Académique Documents
Professionnel Documents
Culture Documents
LETTER OF TRANSMITTAL................................................................................................................................3
LETTER OF ACKNOWLEDGEMENT...................................................................................................................4
UNILEVER PORTFOLIO / BACKGROUND...........................................................................................................5
MISSION AND VISION STATEMENT:.......................................................................................................................5
BACKGROUND:.................................................................................................................................................6
FAIR N LOVELY...............................................................................................................................................7
SWOT ANALYSIS...............................................................................................................................................8
STRENGTH......................................................................................................................................................8
WEAKNESS......................................................................................................................................................8
OPPORTUNITIES...............................................................................................................................................8
THREATS.........................................................................................................................................................9
BCG.................................................................................................................................................................10
STAR:...........................................................................................................................................................10
QUESTION MARK:...........................................................................................................................................11
CASH COW:...................................................................................................................................................11
DOG:............................................................................................................................................................11
MARKETING RESEARCH.................................................................................................................................12
OBJECTIVE....................................................................................................................................................12
CONSUMER CHARACTERISTICS.........................................................................................................................12
Cultural Factor.........................................................................................................................................12
Social Factors.........................................................................................................................................12
Personal Factors.....................................................................................................................................13
Psychological factors...............................................................................................................................13
CONSUMER RESPONSES..................................................................................................................................14
Competitor VS FAL SKU...........................................................................................................................17
MARKET SEGMENTATION / TARGET MARKETING..........................................................................................18
MARKET SEGMENTATION..................................................................................................................................18
TARGET MARKETING.......................................................................................................................................18
Geographic Segmentation........................................................................................................................18
Demographic Segmentation.....................................................................................................................18
Behavioral & Psychographic Segmentation................................................................................................19
POSITIONING...................................................................................................................................................19
ASSUMPTIONS................................................................................................................................................20
MARKETING OBJECTIVES...............................................................................................................................21
CORE MARKETING STRATEGIES....................................................................................................................22
Market Penetration:.................................................................................................................................22
Product Development:..............................................................................................................................22
Market Development................................................................................................................................22
Diversification:.........................................................................................................................................22
MARKETING STRATEGIES AND TACTICS........................................................................................................23
DISTRIBUTION CHANNELS AND PRICING.......................................................................................................24
Complaints..............................................................................................................................................24
Contribution............................................................................................................................................25
Growth rate over last year........................................................................................................................25
PRICING..........................................................................................................................................................26
RECOMMENDATION........................................................................................................................................27
APPENDIX.......................................................................................................................................................28
REFERENCE:..................................................................................................................................................28
Contacts.................................................................................................................................................28
Book:......................................................................................................................................................28
Web sites:...............................................................................................................................................28
QUESTIONNAIRE.............................................................................................................................................29
ILLUSTRATIONS..............................................................................................................................................31
RETAIL SHOPS...............................................................................................................................................31
SHELVES.......................................................................................................................................................32
DISTRIBUTION CENTER....................................................................................................................................32
Letter of Transmittal
Mr. Salman Tariq Mir,
Faculty,
Institute of Business Management (IoBM),
Karachi
Dear Mr. Mir,
Please accept this formal Report as you requested. The product chosen by us is Fair n Lovely, We
have taken this product a step further and introduced FAL guy. All the materials stated are used
and mentioned in this report are authentic and also throughout the report Fair n Lovely will be
referred as FAL.
This report is the result of hard work by the entire group in collecting the information from the
representatives of the chosen company as well as surfing on the internet, visiting retailers,
consumers, distributors and incorporating it in the form of report.
All issues pertaining to the topic have been covered. If you have any queries please feel free to
contact us on the given e-mail addresses.
Sincerely,
Muhammad Shan-e-Elahi
Shifa Ibrahim
Farrukh Ahmed
Abbas Jan
Amyn Dhamani
Letter of Acknowledgement
We appreciate the co-operation extended to us by Ms. Farheen Salman, Product Manager Fair and
Lovely at Unilever Pakistan. She gave us an insight about our product and our target market.
We would also like to thank Mr. Mohib, owner Naheed supermarket and Mr. Aqeel who were very
welcoming and helped us understand the different aspects of the market. We would also like to
thank Mr. Faisal, sales man at Imtiaz superstore.
Thirdly we would like to thank the Unilever territory sales officer Mr. Faisal Ali Khan for showing us
the different aspects of distribution and going over the price rates.
