Emami's fair and handsome


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Marketing: A presentation on how Emami's fair and handsome entered into indian market, beating competition and established itself as a men's brand.

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Emami's fair and handsome

  1. 1. EMAMI‟S FAIR AND HANDSOME THE ENTIRE STORY LBSIM, DELHI 1st Year Rinky Sachdeva Rohit Jain Atul Mathur Munish Mittal Aditya Goel Satyam K. Saxena
  2. 2. INTRODUCTION  Set up in 1974 with a vision of providing better life to customers in personal and health care.  Company has its headquarter in Kolkata.  For three decades brand Emami has been identified with vanishing cream and talcom powder.  Later grew and ventured into Real Estate,Retailing Paper and Writing Instruments.
  4. 4. COMPANY INTRODUCING NEW PRODUCTS  Boroplus Antiseptic Cream – 1982  Vanishing cream and Powder- 90‟s  Navratna Hair Oil – 2000  Maduri Beauty secret Range – 2002  And finally, the world‟s first fairness cream for men in 2005
  5. 5. EMAMI FAIR & HANDSOME  The company launched this cream in june 2005,in collaboration with Activor corporation of the United States in Andhra Pradesh.  Aimed to gain 20% market share of men‟s fairness cream market by 2005-06 and reach through 30,000 outlets.  In 2006,product was available at 9 lakh outlets.
  6. 6. Promotional Strategy  Display of products across 5000 outlets,  Display-cum-availability in 25000 outlets and  Promotions on school and college campuses.
  7. 7.  From media budget of Rs 2.5 Crore, 70% was spent on TV.  The company also planned to introduce it in premium saloons.
  8. 8. GROWTH RATE OF EMAMI VS FMCG SECTOR 70.00% 60.00% FMCG Emami 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Q1 Q2 Q3 Q4
  9. 9. OPPORTUNITY IDENTIFICATION  It has been observed that males are becoming more sensitive towards skin care products especially product related to fair skin.  Due to unavailability, men started using women‟s fairness creams like fair & lovely fairness cream etc.  A Fairness creams for men was completely unexplored opportunity due to following reasons: Closer to reality, male Skin was more exposed to sun‟s UV rays, five times more exposed to pollution, twice more exposed to stress and considerably more abused by usage of shaving blade than women‟s skin.
  10. 10. Contd…  A Fairness creams for men was completely unexplored opportunity due to following reasons: Indian men spent more time on grooming than ever before as compared to women.  There was an increasing incidence of the fact that active earners linked presentability with the career success: the high earning 2140 age group across men accounted for 71 per cent of customers visiting kaya Skin Care Clinic.
  11. 11. PRODUCT DEVELOPMENT AND ITS BENEFITS  Emami in collaboration with Activor Corporation had created a unique fairness cream in the name of „Emami‟s Fair & Handsome‟ fairness cream for men with a breakthrough of peptide complex patented in United States.  Following are the benefits which are emphasized in the promotional campaign:    Peptide works on the collagen structure of male skin and improves the skin texture and fairness in just four weeks. Active ingredients regulate the production and melanin(the pigment that determines the skin‟s brown colour). Natural sunscreen protects against the UV rays. Peptide in combination with vetiver and rose water makes the skin fair and fresh with a pleasant cooling sensation.
  12. 12. COMPARATIVE ATTRIBUTES OF MEN‟s FAIRNESS CREAMS Emami’s Fair & Handsome HLL’s Menz Active Launched December 2005 2006 Campaign Hi Handsome...Hi Handsome Change your story Attributes listed on pack Vitamin B3 along with Zinc Deep Penetration fairness with Vitamin B3, Long Oxide, Sun Protection, NonSticky, Mint essential for cooling, Smoothness, Reduce after shave irritation Present Market Share(2012-2013) 58 %(total market of 329 crore of mens fairness cream) Price(Rs) Rs 100 for 60 gm Sale in 2012 Rs 190 crore lasting freshness with 100 per cent more sunscreen, Smoothness with silicon conditioners, Economical to buy, Mint essential for cooling Rs 80 for 50 g
  13. 13. MARKET EXPANSION STRATEGY  After capturing a sizable market and goodwill of the urban consumer market, Emami planned to cover remote villages  The company tied up with P&T department for distribution of its products through almost 5000 post offices across Maharashtra and had planned to reach out all the 1.05 lakh post offices across India.  Emami also planned to use ITC e-choupal outlets in UP and MP, and also used army‟s canteens to enhance the distribution of its product.
