SURF EXCEL: THE BRAND

By:
Amit Das
HUL: INDIA’S LARGEST FMCG COMPANY
 1931 – Entered as Hindustan
Vanaspathi Manufacturing Company
Limited
 • 1933 – Incorporated Lever Brothers
India Limited
 1935 – Incorporated United Traders
Limited
 • 1956 – Merged to form ‘Hindustan
Lever Limited’ (HLL)
 • 1992 – Recognised as Star Trading
House in Exports
 • 1994 – TOMCO merged with HUL
 • 1996 – Acquired Ponds India Ltd
&Lakme India Ltd
 • 2007 – Renamed as HUL
 HUL A 52% owned subsidiary of Anglo Dutch
giant Unilever.
 India – 1888 largest FMCG company with 100
factories
 Touching 2 out of 3 consumer .

 20 distinct categories – Home and personal care

products, food and beverages.
 Indian Detergent market : 5100 crore ($1.2 bn).

 Detergent bar market makes up for 43% of this

market
 HLL commands 38% of the fabric wash market
SURF EXCEL: THE BRAND
 Launched in 1959 as ‘Surf’, it was the first detergent powder
in India
 Surf Excel underwent various changes in its Brand
Communication
 In 1990, following the launch of Ariel,Surf became, Surf Ultra
 In 1996,Surf redefined itself by launching Surf Excel
 In 2003, the base variant Surf was re-launched as, Surf Excel
Blue‟
 In 2006, it added Rin Supreme Bar as,Surf Excel Bar into its
portfolio
SURF EXCEL: SEGMENTATION
SWOT ANALYSIS
Strength
1. Premium Detergent Brand for
HUL introduced in 1959
2. Surf Excel quick wash is
powered with a path-breaking
technology- it reduces water
consumption and time taken for
rinsing by 50%
3. Strong distribution network by
HUL, which is beneficial for the
product
4. Good brand visibility and
advertising with new ad
campaigns to keep brand top-of-
the-mind
Opportunity
1. Rapid market growth with
further rural penetration
2. Adapting to changing customer
needs & improving life styles
Weakness
1. Slightly Higher price
prevents it from reaching to
the mass of customers
2. Product awareness not
high among rural markets
3. Legal issues due to brand
wars
Threats
1. Low profit margins in
detergent sector
2.Threat from existing and
new players in the market
MARKET SHARE
PRODUCT
Product range
 Surf excel detergent bar

 Surf excel blue

 Surf excel quick wash

 Surf excel automatic

 Surf excel top-load & front load

Target market
 Sachet packet (Rs 2/-) – mass market ,
convenient & affordable
 Detergent bar , Surf excel blue , surf excel
automatic– middle class & upper middle class
PRICE
 The pricing strategy for Surf
excel have always been in
accordance with its
competitors .
PROMOTION
 1 st national detergent brand on TV Different
formats of communication.
 Commercials through NET & SMS.

 Children festival

 Sales promotion through aggressive pricing

PLACE
HUL distribution network –
key strength (Which helps
reach out its product across the
length and width of the vast
country)
 Direct coverage in over 1
million retail outlets
 7000 Stockiest

 2000+ Suppliers & Associates

MEDIA STRATEGY (TRADITIONAL)
 Various categories of communication systems like broadcasting, print
media, etc. are used for Surf Excel
 Billboards and posters
 In the Print Media, such as newspapers, magazines, direct mails, out
doors, etc. are used
 In the broadcasting media, television and radio (FM channels) are the
major tools
 The frequency of ads is higher during the time slots 1.00 pm to 3.00 pm
and 9.00pm to 11.00 pm for stronger impact on target population
 Word of mouth publicity Surf Excel : Daag Acche Hain
MEDIA STRATEGY (NON- TRADITIONAL)
 Organizes various competitions , e.g.
World’s largest Hand-Printing
Competition (over 70,000 children
participated, Surf excel smart choice
contest – lucky winner to get Whirlpool
washing machine
 Online promotion strategies –website
www.surfexcel.in
 Various initiatives
“Surf Excel and You” suggesting mothers
to encourage active learning in their
children, mother‟s pride – in which
mothers can share their pride stories -
special moments from the moment they
have children, knowledge beyond books,
expert advice
Children‟s Club
 Social media marketing through facebook
– Santa ClausCarnival etc. Surf Excel :
Daag Acche Hain
 SURF EXCEL Title sponsors
of TV shows (Surf Excel Little
Masters)
 Every year Surf Excel
organizes children’s festivals
– Kala Ghoda 2010, 2009;
Anand Mela 2007, D-Mart
2008
 Surf Excel has it’s own
YouTube channel wherein
children share their “Dirt is
Good” experiences
 Surf Excel tied up with the
movie – Chillar Party Surf
Excel : Daag Acche Hain
MARKETING STRATEGY/OBJECTIVES
 Surf has been in the market for a long time and
has effectively managed its product life cycle with
the help of product innovations and great
marketing strategies.
 Unilever markets detergent products
internationally and uses individual sub-brands to
segment those markets.
 Formulation of the detergent and the market
targeted vary by region.
 Launching variants in the washing machine
category.
 Effective Ad campaing .
 Approaching new market.
PERFORMANCE ANALYSIS
Sales Growth
During the last 5 years, sales growth at Hindustan
Unilever has not kept pace with the sales growth
amongst its peers. Notwithstanding the fact that the
size of HUL is much larger compared to many of its
peers, the company may be losing its market share
due to its slow pace of growth compared to peers.
EBITDA MARGIN

 Amongst its peer group, HUL has the lowest

EBIDTA margin. There is no substantial growth
seen in the margins over the last 3 years.
DIVIDEND PAYMENTS
 The dividend pay-out ratio for
HUL is higher than its peers
with the exception of Colgate
Palmolive. The average
dividend pay-out ratio in the
peer group of FMCG companies
was approximately 58.25% in
FY11/12 compared to the
66.75% paid out by HUL. The
dividend pay-out ratio for HUL
has been consistently higher
than the peer group average for
the past 5 years.
BIBLIOGRAPHY
 http://www.surfexcel.in/
 http://www.hul.co.in/brands-in-action/detail/Surf-
Excel/294365/
 http://www.mbaskool.com/brandguide/fmcg/864-
surf-excel.html
 http://www.moneycontrol.com/news_html_files/ne
ws_attachment/2013/HUL_Royalty%20Payment
%2012%20Feb%202013.pdf