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Melissa pennington stephanie del rosal jiang zhong alexzandria reasor adrienne krueger chelsea thieken i

india project

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Page 1: india project

Melissa pennington

stephanie del rosal

jiang zhong

alexzandria reasor

adrienne krueger

chelsea thieken india

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india

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country profile population prof i le age distribution pol it ical prof i le economic prof i le trends histor y cultural prof i le language geog raphy environment legal prof i lebrand profile fair & lovely overview parent company creative analysis ad samples cultural relevancesources

table of contents

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countryprofile

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population: 1,170,938,000popoulation density: 324/km2growth rate: 1.376%literacy rate: 61%infant mortality rate: 4.82 per 1000 births

population profile

world’s largest projected populations in 2050

population

©Rolf Schuttenhelm

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age distribution

©SJE Research: India

politicspresident: Pratibha D. Patilvice president: Mohammed Hamid Ansariprime minister: Manmohan Singhhome minister: P. Chidambaramminister of external Affairs: Pranab Muhkerjeeambassador to the US: Meera Shankarambassador to the UN: Hardeep Singh Puri

government officials political profilestructure: Federal Republicindependence: 15 August 1947values: Market-oriented economics, universal suffrage over the age of 18election process: Five-phase general election held every five years

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politicsIndia represents one of the largest democracies in the world (second to the US). Both the US and India are committed to political freedom protected by representative government. India is slowly working toward greater economic freedom. Over the past two decades, India has eased toward a more market-oriented economic philosophy. Reforms since 1991 include “liberal foreign investment and exchange regimes, industrial decontrol, reductions in tariffs and other trade barriers opening and modernization of the financial sector, significant adjustments in government monetary and fiscal poli-cies and more safeguards for intellectual property rights” (US Department of State).

“A poor, diverse country of more than 30 main languages and six main religions, India also has, in the Hindu caste system, a tradition of hierarchy seemingly at odds with a system of universal suf-frage” (Democracy in India 2009). Campaigns are dominated by personalities, money and, in some places, intimidation--according to an article in The Economist, nearly one quarter of parliamentary seats in India are taken by people who have faced criminal charges including rape, murder and kid-napping (Democracy in India 2009). Many of the appeals campaigning politicians use speak to the religious, linguistic or caste-based attributes of the voters. For instance, if a politician is a member of a relatively dominant religious faith, he may use this fact alone to swing votes in his favor. Propor-tionally speaking, the poor in India are much more likely to vote than are the rich.

indian national congress• India’s single largest party• Currently leads a coalition UPA government under Prime Minister Manmohan Singh• Known as an “antiquated dynastic machine” (Democracy in India 2009)• Party President: Sonia Gandhi• Long history of political dominance (US Department of State)

bhartiya janata party• Led by Shri Nitinn Gadkari• Holds second-largest number of seats in the Lok Sabha (lower house of the Parliament of India)• Known for its emphasis on Hinduism• Has been known for extreme violence against the large Muslim minority and the much less prom-

inent Christian community

communist party of india• One of four Communist and Marxist parties, which are united in a bloc called the “Left Front”• The four parties combined control 59 parliamentary seats

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economy“Economic growth is constrained by inadequate infrastructure, a cumbersome bureaucracy, corruption, labor market rigidities, regulatory and foreign investment controls, the ‘reservation of key products for small-scale industries, and high fiscal deficits” (US Department of State). The software industry is almost solely responsible for the modernization of India’s economy, and continues to rapidly expand.

The United States is India’s largest trading partner. The US imports textiles and ready-made garments, Internet-enabled services, agricultural and related products, gems and jewelry, leather products and chemicals. India imports diagnostic or lab reagents, aircraft and parts, advanced machinery, cotton, fertilizers, ferrous waste/scrap metal, and computer hardware (US Department of State). India is the world’s second largest producer of food next to China and has the potential of being the biggest with the food and agricultural sector (Indian Cultural Profile). However, “one-quarter of the world’s malnourished live in India, among them 40% of all Indian children under five” (Democracy in India 2009).