  14. 14. REPORT ON SELECTED ASPECTS OF THE FAIRNESS CREAM INDUSTRY Mr Pankaj Mehta, Brand Manager of the Emami group requested his colleague, Jigar, a management trainee to prepare a report on the fairness cream and below are the findings of the same:1)Size of the Industry:The Indian FMCG market is valued at US $ 1 billion( 45000 crore) and is growing at 7-8 percent per annum. About 20 per cent consumers of Fair & Lovely were men. Given that sales of Fair & Lovely were estimated at Rs 500 crore in 2005, men contributed Rs 100 crore. 2)Growth:The fairness cream market has been growing at 25 per cent per annum compared to overall cosmetic market of 15 per cent per annum. From Rs 384 crore in 1997-1998, the fairness product market jumped to Rs 558 crore in 19992000.
  15. 15. Contd… 3)Consumer Behavior:It is believed that there exist 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.
  16. 16. GEOGRAPHICAL DISTRIBUTION  North is the largest market followed by west then south and east.  Kerala, Gujarat and Bihar are the top three growing markets with Kerala growing by 40.37 %. Contribution To Turnover South, 23% East, 21% East West North North , 29% Source: Company, CSEC Research West, 27% South
  17. 17. SEGMENTATION OF FAIRNESS CREAM MARKET The Upper End:  Garnier Nivea  Olay L‟oreal The Middle End:  Fair & Lovely Ponds  Emami- Fair and Handsome Fairever The Lower End  Includes sachets, trail pack to promote the actual product  Duplicate products on the name of fake brands
  18. 18. COMPARISON OF FAIRNESS CREAM BRANDS  The market size of the fairness cream products in India was estimates to be 800 cr.  The market growth rate ranges between 15- 18% per year.  Fair & Lovely (HLL) has 76% market share. HLL also had fairness products under its lakme and Aviance brands.  Fairever (Cavinkare) has 11% market share.  Emami with 8% has market share.
  19. 19. COMPARISON OF FAIRNESS CREAM BRANDS Major Brands Fair & Lovely (HLL) Fairever (Cavinkare) Emami Fair Glow (Godrej) Market Share 76% 11% 8% 4% Product Extention Fairness cold Cream, Soaps Chik Fairee Gold Turmeric, natural fair, Fairand Handsome (Men), fair and teen (Girls), Fair and Ageless Soaps, Cream Price 50 gms Rs. 78 25 gms Rs. 28 50 gms Rs. 60 50 gms Rs. 70 Lauched First Time 1976 (Fair & Lovely) Media Used for Promotion TV, Print 1974 (Emami) 2005 (Fair and Handsome) TV TV, Print TV
  20. 20. ADVERTISING AND PROMOTION  Emami is market leader in men‟s fairness cream segment with a market share of 61.3 %.  Company has recently launched „ zyada‟ campaign with a new packing and positioning.  Company has spent INR 450 Mn for the advertisement of Fair and Handsome in FY 2013, which is 16% of the total advertisement spend and 24% of the Fair and Handsome sales.
  21. 21. ADVERTISING AND PROMOTION Advertisement Expense in percentage of sales 20.00% 13.60% 16.40% 12.20% 11.20% HUL Marico 10.00% 15.50% 0.00% Dabur Emami 25% 20% 15% 20% 14% 20% FY 11 FY 12 Colgate 22% 16% 10% 5% 0% FY 09 FY 10 FY 13 3000 2500 2000 1500 1000 500 0
  22. 22. SEGMENTATION OF YOUTH  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.
  23. 23. Contd… • Late Youth (30 years) – Focus: Career advancement and children – Spending Power: Reduces compared to middle youth – Prefer a mix of luxury and functionality  Affordable pricing strategy for Early youth  Trendy value proposition for Middle youth  Fun and spirited products for Late youth
  24. 24. RURAL MARKET PENETRATION  Aggressive distribution expansion in the rural market to mitigate slowdown in the urban market.  Emami is expnding its rural distribution network through its project Swadesh.  Between FY 09 – 13, company has added 0.2 mn direct retail outlet taking the count to 0.6 mn and company plans to add 0.2 mn in next two years.  Directly stocking with retailers bypassing wholesalers.  Currently the company derives 52 % of its domestic sales from rural market.
  25. 25. CONTROVERSY FINDS IT‟S WAY  Controversy surrounded on advertisements shown on TB by HLL as early as in 2000  A critical misinterpretation of one of the ads was: Sons, not daughters, are natural bread winners. A girl can only land a good job if she displays and improves her physical attributes  Setback by a report by AIIMS, New Delhi, which declared that “no externally applied cream can change colour”.  It substantiated it‟s report with valid medical reasons.  Hinted clearly that “claims of fairness creams are nonsensical propositions”  The then I&B minister instigated the National Congress for Women (NCW) for not raising it‟s voice against commercials which projected women in a bad light
  26. 26. Contd…  A commercial that showed a talented but dark girl winning a singing competition after using a certain fairness product  A recent Fair and Handsome ad showed SRK telling the viewers that he became a superstar because he wanted more out of life and the cream helped him in realizing his dream  An online petition urging Shah Rukh Khan Emami to stop advertising fairness products garnered 7000+ signatures in first few days itself  Labelled “unfair” and “discriminatory” advertising  However, not an attack on brands or brand ambassadors, but on the toxic belief that only fair skin is beautiful
  27. 27. “ THANK YOU!! QUESTIONS? ”