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  • 1. NAME: UZAIR HAMEED (FA07-BB-0101)COURSE TITLE: MARKETING MANAGEMENT (SEC. C) ON:SHORT REPOT ON: TO:SUBMITTED TO: PROF. MUMTAZ AHMED KHAN
  • 2. SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C) TABLE OF CONTENTSTOPICS PAGE NOAcknowledgement…………………………………………………. 2Executive Summary………………………………………………... 3Introduction………………………………………………… ……... 4Company Information……………………………………… ……... 5Product Information………………………………………………... 5Unilever’s Message………………………………………………… 5Brand Philosophy…………………………………………………... 5Product……………………………………………………………... 6Packaging…………………………………………………………... 6Price………………………………………………………………... 6 Distribution Price Strategy…………………………………. 7Promotions…………………………………………………………. 8Place………………………………………………………………... 9SWOT Analysis……………………………………………………. 10Target Market………………………………………………………. 10Segmentation……………………………………………………….. 10Competition………………………………………………………... 11Product Lifecycle…………………………………………………... 11Evaluation………………………………………………………….. 11Conclusion…………………………………………………………. 12Recommendation…………………………………………………... 12Sources……………………………………………………………... 12SUBMITTED TO PROF. MUMTAZ 115TH DECEMBER, 2008
  • 3. 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 workon report but I am greatly thankful to Almighty Allah for enabling me to get successfullythrough my responsibilities. Very warm and special thanks to my respected teacher Prof. Mumtaz AhmedKhan, whose real dedication and devotion kindled in me hope and light. Sir I thank yourability of extracting the very best out of me, for your patience and perseverance, and alsofor acknowledging the efforts made by me during the whole semester.Thank you. God Bless youFrom Uzair HameedSUBMITTED TO PROF. MUMTAZ 215TH DECEMBER, 2008
  • 4. 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 wassuccessful in regaining it’s market leadership. It soon emerged back as the dominantdetergent 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 productcan 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 aRecall value among the prospective customers. It should stand out among its competitorsbecause majority of the purchases are impulsive buying’s. Price is decided as per the economic situation and spending pattern of the targetmarket. Distribution pricing strategy is determined in such a way so as to suit all forms oftrade (GT, LMT, IMT) along with customer’s purchasing power. Promotion was the most important ingredient in the revival of Surf Excel. Theevent Paint Masti created a name of the brand. Relaunch of the Surf with the tagline “Dirtis Good” helps in differentiating the product, because all other brands are still focusingon 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 themost economic and effective time. The target market of Surf Excel is mainly Housewives as deciders, whereaschildren as influencers. Surf Excel is available in 4 different packages so that everyincome bracket can purchase it. The product this year showed a robust growth and increased profit. This reflectsthe strong brand equity of Surf Excel and market acceptance. Surf Excel’s repenetrationin the market is a model of exemplary marketing strategies.SUBMITTED TO PROF. MUMTAZ 315TH DECEMBER, 2008
  • 5. SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)INTRODUCTION: Change is inevitable and a leader must be willing to embrace change rather thanresist it. When new technology opens the possibility of a new market that may threatenthe existing one, a successful firm should consider entering the new market so that it willhave the first-mover advantage in it. For example, Surf lost its leadership as Ariel camewith a better technology powder safe for hands and tough on dirt. Surf did a re-entry witha marvelous campaign of “Dirt is Good”. The company has been able to maintain itsleadership position because it used its resources to form make a move into thecompetitive arena. In this short report different marketing strategies of Surf Excel along with 4ps ofmarketing mix has been discussed. In this report we will be looking at the differentmarketing philosophies of the success behind the brand Surf Excel.SUBMITTED TO PROF. MUMTAZ 415TH DECEMBER, 2008
  • 6. 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 foodproducts, such as soups, bouillons, sauces and dressings, noodles, complete meals,margarine and spreads, olive oil, and tea, as well as frozen foods; cleansing and hygieneproducts for the home care market; and skin cleansing, deodorants, and antiperspirantsfor personal care market. It offers its products under Close Up, Axe, Dove, Rexona,Sunsilk, Wheel, Rafhan, Surf Excel, Comfort, Lux, Pond’s, Lifebuoy, Lipton, BrookeBond, Energile, Knorr, Pearl Dust, and Supreme brands. The company was founded in1872 and is based in Karachi, Pakistan. Unilever Pakistan Limited operates as asubsidiary 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. Its how kids learnexpress 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, bothyoung and old. To ensure that everyone, anywhere in the country, can share in thisinitiative, were investing heavily in developing a range that suits the pockets of allincome groups. This has included launching affordable skus that not only offer the top-clean advantages of Surf Excel, but also reduce the time, physical effort and amount ofwater needed to wash clothes by hand.BRAND PHILOSOPHY: Surf Excel believes that stains are good. This is because when children go out andplay and get dirty, they dont just collect stains. They experience life, make friends, shareSUBMITTED TO PROF. MUMTAZ 515TH DECEMBER, 2008