There’s a great deal of hype about the potential for business in India, especially e-commerce. An infographic completed by ReferralCandy, a referral marketing program, explains that India’s population alone cannot be sufficient support for this hype. E-commerce is an area that is projected to have exponential growth in coming years, provided that India’s population overcomes its low internet usage, low credit card penetration, low internet speeds and issues of fulfillment. Currently, India’s e-commerce market is only worth $10 billion, which is only 1/6 of the US market. What this means is that if the United States had the population of India, its market share in e-commerce would be valued at $500 billion.

©IMC

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trends

Because there is not a standard definition of what the middle class is in India, it is difficult to produce a definite number, but it is estimated that describes 30 million to 300 million people (roughly 30 percent) of the country’s population. This means that the majority of the population remains in the upper and lower classes. However, according to studies done in 2010 by Deutsche Bank, the “importance of the middle class lies in the fact that it is the fastest growing segment of the population” (pg. 1). This has many important implications. The growing middle class in India means an increase in the consumer market and business opportunities. As the middle class grows it should drive the overall growth in India. As the research explains, the “rising incomes lead to more consumption, which in turn leads to higher economic growth, then more employment opportunities and subsequently higher wages” (pg 4). Notably (as it relates to our product study) the beauty industry is also growing rapidly. According to an article by the India Brand Equity Foundation the beauty and hair industry is growing with a 35% compound annual growth rate (IBEF, 2011).

India has historically had great disparity between rural and urban regions. Many parts of India are metropolitan and industrialized and are some of the most advanced cities in the world; however, many parts of India have been and remain rural and underdeveloped. According to studies done by the World Bank Group, only 28% of the population lived in urban areas in 2002 meaning that 70% of the population lived in rural areas. Recently more and more of these rural areas are becoming urbanized. A McKinsey Quarterly article predicts that urbanization will occur in India at a speed that the country and likely the world has never seen. It states that “it took nearly 40 years for India’s urban population to rise by nearly 230 million; it will take only half that time to add the next 250 million.” What does this mean for India? Continued growth for the economy and the business market.

the rise of the middle class

urbanization

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trendsthe caste system

colonization and independence

history

India has a very rich history. As such a large country, different regions have developed in different ways. One of the most fascinating parts of India’s history is the caste system. Many historians say that the development of the caste system in India began with the arrival of Aryans in around 500 B.C. This arrival caused notable division as the Aryans attempted to conquer the natives in Northern India, forcing those who wished to flee southward. Ancient Sanskrit sources divide society into four major categories, priests (Brahmin), warriors (Kshatriya), traders/artisans (Vaishya) and farmers/laborers (Shudra). The group with the most power was Brahmans - the priests and the lowest group was Vaisia, which was the peasant class.

The lowest caste in the system were classified as “untouchables” or dalits. People who worked in ‘unclean’ professions were considered to be polluted and unclean themselves. These people had very few human rights and faced huge discrimination. Skin color quickly became a very important consideration in classification between classes. Farmers and peasants were generally darker skinned as a result of the manual outdoor labor and as such people with darker skin became associated with the lower class.

The caste system has developed and changed over time, but even today, it is still a very relevant issue in India. Even now, after years of struggling for equality and calls for reform, “more than 165 million people in India alone still suffer discrimination and various types of degrading treatment because of their caste associations” (Sarkin, pg 1).

Great Britain had control of India from 1757 until 1947 and this long period of colonization had a great impact on India’s history. Britain’s interest in India increased as trading increased and it wasn’t long before India was crucial to success of their trade. The rule in India was originally under the East India Trading Company. The governing British profited greatly but there was much unhappiness among the Indian peoples as they were treated very poorly. The history of the British in India is full of conflict, discontent and minor rebellions but is also frittered with loyalties and integration. Millions of Indians served in both of the World Wars fighting for the British. Near the end of the second World War, however, a push for Indian independence was underway. When fighting broke out between Hindus and Muslims in East India, trouble spread across the country and Britain, which had just been financially depleted from the two previous wars, decided to withdraw in June of 1948.

