PROJECT REPORT

ON

MARKETING STRATEGY

OF

FAIR & LOVELY

Submitted to:

Dr. Saji nair

IIM LUCKNOW

BY:

Richa 2 (32)

Ruchi (34)

Reeti (30)

Shalini (37)

Richa1 (31)

Shalini kumari (38)

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Shrestha (42)

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CONTENTS

TOPICS PAGE NO.

INTRODUCTION ………………………………………………………3 MARKET SEGMENTATION…………………………………………..4TARGET MARKETING………………………………………………...6POSITIONING ………………………………………………………….9DIFFERENTIATION…………………………………………………….10SUGGESTION.………………………………………………………….12

INTRODUCTION

Product: FAIR & LOVELY

Brand: HUL

INDUSTRY ANALYSIS

HLL to HUL HUL is India’s largest consumer product company and was formed in 1933 by Lever

brother’s India. HUL is market product leader in India. It is the first company which has introduced

fairness cream Fair and Lovely was launched in 1975. Fair and lovely has massive 56% market share.

Fair & Lovely: Evolution of the Brand

Hindustan Unilever's star product in the fairness creams segment had evolved into one of the most successful brands over three decades in as many distinct phases. Phase 1 saw the launch of the product in 1976 on the basic premise that "younger women wanted to have fairer skin in order to attract a better looking husband." HUL marketed this brand as a beauty cream capable of providing fairness within 8 weeks. The value proposition lucidly communicated to the consumer base read, "Get noticed by the man of your life."

During Phase 2 of Fair & Lovely's evolution, the brand talked to a younger college going woman who is self confident and more modern in her outlook and believes home remedies for facial care to be old fashioned. In Phase 3, this further metamorphosed into a brand offering emotional benefits for achievers who actively seek solutions and do not look at marriage as the ultimate source of personal achievement. Fair & Lovely thus became a brand which communicated a message that Fairness leading to Beauty leading to Good husband to Fairness leading to Self-confidence leading to Good career.2

THE GENERIC MARKETING STRATEGY

The general marketing strategy of any company includes the following steps, so is the case in fair and Lovely. They are as follows:

S-MARKET SEGMENTATION

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T-TARGET MARKETING

P - POSITIONING

D – DIFFERENTIATION

SEGMENTATION 1) GEOGRAPHIC SEGMENTATION

REGIONWISE – Fair and Lovely is preferred all over in India(highly preferred in south).

SOUTH36%

WEST23%

NORTH23%

EAST18%

MARKET SEGMENTATION IN INDIA FOR COSMETIC

INDUSTRY

RURAL AND URBAN AREAS - Rural and urban market segmentation has been done by Fair and Lovely.

2) DEMOGRAPHIC SEGMENTATION 1. Age – In age wise segmentation, Target group is 17-25 years and user group is 12-50

years of age.2. Income - Segmentation has been done into Lower class and middle class groups as it is

allow cost cream.3. Gender-

Basic products of fair & lovely Target group: women User group: women & men

Fair & lovely Menz Active Target and user group: Men

4. EDUCATION- More users are of uneducated and of less educated group.

3) PSYCHOGRAPHIC SEGMENTATION

1. Life style – It is an important variable as it significantly affects the brand choice of consumers. Here Hyundai is aiming gregarious personalities.

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4) BEHAVIOURAL SEGMENTATION 1. Usage rate- It is to find out whether the customers use it on daily basis or occasionally.

2. Loyalty status- It tries to increase loyalty by giving Special incentive like discount schemesTarget group is loyal customers

RESEARCH METHADOLOGY

1. Research problem: To study market strategy for fair and lovely.2. Data source : primary data and secondary data3. Research Design : Exploratory RD4. Research methodology: exploratory method5. Research instrument: questionnaire (5 point likert scale)6. Research Methodology :

Population: Set of all potential Buyers in India.Sampling Frame: Set of all potential buyers in Patna Sample size: 20.Sample method: Judgment sampling.

LIKERT SCALE USED

Strongly disagree-1 Disagree-2 Neutral-3 Agree-4 Strongly agree-5

Results for MARKET SEGMENTATION

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VARIABLES R1 R2 R3 R4 R5 R6 R7 R8REGION 5 4 3 4 3 4 3 4RURAL & SEMIUR 4 4 5 4 4 3 4 5INCOME 4 4 5 4 3 4 3 4

Of all these segmentation variables income and age was choosed for focused group discussion for Targeting stage.

