FAIRNESS CREAMS WAR

PRESENTED BY :
PRATEEK AGARWAL
SWATI RAI
ROHIT KUMAR
CONTENTS
Executive summary
Background
Competitiveness of the fairness
cream market
Beneficiaries
Ethical issues
Conclusion.
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

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

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
FairGlowcream 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.
6.
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.
 CONCLUSION
This 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.