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cultural profileTraditional values, such as the need to take care of aged parents, respecting age and saving for tomorrow still carry a lot of importance in India. This becomes especially interesting in view of the fact that 65% of India is now under 35 years of age, thus casting a greater burden of support onto India’s youth. Interestingly, traditional values are strong even while faith in religion is becoming weaker. By and large the values that have come up as important were those which did not pose a threat to India’s traditionally paternalistic culture. Flexible gender roles and being liberal about sexual matters are relegated to the lower end of the heap.

central values

beliefs “India’s values revolve around strong family orientation as well as loyalty to a ‘group’ which often has to do with their profession. It is important to do well in business and creativity is admired, especially in adversity” (Indian Cultural Profile). Indians see themselves as great humanists and arbitrators--they feel as though they personally bridge the East and West (Indian Cultural Profile).

“There is no single way to understand India--in fact, one observer once commented that ‘India as a nation exists only in the minds of its population’” (Indian Cultural Profile). Indians as a whole are negotiators. They enjoy spending time with their families and find joy in the successes of others. Indians’ communication is perceived by Americans as extremely polite, respectful and courteous.

The traditional sari remains one of the most common clothing preferences for women. Women also commonly wear the Indian salwar-kameez. Salwars are pajama-like pants cinched at the waist and ankles, over the top of which women wear a kameez (which is long and loose). Globalization has taken its root in clothing, as well, however, and an increasing number of men and women are choosing to wear western suits. The men dress in a much more western style than do the women, especially in urban areas. Men in more rural regions wear the traditional Indian kurta or Sherwani, Lungi, Dhoti, Kurta pajama and churidars (Indian Cultural Profile).

characteristics

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cultural profileThrough the centuries, India has accepted countless religious groups. The major ones include Hinduism, Islam, Colonial Christianity, Sikhism, Buddhism, Jainism and Zoroastrianism. The country itself is known as the land of spirituality and philosophy, and was the birthplace of some of the world’s oldest religion. Hinduism is the most ancient of the world’s major religions, with origins dating back to around 1700 B.C. (Bullis 156). It has no single founding figure like Buddha or Mohammed, and is a religion that worships many different gods and goddesses. Today, a little over 80 percent of Indians are Hindus, making it the most dominant religion in the country. “Central to Hinduism is the the doctrine of the transmigration of souls and the doctrine of karma---the fundamental law of cause and effect by which the deeds in one’s present life are rewarded or punished in the next life” (Bullis 156). Hindus believe that all experiences in life contribute to the knowledge of the soul.

The majority of this nation (80.5 percent) are followers of the Hindu religion, but many also practice Islam (13.4 percent), Christianity (2.3 percent) and Sikhism (1.9 percent). Other religions represented include Buddhism, Jainism and Parsi (US Department of State).

religion

“Many multinationals see Asia as a source of opportunity, but it will also give them their greatest challenges in business ethics and corporate social responsibility.” One of the issues that companies face is what ethical model to use within the business operations. A motivation beyond utility and defining attention to character is needed to move past the current stalemates and to move into a model that will help businesses make ethical decisions that are embedded within the fabric of the organization and its people in light of new era of globalization. The globalization affects on India are noticeable through the growth within the country and the attitude of today’s business, both local and foreign. As India expands, a new ethical approach to globalization is critically necessary. This is especially true since India is a democratic and market driven economy and there is not an “artificial” moral guide (i.e. the government) that monitors one behavior not defined by the law (Indian Social Values 2009).

moral & ethical framework

ethnic groups The major ethnic groups present in India include Indo-Aryans (72 percent), Dravidians (25 percent) and all other ethnicities are represented in the final 3 percent of the population (US Department of State). It is estimated that there are over 2000 ethnic groups within India’s borders; however, the Indian National Census does not recognize race or ethnicity (US Department of State). India is one of the most diverse nations in the world.

