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Marketing Analysis for F&L
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1. How do you respond to the challenges made as to efficacy of the product?
Since Fair & Lovely is not categorized as a pharmaceutical product, Unilever has not been
required to prove efficacy. Many dermatologists do dispute its efficacy. Dermatologists claim that
fairness creams cannot be effective without the use of skin bleaching agents such as
hydroquinone, steroids, mercury salts, and other harmful chemicals, which Fair & Lovely does
not contain (Islam et al, 2006). “Whitening creams sell like hot cakes, although there is no
documented benefit,” says Preya Kullavanijaya (2000), director of the Institute of Dermatology,
Thailand. Dr. R.K. Pandhi, head of the Department of Dermatology at All India Institute of
Medical Sciences in Delhi, says that he “has never come across a medical study that substantiated
such claims [of whitening]. No externally applied cream can change your skin color” (Sinha,
2000). Professor ABM Faroque, Chair of the Department of Pharmaceutical Technology, the
University of Dhaka, Bangladesh, also questions the efficacy of fairness products and Fair &
Lovely in particular (Islam et al, 2006).
Faroque adds that, ironically, despite the obsession with fair skin, dark skin is actually healthier
and less vulnerable to skin diseases than lighter skin. Dark skin contains more melanin which
protects it from the sun and hence, reduces the incidences of skin disease. Whitening creams pose
a special risk in developing countries where dermatologists and general medical practitioners are
typically not the first to be consulted on the treatment of skin diseases (Kullavanijaya, 2000).
Patients often seek the advice of beauticians, family, friends, and pharmacists before going to a
licensed medical professional. This risk is aggravated by the fact that potent topical medicines are
widely available without a prescription.
2. If the same advertisement appears in Sri Lanka too and would you consider changing it
Yes, I would consider changing it as it’s not amalgamating with the most of the local viewers due to the culture and the other social concerns. I believe Sri Lanka literacy and cognitive decisions making is far better than the other Asian countries.
I would recommend considering following steps to evaluate and recognize the correct appeal to use and what the difference should made before launching the promotional campaign.
Objectives
The objectives of this study should cover
1. To identify the key appeals being used in SriLankan Press advertising.
2. To assess the appeals that dominate different product categories based on the products having
high involvement and low involvement in consumer decision-making, and purchases that are
done on rational and emotional buying behavior, and associate this with earlier studies of
Hofstede’s Cultural dimensions.
3. To develop a framework that reinforces the role of cultural appeals in creating effective
advertising.
Sri Lankan culture is reflected in local advertising, where an ideal world tends to be portrayed through depicting a loving husband, wife, mother and child, success, love, achievement, fantasy, family unity and other consumer aspirations. The content study will examine the appeals used to assess the cultural aspects of such appeals. The findings of the content study will give directions for further research in this area, so that advertisers can determine the kinds of appeals that would be effective for each product category. This will help advertisers make better decisions concerning advertising appeals that work in the market place.
By adhering to above guide lines and finding Fair & Lovely should change the appeal and approach.
3. Suggest an innovative way in countering the bad publicity given by the Social media
Social media has undoubtedly become an indispensable tool for companies, allowing businesses to connect with customers, spread brand awareness and build an online community. However, social media can also be a double-edged sword. One of the downfalls is that companies have no control of the dialogue about their brand. Bad news can quickly spread out of proportions, and negative reviews can have a lasting impact on the public perception of the company.
Complaints from customers, faulty products and accidents all make strong news stories - as do any crisis affecting your industry that could give your firm a bad name by association.
If your firm is getting critical coverage in the media, respond quickly, honestly and decisively. If you are in the wrong, it's vital to own up and apologise. Never say 'no comment' - it sends the message that you're in the wrong and suggests that you feel no remorse - and the press may keep digging for dirt. Face up to the situation and you can begin to restore the reputation of your business.
In a PR crisis, communication is the key to managing it. Keep the media, customers, your staff and suppliers informed. Tell your side of the story with a written statement and make sure the head of the business is available to talk to the press and others about what went wrong and what is being done about it.
Meanwhile, ensure that your employees do not talk to the press without permission and field enquiries from journalists to the right person.
Remember that bad publicity can offer a chance for your business to show how decent it is. If you apologise, make amends and explain how you're going to do better in future, you will find that in many cases the public will actually be very forgiving.
