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8/4/2019 pr report
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1
Personal Care Industry in India
The Indian personal care industryhas taken rapid strides inthe last few years, moving
towards premium products incorporating specialty ingredients in their
formulation.However, a comparison with per capita consumption in China reflects the
largely untapped nature of the Indian market. Favo urable demographic factors andincreasing beauty consciousness indicate high future demand for personal care products
and specificallyfor active ingredients. Industry participants need to build greater awareness
and distribution reach and develop products tailored for the Indian market. Key trends,
including nanotechnology and green chemistry besides others, will influence their
strategies.The eventual winners would be those who ensure bet ter value offeringsto meet
the needs of the Indian consumer.
The personal care market in India is estimated to be worth $ 9-bn by 2014.In 2009 it was $
6-bn. Personal hygiene products (includingbath and shower products, deodorantsetc.), hair
care, skin care, colour cosmeticsand fragrances are the key segmentsof the personal care
market.
The skin care market is relativelysmaller and is growing at a high ratewhile moving awayfrom basic creamsand moisturizers to specialized productssuch as anti-wrinkle and
darkcircle removing creams. For example,the anti-ageing segment, though only 2% of the
skin care market, has beengrowing at a rate greater than 90% p.a.over the last few years.
Key trends and growth drivers in India.
As in other parts of the world, thedriving force behind personal careproducts has evolved
considerably inIndia. Starting from purely health notionsand moving on to fitness, thecurrent trend is towards well-beingcoupled with beauty. In an effort toadapt to these
changes, the industryhas moved from basic products, suchas soaps, shampoos and hair oils,
tofunctional products, such as cold creams, and now to specialized products,such as sun
block lotions, bodyexfoliating creams and skin whitening& anti -ageing products.
The sizable Indian population basewith rising disposable income offersthe personal care
industry a burgeoningmiddle class to market a large varietyof consumer products. As
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comparedto China, India has a higher personaldisposable income per householdand a
growing population ofwomen in the 25-44 age group, the keyconsumer segment.
However, China spends almost 10times as much on skin care, six times asmuch on cosmetics
and more than twotimes on hair care on a per capita basis.These figures indicate the huge
unrealizedpotential of the Indian market.
Several social, market and industrytrends signal the possibility of Indian personal care
industry realizingthis huge potential in the near future.Increasing urbanization, rising
participationof women in urban work forceand growing importanc e of looks andpersonal
grooming, not only for personal,but professional reasons, aresome of the key social drivers.
Markettrends like spread of organized retailto Tier II cities, development of non-traditional
segments like mens cosmetics(with products like hair gels and fairness creams) and
development ofwide range of products at differentprice points are all factors, which
could contribute to the growth of thedomestic personal care market. Industrytrends like
increasing competitionwith entry of large MNCs, increasedbrand building and customerawarenessinitiatives by companies are acceleratinggrowth. Subject to sustainedoverall GDP
growth rates of ~8-9% p.a., the overall Indian personalcare market has the potential to
growat 15%-16% p.a. (much higher rates forselect segments like colour cosmetics,skin care
and deodorants) and therebydouble to ~$8 -bn by 2012-13.
Source: Morgan Stanley Report, CIA World Fact Book
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Some more factors affecting this industry
Natural and herbal-based products find traction
During 2010, companies quickly ramped up the introduction of herbal, traditional ayurvedic
and mineral ingredients in cosmetics, as a means to monetise the current desire of
consumers to use natural-based products. The positioning of these ingredients was also
subtly changed from a rather traditional and old-fashioned platform to modern healthy
practice, leading to greater social acceptance and higher sales through the year.
Mens grooming takes off
With men becoming more comfortable with the notion of look ing good, awareness of mens
grooming products increased further in 2010. Apart from the usual categories of pre -shave
and razors, mens skin care, this promised fair and blemish-free skin, performed well. Every
major brand used Hindi movie stars for instant recall and acceptance. In addition to looking
good, smelling good is another important factor for men, which has driven growth in mens
deodorants.