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GeographyNations: India is located at 20 degrees North longitude and 77 degrees East latitude. At this location, the country finds itself surrounded by many others who share the same beliefs regarding beauty and fair skin. Bangladesh, Pakistan and China are all amongst these bordering nations and serve as opportunities for a potential market. Each of these nations believe that lighter skin implies beauty and success. Like India, when choosing a spouse for marriage, the looks and skin color of the bride are acknowledged first. Unfortunately, bleaching cream seems to be more popular in Pakistan and many women are sent to the hospital each month to deal with skin burns and irritation. These neighboring nations serve as potential markets where a standardized approach can be used to market the Fair and Lovely product.

bordering nations

languageThere are 18 official languages spoken in India, but Hindi and and English are among the most widely recognized and known. The heavy level of globalization present in India has created an interesting effect on language--advertisements are often bilingual (in Hindi and English) to reach a larger customer base (Language in India 1). “[Studies] found that English words are frequently used in advertisements to convey a modern or cosmopolitan image of the product or company,” (Language in India 3).

The simultaneous presence of both English and Hindi words represents the linguistic phenomenon of “code-mixing”--this is commonly referred to as “Hinglish.” As one student in an English-medium school put it, ‘Anyone who speaks for a few minutes without using a couple of Hindi words in an English sentence or English words while speaking in Hindi is considered a big bore and outdated,’” (Language in India 10, via Pushkarna, 2003). Indian language is extremely open to code-mixing and borrowing terms and phrases from other languages, especially compared to countries such as France. When used as a marketing strategy, code-mixing appeals to urban youth in metropolitan cities, because it uses the language they use (which is a mix of Hindi and English) (Language in India 10).

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Geography

EnvironmentThe extreme population growth in India has resulted in a mass amount of pressure being placed on the nation’s government to develop better methods of conservation and sustainability. With a population of 1,189,172,906 and an annual growth rate of 1.344%, we can expect India’s population to reach a staggering 1.26 billion by the year 2016. This amount of growth in such a short period of time will exacerbate the current environmental issues and offset the beneficiaries of urbanization and development. As India’s population continues to grow, a heavy strain will be placed on all natural resources including land and water.

population growth

India’s approach towards urbanization has plenty of cons that must not go unnoticed. The movement towards a westernized automobile industry has contributed greatly to an increase in air pollution. Not only has the percentage of Indians owning and using automobiles grown but the production and manufacturing of automobiles as well. Between the years 1991 and 2006, India’s production of vehicles increased from 2 to 9.7 million. Production continues to rise as more and more global companies enter the market, expanding the variety of automobiles offered and increasing the amount of vehicles being exported. The combination of exportation, importation, production and usage has caused growing concern towards the environment and its present condition.

enviornmental concerns

It has been reported that 50% of the children in Bangalore (a city in India) are suffering from respiratory conditions induced by the increase of air pollution. Doctors discovered that respiratory conditions like asthma have resulted from dust mites and high levels of carbon dioxide, carbon monoxides, hydrocarbon, mercury and nitrogen oxides.

These chemicals have been placed in the air by automobiles and industrial growth. Air pollution has and will continue to cause climatic change especially in Bangalore. The average temperature will increase due to the release of greenhouse gases. Major geological processes will be effected as a result from the increasing temperature and natural disasters will become more and more severe.

language

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MediaThe entertainment industry has been growing at an astounding rate since the 1990s. The maximum growth has been in the television and film segments. Close to about 1000 films are made each year in India and the government has been focusing on regulations to give further impetus to the industry (Indian Cultural Profile). Indians love movies. India is, without a doubt, a mass media culture--much in the same way as the United States. The major channels advertisers use include print, radio, television, film, online, music and out-of-home (FICCI).

“While a majority of the poor working people in rural and urban areas still remain oppressed and even illiterate, a significant proportion of people—roughly about 52 percent of the population over 15 years of age were recorded as being able to read and write. That breaks down to 65.5 percent of males and an estimate of 37.7 percent of females.” (Press Reference)

Socioeconomic statuses become a large consideration factor for advertisers because media penetration varies so heavily among the different classes--there is a low level of media penetration for the lower socioeconomic classes (FICCI).

