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STUDY OF THE BUYING BEHAVIOUR OF CONSUMERS TOWARDS FAIRNESS CREAMS

1) Introduction / aim / objective
2) Industry overview and competitive analysis
3) Segmentation and targeting
4) Differentiation
5) Positioning
6) Marketing mix and resource capabilities
7)Research design
a) Aim and objective....define the problem and outcome of research
b) Sampling design
c) Questionnaire design
d) Sources of secondary data
8) Discussion and analysis of research findings
9) Strategic recommendations and conclusions

OBJECTIVE

- To study the current Indian market for fairness cream.

- To asses whether advertising is influencing the buying behavior of the consumer.

- To find out the brand preference for fairness cream among people.

- To study factor influencing brand preference for fairness cream.

Fairness Cream has become a vital product for the Indian 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 leading players in the market includes 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', Emma's 'Fair and Handsome', Vicco and Himalaya share the rest of the market share.

There are number of fairness creams and other skin whitening products in the market such as peel-offs, serums, lotions etc. All the fairness creams have similar basic ingredients but the several additions make them more suitable to some particular skin type and may irritate other skin types.

All the companies are reaching out to the target customers through its wide range of fairness creams. AloeVeraextract, turmeric, vitamin-E, lemon extract are some of the ingredients which form major formulations. Another advantage of such fairness creams is that they tend to clear dark spots, brighten the discolored, pigmented skin and are suitable for all skin types. They have to be used twice a day on face and neck after cleaning them with a face wash.

All the cosmetics companies have at least one fairness cream under their BRAND NAME. Although packing changes regularly, formulations remain the same. Starting from the most popular brand, Fair & Lovely plays as the market leader with oldest brand and highest customer base. There are two more variants added to its original brand. They are anti-marks and Ayurvedic range.

For that flawless look Ponds of HLL and Oil of Olay of P & G, quite openly challenge the seven-day test with a money-back guarantee. Shahnaz Herbal claims its product as herbal and best in its range. This product is economical in range as against the normal line of products at premium prices. For the last few years, Emami is selling its fairness cream for men. The product is a great success, especially in small towns and cities. 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

The fairness cream market in India is driven by not only growth in the women’s sector but also growth in the male grooming segment. Due to the rise in disposable income and enhanced awareness with the help of larger penetration of media, fairness cream in India is experiencing stronger demand. Due to the increase in organized retailing and trends towards tapping untapped potential of men’s segment, Indian fairness cream market is poised for further growth.

Fairness Creams Market In India

The fairness cream market in India is driven by not only growth in the women’s sector but also growth in the male grooming segment. Due to the rise in disposable income and enhanced awareness with the help of larger penetration of media, fairness cream in India is experiencing stronger demand. Due to the increase in organized retailing and trends towards tapping untapped potential of men’s segment, Indian fairness cream market is poised for further growth.

The report begins with an overview of the skin care industry in India giving its market size and growth as well as a clear segmentation on the types of products that constitute this sector. This is followed by an overview of fairness cream market describing the market and includes information regarding market size and growth. Segmentation in the market in terms of types of fairness cream-based products has been provided. A clear indication of percentage break-up in terms of segments based on women’s and men’s market along with its size and growth has also been highlighted. Additionally, distribution channels adopted by the players are highlighted.

An analysis of the drivers explains the factors for growth of the market including increase in disposable income, rise in organized retail, increase in awareness, increase in male grooming and low penetration. Products like fairness cream does not fall under the purview of necessary goods and therefore it becomes imperative for its survival that people have more income at their disposal. The growing Indian economy and the growth in disposable income have led to strong demand for fairness creams. Further, with enhanced awareness through increased media penetration, people are more aware about the sector and its products. Additionally, with increased organized retail in India, more brands including global brands are seen within the reach of the masses.

MARKET SIZE OF FAIRNESS CREAMS

Fairness products account for a whopping Rs 800 crores of this segment. The annual growth rate is between 10 and 15 per cent. HLL, with Fair & Lovely, having a massive 53 per cent market share, followed by Olay with over 30 per cent share and Fair & Handsome with a 3.5 per cent share. Himalaya Drug Company recently made an entry into this segment and aims to capture two per cent share of the market. Other players such as Emami (Gold Turmeric and Naturally Fair) and Revlon (Fair & Glow) also have a presence. HLL has other fairness products under its Lakme and Aviance brands. Also, there are smaller brands operating in this vast market.

