Group Members S SHAHNOOR HAHNOOR KKHAN HAN (2 (20) 0) TA ABASSUM BASSUM NAGOTHANEKAR NAGO NAGOT THANEKAR HANEKAR (34) (34) A ABDUL BDUL KK.SHAIKH .SHAIKH ((46) 46)
PRESENTED TO: PROF.. ARVIND INAMDAR PROF INA MDAR
H HUSSEIN USSEIN LLUKMANI UKMANI (2 (29) 9) TALHAH TALHAH PATEL PATEL ((40) 40) P PRASHANT RASHANT SSHEJWAL HEJWAL (5 (53) 3)
INTRODUCTION Surf Excel was launched in 1954 and has been present in the Indian Market for over last 50 years. It has managed to create a strong strong brand name over the the past 5 decades. With punch lines like µdhoondhte reh jaoge¶ and µjaise bhi daag ho,surf excel hai na¶ Surf excel has managed to create a place for itself in the Indian market. Bringing Bringing out innovative products at alternate alternate interval intervalss has been Surf Excel¶s Excel¶s strength.
PRODUCT RANGE
30 gms 125gms
1kg
2kg
PRICE SIZE
CHART
SURF EXCEL
SURF
SURF EXCEL
QUICK WASH
EXCEL
AUTOMATIC
BLUE SACHET
Rs.2/
R s.2/-
-
200gm
s.23/R s.23/-
R s.20/-
-
500gm
s.56 R s.56
s.41 R s.41
s.80/R s.80/-
1kg
R s.109/-
-
s.155/R s.155/-
COMPETITORS
Nirma
P&G ( Tide,Arial)
Henkel India (Mir, (Mir, persil, porwall, vernel, vern el, purex)
Reckitt Benckiser ( Vanish)
Local Detergents (for e.g. National Soap Depot,etc.)
STRENGTHS Strong Strong Brand Brand Port Portfol folio io Innovat Innovation ion (Stron (Strong g R & D) Dist Distri ribut butio ion n Network CSR High High Quality Quality Manpo Manpower wer Good Will in the market market Abundant Financial Financial Resources Resources
WEAKNESSES
Pricing Pricing Strate Strategy gy Huge Inventory Inventory Stocks of Raw Materials Materials Highly Competitive Competitive Segment Segment Substi Substitut tutee Produc Products ts
OPPORTUNITIES Growing Growing demand demand for deter detergents gents Rura Rurall Mar Market ket Divers Diversifi ificat cation ion Increas Increasing ing Usage Usage Frequenc Frequency y Increas Increasing ing the the Brand Imag Imagee
THREATS Comp Compet etit itio ion n Loca Locall Produ Product ctss Enviro Environme nment nt Effec Effects ts Low Prof Profit it Mar Margin ginss Increase Increase in Prices Prices due to to rise in fuel fuel price
PORTERs
5 FORCES
BARGAINING POWER
OF CUSTOMERS
The Buyers of Surf Excel are divided in two groups g roups E ND USER Detergent Detergent is a low low involvement involvement
RET I ERS HU uses GTM (G (Go To
product with small fragmented
Market) to reach their retailers
customer base.
via Mahindra ogistics.
Weak and do not possess much much bargaining power. But, they possess the power of choice.
BARGAINING POWER
OF SUPPLIERS
The suppliers of Surf Excel can be broadly classified as : 1. Sodium Sodium Tri Phosp Phosphate hate Supplie Supplierr (STP (STPP) P) 2. Pack Packag agin ing g Pap Paper er Sup Suppl plie ier r 3. Manufa ufacturers Surf Excel purchases raw material, STPP from T Tata ata Chemicals Limited. HUL holds a 2.14% stake in TCL thus exerting some influence directly in the decision making process. Additionally TCL at present doesn¶t doesn ¶t seem likely to enter e nter the detergent market, thus risk of forward integration is mitigated.
