Module 1

Marketing Term Report

Analysis of Surf Excel Washing Detergent

BY ANDILA SAEED ANUM SADIK RABIA ZOHRA FAROOQUI

Table of Contents
ANALYSIS OF SURF EXCEL WASHING POWDER ............................................................................................. 3 ABOUT THE COMPANY ................................................................................................................................. 3 ABOUT THE BRAND ...................................................................................................................................... 3 BRAND PHILOSOPHY: .................................................................................................................................... 3 MARKETING STRATEGY ................................................................................................................................ 4 Market Segmentation and Target Marketing ....................................................................................... 4 Marketing Positioning: .......................................................................................................................... 4 Differentiation....................................................................................................................................... 4

BCG Matrix: .................................................................................................................................................. 5 Marketing Mix .............................................................................................................................................. 6 Product ......................................................................................................................................................... 6 Price .............................................................................................................................................................. 6 Place:............................................................................................................................................................. 6 Promotion:.................................................................................................................................................... 7 Surf Excel Tools for School Campaign ........................................................................................................... 8 Marketing Environment..9 Competitors..9 Characteristics Affecting Consumer Behavior: ................................................................................... 10 Buying Decision Behavior........................................................................................................................... 11 Buyer Decision Process .............................................................................................................................. 11

MARKETING TERM REPORT

ANALYSIS OF SURF EXCEL WASHING POWDER
ABOUT THE COMPANY
Unilever Pakistan Limited (Unilever Pakistan) is one of the largest FMCG companies in Pakistan. The company principally engages in the manufacture and marketing of home and personal care products, ice creams, beverages and spreads. Unilever Pakistan is a subsidiary of Unilever Overseas Holdings Limited, the UK, whereas its ultimate parent company is Unilever PLC, the UK. It offers a broad range of cleaning, skin care, hair care and oral care products under the home and personal care products category. In the beverages category, the company provides tea, ice creams and margarine. The company markets its products under the brands Surf Excel, Lux, Lifebuoy, Fair & Lovely, Sunsilk, Clear, Lipton, Brooke Bond Supreme, Flora, and Blue Band. Unilever Pakistan operates through five regional offices, four wholly owned and six third party manufacturing sites across Pakistan. The company is headquartered in Karachi, Pakistan.

ABOUT THE BRAND

Surf Excel, launched in 1960, is one of the oldest detergent powders in Pakistan. Initially, the brand was positioned on the clean proposition of washes whitest. However, with the emergence of numerous local detergent manufacturers and the entry of other global brands, Surf Excel underwent various changes in its Brand Communication. This is in line with the global communication platform of Dirt Is Good, which is a communication strategy of Unilever for its premium detergent product. Today, Surf Excel leads the Premium Fabric Wash Category in Pakistan. Surf Excel products include Matic, a detergent powder designed specially for washing machines as it has a low lather formula. Quick Wash is a product that saves up to 2 buckets of water and Blue is used for Fabric and Colour Care.

BRAND PHILOSOPHY:
Surf Excel believes that stains are good. This is because when children go out and play and they get dirty, they don't just collect stains. They experience life, make friends, share with each other and learn from each other. This helps them get stronger and get ready for the world outside. 3

In 2005 & 2006 Surf launched Paint and Games Masti where children were invited to participate in various activities designed to communicate that Dirt is Good. This 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 childrens 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.

MARKETING STRATEGY
Market Segmentation and Target Marketing
Mainly housewives but the things have to be seen in context Pakistans middle income group comprises about 35million consumers. 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 the higher income bracket with different sets of products. That was the income bracket but if we analyze the commercials 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 tagline dirt is good. The philosophy behind this is the children are the best influencers for the deciders. The children with this eye catching phrase try to influence the decision of their parents (mainly mother) who are the deciders.

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 their product 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.

Differentiation
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 directs 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 is able to differentiate from its competitors through its added facilities of fragrance and increase life of fabric.

BCG Matrix:

Surf Excel is a Cash Cow of Unilever with a low growth stage. The Surf is still showing an increase in profits (approximately 25% this year). At growth if the sales are stagnant or not increasing company can relaunch or reposition its product to give a boost as it was previously done with Lifebuoy.

Marketing Mix Product

In product the elements which are involved are Variety, Quality and Brand Name.

Variety
Surf Excel is at present situation available in the following varieties Surf Excel Topical targeted the segment which are more conscious about fragrance Surf Excel Blue targeted those who care about their fabrics. Surf Excel Automatic has low leather formula use in only washing machines. Surf Excel Advance targeted the high class. Surf Excel Quick wash target people living in hilly regions.

