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Look Ma , Fair Hands

Prepared by-:Ayushi KakwaniPriyanka Bhatt

Karna PandyaPayal ThakkarJyoti Sharma

Riddhi Patel

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Case Summary

Rakesh Kumar Sinha VP of sales and marketingat Godrej has a reason to be happy again

Fair glow has been growing at close to 40%

Advertising support for the brand has alsodoubled since last year

Within 2 years of its launch in 1999, fair glow hasbecome a RS 100-crore brand

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Case Summary

In comparison , fairness creams, which werearound RS 550 crore , crossed Rs 800 crore byend -2004

Even in the 4000 crore soaps market , thefairness segment has a 2% minuscule value share

Fairglow still has the lions share of the fairnesssegment, its 60 % share works out to just Rs 48crore, which is less than half its earning in yeartwo

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Case Summary

Competitors research bears out that 78% ofwomen in India aspired to be two shades fairerbecause they believed it made them moreattractive and confident

The decision to promote the fairness propositionas a soap made a strategic sense , because inIndia creams had a penetration of only 25 30 %

On other hand soaps enter over 95% ofhouseholds

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Case Summary

In comparison , fairness creams, which werearound RS 550 crore , crossed Rs 800 crore byend -2004

Even in the 4000 crore soaps market , thefairness segment has a 2% minuscule value share

Fairglow still has the lions share of the fairnesssegment, its 60 % share works out to just Rs 48crore, which is less than half its earning in yeartwo

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Case Summary

With high expectations from the product , Godrejplanned a high visibility launch

It palnned surrogate roadblock on televisionchannels (the 40-second television commercialran simultaneously on all channels within a fiveto 10 minute time frame to ensure that even theviewers who surf channels during breaks caught

a glimpse of the brand)

Then the product was advertised on all top ratedprogrammes Kaun Banega Crorepati and Kyunki

saas bhi kabhi bahu thi

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Case Summary

But there were a huge credibilityissues to be tackled creamsstay on all day but soap is

washed off

Godrej solution was simple: ittailored its commercials to focuson customer testimonials

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Case Summary

Even as fair and lovely and fairglow fought it outon TV screens , the sun was eclipsing over thetoilet soaps industry

Consumer were downgrading to sub-popularcategory

Then in December 2000 a year after launch offairglow soap, it committed a vital strategicmistake , it extended fairglow into creams withthe proposition , Bedaag gorapan

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Case Summary

Importantly for Godrej , it lostthe high ground of innovationthat it had made its USP

Even as Fairglows brand

extension backfired , HLLengaged in battle on anotherflank- it launched Fair & lovelysoap

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Case Summary

Fair glow on the other hand moneyback challenge to in build credibilityin 2002

By mid 2004 fair glow discontinuedwith its fairness cream

In late 2004 it again started to

promote the efficacy of its soap This resulted in paying off dividends

and increase in sales

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Questions

1. What is the positioning of Fairglow soap ?why is the positioning likely to appeal toIndian Customers ?

Answer :. means the process by which

marketers try to create an image or identityin the minds of their target market for its

product, brand, or organization

. Fairglow offered fairness through soap,which was more convenient to use at no

extra cost, moreover soaps enter over 95%

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Contd..

It undertook demographicsegmentation with preference tovariables like gender, income and

nationality

It also undertook behavioral

segmentation because in case offairglow marketer divided buyersinto groups on the basis of theirattitude towards , use of and

response toward the product

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Questions

2. Why was the extension of Fairglow to facecream a bad decision ?

Answer :

or brand stretching is a

marketing strategy in which a firm marketinga product with a well-developed image usesthe same brand name in a different product

category. The new product is called a

Fairglows extension to face cream was not a

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Contd..

Initially when fair glow launchedits fairness soap , it lackedcredibility among masses

-creams stay on all day butsoap is washed off

Godrej by using customertestimonies and extensiveadvertising convinced the

market to accept its fairness

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Contd

This was a bad decision because itchallenged its own product standing in the

market and the faith that it had instilled

Besides this brand extension was too soon tobe undertaken (1 yr), before the soap couldcapitalize its entire market share , launch of

fairness cream it

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