Case Analysis 2-2: Cultural Norms, Fair & Lovely, and Advertising.
Nov 17, 08
The necessity for cosmetic products in India is still elevating and the current market size stands at $950 million U. S. us dollars. The growth is between 15-20% annually plus the overall beauty and wellness market that includes beauty services is about $2, 680 , 000, 000. (Bhattacharya, 2008). The difference in the socio-economic status of the Indian consumers, especially females, is one of the major reasons for the increase in the market size. The economy has ended in India's GROSS DOMESTIC PRODUCT, В growingВ 8. seven percent from 3 years ago to 08, this makes India one of the speediest growing economies in the world as well as the second most effective in Asia, only overtaken by Cina. The difference in the beauty market that has ended in women coming from all the cultural classes are being more aware about their own presence and are ready to spend more income on natural beauty and cosmetics in the future. The Indian human population spends $0. 68 per capita on cosmetics, this may be below other countries, but still highlights the developing awareness between consumers. (Bhattacharya, 2008).
The color of the skin is a powerful topic in India, lighter color is linked to a higher position. Culturally, a reasonable skin is definitely compared with confident values that are related to course and magnificence. (Cateora and Graham, 2007). The Indian film sector (Bollywood) may be the largest film industry in the world when comparing admission sales and number of films produced every year. Many of the Of india film stars are judgment leaders and also have an influence on the populace regarding beauty and fashion. Many of the celebrities are mild colored meaning girls and females want to look like these people, therefore willing to spend money on cosmetic makeup products to realize their very own dreams. It is not only people from the higher sociable class nevertheless also persons from the bottom in the pyramid (BOP) that are spending money on cosmetics. It is observed that girls and women in the informelle siedlung of Hyderabad use Fair & Lovely. (Karnani, 2007). This displays the huge desire for beauty in most social hierarchy levels in India. Fair & Lovely had a market share of 90% in the Of india market before the direct rival, CavinKare Limited (CKL) introduced their cleansing soap Fairever and impressively obtained a market share of 15% in just 2 years. (Cateora and Graham, 2007). There are many overseas companies that see India as an appealing market with good for you to make money. The entry limitations have lowered which suggests that HLL can get increases in the competition in the near future. The Of india government provides reduced the work to doze. 5% and government agencies which were set up to approve overseas investments, which may have made it simpler for international Multinational Corporations (MNC) to the American indian market. Like a well established organization this is a trend which should be taking seriously in order to shield the Reasonable & Lovely's market share but also the share of HLL's other product collection. Another important issue is that small retailers are importing directly from markets including Dubai, where price in cosmetics is lower than in the Indian market, which can vary from 30-70%. (Bhattacharya, 2008). These types of factors can be a huge risk on HLL's market share in the Indian marketplace.
The popularity of a product in India depends on the industry’s success of its promotion activities thus helping HLL to improve their particular image for the product company, Fair & Lovely. (Cateora and Graham, 2007). In 2001, some women felt discriminated against as a result of Fair & Lovely commercials which triggered a problem from AIDWA (All India Women's Democratic Association). (Cateora and Graham, 2007). This is certainly still a problem for the organization and that is why the marketing campaign program needs to be carefully prepared to ensure that the merchandise brand and company brand will be positively better; to prevent foreseeable future...
References: Bhattacharya, P. (2006) India's Plastic Market Ready for Big Jump.
Central Intelligence Agency (CIA) (2008). The World Factbook.
Sathish, R. (2008, October). Corporate and business Social Responsibilty in India-Putting Social-Economic
Creation on a Steps for success