Marketing Case Study 2 : Hindustan Unilever
Case Study 2: Hindustan Unilever: Skincare Products for Men
A popular movie star endorsing a skin cream that will lighten the complexion with visible results within a week or two – this is a common storyline that has been fed to Indian consumers for years. The only visible difference is that now you’ll probably see a good looking male actor highlighting the positives of the product to a large group of young men in the country.
Skin care is a sensitive area for many consumers, and advertisers have for some time now focused on the insecurities of the consumers. Fairness creams in particular have focused more on the female consumer. In India, ads have often portrayed dark-skinned individuals, mostly women, as having low self-esteem and fewer friends, and indicated that fairer skin increases the chances of a woman getting the man. A culmination of extensive marketing and a growing desire for fairer skin accounted for such products owning a whopping 80 percent of the country’s skin care market.
However, the focus is shifting to men and overall grooming, with Asia being one of the fastest growing markets for men’s skin care. It is estimated that the market for male grooming products in India will grow at a compound annual growth (CAGR) of 22 percent till 2020, and The Nielsen Company (global information and measurement company) expects the male grooming market in India to reach $750 million, with a CAGR of 11 percent by 2016. This growth is driven mainly by consumer awareness about the products and brands. The demand for better grooming products and skin care regimes is the result of an increase in promotional campaigns and advertisements by leading skin care companies – like L’Oreal India, Hindustan Unilever (HUL), and Emami – coupled with rapid urbanization. And while consumer awareness may have been limited to urban India, it is expected to change with growth drivers focusing on the overall skin care market in the country.
India’s mass market product leader is Fair & Lovely by HUL. Launched in 1975, Fair & Lovely can be found in several countries such as Africa, the Middle East, and Asia where a pale complexion is desirable. In 2014, with a 48 percent market value share, HUL continued on its growth trajectory and the company’s frontrunners – which include brands like Fair & Lovely, Pond’s, and Lakme – became household names in urban and rural India due to the trust they have established and their assurance of quality and price satisfaction.
Till early 2014, the market for HUL was limited to brands like Vaseline for Men, Fair & Lovely Max, and Axe deodorant. In 2005, HUL faced a lot of competition from Emami, who had enlisted Bollywood heart throb Shah Rukh Khan as the brand ambassador for the Fair & Handsome skin cream, helping them garner a 70 percent share of the Indian men’s fairness cream market. By using the male population’s increased awareness about the importance of facial care, whether it is for personal hygiene, social status, or professional growth, HUL is responding to the changing market environment by filling in the gaps in their product range and customizing face creams to specific skin types and climates. They are bringing athletes and movie stars on board as brand ambassadors – Varun Dhawan, a Bollywood actor, is the face for Pond’s Men and Saif Ali Khan is promoting the Fair & Lovely face wash. HUL even used cricket superstar Sachin Tendulkar’s 200th and final test match as an advertising pitch. As a part of its promotional strategies for Fair & Lovely for men, the brand was displayed across the cricket stadium while the match was in progress. The rationale behind this campaign was to rule over television viewing during a cricket match using in-stadium branding instead of television commercials.
HUL is improving customer services by looking at how easily consumers are able to access the company’s products and how effectively the company can engage with consumers. This aim has driven their innovation research and marketing initiatives, and their engagement with consumers in remote areas of India. Their exploration in the mobile platform has resulted in the digital initiative for the personal care brands, ‘Be Beautiful’, which is an example of how HUL is using social media to build powerful brands and meet consumer needs. This platform, with 3.5 million visitors annually, seven million engaged users on Facebook, and over 40 million views on YouTube, is probably one of the largest beauty advisory platforms in Indian and an example of how different segments of the diverse Indian population are brought together through media innovation.
With brands like Garnier and Nivea entering the market with face washes, sunscreens, and oil-control moisturizers and vying for a fair share in the growing male skincare segment, HUL’s focus is on innovation across their product portfolio, especially in personal products, detergents, and oral care. The company will continue to invest on its part in India’s growth story – Serving Many Indias – and has identified that the country essentially needs a brand portfolio that will reach a wider section of the country and be available across financial groups. To meet these goals, HUL is building their internal resources in terms of leaders and skills across operations value chains to meet the growing specialized demands.
Source: Kotler, P., Armstrong, G., Ang, Tan, C. T., Yau, O. H, & Leong, S. M. (2017). Principles of Marketing: An Asian Perspective. Pearson Education.
Case Study 2: Hindustan Unilever: Skincare Products for Men
- Question 1: How did the growing Indian skincare market for men affect the marketing decisions of Hindustan Unilever?
- Question 2: Will Hindustan succeed in the long run? Why or why not?
