Cultural Norms, Fair & Lovely, and Advertising.

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Case Analysis 2-2: Cultural Norms, Fair & Lovely, and Advertising.

Kasim Hussain

BUSA 460

Professor Simpson

November 17, 2008

The demand for cosmetic products in India is still increasing and the current market size stands at $950 million U.S. dollars. The growth is between 15-20% annually and the overall beauty and wellness market that includes beauty services is about $2,680 million. (Bhattacharya, 2008). The change in the socio-economic status of the Indian consumers, especially women, is one of the main reasons for the increase in the market size. The economic situation has resulted in India’s GDP, growing 8.7% from 2007 to 2008, this makes India one of the fastest growing economies in the
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Fairly & Lovely, Fairever and Godrej’s FairGlow are all offering the same core products and alleging that they are able to lighten the skin. To differentiate Fair & Lovely from the competitors a strategic approach to the marketing promotion is needed. It’s not enough to emphasize the unique selling proposition (UPS) of the product because the competitors are doing the same. Fair & Lovely is used by more than 27 million Indian customers. The population is approximately 1 billion people, 200 to 250 million are considered middle class, and the remaining 750 million are in the transitional and rural sectors. (Cateora and Graham, 2007). This indicates that the bottom of the pyramid (BOP) is a huge potential market for Fair & Lovely, which HLL needs to be a part of to make sure to attract and retain loyal customers as well as keeping distance from the competitors by focusing on BOP. As described earlier, the essential part of being successful in India is the correct use of the marketing promotion.

To expand the Fair & Lovely product brand non-traditional methods are needed. The culture differences where white skin is associated with beauty, which means that Fair & Lovely has a high “emotional selling proposition” value that needs to be a branding parameter that has to be communicated. Focus on cooperate social responsibilities are a way of building up and keeping relationships with the customer, government, and other nongovernmental organizations
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