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For other uses, see Emami (disambiguation). Emami Limited | Type | Public Ltd Company | Industry | FMCG | Founded | 1974 | Founder(s) | R. S. Agarwal and R. S. Goenka | Headquarters | Kolkata, West Bengal, India | Key people | R. S. Agarwal and R. S. Goenka (joint chairmen) | Products | Hair care, skin creams, soaps and lotions, talcum powder, Ayurvedic health care products | Revenue | Rs 1400 crores (2011–12) | Website | |
Emami Limited is an Indian producer of fast moving consumer goods (FMCG), such as cosmetics and health and baby products. The company is based in Kolkata.
* 1 Products * 2 Subsidiaries * 3 History * 4 Controversies * 5 References * 6 External links
In 2008 the company announced that it intended to offer baby care products.[1]
The company's health products unit offers tonics for colds and coughs as well as nutraceuticals.[2]
The company has the following subsidiaries:[3] * Emami Paper Mills Limited * Emami Chisel Art * CRI Limited * South City Projects (Kolkata) Ltd * Advanced Medicare & Research Institute Ltd (AMRI) * Frank Ross Limited * Emami Realty Limited * Emami Retail Pvt Limited (Starmark) * Emami Biotech Limited * Emami Cement Ltd
The inception of Emami Group took place in the mid 1970s when two childhood friends, Mr. R.S. Agarwal and Mr. R.S. Goenka, left their management jobs with the Birla Group to set up Kemco Chemicals, an Ayurvedic medicine and cosmetic manufacturing unit in Kolkata in 1974. At that time the Indian FMCG market was still dominated by multinationals. Several such companies headquartered in Kolkata were considering shifting out of West Bengal due to labor unrest and political problems.
The company was established with modest capital of Rs. 20,000 and started manufacturing cosmetic products as well as Ayurvedic medicines under the brand name of Emami from a small factory in Kolkata, targeting sales at the Indian middle class.
In the early days the founders personally sold their cosmetics from shop to shop, using hand-pulled rickshaws. They soon established recurring consumer demand, and gradually hired additional staff. A chain of distributors was established and the sale of Emami products spread from West Bengal to rest of Eastern India and gradually to other states. Emami Talcum, Emami Vanishing Cream and Emami Cold Cream sold well. The company's marketing techniques were to sell dreams of beauty to Indian women using radio and TV advertising.
In 1978, Agarwal acquired Himani Ltd, a privately owned cosmetics company with a factory in Kolkata. The business of Himani was almost 100 years old, although it had only been incorporated in 1949 company; it had a good brand equity in Eastern India, but was in financial trouble. Agarwal and Goenka managed to restore it to profit, at considerable risk considering the small capital base of their own company at the time; this later proved to be the turning point for their business.
Agarwal decided to produce health care items and toiletries based on Ayurvedic preparation in the Himani factory. Ten years after commencement of the company, it launched Boroplus Antiseptic Cream under the Himani umbrella in 1984. This became a flagship brand and was extended to other products such as Boroplus Prickly Heat Powder. Emami brands started selling in all states of North, East and West India. Today Boroplus is not only the largest selling antiseptic cream in India but also in Russia, Ukraine, and Nepal.
In the 1983 Bollywood film Agar Tum Na Hote, one of the earliest brand placement campaigns was achieved with lead actor Rajesh Khanna playing the managing director of Emami.
In the 1990s, Emami launches another flagship brand under the Himani Umbrella, Navratna Cool Oil, and expanded production by opening its second factory, at Pondicherry.
The introduction of new brands continued and the company extended its distribution network to South India, with Navratna spearheading the process. In 1995, the partnership firm Kemco Chemicals was converted into a Public Limited Company under the name Emami Ltd. In 1998, Himani Ltd was merged into Emami Ltd.
In 2000, with a view to concentrate on its core FMCG business, Emami's investment undertaking was demerged by issuing shares in Pan Emami Cosmed Ltd to shareholders of Emami. In 2003 a new factory unit was set up at Amingaon, Guwahati. A public issue of 50 lakhs equity shares at Rs.70 followed in 2005. The issue was oversubscribed by 36 times. The share price later rose to Rs.210.
In 2005 Emami launched Fair and Handsome, the first fairness cream for men.
In 2006 the company decided to introduce a Health Care Division and a number of new brands of Ayurvedic OTC medicines.
Among the brands created by the company, annual sales of Navratna are at Rs.300 crore followed by Boroplus at Rs.250 crore and Fairness at Rs.100 crore. Sona Chandi Chyawanprash, Menthoplus and Fast Relief also among the top brands in their respective categories.
In 2006, J B Marketing & Finance Ltd., the erstwhile marketing company of the Emami Group merged with Emami Ltd. and the total turnover of Emami including sales in domestic and export market stood at Rs 516 crores at the end of the fiscal year 2006-07.
Emami Limited acquired a major stake in Zandu Pharmaceuticals Works Ltd, a century-old household name in India, for Rs 700 crore. Emami added some of Zandu's prominent brands like Zandu Balm, Zandu Chyawanprash, Zandu Kesri Jeevan, Zandu Pancharishta, Sudarshan and Nityam Churna to its own range.
Within three decades, the company has grown to Rs. 1000 crore Emami Ltd under the Rs.3000 crore Emami Group.
Emami is still led by Agarwal and Goenka, with the help of second generation directors from their two families and professional staff. The group recently moved to a new corporate office “Emami Tower” in Kolkata.
In 2007, the company attracted controversy with an advertisement for its skin whitening cream for men, Fair and Handsome. Emami and the star of the campaign, Shahrukh Khan, were accused of perpetuating racism.[4]
On December 9, 2011, Kolkata police arrested Agarwal and Goenka, founders of Emami and directors of AMRI Hospitals, for negligently causing death to 91 people as a result of a fire at ARMI Hospitals on the same day. It is recorded as the largest hospital tragedy in India, caused due to storing toxic and inflammable materials in the basement of the hospital, which was sanctioned for car-parking. The fire alarms and sprinklers installed at the hospital did not work during the fire.[5]

