Date post: | 14-Aug-2015 |
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EMAMI FAIR & HANDSOME
Submitted By:-
Usha Suryawanshi
PGP29328
Established in 1974, the Company was promoted by Mr. R.S. Agarwal and Mr. R.S. Goenka.
Annual turnover of USD 369 million in 2014-15
Presence in more than 59 countries including GCC, Europe, Africa, CIS countries and the SAARC nations
Emami has a market capitalization of USD 3.8 billion
Emami has an extensive distribution network with 34 lakh retails outlets and approx. 2800 distributors.
Domestic Business and International Business growing at a 5 year CAGR of 16% and 18% respectively
Emami Group is one of the leading & fastest growing personal and healthcare businesses in India.
PRODUCT PORTFOLIO
EMAMI FAIR & HANDSOME
Emami launched Fair & Handsome in October 2005, first fairness cream for men in India
Ranked 22nd among India’s most trusted brand in Personal care by Brand Equity Survey, 2014
Emami Fair & Handsome is growing at a CAGR of 15% since last 5 years
Fair and handsome constitutes 59% (USD 34.81 Million) of men’s fairness cream category in India
Research revealed that 30% of women’s fairness cream users were men
Emami leveraged the untapped market opportunity in the Men’s Fairness Category
Product Name
Market Size (USD
Millions)
Product category
Composition(%)
Market Share
(%)2015
Navratna Oil 117 21% 65
Boroplus Cream 69 14% 76
Fair & Handsome 59 9% 59
Navratna Cool Talc 69 5% 27
others 51% Total Revenue
(2015) 369 100%
Personal Care category of Emami is worth USD 369 Million. Emami fair and handsome contributes 9% of the overall revenue of the company. Men’s fairness cream category in India is worth USD 59 million of which fair and handsome constitutes 59% of
the market share. Fair and handsome is the market leader in Men’s fairness cream category, consistently over the past 5 years.
PRODUCT CATEGORY BREAK-UP
21%
14%
9%5%
51%
Product Category Composition
Navratna Oil
Boroplus Cream
Fair & Handsome
Navratna Cool Talc
others
Source: Annual report of Emami group for year 2010, 2011, 2012, 2013, 2014, 2015, Investors presentation
2012-13 2013-14 2014-150
500
1000
1500
2000
2500
1699 18212217
Revenue (in INR Crore)
Financial year
Re
ve
nu
e
Financial Year
Revenue (in INR Crore)
YoY Growth (%)
2012-13 1699 14.42
2013-14 1821 6.69
2014-15 2217 17.86
Emami regained its growth momentum in 2014-15 by recording a rate of 17.86%
In year 2013-14, there was a decrease in the growth rate compare to the previous year
REASON FOR DECLINE IN GROWTH1) Launch of similar product from the big market players in FMCG sector.2) Aggressive marketing strategy by competitors leading to stiff competition.
Emami showed a growth in the last 3 years with a CAGR of 23.36%
COMPANY GROWTH
Financial Year
Total Market Size (in USD) million
YOY Growth
2012-13 62 -
2013-14 54 -15%
2014-15 59 7%
CATEGORY GROWTH
Market size of Men’s Fairness cream experienced a slump in growth from 2013-14 resulting in negative growth rate(-15%)
The decrease was due to substitution of fairness cream with similar products launched by competitors
The segment further flourished with the increase in 7% in the year 2014-15.
2012-13 2013-14 2014-15505254565860626466 62
54
59
Category Growth (Men's Fairness Cream)
Financial year
Mark
et
siz
e
Source: Annual report of Emami group for year 2010, 2011, 2012, 2013, 2014, 2015, Investors presentation
2012-13 2013-14 2014-1556
57
58
59
1.451.51.551.61.651.71.75
1.57
1.721.69
Brand Growth
Market Share (%) YoY Growth (%)
Emami Fair and Handsome, stayed the market leader in Men’s Fairness Cream category.
From last 3 years, the market share for Fair and Handsome increased and reached to 59%.
The growth rate of brand fell because entry of new market players
Financial Year
Market Size (in USD)
millions
Market Share (%)
YoY Growth (%)
2012-13 62 57 1.57
2013-14 54 58 1.72
2014-15 59 59 1.69
BRAND GROWTH
FRAME OF REFRENCE
• Double-strength peptide complex
• SunGard: (UV block) double power sun-guards counter overexposure of male skin to sun
• Anti-Bactiplus
• Stress-buster
• Herbo-cool
POINTS OF DIFFERENTIATIONPOINTS OF PARITY
• contain hydroquinone: chemical to help attain original colour of skin.
• Kojic Acid, a vitamin C derivative with characteristics to block melanin production in the skin.
• Magnesium peroxide
• Retinoic Acid, a vitamin A derivative which helps peel off the surface layers of skin, thereby getting rid of dark pigmented skin cells
TARGET SEGMEN
T
PRODUCT
PLACE
PRICE
PROMOTION
MARKETING MIX
TARGET SEGMENT
Men Age group (15-35) Men conscious of their appearance Value for money
Desire a dedicated product for men’s fairness at affordable price
Middle class/ Upper class
PRODUCT(Functional Benefits)
Double strength Peptide
complex
SPF 15
Vitamin B3
Anti – Bacterial agents
Nutra Complex
Micro sweat
absorbers
Liquorice Extracts
PRODUCT(Emotional Benefits)
Fair skin linked to more peer pressure social acceptance and confidence
Pride and confidence
Self esteem
Freedom from using female products for grooming
PLACE
CHANNELS
Local Kirana Stores
General Stores
Departmental Stores Chemists Supermarkets Online
Platforms
Extensive distribution network of parent company with more than 4000 distributors and 30 lakh retail outlets
Expansion in Bangladesh Nepal and UAE
Direct selling
Emami tied up with Department of Post in Maharashtra for rural distribution
Collaboration with ITC e-choupal
PRICE
Available in variety of SKU’s for price sensitive customers depending on usage frequency
SKU PRICE USAGE RATE
Sachet(5gm) Rs.5 Trial purchase
Tube(15gm) Rs.25 Light users
Tube(30 gm) Rs.65 Medium users
Tube(60gm) Rs.120 Heavy users (Repeat
Purchase)
PRICE
Premium Segmen
t
Medium segment
• Loreal• OLAY• Garnier
Emami Fair and Handsome
Ponds Fair and Lovely Men
Emami Fair & Handsome is priced higher than competitors in medium segment but lower than the brands in premium segment
PROMOTION
TV advertisement
Outdoor Advertisement
Print Media
ZYAADA Campaign
Promotions in school and colleges
PROMOTION through TV
Cultural sensitivity
Slogan:- “World’s No.1 fairness cream for men”
Brand ambassador “Shahrukh Khan”
https://www.youtube.com/watch?v=9ugQMhxjJJQ
Promotion through DISCOUNTS
“ZYAADA” Campaign
Awareness of Additional benefits
Strengthen brand leadership position
brand’s premium quotient with trust
PRINT ADVERTISING
References
http://makeupandbeauty.com/emammi-fair-and-handsome-skin-cream-review-for-men/
http://www.4psbusinessandmarketing.com/16122010/storyd.asp?sid=4262&pageno=10
http://www.emamiltd.in/about-us/9/innovation.php
http://www.motilaloswal.com/site/rreports/HTML/635342794592064691/index.htm
http://www.z24.nl/economie/indiase-man-wil-lichtere-huid-groeiende-markt-voor-unilever-414072
https://www.aaramshop.com/product-detail/emami-fair-handsome-fairness-cream-for-men
Thank You