Harvard Case - Unilever's Fair & Lovely In India: Fairness Matters
"Unilever's Fair & Lovely In India: Fairness Matters" Harvard business case study is written by Tulsi Jayakumar, Jagdish Rattanani. It deals with the challenges in the field of General Management. The case study is 13 page(s) long and it was first published on : Jan 14, 2021
At Fern Fort University, we recommend Unilever adopt a comprehensive strategy to transform Fair & Lovely into a brand that celebrates inclusivity and embraces diverse beauty standards. This involves a multi-pronged approach encompassing brand repositioning, product innovation, marketing campaigns, and social responsibility initiatives.
2. Background
This case study focuses on Unilever's iconic Fair & Lovely brand in India, a market where lighter skin tones are often associated with beauty, success, and social desirability. While the brand enjoyed immense success for decades, it faced growing criticism for perpetuating harmful beauty standards and contributing to colorism. This criticism led to a significant decline in brand perception and sales, prompting Unilever to re-evaluate its strategy.
The main protagonists of the case are Unilever, a multinational corporation with a vast portfolio of brands, and the Fair & Lovely brand itself, facing a critical juncture in its history. The case study highlights the challenges of navigating an evolving social landscape and the need for brands to adapt to shifting consumer values and expectations.
3. Analysis of the Case Study
Strategic Framework: We will analyze the case using a combination of frameworks, including:
- SWOT Analysis: To understand Fair & Lovely's internal strengths and weaknesses, and external opportunities and threats.
- Porter's Five Forces: To assess the competitive landscape and identify key industry forces influencing the brand's success.
- Corporate Social Responsibility (CSR): To evaluate the ethical implications of Fair & Lovely's past marketing strategies and the need for a more socially responsible approach.
- Brand Management: To analyze the brand's current positioning, target audience, and the need for a comprehensive rebranding effort.
Analysis:
- Strengths: Strong brand recognition, established distribution network, existing customer base, and Unilever's vast resources.
- Weaknesses: Negative brand perception due to association with colorism, outdated product formulations, lack of diversity in marketing campaigns.
- Opportunities: Growing awareness of inclusivity and diversity, increasing demand for natural and ethical beauty products, potential for brand repositioning.
- Threats: Rising competition from local and international brands, changing consumer preferences, potential government regulations on skin-lightening products.
Porter's Five Forces:
- Threat of New Entrants: High, due to relatively low barriers to entry in the personal care market.
- Bargaining Power of Buyers: High, as consumers have numerous choices and are increasingly demanding ethical and inclusive products.
- Bargaining Power of Suppliers: Moderate, as Unilever has established relationships with key suppliers, but there are alternative options available.
- Threat of Substitute Products: High, with a wide range of skincare products available, including natural and organic alternatives.
- Competitive Rivalry: High, with intense competition from both local and international brands, including those focusing on inclusivity and diversity.
CSR: Fair & Lovely's past marketing campaigns have been criticized for promoting unrealistic beauty standards and contributing to colorism. This has damaged the brand's reputation and alienated consumers. A shift towards a more socially responsible approach is crucial for regaining trust and building a positive brand image.
Brand Management: The brand's current positioning is outdated and no longer resonates with modern consumers. Repositioning Fair & Lovely as a brand that celebrates inclusivity and diverse beauty standards is essential for attracting a wider audience and achieving long-term success.
4. Recommendations
1. Reposition the Brand:
- Shift from 'fairness' to 'skincare': Focus on product benefits like hydration, radiance, and overall skin health, rather than promoting skin lightening.
- Embrace diversity and inclusivity: Feature a wide range of skin tones and ethnicities in marketing campaigns, showcasing diverse beauty standards.
- Develop a new brand identity: Create a new logo, tagline, and visual language that reflects the brand's new values and positioning.
2. Product Innovation:
- Develop new product lines: Introduce a range of skincare products that address diverse skin types and concerns, with a focus on natural ingredients and ethical sourcing.
- Reformulate existing products: Remove harmful ingredients and update formulations to meet evolving consumer demands for natural and sustainable products.
- Invest in research and development: Continuously innovate and develop new products that meet the evolving needs of the Indian market.