Fair and Handsome : Be Fair , Be Handsome
Brand : Fair & Handsome
Company : Emami
Agency : Situations

Brand Count : 256
Fair and Handsome is a brand that created the Men's fairness cream segment in India. Launched in 2005, the brand became the creater and the market leader of this segment. Emami was looking for ways to challenge the Fair and Lovely brand from HUL. Emami had a brand Naturally Fair which was small compared to FAL.

Emami went for serious customer research which showed that 25-30% of customers of Fairness creams were men. That customer insight paved way for a specialized brand for men. Fair and Handsome is targeted at young urban men aged 15- 35. The brand was launched with much promotion across visual media.

Watch the TVC here : Fair and Handsome
The campaign for Fair and Handsome is one of the lousiest campaign I have ever seen. Here the main character is depicted as a fool who gets into a ladies hostel to steal a fairness cream ( or has he got in for some other purpose !) . I still couldn't understand why couldn't he just go to a supermarket and buy it.

The brand is being positioned as the fairness cream that can make men handsome and also attractive to girls. The brand uses the tagline : Be fair Be Handsome . Whether the campaign is lousy or not , after two years of launch , Fair and Handsome is worth Rs 45 Crore now commanding a market share of over 30-40% in the segment.

The brand has to be appreciated for creating a category. It is true that men uses creams meant for women. Hence there is a logic in creating a brand for men in this category. The total fairness market is estimated to be around Rs 900 crore and men's segment is around Rs 160 crore. Although Fair and Handsome has gained the first mover advantage, already competition is hotting up. HUL has extended FAL into men's category with a variant Menz Active. Nivea and Lo'real also have moved into this segment. Unlike Fair and Handsome ( FAH), other brands are little subtle in positioning their brands as a fairness cream.

Nivea uses the term Whitening while Lo'real positions the men's range Men Expert has a range of skin solutions for men. However HUL directly positions its Menz Active as a fairness cream but the target market are older men aged 25-35 . These brands faces the issue of the reluctance of men to be seen using a cream because cosmetics traditionally is viewed as a category meant for females. Situations are changing and the Metrosexuals are least bothered about openly caring about their looks. The changing face of modern man is definitely indicating a big opportunity to these brands.

In the face of emerging competition Emami has moved aggressively to promote Fair & Handsome by roping in Bollywood icon ShahRukh Khan as its brand ambassador. The TVC featuring SRK is already on air.
According to a report in agencyfaqs, SRK was initially skeptical about endorsing a fairness brand for PR reasons, However Emami was able to convince SRK into endorsing this brand. Fair& Handsome is the first brand to target men. It was followed by Fair and Lovely extending itself to men's variant Men's Active. Now this segment is seeing lot of activity .
Fair and Handsome is banking on its 5 power Fairness System :
1.Double Strength Peptide complex which was developed in collaboration with Activor Corp. USA.
2.Sunguard: Prevent sunburn
3.Stress Busters: prevent wrinkles
4.Anti Bacplus : anti bacterial
5.Herbo Cool : herbal ingredients.

