend the product line with the Mani Kansal(PGP14/65)introduction of a new variant. PallaviKumar(PGP14/223) PreethiRS(PGP14/228) The report recommends a marketing mix forthe ‘Fair and Handsome’ brand primarily focusing on RohanKumar(PGP14/237)the positioning of the new variant. The expected SurumiAbdulla(PGP14/247)profit for Fair and Handsome is about 25 % CAGR ascompared to the industry average of 8-9 % CAGR. This Luigi (IE/14/09)would help Fair and Handsome achieve a marketshareware of 20% in the fairness market with astrong foothold in the up coming markets. Emami’s presence in India
GROUP 8 - Section B2&H and the subsequent Ad campaign has resulted invery good sales for the product. The ad campaignwhich shows A young man becoming more appealingto the fairer sex after using the cream for a period oftime has met with immense success (albeit there wassome controversy over the Complexion issue). The fact that the skin types of men and womenare different and hence deserve different treatment hasbeen brought out well through the punch line which is“Being a man, why use a fairness cream meant to beused by women?” Time and again though questionshave been raised about the ethical issue with respectto influencing people to go for a fair complexion. Bollywood Superstar Shahrukh Khan appearing in the Fair and Handsome ad has boosted sales
GROUP 8 - Section B2.5 Rationale for choosing the brand Through most of the campaign, Emami’sbanner ads directed participants to a survey. Questionswere tailored for the different markets. In India, “Fair& Handsome” was already an established product,so the survey takes a direct approach with questionscrafted to promote the product. In Kenya, though,Emami had not yet introduced the product, so thesurvey was for product research. Note that two separate, but similar, surveyswere run in India. The answers were resoundingly infavor of the product; with almost all respondentssaying men should use a fairness cream and 85%saying they will try “Fair & Handsome”. In thesecond Indian survey, 93% of respondents say theywill buy the product and 95% will recommend it to afriend. I’m not sure if the survey takers were a self-selecting audience or if some respondents just lied. In Kenya, Emami learned that Unilever’scompeting product has a 57% market share (at leastamong mobile users) and that most consumers usefairness creams twice a day. In Kenya, Emami learned that Unilever’scompeting product has a 57% market share (at leastamong mobile users) and that most consumers usefairness creams twice a day. The “Fair & Handsome” ad campaign ranfrom April – June and August - December 2007.During this period, Emami’s mobile banners wereviewed nearly 8 million times in India and 5million times in Kenya. The banners received anaverage click-through rate of 2.69%.Emami bid 1 US cent per click. The eight-month campaign cost about US$4k. That’s aboutUS$ 495 per month or US$16.50 a day.CAMPAIGN RESULTS: Emami set out to increase awareness of the“Fair & Handsome” brand and to collect consumer contact details. Nearly1800 mobile surfers completed Emami’s surveys; some 1450 providedaccurate mobile phone numbers. Not taking into account banner views,increased market knowledge and heightened publicity, that’s about 36US cents per contact.
GROUP 8 - Section B3. Brand Performance Evaluation3.1 BCG matrix of Emami’s productked 1st. Said AdityaAgarwal, director of Emami group, “Men nowcontribute to about 45 per cent sales of his Rs 10-crore Emami NaturallyFair brand. Fair and Handsome is worthRs 45 Crore now commanding a marketshare of over 30-40% in the segment.” Considering the above facts - ahigh growth men’s skin care segment v/sEmami Ltd. value share increase in2008, on account of the strongperformance of Emami Fair &Handsome with 30-40% of total marketshare. As per the BCG Matrix, it falls inthe ‘Star’ Quadrant. .BCG matrix for Emami’s F&H
e to western culture through various media. Themarket for this product is in the urban areas & semi urban areas - definedby the emergence and increasing acceptance of metrosexuals. Though the penetration and consumption is low, the product iswidely available in most retail stores (large or/and independent Kiranastores) where the consumers avail the product. The product is purchasedunder influence of the perceived value the consumer attach to fair skinwhich is reinforced by trend that advertising create and peers. Theconsumer may have a tendency to use the product on a regular basis,the assortment of similar products that a consumer purchase is low. Emami has competitors in the mens fairness cream segment(Source: Euromonitor International from National Statistics) Population Age Shift 2000 and 2020, Each Column Represents a Single Age GroupAccording to the above chart by 2020 over half of all Indians will be less than29 years of age. The first waves of these young people are already enteringthe work force. Basing on McKinsey & Co report called ‘The Bird of Gold:The Rise of India’s Consumer Market,’ where it is predicted that India willbecome the world`s fifth biggest consumer market by 2025 driven by buoyantincomes and high GDP growth rate. The future of Indian men’s grooming isset to be one of diversification, with major players investing heavily inadvertising to raise consumer awareness and erode residual stigma surroundingthe use of products such as Emami F&H.