3. Marketing Strategy:
- Launch inclusive marketing campaigns: Feature diverse models and stories that celebrate beauty in all its forms.
- Engage with influencers and social media: Partner with influencers who promote inclusivity and diversity, leverage social media platforms to reach a wider audience.
- Collaborate with NGOs and social organizations: Partner with organizations working towards promoting inclusivity and challenging harmful beauty standards.
4. Social Responsibility Initiatives:
- Support initiatives promoting diversity and inclusivity: Sponsor programs that empower women and girls, promote education on body positivity and self-acceptance.
- Invest in sustainable practices: Implement sustainable packaging and manufacturing processes to reduce environmental impact.
- Promote ethical sourcing and fair trade practices: Ensure that ingredients are sourced ethically and responsibly.
5. Basis of Recommendations
These recommendations are based on a comprehensive analysis of the case study, taking into account:
- Core competencies and consistency with mission: Unilever's commitment to sustainability and social responsibility aligns with the proposed brand transformation.
- External customers and internal clients: The recommendations address the evolving needs and expectations of Indian consumers, while also considering the concerns of internal stakeholders.
- Competitors: The recommendations aim to differentiate Fair & Lovely from competitors by embracing inclusivity and focusing on product innovation.
- Attractiveness: The recommendations are expected to improve brand perception, increase sales, and enhance Unilever's long-term sustainability.
Assumptions:
- Consumers are increasingly demanding ethical and inclusive products.
- The Indian market is receptive to brands that promote diversity and inclusivity.
- Unilever is committed to investing in the transformation of Fair & Lovely.
6. Conclusion
By embracing inclusivity, promoting diverse beauty standards, and focusing on product innovation, Unilever can transform Fair & Lovely into a brand that resonates with modern consumers and achieves long-term success in the Indian market. This transformation requires a commitment to social responsibility, a willingness to adapt to evolving consumer values, and a strategic approach to brand management and marketing.
7. Discussion
Alternatives:
- Maintaining the status quo: This would likely lead to continued decline in brand perception and sales.
- Discontinuing the brand: This would be a drastic measure and would likely result in significant financial losses.
Risks:
- Consumer backlash: Some consumers may resist the brand's transformation and continue to associate it with colorism.
- Competition: Competitors may launch similar products or campaigns that undermine Fair & Lovely's efforts.
- Implementation challenges: Implementing the recommendations effectively will require significant resources and commitment from Unilever.
Key Assumptions:
- The recommendations are based on the assumption that consumers are increasingly demanding ethical and inclusive products.
- The success of the transformation depends on Unilever's commitment to investing in the brand and its social responsibility initiatives.
8. Next Steps
Timeline:
- Phase 1 (6 months): Rebranding and product innovation, including developing new product lines and updating existing formulations.
- Phase 2 (12 months): Launch of inclusive marketing campaigns and social responsibility initiatives.
- Phase 3 (ongoing): Continuous monitoring and evaluation of the brand's performance, adapting strategies based on consumer feedback and market trends.
Key Milestones:
- Develop a comprehensive rebranding strategy.
- Launch a new product line that addresses diverse skin types and concerns.
- Partner with influencers and social organizations to promote inclusivity.
- Track brand perception and sales performance.
Conclusion:
By implementing these recommendations, Unilever can transform Fair & Lovely into a brand that celebrates inclusivity, embraces diverse beauty standards, and thrives in the evolving Indian market. This transformation requires a commitment to social responsibility, a willingness to adapt to changing consumer values, and a strategic approach to brand management and marketing.
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Case Description
In July 2020, Hindustan Unilever Limited, the Indian subsidiary of global fast-moving consumer goods company Unilever plc, renamed its Fair & Lovely skin-lightening cream in response to criticism that the product's positioning and advertising reinforced a pre-existing bias toward fair skin in India. India's market for skin-lightening creams, the largest in the world, was valued at US$450 million-US$535 million, and Fair & Lovely was the market leader with a 70 per cent share. However, the company had been criticized for its positioning and advertising of Fair & Lovely, which many saw as reinforcing a pre-existing bias for fair skin in India. Did the company make the right strategic move by renaming the popular brand? Or should the company have instead followed the path of some competitors and withdrawn the brand from the market? What else could the company do to support the brand?
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