Moreover there are other suppliers for STPP like Bond Impex Pvt. Ltd, Saral Chemicals, etc. thus HUL can have a supplier of choice. All raw materials and packaging materials are provided by HUL to Vashisti
Detergents
Limited,
for
which
VD L
is
given
conversion/pr conversion/proces ocessing sing charge. charge. Thus, we see that the suppliers of HUL do not possess much bargaining power and HUL doesn¶t have any potential threat from the suppliers.
THREAT OF SUBSTITUTE PRODUCTS Thre Threat at fr from om liqu liquiid dete deterrgent gentss and and det deterge ergent nt bar bars. Expert believes that liquid detergent give better washing quality than det deterg ergent powd owders becau cause liquid detergents are are better when hen it comes to reta retain inin ing g the the brig bright htne ness ss of the the clot clothe hes. s. Liquid detergents are used for specific type of clothes like woolen or delic delicat atee ones. ones. So if a liquid detergent comes out in market which can appeal to a large segment (with price and quality) for all types of clothes then it may give a serious ous comp ompetition to Surf urf Excel.
THREAT OF NEW ENTRANTS Detergent Market is an innovative market where many variations of det detergent ent powd owders exis xist and and many more ore can come ome.
Likewise a new product which can cater to other changing needs of cus customer can pos pose strong ong compet petition to Surf Excel cel.
INTENSITY OF COMPETITI ETITIVE VE RIVA RIVALRY Surf Excel faces intense intense competition competition from Ariel in Premium Market Market Segment. While While Surf Excel is preferred preferred in the the Northern and Eastern states, Ariel Ariel is preferred p referred in Western Western and Southern part of the country. country. Ariel is also available in in various variants variants and thereby gives gives intense competition to Surf Excel. 95% of Indian consumers consumers use use a combination combination of detergent detergent powder powder and detergent bar.Detergent bar.Detergent Bars occupy 43% of o f the total detergent markets. Nirma occupies 55-60% of rural market share whereas, Surf Excel has 10-15% of market share (rural).
POLITICAL
Surf Excel should keep an eye for any changes the Government might make to its tax policies. For For examp example le,, if the Gover vernment intr ntroduc oducees new policy, then Surf urf Excel might ght have to increase its prices which might have a negative impact on sales. Also, the chemicals used for producing the product may harm the envi nvironme nment and and the hum human body body.. In future, if the Gover overnm nmeent intr introd oduc uces es any any manda andato tory ry legi legisl slat atio ion n agai agains nstt such such chem chemiicals cals,, it may prove to be a huge hurdle for Surf Excel.
ECONOMIC In the current economic slowdown, people tend to spend cons conser erva vati tive vely ly.. In such such a situ situat atio ion, n, rela relati tive vely ly expe expens nsiv ivee prod produc ucts ts like Surf Excel may not be preferred despite its high quality. Therefore, Surf Excel should keep this in mind while evaluating its pri prici cing ng and and sale saless prom promot otio ion n stra strate tegi gies es.. Surf Excel should focus on imports and exports. By doing so, it can capi apitali alize on the low cost ost product ductiion opp opport ortuni unity by import orting as well as enter new new markets ets by expo exporrting its produc ducts.
SOCIAL As the lifest estyle of the cons onsumer umerss cha change nge, cus customer expec xpecttations also keep keep chang changin ing. g. Surf Excel should concentrate on the dynamic needs of the customer and com come up with var variants that sati atisfy their eir nee needs. ds. The cust ustomer tastes and preference nces chang ange with the changi anging ng fash ashions as well as chan change gess in the the weat weathe herr. Keeping this in mind, Surf Excel should keep modifying its product to suit the change in the material being used.
TECHNOLOGICAL One of the strengths of Surf Excel has been the innovations it brings about in its products from time to time. In order to improve the quality of its product and to lower its cost of pro produc duction, Surf Excel can focus ocus on further innova novattions ons and technological technological development. development. It should focus on Research and Development and come up with new technologies to make the Surf Excel brand even more envi enviro ronm nmen entt fr frie iend ndly ly,, ther thereb eby y impr improv ovin ing g its its imag image. e.