Direct sellers make deep inroads
The market share of direct sellers, both multinational, for example Amway and Oriflame,
and domestic, for example Modicare, rose in 2010, as a result of concerted efforts to bring
in new products in colour cosmetics and skin care to create interest and excitement, as well
as the expansion of networks to reach more consumers in smaller cities. Major players like
Amway and Oriflame also started advertising, as they judged that they had reached critical
mass in terms of their networks, which would create pull if they advertised.
Steady growth forecast for beauty and personal care
All the factors that support good growth in the forecast period are in place a modern
retailing landscape providing the right ambience and target audiences, higher education,
sustained branding and good economic growth giving consumers more money to spen d.Premium products are projected to grow faster, as an increasing middle class consumer
base aspires to use more expensive products. In addition, sales of value -added products in
the mass segment are expected to increase, driven by convenience and efficacy, which will
help to boost overall value growth in the forecast period .
Major players of the Skin care industry in India
HINDUSTAN UNILEVER Ltd.
y Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods
Company, with over 20 distinct categories in Home & Personal Care Products and
Foods & Beverages.
y The companys Turnover is Rs. 17,523 crores (for the financial year 2009 - 2010).
y Major skin care products are:
y Fair and Lovely, Lakme, Ponds and Vaseline
y Breeze, Dove, Hamam, Lifebuoy, Liril, Lux, Rexona and Pears.
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Emami as a player in Personal care industry
Emami Limited is one of the fastest growing ayurveda-focused, health, beauty and personal
care product companies in India today.
They are in the field of manufacturing of health, beauty and personal care products for over35 years. Through the efforts of a team of committed and competent personnel, we strive
for continual improvement in our quality performances.
Headquarter: Kolkata
Manufacturing plants: Kolkata, Guwahati , Pondicherry , Vapi, Pantnagar, Talasari and
Silvassa,
Manufacturing facilities with cGMP and ISO 9001:2000 certifications .
Important Product Categories Manufactured
They have a portfolio of over 30 products derived from select and effective ayurvedic,
natural and herbal ingredients. Their main product categories consist of the following:
Hair Care
Skin Creams , soaps and lotions
Talcum Powder
Ayurvedic Health Care Products
Various Brands
Emami believes in building categories by meeting unfulfilled consumer needs. Emami
Limited has over 25 brands under its portfolio. The focus is on providing the consumers with
innovative products which are capable of meeting their multiple needs and add va lue by
enhancing the quality of life. Through innovative and power brands, Emami touches the
lives of all consumers, spanning across various income groups in both urban and rural India.
Emamis success story is not only weaved around the holistic healing s ystem of ayurveda,
but also in its product innovation, dynamic and focused leadership, a strong supply -chain
management and unwavering commitment to partners and stakeholders. The popular
brands like Boroplus, Navratna, Fast Relief and Fair and Handsome are an outcome of
deeper understanding of Indian consumers. A brand is a commitment to consumers and in
Emami, its brands are a synthesis of innovation, cutting-edge technology; product efficacy
and intelligent pricing that have made them the peoples choice.
Baby Massage Oil Mentho PlusMalaiKesar Cold Cream
Boroplus Antiseptic Cream Navratna Cool Talc
Fair and Handsome Navratna Extra Thanda
Hairlife Navratna Oil
Himani Fast Relief SonachandiAmritprash
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Brand Fair & Handsome
Emamis presence in skin care segment of personal care is with Fair &Handsome.In the
segment it is the market leader with 66% of market share.( on august 2011-data from
economics times)
Fair And
Handsome Product ideology:Emami created acompletely new market segment inintroducing
Indias first fairness creamcustomised for men.
Product attributes:Emami (incollaboration with Activor Corp.)created a unique fairness
cream formen with a breakthrough Double Strength Peptide complex patented inthe
US. This wonder peptide works onthe collagen structure of male skin,
visibly improving skin texture andfairness in just four weeks. Containsliquorice, vetiver
and aloe vera, itspleasant cooling sensation provides arefreshing after -shave effect.Major players:Competitors includeNivea Whitening, MenzActive,Fair One Man and Set
Wet Get Fair.
Product differentiation: The productimproves fairness in four weeks,regulates melanin
production andprovides a natural sunscreen againstUV rays. It moisturises the skin,
leaving it fair and fresh with a coolingsensation.
