Report on Marketing Strategy of Surf Excel

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Report on Marketing Strategy of Surf Excel

Presented To

Sir Jawad Saleem

　

Marketing Plan

Presented By

Habib Ahmed (062413)

　

　

　

　

　

　

　

Affiliation: Marketing Strategy

(MBA subject studying at IMS)

29-11-2008

　

　

　

Acknowledgment

May ALLAH bless me with such kind of dedicated teacher in future.

Thanks to Sir Jawad Saleem, under his dynamic guidance I am able to express myself. And I am now at the stage to complete my project. He is beyond my thoughts and much more than this acknowledgement.

And finally I am thankful that He cooperated with me and appreciated as well. All the research I have done is due to the skill I required from you. I have tried my best to provide you the actual facts and figures.

I hope you will surely feel a difference and will appreciate me.

Only your appreciation is my reward.

Table of Contents

1. Synopsis ……… ………………………………………………………………… 4

2. Mission Statement …………………………………………………............……. 5

3. Current Marketing Situation………………………………………………..……6

o Market Description..........................................................................6

o Product Review……………………………………………………11

o Review of Competition……………………………………………12

o Review of Distribution.....................................................................14

o Market Potential…………………………………………………..15

4. Swot Analysis…………………......................................…………………….... …16

5. Objectives and Issues ……………………................................…………….........18

6. Marketing Strategies …………………………………………….....….……........19

Positioning Strategy…………………………………….……………....19

Marketing Mix (Product)…………………………………….………...20

Marketing Mix (Price)…………………………………………….……22

Marketing Mix (Distribution)………………………………………….25

Marketing Mix (Promotion) …………………………………….…….. 27

Competitive Strategy……………………………………………............31

7. Marketing Research..................................................................................................33

8. Budget.........................................................................................................................36

9. Control………………………………………………………………….……….......36

10. Bibliography………………………………………………………………….…......37

Synopsis

　

　

　

　

　

• Through this study I obtain information about different players of detergent market.

• Through this project I can tell the people about the current market situation of surf excel as viewing the market, which will provide a picture to how consider the market trends in future.

• I am student of Marketing Strategy, so that's why I want to know about Surf Excel Marketing System.

Surf

Dominating the washing powders markets in Pakistan for four decades; Surf has continued to change according to consumer needs. Being a pioneer, Surf had to work hard to gain acceptance in the early days. To educate housewives about its use, house to house demonstration were organized in Lahore and Karachi. Free sample and coupons were also distributed to recruit consumer. There has been no looking back since the brand has undergone numerous product quality improvements to offer best cleaning results. Over the year, there has been a shift from cartons to poly ags and emergence of low unit price packs.

With continuous technological innovations, the brand has always managed to fight off competition. Surf Excel, which hit the shops recently, has already gained a reputation for the best in the market

MISSION STATEMENT

We are the leading consumer products company in Pakistan, a multinational with deep roots in the country.

We serve the everyday needs of all consumers everywhere for foods, hygiene and beauty through branded products and services that deliver the best quality and value.

Our bands capture the hearts of consumers through outstanding communication

Through managing a responsive supply chain, we maximize value from suppliers to customers

We are exemplary through our commitment to business ethics, Safety, Health, Environmentalist and involvement in the community.

Current Market Situation

　

　

Market Description

Product Review

A comparison of cost price with sale price of Products in product line.

Surf Excel

Quantity	Cost Price in Rupees	Sale Price in Rupees
25 grams	4.7	5
50 grams	9.5	10
115 grams	19	20
500 grams	110.50	115
1000 grams	199.50	210
2000 grams	385	405

Unilever Products B.C.G Matrix

Star *Ponds skin cream*	Question mark
Cash cow Surf Excel Sun silk Shampoo	Dog Lifebuoy Shampoo

Surf Excel:

Surf Excel is a product of Unilever which is at growth stage as it has large market.

In Market Surf Excel 50 grams has huge market share with respect to other Sashes.

While demand of 500 grams is very low.50 grams is facilitating the class B and Lower B.

And 500 grams are facilitating the Class A and Class B+.

A Review of Competition

　

　

　

　

Ariel

　

History

When we talk about “P & G” then question arises what stands for it, basically it stands for “Proctor & Gamble”. Basically it came into existence in 1837 in queen city of west.

