Strategic Marketing & Planning

Strategic Marketing & Planning

Sehr Nafis Nazia Nasir

Introduction to Industry Laundry Market in South Asia Pakistan’s Laundry Industry Introduction to Unilever Unilever’s Market share in Pakistan Introduction to SURF EXCEL Customer Analysis Competitor Analysis Perceptual Mapping Customer based approach Strategic groups approach Evaluating competitors

Market Analysis Distribution Structure Actual Market Size Market Growth Potential Industry Attractiveness Summary Environmental Analysis Internal Analysis Recommended Strategies Objective of SURF EXCEL Current Marketing Strategy Future Strategy

Introduction to Industry

Laundry Market in South Asia

Pakistan’s Laundry Industry

Pakistan’s Laundry Industry

Detergent Market

Soap Market

Laundry powder

240000 tons(10 billion)

Laundry Soap

420000 tons(17 billion)

Major Players in Detergent Industry are

Unilever..

Vision

Mission is to add Vitality to life. Meet Touching everyday needs for nutrition, Hearts hygiene and personal care with Lives brandsChanging that help people look good, feel good and get more out of life.

Mission

Grow superior brands Impactful innovation Completive functional benefits Impactful and effective Core Values communication Win with customers Deliver best customer service Fit to compete Unilever’s Market Deliver vitality

share in Pakistan

SURF EXCEL Surf excel was launched in 1995 in Pakistan They have always believed that dirt is a valuable way to enrich our lives, both young and old. Launching affordable SKU’s Reduce the time, physical effort and amount of water needed to wash clothes by hand

Customer Analysis

Target Market Geographic Segmentation Location

All over urban)

Pakistan

Population

180million approx

(rural

Demographic Segmentation Age

18 and above

Family Size

Small / Nuclear Family

Occupation

Housewives / Mothers

Physiographic Segmentation Class

A / A- / B+ / B / BThose who want their kids to learn while growing but conscious of dirt.

Psychological Characteristics

Brand Conscious, Status Conscious, Highly Educated, self motivated

Behavioral Segmentation Motives

Self Actualization

Category

High End Needs

Involvement

Low Involvement

Benefit Sought Segmentation Stain Removal

Want stain removal in one go/wash

Customer Analysis

Customer Motivations

Unmet Needs

Complete cleaning of stains and all in just one wash A customer wants to save energy and water while doing their laundry. Reduces wrinkling so less ironing. Customers want to reduce the laundry Uses less water-with water issue. burden and thus are looking for complete cleaning of stains in one go. Anti bacterial formula-doesn’t allow germs to form when you sweat Customers looking for a detergent which takes care of their hands also Going for different skin (doesn’t dry them) types/allergies-people who have dry Over price and quality customers prefer good quality so that their laundry job is done without any nuisance

Competitor Analysis

Perceptual Mapping High Quality

Low Price

High Price

Low Quality

Direct Competitors

Class A / A- / B+ / B Family Size Small Family Occupation Housewives / Mothers

Class B / B- / C+ / C Family Size Medium / Big Family Occupation Housewives / Mothers

Evaluating Competitors Marketing Objectives

To increase market share Switch consumers from existing brand to Ariel Product innovation Brand loyalty increase

Variants

Currently there are only 2 variants available Ariel Original Ariel Jasmine

Ensure top of So that the consumer can mind recall remember the brand amongst competition Strengths of Ariel

Weakness of Ariel

•Economies of scale Good distribution Network •Captures shelf space •Perceived as premium brand •Huge R& D-Financially backed by P&G

•Considered no2 with respect to surf excel •No variants in Pakistan (surf excel has surf excel matic)

Evaluating Competitors Customer Benefit-

Right now Ariel is focusing on giving customers savings up to Rs.100 Ariel is associating the brand with customer on the bases to give them superior quality and makes the ground for customer to provide a theme which cause to have happiness.

Target Market

ARIEL target market includes Middle Class, Upper Middle Class and Upper Classes of the population of Pakistan. The Ladies of Pakistan who are very conscious about their family.

Market Positioning

Trusted and premium brand of Pakistan. customer satisfaction to their consumers. Now they are also focusing on savings where surf excel focuses on dirt being good for development Ariel uses savings approach. They have previously used Mrs Zubaida Tariq who is considered and expert on household advisory telling to use Ariel like she tells tips i.e. Totka’s.

Evaluating Competitors Marketing Objectives

Increase Market Share

Variants

Brite Surf Brite Total

Ensure top of mind recall

“Chamaktee Safai” Brite Total’s

Customer Benefit-

Whiteness + Shine Best Quality / Quantity Affordable prices

Target Market

Lower Middle Class, Middle Class, Upper Middle Class and Upper Classes

Market Ultimate clothes washing Positioni solution. Regardless of the ng texture, quality of cloth, There tag line includes “Daag to chala jaye ga par yeh pal wapas nahi aye ga” Strengths

Weakness

Well known No line Extension detergent, has No variety (no strong market machine powder etc presence ) Cleanliness Focuses on Stains Good distribution ( which is surf excel’s due to C&P positioning Not as such perceived as a premium brand

