Surf Presen

8/8/2019 Surf Presen

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HUL AND P&G PRICE WARS


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HISTORY

In 1931, Unilever set up its first Indian subsidiary, HindustanVanaspati Manufacturing Company, followed by LeverBrothers India Limited (1933) and United Traders Limited(1935). These three companies merged to form HUL in

November 1956.

HUL offered 10% of its equity to the Indian public, being thefirst among the foreign subsidiaries to do so. Unilever now

holds 52.10% equity in the company. The rest of theshareholding is distributed among about 360,675 individualshareholders and financial institutions.


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In one of the most visible and talked about events of India'scorporate history, the erstwhile Tata Oil Mills Company

(TOMCO) merged with HUL, effective from April 1, 1993.In 1996, HUL and yet another Tata company, Lakme Limited,

formed a 50:50 joint venture, Subsequently in 1998, LakmeLimited sold its brands to HUL and divested its 50% stake in

the joint venture to the company.HUL formed a 50:50 joint venture with the US-based Kimberly

Clark Corporation in 1994,In January 2000, in a historic step, the government decided to

award 74 per cent equity in Modern Foods to HUL, therebybeginning the divestment of government equity in public sectorundertakings (PSU) to private sector partners.


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&RODUCT Mix PRODUCT LINES&RODUCT Mix PRODUCT LINES

dustan Unilever Ltd

ersonal wash

laundrykin careair care

Oralcare

Deodrantsolor cosmetics

Ayurvedic

, ,Lux lifebuoy dove, ,Pears rexona breeze

Surf excel Wheelsunlight

&Fair lovely Pondsvaseline

SunsilkClinic

Pepsodentcloseup

Axerexona

lakme

ayush


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SWOTSWOTANALYSIS OF HUL:ANALYSIS OF HUL:

STRENGHTS:

Unmatched distribution network- a must to cater rural

market. Strong Brand Portfolio, Price, Quantity & Variety.

Innovative Aspects.

Solid Base of the company (3400 distributors,16 million

Outlets over the world, 700 million customer base).


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Highly skilled human resource.

Strong R&D Team.

Corporate Social Responsibility. :EAKNESS

Changing Consumer Tastes & Preferences.Low Export Levels.

High Cost Of Production.

Me-too products which illegally mimic the labels and brandsof the established brands.


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Competitive Products :PPORTUNITIESChanging LifestylesRising income levels

Untapped rural market.

Large domestic market population over 1 billion .Export potential and tax & duty benefits for setting exports

units.


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:HREATS

Entry of new companies and brands in the FMCG sector.

Increasing cost of raw materials.

Slowdown in an economy can have an impact on the FMCG

sector.

Duplication of brands.

Tax and regulatory implications.

Removal of import restrictions resulting in replacing ofdomestic brands.

Store-branded or private-label offerings.


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BCG MATRIXBCG MATRIX

STARS:

Hair care, skin care,premium soaps &water (pure it)

QUESTION MARKS:

Processed food

CASH COWS:

Mass soaps, beverages,oral care, laundry,

colour cosmetics

DOGS:

Sea food exports

RKET GROWTH

HIGH

LOW

MARKET SHARE

HIGH LOW


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Existing Products New Products

Markets

Markets

ANSOFF MATRIXANSOFF MATRIX


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JOURNEY OF SURF EXCEL

HUL introduced Surf in 1959, first detergent powder in thecountry.

The promise of superlative whiteness- connected with the

consumers and helped to establish the brand.

It was the first detergent brand on TV.

The 1970 saw the launch of nirma, and surf had tocommunicate the idea of price value equation to itsconsumers.


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In 1990 mid priced detergent Ariel and Surf ultra were introduced.

Concentrates had taken over the top performance image leadership

amongst detergent powders.

In1996 surf was re-launched as surf excel, its positioning claimingto clean a wide variety of stains.

In 2003 surf excel quick wash was introduced to address thecomplaint of shortage of water

In 2005 surf excel matic was introduced to address the need of fast

growing washing machine consumer.

In 2006 detergent bar was introduced to its portfolio.


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PRODUCT LIFE CYCLE OFSURF EXCEL:

urf excel


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INTRODUCTION:

qSurf was introduced in the year 1954.

qIn 1970 surf had to face competition from Nirma,for which they launched the Lalita- jicampaign, which was quiet successful.

qIt was the first ever detergent brand to advertise ontelevision.

qThe era of Lalita Ji ensured that Surf representedthe woman of that epoch, which in turn managedto instill confidence among consumers.


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qIn1990 Ariel (P&G) was introduced as a competition tosurf ultra, to which surf responded by introducing surf

ultra, mid price powder segments. Campaign daagdhundte reh jaaoge.

qIn due course HUL kept improving and innovating surfby adding various features to it.

qIn 1996 surf was re-launched as surf excel and positionedas jaise bhi daaho surf excel hai na


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GROWTH:

Surf has entered the growth stage by having increase in profitsby approx 25%.

Surf excels recent campaign of daag ache hain has caught

the attention of the consumers and also led to increase insales.

At this stage surf excel competes with brands like Ariel,Henko, Tide, Nirma etc.

Here they follow the concept of aggressive advertisement andselling.


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In their advertisement they try to differentiate

their products with that of the competitors.They keep upgrading their product so as to achieve

higher market share.