The brand website also gives an interesting chart that explains why fairness is important.
This chart in a way explains the Brand's thought process.
Fair and Handsome retains the original tagline : Be Fair, Be Handsome" in the new campaign also.
The brand gives an impression that the users are having a lack of confidence and feels insecure and have less self esteem. Again the brand assumes that Fairness gets women attracted towards men. I feel that the brand still lives in the stone age.
I feel that FAH has got its assumptions wrong. By depicting the main hero of the ad as a person with low self esteem, the brand is repelling lot of self assured men who wants to take care of their skin rather than attracting chicks. Gone are the days where Indian men had a complex about the skin color influenced by the long oppression by the British. Now the urban male is a more evolved one . ( I am not denying the fact that there are people who have complex about being not fair) . Men are more exposed to sun and dust and the traditional creams may not be effective for men. Hence such brands should address the host of issues faced by men rather than talking about being attractive to girls. I feel that FAH by default is restricting itself to the Fairness proposition ( which is not a bad idea ).

Even when you are addressing the issue of fairness, the brand have to project itself as an aspirational brand rather than as one for losers. Even the new campaign fails terribly in execution.
The new campaign and the brand ambassador in SRK may spike the sale of this brand for a while, but in order to move up the ladder, FAH have to project itself as a winner rather than a brand for losers.