4 Ps
of Marketing
PRODUCT
In product some elements are involved which are Variety, Quality, Size, Features, Brand Name, Packaging and Services. Variety
Surf Excel is at present situation available in two varieties · Surf Excel · Surf Excel Matic Quality Surf has continued to change according to consumer needs. Since the brand has undergone un dergone numerous product quality improvements to offer best cleaning results.
PRICE
Surf Excel is using the following methods for price setting. Pri Price ce to Dist Distri ribu buto tors rs The company provides products to the distributors for the prices decided keeping in view the cost, the target revenue and competitors pri price ces. s. All All dist distri ribu buto tors rs are are bein being g equa equall lly y trea treate ted. d. Pri Price cess Charg harged ed by Dist Distri ribu buttors ors to Re Reta tail iler erss Unilever gives margin of certain percentage to distributors so in this way prices to be charg arged by dis distributor utorss to retailers are are fixed. ed. Pri Price cess Charg harged ed by Re Reta tail iler erss to Ulti Ultima matte Consu onsume mers rs Company influences prices charged by retailers. So retailers are boun bound d to char harge fix pri price to ultimate cons onsumer.
PLACE Coverage
Surf Excel is one of the top brands bra nds of HUL, and hence it is available right from the big retail chains to the local panwallah shop on the street. Shelf Spacing
Surf Excel gets prominent shelf space at any retail outlet, due to its strong brand image in the market. Inventory
As Surf Excel is a convenient conve nient product, huge amounts of inventories are to be maintained. Through which it will be possible to facilitate the market on time.
PROMOTION
Regular education education and awareness-bui awareness-building lding campai campaigns gns Stock availabi availability lity in relevant relevant outlets outlets Moreover Moreover, as consumers become become more aware it is important important to build credibility of an offering like Surf Excel Matic Using TV TV advertising advertising and radio as well well as news papers papers and billboards Regular advertising advertising will will be used which will transcend transcend any communication barriers
DISTRIBUTION STRUCTURE
Detergent Industry National Sales Distributor Regional Sales Distributor
Common Distributors
Wholesalers Retailers Retailers Final Consumer
Macro Outlets
OSITIONING ONING POSITI Journey
STRATEGY STRA TEGY
of surf excel:
1. 1996: Surf excel was launched in 1996 offering µcomplete cleaning and care¶ . This was communicate communicated d through the campaign campaign µ Jaisa bhi daag ho, Surf Surf Excel Excel hai Na¶. This type type of positioning positioning is based on the concept concept of Functional Functional positioning (solve problem).
2. 2003: In 2003 Surf excel was positioned to address ad dress a key concern of the country: shortage of water. The brand was tied up with eminent celebrity Shabana Azmi to propagate the concept conc ept of saving two buckets of water along with getting stain free cleaning. This campaigning was based on the combination of two positioning concepts, namely, symbolic positioning (social meaningfulness) and functional positioning (Provide benefits to customers). 3. 2003: Later on it it was re- launched launched as surf excel excel blue with with a tagline µJayega nahin Jayega¶. This variant would remove tough stains without fading color.
4. 2005: In 2005 surf excel came up with the concept of vice is nice by usi using the the tag tagli line ne µAga µAgarr daag daag lagn lagnee se kuch kuch acha acha hota hota hai hai to daag daag ache hain¶. To To hold their market share surf excel adopt this philosophy to propagate the concept that if a child learns something and gets stained in the process then those stains are good. To To make µDirt is good¶ goo d¶ a meaningful campaign stains are linked with learning of values. This type of positioning is based on the concept of Experiential Experien tial positioning (provide cognitive stimulation).
SUGGESTIONS The pricing strategy of Surf Excel is such that it projects p rojects itself as a premium brand and thus is priced at a price on the higher side of the market. market. Thus Thus it is losing some some of its market market share to the the low cost competitive products like Tide Tide from P&G which is is actively involved in promoting its product. Hence, HUL should revise their pricing strategy. HUL should also look
to get a surf variant in to f ig ight Tide on the
price f ront. ront. HUL has faced very high inventory costs and should try to reduce them by streamlini ning ng it itss distribution network. The zero inventory initiative by HUL is in this direction but is still in its nascent stages and needs to be implemented across the country to become cost effective.
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