Marketing & Competition Analysis

Introduction | History

Top Indian Players | Market Share

Marketing Objectives | Strategies

Segmentation | Growth Opportunities

Understanding Consumer Needs

Pricing | Marketing Strategy

Competitive Advantages | Promotion/AD Campaign Environmental Change and Innovation

Consumer Satisfaction and Research

Competitors : Ariel | Recommendation & Suggestions

Conclusion

Fabric Wash Market in India Total Market Size Rs. 8800 Crores Total Volume- 2.3 Million Tonnes + 98 percent Penetration in India CAGR -10 per cent

Consumption Pattern Increase 55 per cent Urban (14 percent users of Washing Machine)

45 per cent Rural

Major Players HUL Nirma Ghadi P&G

Source : Business Standard, 29-11-07

History of Hindustan Lever

1959 – HUL Introduced SURF.

1970 – Launch of Nirma Power. Brand Lalitajee launched.

1990 – Emergence of concentrate & Mid price segment powers.

Ad Campaign “ Daag Doonthe rah jaoge” was launched.

1996 – Surf Excel launched. Ad Campaign “ Jaise bhi Daag ho, Surf Excel hai na”

2003 – Surf Excel Quick wash launched “ Ad campaigns on Shortage of water across country”

2005 – Ad Campaign “ Daag Acche hai na “.

2006 – Rin – Supreme BAR. Ad campaign “ Good news, Bad news “

source : IMRB

Surf Excel Ariel

To continue market leadership 37.8% in Indian Market 

To increase market share7.7% P&G in Indian Market

Approaching New Markets Switch Consumers from Existing Brands in the present Market

Launching Product Extensions Product Innovation

Maintain Brand Loyalty Increase Brand Loyalty

8/7Rating

COMMON MARKETING OBJECTIVES

- Ensure top-of-the-mind recall- Increase Frequency of Usage- Launching Variants in the Washing Machine Category- R&D for new product innovations

SIZE ARIEL FRESH CLEAN ARIEL SPRING CLEAN

ARIEL FRONTO-MAT

Sachet Rs.2/- Rs.2/- -

200gm Rs.26/- Rs.26/- -

500gm Rs.55/- Rs.55/- Rs.80/-

1kg Rs.107/- Rs.107/- Rs.155/-

SIZE SURF EXCEL QUICK WASH

SURF EXCEL BLUE

SURF EXCEL AUTOMATIC

SACHET Rs.2/- Rs.2/- -

200gm Rs.23/- Rs.20/- -

500gm Rs.56 Rs.41 Rs.80/-

1kg Rs.109/- - Rs.155/-

Surf was launched in 1959.

A family brand with tough stain removal and caring image.

- International to Ultra to Excel

Surf Excel is available in 4 variants: Surf Excel Blue Surf Excel Quick Wash Surf Excel Automatic Surf Excel Detergent

Bar

Rating7/6

Ariel was introduced in India in 1991.

Ariel contains unique Fragrance in detergents with new technology based detergent

Ariel is available in 3 variants: Ariel Fresh CleanAriel Spring Clean Ariel Front-O-Mat

SKU’s – Stock Keeping Units

Sachet packs (Rs. 2) of Surf and Ariel are targeting mass market consumers, convenience and affordability

Targeting Upwardly Mobile group with increase in disposable incomes  

 

 

Surf Excel- Brand Consolidation Strategy

- Change from Rational Appeal to Emotional Appeal Marketing messages

Eg. Sasti cheez or achchi cheez me farak hota hai to Daag Dhoondthe Reh Jaaonge to Daag Acche Hain

Ariel

- Introduced Variants for consumers at lower prices

- New product offerings like Supersoaker Ariel

Rating7/6

SECOND PRICE WAR FIRST SLASH : P&G as new entrant goes with Trial and Shift

Consumer

- Ariel 20gm sachets (30% reduction) - Rs2

- Tide sachets (50% reduction) - Re1

Hindustan Lever Ltd (HLL) followed :

- Surf Excel sachet (50% reduction) - Rs1.50

SECOND SLASH : P& G cut prices on large packs, HLL followed

Rating7/5

source : India Infoline Report 2004

HLL – SURF EXCEL

• Largest and the second most profitable busin(42.6 % Input, 2004) hence stakes higher

Maintaining Brand Equity

• Rin Supreme price comparable to Surf Excel Blue

• Regional Players

 

P&G - ARIEL

• Marketed at 100% subsidiary

of P&G, USA hence can absorb losses

Target Market Fragmentation

• Tide v/s Ariel

Rating8/6

SURF EXCEL

• Strong R&D.

• Offers & Schemes.

• Strong Distribution Channel.

ARIEL

• Global brand presence.

• Less number of intermediaries in distribution channel.

STRENGTHS

WEAKNESSES

SURF EXCEL

• Expenses On Advertising.

ARIEL

• Less Offers & Schemes

OPPORTUNITIES FOR BOTH

THREATS TO BOTH

• Competition from organized and unorganized players.

• Increased level of price competition.

• Penetration in rural areas.

• Both Can Increase Their Frequency Of Usage.

• New Consumer Markets

Rating7/5

Rating7/5

Surf Excel Ariel

The Lalitajee Campaign Consumer Attitudes researched new technology and compact powder for washing machines Ariel Springclean with fresh fragrance

Surf Excel Automatic Testimonials by IFB

'Ariel - Whirlpool Superwash' - buy a Whirlpool Washing Machine for Rs.238/- in Equal Monthly Installments

Daag Acche Hain Variants in the market

Rating7/5

51/40

FinalRating

Surf - Experienced Player - Competitive Advantage with well laid distribution and retail

network - Innovative advertising approaches - Willingness to venture out with new variants

Ariel - Strong first mover advantage in the Pricing War - Entrenched firmly in minds on basis of superior cleaning quality

- Need to bring out new variants- focus on aggressive advertising important

Both need to venture out: - Explore Rural Markets - Invest in Research for Niche Products - Find New Consumer Categories - Fight Regional Players with a Customized Market Plan