Fairness Creams

PROJECT REPORT ON

FAIRNESS-CREAMS (Middle-end of the market)

SUBMITTED BY:

Tavish-sharma (P.G.D.A.M-1

ST

SEM.)

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Index of content

1.Executive summary. 2.Objective. 3.Methodology. 4.Data collected. 5.Interpretation of data collected. 6.Suggestion for improvement. 7.Conclusion. 8.Appendix.

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EXECUTIVE SUMMARY Fairness creams have become a vital product for the Indian FMCG companies in increasing their overall sales due to the importance given by Indian consumers towards fairness. As India is a country known for its diverse consumers in different parts of the country preferring different brands. Hence, this report aims to identify the brand preference of consumers towards fairness creams. The questioner also examines the factors influencing consumers in preferring various brands of fairness creams. The data was collected in KOTA city of RAJASTHAN, India among 150 survey respondents. The market size for fairness cream in India was estimated to be Rs.800 crore. The market growth rate ranges between 15 – 20% on a year-to-year basis. The market of fairness cream is wide in India as India is a country known for its diversity different brands are used in different parts of the country. The brands which are very successful in northern part of the country may not find a place in South India Similarly some brands are successful in rural areas and tier II cities whereas not in cities and metros. Here arises the need for a study on brand preference. This report includes the marketing mix, the factors influencing, consumers buying decision, the key findings of the product category, suggestions for improvement in the present scenario. The classification of the product on different parameters according to the customer.

The market especially in context with females The factors influencing brand preference for fairness creams. • The business environment factor affecting the product category. • To find out the brand preference for fairness creams. • •

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Objective of the project. • To study the market especially in context with females.- To analyze the market of the fairness creams in India. As first of all concept of fairness cream was introduce especially for the ladies basically, it is a impact of socio-cultural environment as preference is given to a fair bride. To find out that is market of fairness cream is limited to females/teenagers in the country or it has an ability to expend. Now in India fairness creams for men are also available in the market. To find in which segment the market is wide survey was done. • To study the factors influencing brand preference for fairness creams.-Firm’s marketing effort. -Socio-cultural environment. -Psychological field. • To study the business environment factor affecting the product category. General environment. -Socio-cultural environment. -Legal environment. -Technological environment. Specific environment -Customers -Competitors -Marketing intermediaries • To find out the brand preference for fairness creams.

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Methodology •

Primary data: The primary data was collected through a interview of Mr. Jai Jaimen sales officer of elder Parma. Survey was carried out at v-mart. •

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The survey was conducted at v-mart Kota in Rajasthan the main reason for choosing v-mart for survey is its demographic outlook (which includes both educated and uneducated, people) consumers of various age groups have been conducted with the research survey. Research instrument used was questioner in addition, it comprises both open and close-ended questions.

Secondary data: (a) Internet (b) Magazines (c) E-media (d) Books of P.G.D.A.M.

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Data Collected • Marketing mix of the product category. • Product.- F.M.C.G.product of personal care.

make-up 13% sunscreen 20%

fragnance 25%

personal care 42%

fragnance personal care sun-screen make-up

-Price.- Factors on which price depends. -Place.- distribution channel of the product. -Promotion.- Media, hoardings.

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•

Factors affecting consumer buying decision. -Firm’s marketing effort.

Product.-: Table no.1- Classification of fairness cream users based on Annual Income Annual income of customers More then 1lakh Less then 1lakh

No. of individuals

% of individuals

60 90

40 60

Price-: The only variable of the marketing mix which gives revenue to the company. And major factor which influences the customer buying decision helps in promotion of the product. Place-: Long ends distribution channel for better availability as well as promotion of the product takes place indirectly through the distribution channel.

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Promotion-; The way in which company motivate their targeted customers for buying their products.

Other Sources of Promotion

Print-media

Promotion of the products E-media

Promotional Offers

Retailers: point of purchase

Event Sponsorship

\ Table no. 2 Factors influencing brand preferences Factors Fairness Sunscreen Fragrance Total

No. of Respondents 69 42 39 150

% of Respondents 46 28 26

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Table no.3Source of Awareness for fairness creams Source of Awareness Friends and/or relatives Family members Retailers recommendation Television Commercials (TV’s) Newspaper Ads Magazine Ads Total

No. of Respondents 13 15 4 80 8 30 150

% of Respondents 8.67 10 2.67 53.33 5.33 20

-Socio cultural environment. >Social-class The classes on which a company segments its customer in terms of social class this segmentation of the product helps in generating the marketing strategy of the product. > cross culture The impact of cross culture over the market is that the customer of the fairness creams now more focused on their personality & due to this cross culture effect customers are more concentrate over their skin rather then complexion.