William Procter quickly established himself as a candle maker. James Gamble apprenticed himself to a soap maker. Soon they started to work combine in 1837, a bold new enterprise was born: Procter & Gamble.On April 12, 1837, William Procter and James Gamble start making and selling their soap and candles. On August 22, they formalize their business relationship by pledging $3,596.47 apiece. The formal partnership agreement is signed on October 31, 1837.

They are also in the process to facilitate on the base of providing washing powder.

Need

Use for the purpose to wash the cloths

Customer Benefit

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 OF ARIEL

Ariel has adopted the strategy of market aggregation. 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.

MARKETING POSITIONING

Ariel is considered to be a trusted and premium brand of Pakistan. Procter and Gamble is positioning their product in the best of their customer satisfaction. As charging money they are positioning their product as best use as well as providing quality in response.

They are focusing on the quality and they are also in a motive to facilitate the customer as providing a whole range which they can.

Price Comparison with different Players

Brand Name	Quantity	Price in rupees
Surf Excel	1000 grams	210
Ariel	1000 grams	210
Brite	1000 grams	170
Express Power	1000 grams	125
Bonus	1000 grams	60

A Review of Distribution

　

Distributors

Distributors are the institution through which availability of products is possible. Unilever’s distributors have a very good relationship with them. and the important thing is that they must integrated into total marketing mix because of time and money required to setup an efficient channel.

Unilever has Six distributors in Lahore which are as follow.

· Allied Marketing at Gulberg II

· Shahzad Brothers Enterprises at Murgi Hana

· Sigma at Kotlakhpat

· Munner & Phips at Sham Nagar

· Munner & Phips at Ravi Road

· Munner & Phips at Johar Town

DISTRIBUTION STRATEGIES

Unilever uses the following multiple channel of distribution.

Wholesaler

Distributor

Retailer

Consumer

Company

Consumer

Retailer

Distributor

Company

Unilever uses a lot of distributors and retailers to supply its products in each market where the final customer might reasonably look for it. While appointing a distributor for a particular area, management uses its own judgment to select such a person that has a potential to operate effectively.At present Situation for Surf Excel they are focusing by intensive manners and for new products like Surf Excel Matic they are focusing the distibution channal by Exclusive manners.

Effect of Distribution on sales trend

Designing of channel for Surf Excel

Unilever has adopted the method of intensive distribution for Surf Excel because the target market of this product is segmented for washing cloths using any method.

The customer want to purchase this product from nearest shop as this is convenience product.

　

　

Market Potential

§ Detergent Market is growing by 16% intensively.

§ At present Consumer prefer detergent on the base of quality.

§ 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.

]

SWOT Analysis

　

　

Strengths

Ø Enjoying economies of scale

Ø Good will in the market

Ø Strong financial position

Ø Surf has become the generic name in detergents

Ø Have Strong distribution channel in Pakistan

Ø Abundant financial resources

Ø Well-known brand name

Ø Well brand image

Ø Committed employees

　

Weakness

Ø Huge inventory stocks of raw material

Ø Weak spending on “R & D”

Ø Internal operating problems

　

　

Opportunities

Ø Rapid market growth

Ø Changing customers needs & wants as life style change

Ø To create relation with society on the social marketing basis

Ø Pakistan peoples moves from soap to detergent

　

Threats

Ø There is very tough competition in detergents markets

Ø Low profit margins

Ø Smuggled brands of CHINA

Ø New competition in the market

Ø Increases in taxes

Ø Increases in prices due to fuel prices

　

　

　

Objectives

The objectives of the Surf Excel is

To meet the everyday needs of people everywhere – to anticipate the aspirations of consumers and customers and to respond creatively and competitively with branded products and services, which raise the quality of life.

Total commitment to exceptional standards of performance and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously.

To maintain highest standards of corporate behavior towards employees, consumers and the societies and world to acquire success.

The major points are as fallows.

Ø Sales growth

Ø Revenue

Ø Market positioning

Ø Enhance Market shares

Ø Customer satisfaction

Ø Goodwill & reputation

Issues

Ø For Sales growth they need highly intensive distribution and strong promotions

Ø Unilever is facing competition from P&G as on the base of different brands market share

Ø Unilever has to maintain its difference from other brands as creating unique values, that others are not giving with core product.

Ø Sales growth is possible when product remain at fixed price for a specific time period and this depend on cheapest raw material handling and its transporting.

