Degree
Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
2018
Project Type
MBA Executive Research Project
Access Type
Restricted Access
Keywords
Executive Summary
There were two main objectives of this research paper. First was to study and analyze men fairness cream market and second was to check feasibility of launching a men fairness cream brand. The two were also interlinked as the findings of first objective were to be used to conclude our second objective.
For our first objective we adapted three primary methods. First was to do literature review so that we already know what already has been researched on this topic and also to get information which we can't get through our limited resources. Second was through surveys of our target market which is urban males. We analyzed survey data through IBM's statistic software SPSS by using both statistical methods and graphs. Lastly, we interviewed a number of professionals in this field to get deep insights of this industry. The information we got from these interviews are priceless specially from MD Evan and Mayer International who himself is a successful Pakistani entrepreneur, have a very deep knowledge of skin care industry and have successfully launch a number of skin care products in Pakistan as well as abroad.
The results we got from literature review were that it is not only now that people prefers being fairer but it is embedded in our history and even centuries ago people of sub-continent preferred fair colors because of many reasons. Also, this is not only limited to our sub-continent and even in other parts of worlds superiority of fairer complexion can be observed. In women fairness cream market, more than half of women population uses fairness creams and it is not only limited to Pakistan but researchers world-wide have found similar results in their country. Therefore, if marketed properly men can also be attracted to use fairness creams which is so common in women. Also, a number of factors which effects men's attitude towards buying cosmetic goods were shortlisted. They included self-image, aging effect, physical attractiveness, healthcare, attitude, life style, advertisement and purchase situation. The GDP growth rate of Pakistan which is predicted to be 5.7%, growth rate of small-scale industry in Pakistan which is expected to be 8.18% and CPI inflation which is currently 3.8% was also researched.
While researching Men Fairness Cream market of Pakistan, it was found that its current size is PKR 406.8 million.The CAGR growth of men's skin care category from 2012 to 2017 has been recorded at 8.5%. Current market leader in men's fairness cream market is Unilever's Fair and Lovely Max Fairness with estimated sales volume of PKR 340.1 million.
The results of our survey can be summarized as men in their 20s and 30s purchase more fairness creams, there is no significant difference between purchasing of fairness cream by married and non-married men, men who are employed buys more fairness cream than students and business men, men of upper-middle income group buys most fairness cream, the more a person spent time outdoor in sun light more he uses fairness creams, men with medium and medium light skin colors use fairness cream more, in our target market of urban males, men usually have normal or oily skin, despite studies showing that handsome and beautiful people tends to live better life, this perception is not very widely accepted in our target market, men of our target market do not usually believe that using fairness cream will make him more handsome, but those who believe in it uses more fairness creams, consumption of men fairness creams is very low in our target market, our target market usually buys fairness creams from modern stores than retail shops and then online stores, the significant factors which are considered by our target market while purchasing fairness cream are functionality and brand name, the optimum price which is not very low to not expenses and covers more than 75% of our target market's requirement is Rs. 200 and the significant features that if provided in a fairness cream our target market will pay extra price for it are have UV protection, makes skin healthy, is certified by international bodies and have only halal ingredients
A comprehensive feasibility analysis was done in the end for launching a fairness which have a very good functionality, have UV protection, makes skin healthy, is certified by international bodies and have only halal ingredients priced at Rs. 200. Our marketing strategy will be to focus our budget on digital marketing and BTL sampling activities with primary targets being men in their 20s and 30s, men who are employed, men of upper middle income group, men who spent a lot of time outdoor in sun light and men with medium and medium light skin colors. The conclusion of the feasibility analysis was that an investor can profitably launch a men fairness cream brand with an investment of only Rs. 5.9 million and get a return of 27.5% on it by the end of 10th year. NPV of this project will be Rs. 26.5 million and IRR is 21%.
Pages
103
Link to Catalog Record
https://ils.iba.edu.pk/cgi-bin/koha/opac-detail.pl?biblionumber=106254
Recommended Citation
Ahmed, S. (2018). Feasibility study and business plan for a new men fairness cream in Pakistan an entrepreneurship venture (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/79
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