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Surf excel has been following the unilevers message i.e. add and vitality to life similar
with surf excel. In the beginning surf excel was facing competition from Ariel the product
of P&G but very soon with the tag line DIRT IS GOOD surf excel was successful in
regaining its market leadership. It soon emerged as the dominant detergent of the
country.
The product is deciding by matching the market insight with local insights. The
marketing report of the brand should match the regions attitude so that the product can
fulfill and satisfy the customer/s need and expectation.
The packaging is designed in such a manner that it should be able to create a recall value
among the perspective customers. It should stand out among its competitor because
majority of the purchase are impulsive buyings.
Price is decided as per economic situation and spending pattern of the target market.
Distribution pricing strategy is determined in such a way so as to all form of trade (GT,
LMT, IMT) along with customers purchasing power.
Promotion was the most important ingredient in the revival of surf excel. The event Paint
Masti created a name of the brand. Relaunch of the surf with the tag line the Dirt is Good
helps in differentiating the product, because all other brands are still forcing that dirt is
bad.
The selection of place to communicate the brand message is a crucial process. The team
of Surf Excel chooses the most effective media, be it print or economic and effective
time.
The target market of surf excel is mainly housewives as deciders whereas children as
influencers. Surf Excel is available in four different packages.
The product last year showed a rapid growth and increased profit. This reflects the brand
equity of surf excel and market acceptance. Surf excel regeneration in the market is a
mood of exemplary marketing strategies.
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COMPANY INTRODUCTION:
Unilever was created in 1930 when the British soap-maker Lever Brothers merged with
the Dutch margarine producer, Margarine Unie.Unilever Company came into the Pakistan
market in 1949 with the name of Lever Brothers Pakistan. Changed the name Lever
Brothers Pakistan to Unilever in year 2003.The leading consumer products company in
Pakistan, a multinational with deep roots in the country. Change is inevitable and a leader
must be willing to embrace change rather than resist it. When new technology opens the
possibility of a new market rather that may threaten the existing one, a successful firm
should consider entering the new market so that it will have the first-mover advantage in
it. For example Surf loss it leadership as Ariel came with a better technology powder safe
for hands and tough on dirt. Surf did recently a marvellous campaign of Dirt is Good.
The company has been able to maintain its leadership position because it used its
resources to make a move into competitive arena.
Mission Statement
The leading consumer products company in Pakistan, a multinational with deep
roots in the country.
Meet the everyday needs of people everywhere to anticipate the aspirations of
consumers and customers and to respond creatively and competitively with
branded products and services which raise the quality of life.
Drive to serve consumers in a unique and effective way.
Attract and develop highly talented people, who are exited, empowered and
committed to deliver double-digit growth.
Serve everybody needs of all the consumers everywhere for foods. Hygiene and
beauty through branded products and service that deliver the best quality and
value.
Strive to maintain an ever simple and enterprising business.
Use superior consumer understanding to produce breakthrough innovation in
brands and channels.
Committed to making continuous improvements in the management of our
environmental impact and to the longer-term goal of developing a sustainable
business.
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BRAND INTRODUCTION:
Industry Profile
For many centuries, soap was primarily used for laundering. However, laundry detergents
have essentially replaced soap because they perform over a broad range of water hardness
levels.
Laundry Detergent and washing powders have become an important part of every
consumers life. The market offers a variety of washing powders, each brand claiming to
wash the cleanest at unbeatable prices to consumers. Laundry detergents, however, exert
a hidden but taxing cost on the environment and consumer health due to their
environment-damaging properties. Phosphates are one of the main ingredients in most
present-day laundry detergents and are also the primary culprits in polluting water bodies
- a situation in water bodies like lakes, rivers and ponds which results in ultimate death of
the water system. Undoubtedly, phosphates (STTP - sodium tripolyphosphate - the most
commonly used phosphate in laundry detergents) beef up a detergents cleaning
properties by softening hard water and preventing carbonates from settling on the clothes
washed, but once the washing is done, phosphates wreak havoc on the environment when
they are washed down the drain.
Laundry detergent is also widely used in the Pakistan market, the average per annum
consumption of laundry detergent is approximately 33,000 tons - One tone detergent
costs around 138,000 Rs.
Since the last two years, the market trend (Pakistan) in the laundry detergents has taken a
good pace, and many consumers are switching from the bar soaps to laundry detergents.
In terms of percentage, the increase ratio is about to 20-25% per annum.
