Final Report on Surf Excel

43
EXECUTIVE SUMMARY: Surf excel has been following the unilever’s message i.e. add and vitality to life similar with surf excel. In the beginning surf excel was facing competition from Ariel the product of P&G but very soon with the tag line DIRT IS GOOD surf excel was successful in regaining it’s market leadership. It soon emerged as the dominant detergent of the country. The product is deciding by matching the market insight with local insights. The marketing report of the brand should match the region’s attitude so that the product can fulfill and satisfy the customer/s need and expectation. The packaging is designed in such a manner that it should be able to create a recall value among the perspective customers. It should stand out among its competitor because majority of the purchase are impulsive buying’s. Price is decided as per economic situation and spending pattern of the target market. Distribution pricing strategy is determined in such a way so as to all form of trade (GT, LMT, IMT) along with customer’s purchasing power. Promotion was the most important ingredient in the revival of surf excel. The event Paint Masti created a name of the brand. Relaunch of the surf with the tag line the Dirt is Good helps in differentiating the product, because all other brands are still forcing that dirt is bad. The selection of place to communicate the brand message is a crucial process. The team of Surf Excel chooses the most effective media, be it print or economic and effective time. I Q R A U N I V E R S I T Y 1

Transcript of Final Report on Surf Excel

Page 1: Final Report on Surf Excel

EXECUTIVE SUMMARY:

Surf excel has been following the unilever’s message i.e. add and vitality to life similar with surf excel. In the beginning surf excel was facing competition from Ariel the product of P&G but very soon with the tag line DIRT IS GOOD surf excel was successful in regaining it’s market leadership. It soon emerged as the dominant detergent of the country.

The product is deciding by matching the market insight with local insights. The marketing report of the brand should match the region’s attitude so that the product can fulfill and satisfy the customer/s need and expectation.

The packaging is designed in such a manner that it should be able to create a recall value among the perspective customers. It should stand out among its competitor because majority of the purchase are impulsive buying’s.

Price is decided as per economic situation and spending pattern of the target market. Distribution pricing strategy is determined in such a way so as to all form of trade (GT, LMT, IMT) along with customer’s purchasing power.

Promotion was the most important ingredient in the revival of surf excel. The event Paint Masti created a name of the brand. Relaunch of the surf with the tag line the Dirt is Good helps in differentiating the product, because all other brands are still forcing that dirt is bad.

The selection of place to communicate the brand message is a crucial process. The team of Surf Excel chooses the most effective media, be it print or economic and effective time.

The target market of surf excel is mainly housewives as deciders whereas children as influencers. Surf Excel is available in four different packages.

The product last year showed a rapid growth and increased profit. This reflects the brand equity of surf excel and market acceptance. Surf excel regeneration in the market is a mood of exemplary marketing strategies.

I Q R A U N I V E R S I T Y

1

Page 2: Final Report on Surf Excel

COMPANY INTRODUCTION:

Unilever was created in 1930 when the British soap-maker Lever Brothers merged with the Dutch margarine producer, Margarine Unie.Unilever Company came into the Pakistan market in 1949 with the name of Lever Brothers Pakistan. Changed the name Lever Brothers Pakistan to Unilever in year 2003.The leading consumer products company in Pakistan, a multinational with deep roots in the country. Change is inevitable and a leader must be willing to embrace change rather than resist it. When new technology opens the possibility of a new market rather that may threaten the existing one, a successful firm should consider entering the new market so that it will have the first-mover advantage in it. For example Surf loss it leadership as Ariel came with a better technology powder safe for hands and tough on dirt. Surf did recently a marvellous campaign of Dirt is Good. The company has been able to maintain its leadership position because it used its resources to make a move into competitive arena.

Mission Statement

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

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.

Drive to serve consumers in a unique and effective way.

Attract and develop highly talented people, who are exited, empowered and committed to deliver double-digit growth.

Serve everybody needs of all the consumers everywhere for foods. Hygiene and beauty through branded products and service that deliver the best quality and value.

Strive to maintain an ever simple and enterprising business.

Use superior consumer understanding to produce breakthrough innovation in brands and channels.

Committed to making continuous improvements in the management of our environmental impact and to the longer-term goal of developing a sustainable business.

