Humayun Farooq is the new brand manager for , a hair removing cream targeting females in

Pakistan. Although introduced in Pakistan in 1999, Veet suffers from low brand awareness and market share. Benckiser’s management is concerned about the brand’s performance; it is convinced that the product, given its superior quality, could take the company to new heights. A conservative society where women do not feel comfortable buying hair removing creams,

Pakistan is a difficult market to operate in. Farooq’s mandate in 2009, is to identify a local execution of the global positioning campaign, such that it builds brand equity and also resonates with the target market.

Reckitt Benckiser (RB)

Headquartered in Slough, United Kingdom, RB has operations in over 60 countries with its products being sold in almost 200 countries around the world. These countries are categorized into various regions or clusters. With a German and British heritage, RB’s history spans over 150 years of continuous innovation for consumers all over the world (see Exhibit 1).

Due to an ageing population in US and the European markets, there is an increased emphasis placed by the RB management on white spaces1. These white spaces pose peculiar challenges to new marketers, such as, underdeveloped infrastructure, low purchasing power and diverse set of customers. Local cultural values and norms further complicate the task of introducing global brands.

Moreover, RB divides its operations into three types of markets, namely:

1. Developed market

1 Developing countries like China, India, Pakistan and African countries represent white spaces and new customers for RB. 2. Developing market

3. Underdeveloped market

This categorization is based on RB’s own movement into a particular country or market. Thus

Japan for RB is a developing market as the company’s entry into the Japanese market is recent.

RB’s core values include achievement, entrepreneurship, team spirit and ownership. A global consumer goods leader in health, hygiene and home, RB is driven by innovation. The company heavily focuses on markets with significant growth potential. For example, RB believes in investing heavily in the relatively new Automatic Dishwashing category rather than in the congested Laundry Detergent category. The company believes that by seeking out fast growing categories where there is real consumer demand, it can maximize both its returns and its growth2.

Since 2000, RB’s strategy has been to focus on the Powerbrands3 and the company follows the global marketing model. The world is seen as one market and an overall standardized marketing strategy is developed for entire set of country markets; only marketing mix elements are adapted wherever necessary. A number of RB’s products are aimed at the female head of households.

The company divides its products into five categories: fabric care, surface care, dishwashing, home care, and health and personal care (and two non-strategic businesses: food and

Pharmaceuticals). For each category, there is global alignment to bring harmonization into the marketing programs carried out in various countries of the world (see Exhibit 2 for marketing organogram). The Global Marketing Manager (GBMM) develops and maintains global success

2 www.rb.com 3 Powerbrands at RB are defined as those that have Gross Margins above 40%, contribute approximately 20% in value share and are widely available in a cluster. models (GSMs) and local success models (LSMs). GSMs include global best practices which are disseminated amongst local marketing teams (LMTs) present in different countries to study as guidelines. LSMs on the other hand are developed by the LMTs, are transferrable to other countries in a cluster. These LSMs are shared with the GBMM and may eventually be added to the GSMs.

RB Operations in Pakistan

Pakistan is classified as an underdeveloped market for RB; posing some unique opportunities as well as challenges. According to the RB website:

“Diversity characterizes our operations across Africa and in the Middle East”.

Product marketed by RB Pakistan include , , Veet, , , Moov, Krack,

Dispirin, Cherry Blossom and Robin Blue

Pakistan

Located between Middle East, India, China and Central Asia, Pakistan is a country of multiple cultures and ethnicities. It is the sixth largest nation of the world. More than one third of

Pakistan’s population resides in urban areas, making Pakistan the most urbanized nation in South

Asia. The population of Pakistan is generally skewed towards bigger cities and bigger villages.

Top twelve towns account for 3/5th of the urban population and approximately 2/3rd of the rural population resides in the relatively larger 9000 villages of the country. Out of the Metros which include Karachi, Lahore and Islamabad (KLI) are the largest cities and are easier to target both in terms of advertising and distribution.

