Table of contents3Letter of Transmittal
4Letter of Acknowledgement
5Unilever Portfolio / Background
5Mission and Vision Statement:
6Background:
7Fair n Lovely
8SWOT Analysis
8Strength
8Weakness
8Opportunities
9Threats
10BCG
10Star:
11Question Mark:
11Cash Cow:
11Dog:
12Marketing Research
12Objective
12Consumer Characteristics
12Cultural Factor
12Social Factors
13Personal Factors
13Psychological factors
14Consumer Responses
17Competitor VS FAL SKU
18Market Segmentation / Target Marketing
18Market Segmentation
18Target Marketing
18Geographic Segmentation
18Demographic Segmentation
19Behavioral & Psychographic Segmentation
19Positioning
20Assumptions
21Marketing Objectives
22Core marketing strategies
22Market Penetration:
22Product Development:
22Market Development
22Diversification:
23Marketing Strategies and Tactics
24Distribution Channels and Pricing
24Complaints
25Contribution
25Growth rate over last year
26Pricing
27Recommendation
28Appendix
28Reference:
28Contacts
28Book:
28Web sites:
29Questionnaire
31Illustrations
31Retail Shops
32Shelves
32Distribution Center
Letter of Transmittal
Mr. Salman Tariq Mir,
Faculty,
Institute of Business Management (IoBM),
Karachi
Dear Mr. Mir,
Please accept this formal Report as you requested. The product
chosen by us is Fair n Lovely, We have taken this product a step
further and introduced FAL guy. All the materials stated are used
and mentioned in this report are authentic and also throughout the
report Fair n Lovely will be referred as FAL.This report is the
result of hard work by the entire group in collecting the
information from the representatives of the chosen company as well
as surfing on the internet, visiting retailers, consumers,
distributors and incorporating it in the form of report.
All issues pertaining to the topic have been covered. If you
have any queries please feel free to contact us on the given e-mail
addresses.
Sincerely,
Muhammad Shan-e-Elahi
Shifa Ibrahim
Farrukh Ahmed
Abbas Jan
Amyn Dhamani
Letter of Acknowledgement
We appreciate the co-operation extended to us by Ms. Farheen
Salman, Product Manager Fair and Lovely at Unilever Pakistan. She
gave us an insight about our product and our target market.
We would also like to thank Mr. Mohib, owner Naheed supermarket
and Mr. Aqeel who were very welcoming and helped us understand the
different aspects of the market. We would also like to thank Mr.
Faisal, sales man at Imtiaz superstore.
Thirdly we would like to thank the Unilever territory sales
officer Mr. Faisal Ali Khan for showing us the different aspects of
distribution and going over the price rates.
And most important of all, we are greatly indebted to the
sincere efforts of our teacher, Mr. Salman Mir Tariq, in helping us
solve the problems we faced, in giving us a clear and distinct
direction and in providing guidance to us throughout this process.
It is due to his tireless efforts, consistency of instructions and
the encouragements that we have very successfully completed our
report.
Unilever Portfolio / BackgroundLever Brothers Pakistan
LimitedLever Brothers Pakistan Limited (LBPL) is the largest fast
moving consumer goods (FMCG) companies in the country, with its
head office situated in Karachi and annual sales in excess of Rs.20
billion. Lever Brothers employees 2500 employees and operates 6
factories producing 50 different brands countrywide.
Mission and Vision Statement:
Touching hearts changing lives.Unilever's mission is to add
vitality to life. We meet the everyday needs for nutrition,
hygiene, and personal care with brands that help people feel good,
look good and get more out of life.
1. We are one of the leading consumer products company in
Pakistan, with deep roots in the country.
2. We attract and develop highly trained people who are excited,
empowered and committed to deliver double-digit growth.
3. We serve the everyday needs of all consumers everywhere for
foods, hygiene and beauty through branded products and services
that delivers the best quality and values.4. We strive to remain an
ever simple and enterprising business.
5. We use or superior consumer understanding to produce
breakthrough innovation in brands and channels.6. Our brands
capture the hearts of consumers through outstanding communication
and through managing a responsive supply chain.
7. We maximize value from suppliers to customers.8. We are
exemplary through hour commitment to business ethics, health and
safety, environment factors and involvement in the community.