I Q R A U N I V E R S I T Y

2

Page 3: Final Report on Surf Excel

Brands capture the heart of consumers through outstanding communication.

With branded products and services which raise the quality of life.

Through managing a responsive supply chain management, they maximize value from suppliers to customers.

They are exemplary through commitment to business ethics, health, environment and involvement in the community.

Company Values

Unilever Vision, Mission, Values, and Code of Business Principles are the principle belief of the company.

Employees are ambassadors of Unilever, both inside and outside the work place.

Respect Individual differences and provide equal opportunity regardless of gender, ethnic or social background.

Treat each employee and contacts with respect, regardless of grade and job title.

Set the business priority accordingly.

Respect time enthusiastically to achieve growth.

Company search for new ideas even by the consumers.

Every person is a potential Unilever customer, they treat all with respect.

Ensure superior quality products and services and aiming for zero complaints.

Never lose a consumer, Own the problem, win them back and ensure they feel positively treated.

I Q R A U N I V E R S I T Y

3

Page 4: Final Report on Surf Excel

BRAND INTRODUCTION:

Industry Profile

For many centuries, soap was primarily used for laundering. However, laundry detergents have essentially replaced soap because they perform over a broad range of water hardness levels.

Laundry Detergent and washing powders have become an important part of every consumer’s life. The market offers a variety of washing powders, each brand claiming to wash the cleanest at unbeatable prices to consumers. Laundry detergents, however, exert a hidden but taxing cost on the environment and consumer health due to their environment-damaging properties. Phosphates are one of the main ingredients in most present-day laundry detergents and are also the primary culprits in polluting water bodies - a situation in water bodies like lakes, rivers and ponds which results in ultimate death of the water system. Undoubtedly, phosphates (STTP - sodium tripolyphosphate - the most commonly used phosphate in laundry detergents) beef up a detergent’s cleaning properties by softening hard water and preventing carbonates from settling on the clothes washed, but once the washing is done, phosphates wreak havoc on the environment when they are washed down the drain.

Laundry detergent is also widely used in the Pakistan market, the average per annum consumption of laundry detergent is approximately 33,000 tons - One tone detergent costs around 138,000 Rs.

Since the last two years, the market trend (Pakistan) in the laundry detergents has taken a good pace, and many consumers are switching from the bar soaps to laundry detergents. In terms of percentage, the increase ratio is about to 20-25% per annum.

I Q R A U N I V E R S I T Y

4

Page 5: Final Report on Surf Excel

Surf Excel

Surf Excel is the global name for a portfolio of value 'Omo' brands around the world. These brands are challenging conventions in the laundry category. For example, Surf Excel challenges the assumption of 'you get what you pay for' by providing products that provide great results at a low price

Launched sometime in 1960, Surf Excel was the first in the Pakistan detergent powder market. Over the years, Surf Excel has anticipated the changing washing needs of the Pakistan homemaker and constantly upgraded itself.

Surf Excel is Pakistan's largest selling compact detergent powder, it promises to tackle the toughest stains without damaging the colour of the fabric. This is because only Surf Excel has smart sensors that can differentiate stains from colours. Now consumers don't have to worry about tackling the really tough stains, especially on coloured clothes anymore. ‘Surf Excel Hai Na!’

Surf excel with active oxygen is formulated to remove a range of stains such as chocolate, ink, egg yolk, blood, turmeric and coffee. It gives clothes a complete cleaning while caring for the fabric. It is recommended by Singer (Manufacturer of Electronic appliances) for use in top loading washing machines.

The green speckles penetrate deep into the fabric to help remove tough stains. The blue speckles give shine to whites and brightness to coloured clothes.

Its refreshing fragrance keeps the fabric smelling fresh long after they have been washed. It is being recommended by leading washing machine and apparel manufacturers around the world.

Those preferring the modern and convenient way to wash can rely on Surf Excel Liquid. The liquid form penetrates deep, allowing great wash results. For really tough stains, consumer can apply the liquid directly on the body of stain and tough stains being tackled with ease.

