16254826 Surf Excel Short Report

NAME: UZAIR HAMEED

(FA07-BB-0101)

COURSE TITLE: MARKETING MANAGEMENT (SEC. C)

SHORT REPOT ON: ON:

SUBMITTED TO: TO: PROF. MUMTAZ AHMED KHAN

SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

TABLE OF CONTENTS TOPICS

PAGE NO

Acknowledgement………………………………………………….

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Executive Summary………………………………………………...

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Introduction………………………………………………… ……...

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Company Information……………………………………… ……...

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Product Information………………………………………………...

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Unilever’s Message…………………………………………………

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Brand Philosophy…………………………………………………...

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Product……………………………………………………………...

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Packaging…………………………………………………………...

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Price………………………………………………………………...

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Distribution Price Strategy………………………………….

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Promotions………………………………………………………….

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Place………………………………………………………………...

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SWOT Analysis…………………………………………………….

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Target Market……………………………………………………….

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Segmentation………………………………………………………..

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Competition………………………………………………………...

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Product Lifecycle…………………………………………………...

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Evaluation…………………………………………………………..

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Conclusion………………………………………………………….

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Recommendation…………………………………………………...

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Sources……………………………………………………………...

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SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

ACKNOWLEDGEMENT “The hardest steel goes through the hottest furnace.”

The same was the case with me. I faced many problems when I started the work on report but I am greatly thankful to Almighty Allah for enabling me to get successfully through my responsibilities. Very warm and special thanks to my respected teacher Prof. Mumtaz Ahmed Khan, whose real dedication and devotion kindled in me hope and light. Sir I thank your ability of extracting the very best out of me, for your patience and perseverance, and also for acknowledging the efforts made by me during the whole semester.

Thank you. God Bless you

From Uzair Hameed

SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

EXECUTIVE SUMMARY: Surf excel has been following the Unilever’s message i.e. add vitality to life. Similar is with surf excel. In the beginning Surf Excel was facing competition from Ariel, the product of P&G. but very soon with the tagline “Dirt is Good”, Surf Excel was successful in regaining it’s market leadership. It soon emerged back as the dominant detergent of the country. The product is decided by matching the marketing insights with the local insights. The marketing report of the brand should match the region’s 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 it is able to create a Recall value among the prospective customers. It should stand out among its competitors because majority of the purchases are impulsive buying’s. Price is decided as per the economic situation and spending pattern of the target market. Distribution pricing strategy is determined in such a way so as to suit all forms of trade (GT, LMT, IMT) along with customer’s 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 tagline “Dirt is Good” helps in differentiating the product, because all other brands are still focusing on the fact that dirt is bad. The selection of place to communicate the brand’s message is a crucial process. The team of Surf Excel chooses the most effective media, be it print or electronic, at the most economic and effective time. The target market of Surf Excel is mainly Housewives as deciders, whereas children as influencers. Surf Excel is available in 4 different packages so that every income bracket can purchase it. The product this year showed a robust growth and increased profit. This reflects the strong brand equity of Surf Excel and market acceptance. Surf Excel’s repenetration in the market is a model of exemplary marketing strategies.

SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

INTRODUCTION: 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 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 lost its leadership as Ariel came with a better technology powder safe for hands and tough on dirt. Surf did a re-entry with a marvelous campaign of “Dirt is Good”. The company has been able to maintain its leadership position because it used its resources to form make a move into the competitive arena. In this short report different marketing strategies of Surf Excel along with 4ps of marketing mix has been discussed. In this report we will be looking at the different marketing philosophies of the success behind the brand Surf Excel.

SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

COMPANY PROFILE: Unilever Pakistan Limited manufactures and markets home and personal care products, beverages, ice cream, and spreads in the United Kingdom. The company provides food products, such as soups, bouillons, sauces and dressings, noodles, complete meals, margarine and spreads, olive oil, and tea, as well as frozen foods; cleansing and hygiene products for the home care market; and skin cleansing, deodorants, and antiperspirants for personal care market. It offers its products under Close Up, Axe, Dove, Rexona, Sunsilk, Wheel, Rafhan, Surf Excel, Comfort, Lux, Pond’s, Lifebuoy, Lipton, Brooke Bond, Energile, Knorr, Pearl Dust, and Supreme brands. The company was founded in 1872 and is based in Karachi, Pakistan. Unilever Pakistan Limited operates as a subsidiary of Unilever Overseas Holdings Limited.