And most important of all, we are greatly indebted to the sincere efforts of our teacher, Mr. Salman
Mir Tariq, in helping us solve the problems we faced, in giving us a clear and distinct direction and
in providing guidance to us throughout this process. It is due to his tireless efforts, consistency of
instructions and the encouragements that we have very successfully completed our report.
Background:
LBPL was incorporated in Pakistan in 1948 and work started on the present factory at Rahim Yar
Khan. Dalda Banaspati was the first product to be produced, followed by Lux toilet soap in 1954.
LBPL pioneered the business of processed animal and poultry feeds in Pakistan when it began
production and marketing in 1960. Surf, the first of its non-soapy-detergent (NSD) powders was
launched in 1963 produced in conjunction with Futehally Chemicals (Pvt) Limited.
The present Karachi Edibles Factory was acquired in 1965 from A&B Oil Industries Limited.
Reconstruction and expansion of the factory was completed in 1994 making it one of the most
modern plants in Pakistan.
LBPL moved into the Personal Products business in 1981. Further diversification on the food side
of the business took place with the introduction of margarine and cooking oils. In 1994 a state of
the art factory for producing ice cream was erected and began production in a record
time of 10 months.
Unilever had acquired Lipton and Brooke Bond business worldwide, however in Pakistan it was
decided to merge Lipton with LBPL in 1984. Legal merger became effective in 1989. Lever
Brothers and Brooke Bond merged in 1997.
Fair n Lovely
Based on a revolutionary breakthrough in skin lightening technology, Fair & Lovely was test
marketed in 1975 and has been nationally marketed since 1978. In fact, Fair & Lovely has been
extensively tested with consumers in country India and abroad, and has been proven to be
superior in terms of benefit delivery to all key competitive brands.
The formula used in Fair & Lovely's contains a unique fairness system that is a combination of
active agents and sunscreens. It has been specially designed and proven to deliver one to three
shades of change in most people. Also its sunscreen system is specially optimized for Indo-Pak
skin. This type of skin unlike Caucasian skin tends to 'tan' rather than 'burn' and, hence, requires a
different combination of UV A & UV B
sunscreens.
Fair & Lovely fairness cream is marketed in over 38 countries through HLL Exports and local
Unilever companies and it is the one of the largest selling skin lightening cream in the world. The
brand today offers a extensive range of products to consumers including Fair n Lovely Fairness
Reviving Lotion, Fair n Lovely Fairness Cold Cream, Fair n Lovely Fairness Soap, Fair n Lovely
Anti mark cream, Fair n Lovely Oil Control and Fair n Lovely Herbal Cream.
SWOT Analysis
Strength
The cost of local FAL is cheaper the Indian FAL which is a big competitor
FAL has come up with big nose sachets which allows the consumer to use it for a longer
period
FAL spends huge amounts of money for advertisement the ratio to competitor is 5:1
Weakness
Some women are ashamed of admitting on using FAL because of its reputation as a
device to get married
Opportunities
More publicity for men using the product. Secondary focus should be men in all kinds of
media as well.
With the increasing technology, FAL can use different chemicals which can have instant
results
The amount of people using creams is increasing day by day FAL can come up with
different varieties of creams to fit different needs of the consumers
Threats
More awareness amongst the target market due to advertising campaigns of local as well
as international competitors in local as well as foreign media.
Brand loyalties of customer to Nivea or Tibet does not allow them to go for FAL
Oral medicines are becoming more popular for better skin care for example Accutaine
Nature craze has taken over, people are more into natural products such as honey and
cinnamon or Aloe Vera plants rather then cream to protect their skin or make then fairer.
New age soaps have active ingredients which induce fairness to the skin
10
BCG
The Boston Consulting Group Approach is used to classify all the SBUs of the company according
to the growth-share matrix. The vertical axis of the matrix shows the market growth rate which
provides the measure of market attractiveness. On the horizontal axis the relative market share
shows the strength of the company in the market.
SBUs is the unit of the company that has a separate mission and objective and is planned
independently from other company business.
Star
HI
Question mark
FAL
Oil control gel
LOW
FAL
Anti mark cream
Herbal Cream
Cash Cow
Dog
FAL
Fairness Gel
FAL
Soap
HI
LOW
Star: The star product is a high growth rate and high market share product. At this moment FAL
Oil control gel is in this category. This gel has taken over the market with its unique ingredient of
giving fairness as well as getting rid of acne. Huge amount of money is being spent on promoting it
including a lot of point of sale promotions.
11
Question Mark: Two products Anti mark and Herbal cream are in the question mark category.
These two are high in market growth rate but low on market share rate. There is insurability
whether these brands will make it in the market or just die out but still a lot of money is going into
promoting it.
