Product Marketing and Management for Fair and Lovely Max Fairness

Fair & Lovely Max Fairness Product Marketing and Management – Individual Assignment

This assignment report analyses the market issues for the Brand Product – Fair and

Lovely Max Fairness using different Marketing Tools and Techniques. It also

suggests a Marketing Plan and a Marketing Strategy for F&L Max Fairness.

2014

Prajakta Talathi – GSEP13CMM031

Fair & Lovely Max Fairness

PMM – Individual Assignment – Prajakta Talathi (GSEP13CMM031) Page 1

Table of Contents Product .................................................................................................................................................... 2

Market Issue ........................................................................................................................................... 2

Brand Analysis ......................................................................................................................................... 2

A. Customer Pyramid ...................................................................................................................... 2

B. Brand Layers ................................................................................................................................ 3

C. Brand Personality ........................................................................................................................ 3

D. Kano’s Model .............................................................................................................................. 4

E. Product Life Cycle ........................................................................................................................ 4

F. Brand Portfolio ............................................................................................................................ 5

G. Brand Asset Value ....................................................................................................................... 5

H. BCG Matrix .................................................................................................................................. 6

I. AICDA Model ............................................................................................................................... 6

J. Brand Identity ............................................................................................................................. 7

Marketing Plan ........................................................................................................................................ 7

Industry Analysis ................................................................................................................................. 7

Situational Analysis ............................................................................................................................. 8

Company ......................................................................................................................................... 8

Customer ......................................................................................................................................... 9

Competition .................................................................................................................................. 10

Collaboration ................................................................................................................................. 11

Climate/ Context ........................................................................................................................... 11

Marketing Strategy ............................................................................................................................... 11

Segmentation, Targeting and Positioning ......................................................................................... 11

Marketing Mix ................................................................................................................................... 11

Basic 4 Ps of Marketing Mix .......................................................................................................... 11

Additional Ps of Marketing Mix .................................................................................................... 13

Brand Architecture ............................................................................................................................ 13

Daughter Product Brand Architecture .......................................................................................... 13

Budgeting and Timelines ....................................................................................................................... 13

Recommendations ................................................................................................................................ 13



Product Fair and Lovely Max Fairness (Earlier known as Fair and Lovely Menz Active)

Market Issue 1. Consumer is getting smarter and becoming more aware of beauty products especially effects

of fairness creams so the growth of fairness industry is slowing down

2. A Fast Moving Consumer Good, hence too many competitors, ranks second in market share

Brand Analysis

A. Customer Pyramid

•Initially it was believed that men feel shy to promote the product beauty products but recently it is observed that men and women share their experiences through word of mouth

•Consumers once convinced about the product will tend to be loyal;beauty product and directly touches the skin, consumers do not readily experiment with the product

•Even though the switching cost of commodity products is low, consumers once satisfied hesitate to switch beauty products



B. Brand Layers

C. Brand Personality

SOCIAL RESPONSIBILITY

SELF EXPRESSION

EMOTIONAL

FUNCTIONAL

• Does not convey anything about its purpose for society at large

• Basic product so no element of self expression attached

• Results of using can help gain emotional field of experience lie confidence, happiness, etc

• Daily use fairness cream for men

•F&L is perceived to be genuine, kind, thoughtful and responsible

Sincerity

•F&L will help boost personality to accomplish things and become influential and successful

Competence

•F&L is perceived to be elegant and unpretentious

Sophistication



D. Kano’s Model

E. Product Life Cycle

Basic features of a fairness cream: 1. Skin whitening 2. Oil control 3. Blemishes removal 4. Sun expert 5. Freshness provider

Performance is not consistent. Mixed reviews from users. Not all users experience the fairness effect after usage

Excitement is the aspirational awe effect which the buyer perceives that he will achieve after he uses the product. But because of mixed reviews, this aspiration is not sufficient as a buying motivator

Cu

sto

me

r S

atisfa

ctio

n

Product Features

The decline in sales can be one of the indications that the product has reached a

Matured phase and will reach the Decline phase.