I Q R A U N I V E R S I T Y

5

Page 6: Final Report on Surf Excel

Branding:Consumer loyalty is fast becoming a disappearing phenomenon with an increasing

demand for brand variety

In an increasingly borderless world, consumers are getting exposed to both information and choices overload, making them increasingly confused about brands, Surf Excel branding strategy based on corporate branding strategy, where the product of a company has its own name without any company name added, the product belief in ‘complete cleaning and care’.

The ‘Brand image of Surf Excel ‘with reference to the other products in term of percentage is:

Surf Excel - 49%

Ariel - 31%

Brite - 15%

Express - 5%

Surf was losing its identity on its own, ‘People ask for Ariel Surf, Brite Surf or Wheel Surf.’ Or even Surf Excel.

Surf has become a very generic name over the years. There was thus a fear that customers would switch over to some other competing brand, unknowingly, even without paying attention to the brand of the product. The movement is being seen as an attempt to give a more specific and clear identity to the established brand. After more than 40 years, the brand will dissolve into a new identity — Surf Excel. They migrated from Surf to Surf Excel, as Surf has become generic and many people today refer to any detergent as Surf. Besides, they feel that this brand has the chance of attracting new users under the Surf Excel name

From time to time they changed their brand names as under

Surf UltraSurf MicroSurf Powerand now Surf Excel

I Q R A U N I V E R S I T Y

6

Page 7: Final Report on Surf Excel

TARGET Market & Segmentation:

Mainly housewives but the things have to be seen in context. Pakistan’s middle income group comprises about 35 million consumers. They have a combined spending power of Poland. But Surf excel is not just targeting the middle income category. With the broadest socio-economic footprint amongst consumer goods competitors, Surf excel is also looking at lower income market as well as higher income bracket with different set of products.

That was the income bracket but if we analyze the commercial aired on tv or radio or via print media we will notice that most of the communication is done by the help of children through tag line Dirt is Good. The philosophy behind this is the children are the best influencers for the deciders. The children with this eyes catching phrase try to influence the decision for their parents who are the deciders.

Market segments are group of customers having similar needs / wants and preferences. It enables the organization to more closely match it marketing mix with the customers of same needs or demands.

Consumers can be grouped and served in various ways based on geographic, demographic, psychographic and behavioural basis.

Ideally every consumer is a different market segment, but in order to maintain the balance between mass production and focused on individualism Surf Excel divides the market on the basis of income group, For each identified segment they market the product in various sizes,

Surf Excel is the Market leader in the laundry detergent market; it caters all the segment of the society by offering different sized of Stock Keeping Units - SKU(s) segmentation based on different family sizes and the income groups.

The reason for those SKU(s) is to pass maximum alternatives to the different segments based on various economic classes and segments, Company also launched a 15 gms packing in order to penetrate deeply in the less income group whose income may less than 6,000 Rs., their SKU(s) are:

I Q R A U N I V E R S I T Y

7

Page 8: Final Report on Surf Excel

Segment Packing Price (Rs.)

Higher 2Kg 4001 Kg 190

Middle700 gms 155400 gms 85100 gms 55

Lower35 gms 2515 gms 10

Those SKU(s) allow Surf Excel to deeply penetrate in the market by covering all possible washing powder consumers, based on income group. It also enjoys the market share of around 38% among the total branded laundry detergents in Pakistan.

35 and 15 gms SKU(s) are also called hanging SKU(s), it targets in lower class of society areas, like Orangi Town, Sohrab Goth, Shair Shah. Company gives special focus on the availability and visibility of these particular two SKU(s) (35 & 15 gms) in all shops of those low-line areas.

The purpose of focussing on these SKU(s) is to cater the demand of the consumers as per their low purchasing power and capacity to buy the well known brand and to generate more and more trials among the consumers to make them brand loyal. That is why the company calls these small SKU(s) a trial generation SKU(s).

I Q R A U N I V E R S I T Y

8

Page 9: Final Report on Surf Excel

PRODUCT

Surf excel believes that stains ae good. This is because when children go out and play and get dirty, they don’t just collect stains. They experience life, make friends, share with each other and learn from each other. last 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’s play; the idea of learning through play, the obstacles towards play, the impact of not enough play for our children. As a socially responsible company and brand, it believes that they can create a platform on which they can take this message forward to showcase how playing helps children mentally and physically. the

Regional brand team meets and decides where to launch which product. Market insights should match with local insights. Surf Excel mainly unilever has a new phenomena. It consults all 3 trade models while designing packaging for surf excel.