TARGET MARKETING

REGIONTeenager Teenager Teenager Middle Middle Middle Old Old Old Lower Middle Upper Lower Middle upper Lower middle upper

R1 4 4 2 5 4 3 4 3 3R2 5 4 3 2 4 1 1 2 3R3 4 4 3 5 3 1 3 1 2R4 3 4 3 5 3 1 3 3 1R5 4 4 3 4 3 2 3 2 1R6 3 4 3 4 3 2 2 2 2R7 4 5 2 5 3 2 2 3 2R8 4 5 2 5 4 2 2 3 2R9 3 3 2 4 4 1 1 3 1R10 5 3 2 4 5 1 1 3 1MEAN 3.9 4 2.5 4.3 3.6 1.6 2.2 2.5 1.8

RURAL AND SEMI URBAN AREATeenager LTeenager MTeenager UMiddle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper

R1 4 3 1 4 3 2 1 3 1R2 3 2 2 3 3 3 2 2 2R3 3 4 2 3 2 2 3 2 1R4 4 3 1 4 3 2 1 3 2R5 3 2 2 3 3 3 2 2 2R6 5 3 2 3 2 3 3 2 1R7 4 3 1 4 3 2 1 3 1R8 3 2 2 3 3 3 2 2 2R9 5 3 2 3 2 3 3 2 2R10 4 3 1 4 3 2 1 3 1

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Lower Middle Upper Lower middle upper Lower middle upperR1 4 3 1 4 3 2 1 3 1R2 3 2 2 3 3 3 2 2 2R3 3 4 2 3 2 2 3 2 1R4 4 3 1 4 3 2 1 3 2R5 3 2 2 3 3 3 2 2 2R6 5 3 2 3 2 3 3 2 1R7 4 3 1 4 3 2 1 3 1R8 3 2 2 3 3 3 2 2 2R9 5 3 2 3 2 3 3 2 2R10 4 3 1 4 3 2 1 3 1MEAN 3.8 2.8 1.6 3.4 2.7 2.5 1.9 2.4 1.5

GENDERTeenager LTeenager MTeenager UMiddle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper

R1 4 3 1 3 2 1 3 1 1R2 4 4 2 3 2 2 1 1 1R3 4 4 1 4 2 2 2 1 1R4 4 4 1 4 2 1 1 1 1R5 4 4 1 4 2 1 2 1 1R6 4 3 1 5 2 1 1 2 1R7 4 3 1 4 1 1 1 2 1R8 4 3 1 3 1 1 1 1 1R9 4 3 1 3 1 2 1 1 1R10 4 3 1 3 1 2 1 2 1MEAN 4 3.4 1.1 3.6 1.6 1.4 1.4 1.3 1

EDUCATIONTeenager LTeenager MTeenager UMiddle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper

R1 1 3 3 3 4 4 1 1 1R2 1 4 4 4 4 5 1 1 1R3 1 3 3 3 4 4 1 2 1R4 1 3 4 3 4 5 1 2 1R5 1 3 3 3 4 4 1 3 1R6 1 3 4 3 4 5 1 3 1R7 1 3 3 3 4 4 1 2 1R8 1 3 4 3 4 5 1 2 1R9 1 3 3 3 4 4 1 1 1R10 1 3 3 4 4 5 1 1 1MEAN 1 3.1 3.4 3.2 4 4.5 1 1.8 1

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Lower Middle Upper Lower middle upper Lower middle upperR1 4 3 1 3 2 3 3 2 1R2 3 4 2 4 3 2 5 2 2R3 3 4 2 4 3 2 4 3 1R4 4 3 1 3 2 3 3 2 2R5 3 4 2 4 3 2 5 2 3R6 3 4 2 4 3 2 4 3 2R7 3 4 2 4 3 2 5 2 1R8 4 3 1 3 2 3 3 2 1R9 3 4 2 4 3 2 5 2 2R10 3 4 2 4 3 2 5 2 2MEAN 3.3 3.7 1.7 3.7 2.7 2.3 4.2 2.2 1.7

USASE RATETeenager LTeenager MTeenager UMiddle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper

R1 4 3 1 3 2 3 3 2 1R2 3 4 2 4 3 2 5 2 2R3 3 4 2 4 3 2 4 3 1R4 4 3 1 3 2 3 3 2 2R5 3 4 2 4 3 2 5 2 3R6 3 4 2 4 3 2 4 3 2R7 3 4 2 4 3 2 5 2 1R8 4 3 1 3 2 3 3 2 1R9 3 4 2 4 3 2 5 2 2R10 3 4 2 4 3 2 5 2 2MEAN 3.3 3.7 1.7 3.7 2.7 2.3 4.2 2.2 1.7

LOYALTY STATETeenager LTeenager MTeenager UMiddle Middle Middle Old Old Old Lower Middle Upper Lower middle upper Lower middle upper

R1 3 4 2 4 3 2 5 2 2R2 3 4 2 4 3 2 4 3 1

AGE

Teenager middle old

lower

INCOME middle

upper

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DIFFERENTIATIONIn our case the product has been differentiated into two dimensions.