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-Psychological field Why there is a need for fair skin ?..?..?

To look attractive

Else not looking good

Else people start suffering from inferiority complex

Women are attracted

It affects our confidence

CONFIDENCE

PRIDE & CONFIDENCE

SELF ESTEEM

• Business environment -.General environment. >Socio-cultural environment. >Legal environment. >Technological environment.

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-Specific environment >Customers Table no.4 classification based on age Age Less than 25 25 – 35 35 – 45 More than 45 Total

No. of Respondents 45 64 17 24 150

% of Respondents 30 42.67 11.33 16

No. of Respondents 35 115 150

% of Respondents 23.33 76.67

No. of Respondents 86 52 6 2 4 150

% of Respondents 57.33 34.67 4 1.33 2.67

Table no.5Classification based on sex

Sex Male Female Total

Table.no.6 classifications based on education Education School Under graduation Post graduation Professional Diploma Total

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>Competitors Creams Fair & lovely Vicco Fair-one Fair-ever Himani

No.of respondents 45 18 30 30 27

% of respondents 30% 12% 20% 20% 18%

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Interpretation of data collected. •

Marketing mix-:

-Product – Fairness creams Fairness creams constitute a consistent proportion of income for the FMCG companies in India. As most of the Indians are very much bothered about their colour complexion, the fairness creams enjoy very good market growth rate when compared with other related product categories. As Fairness, creams have become a vital product for the Indian FMCG companies in increasing their overall sales due to the importance given by Indian consumers towards fairness. As India is a country known for its diversity different consumers from different parts of the country prefer different brands. The market size for fairness cream in India was estimated to be Rs.800 crore. The market growth rate ranges between 15 – 20% on a year-to-year basis. The leading players in the market include Hindustan Lever Ltd., (HLL's) 'Fair & Lovely' with 76 percent of the market share and Cavin Kare's 'Fairever' with 15 percent of the market share. Other important players like Godrej's 'Fairglow', himami's 'Fair and Handsome', Vicco and Himalaya share the rest of the market share. It has been estimated that males constitute 20 percent of the total sales for fairness creams in India. The existing players are focusing upon improving the quality and ingredients and new players are invading the Indian market. As India is a country known for its diversity, different brands are used in different parts of the country. The brands, which are very successful in northern part of the country, may not find a place in South India. Similarly some brands are successful in rural areas and tier II cities whereas not in cities and metros. The market of fairness creams is divided in three segments every segment has its own marketing strategy, prising strategy, promoting styles.

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Segment of fairness creams -The upper end Includes customers who are very much sensitivity for their skin can offer any price of satisfaction. Exclusive customers & expensive prices are here in the upper end of fairness cream market. >Olay >lakme >Nivia The upper end also includes premium pricing medicated creams, skin tonners, skin repairing treatment & anti age solutions in the market of fairness creams. Face a limited competition because it is the most expensive market segment of fairness cream. -The middle end Includes customers who are sensitive towards skin but not expend much on personal/skin care & they can offer a limited price for product. this segment of fairness cream market is also known as middle class market as the targeted people/customers are mainly of middle class. >Fair & lovely >Shahnaz hussain’s fair one >Vicco >Ponds >Himani >Fairever The middle end includes cost + profit pricing The middle end faces competition more than upper end as it is not a expensive segment & if a customer dissatisfied he immediately switch over to the other option for gaining quality. -The lower end Includes the sachet, trial packs just to promote the actual product& to boost up the sales for earning profit it is a market that includes the scheme packs/trial packs of repudiated brands as well as duplicate products on the name of fake brands also exist in this segment. As it is for those customers who use product, just to try.

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The level of competition is much higher in the lower end then upper/middle end as this is the most inexpensive market segment it includes competitive pricing to get over the competitor’s edge.