Developing at a considerable pace, one can see the country opening up to new ideas and embracing new technological products. Pakistan is amongst the fastest growing nations in terms of broadband internet and mobile penetration. A major force behind such exponential growth is the young population of Pakistan. Every two out of five Pakistanis are below 15 years of age and more than half the population of Pakistan is under 20 years in age. The average household size in

Pakistan stands at 6. The literacy rate in Pakistan is slowly growing standing at approximately

54%.

As a result of all these changes, one sees a number of developments taking place in urban

Pakistan. There is a growing restaurant and coffee culture – eating out with friends and family has become a trend in the top three cities of Pakistan. There is growth in the local fashion industry, gaining recognition in international markets. Local pop music has flourished and a number of bands have become famous not only nationally but also internationally. Urban women in Pakistan are entering workforce, getting educated and empowered.

Hair Removing Solutions available in Pakistan

Hair removal can be primarily divided into two methods; temporary and permanent. Usage &

Attitude study commissioned by Farooq in 2009, indicated that approximately 2 percent of the

SEC4 A female customers in Pakistan opted for permanent methods (see Exhibit 3 for complete description of SECs in Pakistan). Firstly, it was perceived to be a luxury that only a few could afford and secondly, there were very few licenced practitioners available5. Hence, more popular methods of hair removal were temporary. Temporary hair removal was classified into two broad categories: depilation and epilation. The former is the removal of hair from the surface of the

4 SEC stands for Socio Economic Classification 5 Research conducted by RB in 2009 skin, whereas the latter is the removal of the entire hair including the part under the skin6. Veet products available in Pakistan were a part of the depilatory solutions available in the market.

Findings from the Usage & Attitude study with respect to various hair removing solutions available in the market were as follows:

1. Razor blades: although most women found this to be easy and convenient, they were

reluctant to admit that they ever used a razor. Razors were perceived to be a male product

and therefore females felt embarrassed admitting that they also used it. Additionally,

women who believed that using razor lead to thicker hair did not prefer this method at all.

2. Electric shavers: these were considered to be a better and safer solution than simple razor

blades as the chance of cutting the skin while shaving was well reduced. Although buying

an electric shaver was an expensive proposition, yet it was perceived as a one-time

expense.

3. Depilatories: Using depilatories was considered to be a more flexible and pain free

option. However, customers with sensitive skin needed to patch test a depilatory before

committing to long term usage. Depilatories in the cream and lotion format were likely to

cause skin irritation and pigmentation of certain parts of the skin. Every 25gm packet

needed to be replaced once a month if used on a weekly basis.

6 From wikipedia 4. Epilators: Since these pluck the hair out from the root, they were believed to leave the

skin smoother for several weeks. However, they could only be used for legs and

forearms.

5. Waxing7: although an inexpensive solution, customers believed it was a painful and

tricky process. Females usually went to the beauty salons for waxing, however, there

were complains of allergic reactions to waxing.

6. Laser treatments8: Laser hair removal was perceived to be a very expensive solution. In

order for visible results, multiple laser treatments were required; the treatment was also

thought to be a cause of skin discoloration and scarring.

Although these methods were available, the hair removal market in Pakistan could be approximated to waxing, shaving and depilation9. Some of the characteristics around which hair removal techniques were compared included functionality, affordability, pain and flexibility (see

Exhibit 4).

Veet Hair Removal Products

Veet is a premium depilatory solution for hair removal. It was first marketed in 1901 in Canada under the brand name Neet. Neet was the first company to develop a cream for removing unwanted body hair. 30 years after its formation, Neet was acquired by a British company DAE

Health and the brand name was changed to Veet. In 1960, RB purchased Veet and the brand

7 this is a technique of applying a layer of heated or soft wax strips onto the skin and then pulling it to remove the hair. 8 this is a permanent method of hair removal whereby using heat, the hair follicles are destroyed. 9 According to Humayun Farooq, Veet’s Brand Manager name was retained because the product had by then gained significant popularity all over Europe, and was perceived as an effective hair removal cream. Today, Veet is sold in over 180 countries and is the leader in over 55 countries with 30 million users worldwide. The extraordinary performance of Veet in different geographical locations has led the company to believe that it is the best hair removing solution for both males and females across the globe, hence a

Powerbrand.