KEY TO SUCCESS: To build customer value, satisfaction and hardcore loyalty with the brand.

PRODUCT INFORMATION:

Surf Excel is the oldest detergent brand to be present in Pakistan since 1960. It might sound strange for a leading laundry brand like Surf Excel to say that dirt is good, but healthy activities involving dirt are essential to development. It's how kids learn express their creativity and it bolsters their immune systems.

UNILIVER’S MESSAGE: We have always believed that dirt is a valuable way to enrich our lives, both young and old. To ensure that everyone, anywhere in the country, can share in this initiative, we're investing heavily in developing a range that suits the pockets of all income groups. This has included launching affordable skus that not only offer the topclean advantages of Surf Excel, but also reduce the time, physical effort and amount of water needed to wash clothes by hand.

BRAND PHILOSOPHY: Surf Excel believes that stains are good. This is because when children go out and play and get dirty, they don't just collect stains. They experience life, make friends, share SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C) with each other and learn from each other. This helps them get stronger and get ready for the world outside.Along with dirt being an obstacle towards play = experience = learning, what are the other reasons for kids not playing enough in today’s world? In 2005 & 2006 Surf launched Paint and Games Masti where children were invited to participate in various activities designed to communicate that “Dirt is Good”. This 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 children’s 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.

PRODUCT: Regional Brand Teams at Bangkok meets and decides where to launch which product. The feasibility report is prepared and market insights are discovered. Market insights should match Local Insights. In the report even the people’s actions while washing are also observed and presented in the report. This enables to present a full fledge information about a the attributes, cultural values, and motions of a particular community, region, or a nation, may it be washing pattern, economic condition, or spending pattern.

PACKAGING: Surf Excel, mainly Unilever has a new Phenomena. It consults all 3 trade models (General trade, Local modern trade, and International modern trade) while designing packaging for Surf Excel. Packaging should be to create impulsive desires, and it should stand out among its competitors. It is where Product development team and marketers come into action in furnishing packaging standards for all its product ranges.

Product Range:

Surf excel 30g

Surf excel 2kg

Surf excel 125g

Surf excel 1kg

PRICE: Surf Excel is available in different sizes and quantities in the market for different prices. Its competitors in its upper-class segments are Ariel which is a product of P&G and Brite Total which is a product of Colgate-Palmolive (Laksons group). Its marketSUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C) oriented statement is “Daagh NHI to seekhna NHI”. The company has offered 1kg of Surf excel in the market for 120 rupees. Besides that it is also available in the market in sachets pricing from 5-10 rupees and in ½ kg for about 70 rupees. It is a quality oriented product providing value to their customers. It is priced for every consumer according to his or her financial status. In 2005 Unilever adopted one of the price-adjustment strategies which was discount & allowance pricing as they offered 1kg of Surf Excel for 105 rupees. 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 competitors also reacted for this change through customizing their offerings and price cuts Surf Excel was finally focused towards price increases. Besides that Surf Excel pricing strategy have also been to provide value and recently the company improvised their strategy as they focused toward more promotion through campaigns. Beside that the company has also implemented product line pricing strategy as their offerings are in different quantities along with different prices in the market for Surf Excel. Several offers have also been introduced by Ariel and Brite in the market using Promotional, discount, 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 Where, GT= General Trade (general stores, Kiryana stores, Medical and Genaral stores) LMT= Local Modern Trade (Super stores such as Aghaz, Naheed, D-Mart) IMT= International Modern Trade (departmental stores/Hyper Market such as Makro) FOR CASE 1: List price Add: Distributor price (5%) Add: Trade price (5%) Final Retail price (10%)

Rs. 100 Rs. 105 Rs. 110.25 Rs. 121

FOR CASE 2: List price Trade price (add 10.25%)

