Fairness Wars


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Case Details:

Case Code : MKTG009
Case Length : 7 Pages
Period : 1999 -2001
Pub Date : 2001
Teaching Note : Available
Organization : Cavin Care Ltd, HLL
Industry : FMCG
Countries : India

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Please note:

This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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Excerpts

Background

In 1975, HLL launched its first fairness cream under the F&L brand. With the launch of F&L, the market, which was dominated by Ponds (Vanishing Cream and Cold Cream) and Lakme (Sunscreen Lotion), lost their dominant position...

Fair (Ness) Wars

In 1998, CavinKare launched Fairever fairness cream. The company took care to stick to the herbal platform that its consumers had come to associate with all CavinKare products.

Fairever seemed to be an instant success. Fairever's market share jumped from 1.23% in 1998 to 8.13% in 1999. The brand was expected to grow from Rs 160 million 1999 to Rs 560 million in 2000.

Its success attracted many players, including Godrej (FairGlow) and Paras Chemicals (Freshia)...

Promotional Wars

During 2000-01, with major players entering the market, the existing products were promoted with renewed vigor through price reductions, extra volumes, etc. Many products were marketed aggressively. While F&L advertisements projected fairness comparable to the moon's silvery glow, FairGlow offered the added benefit of a blemish-free complexion...

The Wars Continue Unabated

In early 2001, three major players -HLL, CavinKare and Godrej -competed fiercely to penetrate the market further with their attractive schemes.

A growing number of pharma and OTC drug companies like Emami, Ayurvedic Concepts, Paras etc. also entered this segment.

Companies were also facing competition from Amway, Avon, Modicare etc., which were into direct selling...

 

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