Marketing Strategies

　

　

TARGET MARKET OF SURF EXCEL

Surf Excel has adopted the strategy of market aggregation. It is a product by Unilever. SURF EXCEL target market includes Middle Class, Upper Middle Class and Upper Classes of the population of Pakistan.

Surf Excel target the SOCIAL ECONOMIC CLASS OF A, B+ AND B

Surf Excel has the huge share from major cities.

MARKETING POSITIONING:

Surf Excel is considered to be a trusted and premium brand because of its unique association. Unilever is positioning their product in the best of their customer satisfaction which also differentiate from their competitors. They are creating environment for people to have a life easy chance.

As regarding the image there is message for the peoples to avoid on the occasions to restrict “when kids are in situation of doing something extra ordinary”.

They are also positioning as considering the fact of Strong’s competition .So they are also focusing different type of facilities.

　

　

　

MARKETING mIX

　

Product

　

　

In product some elements are involved which are Variety, Quality, Size, Features Brand Name, Packaging and Services.

　

Varity

Surf Excel is at present situation available in two varities

· Surf Excel

· Surf Excel Matic

　

Quality

Surf Excel quality is very popular among the peoples as Dominating the washing powders markets in Pakistan for four decades; Surf has continued to change according to consumer needs. since the brand has undergone numerous product quality improvements to offer best cleaning results.

　

　

Brand Name

Surf Excel is not only the product for washing the cloths but also it has created the The relation ship with customers as making grounds to promote their kids.

Surf Excel is the brand that is targeting the peoples through believes and values. There fore they define there product on the basis of some relating activities.

As regarding the image there is message for the peoples to avoid on the occasions to restrict “when kids are in situation of doing something extra ordinary”.

Parents should encourage them.

　

Size

Surf Excel is available in different quantities which are as follows

25g, 50sg,115g, 500g, 1kg and 2kg.

　

Price

　

　

Here the firms have to consider many factors for determining the price.

· Selecting the price objective

· Analyzing competitors costs,

· Prices and offers.

· Selecting a pricing method.

Price is simply the cost plus profit of the firm. There are many competitors in the market. So the firms have to consider about the competitive price while selecting new price and schemes.

Basic Method of Setting Prices

Unilever is using the following methods for price setting.

Price to Distributors

The company provides products to the distributors for the prices decided keeping in view the cost, the target revenue and competitors prices. All distributors are being equally treated.

Prices Charged by Distributors to Retailers

Unilever gives margin of certain percentage to distributors so in this way prices to be charged by distributors to retailers are fixed.

Prices Charged by Retailers to Ultimate Consumers

Company influences prices charged by retailers. So retailers are bound to charge fix price to ultimate consumer

How to set the price of the product

Prices are set by taking into consideration into the prices of the competitors.

· As there products are highly quality .so usually they charge high prices. Such like Unilever set low price for Wheel Washing Powder in past. And they are charging price of surf Excel on the base of its quality.

Prices are set by taking into consideration

· What Customer believe for high price & high quality.

· There price are high. because they believes in zero defects.

· They charge different prices to registered and unregistered retailers.

· Prices are set by taking into consideration the size, type of product.

LIst prices of surf excel

Surf Excel

Quantity	Price in rupees
25 grams	5
50 grams	10
115 grams	20
500 grams	115
1 000 grams	210
2000 grams	405

　

　

　

　

　

　

　

　

discounts

A quantity discount is price reduction to those who buy large volumes. This is given to increase company sales. So that firm can have more revenues. However Unilever is allowing 1% discount to distributors & whole sellers on purchase of Surf Excel of worth Rs 600.

discounts on payment period

It is a price reduction to buyers who pay their bills promptly. A typical example is 2 /10 net 30. Which means payment is due within 30 days and buyer can deduct 2 % by paying the bill within 10 days. But Unilever is not offering such discount. They are dealing on cash basis.

Functional discounts

These are also called trade discount which is offered by this particular firm. It will be given to those who perform certain function Such as storing, selling book keeping. Surf Excel has own agent or Book keepers. Helium VRCB is company which is performing such actions as referring by Unilever

Credit terms

Unilever is not operating on the basis of credit terms. The purchaser has to pay the amount within one day.

But listed parties such as Abdul Hameed store, AlGhosia store and Rana store are being facilitating on 7 days credit.