* 1. Consumer Behaviour ---On Fairness Cream * 2. PERSONAL CARE SECTOR IN INDIA: One of the keyAN OVERVIEW Brand warsconstituents in FMCG sector & Awareness ofPrice wars Resulted in the market The high value of fair skinpersonal hygiene for fairness creams and bleaches Fairnesstouching Rs 2,000 crore’s creams account for approximately Rs 1,800 crores * 3. NATURAL AND Introduction of herbal, traditional ayurvedicHERBAL BASED PRODUCTS and Positioning changed from amineral ingredients in cosmetics. rather traditional and old- fashioned platform to modern healthy Leading to greater social acceptance and higher salespractice. through the year. * Hindustan Unilever Ltd4. SUN CARE IN INDIA Hindustan Unilever Ltd accounted for overled sun care sales in 2010, 41% value sales in 2010. * Accounts the5. FAIRNESS CREAM The market growth rate rangeslargest share in skin care sector. between 15 – 20% on a year-to- HUL`s Fairyear basis. & Lovely(76%) followed by CavinKare`s Fair Other importantEver(15%) players like Godrejs Fairglow, Emamis Fair and Handsome, Vicco and Himalaya share the rest of the market share. * 6. MEN’S GROOMING The growth of Increased male spending on grooming products.TAKES OFF latent but effective driver could bethis segment has been exponential the fact of low penetration of Anthese products in the market. underpenetrated market always crates scope for enormous Usualgrowth. categories of pre-shave and razors, men’s skin care, which promised fair and blemish-free skin, performed well. * 7. IMPLEMENTING APPROPRIATE MARKETING STRATEGY Fairness cream producers go for “Differentiated Marketing Strategy” AppropriateCharacterized by : Companies having cut throatby financially strong companies Strongly established in personal care sectorcompetition ( especially skin products) * VARIETY SEEKING8. CONSUMER BUYING HABITS Low consumer involvement but significant perceivedBUYING BEHAVIOUR: brand differences.“The individual likes to shop around and experiment Consumerswith different products.” are effected by advertisements, coloring and packaging, brand image and celebrities * 9. Direct marketingAPPLICATION OF CONSUMERRESPONSES TO DIRECT MARKETING Allows businesses andis a channel-agnostic form of advertising. nonprofits to communicate straight It enables toto the customer. engage directly with the audience - whether they are prospects, leads, Positiveend users or existing customers. results can be measured directly, Flexible Targeting, Ease of Management, Rapid Delivery, Relationship Building * 10. Cont.…Advertising interactive consumer email, mobile messaging, techniques such as catalog distribution, fliers, online display ads, websites, outdoor advertising.promotional letters, and * 11. DIRECT SELLERS MAKE DEEP The market share of directINROADS sellers, both multinational, for example Amway , Avon and Oriflame, and domestic, for example As a result ofModicare, rose in 2010. concerted efforts to bring in new products in color cosmetics and skin Expansion of networks to reachcare to create interest and excitement. Amway and Oriflame also startedmore consumers in smaller cities. Judged that they had reached critical mass in terms ofadvertising. their networks, which would create pull if they advertised. * Cultural symbolism-color, visual12. CULTURE Human relationships Sub-culture-race Gender roles, child rearingsymbols * 13. Celebrities acting in theREFERENCE GROUPS advertisements-aspiration groups- Comparative group advts-ponds white beauty, fairever fair& Brand preferences influenced bylovely family & friends(especially girls) * Since it is a privately used14. not a necessity brand of the cream has less influence compared to the Familyusage of the product & friends provoke to use fairness Buying decision: wife dominantcreams. * 15. INNOVATIONS Continuous development – ayurvedic, oil control, anti – wrinkle, pimple remove, spot remover, fairness, uv Adoption depends onprotector relative Trialabillity – sample sachets, side –advantage, cost Diffusion of the product will be regardingeffects * 16. HUMAN SKIN TONE COLOUR * 17. SNOW WHITE SYNDROME• The growth of fairness cream companies in the country is indicative of Indias obsession with white skin, also called the Snow White syndrome.• Top brands such as Hindustan Unilevers Fair and Lovely and LOréals White Perfect have been growing by up to 18 percent a year. * Skin color matters a lot for18. women in Fairness is a very valuable thingIndia. here, looked on as The fashion world can be a big agent fordesirable. change in this area. * 19. FAIR, THE INDIAN OBSESSION WITH FAIRNESSCREAMS Every girl wants to be fair like Aishwarya Rai Bachan * 20. PSYCHOLOGICAL FIELD * 21. “Black Skin White Masks” book author Fanon says “As much as the white man thinks himself superior to the black, the black man desires to be white. Indeed, black men want to prove to white men, at all costs, the richness of their thought, the equal value of their intellect”. “For the black man, there is only one destiny. And it is white”. * 22. Myths of Fairness Creams• Most advertisements claim – and obviously unfairly - that the continued use of their fairness creams will change the skin color of the user with seven days or so.• The gullible public fall a prey to these types of misleading advertisements, little realizing that such magic cannot and will not happen * 23. There are instances of several persons persistently using these creams for several years with absolutely no improvement in their skin complexion * Fairness creams have a24. Fairness Cream in India huge market in In India, the sector hadIndia, both urban and rural registered 23% growth in Surprise that India leads the markets,2010 followed by Saudi Arabia. * 25. The market for men’s fairness products is valued at Rs 30 million, and constitutes 35 percent of the market. handsome-cream * 26. Facts to be Scientists say that skin colour is determined byconsidered the amount and type of melanin, the pigment in It is said that whetherthe skin. one is fair or dark is dependent more on genetic rather than Yet, people all over the world are preoccupiedenvironmental causes. with the colour of their skins. * Indian male take an27. average of 20 minutes in front of mirror to groom them compared with Indian female who take an average of 18 minutes in front of mirror at every morning This