1. Integrated Marketing Communication
Submitted by
Group 8 - Section B
emamiFAIR AND HANDSOME
Handsome’ brand commands over 30-40% of the
market share in the country.
The ‘Fair and Handsome’ family leads the industry with revenues of over 55 crores,
and sales of 16 crore cases in 2005 alone. ‘Fair and Handsome’ has always projected itself as
an international brand and with presence in 60 countries, truly, Fair and Handsome is a
global brand.
The following integrated marketing plan provides an outline of how ‘Fair and
Handsome’ brand has been successful so far and how it can further consolidate its market
share.
The total fairness market is estimated to be around Rs 900 crore and men’s segment
is around Rs 160 crore
A fair complexion has always been associated with success and popularity. The post
launch research done in India indicated that 73% consumers reported improvement in
complexion, 78% found it to be an effective after-shave moisturizer & 75% found effective
oil control.
Emami Fair and Handsome is targeted at male consumer between the ages of 15-35.
The company expects to sell one million tubes in the next 12 months period.
Through a survey that we conducted and from
secondary data sources, we observed that with
societal perception changing and purchasing power
increasing, it is likely that first time men, of different
Group Members:
ages would increasingly shift their preferences. We
saw the need to extend the product line with the
Mani Kansal(PGP14/65)
introduction of a new variant.
PallaviKumar(PGP14/223)
PreethiRS(PGP14/228)
The report recommends a marketing mix for
the ‘Fair and Handsome’ brand primarily focusing on
RohanKumar(PGP14/237)
the positioning of the new variant. The expected
SurumiAbdulla(PGP14/247)
profit for Fair and Handsome is about 25 % CAGR as
compared to the industry average of 8-9 % CAGR. This
Luigi (IE/14/09)
would help Fair and Handsome achieve a market
shareware of 20% in the fairness market with a
strong foothold in the up coming markets.
Emami’s presence in India

2. GROUP 8 - Section B
2
&H and the subsequent Ad campaign has resulted in
very good sales for the product. The ad campaign
which shows A young man becoming more appealing
to the fairer sex after using the cream for a period of
time has met with immense success (albeit there was
some controversy over the Complexion issue).
The fact that the skin types of men and women
are different and hence deserve different treatment has
been brought out well through the punch line which is
“Being a man, why use a fairness cream meant to be
used by women?” Time and again though questions
have been raised about the ethical issue with respect
to influencing people to go for a fair complexion.
Bollywood Superstar Shahrukh Khan appearing in
the Fair and Handsome ad has boosted sales

3. GROUP 8 - Section B
2.5 Rationale for choosing the brand
Through most of the campaign, Emami’s
banner ads directed participants to a survey. Questions
were tailored for the different markets. In India, “Fair
& Handsome” was already an established product,
so the survey takes a direct approach with questions
crafted to promote the product. In Kenya, though,
Emami had not yet introduced the product, so the
survey was for product research.
Note that two separate, but similar, surveys
were run in India. The answers were resoundingly in
favor of the product; with almost all respondents
saying men should use a fairness cream and 85%
saying they will try “Fair & Handsome”. In the
second Indian survey, 93% of respondents say they
will buy the product and 95% will recommend it to a
friend. I’m not sure if the survey takers were a self-
selecting audience or if some respondents just lied.
In Kenya, Emami learned that Unilever’s
competing product has a 57% market share (at least
among mobile users) and that most consumers use
fairness creams twice a day.
In Kenya, Emami learned that Unilever’s
competing product has a 57% market share (at least
among mobile users) and that most consumers use
fairness creams twice a day.
The “Fair & Handsome” ad campaign ran
from April – June and August - December 2007.
During this period, Emami’s mobile banners were
viewed nearly 8 million times in India and 5
million times in Kenya. The banners received an
average click-through rate of 2.69%.
Emami bid 1 US cent per click. The eight-
month campaign cost about US$4k. That’s about
US$ 495 per month or US$16.50 a day.
CAMPAIGN RESULTS: Emami set out to increase awareness of the
“Fair & Handsome” brand and to collect consumer contact details. Nearly
1800 mobile surfers completed Emami’s surveys; some 1450 provided
accurate mobile phone numbers. Not taking into account banner views,
increased market knowledge and heightened publicity, that’s about 36
US cents per contact.

4. GROUP 8 - Section B
3. Brand Performance Evaluation
3.1 BCG matrix of Emami’s product
ked 1st.
Said AdityaAgarwal, director of Emami group, “Men now
contribute to about 45 per cent sales of his Rs 10-crore Emami Naturally
Fair brand. Fair and Handsome is worth
Rs 45 Crore now commanding a market
share of over 30-40% in the segment.”
Considering the above facts - a
high growth men’s skin care segment v/
sEmami Ltd. value share increase in
2008, on account of the strong
performance of Emami Fair &
Handsome with 30-40% of total market
share. As per the BCG Matrix, it falls in
the ‘Star’ Quadrant.
.
BCG matrix for Emami’s F&H

5. e to western culture through various media. The
market for this product is in the urban areas & semi urban areas - defined
by the emergence and increasing acceptance of metrosexuals.
Though the penetration and consumption is low, the product is
widely available in most retail stores (large or/and independent Kirana
stores) where the consumers avail the product. The product is purchased
under influence of the perceived value the consumer attach to fair skin
which is reinforced by trend that advertising create and peers. The
consumer may have a tendency to use the product on a regular basis,
the assortment of similar products that a consumer purchase is low.
Emami has competitors in the
mens fairness cream segment
(Source: Euromonitor International from National Statistics)
Population Age Shift 2000 and 2020, Each Column
Represents a Single Age Group
According to the above chart by 2020 over half of all Indians will be less than
29 years of age. The first waves of these young people are already entering
the work force. Basing on McKinsey & Co report called ‘The Bird of Gold:
The Rise of India’s Consumer Market,’ where it is predicted that India will
become the world`s fifth biggest consumer market by 2025 driven by buoyant
incomes and high GDP growth rate. The future of Indian men’s grooming is
set to be one of diversification, with major players investing heavily in
advertising to raise consumer awareness and erode residual stigma surrounding
the use of products such as Emami F&H.