　

　

　

　

　

Place

　

　

　

Registered office

Avari plaza,

Fatima Jinnah Road,

Karachi.

Rahim Yar Khan Factory

Unilever Pakistan limited

Laghari road

Rahim yar khan

Channels

Unilever is focusing on the indirect marketing channels where they sell surf excel through retailers.

Consumer

Retailer

Distributor

Company

　

　

Locations

As on the basis of Surf Excel Unilever is focusing on all areas through which it is possible to cover different classes needs.

That’s why Unilever products are available at general stores as well as departmental stores, eg: Akbari store, Al Fatah & Decent departmental store.

Coverage

Unilever aims to create a long term relationship with customers so they belief that this objective will be only fulfill, if they have system to handled the markets needs as to reach the product on all areas where its target market exist.

Shelf Spacing

Surf Excel is being position in different departmental store on the base of taking the a specific area among other brands.

For this purpose Unilever is paying 2 million rupees to Alfatah store as acquiring 40 % area in the detergents.

Assortments

This term refer the situation where products are to be maintain on the basis of grading, However Unilever product (Surf Excel) is reliable.

Inventory

As Unilever mostly products are convenience product. So they have to maintain their position strong as contains the inventories in huge amounts. Through which it will be possible to facilitate the market on times as placing it after every two days.

Promotion

Promotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and greater purchase of particular product/services by consumer as the trade.

Unilever Pakistan Limited places their products in local as well as in foreign market. They export directly and indirectly. Unilever promote their products through media, and other trade incentives to distributors and wholesalers.

ADVERTISING STRATEGY

MEDIA USE

Unilever Pakistan Limited use radio, TV and Billboards and newspapers for advertising purposes.

FACTORS FOR DECIDING MEDIA STRATEGY

Which one is more effective

Cost benefit

More access

　

　

　

　

PROMOTION CAMPAIGN

“INAM HI INAM DOSTI KAY NAM”

From November 2 , 2008 To January 31 , 2009

Promotional activities provides chance to company to communicate with the potential parties to “Beat the drum” about it products.

In this scheme company gives the points to whole sellers on the purchasing of Rupees 200. Schdule is as follows.

Brand	SKUs	Purchasing	Points
Surf Excel	25	200	10
Surf Excel	50	200	10
Surf Excel	115	200	10
Surf Excel	500	200	16
Surf Excel	1000	200	16
Surf Excel	2000	200	16

The company sets up the store displays and sales officers make sure that items displayed are properly arranged so that they can look attractive on eye contact level. There fore Surf Excel is being shown on the hangers of the stores as in return of charges for it.

　

Promotion methods

Advertising.

Newspaper:

Jang and Naway Waqt is being used for advertisement in front page.

Television:

All nationwide channels are being used to run the campaign of Surf Excel.

Unilever has to pay the huge amount for it as advertise through different channels, eg: ATV & PTV.

ATV

Advertising Tariff

With Effect From 01 July, 2007

Time SlotRates per Minute

07:00am - 03:59pm25,000+GST

04:00pm - 05:59pm50,000+GST

06:00pm - 06:59pm75,000+GST

07:00 pm - 09:59 pm 100,000+GST

10:00pm -11:59 pm50,000+GST

12:00am - 06:59 pm15,000+GST

Radio:

FM 100, FM 103 and FM 106.2 is now a days being used.

Road display:

Bill Boards such like at Chuburji chowk is being used where a kid is showing the functionality & Purpose of Surf Excel.

　

　

Sales promotion

Incentives:

Last year Surf Excel was sell as giving 1kg mango on the base of purchasing of 1kg Surf Excel at selected areas such as Gulberg.

Samples:

Surf Excel is well known brand therefore there is no need to promote it by samples.

Personal selling

Order takers:

Company has employees who perform the activity of order taking from different areas to facilitate the retailers. There usually one day company perform the activity of order taking and very next day they deliver the Surf Excel to the destination.

Stalls:

Company arranges their stalls in the exhibition at which the products are displayed.

Public relations

Through Events:

Surf Excel is creating the relation ship with peoples as associating as considering the kids importantly because they know that when they will capture the feelings of the kids they have the strong grounds as this segment is more favorable.

Surf Excel game masti is a chain of public relations which held over year. Last year it was hold at Race Course Park.

Now a days there are focusing on making new playgrounds as demanding 1Re on 1 kg packet.