PRODUCT DIMENSION: As compared to its competitors Fair & Lovely has Variety- It has more variety than its competitor such as Ayurvedic, Anti mark cream,

multivitamins, skin clarity etc. Design-It has very attractive design. It is available in different kind packets, also in small

five Rs. Sashes. Reliability- It is very reliable in lower class and lower middle class.

Image Dimension: Symbol- In the market it has created a symbol of fairness cream. In recent

advertisement they have created the image of “Beauty beyond fairness” Punch line- The punch line of Fair & Lovely “Chand ka Tukra” they have attracted a big

market Packaging- its packaging is very attractive. The external cover of this cream contains

pictures of big actresses and famous models for attracting young customers.

According to our survey two strategies of Fair & Lovely such as Variety and Packaging is very success full because in our survey these strategies have got highest rating such as Variety (3.35) and Packaging ( 3.5) .

Fair and lovely should give more attention on these two strategies to increase their market share as well as their productivity.

DIFFERENTIATIONProduct d R1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16 R17 R18 R19 R20Variety 3 3 4 5 3 4 3 3 3 2 4 3 3 3 4 5 3 4 3 2Design 3 2 1 3 2 2 3 1 4 1 3 2 2 3 1 4 3 2 1 3Reliability 2 1 2 3 2 3 2 3 2 3 3 1 2 2 1 2 3 2 3 2

Image dimentionSymbol 5 4 3 3 4 3 2 4 5 3 2 4 3 4 5 4 3 3 2 3

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POSITIONING

“Positioning is the act of designing the company’s offerings and image to occupy a distinctive place in the target market’s mind. The essence of brand positioning is achievement of valued distinction/differentiation in a consumer’s mind.”

Positioning variables for fair and lovely are as follows:

Quality – After survey, It has been found out that its quality is of medium scale. It produces an instant fairness effect. All the oil & fat used in Fair & Lovely products are of vegetable or synthetic origin only. Unilever follows a very stringent code of not using any animal based ingredients. Fair & Lovely as a base before makeup then your makeup will last for hours. Even if you are sweating it does not show the sweat on your face.

Price- Being cheap Fair & lovely is affordable to people of any class and the fairness cream is pretty much effective as well. It is, therefore, used in villages and low income families on a grand scale.

Variety- A variety of fair and lovely creams is present in the market keeping in consideration different sections of the society. E.g.

Fair & Lovely Ayurvedic

Your skin appears naturally fairer when in a state of balance. Presenting New Fair & lovely ayurvedic Balance enriched with Lodhra and Manjistha in addition to kumkumadi Tailz, a powerful concoction of 16 precious ayurvedic ingredients, know to helps restore the natural balance on skin.

Fair & Lovely multi vitamin

This cream gives you: Natural fairness, balanced skin tone, Rejuvenated skin.Fair & lovely Multi Vitamin with a breakthrough Tri-fair vitamin complex that works on key barriers to clear fairness.

Darkening Marks Uneven skin tone

Fair & lovely anti marks fairness cream10

It contains new Vita-Aloe Complex made with a breakthrough combination of essential vitamins, Aloe Vera and fruit principles that work within the inner layers of skin to give you clear, fair skin.

Fair & lovely multi vitamin winter fairness creamMulti vitamin Winter Fairness Cream gives you: The fairness of Fair & Lovely Multi vitamin. The goodness of Active Moisturizers and the protection of Sunscreens. Now get radiant fairness along with soft, supple skin in winter. Fragrance- It plays a very important role in positioning of any fairness cream in the mind of consumers. The fragrance of fair and lovely is very good and smoothing.After the survey, we have found that the following two factors are the most important factors for the positioning Fair and Lovely:

QUALITY PRICE

positioningR1 R2 R3 R4 R5 R6 R7 R8 R9 R10 R11 R12 R13 R14 R15 R16 R17 R18 R19 R20 AVG

quality 4 5 3 4 3 4 5 3 5 4 4 4 4 4 5 5 5 5 5 5 4.3price 3 4 4 3 4 4 4 4 5 5 5 5 3 4 4 3 3 4 4 4 3.95

HIGH QUALITY

LOW PRICE HIGH PRICE

LOW QUALITY

SUGGESTIONS

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Need for Change : Fair & Lovely has come a long way since 1976 when it was first introduced in India, modernizing along with its consumers. Women in the society have transformed and the brand has evolved to capture this need. Currently though, underplaying the fairness attribute may hurt the brand so the focus has to be extended and not shifted. This extension includes fairness but adds that extra something to the product as well as the brand. The addition of attributes to products would increase the perceived value for the customer which is an important objective with a mature product such as Fair & Lovely.Though Fair & Lovely is the market leader in this segment, an erosion of its market share is always on the cards, especially since there are no significant points of difference from its competitors. The basic product needs to be re-positioned with additional attributes to increase its points of difference from the other competing brands. This revamp needs go beyond just the look of the package (which has been constantly changing) and instead, drill into the core of the brand.

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