Case Overview

This case study basically showed us the misplacement of cultural imperatives and values by
adopting unethical advertisement campaign by two Indian fairness cream companies - Hindustan
Lever Ltd. and CavinKare Ltd. Hindustan Lever Ltd launched the fairness cream brand-Fair &
Lovely and run advertisement that convey the message of lightening the skin opened up a new
chapter on applying unethical promotional strategy to increase the volume of sale and maintain
market leadership position in India skin care industry. Hindustan Lever Ltd. (HLL) holds 90%
market share of the skin care industry but when CavinKare Ltd. (CKL) lunched its Fairever
product within two years CavinKare Ltd. was able to gain 15% of the market.
Hindustan Lever Ltd. Didnt understand the cultural preference and imperatives of
Indian people and lunched an unethical promotional campaign that portrayed light skin
superiority and gender inequality. The advertisement campaign created a strategic weakness for
HLL which CavinKare Ltd. capitalized on to lunch a counter attack by developing an
advertisement that is culturally more appealing to a wider segment of the Indian society. For this
unethical and racist campaign the All Indian Women Democratic Association (AIWDA) lodged
complaint at that time with HLL about their

Despite this HLL offensive ads. From this case

study we also came to know how HLL counter this situation by taking different corporate social
responsibility (CSR) and revising their promotional message that was enhance your selfconfidence. HLL also targeted the rural populace and developed plans to reach the rural people.
For this reason they launched sachets for the rural people whose income level is low. They also
expand their market in male fairness category by introducing male fairness creams.

Question-1. Is it ethical to sell products that are mildly effective?

Answer: To keep market leadership in their hand, Hindustan Lever Ltd lunched series of
advertisement that portray women with fairer skin as more attractive, happier , intelligent and
higher social status. In fact skin color has been a powerful theme in India and entire Asia with
light skin representing positive values for class and beauty. So for HLL to cash in to this
demining cultural practice and churn out those racially polarized advertisement is unethical and
socially irresponsible. So we think selling product that are mildly effective is unethical business
practice. However Indian dermatologists pointed out that fairness products do not actually work
because the only reach the upper layer of the skin and do not affect the production of Melanin.
The bottom line is that HLL promotional strategy for Fair & Lovely is misleading because it
does not reflect the feedback from customers. More importantly, HLL exploitation of cultural
norms by embarking on a promotional strategy that mislead the public that Fair & Lovely will
make them accepted within a culture that is divided by social class is unethical and socially
irresponsible.

Question-2. Is it ethical to exploit cultural norms and value to promote a

product?
Answer: We want to say that if cultural norms and values are exploited to promote a
product in a socially responsible and positive manner is ethical but in the case of Hindustan
Lever Ltd we want say is not ethical. So HLLs huge series of campaign that centered on the fair
girl gets the mens attention theme is unethical. On the other CavenKares Fairever counter
promotional strategy was more positive and socially responsible. Technically speaking that is an
ethical exploitation of cultural norms and values. HLL is not ethical in its approach but we
believe CavinKare ltd appeared to be ethical and socially responsible in its own approach.

Question-3. Is the advertisement of Fair & Lovely demeaning to women, or is

promoting fairness cream in a way not too dissimilar from how most cosmetics
are promoted?
Answer: In the sense that Fair & Lovely advertisement conveyed the message that
when a girl use it and become fairer, confident, attractive and gets job otherwise cannot, so we
can say that, obviously the advertisement of Fair & Lovely demeaned women. When any
company runs its business to any country they have to understand the cultural values of that
particular countrys people. But Hindustan Lever Ltd didnt understand the cultural imperatives
of Indian people. Hindustan Lever understands the cultural effectiveness only when they have
received complaints from AIDWA. Then they adjust their promotional strategy. However, the
advertisements portrayed sons preference, racism and insult to the working women. The
advertisement of Fair & Lovely showed that those women who are not fair are not capable of
getting god jobs; they cannot contribute to their family income etc. So we can say that these tend
to demean average Indian women who are dark skinned. That is demeaning and unethical
because the product is incapable of changing a persons racial background or significantly
enhances physical appearance. It must be pointed out here that HLL advertisements were not
only unethical but illegal because it violates the provisions of the Indian Cable and Network Acts
of 1995 which prohibits adverts that derides any race, color, caste, creed and nationality and
emphasize women as passive, submissive qualities and encourage them to play subordinate
secondary roles in family and society.