F. Brand Portfolio

G. Brand Asset Value

Brand Value

Brand Vitality - Beauty product with name having

name Lovely is a disconnect

Differentiation - First of its kind. Makes you look good outside but feel good inside

Relevance - Fairness cream related to fairness related products - purity of the

brand

Brand Stature - F&L has high status and scope for

growth

Esteem - Brand Name, HUL and Parent Name, F&L are regarded high in the minds

of the consumer

Knowledge - Consumers are highly aware that F&L is fairness beauty product.

Initially men using cosmetic products were considered to possess feminine characteristics. This notion is changed now and men are using cosmetic products everyday



H. BCG Matrix

I. AICDA Model

•Consumers buy F&L Max Fariness believing that it will give the desired results

Action

•Combination of interest to become fair and develop a good personality and that this product is offered by a highly credible company, HUL, develops desire to buy

Desire

•HUL and F&L both are highly trusted and reliable brands

Credibility

•Men today seek good personality and the perceived perks associated with it

Interest

•F&L ad promotions have created its awareness and also that it can help boost personality by adding fairness touch to it

Awareness

Stars Question Marks

Cash Cows Dogs

Ma

rk

et G

ro

wth

Market Share

Fair and Lovely Max

Fairness has 2nd

highest market share

in the category of

beauty products for

men. It also has a high

growth potential



J. Brand Identity

Marketing Plan

Industry Analysis FMCG Sector is fourth largest contributor to India’s economy. Beauty and Personal Care is one of the

categories of FMCG and accounts to 20% of the share. According to Euromonitor, it is growing by

more than $ 1 billion a year. Indian market for Personal Care Products can be seen as below:

According to Euromonitor, Personal Care is a $ 37.5 billion industry in India. As per Nielsen’s

research report, men’s skin care product currently account for 5.3% of the total skin care products

market and is growing at a rate of 43% per year.

Trend Analysis

Consumers continue to spend on personal grooming products

Although economic uncertainty has slowed spending growth overall, consumer demand for personal

care products and services remains strong. A recent article in India Today magazine stated that

this trend has been inspired by what it called ‘lookism,” the focus amongst some on looks above all

other of a person’s attributes, inspired by movies and TV soap operas, seeking to be fairer and

Brand Positioning Fairness cream for men of age 18-

40, "Metrosexual men"

Brand Image Fairness cream; but product name is Fair & Lovely and Lovely name is

more feminine

Stakeholders F&L has the second highest Market

Share in its category

Product Attributes It has all the desired attributes that

a fairness cream should have

Brand Identity

Bath and Shower

46% Hair Care

31%

Skin Care 16%

Colour Cosmetics

6%

Fragrances 1%

Sales



slimmer. While this may or may not be true, it is clear that Indian consumers place great stock in

personal care.

In particular, male grooming is being taken more seriously than ever before. A recent article in the

Times of India noted “Women are not alone in this! Men also do care immensely about their looks

and indulge in elaborate grooming rituals to enchant women. They prefer to keep themselves

abreast of the latest skincare products among other toiletries on the market. Some even love hitting

the salon or spa for a luxuriant facial rounded up with a manicure and pedicure”

Rural consumers driving growth

Due to the significantly lower cost of living in rural areas, disposable income and spending levels of

rural dwellers continue to rise. According to a recent report from Credit Suisse, “Spending patterns

show a significant divergence across rural and urban India. While the mean household income of

urban India declined 3%, it increased 6% for rural India. With India’s Rural: Urban population ratio

still highly skewed at 70:30, strong rural performance would continue to support growth for Indian

consumer companies”.

Situational Analysis The 5Cs analysis is the best way to do Situational Analysis.

Company

Hindustan Unilever Limited (HUL) is an Indian consumer goods company based in Mumbai,

Maharashtra. It is owned by Anglo-Dutch Company, Unilever which owns a 67% controlling share in

HUL. HUL's products include foods, beverages, cleaning agents and personal care products which can

be used daily. It is the largest FMCG Company having products in over 20 consumer categories with

over 700 million Indian consumers using its products.

