Harvard Case - What's in a name? That we call fair by any other name will it sell as well?
"What's in a name? That we call fair by any other name will it sell as well?" Harvard business case study is written by Abhinav Bakshi, Akshaya Vijayalakshmi. It deals with the challenges in the field of Marketing. The case study is 11 page(s) long and it was first published on : Sep 13, 2022
At Fern Fort University, we recommend a multi-pronged approach to address the challenges faced by Fair & Lovely. This includes rebranding the product with a new name and identity, repositioning it to focus on skin care rather than fairness, and implementing a comprehensive marketing strategy that leverages digital marketing, influencer marketing, and community engagement to build trust and resonate with a diverse audience.
2. Background
This case study focuses on Hindustan Unilever's (HUL) flagship brand, Fair & Lovely, a skin-lightening cream that has been a dominant player in the Indian market for decades. However, the brand has faced increasing criticism for promoting unrealistic beauty standards and perpetuating colorism. This has led to calls for a boycott and a decline in sales. The case study explores the challenges faced by HUL in navigating this complex situation and finding a way to maintain the brand's relevance in a changing social landscape.
The main protagonists in this case are:
- Hindustan Unilever (HUL): The multinational conglomerate that owns the Fair & Lovely brand.
- The Fair & Lovely Brand Team: Responsible for managing the brand's marketing, advertising, and product development.
- Consumers: The target audience for Fair & Lovely, who are increasingly demanding products that promote inclusivity and natural beauty.
- Social Activists: Groups and individuals who have been vocal in criticizing the brand for its perceived role in promoting colorism.
3. Analysis of the Case Study
This case study presents a complex situation that requires a multi-faceted approach. We can analyze it through the lens of several frameworks:
1. Marketing Strategy & Brand Management:
- Brand Positioning: Fair & Lovely's historical positioning focused on fairness as a desirable trait, which is now seen as outdated and harmful.
- Target Market: The brand's target market has evolved, with a growing demand for inclusive beauty standards.
- Marketing Mix: The current marketing mix needs to be re-evaluated to align with the new brand positioning and target market.
- Brand Equity: Fair & Lovely's strong brand equity is a valuable asset, but it needs to be carefully managed to avoid negative associations.
2. Consumer Behavior Analysis:
- Changing Consumer Preferences: Consumers are increasingly aware of the harmful effects of colorism and are demanding products that promote inclusivity and natural beauty.
- Social Media Influence: Social media platforms have become a powerful force in shaping consumer opinions and driving brand boycotts.
- Digital Marketing: The rise of digital marketing offers opportunities to reach a wider audience and engage with consumers in a more personalized way.
3. Competitive Analysis:
- Emerging Competitors: The market for skin care products is becoming increasingly competitive, with new brands offering products that cater to diverse skin tones and promote natural beauty.
- Changing Market Dynamics: The market is shifting towards products that are more inclusive and sustainable, presenting both opportunities and challenges for Fair & Lovely.
4. SWOT Analysis:
- Strengths: Strong brand recognition, established distribution channels, vast resources.
- Weaknesses: Negative associations with colorism, outdated brand positioning, declining sales.
- Opportunities: Rebranding to focus on skin care, leveraging digital marketing, building partnerships with social influencers.
- Threats: Growing consumer backlash, increasing competition, changing social norms.
4. Recommendations
To address the challenges faced by Fair & Lovely, we recommend the following:
1. Rebranding and Repositioning:
- New Name and Identity: Adopt a new name that reflects a focus on skin care and inclusivity. This will help to distance the brand from its controversial past and create a fresh start.
- Repositioning Strategy: Shift the brand's focus from fairness to skin care, emphasizing natural beauty and healthy skin practices.
- Value Proposition Development: Develop a new value proposition that resonates with the evolving consumer preferences and emphasizes inclusivity, efficacy, and sustainability.
2. Comprehensive Marketing Strategy:
- Digital Marketing: Leverage digital marketing channels like social media, search engine optimization (SEO), and influencer marketing to reach a wider audience and engage with consumers in a more personalized way.
- Influencer Marketing: Partner with diverse and authentic influencers who align with the brand's new values and resonate with the target market.
- Community Engagement: Engage with consumers through online forums, social media campaigns, and community outreach programs to build trust and foster positive relationships.