Quality
Surf Excel's quality is very popular among the consumers as it is dominating the washing powders markets in Pakistan for four decades .Surf has continued to change according to consumer needs and 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 clothes but also it has created the relationship with customers as making grounds to promote their kids. Surf Excel is the brand that is targeting the peoples through believes and values. Therefore they define their product on the basis of some relating activities.

Price
Surf Excel is a premium product satisfying the needs of its consumers in Pakistan since the last four decades and therefore has a high price attached to it as it is a product of very high quality. The price is high because Surf Excel believes in zero defects. Prices are set by taking into consideration the size, type of product. The table shows the prices of different Surf Excel packages.

QUANTITY 25 grams 50 grams 115 grams 500 grams 1000 grams 2000 grams

PRICE IN RUPEES 5 10 20 115 210 405

Place:
On the basis of Surf Excel Unilever is focusing on all areas through which it is possible to cover different classes needs. That is why Surf Excel is easily available at general stores as well as 6

departmental stores, e.g. Imtiaz Store, Chase departmental store, Naheed Supermarket. Surf Excel is being position in different departmental store on the base of taking a specific area among other brands. Moreover, Unilever is focusing on the indirect marketing channels where they sell Surf Excel through retailers. Sales Force in Surf Excel is divided into 3 types: General Trade (general stores, Kiryana stores, Medical and Genaral stores), Local modern trade (super stores such as Aghaz, Naheed, Chase), and International Modern trade (Large houses such as Makro and Metro).

Promotion:
Surf Excels promotion has been the backbone of its success. For promotional purpose different mediums are used like Electronic Media ads appearing in newspapers, tv channels, magazines &product brochures and catchy taglines like Daghtu Achay Hotey Hain . Promotional Activities like social events for example Paint and Games Masti,Splat Park and Art Project Competition for Schools. Social Awareness Activities like Tools For Schools In 2010, the floods damaged more than 10,000 schools and kept nearly 1.3 million children away from one of their most fundamental right; education. Surf Excel has taken the first step towards rehabilitating the flood affected schools in Ghotki, Muzafargarh and Rahimyarkhan with its Tools for Schools initiative. It aims to provide basic learning tools such as blackboards, alphabet charts and student desks in order to make the classrooms more conducive to ECE learning. Surf Excel Tools for Schools is encouraging children from the non-affected flood areas to come to the fore and help their fellows, whose schools were destroyed last year, by making these tools. For this reason, Surf Excel is travelling to various schools stretching from Islamabad to Karachi, holding day long events full of learning and fun. These tools are then handed over to the flood affected schools so that children can learn and realize their potential.

Surf Excel Tools for School Campaign

Brochure of tools for school campaign

Newspaper ad for tools for school

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Tools for school class

Marketing Environment
Unilever has carried out extensive market research and based on that it prioritizes its different products. Based on its sales volume and profit margins, area sales manager decides what quantity of products should be delivered to different outlets. This also prevents shortage, if there is greater demand in certain areas. Major resellers and wholesalers like Metro and Makro are generally used for grocery shopping or bulk buying which is why Unilever also uses them as a forum to create awareness of their products. Apart from using its own marketing department, Unilever is cutting its costs by outsourcing major tasks such as distribution in Lahore and Karachi. As there are a number of detergent sellers in the market, the consumers and buyers have substantial power to influence the marketing of Surf Excel. One supplier for a successful product can exploit it; therefore Surf Excel has 3 major suppliers for the sole purpose of effective bargaining. Current Pakistani demographics show an increasing rate of population, specifically rural population, which is why Surf Excel has introduced sachets of Rs.10 especially for this market and advertises it as a pack that can wash clothes of the whole house in just Rs.10. This tactic has been working well for Unilever. Unilever also considers the increasing trend of nuclear families in the urban areas in contrast to rural areas in Pakistan. This is why different promotion plans promote different values in advertisements targeted to specific markets. Unilever also invests heavily in R&D to bring constant innovation to its product, for example Surf Excel introduced its less water, more lather variety in 2004 for a more social, economical and technological progress.