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Surf Excel
Surf Excel is the global name for a portfolio of value 'Omo'
brands around the world. These brands are challenging
conventions in the laundry category. For example, Surf Excel
challenges the assumption of 'you get what you pay for' by
providing products that provide great results at a low price
Launched sometime in 1960, Surf Excel was the first in the Pakistan detergent powder
market. Over the years, Surf Excel has anticipated the changing washing needs of the
Pakistan homemaker and constantly upgraded itself.
Surf Excel is Pakistan's largest selling compact detergent powder, it promises to tackle
the toughest stains without damaging the colour of the fabric. This is because only Surf
Excel has smart sensors that can differentiate stains from colours. Now consumers don't
have to worry about tackling the really tough stains, especially on coloured clothes
anymore. Surf Excel Hai Na!
Surf excel with active oxygen is formulated to remove a range of stains such as
chocolate, ink, egg yolk, blood, turmeric and coffee. It gives clothes a complete cleaning
while caring for the fabric. It is recommended by Singer (Manufacturer of Electronic
appliances) for use in top loading washing machines.
The green speckles penetrate deep into the fabric to help remove tough stains. The blue
speckles give shine to whites and brightness to coloured clothes.
Its refreshing fragrance keeps the fabric smelling fresh long after they have been washed.
It is being recommended by leading washing machine and apparel manufacturers around
the world.
Those preferring the modern and convenient way to wash can rely on Surf Excel Liquid.
The liquid form penetrates deep, allowing great wash results. For really tough stains,
consumer can apply the liquid directly on the body of stain and tough stains being tackled
with ease.
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Branding:
Consumer loyalty is fast becoming a disappearing phenomenon with an increasing
demand for brand variety
In an increasingly borderless world, consumers are getting exposed to both information
and choices overload, making them increasingly confused about brands, Surf Excel
branding strategy based on corporate branding strategy, where the product of a company
has its own name without any company name added, the product belief in complete
cleaning and care.
The Brand image of Surf Excel with reference to the other products in term of
percentage is:
Surf was losing its identity on its own, People ask for Ariel Surf, Brite Surf or Wheel
Surf. Or even Surf Excel.
Surf has become a very generic name over the years. There was thus a fear that customers
would switch over to some other competing brand, unknowingly, even without paying
attention to the brand of the product. The movement is being seen as an attempt to give a
more specific and clear identity to the established brand. After more than 40 years, the
brand will dissolve into a new identity Surf Excel. They migrated from Surf to Surf
Excel, as Surf has become generic and many people today refer to any detergent as Surf.
Besides, they feel that this brand has the chance of attracting new users under the Surf
Excel name
From time to time they changed their brand names as under
Surf Ultra
Surf Micro
Surf Power
and now Surf Excel
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Segment
Higher
Middle
Lower
Packing
2Kg
1 Kg
700 gms
400 gms
100 gms
35 gms
15 gms
Price (Rs.)
400
190
155
85
55
25
10
Those SKU(s) allow Surf Excel to deeply penetrate in the market by covering all
possible washing powder consumers, based on income group. It also enjoys the market
share of around 38% among the total branded laundry detergents in Pakistan.
35 and 15 gms SKU(s) are also called hanging SKU(s), it targets in lower class of society
areas, like Orangi Town, Sohrab Goth, Shair Shah. Company gives special focus on the
availability and visibility of these particular two SKU(s) (35 & 15 gms) in all shops of
those low-line areas.
The purpose of focussing on these SKU(s) is to cater the demand of the consumers as per
their low purchasing power and capacity to buy the well known brand and to generate
more and more trials among the consumers to make them brand loyal. That is why the
company calls these small SKU(s) a trial generation SKU(s).
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PRODUCT
Surf excel believes that stains ae good. This is because when children go out and play and
get dirty, they dont just collect stains. They experience life, make friends, share with
each other and learn from each other. last year however, surf has taken the concept of Dirt
is Good because Dirt = play & play is good to a deeper level and addresses the issues
surrounding childrens play; the idea of learning through play, the obstacles towards play,
the impact of not enough play for our children. As a socially responsible company and
brand, it believes that they can create a platform on which they can take this message
forward to showcase how playing helps children mentally and physically. the
Regional brand team meets and decides where to launch which product. Market insights
should match with local insights. Surf Excel mainly unilever has a new phenomena. It
consults all 3 trade models while designing packaging for surf excel.
PRICE
Surf Excel is available in different sizes and quantities in the market for different prices.
Its competitors in upper class segments are Ariel which is product of P&G and brite total.