The negative forces affecting the growth of the media in India include piracy, lack of media regulatory policy, lack of investment, debates about content regulation, price regulation, and cross-media ownership rules (FICCI).

media availability & use

RegulationsThe Advertising Standards Council of India (ASCI) was established in 1985 and is committed to the cause of self-regulation in advertising, ensuring the protection of the interests of consumers. Its main objective is to promote responsible advertising thus enhancing the public’s confidence in advertising. The council seeks to ensure that advertisements conform to its Code for self-regulation which requires advertisements to be:• Truthful and fair to consumers and competitors.• Within the bounds of generally accepted standards of public decency and propriety.• Not used indiscriminately for the promotion of products, hazardous or harmful to society or to

individuals particularly minors, to a degree unacceptable to society at large.• Ensure that Advertisements observe fairness in competition so that the consumer’s need to

be informed on choices in the Market place and the canons of generally accepted competitive behavior in business are both served.

advertising regulations & legal profiles

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Media Regulations

Regulations

Violation of ASCI’s Code is now violation of government rules. Advertisement is often described as commercial speech and enjoys protection under Article 19(1)(a) of the Indian Constitution. Advertisements which do not comply with these rules or which offend morality, decency and religious susceptibilities of subscribers will not be allowed. Religion, race, caste, colour, creed, nationality, women and children are all protected. Social evils such as dowry or child marriage must not be exploited. Care must be taken not to incite people to crime, cause disorder or violence, breach the law or glorify violence or obscenity in any way. Criminality must not be presented as desirable. The national emblem, any part of the Constitution, or the person or personality of a national leader or a State dignitary must not be exploited. Advertisements wholly or mainly of a religious or political nature are explicitly disallowed. Advertisements which promote the production, sale or consumption of the following products are explicitly forbidden:

• Cigarettes, tobacco products• Wine, alcohol, liquor or other intoxicants• Infant milk substitutes, feeding bottle or infant food

The first advertisement appeared on state television in 1976. In the 1980s, the economy was opened to external influences and the number of alliances with multinational agencies increased. Advertising expenditure grew at nearly 15 percent a year and reached $896 million by the end of the decade. In the 1990s India witnessed a massive expansion in advertising, which was stimulated by the opening of the economy and the growth of the media. The government relaxed regulations on foreign company advertising on television. The advertising of foreign products on television was not permitted until 1994 (Pashupati and Sengupta, 1996). At the same time there was a proliferation of television channels including satellite channels. Though print is still the dominant media, during the 1990s there was a rapid expansion of television accompanied by television advertising. Television is an important medium in a market like India where literacy levels are comparatively low. The government still controls the main television network Doordarshan. The industry in India was dominated by Indian agencies until the 1990s because of government limitations on foreign ownership. By 1992-93, 11 of the top 20 Indian agencies were affiliated with multinational agencies. By 1999, 15 of the top 20 advertising agencies had affiliations or joint ventures with foreign agencies, and 12 of those with with American agencies.

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brandprofile

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Fair & LovelySince its launch in 1975, Fair and Lovely was the first and has become the largest selling skin-whitening cream on the market. The brand is present in 30 countries and connects with over 250 million consumers worldwide. In 2003, Fair and Lovely was “rated as the Twelfth Most Trusted Brand in India by ACNielsen ORG-MARG” (Unilever 2011). Immediately following in 2004, Fair and Lovely was identified as a “Super Brand”. Fair and Lovely skin lightening products contain no bleach or harmful chemicals. The active ingredient is Niacinamide (Vitamin B3), which basically helps to work as a sunscreen to protect the skin from getting any darker while simultaneously and gently lightening the skin. The process can take about 4-6 weeks in order to see results. Fair and Lovely products can lighten the skin back to the original skin tone one had at birth, but cannot go any lighter than that. If one stops using the product, the skin will begin to darken once again.

brand profile

• Forever GLOW (For Ageless Fair Skin)• Anti- Marks (For Blemish-less Fair Skin)• Ayurvedic Balance (For Naturally Fair Skin)• Multi Vitamin (For Clear Fair Skin)• MAXFairness for Men

products available

Defined as a set of assets and liabilities linked to a brand, its name and symbol that add to or subtract from the value provided by a product or service of a firm or to that firm’s consumers, Fair & Lovely’s brand equity is strong. Its brand salience is also good, evaluated by the degree of recall and brand awareness (Mulky, et al.). Fair & Lovely controls the vast majority of the market share for skin-lightening creams.

