1. MARKET SEGMENTATION 2013
ACKNOWLEDGEMENT
It has been an honor for me to prepare the report on "MARKET
SEGMENTATION OF FAIR & LOVELY” which was assigned to us by
Karachi University Business School with the help of SIR. IMAM
HUSSAIN (Business Communication, course coordinator), without his
rich guidance such a report would not have been an easy task to
achieve. I would certainly like to offer our special thanks to the number of
people especially at all the places where I visited provided with valuable
information.
I would again like to take this opportunity and express my
acknowledgement distinctly to SIR.IMAM HUSsAIN for directing us
about the technical aspects of the report.
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2. MARKET SEGMENTATION 2013
LETTER OF TRANSMITTAL
The Chairman,
Karachi University Business School,
University of Karachi
Karachi.
Dear Sir,
This report investigates the market segmentation of FAIR AND LOVELY
and examines market positioning, target marketing according to
packaging, price, promotion etc. A brief history of the fair and lovely
and its tag line is initially outlined after that mentioning the SWOT
analysis and market finding. It is concluded with having general public
views and recommendations.
Yours sincerely,
RIJA KHALIL
CLASS: BS.IV
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3. MARKET SEGMENTATION 2013
CONTENTS
Introduction
05
History
06
Unilever Pakistan ltd
07
List of Unilever brands in Pakistan
08
Unilever Fair & Lovely
09
Market segmentation
10
Target market
11
Marketing tools
12
Product
12
Price
13
Place
14
Promotion
15
SWOT Analysis
16
CONCLUSION
16
Reference
17
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Executive summary
Unilever is one of the world‟s largest and leading multinational
companies; Unilever commenced their business activities on a larger
scale by setting up their first factory in Netherlands. In the 1890s, William
Hesketh Lever, founder of Lever Bros, wrote down his ideas for Sunlight
Soap – his revolutionary new product that helped popularize cleanliness
and hygiene in Victorian England. Unilever is one of the biggest
companies of the world with its products spread all over the world.
Present in 150 countries around the world with a wide range of products.
The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan
Limited was established in Pakistan in 1948.The town of Rahim Yar
Khan was the site chosen for setting up a vegetable oil factory. Unilever
Pakistan is the largest FMCG Company in Pakistan, as well as one of
the largest multinationals operating in the country.
Scientist at Unilever laborites in India were the first one to discover the
skin lightening action of “Niacin Amide” that led to the development of a
unique and patented formulation of Fair & Lovely in 1972 and it was
launched in 1978. Fairness is much more than just simple lightening of
skin color. It is about skin that is clear of all imperfections. A skin that is
clear of darkening, clear of marks and clear of uneven skin tone.
Presenting the Fair & Lovely with special fairness system that protects
your skin from the harmful rays of the sun, removes marks and balances
uneven skin tone to give soft, supple glow, while giving you fairer skin.
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5. MARKET SEGMENTATION 2013
Introduction
Unilever is one of the world‟s largest and leading multinational
companies; Unilever commenced their business activities on a larger
scale by setting up their first factory in Netherlands, in the year of 1890.
Operating in Pakistan for over the last four decades the company is
trying to significantly contribute towards the augmentation of the
standard of living by bringing world class high quality products at the
door step of their customers. The usage of Unilever products by over
90% of the people in Pakistan stands a testimony to their successful
operation. . Their array of products show that they produce household
care, fabric cleaning, skin cleansing, skin care, oral care, hair care,
personal grooming, and tea based beverage products under worldwide
famous brand names Wheel, LUX, Lifebuoy, Fair &Lovely, Pond‟s, Close
Up, Sunsilk, Lipton, Lipton Taaza, Pepsodent, All Clear, Vim, Surf Excel,
and Rexona.
History
In the 1890s, William Hesketh Lever, founder of Lever Bros, wrote down
his ideas for Sunlight Soap – his revolutionary new product that helped
popularize cleanliness and hygiene in Victorian England. Unilever is one
of the biggest companies of the world with its products spread all over
the world. Present in 150 countries around the world with a wide range
of products.
In a history that now crosses three centuries, Unilever's success has
been influenced by the major events of the day – economic boom,
depression, world wars, changing consumer lifestyles and advances in
technology. And throughout they've created products that help people
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6. MARKET SEGMENTATION 2013
get more out of life – cutting the time spent on household chores,
improving nutrition, enabling people to enjoy food and take care of their
homes, their clothes and themselves.
