PERSONAL CARE SECTOR IN INDIA: AN OVERVIEW One of the key constituents in FMCG sector Brand wars & Price wars Awareness of personal hygiene The high value of fair skin Resulted in the market for fairness creams and bleaches touching Rs 2,000 crore’s Fairness creams account for approximately Rs 1,800 crores
NATURAL AND HERBAL BASED PRODUCTS Introduction of herbal, traditional ayurvedic and mineral ingredients in cosmetics. Positioning changed from a rather traditional and old- fashioned platform to modern healthy practice. Leading to greater social acceptance and higher sales through the year.
SUN CARE IN INDIA Hindustan Unilever Ltd led sun care sales in 2010, Hindustan Unilever Ltd accounted for over 41% value sales in 2010.
FAIRNESS CREAM Accounts the largest share in skin care sector. The market growth rate ranges between 15 – 20% on a year-to- year basis. HUL`s Fair & Lovely(76%) followed by CavinKare`s Fair Ever(15%) Other important players like Godrejs Fairglow, Emamis Fair and Handsome, Vicco and Himalaya share the rest of the market share.
MEN’S GROOMING TAKES OFF Increased male spending on grooming products. The growth of this segment has been exponential latent but effective driver could be the fact of low penetration of these products in the market. An underpenetrated market always crates scope for enormous growth. Usual categories of pre-shave and razors, men’s skin care, which promised fair and blemish-free skin, performed well.
IMPLEMENTING APPROPRIATE MARKETING STRATEGY Fairness cream producers go for “Differentiated Marketing Strategy” Characterized by : Appropriate by financially strong companies Companies having cut throat competition Strongly established in personal care sector ( especially skin products)
CONSUMER BUYING HABITS VARIETY SEEKING BUYING BEHAVIOUR: Low consumer involvement but significant perceived brand differences.“The individual likes to shop around and experiment with different products.” Consumers are effected by advertisements, coloring and packaging, brand image and celebrities
APPLICATION OF CONSUMERRESPONSES TO DIRECT MARKETING Direct marketing is a channel-agnostic form of advertising. Allows businesses and nonprofits to communicate straight to the customer. It enables to engage directly with the audience - whether they are prospects, leads, end users or existing customers. Positive results can be measured directly, Flexible Targeting, Ease of Management, Rapid Delivery, Relationship Building
Cont.…Advertising techniques such as mobile messaging, email, interactive consumer websites, online display ads, fliers, catalog distribution, promotional letters, and outdoor advertising.
DIRECT SELLERS MAKE DEEP INROADS The market share of direct sellers, both multinational, for example Amway , Avon and Oriflame, and domestic, for example Modicare, rose in 2010. As a result of concerted efforts to bring in new products in color cosmetics and skin care to create interest and excitement. Expansion of networks to reach more consumers in smaller cities. Amway and Oriflame also started advertising. Judged that they had reached critical mass in terms of their networks, which would create pull if they advertised.
CULTURE Cultural symbolism-color, visual symbols Gender roles, child rearing Sub-culture-race Human relationships
REFERENCE GROUPS Celebrities acting in the advertisements-aspiration groups- ponds white beauty, fairever Comparative group advts- fair&lovely Brand preferences influenced by family & friends(especially girls)
Since it is a privately used not a necessity brand of the cream has less influence compared to the usage of the product Family & friends provoke to use fairness creams. Buying decision: wife dominant
INNOVATIONS Continuous development – ayurvedic, oil control, anti – wrinkle, pimple remove, spot remover, fairness, uv protector Adoption depends on relative advantage, cost Trialabillity – sample sachets, side – effects Diffusion of the product will be regarding
SNOW WHITE SYNDROME• The growth of fairness cream companies in the country is indicative of Indias obsession with white skin, also called the Snow White syndrome.• Top brands such as Hindustan Unilevers Fair and Lovely and LOréals White Perfect have been growing by up to 18 percent a year.
Skin color matters a lot for women in India. Fairness is a very valuable thing here, looked on as desirable. The fashion world can be a big agent for change in this area.
FAIR, THE INDIAN OBSESSION WITH FAIRNESSCREAMS Every girl wants to be fair like Aishwarya Rai Bachan
“Black Skin White Masks” book author Fanon says “As much as the white man thinks himself superior to the black, the black man desires to be white. Indeed, black men want to prove to white men, at all costs, the richness of their thought, the equal value of their intellect”. “For the black man, there is only one destiny. And it is white”.
Myths of Fairness Creams• Most advertisements claim – and obviously unfairly - that the continued use of their fairness creams will change the skin color of the user with seven days or so.• The gullible public fall a prey to these types of misleading advertisements, little realizing that such magic cannot and will not happen
There are instances of several persons persistently using these creams for several years with absolutely no improvement in their skin complexion
Fairness Cream in India Fairness creams have a huge market in India, both urban and rural In India, the sector had registered 23% growth in 2010 Surprise that India leads the markets, followed by Saudi Arabia. http://www.buyerbehaviour.org/2007/06/fairness-creams-in-india.html
The market for men’s fairness products is valued at Rs 30 million, and constitutes 35 percent of the market.http://www.scribd.com/doc/36712814/Consumer-Behavior-Study-of-fair-and- handsome-cream
Facts to be considered Scientists say that skin colour is determined by the amount and type of melanin, the pigment in the skin. It is said that whether one is fair or dark is dependent more on genetic rather than environmental causes. Yet, people all over the world are preoccupied with the colour of their skins.