PRICE

Surf Excel is available in different sizes and quantities in the market for different prices. Its competitors in upper class segments are Ariel which is product of P&G and brite total. The company has offered 1kg of surf excel in the market for 190 Rs. Besides that it is also available in market in sachet and half kg. It is priced for every consumer according to his or her financial status.

In 2007-08 unilever adopted one of the price adjustment strategies which have discount and allowance pricing as they offered. Through this strategy promotional pricing strategy also came in progress as their product was promoted through it sales increasing rapidly. But as its competitors also reacted for this change through customizing their offerings and price cuts surf excel was finally focused towards price increases.

Several other offers have also been introduced by ariel and brite in the market using promotional, discounts and psychological pricing strategies and for that surf excel have also responded efficiently through its strategies.

DISTRIBUTION PRICING STRATEGY

Unilever---->Distributor---->GT/LMTUnilever-->IMT through annual pricing plan

For case 1 List price Rs 175Add Distributor price (5%) Rs 182.5

Add trade price (5%) Rs 189

I Q R A U N I V E R S I T Y

9

Page 10: Final Report on Surf Excel

Add retail price (10%) Rs 210

For case 2List price Rs 190Trade price (10.25%) Rs 210

Surf excels also launches temporary price reduction (TPR) such as 0.25/unit for a week or for a month. They also give bonus such as 25 cartons----.5/case

PROMOTION

Sales force in Surf Excel is divided into three types: General Trade (general stores, Kiryana stores, Medical and General stores), Local modern trade ( super stores such as Aghaz, naheed, D-mart) and international modern trade ( Large house such as makro and metro).

Merchandising drives: It depends on channel the team is choosing to communicate its product (surf excel). They may ask the retailer to have at least 50 pieces of surf in their shelves along with POS materials ( poster banner shelves)

Outdoor Media Agency is appointed for the advertising campaigns via billboard and signboards. These OMA classify different regions under Strata, ranging from 1 to 6.Strata 1 includes cities like Karachi and Lahore, Strata2 includes cities with comparatively less density and so on. They may select sites as per the following example:

Strata 1 would have 60% advertising sitesStrata 2 would have 40% advertising sitesStrata 3 would have 20% advertising sitesStrata 4 nil

They may book the site either for 30, 60, or 90 days depending upon the nature of the product, budget of the campaign and rent of site selected. The most effective advertising site in Pakistan is Sharah-e-Faisal. The effective billboard which is displayed on the left of the driver and is at a height of 40 to 50 feet with an exception of flyovers, bridges and high altitude road.

The plus point of the marketing strategy of surf excel is that when all other brands were campaigning against stains and how dirt is bad for clothes, surf excel came up with tagline Dirt is Good.

I Q R A U N I V E R S I T Y

10

Page 11: Final Report on Surf Excel

PLACE

Mind share is the Media Buying House for unilever in Pakistan. The airtime is purchased 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, mind. Frequency of target market is also analyzed. In electronic media, especially Television PTV and ATV has the biggest country viewership. Whereas in Private sector Hum tv and ARY are the biggest tv production and broadcasting house. The selection of print and electronic media depends on the nature of product and marketing strategies. The ration is divided for print and electronic Media in the beginning of the compaign. As on Hum tv top brands advertised in the given ration

Moreover retailing consumer product is unilever’s bread and butter. The company has the biggest retail in the country with the company servicing 500,00 outlets of which 50% are covered direct by the company distributors and the balance through wholesalers. For company the main business is done by General trade as compared to IMT or LMT, therefore different incentives and preferences are given to general retailers wholesalers and distributors.

I Q R A U N I V E R S I T Y

No Brand Time share%

1 Sunsilk shampoo 5.02 Pepsi 3.73 Walls 3.44 Pel product 3.05 Clear shampoo 2.96 Zong 2.87 Surf excel 2.78 Brooke Bond supreme 2.29 Peak freans biscuit 2.110 Knorr 2.011 Hilal pan pasand 2.0

11

Page 12: Final Report on Surf Excel

BCG MATRIX:

A business unit that has large market share in a fast growing industry, generates cash, but the market share is growing rapidly requires heavy investments to maintain its lead. If successful, a star will become a cash cow when the industry matures.