Brand strategy:Compared towomens skin male skin is thrice more exposed to the
suns UV rays, fivetimes more exposed to pollution andtwice more exposed to stress.
Besides,research revealed that more than 30%of fairness cream users were men with
a growing interest in personalgrooming. For instance, an Indian malespend an average
20 minutes in frontof the mirror each morning comparedwith the average Indian
womans 18minutes [Source: Gillette India],prompting the Company to developafairness cream for men now agrowing market in the country.
Advertising:The Company investedaggressively in brand promotion.It enlisted Shah
Rukh Khan as thenational brand ambassador and actorSurya as the brand ambassador
for Tamil Nadu and adjoining states.
Competitive edge:The brand the first to introduce a fairness creamfor men
captured consumer mindshare. The enlistment of Shah RukhKhan as brand
ambassador enhancednationwide brand recall.
Analysis
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Segmentation
Metro sexual is a word describing men who have a strong concern for their aesthetic
appearance, and spend asubstantial amount of time and money on their imagesand
lifestyles. The look cool culture is becomingepidemic among the Indian youth. Today the
CompleteMan is more popular than Marlboro Man. Genderstereotype boundaries are
blurring and men do nothesitate to exhibit their feminine side.
HLL never imagined that men could want to be fair andhandsome, or their researches were
all around womenso they didnt find out men used it too. Or they knew,but didnt see a
need to have a special cream for men.E mamisresearch found that out.Emami went for
serious customer research which showed that 25-30% of customers of Fairness creams were
men. That customer insight paved way for a specialized brand for men .
In 2005, with the launchof F air and Handsome (FAH), E mami became the firstcompany in
India to launch a fairness cream exclusivelyfor men. As a category creator, E mami has gone
anddisrupted the way male grooming is being treated in thiscountry.
Targeting & Positioning
Initially the brand was positioned as a fairness cream formen who wanted to look good andwere erstwhile usersof womens creams. Emami also marketed its product by emphasizing
that womens creams did not work onmen because of the differences in their skin types,
andthe differences in the conditions to which they wereexposed on a daily basis. Since FAH
was a categorycreator such a strategy was probably justified at that time.
The current positioning strategy of FAH gives theimpression that the users lack confidence,
feel insecureand possess low self esteem. In the process the brand isrepelling a lot of self
assured men who want to take careof their skin rather than merely attract women. They
might want to do it for career related needs or merely forthe feel good factor. Hence it
might help to grow themarket for FAH if the brand addresses the host of issuesfaced by men
rather than merely being attractive to girls.FAH by default is restricting itself to the
Fairnessproposition. Even when it is addressing the issue offairness, the bra nd needs to
project itself as anaspirational brand a brand for winners rather than forlosers.
With times there is always a need tolook at changing requirements in the present scenario
with long term focusfor the success of any brand/product.
Target for Fair and Handsome should not berestricted to teenagers/ college going students.
There seems to be a high potentialfor the product to grow across age groups and not
beinglimited to teenagers. Indian youth being not financially independent at an early age
(below 21years of age) may restrict the usage of the product to anextent.The post launch
research done by E mami also supportsthat the product may appeal to men, due to
differentproduct benefits, across different age groupscategorised as youth.As a result, it
should not be considered as a productprimarily for teenagers. It can be extended for
youngmen in urban areas.Therefore,considering the long term perspective the product
shouldbe marketed for youth in general with a common mantheme which can appeal to all,
in the market who wantto look handsome or are looks conscious.Present positioning takes
two stands as per the nameof the product i.e., being fair as well as being handsome.This
positioning is not emphasizing the fairness part onlyas indicated by saying Hi Handsome
though theconcept of being handsome is associated with gettingfair after the use of the
cream. Here positioning standcan be the personality of the user that may come out tobe an
effective positioning. Taking into considerationthe previous contro versies towards the
advertisementsfor females fairness cream and the report from medicalfield, no false or
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y Soon th ! Go " iChittiB # hoo ph ! no$ !