brand equity

• Women, age 18-35 (user group: 12-50 years)• Income: 1-5 lakhs (100,000 to 500,000 USD)• High school or college educated; living anywhere in India (higher probability of South)

target

Equivalent priced competitors• Fairever• Fairglow• Himalaya• Nivea• Vicco• Emami

competitorsMass premium competitors• Garnier• Perfect radiance• Revlon

Men’s fairness creams• Fair and Handsome• Vaseline (Be Prepared ™)

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Parent CompanyFounded in 1933, Hindustan Unilever Ltd. is a part of the FMCG (Fast Moving Consumer Goods) industry, specializing in Home and Personal Care, as well as Food and Beverages. HUL has been sitting the leadership position for many years. It is India’s largest FMCG company. Two out of three Indians use HUL products spanning 20 distinct categories including personal care, food and beverages segments. The company serves over 2,000 retail customer groups with over 700 million consumers and it is the market leader in most of the categories it operates.

Unilever is also the largest player in Indian personal hygiene market with about 57.1% market share in value terms and with 28.8% market share leading the India’s household products market. Besides, tea and coffee beverage products has stood 15.9% in market. All these advantages emphasize its strong brand portfolio.Lux, Lifebuoy, Clinic Plus, Pond’s, Fair & Lovely and Pepsodent are popular and familiar products of HUL. The strength of HUL’s brand portfolio is highlighted by the fact that six of its brans featured in the top 10 and eight in the top 20 in the surveys of India’s most trusted brands. This means HUL has strong bargaining power with leading brands and competitive advantage.

HUL has a wide product range with presence at all price points aided with strong sales and distribution network. Foods, beverages, home care and personal care demonstrate HUL’s wide product range again and different products make HUL’s market larger. At the same time, HUL freedom its market goal to the world: Asia, Australia, Africa, North America and Europe.HUL focus on innovation to drive growth. It expands its presence through new product launches and brand extensions. The company relaunches about one third of its portfolio every year using this innovation strategy and this competitive nature do increase consumer awareness.

In response to environmental concerns Unilever has begun focusing more on conservation and sustainability. Much of the work dedicated to improving the environment will take place in India where there is poor hygiene, air pollution and water scarcity. In 2001, Unilever Hindustan began a water conservation project based on the ‘5R’s- reduce, reuse, recycle, recover, renew.’ The company hopes to save at least 20 trillion liters of water by 2015. To counterattack air pollution, Unilever is now focusing on more ways to calculate and balance the emission of Nitrogen into the atmosphere. Agriculture is a vital part of the company’s production yet the Nitrogen that results from it is far less appealing. When Nitrogen is released into the atmosphere, it contaminates run-off water and contributes to the emission of greenhouse gases. The company strives to use the safest chemicals and fertilizers to complete its farming. The goal is to avoid pollution by limiting the Nitrogen output. The Unilever factories located in India are also working on better means of disposal to eliminate incidents such as the one revolving around the exposed Mercury bottles.

hindustan unilever ltd.

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Parent CompanyweaknessesImpact of the detergent price war is a major weakness. HUL is engaged in a price war with Procter & Gamble (P &G) in the laundry category triggered by a series of events. After P&G’s launch of Tide Naturals, HUL reduced the price of Rin by 30% and increased category advertisements spends by 77%.