Eg:
As per the above explained content following summary of steps can be taken in order to manage the bad publicity
1. Publicity plan
Plan for potential problems in your particular firm or the industry you work in. How will this affect your business?
2. Learn from others
Remember you will not be the first to face trouble. Improve your strategy by looking to other companies who have successfully handled a similar crisis.
3. Keep people informed
Staying silent about your situation is not likely to help anybody, so keep your employees, customers and suppliers up to date. This will benefit everyone by clearing up any misconceptions about your firm's state of affairs.
4. Appoint a spokesperson
This should be somebody who can stay calm in the face of media enquiries, pressure and possibly awkward questions.
5. Post an explanation on your website
A website allows you to get your side of the story direct to the public. If you have not got a website, set one up as soon as possible.
6. Positive spin
Look for the 'good news' angles within your company - by making these public you can ensure negative press is mixed with the positive.
7. Prepare a press statement
Reporters tend to find a story with or without you, so preparing a statement for them is vital. It will help persuade the press to present you in an encouraging fashion.
8. Consider hiring a PR firm
In case of true disaster - eg a faulty product that could be dangerous, an employee lawsuit, or even a fatality - you may need professional help.
4. What would you suggest to Unilever to produce if they should live up to their corporate purpose "to
succeed requires the highest standards of corporate behaviour towards our employees, consumers, the
societies and world in which we live?”
As stated, HLL explicitly states on its website that its corporate social responsibility is rooted in its
Corporate Purpose - the belief that “to succeed requires the highest standards of corporate behavior
towards our employees, consumers and the societies and world in which we live.” However, it seems that
Unilever (and HLL) are not living up to these professed ‘highest standards’, at least, in the case of Fair &
Lovely. But, to be fair to Unilever, it is far from alone in this hypocritical behavior. Crook (2005) in a
survey on corporate social responsibility (CSR) concludes that for most large public
Companies, “CSR is little more than a cosmetic treatment.”
It is possible that HLL top management genuinely believes its own rhetoric that Fair & Lovely
‘empowers’ women. There is a wide gap between this belief and the position of civil activists that Fair &
Lovely advertising is demeaning to women. One possible cause of this gap might be the fact that the top
management (as mentioned in the annual report) and board of directors of HLL is exclusively male.
Maybe HLL needs to more actively listen to its customers and civil society.
5. In light of the facts given in the article, what would you think about the published “Social
responsibility of many multinational and national companies?
Corporate social responsibility is intimately related with the globalization of the business environment.
More than once, CSR was seen as a remedy to global problems. One of the main obligations of
multinational corporations was to deliberately assume social roles, especially because companies are now
less constrained by society’s basic order than they have been in the past. Since a supranational
governmental body is not available in order to monitor their activity across national borders and different
laws and standards could be found in different countries, the issue of the morality of multinational
corporations was vividly debated. But what a (multinational) company should do in order to comply with
its social role and, more important, why it should do it are issues that deserve special attention and moral
reasoning that outperforms the economic considerations.
Problems arise when there is a divergence between private profits and public welfare. In that case, there is
a need to constrain markets, which is particularly difficult in the context of developing countries. The
governments in developing countries often lack the political will, resources and the competence to
successfully restrain powerful firms. Corruption makes the situation even worse. These countries also
often lack the institutional maturity and public support needed for effective action by civil society and for
self-regulation by industry. As the countries develop economically, politically, and socially, these
shortcomings will get remedied. Meanwhile, CSR is the best hope.
References:
o De Mooij, M. 1998, Global Marketing and Advertising: Understanding Cultural
Paradoxes.Sage Publications, Thousand Oaks, CA.
o Douglas, S.P. and Craig, C.S. 1995, Global Marketing Strategy. McGraw Hill, New
York.
o Grein, A. and Ducoffe, R. 1998, Strategic Response to Market Globalization among
Advertising Agencies. International Journal of Advertising, 17, 301-319.
o Hall, Edward T. 1976, Beyond Culture. Anchor Press, Garden City, NY.
o Peebles, D.M. and Ryans, J.K., Jr. 1984, Management of International Advertising: A
Marketing Approach. Allyn and Bacon, Boston.
o Website :http://www.cyberpat.com/shirlsite/education/essay2/jfowles.html
o Skin Lightening and Beauty in Four Asian Cultures by Eric P. H. Li, York University,
Canada