Surf Vs Airel

Consumer Behaviour

The War Between SURF

ARIEL

&

2

The Scenario Of Indian Detergent Market • Total market 23 lakh tons in volume • 7 lakh tons market laundry soaps & bars • 16 lakh tones market synthetic detergents • 40% detergent cakes • 60% detergent powder • 40% share of HLL (Surf approximately 10-12%) • 5% share of P&G (Ariel approximately 1-1.5%) 3

Launch of Surf & Ariel • Surf introduced in 1959 by HLL • Ariel introduced in 1985 by P&G • Price War 4

Pricing Strategy Products 20 200 ½ gm. gm. kg. Surf Excel Blue Surf Excel Quick Wash Ariel Tide

2/2/2/-

16/- 41/-

1 kg.

1½ 3 kg. 4 kg. kg.

-

113/ 240/ 310/ 26/- 56/- 109/ -

26/- 55/- 107/ 150/ 1.5/ 11/- 26/- 51/-

-

-

-

220/ 5

Distribution Strategy • Distribution chain

– Manufacturer-> regional stockiest-> retailer-> consumer – Manufacturer-> wholesaler -> retailer-> consumer

• Distribution margin

– HLL 5%, Surf approximately 1-1.5% – P&G 6%, Ariel approximately 1-2.5%

• P&G is now trying to share off distributor margin by 2%

6

Advertising & Promotional Strategy • Basic aim is to regain •

consumers to use surf more and more Spends on A&P is approx. 500 to 700 crore

• It was a popular brand in itself

• Surf offering a Rin cake free as a promotional offer

• Basic aim is to

•

convince the masses to use Ariel more and more Spends on A&P is approx. 400 to 600 crore

• Joint promotion with Whirlpool

• Demonstrations • Sales contest

7

Survey • Question. On the basis of following

points, what would you prefer SURF or ARIEL – Price… Packaging… Fragrance… Quality…

Arie l Surf

8

Surf SWOT Analysis • Strength

>More famous in North and East side >Constantly changing as per washing needs >Strong brand portfolio >High quality Manpower

• Opportunities

>Growing rural market >As brand growth, increase in consumption and usage >Upgrading consumers through Innovation

• Weakness

>Possibility for low price competition >Spends on education and entertainment in spite of new products

• Threats

>Local products and other major competitors

9

Ariel SWOT Analysis • Strength

>More famous in South and Western side >Premium Brand >Unique combination of high performing ingredients

• Opportunities

>Introducing of new brands >Increase in expenditure for Promotional and Advertising >Improvement in

• Weakness

>Not in reach of rural areas >Ignorance on distributors return on investment

• Threats

>Spurious / counterfeit products in rural areas and small towns >Local products and other major competitors 10

Recommendations • Price • Promotion & Advertising • Marketing • Packaging • Effective R&D towards the product

11

Conclusion Ariel and Surf are not only major players in the Indian Detergent market but Henkel and Nirma are also becoming very aggressive. By considering all the above points today the market is not declining but shifting towards more perceived value added brands. So every brand has to update itself with changes to retain it’s position in the 12 market.

With Thanks… • Shubhangi Ghag

19

• Ebrahim Nazari

44

• Labdhi Sukhani

78

• Dipti Nimse

86

• Kirti Rajput

87 13