Rs. 100 Rs. 110.25

Surf Excel also launches Temporary price reductions (TPR) such as 0.25/unit for a week or for a month. They also gives Bonus. Such as Bonus 25 cartons---0.5/case While setting prices or changing prices the team of Surf also looks at the Equity Level SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C) Which is determined by the Price Index. It measures the relative SKUs (Stock Keeping Units). For example, Product Ariel 1 kg Surf excel 1 kg Brite 1 kg

price 230 200 190

% 115% 100% 95%

PROMOTIONS: Sales Force in Surf Excel is divided into 3 types: General Trade (general stores, Kiryana stores, Medical and Genaral stores), Local modern trade (super stores such as Aghaz, Naheed, D-Mart), and International Modern trade (Large houses such as Makro). Merchandising Drives: It depends on the Channel the team is choosing to communicate it’s product (surf excel). They may ask the retailer to have at least 50 pieces of surf in their shelves along with POS Materials (posters, banners, shelves, etc) 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, Strata 2 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 20% advertising sites. Strata 3 would have 20% advertising sites. Strata 4 nil Strata 5 nil Strata 6 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 the site selected. The most effective advertising site in Pakistan is Shahrah-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 altitudes road. Buy 1 get 1 free offer is not a issue for the company, because no product is sold at a profit less then 60%. Moreover in the Income Statement nets sales increases as the volume increases. So does the profit. Before launching such types of offers Break even is analysed The plus point of the marketing strategy of Surf Excel is that when all other (detergent) brands were campaigning against stains and how dirt is bad for clothes, Surf Excel came up with the tagline- Dirt is Good.

SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

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’s mind. Frequency of target market is also analyzed. In Electronic media, especially Television PTV and Atv has the biggest countrywide viewership. Whereas in Private Sector Hum tv currently is the biggest Tv production and broadcasting house. The selection of Print and Electronic Media depends again on the nature of product and the marketing strategies. The Ratio is divided for print and electronic Media in the beginning of the campaign.

Top brands advertised

Top 15 Advertisers on

#

BRAND

TIME % Share

#

PLAYER

1

SUNSILK SHAMPOO

2 3

PEPSI COLA ENERGILE

5.0 3.7

4 5

WALLS MOO ICE CREAM PEL PRODUCTS

6 7

CLEAR SHAMPOO ZONG

1 2 3 4 5 6

UNILEVER PAKISTAN LTD 23.7 PEPSI COLA INTERNATIONAL 8.2 CHINA MOBILE 4.3 NESTLE MILKPAK LIMITED 4.3 RAFHAN BEST FOOD (PVT) LTD 4.2 COLGATE PALMOLIVE PAKISTAN 4.2 ENGLISH BISCUITS MANUFACTURERS 3.3 PAK ELECTRON LTD 3.2 TELENOR PAKISTAN 3.1 KINGS FOOD (PVT) LTD 3.1 PIZZA HUT 2.2 HILAL CONFECTIONERIES (PVT) LTD 2.2 POWER CEMENT 2.1 PAK TELECOM MOBILE LIMITED 2.0 CHAUDHRY DAIRIES LTD 2.0

8 9 10 11 12 13

3.4 3.0 3.0 2.9

2.8 SURF EXCEL 2.7 WALLS CORNETTO ICE CREAM 2.5 PIZZA HUT 2.2 BROOK BOND SUPREME TEA 2.2 PEEK FREANS SANDWICH BISCUITS 2.1 POWER CEMENT 2.1

14 KNORR NOODEL 2.0 15 HILAL PAN PASAND CANDY 2.0

7 8 9 10 11 12 13 14 15

TIME % Share

Moreover retailing consumer products is Unilever’s bread and butter. The company has the biggest retail reach in the country with the company servicing 500,000 outlets, of which 50 per cent are covered direct by the company’s 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.

SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

SWOT ANALYSIS: STRENGTH:    

Constantly changing as per washing needs. Strong brand portfolio. High quality manpower. This is the company’s strength. With rising competition, the company is now focusing on getting the right product at the right shop with the right kind of visibility.

WEAKNESS:  Possibility for low price competition.  Spends on entertainment instead of new product.

OPPORTINITIES:  Growing rural markets.  As brand grows, increase in consumption and usage.  Upgrading customers through innovation (soap migration).

THREATS:  Local products and other major competitors. MARKET POSITIONING: As the best detergent in the detergent’s category.

