EMAMI’S FAIR AND HANDSOMETHE ENTIRE STORY

LBSIM, DELHI

1st Year

Rinky Sachdeva

Rohit Jain

Atul Mathur

Munish Mittal

Aditya Goel

Satyam K. Saxena

2013

INTRODUCTION Set up in 1974 with a vision of providing better life to

customers in personal and health care.

Company has its headquarter in Kolkata.

For three decades brand Emami has been identified with vanishing cream and talcom powder.

Later grew and ventured into Real Estate,Retailing Paper and Writing Instruments.

EMAMIHIMANI

NAVRATNA

BORO-PLUS

FAST RELIEF

SONA-CHANDI

COMPANY INTRODUCING NEW PRODUCTS Boroplus Antiseptic Cream – 1982

Vanishing cream and Powder- 90’s

Navratna Hair Oil – 2000

Maduri Beauty secret Range – 2002

And finally, the world’s first fairness cream for men in 2005

EMAMI FAIR & HANDSOME

The company launched this cream in june 2005,in collaboration with Activor corporation of the United States in Andhra Pradesh.

Aimed to gain 20% market share of men’s fairness cream market by 2005-06 and reach through 30,000 outlets.

In 2006,product was available at 9 lakh outlets.

Promotional Strategy

Display of products across 5000 outlets,

Display-cum-availability in 25000 outlets and

Promotions on school and college campuses.

From media budget of Rs 2.5 Crore, 70% was spent on TV.

The company also planned to introduce it in premium saloons.

GROWTH RATE OF EMAMI VS FMCG SECTOR

Q1 Q2 Q3 Q40.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

FMCG Emami

OPPORTUNITY IDENTIFICATION

It has been observed that males are becoming more sensitive towards skin care products especially product related to fair skin.

Due to unavailability, men started using women’s fairness creams like fair & lovely fairness cream etc.

A Fairness creams for men was completely unexplored opportunity due to following reasons:-

Closer to reality, male Skin was more exposed to sun’s UV rays, five times more exposed to pollution, twice more exposed to stress and considerably more abused by usage of shaving blade than women’s skin.

Contd…

A Fairness creams for men was completely unexplored opportunity due to following reasons:-

Indian men spent more time on grooming than ever before as compared to women.

There was an increasing incidence of the fact that active earners linked presentability with the career success: the high earning 21-40 age group across men accounted for 71 per cent of customers visiting kaya Skin Care Clinic.

PRODUCT DEVELOPMENT AND ITS BENEFITS Emami in collaboration with Activor Corporation had created a

unique fairness cream in the name of ‘Emami’s Fair & Handsome’ fairness cream for men with a breakthrough of peptide complex patented in United States.

Following are the benefits which are emphasized in the promotional campaign:-

Peptide works on the collagen structure of male skin and improves the skin texture and fairness in just four weeks.

Active ingredients regulate the production and melanin(the pigment that determines the skin’s brown colour).

Natural sunscreen protects against the UV rays. Peptide in combination with vetiver and rose water makes the skin

fair and fresh with a pleasant cooling sensation.

COMPARATIVE ATTRIBUTES OF MEN’s FAIRNESS CREAMS

Emami’s Fair & Handsome

HLL’s Menz Active

Launched December 2005 2006

Campaign Hi Handsome...Hi Handsome

Change your story

Attributes listed on pack Vitamin B3 along with Zinc Oxide, Sun Protection, Non-Sticky,Mint essential for cooling, Smoothness,Reduce after shave irritation

Deep Penetration fairness with Vitamin B3, Long lasting freshness with 100 per cent more sunscreen, Smoothness with silicon conditioners,Economical to buy,Mint essential for cooling

Present Market Share(2012-2013)

58 %(total market of 329 crore of mens fairness cream)

Price(Rs) Rs 100 for 60 gm Rs 80 for 50 g

Sale in 2012 Rs 190 crore

MARKET EXPANSION STRATEGY

After capturing a sizable market and goodwill of the urban

consumer market, Emami planned to cover remote villages

The company tied up with P&T department for distribution of its

products through almost 5000 post offices across Maharashtra and

had planned to reach out all the 1.05 lakh post offices across India.

Emami also planned to use ITC e-choupal outlets in UP and MP, and

also used army’s canteens to enhance the distribution of its

product.

REPORT ON SELECTED ASPECTS OF THE FAIRNESS CREAM INDUSTRY

Mr Pankaj Mehta, Brand Manager of the Emami group requested his colleague, Jigar, a management trainee to prepare a report on the fairness cream and below are the findings of the same:-

1)Size of the Industry:-

The Indian FMCG market is valued at US $ 1 billion( 45000 crore) and is growing at 7-8 percent per annum. About 20 per cent consumers of Fair & Lovely were men. Given that sales of Fair & Lovely were estimated at Rs 500 crore in 2005, men contributed Rs 100 crore.

2)Growth:-

The fairness cream market has been growing at 25 per cent per annum compared to overall cosmetic market of 15 per cent per annum. From Rs 384 crore in 1997-1998, the fairness product market jumped to Rs 558 crore in 1999-2000.