Competitors
The detergent market research of Pakistan shows that more than 50% of the people use soap for washing and cleaning purposes, due to economic crisis and poverty levels of Pakistan however Surf Excel continues to grasp more of this market by its promotional campaigns. It is also a fact that this detergent market has an annual growth rate of 16% in Pakistan. Ariel(P&G) is the closest competitor of Surf Excel in terms of pricing, service and promotional activity. However Surf Excel still enjoys the highest market share, the main reason for this can be brand loyalty because Surf Excel has a history and serving customers that hold on to them. Brite (Colgate-Palmolive (Ltd)Pak) is also capturing customers with its catchy new advertisement campaign ab koi daagh bach k dikhaye , however Surf Excel is comparatively is a much older and brand in the eyes of the customers which they can trust. Express Power and Bonus are also competitive brands, however they cater to a slightly different market of middle-class and lower class as represented through their marketing and lower prices.

Characteristics Affecting Consumer Behavior:

Consumers buy products because of the value it generates for them. In the case of, home care products, people give great importance to their selection and develop a strong bond with their chosen product. Hence, extensive marketing and constant product reminder is essential for commodities like Surf Excel. Surf has been in the market for a long time and has effectively managed its product life cycle with the help of product innovations and great marketing strategy. It has been a vital purchase of Pakistani households since then. The major characteristics of Surf Excel include its Stain Removal ability, power full cleaning, good fragrance. Moreover, it keeps the colors of clothes bright and is present in attractive packaging. At the same time, the consumers have been greatly inclined by the brand communication of Surf. Surf Excels campaign of Dirt is Good has been an immense success. This "Big Idea" has been running for more than 3 years and still has not lost its relevance. Under this idea, marketers promoted Surf Excel as a product that helps in active physical growth of children. They encouraged mothers to select Surf Excel for their childs healthy progress and not just for cleaning purpose. This campaign also encouraged concepts of unity and service for humanity. For reinforcement, Surf Excel developed public relationships through events like Game Masti. Another eminent characteristic of Surf is its affiliation with social causes. In this pretext, Surf Excel has partnered with ITA (Idara-e-Taleem-o-Agahi) to develop a curriculum aimed at Early Childhood Education. This curriculum has been shared with government and private schools to improve the experimental learning of children. Surf also sponsored the event, Design for Change School Contest 2010. Similarly, Surf Excel also gained public praise by indulging in another welfare task. They initiated a campaign called Tools for School. In which more than 10,000 flood damaged schools were rehabilitated in 4 districts of Punjab. It aims to provide basic learning tools such as blackboards, alphabet charts and student desks in order to make the classrooms more conducive to ECE learning. This has been the most influential characteristic of Surf Excel. Moreover, a marketing campaign that is characterized by surf Excel is the Dadi Ek Minute advertisements. These ads were greatly talked about and helped Surf in connecting to the female customers by the kid factor used in communication. This campaign made Surf Excel an ultimate solution to stubborn stains. Hence, the nature and intensity of these campaigns have been bolstered by Unilivers extensive marketing through Tvcs, television bloopers, high repetition and short duration messages on Tv, programs for children, sponsored events and affiliation to social cause.

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Buying Decision Behavior

Modern media and advertisements have made people, of mainly metro cities, brand conscious. They look for a good brand for a particular product and tend to maintain their choice. The customers buying decision behavior is dependent upon the type of product involved. In our products case, customers are most likely to have habitual buying behavior. This is mainly because there is little perceived difference between the possible detergent brands and low consumer involvement. Moreover, the frequent reminders by ads and strategic campaigns have made the customers conform to this brand. As well as the visual symbols and imagery associated with the brand makes customers buy Surf out of habit rather than complex decision process.

Buyer Decision Process

Since Surf Excel is a well known product with its own target market, customers decision making process will not be complex and lengthy. However, several customers might undergo through the following steps: Need recognition: At this stage, the buyer recognizes the problem or need. As in this case, the problem of stains or advertisements and discussions with peers might generate a drive to purchase. Information search: at this stage several measures are taken by different customers to reach to a buying decision. In Surf Excels case, very few customers will undertake this step due to the strong advertisement of the brand. Hence most of the people will gather information from commercial source. Evaluation of alternative: different consumers have different evaluation process. This depends upon several factors including their affiliation and past experience with the product. In Surf Excels case, most of the customers will skip this step as we observe a habitual buying behavior towards this detergent. Purchase decision: generally this decision might be influenced by attitude of others or unexpected situational factors. However, in our products case, external determinants are mainly economic factors and Surfs exclusion from social causes. Postpurchase Behavior: surf Excel has established certain expectations with its brand which it aims to fulfill. Almost all of the consumers take certain actions after their consumption based on their satisfaction or dissatisfaction. Moreover they undergo cognitive dissonance, which means that the satisfaction or dissatisfaction involves certain compromises. In Surf Excels case, the compromises made by new customers are the advantages of close competitive detergent.

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