Fair & Lovely A womans passion for beauty is universal and catering to this strong need is the worlds

largest selling fairness cream - Fair & Lovely (FAL). While beauty is a universal desire amongst all women, specific beauty needs and beauty icons differ across regions. In the US and Europe, women place a premium on youthful looks; therefore anti-aging creams drive the skincare markets in these countries. In Asia, this predominant beauty need is not anti-aging, but it is fairer or lighter and clearer looking skin. For example, in India 78% of women would like to be two shades lighter, as they believe it makes them more attractive and confident (Source: Habits and Attitudes Study, HLL MR 1998). In India, as also in many other Asian countries, fairness creams act as all-in-one skincare regimes. Indeed fairness, by itself, stands for a bundle of skincare benefits (like oil-control, blemish reduction, sun protection, etc). Also, most women in India tend to use only one cream (usually fairness cream) for all these benefits as an economical alternative. Achievements For more than a decade, Fair & Lovely has been the undisputed leader in the skincare market in India, with over 40% value share. This is more than five times the size of its nearest competitor and comprises a share of more than 80% of the fairness creams sub-category. (Source: ACNielsen ORG Retail Panel). Over the past three years, the brand has grown dramatically from Rs. 3 billion in 2000 to more than Rs. 6 billion in 2003 (Source: Internal Sales Data). This is reflected in the three-point increase in 2003 market share and the pre-eminent position FAL enjoys as the single largest brand advertiser in 2002 and 2003. The growth has come from a slew of new, rule-changing innovations that have redefined the skincare market. The first of these was the introduction of a revolutionary new packaging format of the big-nose sachet at Rs. 5. The re-closable sachets gave consumers an opportunity to store and dispense FAL in a way that was neat and cosmetic. This single pack has exploded volumes of FAL in rural and small town geographies.In 2002, Fair & Lovely embarked on a path of audacious innovations that have targeted large, new clusters of consumers with distinct skin needs.

The first of these innovations was the Ayurvedic Fair & Lovely fairness cream launched in 2002, targeted at nature-inclined people and was based on the ancient fairness recipe of Kumkumadi tailam, a mixture of sixteen ayurvedic ingredients. It went on to become the second largest skin cream in India (after Fair & Lovely) within one year of launch. This was followed by the launch of Fair & Lovely anti-marks (for consumers with blemishes as the primary skin problem) and Fair & Lovely for deep skin shade. Probably because of customisation for particular skin types and an increase in consumption both have helped make huge incremental gains for the brand. History Fair & Lovely was developed in 1975. Nationally marketed since 1978, this fairness cream brand has been extensively tested with consumers in India and abroad. In terms of benefit delivery Fair & Lovely has proven to be superior to all key competitive brands. The launch of the product was met with enthusiasm. Women loved the idea. Women wanted to become fairer. Women discovered that it actually worked. These are the reasons why Fair & Lovely became the number one cosmetic in Indian homes within six years of its launch and has, ever since, stayed at that position. In 1988, Fair & Lovely went international. Today, Fair & Lovely is not just one fairness cream, but a range of fairness products, successfully sold in 40 countries, that are changing the lives of over 250 million women around the world. Product Fair & Lovely's formulation contains a unique fairness system that combines active agents and sunscreens. It works by gently controlling the dispersion of melanin and preventing the sun induced effects of melanogenesis. Melanin is the predominant factor in determining skin colour and is produced in the lower layers of the epidermis and then distributed to the upper layers. The dispersion/aggregation of melanin largely contributes to skin colour. Fair & Lovely is formulated with optimum levels of ultra violet (UV) sunscreens and niacinamide, which is known to control the dispersion of melanin in the skin. It is a patented and proprietary formulation developed at the Unilever Research Centre. Niacinamide (Vitamin B3) is a water-soluble vitamin and is widely found in cereals, fruits and vegetables. The UV components of the formulation are scientifically chosen and used at optimum levels to provide wide spectrum protection from the UV rays of the sun. All the active ingredients in the Fair & Lovely formulation function synergistically to lighten skin colour through a process that is natural, reversible and totally safe. Extensive clinical studies and consumer research over 28 years have proved that Unilevers patented formulation shows significant, consumer-perceptible skin lightening effects after four to six weeks. Not only that, repeated tests conducted

with consumers of all skin types have validated the absolute safety of the formulation. Recent Developments Fair & Lovely has not only doubled in size over the past three years it has also witnessed a huge upward movement in equity and advertising indicators. Consumers now perceive the brand as empowering, achieving and transformative. A lot of its detractors have vanished, thanks to the launch of FAL Ayurvedic and the new variants. (Source: Brand Equity study, Quantum Research, 2003).