Indian male take an average of 20 minutes in front of mirror to groom them compared with Indian female who take an average of 18 minutes in front of mirror at every morning This is also noticed that 25-30% of fairness products are purchased and used by male customershttp://www.scribd.com/doc/36712814/Consumer-Behavior-Study-of-fair-and-handsome-cream
Indian men were using fairness creams that were originally targeted at women. Fair and Handsome is a brand that created the Mens fairness cream segment in India. Launched in 2005, the brand became the creater and the market leader of this segment.
Emami went for serious customer research which showed that 25-30% of customers of Fairness creams were men. The total fairness market is estimated to be around Rs 800 crorehttp://www.scribd.com/doc/36712814/Consumer-Behavior-Study-of-fair-and-handsome- cream
Male skin in India • Three times more exposed to the sun UV rays • Five times more exposed to pollution • Twice more exposed to stress • More Abused by abrasive shaving blade actionhttp://www.scribd.com/doc/36712814/Consumer-Behavior-Study-of-fair-and- handsome-cream
Promotion form TV commercial "Hi Handsome, Hello Handsome" Print advertising "Hey man, are you using lipstick? Then why you are using fairness cream of female?
Reasons for the growing demand • Greater access to television, • which has made the Indian consumers beauty consciousness • increased his or her need to look presentable and attractive • Increased advertising in general • Greater product choice and availability http://www.scribd.com/doc/34999913/Fairness- Cream
Demographic Effects • Greater tendency to use fairness creams in Southern India • Frequency of application decreases with age • Highest percentage of users among single working women • Younger women more inclined towards branded products • Men are increasingly using fairness creams http://www.scribd.com/doc/34999913/Fairness- Cream
Vacant Position Need for a newproduct • Fairness products contain bleaching agents which make the skin dry and flaky, especially during the winter season • Consumers need to apply a separate moisturizer after the application of the fairness product • No existing products for use on other visible parts like arms and feet http://www.scribd.com/doc/34999913/Fairness-Cream
Vacant position A fairness product that contains a moisturizer and is priced low enough to be applied on arms and feet
Body lotion brands Nivea hand body lotion Cocoa butter hand lotion Avon naturals conditioning water lily & aloe hand & body lotion Aloe Vera-hand and body lotion Vaseline
Body lotion features Moisturizer Nourishing Whitening Skin Revitalizer
What fairness cream u use? Option Respondents Fair & Handsome 31% Menz active 13% Fair ever 17% Nivea 13% Fair one man 26%
HOW FREQUENTLY YOU BUY CREAMS? Option Respondents Weekly 16% Occasionally 24% Monthly 20% As per need 40%
Survey Characteristics Age group: 20 – 30 Gender : 11 Male & 29 Female Sampling : Convenience sampling
FindingsBRAND PREFERANCE: 72% of the respondent prefer Fair & Lovely 15% of the respondent prefer Garnier 10% of the respondent prefer Olay 3% of the respondent others
Major factors influencing buyers behaviour is Quality. People change their cream because it doesn’t suite their skin. 80% of consumers are satisfied with their current brand. 35% of consumers prefer brand outlets for buying. 37% of consumers prefer departmental stores.
Background of Market positioning In 1975, HLL launched its first fairness cream under the F&L brand. With the launch of F&L, the market, which was dominated by Ponds (Vanishing Cream and Cold Cream) and Lakme (Sunscreen Lotion), lost their dominant position. The dominance of HLLs F&L continued till 1998, when CavinKare launched its Fairever cream in direct competition with F&L.
Brand positioning Celebrity endorsement – competitive tool. The biggest challenges in marketing communications - to break through ever increasing media clutter. Users and non-users - brands perceive the brand positioning meaning differently.
Background for men fairness creams Customer research which showed that 25-30% of customers of Fairness creams were men. Customer insight paved way for a specialized brand for men. Fair and Handsome is targeted at young urban men aged 15- 35. Fair and Handsome is commanding a market share of over 30-40% in the segment.
TOP 10 BRANDS FOR FAIRNESSCREAMSFAIR AND LOVELY
REFERENCE WEBSITES and ARTICLES1. http://www.copperwiki.org/index.php?title=Fairness_Cream2. http://businesstoday.intoday.in/story/fairness-cream-market-sees- profit/1/17399.html3. http://infobharti.com/indias-top-10/top-10-fairness-creams-in-india.php4. http://www.scribd.com/doc/36712814/Consumer-Behavior-Study-of-fair-and- handsome-cream5. http://www.olay.in/en-in/Pages/NaturalWhiteProducts.aspx6. http://www.garnier.in/_en/_in/our_products/trade87. http://www.fairandlovely.in/foundation/foundation.aspx8. Tackling the Snow White syndrome in India - Rediff.com Get Ahead.html9. The Reasons Humans Have Different Skin Colors.html10. BBC News - Indias unbearable lightness of being.html11. http://bodylotion.net/why-do-you-need-body-lotion-and-creams/12. BBC NEWS South Asia India debates racist skin cream ads.html13. Tejas Article Fair & Lovely Redefining Beauty.htm