The company has offered 1kg of surf excel in the market for 190 Rs. Besides that it is
also available in market in sachet and half kg. It is priced for every consumer according
to his or her financial status.
In 2007-08 unilever adopted one of the price adjustment strategies which have discount
and allowance pricing as they offered. Through this strategy promotional pricing strategy
also came in progress as their product was promoted through it sales increasing rapidly.
But as its competitors also reacted for this change through customizing their offerings and
price cuts surf excel was finally focused towards price increases.
Several other offers have also been introduced by ariel and brite in the market using
promotional, discounts and psychological pricing strategies and for that surf excel have
also responded efficiently through its strategies.
DISTRIBUTION PRICING STRATEGY
Unilever---->Distributor---->GT/LMT
Unilever-->IMT through annual pricing plan
For case 1
List price
Add Distributor price (5%)
Rs 175
Rs 182.5
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Add
Add
trade price
retail price
(5%) Rs 189
(10%) Rs 210
For case 2
List price
Rs 190
Trade price (10.25%) Rs 210
Surf excels also launches temporary price reduction (TPR) such as 0.25/unit for a week
or for a month. They also give bonus such as 25 cartons----.5/case
PROMOTION
Sales force in Surf Excel is divided into three types: General Trade (general stores,
Kiryana stores, Medical and General stores), Local modern trade ( super stores such as
Aghaz, naheed, D-mart) and international modern trade ( Large house such as makro and
metro).
Merchandising drives: It depends on channel the team is choosing to communicate its
product (surf excel). They may ask the retailer to have at least 50 pieces of surf in their
shelves along with POS materials ( poster banner shelves)
Outdoor Media Agency is appointed for the advertising campaigns via billboard and
signboards. These OMA classify different regions under Strata, ranging from 1 to 6.
Strata 1 includes cities like Karachi and Lahore, Strata2 includes cities with
comparatively less density and so on. They may select sites as per the following example:
Strata 1 would have 60% advertising sites
Strata 2 would have 40% advertising sites
Strata 3 would have 20% advertising sites
Strata 4 nil
They may book the site either for 30, 60, or 90 days depending upon the nature of the
product, budget of the campaign and rent of site selected. The most effective advertising
site in Pakistan is Sharah-e-Faisal. The effective billboard which is displayed on the left
of the driver and is at a height of 40 to 50 feet with an exception of flyovers, bridges and
high altitude road.
The plus point of the marketing strategy of surf excel is that when all other brands were
campaigning against stains and how dirt is bad for clothes, surf excel came up with
tagline Dirt is Good.
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PLACE
Mind share is the Media Buying House for unilever in Pakistan. The airtime is purchased
depending on the relative price and numbers of spots the brand is getting. These spots
must be enough so that recall value is created within the customer, mind. Frequency of
target market is also analyzed. In electronic media, especially Television PTV and ATV
has the biggest country viewership. Whereas in Private sector Hum tv and ARY are the
biggest tv production and broadcasting house. The selection of print and electronic media
depends on the nature of product and marketing strategies. The ration is divided for print
and electronic Media in the beginning of the compaign. As on Hum tv top brands
advertised in the given ration
No Brand
1
2
3
4
5
6
7
8
9
10
11
Sunsilk shampoo
Pepsi
Walls
Pel product
Clear shampoo
Zong
Surf excel
Brooke Bond supreme
Peak freans biscuit
Knorr
Hilal pan pasand 2.0
Time share
%
5.0
3.7
3.4
3.0
2.9
2.8
2.7
2.2
2.1
2.0
Moreover retailing consumer product is unilevers bread and butter. The company has the
biggest retail in the country with the company servicing 500,00 outlets of which 50% are
covered direct by the company distributors and the balance through wholesalers. For
company the main business is done by General trade as compared to IMT or LMT,
therefore different incentives and preferences are given to general retailers wholesalers
and distributors.
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BCG MATRIX:
A business unit that has large market share in a fast growing industry, generates cash, but
the market share is growing rapidly requires heavy investments to maintain its lead. If
successful, a star will become a cash cow when the industry matures.
The soap industry is gradually decreasing and losing its market share, and consumers are
switching from soaps / laundry bars to laundry detergents, because of ease of use and
attractive fragrance.
Under the BCG Matrix, Surf Excel lies in the Star category, due to the fact that its market
share is increasing and the market size is also increasing, and it has fewer competitors,
and it needs heavy advertisement to maintain its sales.