According to syndicated reports, the market grew last year by 2.88 per cent in volumes and 10 per cent in value. South is the largest market with 36 per cent contribution, with the North and West equally contributing with 23 per cent. The East contributes 18 per cent to volumes.

Category penetration, according to ORG, is at 11.6 per cent all over India. Andhra Pradesh is the highest penetrated with 14.5 per cent with Gujarat penetration at 2.8 per cent. Kerala, Gujarat and Bihar are the top three growing markets with Kerala growing by 40.37 per cent.

Why fairness cream for men?

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Previously, men believed that they are not supposed to use fairness creams and this was the domain of ladies only. However, times have changed now and male also became conscious for their look. The growing demand of different cosmetics and skin care products for men proves that Men are now taking care of their skin. They are using different skin care products to protect their skin from sun and everyday‟s pollution. Especially the Indian Men, they didn’t think anything beyond an aftershave lotion and a perfume or body deodorant. But now they started going to beauty parlors. They are happily ready to pay Rs. 100-200/-on hair cutting and face massage simply we can say that today male are trying to build the USP of good looking. There may be a genuine need for this product that the male skin I India is three times more exposed to the sun UV rays, five times more exposed to pollution, twice more exposed to stress, and considerably more abused by abrasive shaving blade action than women‟s skin.

This is in year 2004, when Gillette conducted a survey to know the attitude of Indian customers towards use of cosmetics products. The result showed that the Indian male spent more time on grooming than ever before. Indian male take an average of 20 minutes in front of mirror to groom them compared with Indian female who take an average of 18 minutes in front of mirror at every morning. Along with this so many other companies conducted study on same line and get almost similar result. This is also noticed that 25-30% of fairness products are purchased and used by male customers. Indian fairness creams market is estimated at Rs.800 crores. (and Indian male fairness cream market is estimated at Rs.250 crores

Men in India seem to be in a rush to be the fairer sex. [pic]

Clearly, men in India wouldn't mind being the fairer sex, if marketers' pitches for men's fairness creams are anything to go by.

To secure early leads, marketers are expanding their portfolio beyond creams and straddling different price-points with various ranges. Differentiation, for now, seems to have been relegated in favour of endorsements by filmdom's and cricket's A-listers for their communication.

Hindustan Unilever (HUL) is the latest to make a splash with its range of Vaseline Men Anti-Spots Whitening facewash and cream. In what is seen by observers as retaliation to Garnier's campaign with star endorser John Abraham, HUL has roped in Shahid Kapur.

Garnier, Loreal's natural ingredient-based brand, launched its Garnier Men PowerLight range of moisturisers and facewash last year.

But won't the star endorsements by every brand erode differentiation? Garnier Marketing Manager Richa Singh says, "John Abraham's positive energy and the will to be active helped us portray him in a way that was real to both him and our brand. It appeared genuine." HUL Skin Care General Manager Govind Rajan feels, "It is always better to start with the young who are more amenable to change. Hence, Shahid Kapur".

On its part, Nivea has associated with India cricket captain Mahendra Singh Dhoni. The first mover, Emami's Fair and Handsome has Shahrukh Khan as its endorser.

Kolkata-based Emami first saw the need for a men's fairness product, beating bigger players. Research had showed that the country's leading women's fairness cream, Fair and Lovely, had then owed over 30 per cent of its sale to men users.

Emami's Fair and Handsome, launched in 2005, was followed by HUL, the makers of Fair and Lovely, which launched Fair and Lovely Menz Active in 2006. Beiersdorf AG, the German parent of Nivea, entered next with its Nivea for Men products. Smaller players include Elder Healthcare's FairOne Man, a Shahnaz Hussain franchise. (See chart for market shares)

Heavy advertisers such as HUL and Garnier are now looking to expand the skincare category beyond vanilla fairness creams with face washes and sunscreens, though experts question the efficacy of these products.