non is going to hit Men b%
gro&
ing demand for a Gora
ChittaJamai - Shobha De
y Men are also under pressure to loo ' better - Prahalad ( akkar
y Most dark-skinned men are as insecure as women and go to equal lengths, albeit secretl)
,
to achieve lighter skin 0 - 1 ditor of men's magazine, Man's World, Jerry Pinto
Product
Emami in c2 3 3
aboration with Activor Corp, USA has create4 a unique fairness cream for men
Fair And Handsome "Peptide complex patented in the USA" . This wonder molecule peptide
works on the collagen structure of male skin and dramatically improves skin te 5 ture and enhance
skin's natural tone and give it a beautiful glow. It also gives pleasant after shave eff ect. Face the
day with a natural glow.Important f eature of the product is its unique 5 power fairness system.
y Double strength peptide complex-eff ectively penetrates tougher male epidermis to
regulate melanin production.
y Sunguard-counter over e 6 posure of male skin to sun and UV rays.
y Anti bacplus-protects skin against pollution and darkshadow caused by daily
shaves,nicks and cuts.
y Stress buster-remove dead cells and rejuvenate skin.
y Herbocool-makes skin fair and fresh with a present cooling sensation.
These is the chart on the website of the brand which gives us the thought process of
brand.
A market leader must be potentially aware of flank attacks on its authority. As
change becomes the name of the game, even brands like FAH had to innovate by
off ering new benefits to the customers.Emami in collaboration with ActivorCorp.,USA,has created a unique fairness cream for men with a breakthrough fast
action Lumino Peptide(trademark) to make skin fairer in just 3 weeks(previously it
was 4 weeks)This was developed by USA based DR C.Zaveri,renowned skin e 7 pert
and protégé of 2 times nobel prize winner,in collaboration with Indian herbalists and
dermatologists.Currently the f eature of the product is its 5 action fairness system
for tough male skin
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1. Fast action Lumino Peptide(tm)-penetrates deep int tough male skin,making
it fairer in 3 weeks.
2. UV Block-Protects skin pigmentation caused by UVA/UVB rays,dirt and
pollution.
3. Mark Free-Removes blemishes caused by shaving cuts and bruises.
4. Protein Booster-Improves texture,reduces wrinkles and smoothens skin.
5. Glow Plus-Makes skin glow with Vitamin E & A.
Still Emami had to shift the focus from fair skin to healthy skin. Over focuson fairness is
myopic. Every man, irrespective of hiscomplexion, needs to keep his facial skin healthy. FAH
is a cream with multiple benefits and positioning it justas a fa irness cream is myopic. A
beautiful face is a dream of all men.Health and beauty are the two cherished values by all
men and are broader and holistic than fairness. Emami therefore launched new products
under FAH with different features to take care overall needs of skincare for men rather than
only fairness.
1)EMAMI FAIR AND HANDSOME ADVANCED FAIRNESS AFTER-SHAVE BALM
The double-strength Peptide Complex activated unique 5 Power fairness
system with Hydra-Comfort delivers 5 Unique benefits:
MOIST 8 RISES: Hydrating formula maintains the skin's natural moisture balance and keepsitsupple.
SOOTHES: Unique Hydra-Comfort formula soothes rough skin and eases the shaving
irritation.
WHITENS: Penta-peptide complex influences the melanin synthesis to whiten skin tone
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Dark
REFRESHES: Soothing herbal actives cool, refresh and provides comfort from razor burns.
PROTECTS: Antibac Plus reinforces skin's natural resistance to promote the healing of minor
nicks & cuts from shaving.
2)EMAMI FAIR AND HANDSOME ADVANCED WHITENING FIRMING FACE MASK
The double-strength Peptide Complex activated unique 5 Power fairness system with Nutra-
Tone delivers 5 unique benefits:
FIRMS:UniqueNutra-Tone formula absorbs excess oil & impurities as it clarifies and firms
dull lifeless skin, stimulating cellular renewal.
MOISTURISES: Hydrating formula soothes & maintains the skins natural moisture balance
and keeps it free from stretching.
WHITENS: Penta-peptide complex influences the melanin synthesis to whiten skin tone,
reduce blemishes and dark shadows caused by daily shaving to improve skins clarity.
REFRESHES: Soothing herbs cool, refresh and comfort dry irritated skin.