The soap industry is gradually decreasing and losing its market share, and consumers are switching from soaps / laundry bars to laundry detergents, because of ease of use and attractive fragrance.

Under the BCG Matrix, Surf Excel lies in the Star category, due to the fact that its market share is increasing and the market size is also increasing, and it has fewer competitors, and it needs heavy advertisement to maintain its sales.

I Q R A U N I V E R S I T Y

12

Page 13: Final Report on Surf Excel

MARKETING & PRICING STRATEGY;

Marketing strategy is much proactive. As far as the external environment is concerned, they spend heavy amount on advertisement media. From the whole advertisement expense, 80 percent of share goes to electronic media, and the remaining 20 percent goes to print media.

Due to premium brand, they need to have heavy advertisement on electronic media, and advertisement strategies based on consumer-pull.

In most of its advertisements, Surf Excel looks connected to famous personalities, such as recently they launched an ad featuring famous Pakistan Cricketer Shoaib Akhtar.

Surf Excel also believes in activities that gives a feel of family concept among the consumers, such as the recently organised activity ‘paint masti’, organized among children along with their parents.

1 KG 210

400G 115

100G 55

15G 10

Its target upper-class of consumer and market and its segmentation if or high and potential markets. It is a product of unilever. It is available in different sizes and quantities in the market for different prices. Its competitor in upper class segment are Ariel which is product of P&G and brite total which is product of colgate Palmolive.

I Q R A U N I V E R S I T Y

13

Page 14: Final Report on Surf Excel

Its market oriented statement is DAAG NHN TO SEEKHA NHN. The company has offered IKg of SURF EXCEL in the market for the price of 1900. Besides it is also available in the market in sachet pricing from 10 rupees and half kg for about 115 Rs. It is quality oriented product providing value for the customer.

In 2009 unilever adopted one of the price adjustment strategies which was discount and allowing pricing as they offered. Through this strategy promotional pricing strategy also came in progress as their product was promoted through it and the sales increased rapidly. But as its competitor also reacted for this change through customizing their offering and prices cut SURF EXCEL finally focused towards price increases. Beside the surf excel pricing strategy have also been to provide value and recently company improvised heir strategy as they focused towards more promotional through compaign. Beside that the company also implemented product line pricing strategy as their offerings are in different quantities along with different prices in the market.

Several other offers have also been introduced in the market by ariel and brite total using promotional discount and psychological pricing strategies and for that surf excel has also responded efficiently through strategies.

POSITIONING;

Surf Excel positions a brand by saying ‘Complete Cleaning and care’. This positioning does not only claim that the laundry detergent Surf Excel is a stain remover but it also claims that it is gentle on the fabric texture and colour, meaning it is hard for stains by removing them instantly, and soft for the fabric material by increasing its life.

Surf Excel is one of the first detergents in the laundry industry, which not only positions itself as a stain remover but also builds an image for the care of fabrics by increasing the life of the fabric.

Most of the other laundry detergents just focused only on stain removing and does not target properly for the care of fabrics but Surf Excel contains ‘Smart Stain Sensor’ that direct active cleaning power to where it is needed most, and it does not only remove stains, but it also gives fragrance and increases the life of fabrics.

So Surf Excel positions its brand as more consumer focused and gives them a thorough understanding of the product. From the positioning point of view, Surf Excel gives a feeling of family among the consumers as well as.

I Q R A U N I V E R S I T Y

14

Page 15: Final Report on Surf Excel

Companies like Gul Ahmed and SANYO also recommends Surf Excel which makes its brand name and image makes stronger.

SALES PROMOTION & ADVERTISEMENT:

The brand advertisement plan is based on an annual basis, which is made on the basis of assumptions and competitors’ moves. These plans are discussed and reviewed every month and modifications / changes are made if required. If any change is required than it needs to be approved from the Directors.

They divide the advertisement budget into two parts, first part is focused on theme advertisement, and other focused on promotional activities.

As a premium brand Surf Excel needs to have heavy advertisement on television. Other media also used keeping in view the target consumers.

The reason for heavy advertisement on Television is because TV is the major influencer media, so major share of the advertisement goes to TV.