Question-4. Will HLLs Fair &Lovely Foundation be enough to counter

charges made by AIDWA?
Answer: Hindustan Lever Ltd. Established the Fair& Lovely foundation for
countering the charge made by AIDWA. It was a right step in a right direction. We think only that
actions is not enough to correct the damaged corporate image and the negative impact to the
women segment of the Indian society. Although HLL have done much corporate social
responsibility in this regard such as -sponsoring career fairs in over 20 cities; offering counseling
in over 110 career areas and supporting 100 rural scholarships for women on vocational
programs helped to reposition Hindustan Lever Ltd. When HLL established the foundation and

withdraw the unethical adverts, it leads Fair & Lovelys annual sales growth between 15% to
20% while expanding the market share of skincare product market by 42.7%. We believe to
counter the charges of unethical advertisement leveled by AIDWA, Hindustan Lever Ltd needs to
sustain the foundation to continue to discharge the corporate social responsibilities that informed
its establishment. Moreover, HLL should innovate different promotional strategy and should
perform more corporate social responsibility that will be seen positively by the Indian people and
not affect the cultural values and imperatives of India.

Question-5. In light of AIDWA charges, how would you suggest Fair & Lovely
promotes its products? Would your response be different if Forever continues
to use fairness as a theme of its promotion?
Answer: Any company that wants to operate globally, the first and foremost thing is to
adapt their business according to needs and wants of local people without affecting their culture.
But when HLL made two advertisements, they are objected to three things by AIDWA

Fair & Lovelys advertisement portrays racism.

Their advertisement promotes son preference.
Their advertisement insults the working women.

To counter these management of HLL undertake an advertisement campaign that will adapt to
the cultural norms of the Indian society that will be more acceptable to all segments of the
society. The new promotional strategy should not denigrate women but should show positive
virtues of womanhood. We believe this strategy will not only be ethical but will drive up Fair &
Lovely sales. So we can suggest that they should replace the theme fairness with something
that reflects good living, for example confidence.

Question-6. Propose a promotion/marketing program that will counter all the

argument and charges against Fair & Lovely and be an effective program?
Answer: To make a successful marketing campaign, company should ensure that their
campaign will not affect the cultural norms and values. So we think the best idea to counter the

charges by AIDWA against Fair & Lovely is to ensure cultural superiority of India. So when their
promotional theme fairness was charged by the Indian culture they can replace it by
Confidence which would be more cultural appealing and ethical. . We will like HLL to
formulate promotional strategies that will project Fair & Lovely as a product that can give a
woman confidence to aspire to greatness and good living, promoting possibly smooth skin
instead of skin color.

Question-7. Now that a male market for fairness cream exist, is the strength of
AIDWAs argument Weakened?
Answer: We think the existence of male market for fairness is not enough to diminish
the strength of AIDWAs argument because the primary aim of AIDWA is to ensure that HLL
apply ethical principles and generally growing cultural trends to promote its products
responsibly. Like Fair & Lovely, HLL should remove fairness as the theme to promote their male
product.

Question-8. Comment on using Shakti Ammas to introduce fairness cream to

masses in the light of AIDWAs charges?
Answer: The cast system is so acute in India. The lighter color represents a higher status
and positive value while dark as lower status. This is because Brahmins, the priestly caste at the
top of the hierarchy stay indoors poring over books while the under caste at bottom of the social
ladder are the dark people because the primarily work under the sun. The implication is that skin
color is closely identified with caste and is laden with symbolism. This became cultural norm
over time. Even this Shakti Ammas in itself is not ethical because it insult some of the Indian
gods like Krishna and other dark Hindu gods.
The Indian culture is shifting rapidly. In the past the preference of lighter skin has been very
important to Indian womens culture but shift in cultural trend has changed that perception. HLL
should conduct research on current cultural trend and modern role of women instead of
exploiting out-date and controversial cultural norms that are misfit to the present cultural

environment. We believe HLL should have not used Shakti Ammas in the first place but would
have conducted research that would have revealed the present cultural trend which is in line with
AIDWA views.

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