Competitive strategy

Competitive strategy

In competitive strategy there are some sort of pressure on you, which have, you must the capability to face it like they are

Pressure of Buyers:

When there is a lot of sellers lying in the market then buyer has power to influence.

Pressure of Suppliers:

One supplier for a company can exploit the company. There fore Surf Excel has 3 Suppliers for the purpose to bargain with them effectively.

Threats of Substitutes:

In the detergent market people have choices as they can take Surf Excel and Ariel alternatively.

Threats of new entrance:

New coming brands of China and other smuggled brands are huge threat for Surf Excel.

As concern of competitive strategy the organizations really should focus on following of three strategies

Differential strategy when we see towards the “Unilever” they have really provide the good quality products to the consumers like packing and beautiful appearance with beautiful colors and images as well as Unilever focusing on best quality of Surf Excel as charging the premium on it.

Cost leadership strategy as concern of matter with the “Unilever” they have really adopted such techniques, which shows that they have really focused on the cost minimization through adopting different techniques & new modern technologies.

Focus strategy as concern of matter with the “Unilever”. It is a multinational company so they focus the market segments and put totally their intentions to major segments.

Market Research on Surf Excel

Introduction:

We are conducting a research survey on Surf Excel to study its growth.

We need to identify what variables are affecting the sales of Surf Excel.

We really appreciate your value able time and expended cooperation filling in the information because you are the one who can give us to identify the variables.

We hereby confirm and assure you that your information been given in this survey form would be kept strictly confidential and would not be shared with any one other research members.

Instruction

· This questionnaire is about your personal experience so please read carefully while attempting it.

Q1. Which washing powder you use for washing cloths?
Surf Excel	Ariel	Brite	Bonus	Others

Q2. Surf Excel is better than any other detergent or Washing soap?
Strongly Agree	Agree	Some What Agree	Disagree	Strongly Disagree

Q3. Is Surf Excel Matic is a good product for washing the cloths in the washing machines?
Strongly Agree	Agree	Some What Agree	Disagree	Strongly Disagree

Q4. The result of Washing cloths from Surf Excel is different from other detergents?
Strongly Agree	Agree	Some What Agree	Disagree	Strongly Disagree

Q5. There is difference between Surf Excel and Surf Excel Matic?
Strongly Agree	Agree	Some What Agree	Disagree	Strongly Disagree

Q6. Choose number for ranking detergents.(1^{st, 2nd ,3rd, 4th )}
Surf Excel	Bonus	Brite	Ariel

^{Q7. Surf Excel Matic should be available in small size packets?}
Yes	No

Q8. Surf Excel has develop confidence in kids as promoting them?
^{Strongly Disagree}	^Disagree	^{Some What Agree}	^Agree	^{Strongly Agree}

^{Q9. Surf Excel Matic should be available at general stores?}
Yes	No

Q10. Surf Excel Matic is in market after awareness about it purpose and function?
^{Strongly Disagree}	^Disagree	^{Some What Agree}	^Agree	^{Strongly Agree}

^{Please fill the following

Name__________________________________________
Occupation_____________________________________
Phone Number__________________________________
　

Result & Findings

　
　
　
　
　
　

Which washing powder you use for washing cloths?

　
Surf Excel is better than any other detergent or Washing soap?

Is Surf Excel Matic is a good product for washing the cloths in the
washing machines?
　
　

　

Surf Excel Matic is in market after awareness about it purpose and
function?

　
　
Budget

　
　
Per kg revenue is 230 and variable cost is 150
While consumption will be 96000 tons.
There fore break even will be = (96000/230-150)*1000

　
　

Controls

　

　
Company deals only in those products that are profitable. If
there is any indication that any product is not profitable company analyzes the
reasons and step are taken to overcome the reasons. For this purpose Unilever
concern with marketing research firm
Aftaab Associates
for marketing research to gain the information about trend of market.
Company also takes into consideration the welfare of the consumers. It takes
into account the taste and habits of the consumer.

There fore company has finished the production of
Wheel Washing Powder in past.

It also works for the welfare and interest of Pakistan in the
following terms:

　
　
　
　
　
　
BIBLIOGRAPHY

　

　

　
Discussion with Muhammad Imran ( Territory manager)
Discussion with Adnan A.Butt (Sales Supervisor)
CONSUMER SURVEY
Economic survey of Pakistan

　

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