- Content Marketing: Create engaging and informative content that educates consumers about skin care, promotes healthy practices, and celebrates diversity.
- Advertising Campaigns: Develop advertising campaigns that are inclusive, authentic, and resonate with the brand's new positioning.
3. Product Development and Innovation:
- Product Line Expansion: Expand the product line to offer a wider range of skin care products that cater to diverse skin types and tones.
- Sustainable Ingredients: Use sustainable and ethically sourced ingredients to appeal to environmentally conscious consumers.
- Product Innovation: Invest in research and development to create innovative products that address specific skin care needs and concerns.
4. Customer Relationship Management (CRM):
- Customer Segmentation: Segment the target market based on demographics, psychographics, and purchasing behavior to tailor marketing messages and product offerings.
- Personalized Communication: Use CRM tools to track customer interactions and personalize communication to foster stronger relationships.
- Customer Feedback: Actively solicit and respond to customer feedback to improve products and services.
5. Basis of Recommendations
These recommendations are based on the following considerations:
- Core Competencies and Consistency with Mission: HUL has a strong track record in brand management, product development, and marketing. The recommendations leverage these core competencies while aligning with the company's mission to create sustainable and responsible brands.
- External Customers and Internal Clients: The recommendations are designed to appeal to the evolving needs and preferences of external customers while also addressing the concerns of internal clients, including the brand team and stakeholders.
- Competitors: The recommendations consider the competitive landscape and aim to differentiate Fair & Lovely from its competitors by focusing on inclusivity, sustainability, and innovation.
- Attractiveness: The recommendations are expected to lead to increased sales, improved brand equity, and enhanced customer loyalty, making them financially attractive for HUL.
6. Conclusion
By embracing a new name, repositioning the brand, and implementing a comprehensive marketing strategy, Fair & Lovely can overcome its current challenges and become a leading player in the evolving skin care market. This approach will require significant investment and commitment from HUL, but the potential rewards are substantial.
7. Discussion
Alternatives:
- Maintaining the current brand name and identity: This option carries significant risks, as it would likely alienate consumers and damage the brand's reputation.
- Discontinuing the Fair & Lovely brand: This option would be a drastic measure and could result in lost revenue and brand equity.
Risks:
- Consumer backlash: The rebranding and repositioning efforts could face resistance from consumers who are skeptical of the brand's intentions.
- Competition: The market for skin care products is highly competitive, and Fair & Lovely may face challenges in establishing itself in a new market segment.
- Implementation challenges: Successfully implementing the recommendations will require careful planning, execution, and ongoing monitoring.
Key Assumptions:
- Consumers are receptive to a rebranded Fair & Lovely that focuses on inclusivity and skin care.
- HUL is willing to invest the necessary resources to implement the recommended changes.
- The company can successfully leverage digital marketing and influencer marketing to reach its target audience.
8. Next Steps
To implement these recommendations, HUL should take the following steps:
- Form a cross-functional task force: This task force should include representatives from marketing, product development, research and development, and public relations.
- Conduct market research: Gather data on consumer preferences, competitor activities, and emerging trends in the skin care market.
- Develop a detailed rebranding plan: This plan should outline the new name, identity, positioning, and marketing strategy.
- Pilot test the rebranded product: Launch the rebranded product in a limited market to gather feedback and refine the strategy.
- Roll out the rebranded product nationwide: Once the rebranding is successful in the pilot market, roll out the product to a wider audience.
- Monitor and evaluate the results: Continuously monitor the brand's performance and make adjustments as needed.
By taking these steps, HUL can successfully rebrand Fair & Lovely and position it for long-term success in the evolving skin care market.
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Case Description
Emami is facing the heat from activist-consumers as well as its competitors. Competitors have renamed their cosmetic products by dropping the controversial word 'fair.' This was in response to the Black Lives Movement that erupted in the United States in May 2020. However, the movement against fairness is somewhat muted in India and is mostly occurring amongst urban, highly educated, younger cohort who are unlikely to be the users of the product anyway. The significant consumer base yearns for fairness and is willing to spend money on products which help them achieve the same. In such a scenario, how should Emami respond to competitor actions and consumer-activist pressure? The case provides an opportunity to discuss the significance of the brand name, role of advertising and gender stereotypes.
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