At the time of launch in 1999 in Pakistan, the local culture lent both, some advantages to the launch of such a product and some peculiar challenges. The advantage came from the local

Muslim culture placing great emphasis on personal hygiene. And the challenge came in the form of depilatory being an extremely tabooed category, hence making marketing a difficult task.

Furthermore, depilatory was a low involvement category where target customers did not differentiate between various brands. This meant that most brands in the market were functionally positioned.

Veet was launched in the Pakistani market for SEC A and B. In 2007, Veet was available in three variants, namely aloe vera, silk extract and fresh. In 2009, Veet globally replaced the old variants with wheat germ oil & orchid for sensitive skin, lotus milk & jasmine for normal skin and shea butter & lily for dry skin. The offering was available in 25gm and 50gm at Rs. 35 and Rs. 60 respectively (visit: http://www.youtube.com/watch?v=8Va9bA-ebqE to see the on air ad of Veet in 2009 in Pakistan). Although internationally, the Veet range included superior products such as hair removal gel cream pump, rasera bladeless kit, sensitive formula hair removal lotion, salon line ready to use wax strips, in-shower hair removal cream, hair removal gel cream and hot wax, locally the Veet range was available in the cream format. The product was locally produced.

Veet was launched in the lotion format in 2007 but was not well received by target market and was therefore withdrawn.

Competition in Pakistan

The major competitor of Veet in 2009 was Anne French, a hair removing lotion made by a local manufacturer. A volume leader in the depilation category, Anne French had been available in

Pakistan since the 1980s, however, it was never widely marketed. Furthermore, advertisements from the brand featured in selected women’s magazines only.

EU was the second largest competitor followed by Care, a new entrant in the market. Care had variety of formats to offer; it was available as both lotion and cream. In 2008-09, Veet had a market share of 23% whereas Anne French dominated the market with 26% market share.

It is important to note here that until late 1990s, there was no marketing from personal hygiene feminine brands like sanitary napkins and hair removal creams in Pakistan; hence, most brands heavily relied on maintaining numerics at the point of purchase and most retail operations at the time followed over the counter formats. Furthermore, advertisements, before being aired, had to undergo a strict sensor board scrutiny. Until 2005-2006, PTV10 did not allow any advertisement with an Indian model to be aired. However, with a change in the government in 1999, sensor policies were revised and relaxed to allow marketers more freedom.

Veet in 2009

10 PTV (Pakistan Television) is the state run broadcaster of Pakistan. The GSMs could not help in uplifting the brand position of Veet. There were several barriers that prevented target customers from appreciating the superior quality that Veet provided. Matters of personal hygiene were considered private and hence not discussed openly in Pakistan. Consumer buying habits were also peculiar. Customers were shy and did not ask for a particular brand; they instead only pointed to a brand visible from over the counter in a retail store. The retailer would also cover the cream in a brown paper for customers to take back home, without feeling embarrassed. This shopping behavior was also observed in the modern retail formats; although the customers had the freedom to move about in the aisles and choose their brand, they still found it embarrassing to have a depilatory in their shopping cart visible to other shoppers.

Therefore, the practice of covering it in brown paper bags prevailed. In addition, younger females at home mostly depended on their mothers to buy the product for them. Veet customers typically included females who bought and used depilatory creams from a religious viewpoint.

They not only bought the product discreetly but also kept it discreetly at home.