HUL has been defending its market shares at the cost of near-term margin deterioration. The company has taken all kinds of actions including price cuts, trade promotions, decrease in the package weight, re-launching across categories and so on. Although this is positive from a longer term perspective, it will extract its cost in terms of higher advertisement spends and limited pricing flexibility.

opportunities• Rising consumption levels in rural markets could accelerate revenue and profit expansion• ncreasing need for clean water at low cost• Growth of the company’s end markets including, cosmetic and personal care markets

threatsIntense competitionITC, HUL’s prime competitor, has many market leading brands in segments too including food, confectionaries and household products. P&G in personal care and household care takes a lot HUL’s previous market. A highly competitive market in reality push HUL uses all the ways to survive.Increasing abundance of counterfeit goodsTrade of counterfeits and pass-offs products is negatively affecting the growth of FMCG companies like HUL. For example, there are over 118 spurious varieties of HUL’s products including Fair and Lovely and Clinic Plus. 15% of consumer goods sales in India are estimated to be of fake products according to industry reports. Besides, revenue losses, counterfeits and pass-offs also affect the company’s brand as they are unsafe. Low quality counterfeits reduce consumer confidence in branded products.

Changing cosmetic trendsBeauty conscious consumers are increasingly using new technologies. Thus, the Indian cosmetic surgery industry is witnessing significant growth, triggered by increasing consumer awareness, direct marketing and advertising campaigns, and technological advances in surgical and non-surgical procedures.

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media criticismThe advertisements for Fair and Lovely products have been criticized and oftentimes called “racist”. The depiction of women only becoming successful after lightening her skin is looked down upon in the U.S. However, Fair and Lovely is not the only skin-lightening brand that is being criticized in the media. Vaseline launched a campaign on Facebook in India in which men could use an app to lighten their skin tone in their profile pictures, making the connection between the app and their skin-lightening products aimed at men. In an MSNBC-affiliated article by Ronda Racha Penrice, she deemed the skin tone issue as “pervasive” and questioned “why would a product as respectable as Vaseline exploit that psychosis?” (Penrice 2010). She then goes on to point out that “Vaseline isn’t doing anything that is deemed culturally insensitive in India. It’s quite the opposite.” In India, these depictions are not seen as racist or wrong; they are simply the norm. Penrice compares the value of skin tone to a similar trend in the United States. Fair skin is beautiful to Indians in the same way that long and curly or straight hair is beautiful to African American women in the U.S. Indians use skin-lightening creams while African American women use hair weaves. In their own cultures, both are acceptable practices. We [Americans] may think it is unfortunate the Indians value skin tone in such extreme ways as they do, but at the same time we have our own values that other cultures may view differently. What may seem racist in one culture may be acceptable in another.

scholarshipThe Fair and Lovely Foundation for Empowering Women awards scholarships to deserving women hoping to pursue their dreams but who may have setbacks. The testimonials on Fair and Lovely’s website explain the stories of the scholarship winners and discuss how women’s lives have been changed. The wording of the testimonials indirectly draws parallels between the consequences of winning the scholarship and the consequences of using Fair and Lovely’s products on one’s skin. For example, Archana Ganesan, scholarship winner in 2003, believes that “the Foundation has really shown her the way from Darkness to Light.” Ramya Dass, scholarship winner of 2005, “wishes ‘all the very best’ to Fair and Lovely towards their endeavor of lightening deserving people’s lives”. Other testimonials use terms such as “metamorphosis” and “transformed”, as well as “beautiful” and “dreams come true” when it comes to their success in life, all of which can be directly compared to the terms used and feelings reported after using Fair and Lovely’s skin whitening products.

agency company profile Lowe + Partners is a modern advertising agency located in London, England. It is a unit of the Interpublic Group. Their clients include Unilever, Johnson & Johnson, Microsoft, PS3, Electrolux, Magnum, SAAB, Ikea, Knorr, Axe, Nestle and Volkswagen.

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Creative AnalysisLoyal, one who wishes to take charge of one’s own destiny.target psychographics

A brand that stands for beauty that empowers a woman to change her destiny. “For the urban woman from [18-35] years of age, Fair & Lovely offers the best path to beauty, self-confidence and success among all fairness creams because it provides fairer, clearer and healthier and glowing skin in just seven weeks.” (Mulky, et al.)

product positioning

Show that transformation will not only be skin deepcreative strategy

“Rescripting Destiny”biggest creative idea

The television spots strongly depict women with insecurities. They are often embarrassed or ashamed of their skin tone. The situations show how the dark-skinned women are struggling in their everyday lives, especially in their careers. The use of Fair and Lovely products then make them beautiful, successful, and confident.

copy points in campaign

rational or emotional appeal The use of emotional appeals is the dominant strategy used in their advertising.