" Marketers admit that fairness is the foremost concern of users but insists that it only points to the underlying need for a healthy skin.

Nivea For Men Group Brand Manager Sudarshan Singh says, "Whitening emerges as the prime need. Since Indian men spend a lot of time outdoors, they desire to reverse the effect of the aggressive factors and hence use whitening creams. The other big need is also of oil control." Adds Garnier Marketing Manager Richa Singh, "Our products address the need for a clear and glowing skin, albeit without a tan and dark spots."

The brands are banking on the halo effect of the names under which they launch their men's fairness products, apart from the star pull. Singh says, "Our differentiator is what Garnier stands for overall - fusing nature with technology." HUL's Rajan says, "Vaseline has always been viewed as an expert brand on skincare thanks to its heritage. So it has the credibility to create a habit of skincare regime."

Brands are also straddling different price points, either through different product ranges or through packaging. Garnier launched satchets of its cream early this year. Its parent, L'oreal also has a range for men's whitening cream priced much higher. HUL covers the mass market with its Fair and Lovely Menz Active.

With Vaseline Men, it will focus on modern retail, which Rajan admits will yield a higher throughput as it is targeted at the urban man. "Men are wary of walking into a fancy and cosmetic store and tend to pick up products from chemists and hypermarkets," he adds.

Emami, still lording it over the market with its Rs 125 crore (Rs 1.25 billion) brand, is far from embattled. Goenka points out, "It is one thing to have a brand and quite another to focus on it. What will be the war chest that larger players will set aside for their men's brands?

We have 20 per cent of revenues going into advertising and Fair and Handsome remains a focus brand, he asks. HUL, for example, does not intend to extend its Fair and Lovely Menz Active, but wants to concentrate on Vaseline Men. According to Nielsen survey conducted amongst Socio Economic Classes A & B men in Mumbai, Delhi n few more urban cities, Most of the urban men have at least 1 monthly appointment at the salon, to pay special attention towards their grooming.

The market of Men’s fairness cream in India is worth Rs. 200 Cr. The various companiesalready present in this market and their market shares are as follows: Fair and Lovely(53%), Fairever (12%), Emami and Nivea (5%), Fairglow (3.5%) and Himalaya Drug

Company (2%). L’Oreal being a global giant has many advantages above the establishedcompanies. Garnier is known for delivering quality products and already has a brandimage in India’s cosmetic market. Garnier Men is a quality product aimed only for men.

It aims to build on the image of Garnier and create a pool of loyal customers. With thequality of the product and brand image of Garnier, Garnier Men aims to capture at least5% of market share. In volume terms, the aim is to generate revenue of at least Rs. 10Cr.Garnier keeps a profit percentage of about 12-15 percent on its products. Thus, the speculated profit of this year is expected to be Rs. 1.3 Cr

MENS GROOMING TAKES OFF

- Increased male spending on grooming products. - The growth rate of this segment has been exponential. - Latent but effective driver could be the fact of low penetration of these products in the market. - An underpenetrated market always crates scope for enormous growth. - The market for men’s fairness products is valued at Rs. 30 million, and constitutes 35% of the market

CONSUMER BUYING HABITS

- VARIETY SEEKING BUYING BEHAVIOUR : Low consumer involvement but significant perceived brand differences. - “ The individual likes to shop around and experiment with different products”

Consumers are effected by Advertisements, colouring & packaging, brand image & celebrity endorseme

PSYCHOLOGICAL FIELD

“ Why is there a need to have a fair skin ??? “

1. ( To look attractive ( Women are attracted ( PRICE & CONFIDENCE

2. ( Else not looking good ( It affects our confidence ( SELF ESTEEM

3. ( Else people start suffering ( CONFIDENCE

FACTS

- “ Black Skin White Masks “ author Fanon says “ As much as the white man thinks himself superior to the black, the black man desires to be white. Indeed black men want to prove to white men, at all costs, the richness of their though, the equal value of their intellect.” “ For the black man, there is only one destiny, as it is White.”

- Indian men were using fairness creams that were originally targeted at women.

- Fair & Handsome is a brand that created Men fairness segment in India.