  • 7. 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 forthe 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 wereinvited 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’splay: the idea of learning through play, the obstacles towards play, the impact of notenough play for our children. As a socially responsible company and brand, it believesthat they can create a platform on which they can take this message forward to showcasehow playing helps children mentally and physically.PRODUCT: Regional Brand Teams at Bangkok meets and decides where to launch whichproduct. The feasibility report is prepared and market insights are discovered. Marketinsights should match Local Insights. In the report even the people’s actions whilewashing are also observed and presented in the report. This enables to present a fullfledge information about a the attributes, cultural values, and motions of a particularcommunity, region, or a nation, may it be washing pattern, economic condition, orspending 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 designingpackaging for Surf Excel. Packaging should be to create impulsive desires, and it shouldstand out among its competitors. It is where Product development team and marketerscome into action in furnishing packaging standards for all its product ranges.Product Range:Surf excel 30g Surf excel 2kg Surf excel 125g Surf excel 1kgPRICE: Surf Excel is available in different sizes and quantities in the market for differentprices. Its competitors in its upper-class segments are Ariel which is a product of P&Gand Brite Total which is a product of Colgate-Palmolive (Laksons group). Its market-SUBMITTED TO PROF. MUMTAZ 615TH DECEMBER, 2008
  • 8. SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)oriented statement is “Daagh NHI to seekhna NHI”. The company has offered 1kg ofSurf excel in the market for 120 rupees. Besides that it is also available in the market insachets pricing from 5-10 rupees and in ½ kg for about 70 rupees. It is a quality orientedproduct providing value to their customers. It is priced for every consumer according tohis or her financial status. In 2005 Unilever adopted one of the price-adjustment strategies which wasdiscount & allowance pricing as they offered 1kg of Surf Excel for 105 rupees. Throughthis strategy promotional pricing strategy also came in progress as their product waspromoted through it and the sales increased rapidly. But as its competitors also reactedfor this change through customizing their offerings and price cuts Surf Excel was finallyfocused towards price increases. Besides that Surf Excel pricing strategy have also beento provide value and recently the company improvised their strategy as they focusedtoward more promotion through campaigns. Beside that the company has alsoimplemented product line pricing strategy as their offerings are in different quantitiesalong with different prices in the market for Surf Excel. Several offers have also been introduced by Ariel and Brite in the market usingPromotional, discount, and psychological pricing strategies and for that Surf Excel havealso responded efficiently through its strategies.DISTRIBUTION PRICING STRATEGY:Unilever distributor GT / LMTUnilever IMT through annual pricing planWhere, 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 asMakro)FOR CASE 1: List price Rs. 100Add: Distributor price (5%) Rs. 105Add: Trade price (5%) Rs. 110.25Final Retail price (10%) Rs. 121FOR CASE 2: List price Rs. 100 Trade price (add 10.25%) Rs. 110.25Surf Excel also launches Temporary price reductions (TPR) such as 0.25/unit for a weekor for a month. They also gives Bonus. Such as Bonus 25 cartons---0.5/caseWhile setting prices or changing prices the team of Surf also looks at the Equity LevelSUBMITTED TO PROF. MUMTAZ 715TH DECEMBER, 2008
  • 9. SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)Which is determined by the Price Index. It measures the relative SKUs (Stock KeepingUnits). For example, Product price % Ariel 1 kg 230 115% Surf excel 1 kg 200 100% Brite 1 kg 190 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 asAghaz, Naheed, D-Mart), and International Modern trade (Large houses such as Makro).Merchandising Drives: It depends on the Channel the team is choosing to communicateit’s product (surf excel). They may ask the retailer to have at least 50 pieces of surf intheir shelves along with POS Materials (posters, banners, shelves, etc) Outdoor Media Agency is appointed for the advertising campaigns via billboardand 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 withcomparatively 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 nilStrata 5 nilStrata 6 nil They may book the site either for 30, 60 or 90 days depending upon the nature ofthe product, budget of the campaign, and rent of the site selected. The most effectiveadvertising site in Pakistan is Shahrah-e-Faisal. The effective billboard which isdisplayed on the left of the driver and is at a height of 40 to 50 feet, with an exception offlyovers, bridges, and high altitudes road.Buy 1 get 1 free offer is not a issue for the company, because no product is sold at aprofit less then 60%. Moreover in the Income Statement nets sales increases as thevolume increases. So does the profit. Before launching such types of offers Break even isanalysedThe 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 cameup with the tagline- Dirt is Good.SUBMITTED TO PROF. MUMTAZ 815TH DECEMBER, 2008