With the objective to build brand imagery, fashion was adopted for Veet as a platform in 2007. A fashion show themed as “Garden of Eden” was organized at the Karachi Parsi Institute. The show was a dramatic depiction of Adam and Eve where male models dressed to be Adam and females Eve. The show was perceived by the audience as over dramatic and was therefore not well received; hence, no connection between brand and fashion could be made. Newspapers also reported of insignificant impact made. In 2008, another fashion show was arranged, however at a larger scale this time. The event produced better results than the last show. It was covered in the newspapers and earned the brand mileage. Additionally, it went on air. Farooq’s first assignment for Veet was to edit this fashion show for TV airing.

While activities were undertaken by the brand team in the year 2007 and 2008 to connect with the target market, the on air advertisement for Veet in 2009 was the famous Katrina Kaif11 regional campaign. This ad was being aired in all countries of the region and was adapted in

Pakistan for the local price points. Farooq felt that the present marketing strategy was preventing the brand from achieving what it was capable of – the leadership position and a premium image in the minds of the customers. He believed there was a need to elevate the brand from a functional (hygiene based) to an aspirational positioning (beauty based) and make Veet the

“Rolls Royce of Hair Removal creams12.”

Farooq was both excited and nervous about his brand. There was distance between him and the target market. A successful marketer is one who is able to think and feel like a real consumer; here he was trying to devise a strategy for a feminine brand in a conservative society. Focus groups, one-on-one interviews were not easy to conduct since women in general were not ready to talk about hair removal methods publicly. In order to get closer to the customers without making them feel intruded, he observed almost all focus groups (conducted under the Usage &

Attitude study) through Audio/Video facililities. He wanted to understand what his consumer really believed in and aspired for. This and a lot of in-market observation were the only tools available to him to make objective decisions on Veet.

Farooq drew confidence from other consumer brands that had started using modern and bold concepts of fashion; Sunsilk for example, had recently sponsored the Pakistan Fashion week.

11 Popular Bollywood actress 12 Brand Manger’s expression to describe Veet The Pakistani urban centers had also started showing signs of liberalization. Farooq felt that the proliferation of media channels, modern shopping malls and retail formats, changing lifestyles, increase in the number of females working out of home were paving way for non-traditional marketing. He wanted to modify the behavior of target customers, help them overcome the embarrassment associated with buying and using a depilatory cream. He wanted the target customers to view Veet as something that helps them enhance their natural beauty; use Veet for more than functional reasons.

His target customers were the modern, urban, confident, independent women who actively look after themselves and care for their beauty. Traditional dress for women in Pakistan entailed a loose fitting tunic like kameez with trousers called shalwars. The dress is completed with a matching dupatta13, a scarf, and is in line with the religious and cultural requirements of Pakistan.

Veet was targeted at those who wore modest yet modern dresses such as caprice and short sleeves/sleeveless shirts (see Exhibit 5 for a comparison of a traditional versus modern Pakistani attire) and needed Veet to keep their arms and legs smooth and hair-free. Farooq’s ambition was to train the target customers to believe that beauty was not just judged from the face but also from the arms and legs of a woman.

Farooq needed to attract the innovators in the market who could have a positive influence on those around them. He also wanted to increase the usage level; change the usage of a depilatory cream from mere hygiene maintenance to beauty enhancement. Being a Pakistani himself,

Farooq understood the local sensitivities well. Local cultural norms were the biggest hurdle in

13 alternative names include chadar (in Pakistan), orni/odhni, chunri, chunni, orna, and pacheri positioning the brand along modern beauty and fashion. Veet being a skin care product needed a certain amount of skin to be shown by the models both in the advertisements and fashion shows, while the society at large was conservative and critical of such exposure of skin. Farooq decided to study the Egyptian model - a market where customers were Muslims. Egyptian Veet ads were beauty oriented and they made Farooq think of ways to communicate the same message of beauty in Pakistan.

Farooq decided to hold another fashion show but this time with a lot more grandeur. While editing the 2008 fashion show, he realized that there was room for improvement.