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FACTORS INFLUENCING BRAND PREFERENCE (PYRAMID)

- The pyramid above speaks of the consumer behaviour towards fairness products in relation to certain factors. It states that consumers prefer fairness products in relation to their needs i.e. social needs, physiological needs, safety needs, etc.

- Therefore, it’s just not the quality or price but also the product placement or

positioning done by the brands in the consumer’s mindset that is important.

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The market has been dominated by Fair n Lovely ever since its lauch. Although a constant increase in the number of competitors has not been able to dismantle the position of F&L as the market leader.

DO ENDORSEMENTS HELP INFLUENCE CONSUMERS..???

- Ninety percent of consumer survey noted that they trust recommendations from people they know, while 70 percent trusted consumer opinions posted online.

- “The explosion in Consumer Generated Media over the last couple of years means consumers’ reliance on word of mouth in the decision-making process, either from people they know or online consumers they don’t know has increased significantly,” says Jonathan Carson, President of Online, International, for the Nielsen Company.”

- A survey on consumer behaviour in relation to advertisements was done by Nielson company which is further explained in the picture below.

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CONCLUSION FROM THE ABOVE PICTURE : Advertisements do have an impact on consumer behaviour but it’s not that effective as compared to “mouth of word” promotion, online recommendations of consumers, etc

OBJECTIVE

- To study the current Indian market for fairness cream.

- To asses whether advertising is influencing the buying behaviour of the consumer.

- To find out the brand preference for fairness cream among people.

- To study factor influencing brand preference for fairness cream.

SCOPE

The scope of the study covers all categories of fairness creams. The whole appraisal of fairness cream will be in the angle of customer satisfaction. Any substitutes of fairness cream like soaps or natural product will not be considered. Also fairness creams locally made by the unorganised sector and which are not branded will not be considered. The study is restricted to people who are using fairness creams. This study is restricted to thr students of Sathaye College & people of Andheri East & West are of Mumbai.

RESEARCH PROBLEM

“ Buying behaviour of consumers towards fairness creams “

It is a study of the consumer behaviour regarding the selection of a fairness cream. The factors that influence consumers to opt for a specific fairness cream.

- RESEARCH METHODOLOGY

|RESEARCH DESIGN |DESCRIPTIVE RESEARCH |
| |Statistical research, describes data and characteristics about the population |
| |being studied. |
|RESEARCH INSTRUMENT |STRUCTURED QUESTIONNAIRES (20) |
| |STRUCTURED INTERVIES (5) |

- SAMPLING PLAN

|SAMPLE METHOD |NON PROBABILITY SAMPLING |
| |No basis for estimating the probability that each item in the population has to |
| |being included in the sample. |
|SAMPLE TYPE |CONVINIENCE SAMPLING |
| |Selecting the sample units that are conveniently available. |
|SAMPLE SIZE |25 |
|SAMPLE UNIT |PEOPLE USING FAIRNESS CREAMS |

SURVEY

QUESTIONNAIRES (20)

Q1. Do you use Fairness Cream

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INTERPRETATION/OBSERVATION : From the above table it can be inferred that most of the respondents who use fairness creams are youngsters . it is clear in the table that 60% of them belong to the age group of “less than 25 years” and 25% belong to the age group “25 – 35 years”.

Q.2 – Monthly Income

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Q.3 - Qualification

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Q.4 - Give the ranking to the following factors that influence your purchase decission while buying a fairness cream answered question?

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OBSERVATION : The above table informs that quality is the number 1 factor that influences the consumer behaviour followed by brand image and advertisement, where as price & promotional offers hold the least significance in the beauty care products.

OBSERVATION : From the above table we can see that fair & lovely tops the chart/or is ranked 1st in quality, price and promotions. Following the cream, Lo ’real has been ranked 2nd in most of the factors followed by Olay. The least rank is given to “Emami”, standing on 5th rank in each factors.

OBSERVATION : From the above graph, it can be defined that 50% of the respondents shift brands because of quality related issue or quality purpose.

Q.5 – Which brand do you prefer to buy ?

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OBSERVATION : From the above table it can be informed that “Fair & lovely” has the maximum brand recall. The other brand that holds awareness is Olay. However emami has the least brand awareness.