Cash Cow: This is the category which brings in pure money. Pure, in the sense that it does not
have the need for further investment in order to hold the market share. Yes it still does require
promotions every now and then in order to keep the user aware of it. The first FAL product the FAL
fairness cream falls comfortably into this category. It is the cream which is still widely used.
Dog: This is the category where the product has died out, or not bringing in enough money. This
category has low market growth rate and low market share. FAL had introduced a Fairness soap
which did not do that well. Pakistani consumers did not respond much to the soap as Indians did.
12
Marketing Research
Objective
Our objective was to see whether the consumers are satisfied with the current FAL products or
would they like a change. We focused on the usage of FAL fairness cream and looked into how to
improve it in order to fulfill.
The first thing we did was to conduct a survey using a questionnaire. This allowed us to go into the
customers mind and evaluate what characteristics affect the consumers behavior.
Consumer Characteristics
Cultural Factor
Culture is the main cause of a persons wants and behavior. What is in the culture of Pakistan
which makes woman go towards fairness?
Pakistani women have a huge desire to be fair especially in urban areas. A woman who is fair is
looked upon as being intelligent, confident and extremely beautiful. A bonus point for a fair woman
is if she does not have a single blemish on her skin. In most matrimonial advertisements the color
fair is the highlighted part of the womans characteristics.
Social Factors
Women look up to actresses in Pakistan. Famous actresses such as Babra Sharief and Neelam
play an important role in molding the womens personal characteristics. In movies etc fair women
are portrayed as the women in control, women who can make changes and can handle any
situation presented to them.
13
Family also plays an important role. Mothers start grooming their daughters from the day they are
born massaging natural products into their body to make their skin lighter and smoother. Mothers
keep giving their daughters incentives of staying out of the sun and using a number of products for
keeping their skin fair.
Personal Factors
As women mature their needs and wants increase. They look for more innovative ways of keeping
them self up to mark. As a woman grows older and her skin goes through various changes due to
puberty weather etc the products she uses also changes with that.
When a woman or a man go out on a job hunt, they are really particular about their appearance
and their facial texture and color. They use products to make them look presentable. A woman
who has a desk job and no interaction with people would not be as influenced in buying a fairness
product as a woman who is continuously meeting clients would be.
Depending on the paycheck of a consumer shows whether they can afford the product or not. The
product should cater to consumers of all sorts of economical backgrounds.
Psychological factors
When dealing with fairness a lot of psychological factors get involve. A woman who is dark and
everyone around her is dark would not be motivated into buying a product which makes her fair.
But a woman who is fair and lives in an environment where her whole status depends on her
fairness then she in turn would be highly motivated into buying a fairness product.
Some women are comfortable with their skin, they dont look at what people have to say or believe
they go by their own attitude.
14
Consumer Responses
We interviewed some customers in a retail shop and here are some responses of consumers of
FAL and other competitors
Mr. Salim
He does not use any cream even aftershave because of skin problem.
Ms. Nadia
She was using FAL but some one told her that there are some chemicals in FAL which is
not good for skin so she left it
She buys the big jar which costs her Rs.300/ and lasts for about 6 to 8 month
When asked if she would like to change her brand she replied by saying Nivea is complete
I would never change.
When asked about FAL she said it is good but Nivea really works for her
She said if niveas price become high then she may change her product
Ms. Nazish
15
Through word of mouth she had been introduced to FAL and has heard positive responses
of it.
She said the advertisement for FAL are not effecting the product.
She said she does not like creams which have a lot of chemicals inside them like FAL.
She will never switch what ever the incentive will be given to her.
We also used another medium of acquiring consumer responses of people all over Pakistan and
India through a intermediary website www.orkut.com Here are a number of responses in their
original format.
Rohit rohithimself@gmail.com
I have used it, and have found that it really makes u thoda sa fair. it has around 75% market share
in its category, so u can think
Kulsoom Bano" <kookee_110@hotmail.com
i used fair n lovely sometime back but i thnk it doesnt suit to ppl who hav skin of T-zone
but my sis uses it and i can see good affect of it on her face.....my sis likes it as well as ma
cousin..she uses ths cream as foundation sometimes too.
:)
Tahseen Fatima" tahseen_bujju@yahoo.co.in
asak
my sis used it but u know the result will cum only after six months of continious usage...tht all i can
say
16
bye
tahseen
"Sumeet Gupta" <gupta@students.iiit.net>
Hi,
I use fair and lovely and this is pretty good item .