Contd…

3)Consumer Behavior:-

It is believed that there exist a marked preference for skin lightning and glow in India. Men, also have been using fairness creams meant for women and there felt a need in market to come up with fairness cream for men, who generally give the preferences to attributes such as freshness, control of itching after shave, sun protection, good smell etc.

North is the largest market followed by west then south and east.

Kerala, Gujarat and Bihar are the top three growing markets with Kerala growing by 40.37 %.

GEOGRAPHICAL DISTRIBUTION

East; 21%

West; 27%North ; 29%

South; 23%

Contribution To Turnover

EastWestNorth South

Source: Company, CSEC Research

SEGMENTATION OF FAIRNESS CREAM MARKET The Upper End: Garnier Nivea

Olay L’oreal

The Middle End: Fair & Lovely Ponds

Emami- Fair and HandsomeFairever

The Lower End Includes sachets, trail pack to promote the actual product

Duplicate products on the name of fake brands

COMPARISON OF FAIRNESS CREAM BRANDS The market size of the fairness cream products in India was

estimates to be 800 cr.

The market growth rate ranges between 15- 18% per year.

Fair & Lovely (HLL) has 76% market share. HLL also had fairness products under its lakme and Aviance brands.

Fairever (Cavinkare) has 11% market share.

Emami with 8% has market share.

Major Brands Fair & Lovely (HLL)

Fairever (Cavinkare)

Emami Fair Glow (Godrej)

Market Share 76% 11% 8% 4%

Product Extention

Fairness cold Cream, Soaps

Chik Fairee Gold Turmeric, natural fair, Fairand Handsome (Men), fair and teen (Girls), Fair and Ageless

Soaps, Cream

Price 50 gms Rs. 78 25 gms Rs. 28

50 gms Rs. 60 50 gms Rs. 70

Lauched First Time

1976 (Fair & Lovely)

1974 (Emami)2005 (Fair and Handsome)

Media Used for Promotion

TV, Print TV TV, Print TV

COMPARISON OF FAIRNESS CREAM BRANDS

ADVERTISING AND PROMOTION Emami is market leader in men’s fairness cream

segment with a market share of 61.3 %.

Company has recently launched ‘ zyada’ campaign with a new packing and positioning.

Company has spent INR 450 Mn for the advertisement of Fair and Handsome in FY 2013, which is 16% of the total advertisement spend and 24% of the Fair and Handsome sales.

FY 09 FY 10 FY 11 FY 12 FY 130%

5%

10%

15%

20%

25%

0

500

1000

1500

2000

2500

3000

14%16%

20% 20%22%

ADVERTISING AND PROMOTION

Dabur Emami HUL Marico Colgate0.00%

10.00%

20.00% 13.60%

16.40% 12.20

%11.20

%

15.50%

Advertisement Expense in per-centage of sales

SEGMENTATION OF YOUTH Early Youth (13-21 years)

Focus: Education and career

Spending Power: 1000-2000 per month

Brand preferences developed

Value for money

Unorganized market biggest shopping destination

Middle Youth (22-26 years) Focus: Career and relationships

Spending Power: 7000-40000 per month

Influenced by peer groups and work mates

As disposable income increased, brand value and quality is preferable over price.

Contd…

• Late Youth (30 years)– Focus: Career advancement and children– Spending Power: Reduces compared to middle

youth– Prefer a mix of luxury and functionality

Affordable pricing strategy for Early youth Trendy value proposition for Middle youth Fun and spirited products for Late youth

RURAL MARKET PENETRATION

Aggressive distribution expansion in the rural market to mitigate slowdown in the urban market.

Emami is expnding its rural distribution network through its project Swadesh.

Between FY 09 – 13, company has added 0.2 mn direct retail outlet taking the count to 0.6 mn and company plans to add 0.2 mn in next two years.

Directly stocking with retailers bypassing wholesalers. Currently the company derives 52 % of its domestic sales

from rural market.

CONTROVERSY FINDS IT’S WAY

Controversy surrounded on advertisements shown on TB by HLL as early as in 2000

A critical misinterpretation of one of the ads was: Sons, not daughters, are natural bread winners. A girl can only land a good job if she displays and improves her physical attributes

Setback by a report by AIIMS, New Delhi, which declared that “no externally applied cream can change colour”. It substantiated it’s report with valid medical reasons.

Hinted clearly that “claims of fairness creams are nonsensical propositions”

The then I&B minister instigated the National Congress for Women (NCW) for not raising it’s voice against commercials which projected women in a bad light

Contd… A commercial that showed a talented but dark girl winning a singing

competition after using a certain fairness product

A recent Fair and Handsome ad showed SRK telling the viewers that he became a superstar because he wanted more out of life and the cream helped him in realizing his dream

An online petition urging Shah Rukh Khan Emami to stop advertising fairness products garnered 7000+ signatures in first few days itself

Labelled “unfair” and “discriminatory” advertising

However, not an attack on brands or brand ambassadors, but on the toxic belief that only fair skin is beautiful

“

”THANK YOU!!

QUESTIONS?