“So far, the event has been treated like a side activity for the brand. The 2009 show should be an

equity building show, organized with the objective of airing it later on TV”

However, lack of experience in organizing a fashion show was his biggest limitation. His stakes were high and so Farooq wanted to do everything right. He drew his inspiration from the

International Victoria Secrets fashion show and wanted to hire the best director to have Veet’s show on a similar format with music and ramp. The cost of hiring a top of the line director was

Rs. 1mn and an average director was Rs. 0.3mn. The top management was skeptical of Farooq’s plans and refused to commit any more amount than the allocated budget. He had to work within a total budget of Rs. 7mn whereas an average investment of Rs. 10 -15mn was required to organize a day long show of fashion week calibre.

While the top management had hired Farooq because of his past track record of successful brand building, they feared that his idea was putting not just the brand but the entire company at risk. There was a risk of antagonizing the local religious groups; at no cost could RB afford to have a negative public image; it was a socially responsible company and wanted to maintain that image.

At this time, one of Farooq’s Assistant Brand Manager (ABM) proposed another strategy. She suggested that a functional appeal would be more appropriate keeping in mind the local cultural values. In her opinion, attempting to change the target market’s attitude towards hair removal creams was not only difficult but also risky. Her proposition was to build on the Islamic theme of cleanliness whereby Muslims are required to get rid off unwanted hair every 15 days. Against this need, Veet could highlight three important benefits and be pitched as the best solution for the target market:

 A pain free method of hair removal.

 Keeps skin hair free for a longer period of time.

 An easy and convenient option.

These benefits could be communicated to the target market through an extensive on-ground brand activation campaign in the all-girls schools and colleges in all major cities of Pakistan. The initial idea was to undertake an educational and sampling campaign at the cost of Rs. 30 mn. in the top three cities of Pakistan, namely Karachi, Lahore and Islamabad. Based on the response from these three cities, penetration into other cities could be planned.

Specifically, the idea was to hold a one to two hour long awareness session in the auditoriums of schools and colleges in SEC A and B class localities. RB would hire brand ambassadors to discuss the importance of hair removal in Islam and link it to Veet by highlighting it as an ideal solution. The session would end with free sampling of 25gm SKU.

What is the best way?

Farooq was now at a crossroad. He was an innovator and believed in taking risk. But was he thinking right or was he being over-ambitious about the assignment? Should he go with his

ABM’s proposition or pursue his own idea? Exhibit 1: RB history

1823 - Benckiser is founded by Johann A. Benckiser.

1840 - Issac Reckitt rents and diversifies into household products.

1880 - Mortein is launched in Australia.

1886 - Business begins its expansion around the world.

1932 - Harpic and Dettol are included in the company’s product portfolio.

1938 - Reckitt & Sons is merged with J&J Colman. The new company is named Reckitt & Colman Ltd.

1995 - Reckitt & Colman has decided to sell the Colman’s food business.

1999 - Reckitt & Colman and Benckiser decide to merge and become a leading company in household cleaning products. The new company is named Reckitt Benckiser.

Source: www.rb.com

Exhibit 2: Marketing Organogram

Source: RB brand manager in Pakistan

Exhibit 3: Urban Socio Economic Classification of Pakistan*

Socio Economic Classification of households is one of the most important variables used in Marketing in Pakistan. It helps in targeting markets and designing focused marketing strategies. Urban households are classified into SEC based on the education and occupation of the chief wage earner. Chief wage earner is the person who contributes the most to the household budget.

*Classification grid designed by A.C.Nielsen after a 1998 survey on the request of Pakistan Advertisers Society (PAS). Since then, the grid has not been update but is used as a basis to make projections.

Exhibit 4*:

The table below depicts the level of importance attached to each criterion by customers in evaluating various hair removing solutions.

Characteristic Weightage Functionality 45%

Pain 25% Affordability 20% Flexibility 10%

*Source: Veet brand manager

Exhibit 5

Traditional Pakistani dress

Modern Pakistani dress