A MARKET REPORT ON “FAIRNESS CREAM” Submitted to: Prof. ADITI NAIDU Prof. RASHMI FARKIYA Submitted by: Er. MAYANK JAIN MBA 2nd SEM Section “A”

INTRODUCTION Fairness creams to improve the complexion of person, irrespective of whether they have dark or fair complexion. In the early 1976 with the entry of Hindustan liver ltd. Fair & Lovely. The fairness cream market became one of the fastest growing segments in India. Today, if there are more brands in the Indian market, it’s largely due to demand.

INTRODUCTION 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.

INTRODUCTION 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 includes Hindustan Lever Ltd. (HLL) 'Fair & Lovely' and Cavin Kare's 'Fairever‘.

KEY PLAYER’S OF MARKET FOR WOMEN FOR MEN L’Oreal Paris Fair n Lovely Fairever Ponds Revlon Emami fairness cream Olay Garnier Light FOR MEN Emami “fair and handsome” Garnier men Menz Active Fair one MEN

L'Oréal Paris L’Oreal made its debut in India in 1991 with the launch of Ultra Doux shampoo from Laboratories Garnier. L’Oreal expanded rapidly since it introduced its L’Oreal Excellence various lines of products. A company known for consistently launching new products every few years, French cosmetics major L'Oréal recorded a turnover of Rs 600 crore (Rs 6 billion), and a growth of nearly 40 per cent, in India in 2009.

L'Oréal Paris One of the most important factors that worked for L'Oréal is its high spend on advertising. Globally, L'Oréal spends 30.7 per cent of its worldwide turnover on advertising and promotion and 3 per cent on research and development. In India, it is the fifth largest media spender in the industry.

Marketing Strategy L’Oreal, a simple strategy- “Introduce new, different and better products.” L’Oreal brands were more expensive than an average fast moving consumer good (FMCG) here in India, yet they found a market because They were offering the right value for money"

Fair n lovely World's number 1 fairness cream Fair & Lovely leads the fairness creams pack with an estimated market share of 76 percent. Fair n lovely has seen a 17 per cent growth in the Fairness cream category during the quarter ended December 2009. Fair n lovely are available under the brands Multivitamin, Skin Clarity Aurvedic, Active Sun block Cream.

Fair n lovely Also being one of the most inflation-resistant categories in the fast moving consumer goods sector, Fair n lovely plans to launch more products periodically in this space in the coming months, said Press.

Fair and lovely Menz Active Menz Active appears men account for about 25 percent of fairness cream use across the country. Leading men cream company in 2009. Main competitor of the market is Emami product “Fair & handsome” with 22 percent market share.

Marketing strategy Mainly television and a few press new ads are launch. the commercials were run on mainline TV channels like Star, Sony and Zee TV. The primary focus is to increase penetration of existing products in rural and semi-urban areas.

POND’S - white beauty The company has set 15 per cent of its total turnover as its ad budget. It has been releasing ads from its international catalogue. Ponds sharing with market 7 percent. Mainly the ponds dealing with ponds moisturizers in market and it’s strategy of the up coming years of ponds dealing with new beauty segment products.

Fairever Natural Fairever is one of the most successful fairness creams in the country. CavinKare's 'Fairever' with 15 percent of the market share.  CavinKare’s ‘Fairever’, which occupies the second spot, does better with women consumers. Smart marketing and clear product positioning ensured CavinKare's growth.

Garnier Light Garnier comes with new concept of tone with natural skin with there product ‘Garnier Light’ Garnier share the total market of fairness cream is 2-3 percent of all over market. In the Fairness cream segment, Garnier operates in the mid-price and luxury segment. The whole garnier is sharing 20 per cent market share.

Garnier MEN Garnier the international skin and hair care expert is launching Garnier MEN, a new range of products designed specifically for men. Power Light is Garnier’s first launch in the men grooming category. Brand image of Garnier, Garnier Men aims to capture at least 5% of market share.

Emami - Naturally Fair Emami naturally fair is comes under the luxury segment because of it’s new concept of Unique Triple Action. The company plans to add 25,000 outlets to its existing 25,000 distribution outlets to build upon its mass products portfolio. The total spends for only fairness cream will be Rs 5 crore for 2007-08 and in 2009 investment up to Rs 7 crore.

Emami – Fair & Handsome Emami fair and Handsome is targeted at young urban men aged 15- 35. The brand was launched with more promotion across visual media. It’s an good option for the new age man who is conscious about his looks & doesn't feel shy about enhancing his looks. Fair and Handsome is worth Rs 45 Crore now commanding a market share of over 30-40% in the segment.

SECTOR WISE EVALUATION CUSTOMER WILLING TO BUY IN PRICE RANGE OF 300 TO 500 RS PRODUCT NAME WEIGHT PRICE RS EFFECT AFTER USE FRAGNANCE USP RATING EMAMI FAIRNESS CREAM 50g 350 4 weeks GOOD Vitamin b3 3 OLAY White radiance 40g. 399 14 days No UVA+UVB Protection L’OREAL paris 50g. Excel lance SPF 15 2 REVLON 299 Vitamin A & E 4 19

SECTOR WISE EVALUATION CUSTOMER WILLING TO BUY IN PRICE RANGE OF 70 TO 125 RS PRODUCT NAME WEIGHT PRICE RS EFFECT AFTER USE FRAGNANCE USP RATING FAIR & LOVELY FAIRNESS CREAM 50g 70 7 days EXECLLANCE Vitamin b3,E,C,A 1 Pond’s white beauty 40g. 125 14 days UVA+UVB 2 GARNIER LIGHT BEAUTY 50g. GOOD SPF 15 3 FAIREVER AVE. Vitamin b3 4 20

Market Share of Fairness Creams

Men v/s Women Market Share

Conclusion 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 Fair & Lovely's USP has done wonders, other players in the market can also follow their philosophy of 'fairness’. It is sufficient if a company has the right product with right quality.

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