Prof. Amita Mittal
Submitted By:
Section ‘A’ Group 11
On
29/07/2011
Emami Limited: A Strategic Analysis |
Table of Contents 1. Introduction 2 2. Porter’s Five Forces 2 3. Problem Statement and Objectives 5 3.1 Problem Statement 5 3.2 Strategies 5 References 6
List of Figures Figure 1 Porter’s Five Forces 2
List of Tables Table 1 Types of Programs 5
strategy for fair and handsome
* Objective – To sustain the leadership position in the men fairness segment.
F&H currently has over 80% market share in the men fairness segment. Being a first mover in this segment, Emami was able to capture maximum value. Other factors such as strong communication and branding strategy (i.e. using Shahrukh Khan as the brand ambassador) were also the critical success factors for Fair and Handsome.
* Scope – Product Offering (customer)
* Advantage – Emami had built its competitive advantage for Fair and Handsome by identifying an unmet need in the market – i.e. need among the men to become fairer. It is therefore the need-based positioning, from which Emami has been deriving the advantage.
With the changing competitive landscape, Emami may no longer be able to compete on the need-based positioning alone. There have been a number of competitors of Fair and Handsome such as Fair & Lovely men variant, Nevia men fairness cream and Garnier Light for men that have entered the market and are trying to take the market share away from Emami.
In order to sustain the competitive advantage, Emami will have to reposition itself quickly from need to a variety-based offering. This could mean two possibilities – * Introducing new variants such as Kesar, Sandalwood, etc. * Brand extension of F&H, i.e. product line extension of the same brand into products such as F&H face-wash, scrub, etc.
Identified need for fairness among men to gain first mover advantage
Variety based new positioning
References: In 2010-11, Zandu balm’s mention in the popular song Munni Badnam increased consumer awareness of the balm and helped it gain market share * Emami’s plans for Zandu Balm (2011-12):