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.

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.

-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

No. of individuals % of individuals

More then 1lakh 60 40Less then 1lakh 90 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.

Promotion of the products

\Table no. 2Factors influencing brand preferences

Factors No. of Respondents % of Respondents

FairnessSunscreenFragrance

694239

462826

Total 150 

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Print-media

Retailers: point

of purchaseE-media

Event Sponsorship

Promotional Offers

Other Sources

ofPromotion

Table no.3- Source of Awareness for fairness creams

Source of Awareness No. of Respondents % of Respondents

Friends and/or relativesFamily membersRetailers recommendationTelevision Commercials (TV’s)Newspaper Ads Magazine Ads

1315480830

8.6710

2.6753.335.3320

Total 150 

-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

Business environment -.General environment.

>Socio-cultural environment. >Legal environment. >Technological environment.

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Why there is a need for fair skin ?..?..?

To look attractiveElse not looking

good

Else people start suffering

from inferiority complex

CONFIDENCEIt affects our confidence

Women are attracted

SELF ESTEEMPRIDE &

CONFIDENCE

-Specific environment

>Customers

Table no.4classification based on age

Age No. of Respondents % of Respondents

Less than 2525 – 3535 – 45More than 45

45641724

3042.6711.33

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Total 150 

Table no.5-Classification based on sex

Sex No. of Respondents % of Respondents

MaleFemale

35115

23.3376.67

Total 150 

Table.no.6 classifications based on education

Education No. of Respondents % of Respondents

School 86 57.33

11

Under graduationPost graduationProfessionalDiploma

52624

34.674

1.332.67

Total 150 

>Competitors

Creams No.of respondents % of respondentsFair & lovely 45 30%Vicco 18 12%Fair-one 30 20%Fair-ever 30 20%Himani 27 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 >NiviaThe 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.

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-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.

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.

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>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.

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 middle-end product

Target segment ability & lower-end willingness to pay.

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Price differentiation according to the segment’s demand.

Price classification

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

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Distribution channel of Fairness creams

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

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0102030405060708090

100

No. ofindividuals

% ofindividuals

More then1lakh

Less then1lakh

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

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' 

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Table no.3- Source of Awareness for fairness creams

0102030405060708090

Friends a

nd/o

r

rela

tives

Reta

ilers

recom

mendation

New

spaper

Ads

No. ofRespondents

% ofRespondents

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

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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 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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Male, No. of

Respondents

Male, % of

Respondents

Female, No. of

Respondents

Female, % of

Respondents

0

20

40

60

80

100

120

140

No. ofRespondents

% ofRespondents

Male

Female

45

64

1724

30

42.67

11.3316

010203040506070

Less than25

25 – 35 35 – 45 Morethan 45

No. of Respondents % 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.

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.6-classifications based on education.

0102030405060708090

100S

chool

Post

gra

duation

Dip

lom

a

No. ofRespondents

% ofRespondents

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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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

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ad and the recent Fairever celebrity ad.  Awareness can easily be created with these kinds of celebrity ad appeals.

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

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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 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?

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1-year 2-years More then-5years 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?

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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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