OBSERVATION : From the above table, it can be inferred that 35% respondents have used fair & lovely/handsome before shifting to their current brand of use.

Q.6 How long have you been using the above stated brand ?

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OBSERVATION : From the above table, it can be inferred that 40% of the people have been using their currant brand for 1 – 2 yrs. This shows their “brand loyalty” towards their existing brand of fairness cream.

Q.8 You are using fairness cream as/for

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OBSERVATION : From the above table it can be inferred that nearly 40% of the people use fairness cream as a moisturiser and 35% for fairness.

Q.9 Whats affects your buying behaviour

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OBSERVATIONS : 40% of the respondents feel that their product purchase decision was deeply influenced by the advertisement, while none of them think that the celebrity endorsement affects their purchase.

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HYPOTHESIS

1. Consumers are very selective about fairness creams because of its after effects.

2. Consumers prefer Fair & lovely because of its good quality & price factor.

3. Men have started using fairness creams because of the superiority complex.

4. Middle aged consumers prefer Olay over Fair & lovely because Olay is portrayed (advertised) as an anti – aging cream.

5. Certain products like Emami have less sales due to poor brand image.

6. Many consumers prefer brand image over quality of a product.

7. Growth in the market is because fairness creams are supposed to be multi-purpose creams.

8. Fairness cream sales have increased because of the Indian climate (heat & humidity).

FINDINGS

1. Fairness creams are generally used by the youngsters less than 25 years of age as they are more beauty conscious. They mostly use fairness creams to look beautiful.

2. Respondents in the age group of 35 – 50 years use Olay, as it is said to be an anti – aging cream. The Olay advertisements revolve around aging & wrinkles factors.

3. Women usually use the fairness creams in more numbers, but even men constitute an equally large segment in the fairness cream market.

4. The awareness level of fair & lovely was found to be higher than other brands because of its hardcore marketing strategy.

5. Quality is of most importance in beauty care products aas prople cannot compromise with their look or beauty & physical attribute.

BASED ON THE MARKET RESEARCH FOLLOWING ARE THE TOP RANKERS

1. QUALITY ( Lo ’real

2. PRICE ( Fair & lovely

3. AVAILABILITY ( Fair & lovely

4. BRAND IMAGE ( Olay

5. PROMOTION ( Fair & lovely

6. ADVERTISEMENT ( Olay

7. RANGE AVAILABLE ( Lo ‘real

SUGGESTION

1. People desire products that are all in one. So the company should look at producing creams that provide fairness, sun protection & cleansing milk.

2. The companies should market themselves to the youth since they form the maximum usage group. Olay markets itself as the anti – aging cream which appeals to the older generation due to which Olay has lost out on the youth market. However, in the recent ad, Olay focused on the youth market as well.

3. There is plenty of scope for growth in the men’s fairness cream segment. So the companies should aim at producing and marketing widely & wisely to the male growing segment.

4. When it comes to beauty care products the consumer is ready to pay extra price but do not compromise on the quality, so the companies should aim at producing good quality products without any harmful chemicals.

5. Companies should focus on giving more importance to the advertisement of their product since most of the consumers remember the product because of its advertisement.

6. The product should have a quick impact because if the customer is dissatisfied then he/she may immediately shift to some other brand as there are multiple fairness brands available in the market.

7. Value for money.

LIMITATIONS

1. Chances of respondent being biased are involved.

2. As the research is restricted to Andheri East & West and Sathaye college, the result is not applicable to other parts of the state/country.

3. Limited number of respondents been used due to time constraint and this could affect the accuracy of result to some extent.

4. The time given to carry out the research was limited.

CONCLUSION

Fairness creams constitute a constant proportion of income for FMCG companies in India. As most of the Indians are very much bothered about their colour complexion, the fairness creams enjoy a very good market growth rate when compared with other related product categories. Fair & lovely has captured the market. It is not sufficient if a company has the right product of the right quality but, company has to market the product efficiently to reach its target customers since people remember the product through its advertisements.

BIBLIOGRAPHY

http://articles.timesofindia.indiatimes.com/2009-04-08/india-business/28013409_1_fairness-cream-cream-market-bulk-users