is also noticed that 25-30% of fairness products are purchased and used by male customers * Indian men were using fairness creams that were28. Fair and Handsome is a brand that createdoriginally targeted at women. Launched in 2005, the brandthe Mens fairness cream segment in India. became the creater and the market leader of this segment. * 29. Emami went for serious customer research which showed that 25-30% of customers of Fairness creams were men. The total fairness market is estimated to be around Rs 800 crore cream * 30. Male skin in India • Three times more exposed to the sun UV rays • Five times more exposed to pollution • Twice more exposed to stress • More Abused by abrasive shaving blade action handsome-cream * 31. TV commercialPromotion form Print "Hi Handsome, Hello Handsome" advertising "Hey man, are you using lipstick? Then why you are using fairness cream of female? * 32. Reasons for the growing demand • Greater access to television, • which has made the Indian consumers beauty consciousness • increased his or her need to look presentable and attractive • Increased advertising in general • Greater product choice and availability Cream * 33. Demographic Effects • Greater tendency to use fairness creams in Southern India • Frequency of application decreases with age • Highest percentage of users among single working women • Younger women more inclined towards branded products • Men are increasingly using fairness creams Cream * 34. Vacant Position Need for a newproduct • Fairness products contain bleaching agents which make the skin dry and flaky, especially during the winter season • Consumers need to apply a separate moisturizer after the application of the fairness product • No existing products for use on other visible parts like arms and feet * A fairness product that contains a moisturizer and is priced low enough to be applied on arms and feet35. Vacant position * 36. Cocoa butter hand lotion Nivea hand body lotionBody lotion brands Avon naturals conditioning water lily & aloe hand & body Vaseline Aloe Vera-hand and body lotionlotion * Skin Revitalizer Whitening Nourishing Moisturizer37. Body lotion features * 38. What fairness cream u use? Option Respondents Fair & Handsome 31% Menz active 13% Fair ever 17% Nivea 13% Fair one man 26% * 39. HOW FREQUENTLY YOU BUY CREAMS? Option Respondents Weekly 16% Occasionally 24% Monthly 20% As per need 40% * Age group:40. Survey Characteristics Gender20 – 30 : 11 Male & Sampling :29 Female Convenience sampling * 41. 72% of the respondent prefer FairFindingsBRAND PREFERANCE: & 10% of the respondent 15% of the respondent prefer GarnierLovely 3% of the respondent othersprefer Olay * Major factors42. People change their creaminfluencing buyers behaviour is Quality. because it doesn’t suite 80% of consumers are satisfiedtheir skin. with their current 35% of consumers prefer brand outlets forbrand. 37% of consumers prefer departmental stores.buying. * 43. In 1975, HLL launched its firstBackground of Market positioning fairness cream under the F& With the launch of FL brand.&L, the market, which was dominated by Ponds (Vanishing Cream and Cold Cream) and Lakme (Sunscreen Lotion), lost their Thedominant position. dominance of HLLs F&L continued till 1998, when CavinKare launched its Fairever cream in direct competition with F&L. * 44. The Celebrity endorsement – competitive tool.Brand positioning biggest challenges in marketing communications - to break through ever Users and non-users - brands perceive theincreasing media clutter. brand positioning meaning differently. * 45. Background for men Customer research which showed that 25-30% offairness creams Customer insight paved way for acustomers of Fairness creams were men. specialized Fair and Handsome is targeted at youngbrand for men. urban Fair and Handsome is commanding a marketmen aged 15- 35. share of over 30-40% in the segment. * 46. TOP 10 BRANDS FOR FAIRNESSCREAMSFAIR AND LOVELY * 47. OLAY NATURAL WHITE * 48. NIVEA VISAGE LOREAL WHITE PERFECTSPARKLING GLOW * 49. LAKME PERFECT NEUTROGENA FINE RADIANCE FAIRNESS * 50. FAIRONE BY SHENNAZFAIREVER HUSSAIN * 51. OTHER BRANDSLOTUS HERBALS BIOTIQUE * 52. TURMERIC SKIN KHADI FAIRNESS CREAM BYCREAM (OIL BASE) MEGHDOOT GRAM UDYOG SEWA SANSTHAN * 53. REFERENCE WEBSITES and ARTICLES1. profit/1/17399.html3. handsome-cream5. Tackling the Snow White syndrome in India - Get Ahead.html9. The Reasons Humans Have Different Skin Colors.html10. BBC News - Indias unbearable lightness of being.html11. BBC NEWS South Asia India debates racist skin cream ads.html13. Tejas Article Fair & Lovely Redefining Beauty.htm

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Patent Trolls

...Patent Trolls Patent Trolls as defined by Investopedia is a term used to describe companies or people that misuse patents as a business strategy. These patents are bought by Non-Practicing Entity’s (NPE) who buy these patents from bankrupt companies and auctions and have no intentions of developing it. Their business strategy is to do some research and file lawsuits against infringing companies. These Patent trollers cost the US Company billions of dollars each year. They disrupt the productivities of many companies and affect the whole idea of creativity and innovation in the United States. Patent trolling cost the companies $29 Billion in 2011 in direct costs and up to $80 Billion in other ancillary costs. Add to that the incalculable costs in terms of productivity and disruption of innovation and entrepreneurship. Among the ones that are most affected by this are the small and start-up companies. To give a comparison, the terrorist attack of 9/11 had an economic impact of $123 Billion whereas, patent troll lawsuits amounted to $500 Billion in lost wealth to defendants. The next question that needs to be answered is why there is a rise in this sort of unethical business. This business has a very low start-up cost which usually requires buying out junk patents or acquiring patents from bankrupt companies. This business also has a very low overhead cost Furthermore, the cost of running these sort of businesses are......

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Tools for Business Decision Making

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Nada En Absoluto

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