PROTECTS: Antibac Plus reinforces skin's natural resistance to combat action of
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pollution&climate on skin.
3)EMAMI FAIR AND HANDSOME ADVANCED WHITENING REGENERATING
FACE-SCRUB
The double-strength Peptide Complex activated unique 5 Power fairnesssystem with MenthaCryst and Aluminum Oxide micro-particles providedermabrasion &
delivers 5 Unique benefits:
MOISTURISES: Hydrating formula keeps skin moist and soft preventing irritation and skin
stretching.
POLISHES: Unique blend of MenthaCryst& Aluminum Oxide micro -particles provide
dermabrasion which polishes and refines the skin texture for ultra smooth skin, while
exfoliating dead skin cells.
WHITENS: Penta-peptide complex influences the melanin synthesis to whiten skin tone,
reduce blemishes and dark shadows caused by daily shaving to improve skins clarity.
REFRESHES: Soothing herbs cool, refresh and comfort dry irritated skin.
PROTECTS: Antibac Plus reinforces skin's natural resistance to combat action of pollution &
climate on skin.
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4)EMAMI FAIR AND HANDSOME ADVANCED WHITENING REFRESHING
FACEWASH
The double-strength Peptide Complex activated unique 5 Power fairness system with Nutra-
Fresh delivers 5 unique benefits:
MOISTURISES: Non-drying soap-free hydrating formula keeps skin moist and soft,
maintaining the skins natural moisture balance and keeps it free from stretching.
CLEANSES: Removes deep impurities & dirt to visibly brighten skin, improve clarity and
prevents clogging of pores.
WHITENS: Penta-peptide complex influences the melanin synthesis to whiten skin tone,
reduce blemishes and dark shadows caused by daily shaving to improve skins clarity.
REFRESHES: Nutra-Fresh cools & refreshes while maintaining the skin's natural moisture
balance.
PROTECTS: Antibac Plus reinforces skin's natural resistance to combat action of pollution
and climate on skin.
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5)EMAMI FAIR AND HANDSOME ADVANCED WHITENING DAY-LONG
MOISTURISER
The double-strength Peptide Complex activated unique 5 Power fairness
system with AquaXyl delivers 5 unique benefits :
MOISTURISES: AquaXyl delivers extra moisturising all-day long. It refreshes and keeps skin
smooth & supple.
SUNGUARD: Active UVA / UVB filter counters overexposure of male skin and protects from
darkening and premature ageing.
WHITENS: Penta-peptide complex influences the melanin synthesis to whiten skin tone,
reduce blemishes and dark shadows caused by daily shaving to improve skins clarity.
HERBOCOOL: A unique blend of herbal actives extra-cool the skin and keep it fresh all-day
long.
PROTECTS: Antibac Plus reinforces skin's natural resistance to combat action of pollution &
climate on skin.
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Place
Initially the product was launched inAndhra Pradesh then in Karnataka and then nationally
within a span of five months.Initially Fair & Handsomehad chosen channels likeKaya Clinic
and Army Canteens, which shows it focused on high profile people and positioned itself as a
premiumbrand.Currently both Emami and HLL have beenzeroing in on both the urban and
rural marketsfor the mens fairness products. At some stageEmami will need to further
differentiate FAHfor the rural market with its distinct psychosocial and physical environment
(for instancefar greater exposure to the sun). This should alsobe accompanied with a
differentiated pricingstrategy and one week use sachets to promotetrial purchase.
Price
Fair and handsome Unique 5-Power Formula was priced at Rs. 68 for 60gms.
Fair and handsome with Active lumino peptide is priced at Rs 79 for 60gms and Rs 40 for
30gms and Rs 8 for 9gms.Where Vaseline Men is priced at Rs 75 for 30gms and fair and
lovely max fairness is priced at Rs 78 for 50gms.
PromotionEmamibecame the first company in India to launch a fairnesscream exclusively for men.