Serwat Ahmed" <jiya_77@hotmail.com
Hi ! Yes i have used it as a sunblock on hands n feet....the imported 1 works better....
17
Competitor SKU
60gm tube Rs.30/60gm tube Rs.70/25gm tube Rs.25/50gm tube Rs.90/-
FAL SKU
50gm tube Rs.50/50gm tube Rs.50/25gm tube Rs.25/50gm tube Rs.50/-
18
Target Marketing
After the company has made its market segments it chooses who they want to target. The following
details are of the market segmentations along with the target.
Geographic Segmentation
The FAL market is divided into two geographic segmentations. Urban and Rural. The Urban areas
contain cities like Karachi, Peshawar, Quetta, Lahore and Islamabad. Rural areas cover most of
Pakistans villages.
Demographic Segmentation
FAL is divided into multiple demographic segmentations.
Age: 18 30
Gender: Female
Income: Class A D. Class A person is someone who has Rs.1500/- in his pocket. People who buy
products from abroad are class A++ people who can afford expensive products but FAL does not
focus on them.
Other demographic groups such as family size, family life cycle, religion, race and nationality do
not come in play.
19
Positioning
FAL wants to position itself in the consumers mind as the product which will change your destiny. It
does not want to survive on the basis of making women fairer instead it focuses on four main areas
of a womans life. These four areas are Money, Education, Marriage and Career.
FAL has already set a trend in the Pakistani market as being the cream used when getting married.
Even though FAL wants to change its image of being just used for marriage it still advertises to
promote its usage in that department. The reason for doing so is because 35% of the market is still
focused on just getting married and no such other desires most of these women lie in the rural
areas.
The second place where FAL is positioning itself is in the Career department. They are now
advertising a woman being confident at her work area by using FAL. This is then giving them a
competitive advantage on those fairness products which just focus on marriage. Taking on into this
department FAL is increasing its sales in urban areas of Pakistan. People want to buy the product
to gain a high position in their courier and to hold the power of confidence in their attitude.
Education and Money are two areas where FAL has not yet penetrated. For future strategy FAL
would like to position them selves in the market as being used to get a good education and making
a lot of money.
20
Assumptions
Prior to developing our marketing strategy for FAL of the year 2008 there are certain assumptions
that we have made and are mentioned as follows:
Looking at the current data of girls being born more then boys, our assumption is that 60%
of the 2% will be girls.
Government will take no major step to reduce the smuggling of cream from Dubai and
India
No new competitor will step in the market, even if so it will be on a smaller scale
(competition for Tibet).
WTO may affect the local FAL in the negative way as Indian FAL and other imported
fairness creams could become cheaper
21
Marketing Objectives
Unilever is currently working on promoting FAL through Marriage and Career. It is focusing more on
Career due to the growing market trend and the thinking of a modern woman. However, FAL is still
focusing on Marriage because 35% of women in Pakistan give priority to marriage and consider it
to be the real destiny in a womans life
FAL does not focus just on dark people. A woman can be fair but living in an environment where
there are others fairer than she is. She can use FAL to be confident and able to move in the
society. But on the other hand, there can be a woman in the village who is dark and everyone
around her is dark so she wouldnt have the incentive of buying FAL. What FAL has to do is work
around those people, understand their mentality and environment and then cater to their needs.
FALs objective is to get a specific variant for every skin type in Pakistan (Any skin type more then
15% of market becomes a cluster). These creams should be made available in different formats.
FAL focuses to have a cream of every category, for example: Day Cream, Night Cream, Foot
Cream, Hand Cream etc.
Unilever wants to market FAL with an image that people do not feel ashamed of using it.
Overall Marketing objectives are to improve market share and extend the product to new markets.
Increase in profits is liable to come along with increase in sales volume. Unilevers objective is to
evolve the product with the growing market and change in market demand (FAL guy). Another main
objective is to make FAL available in rural areas and increase its sale.
22
Market Penetration
New Product
Product Development
Existing
Market
New
Market
FAL in rural areas
Market Penetration: This category is of an Existing Product in an Existing Market. FAL Normal,
Herbal and Anti Mask are all products which are already in the market.
Product Development: This category marks a product which is New but the market is already there.
For example FALs Oil control. Its a new product which is similar to the older one but with some
diversification. This product already has a set market of consumers.
Market Development: The product is already existing but the market is changing. FAL is now going
make it self more aware in the rural areas to increase sales as these areas lacked distribution most
of them are unaware of FAL.
Diversification: A totally new market and a totally new product. FAL guy is going to be the new
product which is aimed at men rather then women.