The Unilever shares in the world are:
Europe | €15bn | 38%
Asia/Africa | €12bn | 29%
The Americas | €13bn | 33%
Unilever Pakistan ltd
The Unilever Pakistan Limited (UPL), formerly Lever Brothers Pakistan
Limited was established in Pakistan in 1948.The town of Rahim Yar
Khan was the site chosen for setting up a vegetable oil factory. Unilever
Pakistan is the largest FMCG Company in Pakistan, as well as one of
the largest multinationals operating in the country. Now Unilever has
operating six factories at different locations around the country. The
Unilever's Head Office was shifted to Karachi from the Rahim Yar Khan
site in the mid 60's.
Mission statement
“We meet everyday needs for nutrition; hygiene and
personal care with brands that help people feel good, look
good and get more out of life.”
Lever brothers will be the foremost consumer product company in
Pakistan with care, skin, ice cream and spread. Already positioned in
tea, hair, dental and household care, substantially profitable position in
cooking oils and fats our strengths come from our people and from
combining the best of our international as well as Pakistan origin. “Our
commitment is to continuously care for the need of our customers,
consumers, employees, suppliers, share holders and the community in
which we live."
VISION
“We help people around the world meet everyday needs for
nutrition; hygiene and wellbeing, with brands that help people look
good, feel good and get more out of life”
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List of Unilever brands in Pakistan
Blue Band
Walls
Supreme Tea
Lipton Tea
Clear Shampoo
Sunsilk
Close Up
Knorr Soup / Noodles
Fair & Lovely
Rexona
Lifebuoy soap & shampoo
Imperial
Lux
Pond's
Surf Excel
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Fair & lovely
Scientist at Unilever laborites in India were the first one to discover the
skin lightening action of “Niacin Amide” that led to the development of a
unique and patented formulation of Fair & Lovely in 1972 and it was
launched in 1978.
Fairness is much more than just simple lightening of skin color. It is
about skin that is clear of all imperfections. A skin that is clear of
darkening, clear of marks and clear of uneven skin tone.
Presenting the Fair & Lovely with special fairness system that protects
your skin from the harmful rays of the sun, removes marks and balances
uneven skin tone to give soft, supple glow, while giving you fairer skin. It
absorbs into the top layer of your skin and actually dissolves the existing
color pigment by reducing its concentration, making you fairer from
within.
Fair & Lovely is a totally safe Unilever product which is ISO certified,
meeting the highest standards in skin care and safety
Fair & Lovely does not contain bleach. It is a patented vitamin
formulation who‟s continuous usage is totally safe for the skin
The fairness from Fair & Lovely is reversible, and discontinued usage
restores the original skin tone.
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9. MARKET SEGMENTATION 2013
Market segmentation
Dividing a market into distinct groups with distinct needs, characteristics
or behaviors who might require separate products or marketing mixes.
Geographic:
World region: Southeast Asia
Country region: Pakistan (East, South, West)
Metro Size: Large and medium
Density: Urban, suburban, ex-urban, rural
Climate: comparatively warm
Demographic:
Age: 12-45 yrs
Gender: Female and male
Family cycle: Single and dependent, Single and independent,
married, married with children, single parents
Income: Rs: 25,000 onwards
Occupation: Students, Professional, unemployed, housewife
Education: High School up to Professional
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Psychographic:
Social class: Upper lower class, middle class, lower upper class
Lifestyle: Strivers
Personality: Compulsive
Behavior:
Occasion: Regular Expected
Benefits: Fairness, a general vanishing cream and blemish
removing agent
User status: Regular, first time, experimental (using similar
competitor product)
Usage rate: Frequent user
Loyalty status: Strong
Readiness stage: Loyal
Attitude towards product: Positive
Target market
The target market for Fair & Lovely is predominantly young women aged
12-45. According to retailers and market research report, "there is
repeated evidence that schoolgirls in the 12-14 years category widely
use fairness creams".
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Marketing tools
Products
Unilever‟s fair & lovely is the leading skin- lightening cream for women.
