Surf excel


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Surf excel

  1. 1. SURF EXCEL: THE BRAND By: Amit Das
  2. 2. 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
  3. 3.  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
  4. 4. 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
  6. 6. 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 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 Opportunity 1. Rapid market growth with further rural penetration 2. Adapting to changing customer needs & improving life styles Threats 1. Low profit margins in detergent sector 2.Threat from existing and new players in the market
  8. 8. 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
  9. 9. PRICE  The pricing strategy for Surf excel have always been in accordance with its competitors .
  10. 10. PROMOTION  1 st national detergent brand on TV Different formats of communication.  Commercials through NET & SMS.  Children festival  Sales promotion through aggressive pricing
  11. 11. 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
  12. 12. 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
  13. 13. 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  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
  14. 14.  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
  15. 15. 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.
  16. 16. 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.
  17. 17. 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.
  18. 18. 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.
  19. 19. BIBLIOGRAPHY   Excel/294365/  surf-excel.html  s_attachment/2013/HUL_Royalty%20Payment%20 12%20Feb%202013.pdf