Because Fair and Handsome(FAH) was a category creator, its launch was supported
by heavy promotion. The theme of the companysadvertisements revolved around bringing
out the fact thata large number of men used womens fairness creams.Promotional
strategies used FAH till now shows that users lack confidence and feel insecure if they are
not fair.It repels a lot of self assured men who want to use the product for skincare,career
related needs or for feel good factor.Only issuing fairness proposition is restricting the
brand,but with new range of FAH products for skincare we have to wait for their promotion
theme.In their latest advertisement they improved the postioning by showing that career
opportunity may enhance by using the product but how can fairness and career be related is
again an issue and it was showing that the product is for losers and not for winners .InOctober 2007 Emami organized Mr Handsome Contest for the first time in India.During the
launch Mr. Mohan Goenka, Director, Emami Group of Companies said We at Emami have
always spotted trends inthe male grooming segment and have tried to imbibe them to
enhance our productportfolio for men. This contest will not only set industry standards
when it comes to theconcept of male looks but also when it comes to influencing this
segment. To begin with,we have started Emami Mr Handsome Contest from Mumbai this
year but since thiscontest is our intellectual property, we very soon plan to take it national.
Men have every right to demand a skin-lightening cream if they need it. But the key issue
is the way it is advertised. Is there a way to advertise askin-lightening cream by not making
any MAN feel like hes a loser if hes not fair?Use of fear of rejection has been a popular
advertisingstrategy for many personal care products. However, inthis segment of fairnesscreams where the issue goes intodebates over racist mindset it might be important for
Emami to take a few lessons from the West in thepromotion of such products.The only
difference is in the west it ismarketed more subtly: You dont have to wait till
summer to have beautiful skin vs. an advertisement which equates fairness with
automaticsuccess both in career and romantic lives.Consumers know that complexion is
genetic and cannotbe drastically changed through a topical cream. Thus E mami needs to
focus on the overall facial beauty andpersonality of the men. How the confidence and
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selfesteem can be enhanced by grooming well need to befocused. As a socially responsibly
company, E mami
should avoid the deliberate attempt to make darkcomplexioned youth feel inferior. The
focus should beon grooming, beauty and health rather than oncomplexion.
The initial campaign of Fair and Handsome didntuse any celebrity appeal. However, in the
recentadvertisements also Shahrukh Khan is not a celebrityendorser in true sense. It can be
said that through recentthe advertisements Shahrukh Khan is associated with Fairand
Handsome campaign as an advisor. He himself isnot using the product in the advertisement.
He is ratherrecommending it to other men to use Fair and Handsomeinstead of any other
fairness cream meant for females.But on the product packet it is printed Use Fair and
Handsome like me-Shah RukhKhan.Using celebrity appeal for FAH was highly criticised.On
25th
September,2007 criticism also hit BBC news.Some points of the article by
NareshPuri,BBC News were as such "Shahrukh Khan is a huge star in India and his
endorsement will no doubt raise the profile of this product," he says. "Impressionable young
men will get the idea that if they want to be attractive like him, they should also use it. The
cult of media personality, especially cricket or Bollywood stars, is a much bigger phenomena
in India and so brands are much more partial to celebrity endorsements. But what SRK is
essentially doing is confirming and promoting the condescending attitude that many Indians
have towards dark-coloured skin. His endorsement is completely immoral.Neither the
manufacturers nor a spokesman for Khan would comment on his involvement in the
campaign. A major Bollywood star backing a skin-lightening cream will intensify the
prejudice that already exists within the South Asian community, in which the darker skinned
can find themselves looked down upon - just as it still happens in parts of India today.
We feel that nodirect celebrity endorsement should be done for thecream. It should be with
the common man only. Thiswill help the people to link well with the product. The important
thing is to connect the people with thebenefits of the product in the right and
logicalperspective.Communication through packaging is well handled.Details on the role of each ingredients and the frequency and duration of use are explained clearly.
For FAH Men skin care they have a very good website and a facebook page.
Immediate future actions to be taken based on above analysis.
y Avoid over focus on fairness.
y Slice of life ads from other crucial moments
of Males life need to be used.
y Look beyond youth segment.
y Launch line extensions based on skin types.
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References
W ebsites
y http://www.fairandhandsome.ae/home
y http://www.fairandhandsome.net/
Journals
y VISION²The
Journal of Business Perspective l Vol. 11y Chemical Weekly, October 2009.
Articles
y The economic times.
y Business line.