Upper class Upper middle class

upper end

Middle class Lower middle class

middle end

Lower class

lower end

Classifying segments on basis of social class (Psychographic segmentation) •

Price In case of fairness creams price is that marketing mix element which changes faster then other elements, in response to changes in the market environment. Price of the fairness creams depends upon-: >Prices of the competitors product. It is necessary to analyse what the competitor is offering in what price to stand in the market as base price of the product is affected by the base price of the competitor’s price. >Estimated demand for the product. >Target segment’s ability and willingness to pay. The perceived value or the price is as per the customer. As marketers set up a price after finding out what is the perceived value of the product among the target customers. After examine the customer opinion what is the value customers are ready to pay for the benefits they desire. >Distribution channel. As channel go wider price rise.

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Price varies in fairness creams as per the market segments as-: >Upper end-Includes premium pricing, as the product is unique or offers some exclusive benefits the price set high that reflects the products quality & exclusiveness. Premium pricing also helps in promoting fairness creams of this particular segment. >Middle end- The middle end includes cost + profit pricing due to competition. >Lower end- Includes competitive pricing to get over the competitor’s edge.

Cost of production of company(acc. to the product) Price of competitor’s product

High-end

Estimated demand for the product

middle-end

Target segment ability & willingness to pay.

lower-end

Price differentiation according to the segment’s demand. Price classification

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•

Place It is the distribution channel of the company through which it makes the product available to customer. Fairness creams include indirect selling

MANUFACTURE

DISTRIBUTER

RETAILER

CUSTOMER/CONSUMERS

Distribution channel of Fairness creams

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Promotion Media: Hoardings, Print-media-: Fairness creams of all the segments are promoted basically through hoardings & sky hoardings to make the people aware about the product & target the desired customers being promoted their product. Mainly this kind of promotion through print & media is a paid form of promoting the product among customers and majorly used in the middle & upper end segments of the market. Retailers: Point of purchase.-: When a customer while evaluating options at store ask to retailer about his point of purchase that what he should have to buy which gives him the desired satisfaction in the price which he is ready to pay. Promotional offers-: The offers which companies offers to customers to promote their products on the basis of -:  Incentives & gifts.  Discounts.  Emotional  Cultural.

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Factors influencing consumer-buying decision. Firms marketing effort-: The effort done by a company to influence the consumer buying decision is known as firms marketing effort. Through their marketing Mix’s

   

Products. Price Place Promotion.

>Products-; Fairness creams has a major market because of the various factors the first of all is demand & need of the product as one who has board of his dark complexion has a solution of it in form of the product (fairness cream).

Table no.1- Classification of fairness cream users based on Annual Income

100 90 80 70 60 50 40 30 20 10 0

More then 1lakh Less then 1lakh

No. of individuals

% of individuals

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Interpretation of table no.-1 From the above table it can be inferred that around 85 percent of the fairness cream users have an annual income of less than Rs.1 lakh. Table no.2- Factors influencing brand preference 160 140 120 100 no. of res pondents

80

% of respondents

60 40 20 0 fairness

fragnance

sunscreen

total

Interpretation of table no-2. It can be inferred from the above table that nearly 50 percent of the respondents use fairness creams in order to get 'fairness' Table no.3- Source of Awareness for fairness creams

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Newspaper Ads

recommendation

Retailers

relatives

No. of Respondents Friends and/or

90 80 70 60 50 40 30 20 10 0

% of Respondents

Interpretation of table no-3. From the above table it can be inferred that more than 50 percent of the respondents are aware of fairness creams through TVCs. >Price-: As we talk about the price of fairness creams it totally depends upon the target segment ability & willingness to pay but as a consumer goes to a shop and ask for the range of the particular product category he will definitely compare the benefits & price because he decides which product is giving him the best acc. to his needs in a desired price . If he find two/many products giving the same benefits in diff. prices he is only going to buy that product whose price is suitable for him. >Place-: Better accessibility of the product also helps in making a d4ecision by the customer As if a consumer want to use a product of any company he must have an option of availability of the product around & it is only happen when the distribution of the product is strong to meet the requirements of the customer. >Promotion In today’s market condition competition is very tough & company cant just convince the customer to buy their product .all that a company can do is to just make the consumer aware about the product .And to make the consumer motivate to buy their product by

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promotining their product by keeping the needs of customers in mind basically companies promote their product -: >With the help of film stars company tries to motivate customers psychologically. >With the help of hoardings companies make customer aware about their products . > Through event sponsorships companies try to maintain their customer relationship as well as try to promote there products. •

>Business environment factor affecting the product category.