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1 KG
210
400G
115
100G
55
15G
10
Its target upper-class of consumer and market and its segmentation if or high and
potential markets. It is a product of unilever. It is available in different sizes and
quantities in the market for different prices. Its competitor in upper class segment are
Ariel which is product of P&G and brite total which is product of colgate Palmolive.
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Its market oriented statement is DAAG NHN TO SEEKHA NHN. The company has
offered IKg of SURF EXCEL in the market for the price of 1900. Besides it is also
available in the market in sachet pricing from 10 rupees and half kg for about 115 Rs. It is
quality oriented product providing value for the customer.
In 2009 unilever adopted one of the price adjustment strategies which was discount and
allowing pricing as they offered. Through this strategy promotional pricing strategy also
came in progress as their product was promoted through it and the sales increased
rapidly. But as its competitor also reacted for this change through customizing their
offering and prices cut SURF EXCEL finally focused towards price increases. Beside the
surf excel pricing strategy have also been to provide value and recently company
improvised heir strategy as they focused towards more promotional through compaign.
Beside that the company also implemented product line pricing strategy as their offerings
are in different quantities along with different prices in the market.
Several other offers have also been introduced in the market by ariel and brite total using
promotional discount and psychological pricing strategies and for that surf excel has also
responded efficiently through strategies.
POSITIONING;
Surf Excel positions a brand by saying Complete Cleaning and care. This positioning
does not only claim that the laundry detergent Surf Excel is a stain remover but it also
claims that it is gentle on the fabric texture and colour, meaning it is hard for stains by
removing them instantly, and soft for the fabric material by increasing its life.
Surf Excel is one of the first detergents in the laundry industry, which not only positions
itself as a stain remover but also builds an image for the care of fabrics by increasing the
life of the fabric.
Most of the other laundry detergents just focused only on stain removing and does not
target properly for the care of fabrics but Surf Excel contains Smart Stain Sensor that
direct active cleaning power to where it is needed most, and it does not only remove
stains, but it also gives fragrance and increases the life of fabrics.
So Surf Excel positions its brand as more consumer focused and gives them a thorough
understanding of the product. From the positioning point of view, Surf Excel gives a
feeling of family among the consumers as well as.
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Companies like Gul Ahmed and SANYO also recommends Surf Excel which makes its
brand name and image makes stronger.
U N I V E R S I T Y
Surf Excel has also changed the written material on the back side of their package. They
have introduced child stories on the back of the packing material to attract families.
MAJOR COMPETITOR:
Market share plays a prominent role in business research and standing in the market.
Although Surf Excel is the leading brand, it also faces competition.
Major competitors for Surf Excel are:
Ariel
Brite
Bonus and Express
Ariel
Procter and Gamble market nearly 300 brands - including Pampers,
Tide, Ariel, Always, Whisper, Pantene, Bounty. In July 1997, they
launched Ariel in Pakistan based on a sophisticated and advanced
formula. Its breakthrough formula was warmly welcomed by the
Pakistani consumers and in a short time span it steals a significant
amount of market share from Surf Excel.
New Ariel delivers against one of the key Pakistani consumer needs: a detergent that can
give spotless cleaning to both coloured and white clothes. This is because new Ariel
contains a unique double action system, which gets fully dissolved unlike bar soap.
Brite
Colgate Palmolive - backed by Lackson Group of Industries, entered
into the laundry detergent market by launching a product with a name
Brite in 1980. Although it was unable to capture the significant market
share of Surf Excel, but is one of its main competitors. Brite also
changes its packing from poly bags to suit the needs of consumers.
Bonus and Express
Bonus and Express, both products of Colgate Palmolive - backed by
Lackson Group of Industries, are a few of the oldest laundry detergents
in Pakistan and enjoy a reasonable amount of share in laundry
detergents market. Because of the low price factor, they attract the
lower segment of the
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market. But due to inferior quality and less fragrance, they are unable to
attract huge market.
Market Share
In term of market share Unilever Surf Excel enjoys the maximum; graphically it can be
represented as:
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LOYALTY PYRAMID:
The company has always taken care of its committed customers by offering them the best
stain removing quality at a reasonable price. This product also provides customers with
different consumer promotions, like paint masti and other events.
Due to all these activities and other consumer promotion factors, consumers are
emotionally attached with this brand.
In the loyalty pyramid, most of the customers come under the category of committed
buyer, and they argue if someone asks them to change the brand.