Background:
LBPL was incorporated in Pakistan in 1948 and work started on
the present factory at Rahim Yar Khan. Dalda Banaspati was the
first product to be produced, followed by Lux toilet soap in
1954.
LBPL pioneered the business of processed animal and poultry
feeds in Pakistan when it began production and marketing in 1960.
Surf, the first of its non-soapy-detergent (NSD) powders was
launched in 1963 produced in conjunction with Futehally Chemicals
(Pvt) Limited.
The present Karachi Edibles Factory was acquired in 1965 from
A&B Oil Industries Limited. Reconstruction and expansion of the
factory was completed in 1994 making it one of the most modern
plants in Pakistan.
LBPL moved into the Personal Products business in 1981. Further
diversification on the food side of the business took place with
the introduction of margarine and cooking oils. In 1994 a state of
the art factory for producing ice cream was erected and began
production in a record time of 10 months.
Unilever had acquired Lipton and Brooke Bond business worldwide,
however in Pakistan it was decided to merge Lipton with LBPL in
1984. Legal merger became effective in 1989. Lever Brothers and
Brooke Bond merged in 1997.
Fair n LovelyBased on a revolutionary breakthrough in skin
lightening technology, Fair & Lovely was test marketed in 1975
and has been nationally marketed since 1978. In fact, Fair &
Lovely has been extensively tested with consumers in country India
and abroad, and has been proven to be superior in terms of benefit
delivery to all key competitive brands.
The formula used in Fair & Lovely's contains a unique
fairness system that is a combination of active agents and
sunscreens. It has been specially designed and proven to deliver
one to three shades of change in most people. Also its sunscreen
system is specially optimized for Indo-Pak skin. This type of skin
unlike Caucasian skin tends to 'tan' rather than 'burn' and, hence,
requires a different combination of UV A & UV B
sunscreens.
Fair & Lovely fairness cream is marketed in over 38
countries through HLL Exports and local Unilever companies and it
is the one of the largest selling skin lightening cream in the
world. The brand today offers a extensive range of products to
consumers including Fair n Lovely Fairness Reviving Lotion, Fair n
Lovely Fairness Cold Cream, Fair n Lovely Fairness Soap, Fair n
Lovely Anti mark cream, Fair n Lovely Oil Control and Fair n Lovely
Herbal Cream.
SWOT AnalysisStrength The cost of local FAL is cheaper the
Indian FAL which is a big competitor FAL has come up with big nose
sachets which allows the consumer to use it for a longer period FAL
spends huge amounts of money for advertisement the ratio to
competitor is 5:1Weakness
Takes a long period to act effectively and show results.
Has a greasy effect on the skin
The name FAL does not appeal to men
Some women are ashamed of admitting on using FAL because of its
reputation as a device to get married
Opportunities
Expand in day and night creams for women as well as men.
More publicity for men using the product. Secondary focus should
be men in all kinds of media as well.
With the increasing technology, FAL can use different chemicals
which can have instant results The amount of people using creams is
increasing day by day FAL can come up with different varieties of
creams to fit different needs of the consumers
Threats
More awareness amongst the target market due to advertising
campaigns of local as well as international competitors in local as
well as foreign media.
Brand loyalties of customer to Nivea or Tibet does not allow
them to go for FAL
Oral medicines are becoming more popular for better skin care
for example Accutaine
Nature craze has taken over, people are more into natural
products such as honey and cinnamon or Aloe Vera plants rather then
cream to protect their skin or make then fairer. New age soaps have
active ingredients which induce fairness to the skinBCG
The Boston Consulting Group Approach is used to classify all the
SBUs of the company according to the growth-share matrix. The
vertical axis of the matrix shows the market growth rate which
provides the measure of market attractiveness. On the horizontal
axis the relative market share shows the strength of the company in
the market.
SBUs is the unit of the company that has a separate mission and
objective and is planned independently from other company
business.
HI
LOW
HI
LOW
Star: The star product is a high growth rate and high market
share product. At this moment FAL Oil control gel is in this
category. This gel has taken over the market with its unique
ingredient of giving fairness as well as getting rid of acne. Huge
amount of money is being spent on promoting it including a lot of
point of sale promotions.
Question Mark: Two products Anti mark and Herbal cream are in
the question mark category. These two are high in market growth
rate but low on market share rate. There is insurability whether
these brands will make it in the market or just die out but still a
lot of money is going into promoting it.
