FAIRNESS CREAMS WAR

PRESENTED BY :PRATEEK AGARWAL

SWATI RAI ROHIT KUMAR

CONTENTSExecutive summaryBackgroundCompetitiveness of the fairness

cream marketBeneficiariesEthical issuesConclusion.

Executive summary

The case study is about the fairness cream and soap market in which three major companies HLL, CAVINKARE and GODREJ have been shown having a ferocious combat among themselves.

Different soaps and creams were launched by these major players in consecutive has been shown resulted in having jolting in there market shares

Also various marketing strategies followed by them to increase their brand value like increase in volume and price reduction.

Several promotional tools followed by companies such as social fundas in colleges, introducing websites and local train has shown.

Emami, Ayurvedic, Paras, Amway etc are the other rivals which affect the market of these three majors.

The case study has been ended by saying that “In India, beauty seemed to be associated with fairness more than anything else” which shows the fairy days to this market.

BACKGROUND

HLL, a 51.6% subsidiary of Unilever Plc, was the largest FMCG company in India, with a turnover of Rs114 billion in 2000. The company's business ranged from personal and household care products to foods, beverages, specialty chemicals and animal feeds.

 In 1983, C.K. Ranganathan (Ranganathan) established Chik India, with an investment of Rs.15000. Chik India was later renamed Beauty Cosmetics, and then went public in 1991. In 1998, the company was renamed CavinKare Ltd.

Godrej Soaps' major product lines were toilet soaps and detergents, industrial chemicals, cosmetics and men's toiletries. It had interests in several other businesses such as real estate, agro produce, etc through its subsidiaries. In April 2001, the consumer goods business of Godrej Soaps was demerged into a new company. The chemicals division remained with Godrej Soaps, with the new name, Godrej Industries.

In 1975 HLL launched first fairness cream under F&L which resulted in loss the position of ponds and lakme.

The dominance of HLL F&L continued till 1988, when CAVINKARE launched its Fairever cream in direct competition with F&L. After this in 1999 HLL offered Rs. 5 off on F&L. This was followed by 20% extra volume for the same price, which was later increased to 50% extra volume.

Major players in the fairness product market

COMPETITIVENESS OF THE FAIRNESS CREAM

MARKET

MAJOR COMPETITORS

Fair&lovely(HLL)

Fairever(CAVINCARE)

Fairglow(GODREG)

HLL(FAIR & LOVELY) In 1975 HLL launched first fairness cream under F&L,

which resulted in lost the position of Ponds and Lakme. Although the dominance of HLL’s- F&L continued till 1998 until CevinKare launced its Fairever cream. HLL offered 50% extra volume for the same price.

In April 2000, HLL introduce Lux screen care soap which was only able to collect 0.5% share by there 2000 end compare to mother brand Lux had a share of 14%. Due to this the brand value of HLL F&L was decrease.

In 2001, HLL followed Godrej’s footstep’s and launched Fair & lovely fairness soap.

CAVINKARE ( FAIREVER) In 1998 CavinKare launched Fairever fairness cream

which resulted in the increase of their market share from 1.23% to 8.13%.

Due to CavinKare growth many companies entered into the Indian fairness cream market and forced the existing products like Emami naturally & F&L to promote with renewed energy.

In 2001, CavinKare fairness cream with saffron acquired 15% share which resulted to fall F&L’s shares from 93% to 76%.

GODREJ (FAIRGLOW) In December 1999, Godrej soaps created a new product

category- fairness soaps by lunching its Fairglow fairness soap which resulted in the sales over Rs. 700 million in the first year.

In 2000, Godrej extended the brand by launching Fairglow fairness cream which resulted in making it the third largest fairness cream brand, with a 4% share in Rs. 6 billion fairness cream market in India.

In early 2001, Godrej Soaps also launched its FairGlow cream in an affordable pouch pack, which resulted in the increase in its brand value and also affect the market of other major competitors.

BENEFICIARIES

According to the case, the ultimate beneficiaries are consumers only

due to the following reasons:

1. Offering the extra volume on Fair&lovely by HLL at the same prices benefits the consumer.

2. Due to reduction in the prices of existing product consumer intended to pay less.

3. Due to the availability of pouches & small sachet by Godrej made people convenience to use and easy to buy.

4. In August 2000, Godrej launched the 'FairGlow Express,' the first branded local train in India, in Mumbai, in partnership with Western Railways.

5. Due to the competition consumers have different choices.

ETHICAL ISSUES

There is no scientific backing for the manufacturers claims that there product enhance fairness prevented darkening of the skin or removed blemishes.

In human skin, the amount of melanin cannot be reduced by applying fairness cream, bathing with sun blocking soaps or using fairness talcum.

Even then the sales of fairness product continued to increase. Here the market is big and the potential is even bigger. So in India beauty seemed to be associated with fairness more than anything else.

CONCLUSIONThis case shows the conclusion that in India the fairness cream

market has better prospectus to rise in the future. As many firms

including HLL, CavinKare, and GODREJ are trying to capture Indian

consumers interest.

The statement given by Dr. R.K Pandhi HOD of dermatology said “ no

externally applied cream can change the screen colour, indeed the

amount of melanin in an individual skin cannot be reduced by applying

fairness creams.” although which didn’t effect the Indian consumers.

The market is having worth about Rs. 6 billion around and kept on

increasing which shows the potential this market carries as in India,

beauty seemed to be associated with fairness more than anything else.