Socio-cultural environment. As every business in the country has to face the cultural conditions of the country these conditions also decide the future of the products as in India due to cultural environment the product is getting advantage because in Indian culture there is a tradition of having fair bride. Legal environment-: It includes the rules & regulations that are established by the government of a particular country regarding the particular product as in India it is banned to use bleach & skin hazardous elements & chemicals ion fairness creams. Technological environment-: The company has latest technology & and skilled machineries to meet the requirements of customers. The latest packaging techniques purifiers & technical skilled labor.

>Specific environment-: •

Customers Table no.4-classification based on age.

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70 60 50 40 30 20 10 0

64 45

42.67

30 17 11.33 Less than 25

25 – 35

No. of Respondents

35 – 45

24 16

M ore than 45

% of Respondents

Interpretation of table no-4. From the above table it can be inferred that most of the respondents who use fairness creams are youngsters as it was clear from the table that 42.67 percent of them belong to the age group of '25 – 35' and 30 percent of them belong to the age group of 'Less than 25' Table no.5-classification based on sex.

140 120 100 80 60 40

Female, No. of Responde nts Male, No. of Responde nts

Female, % of Responde nts Male, % of Responde nts

Male Female

20 0 No. of Respondents

% of Respondents

Interpretation of table no-5

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From the above table it can be inferred that more than 75 percent of the respondents who use fairness creams were 'females'. Table no.6classifications based on education.

No. of Respondents

Diploma

graduation

Post

% of Respondents School

100 90 80 70 60 50 40 30 20 10 0

Interpretation of table no-6 From the above table it can be inferred that nearly 60 percent of the fairness cream users have school level education. It can also be inferred that nearly 35 percent of them have under graduation.

>Competitors-:

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HIMANI 18%

fair & lovely 30%

VICCO 12%

FAIR-ONE 20%

FAIR-EVER 20%

To get an edge over the competitors the every companies are putting their efforts they analyse the nature of competition prevailing in the market. Based on this analysis, a company needs to design its competitive marketing strategy to position the product(s) strongly against those of the competitors in the mind of customers. In present there are five major players in the middle-end market with different marketing strategy & a common objective is to get over the competitor’s edge

SUGGESTIONS FOR IMPROVEMENT As the market has been dominated by few players a new entrant or an existing player interested in improving the market share has to focus on 'fairness' as HLL's USP – Fairness in Six Weeks has worked better for it. The companies have to give importance for TVCs as most of the consumers were remembering the ad of Fair & Lovely television ad and the recent Fairever celebrity ad. Awareness can easily be created with these kinds of celebrity ad appeals. 25

 Use of natural ingredients. Use of natural ingredients must be there to minimize the side effects as the more use of vit-b12 in fairness cream causes skin lesions.  Fastly impactive.- The product must be fastly impactive as if the customer got dissatisfied from the product he immediately switch over to the another product as he has got multiple other product in the market.

 Value for money.

CONCLUSION Fairness creams constitute a consistent proportion of income for the FMCG companies in India. As most of the Indians are very much bothered about their complexion the fairness creams enjoy very good market growth rate when compared with other related product categories. As Fair & Lovely's USP has done wonders, other players in the market can also follow their philosophy of 'fairness'. It is not sufficient if a company has the right product with right quality. It has to be communicated properly to the target audience. Hence, TVCs which were widely remembered and recognized by Indian

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consumers for fairness creams can be made use for creating the awareness for various brands of fairness creams.

APPENDIX QUESTIONERE FOR THE SURVEY • Are you a user of fairness cream?

Yes

No

• You are using fairness cream since? 1-year 2-years More then-5years 27

• Gender? Male Female • You are using fairness cream as/for? Fragrance Sunscreen Make-up • What makes you aware about fairness cream? Friends and/or relatives Family members Retailer’s recommendation Television Commercials (TVCs)

Newspaper Ads Magazine Ads

• Which fairness cream would you like to prefer? Fair & lovely Vicco Fair-one Fair-ever Himani

• What is your age? Less than 25 25 – 35 35 – 45 More than 45

• Your academic qualification is? School Under graduation Post graduation Professional Diploma

• Which promotional offering by the fairness creams companies is better then others? 28

Incentives & gifts. Discounts. Emotional Basis Cultural Basis .

• What is your annual income? More then 1lakh. Less then 1lakh

Thank-you for your active participation.

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