Most importantly, almost every key advertising indicator has shown a huge positive trend with the brand perceived as modern and innovative by 59% of the total population, up from 41% in mid 2001 (Source: ATP study, IMRB, 2003). In April 2004, Fair & Lovely launched its latest variant an oil-control fairness gel with papaya and watermelon extracts for oily skin types. Different from ordinary creams, this product has cutting-edge oil-control technology and comes as a light, non-sticky gel. Fair & Lovely in the near future will launch more rule-changing innovations, even as it consolidates its existing range through market activation and sampling. The advertising has also evolved and taken the change your destiny positioning to new heights with the cricket commentator TV commercial. This ad celebrates the protagonists success in a traditional male-dominated area like cricket while still keeping the tone empathetic and emotional. One of the most interesting and far-reaching recent developments has been the launch of Fair & Lovely Foundation, a non-profit trust which plays the role of a catalyst to help economically empower Indian women. To achieve this, the Foundation is committed to providing information and resources that will enable education, shape careers, encourage enterprise and ensure a brighter future for very aspiring Indian women. Comprising an advisory body of leading individuals, this Foundation has undertaken various projects and initiatives in keeping with its vision of taking women to a brighter future. Among the FAL Foundation projects are: Project Saraswati for urban India is an education project that identifies twenty deserving women graduates and awards them Rs. 100,000 per annum for a period of two years. The scholarship covers all post-graduate courses within India. Project Disha is a career driven initiative designed to address the needs of girl students passing out of Classes X and XII and aims to answer various career related questions. This two-day career fair provides information on over 110 career options and is held in different cities. The students have the advantage of going through one-on-one counselling, aptitude tests, career workshops and exhibits before deciding on a career and

identifying the next course of action. To date, over 100,000 students have benefited from these career fairs. In association with Dr. Rekha Seth from the Cosmetologists Society of India, Project Saundarya is a first-of-its-kind programme for aspiring beauticians. Project Saundarya is a three-month professional course, followed by a one-month internship that offers practical training designed to mould women into ace beauticians. Project Kaladarshan focuses on training women among DWCRA (Development of Women and Children of Rural Areas), Self Help groups in Andhra Pradesh to acquire skills in embroidery and garment designing thereby ensuring for them total financial independence. Promotion The bigness of Fair & Lovely lies in the fact that it transforms a woman in ways that are more than just skin-deep. Feeling good does wonders to self-confidence and Fair & Lovely helps people do just that. It gives them the self-belief to steer their own destiny. It gives them hope and changes the way they (and others) see them. In other words it allows them to dream. Therefore, from a positioning of celebrating romance and marriage, the brand has today evolved to give women courage to move ahead, to challenge and change destiny itself. All Fair & Lovely advertising is developed around this core insight and in a manner that is positive and motivating, so as not to hurt the sensibilities of anyone not even the people that it does not seek to address. Though the advertising ideas have changed with time, the soul of Fair & Lovely never has. Commensurate with the seriousness and aspirational image of fairness in consumers minds, Fair & Lovely ads showcase stories where the woman challenges the unhealthy societal realities of status quo and discrimination and finds that she is empowered to carve out her own future. All the Fair & Lovely ads carry the brands message of hope and self-confidence. These are really consumers echoes that identify with the protagonists and have developed a heightened sense of emotional bonding with Fair & Lovely. Overall the positive message of the brand resonates with consumers across the length and breadth of the country. Quantum Research, Indias leading market research firm sums it up thus: Fair & Lovelys fairness is a transformative state which is linked to creating a competitive advantage for oneself and gaining control over ones destiny at the personal and social level. Aided by the brands performance, Fair & Lovely has been ranked amongst the Five Most Trusted brands for young women in India (Source: The Economic Times survey of 180 top brands in 2001 and 2002). Brand Values Fair & Lovely is a brand with passion. Empowering women to change their own destinies is a deeply felt human desire that the brand communicates to its consumers. The brand is seen as an expert and as an achiever, trusted by millions

of women in India and 39 other countries across South and South-East Asia, Arabia, Egypt and Central Asia. There is nobody more passionate about Fair & Lovely than the woman who uses it. And there is nobody who feels more pride for Fair & Lovely than her, either. Developed in 1975, Fair & Lovely is the world's first and the largest selling 'fairness' cream. Fair & Lovely contains no bleach or harmful ingredients. Instead it provides visible fairness through Vitamin B3 in a safe and reversible process. Fair & Lovely was created by the Unilever Research Centre and has been in the market for over 28 years and is available in over 40 countries. In 2003, Fair & Lovely was rated as the Twelfth Most Trusted brand in India by ACNielsen ORG-MARG. Fair & Lovely has impacted the lives of over 250 million women around the world.

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