For Promotion purposes, they give

Trade offersFor trade offers, they offer 36 Rs. Discount per carton etc.

Sales Force PromotionFor distribution sales force, they give 1,000 Rs. to the District sales representatives (if they achieve their targets).

Consumer PromotionFor consumers they offer promotions from time to time by providing offers such as 25% Extra quantity, 26 Rs. off, they also some times include sachet of the other products in order to generate the trials of different Unilever brand SKU(s) through the strength of Surf Excel’ large consumer base.

PACKAGING AND LABELING:

Surf Excel has recently changed its colour scheme from dark colours to light and smooth colour combinations.

The reason of this colour combination is to attract consumers with sophisticated light colours and to differentiate between the old stocks which had different fragrance. The new fragrance used is different and pleasant.

I Q R A U N I V E R S I T Y

15

Page 16: Final Report on Surf Excel

Surf Excel has also changed the written material on the back side of their package. They have introduced child stories on the back of the packing material to attract families.

MAJOR COMPETITOR:

Market share plays a prominent role in business research and standing in the market. Although Surf Excel is the leading brand, it also faces competition.

Major competitors for Surf Excel are:

Ariel BriteBonus and Express

Ariel

Procter and Gamble market nearly 300 brands - including Pampers, Tide, Ariel, Always, Whisper, Pantene, Bounty. In July 1997, they launched Ariel in Pakistan based on a sophisticated and advanced formula. Its breakthrough formula was warmly welcomed by the Pakistani consumers and in a short time span it steals a significant amount of market share from Surf Excel.

New Ariel delivers against one of the key Pakistani consumer needs: a detergent that can give spotless cleaning to both coloured and white clothes. This is because new Ariel contains a unique double action system, which gets fully dissolved unlike bar soap.

Brite

Colgate Palmolive - backed by Lackson Group of Industries, entered into the laundry detergent market by launching a product with a name Brite in 1980. Although it was unable to capture the significant market share of Surf Excel, but is one of its main competitors. Brite also changes its packing from poly bags to suit the needs of consumers.

Bonus and Express

Bonus and Express, both products of Colgate Palmolive - backed by Lackson Group of Industries, are a few of the oldest laundry detergents in Pakistan and enjoy a reasonable amount of share in laundry detergents market. Because of the low price factor, they attract the lower segment of the

I Q R A U N I V E R S I T Y

16

Page 17: Final Report on Surf Excel

market. But due to inferior quality and less fragrance, they are unable to attract huge market.

Market Share

In term of market share Unilever Surf Excel enjoys the maximum; graphically it can be

represented as:

Surf Excel - 38%

Ariel - 28%

Bonus - 16%

Brite - 11%

Express - 7%

I Q R A U N I V E R S I T Y

17

Page 18: Final Report on Surf Excel

LOYALTY PYRAMID:

The company has always taken care of its committed customers by offering them the best stain removing quality at a reasonable price. This product also provides customers with different consumer promotions, like ‘paint masti’ and other events.

Due to all these activities and other consumer promotion factors, consumers are emotionally attached with this brand.

In the loyalty pyramid, most of the customers come under the category of committed buyer, and they argue if someone asks them to change the brand.

I Q R A U N I V E R S I T Y

Brand Friend

Satisfied Buyer (Switching cost)

SATISFIED OR HABITUAL BUYER

Switcher / Price Sensitive

Committed

Satisfied / Habitual Buyer (No Reason for change)

18

Page 19: Final Report on Surf Excel

PRODUCT LIFE CYCLE:

Surf Excel has regained its market share, and the number of consumers is increasing day by day. It is able to do that due to the fact that it has the best stain removing quality and gives a pleasant fragrance after washing which captures the heart of consumers.

After seeing the purchasing power of different segments in the society and keeping an eagle eye on the competitor’s move in the market, they cut down their prices in order to facilitate the consumers and to maximize its use and in the same way to generate the trials even in the lower classes of the society.

The soap industry is gradually decreasing day by day, and consumers are switching from soaps to laundry detergents, because of ease of use and attractive fragrance. Surf Excel is into the growth stage, the market size and the relative market share is increasing day by day.