Fair and Lovely Max Fairness

F&L is one of the major selling Beauty and Personal selling products of HUL. Because it is sold under

the Brand Umbrella of HUL, it beholds a strong Brand Equity. F&L Max Fairness is a fairness product

for Men.

SWOT Analysis

Strength

•Under HUL Brand Umbrella

•First to introduce Men's Fairness cream

•Good quality product

•Excellent distribution system

•Consumer awareness & top of mind

Weakness

•Consumer attitude towards beauty products for men: Some sectors of India still perceive that using beauty products is feminine

•Name Lovely being used for products of men

Opportunities

•Growing awareness of the product

•Slow but adapting to the concept

•Tapping rural areas

•Product line extensions

•Higher consumer spending on personal care products

Threats

•Major competition

•Controversies over linking beauty and success

•Import restrictions



Customer

Needs, Wants and Desires

Due to the sub-tropical climate, most Indian men do not have a fair complexion. Additionally, there

is a growing perception resulting into a significant shift in attitudes among male consumers that

well-grooming can contribute to their professional as well as personal success. This can be explained

by the Maslow’s Hierarchy of needs.

On the contrary, the wise consumers are becoming more conscious about their physical health and

the health of their skin and not just slimmer body or fairer skin. Moreover, the knowledgeable

consumers are aware that confidence comes from education and not by using personal care

products as shown in the advertisements of these products. It comes from a sense of

accomplishment. Lastly, consumers have started realising the long-term effects or side-effects of

using fairness creams.

Buying Behaviour

A typical buying process for fairness cream is as shown in the below diagram.

Need / Want

Environment Scan

Evaluate Alternatives

Purchase Decision

Brand / Service

Post Purchase Dissatisfied

Satisfied Brand Loyalty & Advocacy

Recently it is perceived that

people get success in personal

and professional levels owing to

how well groomed they are.

F&L caters to this need of being

fair and well groomed which will

help consumers satisfy their

needs of love, security and self-

esteem.



Customer Profile

Competition

FMCG has major competitors due to its low barriers to entry. Some of the strong competitors for

HUL, F&L Max Fairness are:

1. Emami, Fair and Handsome

2. Garnier Men Power Light

3. Nivea Men face whitening

Age Income Level

Occupation



Collaboration

HUL has very high Value Chain and high level of collaboration with its suppliers and distributors in

India as well as abroad.

Climate/ Context

HUL has well established business in consumer goods in India. Any new product development,

enhancements in current products or line extensions of current product can leverage the already

established network and business working environment in India.

Marketing Strategy

Segmentation, Targeting and Positioning The segmentation of male consumers can be based on their geographies i.e. Rural India and Urban

India; based on their age, income level and occupation. One of the segments can be rural men, age

group 18-40 years and middle income level category. Likewise more segments can be identified.

Consumer products have a mass market and hence broader segments. Moreover, few

psychographic parameters such as readiness to purchase a cosmetic product should also be

considered for segmenting.

The biggest target segment is the Metrosexual men who are conscious of their appearance. Also,

those men can be targeted who think that good look is the key to success. The new target can be

rural men, who have good income level and high desire for fair and good looks. As incomes of rural

Indians continue to grow, these consumers offer significant market expansion potential. One of the

target customers would be women who can persuade the men in their lives to make use of personal

care products for grooming.

The present positioning of Max Fairness is either to provide 2X Fairness within 6 weeks and also that

the product features are enhanced to work on tough male skin to give visible fairness, visible spot

reduction and triple sunscreen protection. Positioning lacks a fixed tagline. The present lines

associated with Max Fairness are “2x Fairness” and “For Lasting Fairness”. The later one should be

incorporated since this will help in top-of-the-mind recall of the product.

