Case Study :: Fair & Lovely
Group-2 (MM) PGEXP-2012-14
Fairness and Color in Indian History
It was way back in the 1970s, when Hindustan Lever Ltd (HLL) launched its first version of FAL. At that time, the market was dominated by the cold cream manufacturers, such as Ponds and Lakme (HLL was subsequently to acquire these firms). Before this, the 'fairness ' aspect of creams was not directly mentioned, though some products did advertise that they offered consumers protection from the sun, in the form of a sunscreen.
4P strategy of Marketing for the brand creation of the Fair & Lovely.
Broadly we can categorize this into 4 phase – Product Evolution phase, Promotion of brand phase,
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This prompted the market leader, HLL, which still dominated the market to take action. Wanting to check the growth of competitive brands by nipping them in the bud itself, HLL began to offer an extra 50 per cent grammage in its FAL pack. Nevertheless, FAL was losing ground both to other creams and Godrej 's fairness soaps. Perhaps the reason for the latter switch was that the consumer noticed soaps as being less harmful to the skin than cream.
HLL thus sensed the need to enhance its portfolio of soaps to include one with the attributes of enhancing skin complexion. The first attempt was made with the introduction of the Lux Skincare soap in May 2000.[] However, the product offered an anti-tan protection from the sun (with a sunscreen to protect the skin from harmful ultraviolet rays), rather than a promise to enhance complexion. Although this was Brand Category Extension strategy of Marketing yet the response from the market was not encouraging. HLL saw the need to change track and subsequently launched the Fair & Lovely Fairness Soap. This was intended as a premium product, with the intention to grow the top end of the market. This was Multi branding strategy of the Marketing.
The battle soon took an ugly turn. HLL filed a patent infringement suit against CavinKare, claiming that the company was using its patented fairness formula in its product without HLL 's
This stage entails a business’s product to begin to drop in sales, reduce in publicity and popularity, it begins to lose its appeal and competition becomes stiffer and bigger, therefore fewer units are sold.
The key for the marketer is to determine which stage is the most critical for his/her product.
The main purpose of this stage is to persuade customers to buy the product and retain the customers throughout the product life cycle. The growth stage is typically when competition develops. Competition can erode the company 's market share. Marketing efforts in the growth stage tend to focus on product differentiation and expanded distribution (Kerin, Berkowitz, Hartley & Rudelius, 2006).
a concept that describes the stages a new product goes through from product concept to commercialization
The product life cycle is known as the procedure where a product is introduced to the market, expands in popularity,
As the consumer attitude gradually changes, people are more in favor of the natural and safe products in cosmetic market. Australia consumers are not exception. They respected green-added cosmetics, namely, they are increasingly in pursuit of natural, pollution-free cosmetics with no chemicals added. Consequently, the products of chemical-free will gain competitive advantages in Australian cosmetic market to meet the consumer’s psychological needs for green, organic skin care products.
Company conducted a survey in order to determine the segmentation of people who would like to prefer fragrance and moisturizing cream in the skin care products they use.
Main competitors (Oil of Olay, Pond's and, Nivea) were situated in the HBA aisles of the stores while Plenitude products were merchandised in point of sales in the cosmetics' aisles next to L'Oreal cosmetics where the consumer is looking for cosmetics not skin care. The skin care consumer is in the HBA aisles!
Product, Price, Place and Promotion also commonly known as the 4P’s are the major factors or tools with which a firm or an organisation operates in the market by offering a superior value proposition to its clients and customers and thus earning value back from them in return to achieve the objectives of its shareholders. These 4P’s are combined together to form the marketing mix of a firm.
Mariotti & Glackin (2013) provide that development of marketing strategy and competitive advantage is from the "Four P's". The "Four P's" include product, price, promotion, and place. This paper further outlines each of the "Four P's". Mariotti& Glackin (2013) recommend continually referring to the mission statement and vision statement while developing the marketing strategy. This reference helps to build the marketing strategy and form the core competency for the business. The first part of the business plan, the mission and vision statements, are stated below:
As seen in exhibit 2 as well, the company’s unit share and dollar share steadily increased minimally from 2005 to 2007. Unit share increased from 21% to 21.3%, while dollar share increased from 15.7% to 16.1%. Similarly, US sales increased in HPL’s Target Markets for skin care, oral hygiene, personal hygiene, and hand and body care from 2003 to 2007, making the package more appealing to the company. With HPL’s sales into its retail channels increasing from 2003 to 2007, in addition to the increase in sales, label shares, and such aspects as revenue, it is evident that the company’s financial performance for the past few years has been favorable.
The quest for beauty is an endless endeavour at all times. Despite the old saying cautioning us that beauty is only skin deep, billions of dollars is spent on skin care products every year for men and women, young and old alike. In this multi-million-dollar industry, every company tries hard to maximize their profit. One of the most common methods they apply is market segmentation.
This case describes how SK-II which is a fast-growing skin care product is becoming very popular with a price to match its performance. After being introduced in Hong Kong and in Taiwan, P&G believes that this brand has a strong global potential. At the conclusion of this case, the company is left thinking whether or not to grow into both the European and the Chinese market.
Neutrogena uses a slow, more expensive manufacturing process to mold its fragile soap. In choosing this position, Neutrogena said no to the deodorants and skin softeners that many customers desire in their soap. It gave up the large-volume potential of selling through supermarkets and using price promotions. It sacrificed manufacturing efficiencies to achieve the soap’s desired attributes. (trade-offs that protected the company from imitators)
services, places, organizations, and ideas. Product can be divided by four different levels such as core product, facilitating products, supporting products and augmented products. As example I chose Apple company and their core product is an IPhone. All of us know that Apple has kind of augmented strategy. Example is their accessibility of the product. Let’s assume my theory. I’m pretty sure that you know at least one person who told you that he or she is going to buy new version of iPhone when it will come to the store. Each year “Apple” produces and develops a new version of IPhone and presents it in autumn. They use limited accessibility in the initial