Marketing Strategies of olay,Fair&Lovely and Garnier


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Marketing Strategies of olay,Fair&Lovely and Garnier

  2. 2. INTRODUCTION • Market size of cosmetics industry is estimated to be worth 1.5 billion dollars. • It is projected to reach almost 3 million dollars by 2014. • The industry has been growing at an annual rate of almost 20%. • Use of beauty products by men has increased tremendously to 80%. • The foreign investments and domestic players of beauty products has led to a gradual rise inthe Indian market.
  3. 3. Skin Care market • Belongs to Personal Care segment. • Due to the advent of technologies and medical improvisations skin care solution business is growing high. • Can be classified into tonners, sunscreens, cleanser etc. • Has increased significantly within a span of 6yrs. • New players for example; Olay has entered the market.
  4. 4. CURRENT MARKET TRENDS • Anti- aging skin care segment is growing due to baby boomers. • of • Concerns about health and hygiene . • Growing metro- sexual demand. • Shift in customer preferences; improved purchasing power and rising fashion consciousness among people. • Value for money ; increased level of brand advertising (non- pricing factor)
  5. 5. Why does beauty products industry flourish in India??
  6. 6. FAIR & LOVELY • World’s first safe and effective skin lightening product, launched in 1976. • Hindustan Unilever Limited is the mother company. • Sold in over 30 countries across Asia, Middle East and Africa. • Market leader in fairness creams market.
  7. 7. • Fair & Lovely products user group – i. Lower or middle classes, mainly women. ii. Income- 1 to 3 lakh. iii. Age group- 17-30 years.
  8. 8. PRICING STRATEGY • Different sizes- even affordable small size pouches. • The price for the products range from Rs 5 to Rs 100. • Low price strategy is being followed . • Pricing objective reflects desire for survival and maintaining major share in the market. • Affordability for the product determined by: i. the income of the consumers ii. price of the products and services. • Factors affecting the price : i. Internal factors - cost, and the pricing objective. ii. External factors - consumer, suppliers and competitors in the market.
  9. 9. NON PRICING STRATEGIES ADVERTISING VARIOUS STAGES OF ITS PRODUCT LIFE CYCLE 1. Introduction phase: Print Ads since 1970’s. 2.Growth stage: TV Ads 3.Maturity stage: • Diversification of the product range • Catering to consumers by understanding their particular needs.
  10. 10. Other Non Pricing Factors • Communicates message that fairness lead to beauty and further, self-confidence. FAIRNESS  BEAUTY SELF CONFIDENCE • Enhancing brand image OTHER PROMOTIONAL ACTIVITIES • • Print Media The Fairness Meter • The advertisements exploit the emotional side of customers . Shows them how the cream would solve the fairness ‘problem’.
  11. 11. • Not overpriced like its competitors • Not promoted as a Premium Brand • Positioned itself as the cream that fulfilled one’s dreams and desires. • Packaging changed frequently. • Backed by effective ingredients, the brand guarantees fairness as though acquired from an expert treatment. This assurance, despite being nominally priced.
  12. 12. GARNIER  In 1991 with the Ultra Duox Shampoos.  Introduced the Wrinkle-Lift cream in 1995 that was later developed into the Ultra Lift Anti-Wrinkle Firming cream. • Targeted women of age 35+, from a middle and higher socioeconomic status. • Initially priced at Rs. 399 for 40 mL and now at Rs. 863 for 50ml (Ultra Lift).
  13. 13. – Pricing:  Stiff competition with HUL’s Pond’s Age Miracle and P&G’s Olay in 2011.  Maintained the same price range to keep customers loyal  Has frequent developments and new product flows • Non-pricing: Ads featured blend of foreign and Indian models and actresses. Articles in fashion magazines and campaigns Social networking sites like Twitter and Facebook and Emails.
  14. 14. – Tagline:  “Take Care” – all Garnier products in General  YES to fairer & younger looking skin” & “Against inside cell damage” (Age-lift cream alone) – Suffered no major losses – Has a stiffly growing market in India
  15. 15. Olay –”Challenge what’s Possible” • Launched in June 2007-relatively new product. • Target group : 35+ age group of elite socio-economic backgrounds • Product Type: Premium( unlike Fair & Lovely) • Main Focus: Anti-Ageing ( Olay Total Effects) • Owned by: Procter&Gamble
  16. 16. Reference: Market Study of Olay 2011-12
  17. 17. • PRICING: • 1) High price limit set keeping in mind the target group. ( Olay Regenerist Serum is priced at Rs.1299) 2) High price limits potential buyers; but creates a niche of being associated with elites. 3) Higher price = Higher quality.
  18. 18. • PRICE COMPETITION: • Aggressive race with Ponds Age Miracle and Garnier in 2011. • There was huge investment in promotion by Olay. • Rise of price of raw materials along with inability to rise the prices-resulted in huge losses. • P&G recorded highest loss of 333.5 crores
  19. 19. Non-Pricing: a)Social Net-working: Fb, Twitter etc
  20. 20. b) Exclusive showrooms: Affiliated doctors and dermatologists – unlike Fair&Lovely which sells through retailers. c) T.V Ads- featuring 35+ actresses. d) Taglines: “Challenge what’s possible.” e) Product description: focuses on chemical compositions rather than natural, herbal ingredients like Garnier
  22. 22. COMPARISON 1.Pricing factors OLAY Fair and Lovely Garnier Targets elite urban upper class women of the affluent category .(25 yrs &above) Target audience ranges from Target audience from rural middle class to urban general upper and middle lower income group. economic classes. (18-35 yrs) Considered to be premium Skincare brand Does not claimed itself to be Not a premium brand a premium brand. though not priced as low as Fair& Lovely. Relatively high prices . Adopt low pricing policy. Pricing somewhere in the middle.
  23. 23. 2. Non Pricing Factors Olay Fair&Lovely Garnier Television ads by actresses They have ordinary girl advertised by a blend of over the age of 35.-easy next door kind of ads international and Indian models. which can reflect to reality relation. . It has exclusive showrooms with doctors and dermatologists Exclusive showrooms are a rarity. Sells through retailer. The stars in their ads are the products rather than the model. Social networking sites to a large extent. First ad –featured in Print media. Crisp-To the point Taglines are a highlight.
  24. 24. Number of buyers and sellers: • Although there are large number of sellers only a few of them are the main players in the market. Entry And Exit: • Entry into the beauty product market is not an exceedingly difficult task in terms of investment required. • But as a result of cut throat competition you will be forced out of market if your product is not very different from the existing players. Product Differentiation: Although the products maybe similar the are not exactly the same. Thus each company establishes its identity through a differentiated product. Interdependence: The different players are inter dependent on each other to a large extent in terms of both pricing and non-pricing strategies.
  25. 25. REFERENCES: • • 1. 2. 3. 4. www. 5. The Economic Times.