6. GROUP 8 - Section B
3.4 Market analysis
3.4.1. Merger and Acquisition:
Emami group merged with its marketing company JB Marketing & Finance
Ltd. and acquired Zandu Pharmaceuticals Works Ltd in late 2008. Consequent
to the merger & acquisition will be Emami’s intent on increasing its consumer
base by foraying into new product areas as well as strengthening and diversifying
its current product consumer expanse.
3.4.2. Distribution Network:
Presently, the company covers all states and union territories in India with over
2500 distributors, direct coverage of 400,000 retail outlets and 1200 sales force.
Emami can enhance leverage value out of supply chain, sales, distribution and
human resource capabilities towards the purpose of consumer penetration in
rural areas of India as well as capture more consumers in the urban/semi-urban
areas.
3.4.3. Export Growth:
Emami Ltd exports its range to 53 countries, including Nepal, Sri Lanka, the
Gulf countries, Europe, Africa and the Middle East. The company’s overseas
subsidiary companies include Emami UK Ltd and Emami Bangladesh Ltd.
Emami Fair &Handsome can give be a potential source of long term sustained
growth.
3.4.4. Strong Market Growth:
In Men’s Grooming Products market, Men’s skin care saw the fastest growth
in 2008, of 37% in current value terms, to reach Rs888 million. Men’s skin
care is expected to be by far the fastest growing subsector over the forecast
period, with predicted total constant value growth of 267%. The Indian obsession
with fair skin is expected to continue well beyond the forecast period, and the
launch of new brands will serve to reinforce this trend. In such a scenario,
Emami can invest in extensive & effective advertising and brand positioning
of the product, which can influence consumers in switching loyalties.
3.4.5. First Mover Advantage:
The brand performance of Fair & Handsome drove Emami to its largest value
share to 4% in 2008. The company by offering smaller pack sizes for Fair &
Handsome has enabled capture of a wider consumer segment. The company
can leverage on its technological leadership and brand presence and capitalize
on this opportunity. Emami must also take serious note on launch of new
products by other companies and counter measures should be to introduce
products that move beyond skin whitening and focus on facial washes, anti-
ageing, etc.

7. GROUP 8 - Section B
3.5. Competitors analysis
The major competitor cosmetic companies are:
· Dabur India Limited
· Marico Limited
· Godrej Consumer Products Limited (GCPL)
· Hindustan Unilever Limited (HUL)
· Procter & Gamble Hygiene & Health Care Ltd.
The major players have kept the prices of the product steady or if increased is well below the inflationary
rate. But there is a clear indication of resurgent marketing activity launched by most of the major players the
past few years. Most notable being the 2008 launch of Aviance Men’s Solutions (complete range of men’s
skin care products, offering multiple benefits, such as anti-ageing, facial cleansing and skin whitening) by
HUL and extending FAL into men’s category with a variant Menz Active, Procter & Gamble’s merger with
Gillette in 2008, CavinKare& GCPL significantly gearing up to export its fairness cream to Middle East,
Africa and Europe or players to focusing strongly on improving distribution in supermarkets/hypermarkets
as a means to reach out effectively to their target market. All these may become a combative initiative that
may prevent Emami F&H from gaining more popularity in retail markets which can lead to decreased sales
of F&H and encourage consumers to shift to the rival brands. To counter this, Emami need to aggressively
market through advertising to create more brand awareness among the consumers and improvise its
distribution channels to include direct sellers.
3.5.1. Increasing Entry:
There is an increasing entry into the Fairness cream market; most being well established cosmetic companies.
FMCG major Dabur entered the fairness cream with its ‘Uveda’brand. Nivea, Garnier and Lo’real also have
moved into this segment adopting a promotion strategy of aggressive push in outlets that offer visual
positioning to consumers. Such entry eats into sales and market share and can force Emami to cut prices or
offer additional incentives to the consumers.
3.5.2. Increasing Cost of Raw Materials/Price Sensitivity:
The margins are coming under pressure, due to rising input costs and inability to increase product price. As
men’s grooming is still in its nascent stage, companies have focused on more on expanding their share and
reaching out to a wider spectrum of consumers.
3.5.3. Counterfeit & Unorganized Sector:
The phenomenon of counterfeit product on the borrowing of logos, names and package design of well
known brands by small unorganized production units is not new in India. To tackle the issue the company
can invest more in advertising in consumer education and to help distinguish the originals from counterfeits
may also employ the use of serial numbers and/or holograms etc.
3.5.4. Global Economic Meltdown
Since products such as men’s skin care and hair care are not daily necessities, the impact of downturn in the
Indian economy could, significantly undermine growth of men’s grooming product. This may affect the
sales. To tackle this Emami may need to invest time and capital to change and overcome negative consumer
attitudes to male-specific toiletries and clever marketing strategies. For Emami to stay ahead of the downturn,
it is important to convince male consumers of product efficacy because men are far more likely to be brand
loyal than women once they find a product they like, and which works for them.

8. GROUP 8 - Section B