Unilever proudly states fair & lovely as the world‟sNo.1 fairness cream, it
redefines the route to fairness with an advance multi-vitamin fairness
nourishment formula. Triple sunscreen system-protects from the sun‟s
darkening UVA and UVB rays. Allenton-activates the FAL vitamin
system to give girls and women radiant fairness
Fair and lovely jar
Fair and lovely 16 ml
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Fair and lovely tube
Fair and lovely winter fairness cream
Fair and lovely max fairness
Fair and lovely anti-marks
Price
Currently Low price strategy is being followed by the company with
regard to Fair & Lovely.
➢Affordability is determined by 2 factors:
•Income of the consumer
•Price of the products and services
➢Factors affecting the price
•Internal Factors: – Cost, Pricing Objective.
•External Factors: – Customer, Suppliers and Competitors. The Pricing
objective of Fair & Lovely is similar to the objectives of all the other firms,
and has been stated below:
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•Survival.
•Market Share.
Fair & Lovely has adopted many pricing strategies over the years which
have been pretty successful and helped the brand in becoming more
acceptable and the company a good deal of profits.
Fair & lovely jar 50 gm………………..…………… Pkr. 100
Fair & lovely 16 ml…………………………………. Pkr. 25
Fair & lovely tube 50 gm………......................... Pkr. 80
Fair & lovely winter fairness…………………...… Pkr. 100
Fair & lovely max fairness……………………….. Pkr. 96
Fair & lovely anti-marks 50 gm………………….. Pkr. 80
Place
Retail outlets
Cosmetic stores
Chemist
Hyper market
Super market
Distribution network
UNILEVER
CARRING AND FORWADING AGENT
DISTRIBUTION AND STOCKIEST
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14. MARKET SEGMENTATION 2013
WHOLESALER
REATILER
CUSTOMER
Promotion
Promotion Strategies used by Fair & Lovely
Advertising Objectives:
1) Affective association: - Destiny & Romance
2) Building brand awareness and developing strong customer
perception about the brand
3 ) Enhancing brand image
4) Recall of brand/products
Advertising Appeal:
1 ) Emotional appeal to grab attention
2) Mass appeal to communicate product usage and its positive effects
on beauty
3 ) Fear appeal to grab attention
Media Vehicle;
Here the media vehicle used by the brand is those TV channels which
are more popular among women like GEO, ARY DIGITAL, and HUM TV
etc who telecast more and more daily soaps.
Advertising Seasonality:
•Campaign period of an ad is not less than 6 months and not more than
a year.
•3 categories of ads are advertised by the brand
1) General
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2) Occasional: - wedding season and festive season
3 ) Se aso na l : - As it h as pr od uct f or al l s eas ons
Print Media:
Advertisements in the print and electronic media highlight the functional
benefits and the self-expressive benefits that accrue to the users of the
brand. For example, the new suggested Fair & Lovely advanced multivitamin clearly highlight the concept of "daily expert fairness" by using a
celebrity endorser.
SWOT Analysis
STRENGTH:
Fair & Lovely brand is World's first and largest Fairness cream
brand.
Presence in 40 countries and a value of around Rs.6 billion.
Enjoys high levels of Consumer Awareness for the brand.
Excellent branding, top-of-the-mind name and good distribution.
Fair & Lovely does not contain harmful bleach and chemical.
Work in at least 4-6 weeks.
Fair & Lovely does not have any side effects.
WEAKNESS:
Categorization of women on the basis of skin color, has led to
many issues with activists and human rights leading to Negative
Publicity.
Extremely tough competition in skincare market.
OPPORTUNITIES:
Fair & Lovely Foundation which aims at empowerment of women.
Introduction of „Menz Active‟ fairness cream for Men.
TREATS:
Several competitors in the market.
Challenges to deal with consumer choice and buying behavior.
Legal issues often hamper the brand image.
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CONCLUSION
Fair & Lovely brand is World's first and largest Fairness cream brand.
Fair and lovely is presence in 40 countries and a value of around Rs.6
billion. Fair & Lovely is proactive and increase points of difference with
the competitors. Moving beyond the message of fairness as beauty must
be the center of its marketing communication.
Reference
 www.google.pk
 www.unilever.pk
 www.makeupandbeauty.com
 www.totalbeautyanswer.com
 www.mbaskool.com
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