TARGET MARKET: Mainly housewives but the things have to be seen in context. Pakistan’s middle income group comprises about35million consumers. They have a combined spending power of Poland. But Surf Excel is not just targeting the middle income category. With the broadest socio-economic footprint amongst consumer goods competitors, Surf Excel is also looking at lower income market as well as the higher income bracket with different sets of products. That was the income bracket but if we analyse the commercials aired on TV or Radio or via print media we will notice that most of the communication is done by the help of children through tagline dirt is good. The philosophy behind this is the children are the best influencers for the deciders. The children with this eye catching phrase try to influence the decision of their parents (mainly mother) who are the deciders.

SEGMENTATION: Segmentation is done on the basis of Living standard measure (LSM), which ranges from 1 to 15. 1 denotes those people who are living from hand to mouth, whereas 15 denotes extremely rich and elite class. LSM is measure by a number of variables such SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C) as no of mobile phones in a house, no of cars, income bracket, etc. Surf Excel starts from 6 who can afford washing machine for washing.

COMPETITION:         

Ariel Enzymax (P&G), Brite Total (Colgate Palmolive), Bonus Active, Bonus Tristar, Express Power, Express Ultra, Tide Super plus, Wheel lemon power and most of all WASHING SOAPS.

PRODUCT LIFECYCLE: Surf Excel is at growth stage unlike Lux which is at Maturity. The Surf is still showing an increase in profits (approximately 25% this year). At growth if the sales are stagnant or not increasing company can relaunch or reposition it’s product to give a boost as it was previously done with Lifebuoy.

EVALUATION: Surf excel is a major player in the Pakistani detergent market. today the market is not declining but shifting towards more perceived value and added brands. So every brand has to update itself with changes to retain it’s position in the market. Unilever, Pakistan’s largest consumer products company, has a problem. It cannot keep up with demand for some of its products. These include laundry powder also. Demand is so strong that, in the case of foods, despite doubling production capacity, Pakistanis can’t seem to have enough of them. But this is just the tip of the iceberg because one can easily ascertain how much demand is there for Surf Excel as it has 41% market Share. One of the areas where consumer product companies are increasingly focusing is central and southern Punjab where two factors are driving demand. One, a string of successful harvests has meant rising disposable income for farmers. The second, interestingly, is 40 or so television channels that broadcast to viewers in this area. “They are the driving force behind building aspirations. This for Unilever is an opportunity for selling its products.

SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)

CONCLUSION: A stream of innovation and successful relaunch of Surf Excel increased value of Unilever’s propositions for consumers. The latest campaign of Surf as “Dirt is good” has created a good ground for the success of marketing strategies of Surf Excel. Moreover, surf as being the product of Unilever has a plus point within itself, but still with an aggressive campaigning of “Dirt is Good” has bear increased profits along with market expansion status of the product as well as the company.

RECOMMENDATION: The possibilities are endless. For example, shampoo penetration is one of the lowest in Asia. Similarly fifty per cent of the population still uses laundry soap to wash their clothes which comprises mainly the low income group. Unilever has 40pc of the market for detergent powder (Surf Excel). A switch from laundry 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 the supply chain to achieve cost competitiveness. This will enable the business to expand its share of consumer spending despite the increasing level of competition.

SOURCE: URL:           

http://www.thenews.com.pk/print1.asp?id=100155 http://www.pakistaneconomist.com/issue2001/issue41/f&m5.htm http://www.travel-culture.com/pakistan/media/hum_tv_advertisers.shtml http://www.dirtisgood.com.pk/ http://www.unileverpakistan.com.pk/ourbrands/homecare/surfexcel.asp http://www.unileverpakistan.com.pk/ourcompany/careers/insideunilever/howwework/ http://investing.businessweek.com/businessweek/research/stocks/snapshot/snapshot_a rticle.asp?symbol=UNIL http://www.paksearch.com/Annual/Annual00/LEVER00.htm http://www.pdfcoke.com/doc/3701110/Pricing-Strategy-and-Programs?autodown=doc http://74.125.95.132/search?q=cache:Xk23Qs3XF-gJ http://www.unilever.com/Images/ir_q108_announcements_tcm13124823.pdf+Surf+Excel+Branding+strategy.doc&hl=en&ct=clnk&cd=5

BOOKS:  Principles of marketing (Gary Armstrong and Philip Kotler 10th edition)  Marketing Management (Philip Kotler 11th edition)

SUBMITTED TO PROF. MUMTAZ 15TH DECEMBER, 2008

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