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.

make-up
13%
fragnance
sun- 25% fragnance
screen personal care
20%
sun-screen
personal make-up
care 42%

-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 No. of individuals % of individuals

customers
More then 1lakh 60 40
Less 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.

Other
Sources of Print-media
Promotion

Promotion of the products Retailers:

E-media point
of purchase

Promotional Event
Offers Sponsorship

\
Table no. 2
Factors influencing brand preferences
Factors No. of Respondents % of Respondents
Fairness 69 46
Sunscreen 42 28
Fragrance 39 26
Total 150

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 Table no.3-
Source of Awareness for fairness creams

Source of Awareness No. of Respondents % of Respondents

Friends and/or relatives 13 8.67
Family members 15 10
Retailers recommendation 4 2.67
Television Commercials (TV’s) 80 53.33
Newspaper Ads 8 5.33
Magazine Ads 30 20
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

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

Else people start

Else not looking suffering
To look attractive
good from inferiority
complex

Women are It affects our

CONFIDENCE
attracted confidence

PRIDE &
SELF ESTEEM
CONFIDENCE

• 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 No. of Respondents % of Respondents

Less than 25 45 30
25 – 35 64 42.67
35 – 45 17 11.33
More than 45 24 16
Total 150

Table no.5-
Classification based on sex

Sex No. of Respondents % of Respondents

Male 35 23.33
Female 115 76.67
Total 150

Table.no.6
classifications based on education

Education No. of Respondents % of Respondents

School 86 57.33
Under graduation 52 34.67
Post graduation 6 4
Professional 2 1.33
Diploma 4 2.67
Total 150

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>Competitors

Creams No.of respondents % of respondents

Fair & 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
>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 middle-end

product

Target segment ability & lower-end

willingness to pay.

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 More then
60 1lakh
50
40 Less then
30 1lakh
20
10
0
No. of % of
individuals 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

20
 90
80
70 No. of
60 Respondents
50
40 % of
30

recommendation
20

Newspaper Ads
Respondents
Friends and/or
10
0 relatives

Retailers

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
64
60
50
45 42.67
40
30 30
24
20 17 16
10 11.33
0
Less than 25 – 35 35 – 45 M ore
25 than 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.

Female,
140 Female,
No. of
120 Responde % of
100 nts Responde
Male, No. nts
80 of Male, % Male
Responde of
60 Female
nts Responde
40 nts
20
0
No. of % of
Respondents 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.6-
classifications based on education.

100
90
80
70 No. of
60 Respondents
50
40 % of
30 Respondents
20
10
graduation

Diploma
School

0
Post

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 FAIR-EVER
20% 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.

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  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

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• 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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