  • 10. SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)PLACE:Mind Share is the Media Buying House for Unilever in Pakistan. The airtime ispurchased 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 TelevisionPTV and Atv has the biggest countrywide viewership. Whereas in Private Sector Hum tvcurrently is the biggest Tv production and broadcasting house. The selection of Print andElectronic 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 % # PLAYER TIME Share % Share1 SUNSILK SHAMPOO 5.0 1 UNILEVER PAKISTAN LTD 23.72 PEPSI COLA 3.7 2 PEPSI COLA INTERNATIONAL 8.23 ENERGILE 3.4 3 CHINA MOBILE 4.34 WALLS MOO ICE CREAM 3.0 4 NESTLE MILKPAK LIMITED 4.35 PEL PRODUCTS 3.0 5 RAFHAN BEST FOOD (PVT) LTD 4.26 CLEAR SHAMPOO 2.9 6 COLGATE PALMOLIVE7 ZONG PAKISTAN 4.2 2.8 7 ENGLISH BISCUITS8 SURF EXCEL 2.7 MANUFACTURERS 3.39 WALLS CORNETTO ICE 8 PAK ELECTRON LTD 3.2 CREAM 2.5 9 TELENOR PAKISTAN 3.110 PIZZA HUT 2.2 10 KINGS FOOD (PVT) LTD 3.111 BROOK BOND SUPREME 11 PIZZA HUT 2.2 TEA 2.212 PEEK FREANS SANDWICH 12 HILAL CONFECTIONERIES BISCUITS 2.1 (PVT) LTD 2.213 POWER CEMENT 13 POWER CEMENT 2.1 2.1 14 PAK TELECOM MOBILE14 KNORR NOODEL 2.0 LIMITED 2.015 HILAL PAN PASAND CANDY 2.0 15 CHAUDHRY DAIRIES LTD 2.0 Moreover retailing consumer products is Unilever’s bread and butter. Thecompany has the biggest retail reach in the country with the company servicing 500,000outlets, of which 50 per cent are covered direct by the company’s distributors and thebalance through wholesalers. For company the main business is done by General Trade ascompared to IMT or LMT, therefore different incentives and preferences are given togeneral retailers, wholesalers and distributors.SUBMITTED TO PROF. MUMTAZ 915TH DECEMBER, 2008
  • 11. 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 middleincome group comprises about35million consumers. They have a combined spendingpower of Poland. But Surf Excel is not just targeting the middle income category. Withthe broadest socio-economic footprint amongst consumer goods competitors, Surf Excelis also looking at lower income market as well as the higher income bracket withdifferent sets of products. That was the income bracket but if we analyse the commercials aired on TV orRadio or via print media we will notice that most of the communication is done by thehelp of children through tagline dirt is good. The philosophy behind this is the childrenare the best influencers for the deciders. The children with this eye catching phrase try toinfluence the decision of their parents (mainly mother) who are the deciders.SEGMENTATION: Segmentation is done on the basis of Living standard measure (LSM), whichranges from 1 to 15. 1 denotes those people who are living from hand to mouth, whereas15 denotes extremely rich and elite class. LSM is measure by a number of variables suchSUBMITTED TO PROF. MUMTAZ 1015TH DECEMBER, 2008
  • 12. 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 from6 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 stillshowing an increase in profits (approximately 25% this year). At growth if the sales arestagnant or not increasing company can relaunch or reposition it’s product to give a boostas it was previously done with Lifebuoy.EVALUATION: Surf excel is a major player in the Pakistani detergent market. today the market isnot declining but shifting towards more perceived value and added brands. So everybrand 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 cannotkeep 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 icebergbecause 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 iscentral and southern Punjab where two factors are driving demand. One, a string ofsuccessful harvests has meant rising disposable income for farmers. The second,interestingly, is 40 or so television channels that broadcast to viewers in this area. “Theyare the driving force behind building aspirations. This for Unilever is an opportunity forselling its products.SUBMITTED TO PROF. MUMTAZ 1115TH DECEMBER, 2008
  • 13. SHORT REPORT ON SURF EXCEL MARKETING MANAGEMENT (SEC. C)CONCLUSION: A stream of innovation and successful relaunch of Surf Excel increased value ofUnilever’s propositions for consumers. The latest campaign of Surf as “Dirt is good” hascreated 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 anaggressive campaigning of “Dirt is Good” has bear increased profits along with marketexpansion status of the product as well as the company.RECOMMENDATION: The possibilities are endless. For example, shampoo penetration is one of thelowest in Asia. Similarly fifty per cent of the population still uses laundry soap to washtheir clothes which comprises mainly the low income group. Unilever has 40pc of themarket for detergent powder (Surf Excel). A switch from laundry soap to detergentpowder will be hugely beneficial to Surf Excel and ultimately for Unilever. Profitable growth will be sustained through focused brand building, innovationand superior management of the supply chain to achieve cost competitiveness. This willenable the business to expand its share of consumer spending despite the increasing levelof 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.scribd.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_tcm13- 124823.pdf+Surf+Excel+Branding+strategy.doc&hl=en&ct=clnk&cd=5BOOKS: Principles of marketing (Gary Armstrong and Philip Kotler 10th edition) Marketing Management (Philip Kotler 11th edition)SUBMITTED TO PROF. MUMTAZ 1215TH DECEMBER, 2008