Market Analysis

Distribution Structure Detergent Industry

National Sales Distributor

Regional Sales Distributor

Common Distributors

Wholesalers

Retailers

Retailers Final Consumer Macro Outlets

Distribution Structure

2008 Distribution Share Market / Product Segment

Distributor / Retail

Distributor/ Wholesaler

Detergent Industry

55%

45%

2008 Distribution Share Competitors Companies

Distributor / Retail

Distributor/ Wholesaler

Unilever

50%

50%

P&G

60%

40%

Actual Market Size Market demand of 230,000-240,000 tons of detergents. The local detergent industry is producing around 175,000 tons. There is demand-supply gap of about 55,000 tons. Laundry Detergent Powder (LDP), as its market stands at 240,000 tons annual with a growth almost 10 percent a year. Unilever has 40pc of the market for detergent powder. In the Budget 2009-2010 it was stated that Annually, local producers supply the local market with 660,000 tons of laundry soap [420,000 tons]

Market Potential Detergent Market is growing by 10-12%. At present Consumer prefer detergent on the base of quality, especially the upper class they are very quality conscious Pakistani Peoples are moving from rural areas to urban areas as life style is changing. Advertising is promoting the detergents by comparing the functionality of different detergents and laundry Soaps. Increase awareness of usage benefit of detergent. Preference to use detergent to avoid the bad smell which comes from washing with soaps (as advertised by LDP’s)

Industry Attractiveness Summary

Components

Implications

Threat of new entrants

High

Bargaining power of buyer

Low

Threat of substitutes

Moderate to low

Bargaining power of suppliers

Moderate to low

Threats of rivalry among competitors

Moderate to low

Internal Analysis

SWOT Analysis

Strengths

Strong brand image and brand awareness of ‘Surf Excel’. Large sales force. Strong competitors

Weakness Opportunities Threats

Strong and healthy relationships with High price and of product distributors retailers. Changing life style Substitute product Unbranded/ smuggled washing Strong brand portfolio New markets powder Wide Innovation aspects of living Increased standard Political issues Excellent distribution More awareness Rising inflation, Success of slogan-stains are good High rate of population Profit margin is exposed growth. to rupee devaluation. Rising literacy. Threat of imposing regulatory duty

BCG Matrix

Asset & Competencies

Retail Reaches R&D People Performance Analysis Variants Brand

Brand Association Stain removal Powerful cleaning Brightness of colors intact Brand Update Good packaging Good fragrance

Brand Advertising

Brand Positioning

Recommended Strategies

Objective

“To be the best possible cleaning solution in the market” Sub - Objective

Approaching new markets Innovation Maintaining brand loyalty

Current Marketing Strategies Focusing towards Surf Excel Matic Focusing Brand Association for current Brand Research has shown high penetration of washing machines in Pakistan. 70% penetration in rural and over 90% penetration in urban areas. Cleaning criterion in washing machines is different. Hence the need for a stronger more compatible powder

4-P’s of Marketing Product

Launching a specialist powder which is exclusively used for machine washing.

Price

Matic is a superior powder that costs more to maintain certain margins hence the higher price.

Place

Same distribution through modern trade (superstores) and kiryana stores etc

Promotion

Regular education and awareness-building campaigns Stock availability in relevant outlets. Moreover, as consumers become more aware it is important to build credibility of an offering like Surf Excel Matic. To fulfill this requirement, Surf Excel Matic has also made co branding arrangements with Pakistan’s leading White goods manufacturer Dawlance

Future Strategy They could come up with Surf Excel Anti Bacterial and Ultra Violent Protection. Currently mothers are concerned with health issues for e.g. if a child is playing in mud, or is holding a dirty dog, or vomited on his clothes, than there are chances that he is playing or bringing in germs as well. So when she's washing the clothes she's removing just the dirt and not the germs which are in the clothes. Secondly you are not even sure if you are transferring germs from one bucket into another.

Strategy Alternatives Improve packaging of product as the current plastic bags once get opened are hard to maintain and handle. Branding some local laundry shops and selling the product to those shop owners at minimum revenue. Go into new products like liquid washing solution / laundry detergent that is super concentrated so you use 75% less liquid could be the, meaning less packaging and easier carrying.

Strategy Alternatives Or attracting consumers through detergents with functional benefits such as scents, creating new forms of products such as liquid detergents. Entering adjacent markets such as the pre-wash and post-wash segments.

Value Proposition Functional Benefits

Cleans and protects

Emotional Benefits

Dirt is good

Self expressive Learning by doing

Target Market

Marketing Mix Product

An innovative product which caters to environmental concerns. A product which deals with the harmful UV rays. So you can go out more in the sun without worrying too much about the rays.

Pricing

Surf excel is a premium product and is giving health benefits thus a higher price will be charged.

Promotion

Using TV advertising and radio as well as news papers and billboards Promotional campaigns like Games Masti which was done in 2007, there can be an event which indulges kids in games and educates the mothers about what their child is up against when he or she is playing out in the sun. Regular advertising will be used which will transcend any communication barriers.

Place

Available in all the retail outlets where Unilever has presence to have more market reach more retail outlets can be channelized.

Operation Plan

Assets and Competencies Good Company Image

Good Retailer Network

Communication Strategy Organization Culture

Events

Unilever Pakistan