I Q R A U N I V E R S I T Y

Product Life Cycle

Growth

Decline Due to Ariel (1997-2000)

Introductory2001

2002-2009

19

Page 20: Final Report on Surf Excel

CHANNEL AND CUSTOMER DEPARTMENT (C & CD):

In C & CD, first comes the Director, under that Director comes a General Sales manager, this General Sales manager leads five Regional Managers in the country, Regional Manager of Karachi leads five Area Sales Managers (ASM), and each Area Sales Manager has eight Territory Sales Officers (TSO).

This department is responsible for the sales target of the entire Pakistan, basically targets are given by they region (Singapore) and than the C & CD department distributes the targets accordingly to the contribution of each different region in Pakistan.

I Q R A U N I V E R S I T Y

C & CD Director(Ali-Us-Sajjad)

General Sales Manager

(Liaquat Qadri)

Regional Manager(Karachi)

Regional Manager

Regional

ManagerRegional Manager

Regional Manager

5 ASMEach ASM has 8 TSO’s

20

Page 21: Final Report on Surf Excel

Distribution Channel and Supply Chain Management:

Unilever has an Intensive dealership network of 450 distributors all over the Pakistan, Unilever also prohibits distributors from carrying competitive brand of competitors. For distribution it supports intensive distribution policy which suggests targeting the product through each and every outlet.

In Karachi itself there are 7 distributors for all its products, those 7 distributors distribute the product all over the 17,500 shops twice a week, form those 17,500 shops there are 2,000 whole-sellers, who distribute the supply further to the other 7,000 shops.

Apex – Federal B Area, Gulshan, Gulistan – E – Johar.

Gizri - Defence, Soldier Bazar, Pakistan Chowk, Saddar, Bahadurabad, and Tariq Road.

Irfan Traders - North Nazimabad and Buffer Zone.

Al-Hamza - Orangi town.

Saya - Juria Bazar.

Creative - Shah Faisal Colony, and Malir.

Mehtab - Landhi and Korangi.

I Q R A U N I V E R S I T Y

21

UnileverDistribution

Apex Marketing Services

Gizri Corporation

IrfanTraders

Al-Hamza Saya Creative Mehtab

Page 22: Final Report on Surf Excel

Market Distribution

General Trade Modern TradeOut of Home

MARKET DISTRIBUTION:

Unilever distributes Surf Excel in the market through the following channels:

General Trade

All classes of retail outlets, such as A, B, C, D, E and the whole-sellers are targeted by general trade, Normal trade discounts, offers and consumer promotions are given by the company and time to time merchandising competition are run.

Out of Home

The markets such as Hotels, restaurants, and Army CSD’s stores are covered by this distribution channel.

I Q R A U N I V E R S I T Y

22

Page 23: Final Report on Surf Excel

Modern Trade

In order to retain and maintain the customer base especially in the upper class, upper lower class, and upper middle class of the society. Modern trade focuses on self service stores. Special and trade offers and consumer promotions are run by the company along with the creative merchandising competition, these all activities are meant to capture the market, and maintain its customers and to increase brand loyalty.

I Q R A U N I V E R S I T Y

23

Page 24: Final Report on Surf Excel

Product/Market expansion Grid:

PMG is a portfolio-planning tool for identifying company growth opportunities through market penetration, market development, product development, or diversification.

The Product/Market expansion Grid

Present Product New Product

PresentMarkets

NewMarkets

If we analyze the Unilever’s product, Surf Excel brought the idea of Green n Red speckles that penetrate deep into the fabric to help remove tough stains and give shine and brightness to clothes.As it is a new innovation in detergent industry, so it is a New Product and comes under both the categories, the product development as it serves to its present market with an innovative product, also it falls in the category of diversification as this innovation attracts new customers too. Thus it brought new market for Unilever.

I Q R A U N I V E R S I T Y

24

DiversificationMarket

Development

MarketMarketPenetrationPenetration

Product Product DevelopmentDevelopment

Page 25: Final Report on Surf Excel

Customer Feedback Form

Customer Name: Ashfaq AhmedPlace of Purchase: Apex, Gulisatan-e-Johar

1) Are you a regular customer of Unilever’s products?Ans: Yes

2) How do you attracted to this product?Ans: Advertising on television attracts me and as I have faith on Unilever’s products, I decided to buy it.