Cash Cow: This is the category which brings in pure money. Pure,
in the sense that it does not have the need for further investment
in order to hold the market share. Yes it still does require
promotions every now and then in order to keep the user aware of
it. The first FAL product the FAL fairness cream falls comfortably
into this category. It is the cream which is still widely used.
Dog: This is the category where the product has died out, or not
bringing in enough money. This category has low market growth rate
and low market share. FAL had introduced a Fairness soap which did
not do that well. Pakistani consumers did not respond much to the
soap as Indians did.Marketing Research
Objective
Our objective was to see whether the consumers are satisfied
with the current FAL products or would they like a change. We
focused on the usage of FAL fairness cream and looked into how to
improve it in order to fulfill.
The first thing we did was to conduct a survey using a
questionnaire. This allowed us to go into the customers mind and
evaluate what characteristics affect the consumers behavior.
Consumer Characteristics
Cultural FactorCulture is the main cause of a persons wants and
behavior. What is in the culture of Pakistan which makes woman go
towards fairness?
Pakistani women have a huge desire to be fair especially in
urban areas. A woman who is fair is looked upon as being
intelligent, confident and extremely beautiful. A bonus point for a
fair woman is if she does not have a single blemish on her skin. In
most matrimonial advertisements the color fair is the highlighted
part of the womans characteristics. Social Factors
Women look up to actresses in Pakistan. Famous actresses such as
Babra Sharief and Neelam play an important role in molding the
womens personal characteristics. In movies etc fair women are
portrayed as the women in control, women who can make changes and
can handle any situation presented to them.Family also plays an
important role. Mothers start grooming their daughters from the day
they are born massaging natural products into their body to make
their skin lighter and smoother. Mothers keep giving their
daughters incentives of staying out of the sun and using a number
of products for keeping their skin fair.Personal FactorsAs women
mature their needs and wants increase. They look for more
innovative ways of keeping them self up to mark. As a woman grows
older and her skin goes through various changes due to puberty
weather etc the products she uses also changes with that.When a
woman or a man go out on a job hunt, they are really particular
about their appearance and their facial texture and color. They use
products to make them look presentable. A woman who has a desk job
and no interaction with people would not be as influenced in buying
a fairness product as a woman who is continuously meeting clients
would be.
Depending on the paycheck of a consumer shows whether they can
afford the product or not. The product should cater to consumers of
all sorts of economical backgrounds.Psychological factorsWhen
dealing with fairness a lot of psychological factors get involve. A
woman who is dark and everyone around her is dark would not be
motivated into buying a product which makes her fair. But a woman
who is fair and lives in an environment where her whole status
depends on her fairness then she in turn would be highly motivated
into buying a fairness product.Some women are comfortable with
their skin, they dont look at what people have to say or believe
they go by their own attitude. Consumer ResponsesWe interviewed
some customers in a retail shop and here are some responses of
consumers of FAL and other competitors
Mr. Salim He does not use any cream even aftershave because of
skin problem.
His color is naturally fair
He will not purchase any cream except if an incentive is
provided by company.
Ms. Nadia She is currently using NIVEA cream
She was using FAL but some one told her that there are some
chemicals in FAL which is not good for skin so she left it
She buys the big jar which costs her Rs.300/ and lasts for about
6 to 8 month
She has dry skin
She has used many cream like Tibet, Pond's etc
When asked if she would like to change her brand she replied by
saying Nivea is complete I would never change.
When asked about FAL she said it is good but Nivea really works
for her She said if niveas price become high then she may change
her product
She herself goes for shopping
Ms. Nazish
She usually gets Clinic cream from abroad.
Her skin is Oily + dry
Through word of mouth she had been introduced to FAL and has
heard positive responses of it.
She said the advertisement for FAL are not effecting the
product. She started using Clinic because of word of mouth.
She said she does not like creams which have a lot of chemicals
inside them like FAL. She will never switch what ever the incentive
will be given to her.We also used another medium of acquiring
consumer responses of people all over Pakistan and India through a
intermediary website www.orkut.com Here are a number of responses
in their original format.Rohit [email protected]
I have used it, and have found that it really makes u thoda sa
fair. it has around 75% market share in its category, so u can
think
Kulsoom Bano"