Marketing Mix

Basic 4 Ps of Marketing Mix

VitaMAX Complex and UV filters

Fairness cream for Men with enhanced features

First product of its kind;

Market-oriented and 2nd degree pricing

At par with competitors

25gms for INR 38

HUL has largest distribution network

Available at all retail outlets, pharmacies, etc

Ad Campaigns and Print media

Fairness Meter and Extra at same cost

Scholarship programs



Product – Features: The world's leading Fairness Expert provides skin care, Fair & Lovely Max

Fairness for men. Its revolutionary VitaMAX Complex and UV filters work intensively on tough male

skin to give visible fairness, visible spot reduction, and Triple Sunscreen UV protection.

Category: Personal Care -> Skin Care -> Facial Care -> Fairness Care -> Men’s Fairness product

Line Extensions: Create new line extensions. One extension is already present i.e. Fairness Face

Wash, few others like Night cream, Sunscreen or Skin Treatment can also be introduced.

Additionally, creams based on skin type should be introduced.

Pricing – 2nd Degree Pricing: F&L Max Fairness is a commodity and hence follows the pricing

based on volume.

Market-Oriented Pricing: Large competition providing good and branded products exists in this

sector. Target customers are price sensitive and hence pricing is decided by the market conditions.

Place – Distributions: HUL has a reach of 6.4 million retail outlets which includes direct reach to

over 1.5 million retail outlets.

Promotions – Mass Marketing: Fairness product is a commodity and hence has a large target

audience. Mass marketing will be an effective traditional way of promotions. It can be in the form of:

1. Television Ads

2. Radio

3. Print

4. Cinema

5. Outdoor – Hoardings etc

6. Press

Apart from the traditional methods, new promotional techniques such as Alternate Media can be

used:

1. Create a Buzz – Indian audience are very fond of celebrities, make celebrities do the talk

and create a buzz

2. Events – F&L should host some event under the name of Max Fairness. It should also do

some sponsor some events or functions. Apart from the high profile events, Max Fairness

should also undertake some social responsibility campaigns like sponsoring education,

facilitating research students, plastic recycling etc. as an HUL Shakti initiative but highlighting

the name of Max Fairness

3. Web 2.0 – F&L Max Fairness already have their Facebook and twitter pages. They should be

actively promoting on these channels. Additionally make use of YouTube and other social

media sites for promotions

Another way to attract Indian price sensitive masses is by means of Sales Promotional Techniques

i.e. Discounts, Extra 20gms product, Free skin analysis etc.

Apart from the above means, make Consumers involved in the promotional campaigns. Show users

sharing their experiences and make them Brand Ambassadors.



Additional Ps of Marketing Mix

Packaging – Make use of innovative packaging. Instead of highlighting the Fair and

Lovely, a misleading name, make use of Max Fairness for promotions. Some

innovative packaging such as Pumps instead of tubes can be sold; this will ease the

process of cream extraction from tubes.

Participation – Involving consumers and making them the Brand Ambassadors will help in

emotionally connecting with the consumers and make them feel that F&L Max Fairness is a part of

their lives.

Purity of the Product – Adopting a different packaging and making use of Daughter Product Brand

Architecture, will help maintain the purity of the brand and enhance the likelihood of purchases.

Brand Architecture

Daughter Product Brand Architecture

Re-package by making use of consumers on the product cover. Additionally,

highlight the Max Fairness name of the product and minimize the Fair and Lovely

font and logo.

Budgeting and Timelines

Budgeting

Last year, HUL spent approximately $ 1.5 billion on their total marketing cost. Assuming

approximately 2% of the total expenses to be utilized for Max Fairness i.e. $ 3 million will be used for

marketing and promotions this year.

Introducing new product lines will be taken up as a part of new business development and hence it

will undergo different stages of planning.

Timelines

Assuming 6 months for the whole campaign, 40% of the time will be utilized for planning and

strategizing. Next 30% will be spent for execution and last 30% for responses and remedy reaction or

responses and further promotions.

Recommendations Based on the above marketing strategy, following are the key recommendations:

1. Introduce new line extensions

2. Convenient packaging – pumps instead of tubes

3. Highlight Max Fairness instead of Fair & Lovely

4. Target the rural market

5. Aggressive promotions using Alternate media and Customer Engagement