3) Why do you buy Surf Excel?Ans: I have used it and I’m satisfied with its result.

4) Do you buy Surf Excel for the first time or you regularly buy it?Ans: It’s not for the first time, I always buy it.

5) How many times in a month do you Buy Surf Excel?Ans: 2 to 3 times.

6) Which pack do you usually buy?Ans: 400 grams.

7) What is its specialty?Ans: It washes cloths very neatly regardless of the matter that whether it’s a colored cloth or it’s white. It gives shine to clothes and didn’t damage the fabric. It also gives good fragrance to cloths.

8) Suppose, Surf Excel is not available on the shop where you usually purchase your grocery and you haven’t any emergency need of it, do you buy any other detergent or wait for it?

Ans: I will wait.

9) Do you need any advancement in this product?Ans: No, I think it is sufficiently fulfilling my requirements.

10) Do you ever suggest anyone to buy Surf Excel?Ans: No, not yet.

I Q R A U N I V E R S I T Y

25

Page 26: Final Report on Surf Excel

RECOMMENDATION:

The possibilities are endless. For example shampoo penetration is one of the lowest in Asia. Similarly fifty percent of the population still uses laundry soap to wash their clothes which comprises mainly the low income group. Unilever 40% of the market for detergent powder (Surf Excel). A switch from soap to detergent powder will be hugely beneficial to surf excel and ultimately for unilever.

Profitable growth will be sustained through focused brand building innovation and superior management of supply chain to achieve cost competitiveness. This will enable the business to expand its share of consumer spending despite the increasing level of competition.

I Q R A U N I V E R S I T Y

26

Page 27: Final Report on Surf Excel

CONCLUSION:

Unilever has an efficient distribution structure for Surf Excel. In order to conclude all the things which we discussed or enumerated hereinabove, its looks more appropriate to do the product analysis on the basis of Strength, Weakness, Opportunities and threats [SWOT Analysis].

Strengths Since Surf Excel or just Surf has been in the market of Pakistan since 1960,

therefore it has an ultimate strong brand image.

Industry analysts said Surf Excel will now become the mother brand and a market leader.

Keeps the colour of fabrics as original and vibrant.

Surf excel is a better stain remover, with active oxygen formulation it removes a range of stains such as chocolate, ink, egg yolk, blood, turmeric and coffee.

Strong back-up of highly professional and trained Brand and Marketing Managers and a strong company name Unilever.

Extensive knowledge of market.

Weaknesses Surf had become a very generic name over the years. There was thus a fear that

customers would switch over to some other competing brand, unknowingly, even without paying attention to the brand of the product.

Unable to market rural area properly, which consist of around 70% of total.

Opportunities Still lots of consumers use open laundry detergent without any brand recognition,

so they can expand and enter the growing market.

The market for laundry detergents is growing day by day, and many consumers are switching from bar soaps to laundry detergents.

Increase number of working woman with changing life style, who needs comfort and easy to use laundry detergents.

I Q R A U N I V E R S I T Y

27

Page 28: Final Report on Surf Excel

Threats Ariel is its closest competitor. Due to policies of Ariel, Surf Excel also needs to

review its prices again and again.

Ariel takes quick decisions.

Low literacy rate in Pakistan, and agitation against foreign companies may become a threat and consumers may stop using the foreign products.

I Q R A U N I V E R S I T Y

28

Page 29: Final Report on Surf Excel

Bibliography

url:

www.thenews.com.pk/print1.asp?id=100155www.pakistaneconomist.com/issue2001/issue41/f&m5.htmwww.travel-culture.com/pakistan/media/hum_tv_advertisers.htmlwww.dirtisgood.com.pkwww.unileverpakistan.com.pk/outbrands/homecare/surfexcel.aspwww.unileverpakistan.com.pkourcompany/careers/insideunilever/howweworkwww.paksearcg.com/annual/annual00/lever00.htmwww.scrbid.com/doc/3701110/pricing-stratgey-and-programs?shutdown-docwww.unilever.com/images/ir_q108_annoucements_tcm13-12483.pdf+surfexcel+branding+strategy.doc&hl=en=clnkcd=5

Book;Principle of marketing (Philip kotler 12e)

I Q R A U N I V E R S I T Y

29