23
Since our primary objective is to explore and develop the rural market FAL has
planned a few strategies to make its place in those markets.
At the end of May 2009 we will start a campaign in the interior Sindh called, Jaan hai tou
Jahan hai. In this campaign we will hire 5 skin specialists. 3 women and 2 men along with
a squad of 10 helpers. The women of these areas are always in contact with sun and their
skin absorbing high amounts of radiations all day long, so what our specialists will do is
that they will do free check ups of these women as well as men and help them over come
problems which they are facing. This squad of our will spend 3 days in one town and then
move to another and will cover whole Pakistan.
During the summer holidays we will start a campaign in which the women school teachers
from the school existing in that particular area will help us sell our product. The question is
why school teachers and how will they do it? In a small town school teachers are mostly
the opinion leaders they are the people whom everyone looks up to. What these teachers
will have to do is sell 20 packs of FAL per week at discounted rates and they will get a
commission based on the number of packs sold.
We will give out loans to the less fortunate but talented women and promote them to
do fashion designing courses from universities like Indus Valley, Iqra, Textile Institute
of Pakistan and Karachi school of arts. And the exceptional ones will get Designer of
the year awards.
Hip ads
As the face of media is changing and Pakistan is receiving coverage from all
parts of the world there is a huge need for more hip and up to date
advertisements to gain the attention of young consumers and to pull them
away from ads of competitive brands. FAL will go to the best ad agency and
hit the market with breath taking ads. These ads will increase interest in the
rural and urban areas.
24
Distributor
Retailer
Consumer
Complaints
When we visited some retailers they complained about the distribution truck not reaching them on
time and them having to go directly to the whole sale market to get the product.
FAL also provides some retail shops with their name board along with FAL board. This allows FAL
to openly advertise using the retail shops and the retail shops gets the benefit of having a board for
free as well as getting their tax paid by Unilever
25
Contribution
Last months contribution of all the FAL products in the market
FAL Product
Herbal 8ml Sachet
Fairness Jar 60 ml
Herbal 25gm tube
Fairness Big nose tube
Fairness 8ml Sachet
Fairness 25gm tube
Fairness 50gm tube
Herbal Jar 60ml
Cold cream 60 ml
Anti Marks 25gm
Anti Marks 9 ml Sachet
Oil control (not accounted for this year)
Contribution %
4
15
8
4
8
14
19
7
2
7
2
-
Growth Rate %
-5
-32
-35
-10
Analysis:
The result of negative growth rate is because of exports. It was not exported last year so caused
huge negative growth rates.
Pricing
FAL type
8 ml Herbal sachet
TP (distributors)
Retail Price
Rs. / piece
4.335
Rs. / piece
5
26
8 ml fairness sachet
11 ml Big nose fairness sachet
9 ml Antimarks sachet
25 gm Herbal tube
25 gm anti mark tube
50 gm fairness tube
60 ml fairness jar
25 gm Oil control
25 gm Cold cream
4.335
9.04
9.04
27.14
36.19
45.24
54.25
45.24
35.41
5
10
10
30
40
50
60
60
45
Recommendation
27
Appendix
Reference:
Contacts:
Mrs. Farheen Salman, Brand manager, Unilever Pakistan Limited, Ph: 5660062
Mr. Faisal Ali Khan, Territory sales officer, Unilever Pakistan Limited, Ph: 561006
28
Book:
Principles of Marketing , 10th edition, Philip Kotler and Gary Armstrong
Web sites:
http://www.chowk.com/show_article.cgi?aid=00001722&channel=gulberg
http://dailymailnews.com/200405/26/news/city06.html
http://finance.yahoo.com/q?s=UNIL.KA
http://www.unilever.com
http://www.unileverpakistan.com.pk
http://www.pakistanlink.com
Questionnaire
Personal Information
Name: __________________________________________________________________
Age group:
Sex:
1 2-15
Female
16-24
25-35
35-above
Male
29
Residential Area:
_________________________________________________________
Skin Type:
Normal
Dry
Oily
Combination
Beauty Soap
Other
Cream
Fairness
Sun block
Acne
Other
Local
International
Bi-monthly
Monthly
1
More
4
Other _______
Mom
Servant
Other
Please mention the name of the store from where the cream is purchased______________
If given a choice between Care, Tibet and Fair n Lovely which one will you prefer?
30
Yes
Good
Excellent
No
Average
Poor
Results
Packaging
Price
Illustrations
Retail Shops
A retail shop in
Defence Gizri
31
Shelves
32
Distribution Center
33