GROUP 8 - Section B3.4 Market analysis3.4.1. Merger and Acquisition:Emami group merged with its marketing company JB Marketing & FinanceLtd. and acquired Zandu Pharmaceuticals Works Ltd in late 2008. Consequentto the merger & acquisition will be Emami’s intent on increasing its consumerbase by foraying into new product areas as well as strengthening and diversifyingits current product consumer expanse.3.4.2. Distribution Network:Presently, the company covers all states and union territories in India with over2500 distributors, direct coverage of 400,000 retail outlets and 1200 sales force.Emami can enhance leverage value out of supply chain, sales, distribution andhuman resource capabilities towards the purpose of consumer penetration inrural areas of India as well as capture more consumers in the urban/semi-urbanareas.3.4.3. Export Growth:Emami Ltd exports its range to 53 countries, including Nepal, Sri Lanka, theGulf countries, Europe, Africa and the Middle East. The company’s overseassubsidiary companies include Emami UK Ltd and Emami Bangladesh Ltd.Emami Fair &Handsome can give be a potential source of long term sustainedgrowth.3.4.4. Strong Market Growth:In Men’s Grooming Products market, Men’s skin care saw the fastest growthin 2008, of 37% in current value terms, to reach Rs888 million. Men’s skincare is expected to be by far the fastest growing subsector over the forecastperiod, with predicted total constant value growth of 267%. The Indian obsessionwith fair skin is expected to continue well beyond the forecast period, and thelaunch of new brands will serve to reinforce this trend. In such a scenario,Emami can invest in extensive & effective advertising and brand positioningof the product, which can influence consumers in switching loyalties.3.4.5. First Mover Advantage:The brand performance of Fair & Handsome drove Emami to its largest valueshare to 4% in 2008. The company by offering smaller pack sizes for Fair &Handsome has enabled capture of a wider consumer segment. The companycan leverage on its technological leadership and brand presence and capitalizeon this opportunity. Emami must also take serious note on launch of newproducts by other companies and counter measures should be to introduceproducts that move beyond skin whitening and focus on facial washes, anti-ageing, etc.
GROUP 8 - Section B3.5. Competitors analysisThe major competitor cosmetic companies are: · Dabur India Limited · Marico Limited · Godrej Consumer Products Limited (GCPL) · Hindustan Unilever Limited (HUL) · Procter & Gamble Hygiene & Health Care Ltd. The major players have kept the prices of the product steady or if increased is well below the inflationaryrate. But there is a clear indication of resurgent marketing activity launched by most of the major players thepast few years. Most notable being the 2008 launch of Aviance Men’s Solutions (complete range of men’sskin care products, offering multiple benefits, such as anti-ageing, facial cleansing and skin whitening) byHUL and extending FAL into men’s category with a variant Menz Active, Procter & Gamble’s merger withGillette in 2008, CavinKare& GCPL significantly gearing up to export its fairness cream to Middle East,Africa and Europe or players to focusing strongly on improving distribution in supermarkets/hypermarketsas a means to reach out effectively to their target market. All these may become a combative initiative thatmay prevent Emami F&H from gaining more popularity in retail markets which can lead to decreased salesof F&H and encourage consumers to shift to the rival brands. To counter this, Emami need to aggressivelymarket through advertising to create more brand awareness among the consumers and improvise itsdistribution channels to include direct sellers.3.5.1. Increasing Entry:There is an increasing entry into the Fairness cream market; most being well established cosmetic companies.FMCG major Dabur entered the fairness cream with its ‘Uveda’brand. Nivea, Garnier and Lo’real also havemoved into this segment adopting a promotion strategy of aggressive push in outlets that offer visualpositioning to consumers. Such entry eats into sales and market share and can force Emami to cut prices oroffer additional incentives to the consumers.3.5.2. Increasing Cost of Raw Materials/Price Sensitivity:The margins are coming under pressure, due to rising input costs and inability to increase product price. Asmen’s grooming is still in its nascent stage, companies have focused on more on expanding their share andreaching out to a wider spectrum of consumers.3.5.3. Counterfeit & Unorganized Sector:The phenomenon of counterfeit product on the borrowing of logos, names and package design of wellknown brands by small unorganized production units is not new in India. To tackle the issue the companycan invest more in advertising in consumer education and to help distinguish the originals from counterfeitsmay also employ the use of serial numbers and/or holograms etc.3.5.4. Global Economic MeltdownSince products such as men’s skin care and hair care are not daily necessities, the impact of downturn in theIndian economy could, significantly undermine growth of men’s grooming product. This may affect thesales. To tackle this Emami may need to invest time and capital to change and overcome negative consumerattitudes to male-specific toiletries and clever marketing strategies. For Emami to stay ahead of the downturn,it is important to convince male consumers of product efficacy because men are far more likely to be brandloyal than women once they find a product they like, and which works for them.