Light-skinned men and women (some darker in background). Many ads use very famous celebrities, such as cricket player Shahid Afridi or actress Heme Malini to endorse their products.

models/talent used

The bulk of their television spots have the same message and depiction. Many portray a woman who is discouraged and unsuccessful in her career because of the darkness of her skin. However, when she discovers Fair and Lovely skin whitening products and lightens her skin, her career takes off and she is not discriminated against anymore.

location/set depicted

slogan More than just fairness -- clear fairness.

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Advertising 1. Print Ad. In this advertisement a new, lighter you emerges from underneath blemished, darker, unsatisfactory skin. 2. Print Ad. Measure your progress as you are restored to “color you were at birth”. Note: shades numbers one through four

are the only shades that have actual people demonstrating this color. 3. Print Ad. As you can see, the model in this ad gradually becomes happier as her skin tone lightens. This reinforces the

creative strategy that the use of Fair & Lovely helps you to make transformations that are not only skin deep.4. Mulitmedia: This is an example of Fair & Lovely’s men’s fairness creams--the interactive ad allows you to remove the

blemishes from the model’s face.5. Print: The fair-skinned model depicted is showcasing the softness Fair & Lovely products claim to deliver.

2.

1.

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Advertising

3.4.

5.

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Cultural RelevanceWhen looking at India’s history, skin-lightening creams make sense in context of India’s culture. Around 500 B.C. an early version of the caste system was introduced and it has prevailed even to this day. The caste system was institutionalized and became ingrained in everyday life - the people of India became so connected to this system that it was difficult to be a citizen without being connected to his or her caste. For those in the upper castes, the caste system upheld their rights and privileges but for those living in the lower castes, most notably “the untouchables”, the caste system was a way to prolong their lack of human rights in society. Keep in mind that people in this caste were generally peasants or had jobs involv-ing manual labor. With India’s extreme temperatures, it is not difficult to imagine how tanned or damaged their skin might become from the sun after jobs that allowed for so much exposure. This led to an associa-tion between the untouchables (and other lower castes) and darkened or damaged skin. As mentioned, the caste system dates back hundreds and hundreds of years and this association is deeply ingrained in India’s history and culture. Therefore the idea of lightening one’s skin to get ahead, to have more oppor-tunities, or to feel better about oneself is not hard to understand in the context of the culture. In fact, even before skin-lightening creams were available as marketed cosmetics, there are many stories of people making their own creams or products to lighten their skin. One can also imagine that the influence of the British and the westernization that followed also made the association of lighter skin and more power a stronger concept.

Understanding the historical context of the skin-lightening desire is very important in understanding the beauty market in India. A more current issue also allows for growth by Fair & Lovely. As discussed, pollu-tion is a very serious problem in India. As India becomes increasingly urbanized, the pollution becomes an increasingly bigger and more dangerous problem. With so many factories, air pollution is becoming a seri-ous hazard and can lead to damaged or unhealthy skin. As Fair & Lovely promotes both skin-lightening and clearing, it makes sense for it to be a very popular product in India. It makes sense that Fair & Lovely’s products should be booming. The product itself is in demand based on the cultural desires stated above. Additionally, the beauty market in India is booming. Since liberaliza-tion in India in 1991, there has been a commercial beauty product revolution, in a sense (India Together). As stated by the International Trade Administration, “the emergence of a young urban elite population with increasing disposable income in cities, including an increase in the number of working women increase looking for lifestyle-oriented and luxury products is the main driver of demand for imported cosmetic prod-ucts” (2010).

The success of Fair & Lovely can be attributed in large part to its across the board marketing. It “caters to people from all walks of life. From mom & pop stores to hypermarkets to luxury malls” (Sharma). Because the desire to lighten one’s skin tone seems to know no status, caste or class, the marketing and advertis-ing reaches all and it is as commonplace of an object as toothpaste is in an American household.

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Cultural Relevance

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