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PORTERS FIVE FORCESPORTERS FIVE FORCES


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THREAT OF NEW ENTRANTS:

Low threat of new entrants.

Entry of ITC ltd and P&G products.

Launch of Nirma.

Entry of Henko detergent.


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THREAT OF SUBSTITUTES:

.Threat of substitutes is high


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RIVALRY AMONG

COMPETITORS:

High rivalry among the competitors.

Low profitability.

Competition with respect to price, quality and

innovation.

High advertising cost involved in differentiating theproducts from that of the competitors.


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BARGAINING POWER OF

BUYERS:

High bargaining power

High switching cost

Price sensitivity


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BARGAINING POWER OFSUPPLIERS:

High bargaining power of.suppliers


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SEGMENTATION,TARGETING,POSITIONONG:

:TARGET MARKETSurf excel s target market has always been the middle class of

.india since the 1950s

POSITIONING Surf excel is positioned as the stain remover Surf Excelhain na


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MARKETING MIX

PRODUCT

PRICE

PLACE

PROMOTION


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PRODUCT

SURF EXCEL MATIC

SURF EXCEL QUICKWASH

SURF EXCEL BLUE

SURF EXCEL BAR

SURF EXCEL GENTLE WASH


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PRICE


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PROMOTION

TV Advertisements

Newspaper articles

Promotional offers

Features housewives.


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uy a Whirlpool proeries washing machine& et 1 year's supply

f Surf Excel Matic*etergent FREE

Offer valid until stocklasts* :Disclaimer One year's

detergent here implies 6

.kgs As per IMRB survey of2998 the average annualconsumption of Surf Excel

Matic is approximately 6kgs

URF EXCEL MATIC OFFER


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Get a 16 litre bucket with Surf Excelblue 3.3 kg pack. MRP: Rs.380/-**(inclusive of all taxes)

Get Surf Excel quick wash 1kg and Comfortfabric conditioner 200ml bottle in a combo pack.Surf Excel quick wash removes stains and

Comfort gives 7 days long freshness to yourclothes. Surf Excel quick wash 1 kg Rs. 146 +Comfort fabric conditioner 200ml Rs. 29 =Rs. 175 Pay Rs. 163*/- for the combo pack andsave Rs. 12/-*(inclusive of all taxes)

urf Excel Blue Bucket Pack

urf Excel Quick wash Freshness Combo Pack


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JOURNEY OF RINDETERGENT

Rin was launched in a bar form in a testmarket in 1969 and extendednationally in 1970.

In the late 1980s, Rin faced its first realcompetition with the launch of low-price discount detergent bars. Atprices 60% lower than Rin,

The advertising campaign 'Zara sa Rin'went on to become a 'white - off-whitecrossover' was developed.


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This route was hugely successful in establishing a superior brand image.in the consumer's mind

the entry of Rin Shakti powder a highly aspirational brand was now.available at a very affordable price Proof of performance in the

-communication was depicted in the form of a wash rewash test where the.brand claimed to remove dirt from clothes washed with ordinary bars

Since then a continuous programme of product innovation and improvement.has taken place on the brand

, .In 2008 the brand came up with the promise of Double Whiteness Rinadopted the" , "Tagline Duguni Safedi Duguni Chamak

, "This year Rin came with another advertisement with a new tagline"Chamakte Rahna

Rin has already started promoting its new found positioning theme duringthe Dance Premier League where the contestants are made to say the

.tagline


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RIN


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INTRODUCTION

Introduced in 1970.

initially, positioned as - 'Rin is not asoap, it is a totally new idea for

washing clothes'. The benefits clearlyoutlined that the bar hadconcentrated cleaning power hencewashed 50% more clothes.

The memorable baseline 'Whitenessstrikes with Rin' was introduced and astrong brand property - the mnemonicof the lightning flash was developed.


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,In the late 1980s Rin faced its first real competition with- . %the launch of low price discount detergent bars At prices 60

, .lower than Rin they were positioned as a low sog product

.The brand has finally found its right positioning statementChamakte Rahna

Thetagline has a strong connection with the brand promise and at

the same time helped the. .brand to ladder up The ad is also very nicely made

.


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GROWTH

Today Rin has three variants: Rin Supremebar, Rin Shakti bar and Rin powder. RinSupreme and Rin Shakti operate at twodistinctly different price points. While the

Rin Shakti proposition is superiorwhiteness vis--vis mass- market, the RinSupreme proposition is superiorperformance to give whites that look likenew.

Rin Supreme bar was launched in 2002 asthe No mud bar. While ordinary barshave up to 40% mud-like ingredients, NewRin Supreme is made with patented PureClean technology to keep clothes looking

white like new for longer. Like a trueleader Rin has been successful


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.Early 2004 saw the advent of a brand new Rin Shakti powder RinShakti paved the way with a brand new proposition of double

whiteness along with a powerful innovation of No mitti powder as it dissolved thoroughly in water as opposed to ordinary

- .powders which left behind a mud like residue The suffix .Shakti has now been dropped from the powder pack


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MATURITY

Maturity stage

Rin is facing its toughest competitionin the form of Tide from P&G.

2005 Amitabh Bachchan was ropedin as brand ambassador (model) forthe brand. The ads were trying to

reinforce the positioning of Rin asthe premium detergent soap.

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