Committed
Brand Friend
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Growth
Decline Due to
Ariel (1997-2000)
2002-2009
Introductory
2001
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C & CD Director
(Ali-Us-Sajjad)
General Sales
Manager
(Liaquat Qadri)
Regional
Manager
(Karachi)
Regional
Manager
5 ASM
Regional
Manager
Regional
Manager
Regional
Manager
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Unilever
Distribution
Apex
Marketing
Services
Gizri
Corporation
Irfan
Traders
Al-Hamza
Saya
Creative
Mehtab
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MARKET DISTRIBUTION:
Unilever distributes Surf Excel in the market through the following channels:
Market
Distribution
Out of Home
General Trade
Modern Trade
General Trade
All classes of retail outlets, such as A, B, C, D, E and the whole-sellers are targeted by
general trade, Normal trade discounts, offers and consumer promotions are given by the
company and time to time merchandising competition are run.
Out of Home
The markets such as Hotels, restaurants, and Army CSDs stores are covered by this
distribution channel.
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Modern Trade
In order to retain and maintain the customer base especially in the upper class, upper
lower class, and upper middle class of the society. Modern trade focuses on self service
stores. Special and trade offers and consumer promotions are run by the company along
with the creative merchandising competition, these all activities are meant to capture the
market, and maintain its customers and to increase brand loyalty.
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New Product
Present
Markets
Market
Penetration
New
Markets
Market
Development
Product
Developmen
t
Diversificatio
n
If we analyze the Unilevers product, Surf Excel brought the idea of Green n Red
speckles that penetrate deep into the fabric to help remove tough stains and give shine
and brightness to clothes.
As it is a new innovation in detergent industry, so it is a New Product and comes under
both the categories, the product development as it serves to its present market with an
innovative product, also it falls in the category of diversification as this innovation
attracts new customers too. Thus it brought new market for Unilever.
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RECOMMENDATION:
The possibilities are endless. For example shampoo penetration is one of the lowest in
Asia. Similarly fifty percent of the population still uses laundry soap to wash their clothes
which comprises mainly the low income group. Unilever 40% of the market for detergent
powder (Surf Excel). A switch from soap to detergent powder will be hugely beneficial to
surf excel and ultimately for unilever.
Profitable growth will be sustained through focused brand building innovation and
superior management of supply chain to achieve cost competitiveness. This will enable
the business to expand its share of consumer spending despite the increasing level of
competition.
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CONCLUSION:
Unilever has an efficient distribution structure for Surf Excel. In order to conclude all the
things which we discussed or enumerated hereinabove, its looks more appropriate to do
the product analysis on the basis of Strength, Weakness, Opportunities and threats
[SWOT Analysis].
Strengths
Since Surf Excel or just Surf has been in the market of Pakistan since 1960,
therefore it has an ultimate strong brand image.
Industry analysts said Surf Excel will now become the mother brand and a market
leader.
Surf excel is a better stain remover, with active oxygen formulation it removes a
range of stains such as chocolate, ink, egg yolk, blood, turmeric and coffee.
Strong back-up of highly professional and trained Brand and Marketing Managers
and a strong company name Unilever.
Weaknesses
Surf had become a very generic name over the years. There was thus a fear that
customers would switch over to some other competing brand, unknowingly, even
without paying attention to the brand of the product.
Unable to market rural area properly, which consist of around 70% of total.
Opportunities
Still lots of consumers use open laundry detergent without any brand recognition,
so they can expand and enter the growing market.
The market for laundry detergents is growing day by day, and many consumers
are switching from bar soaps to laundry detergents.
Increase number of working woman with changing life style, who needs comfort
and easy to use laundry detergents.
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Threats
Ariel is its closest competitor. Due to policies of Ariel, Surf Excel also needs to
review its prices again and again.
Low literacy rate in Pakistan, and agitation against foreign companies may
become a threat and consumers may stop using the foreign products.
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Bibliography
url:
www.thenews.com.pk/print1.asp?id=100155
www.pakistaneconomist.com/issue2001/issue41/f&m5.htm
www.travel-culture.com/pakistan/media/hum_tv_advertisers.html
www.dirtisgood.com.pk
www.unileverpakistan.com.pk/outbrands/homecare/surfexcel.asp
www.unileverpakistan.com.pkourcompany/careers/insideunilever/howwework
www.paksearcg.com/annual/annual00/lever00.htm
www.scrbid.com/doc/3701110/pricing-stratgey-and-programs?shutdown-doc
www.unilever.com/images/ir_q108_annoucements_tcm1312483.pdf+surfexcel+branding+strategy.doc&hl=en=clnkcd=5
Book;
Principle of marketing (Philip kotler 12e)
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