marketing plan surf & ariel
TRANSCRIPT
Acknowledgment
May ALLAH bless us with such kind of dedicated teacher in future.
Thanks to Sir Sanatullah, under his dynamic guidance we able to express ourselves. And we are now at the stage to complete our project. He is beyond my thoughts and much more than this acknowledgement.
And finally we are thankful that He cooperated with us and appreciated as well. All the research we have done is due to the skill we required from you. We have tried our level best to provide you the actual facts and figures.
We hope you will surely feel a difference and will appreciate us.
Only your appreciation is our reward.
EXECUTIVE SUMMARY Surf excel has been following the Unilever’s message i.e. add vitality to life. Similar is with surf excel. In the beginning Surf Excel was facing competition from Ariel, the product of P&G. but very soon with the tagline “Dirt is Good”, Surf Excel was successful in regaining its market leadership. It soon emerged back as the dominant detergent of the country.
The product is decided by matching the marketing insights with the 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 it is able to create a Recall value among the prospective customers. It should stand out among its competitors because majority of the purchases are impulsive buying’s.
Price is decided as per the economic situation and spending pattern of the target market. Distribution pricing strategy is determined in such a way so as to suit all 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. Re-launch of the Surf with the tagline “Dirt is Good” helps in differentiating the product, because all other brands are still focusing on the fact that dirt is bad.
The selection of place to communicate the brand’s message is a crucial process. The team of Surf Excel chooses the most effective media, be it print or electronic, at the most economic and effective time.
The target market of Surf Excel is mainly Housewives as deciders, whereas children as influencers. Surf Excel is available in 4 different packages so that every income bracket can purchase it.
The product this year showed a robust growth and increased profit. This reflects the strong brand equity of Surf Excel and market acceptance. Surf Excel’s re-penetration in the market is a model of exemplary marketing strategies.
Table of Contents1. Synopsis ……… …………………………………………………………………
2. Mission Statement …………………………………………………............…….
3. Current Marketing Situation………………………………………………..……
Product Review……………………………………………………
Review of Competition……………………………………………
Review of Distribution..................................................................
Market Potential………………………………………………
4. SWOT Analysis…………………......................................…………………….
5. Objectives and Issues……………………................................…………….........
6. Marketing Strategies …………………………………………….....….…….....
Positioning Strategy…………………………………….……………....
Marketing Mix (Product)…………………………………….………...
Marketing Mix (Price)…………………………………………….……
Marketing Mix (Distribution)………………………………………….
Marketing Mix (Promotion) …………………………………….……..
Competitive Strategy……………………………………………............
7. Budget.........................................................................................................
8. Control………………………………………………………………….………..
9. Bibliography…………………………………………………………………
Synopsis
• Through this study I obtain information about different players of detergent market.
• Through this project I can tell the people about the current market situation of surf excel as viewing the market, which will provide a picture to how consider the market trends in future.
SurfDominating the washing powders markets in Pakistan for four decades; Surf has continued to change according to consumer needs. Being a pioneer, Surf had to work hard to gain acceptance in the early days. To educate housewives about its use, house to house demonstration were organized in Lahore and Karachi. Free sample and coupons were also distributed to recruit consumer. There has been no looking back since the brand has undergone numerous product quality improvements to offer best cleaning results. Over the year, there has been a shift from cartons to poly Bags and emergence of low unit price packs.
With continuous technological innovations, the brand has always managed to fight off competition. Surf Excel, which hit the shops recently, has already gained a reputation for the best in the market
MISSION STATEMENT
We are the leading consumer products company in Pakistan, a multinational with deep roots in the country.
We serve the everyday needs of all consumers everywhere for foods, hygiene and beauty through branded products and services that deliver the best quality and value.
Our bands capture the hearts of consumers through outstanding communication
Through managing a responsive supply chain, we maximize value from suppliers to customers
We are exemplary through our commitment to business ethics, Safety, Health, Environmentalist and involvement in the community.
Product ReviewA comparison of cost price with sale price of Products in product line.
Surf Excel
Quantity Cost Price in Rupees Sale Price in Rupees
25 grams 4.7 5
50 grams 9.5 10
115 grams 19 20
500 grams 110.50 115
1000 grams 199.50 210
2000 grams 385 405
Unilever Products B.C.G Matrix
Star
Ponds skin cream
Question mark
Cash cow
Dog
Lifebuoy Shampoo
Surf Excel
Sun silk Shampoo
Surf Excel:
Surf Excel is a product of Unilever which is at growth stage as it has large market.
In Market Surf Excel 50 grams has huge market share with respect to other Sashes.
While demand of 500 grams is very low.50 grams is facilitating the class B and Lower B.
And 500 grams are facilitating the Class A and Class B+.
A Review of Competition
Ariel
History
When we talk about “P & G” then question arises what stands for it, basically it stands for “Proctor & Gamble”. Basically it came into existence in 1837 in queen city of west.
William Procter quickly established himself as a candle maker. James Gamble apprenticed himself to a soap maker. Soon they started to work combine in 1837, a bold new enterprise was born: Procter & Gamble. On April 12, 1837, William Procter and James Gamble start making and selling their soap and candles. On August 22, they formalize their business relationship by pledging $3,596.47 apiece. The formal partnership agreement is signed on October 31, 1837.
They are also in the process to facilitate on the base of providing washing powder.
Need
Use for the purpose to wash the cloths
Customer Benefit
Ariel is associating the brand with customer on the bases to give them superior quality and makes the ground for customer to provide a theme which cause to have happiness.
TARGET MARKET OF ARIEL
Ariel has adopted the strategy of market aggregation. ARIEL target market includes Middle Class, Upper Middle Class and Upper Classes of the population of Pakistan. The Ladies of Pakistan who are very conscious about their family.
MARKETING POSITIONING
Ariel is considered to be a trusted and premium brand of Pakistan. Procter and Gamble is positioning their product in the best of their customer satisfaction. As charging money they are positioning their product as best use as well as providing quality in response.
They are focusing on the quality and they are also in a motive to facilitate the customer as providing a whole range which they can.
Price Comparison with different Players
Brand Name Quantity Price in rupees
Surf Excel 1000 grams 210
Ariel 1000 grams 210
Brite 1000 grams 170
Express Power 1000 grams 125
Bonus 1000 grams 60
A Review of Distribution
Distributors
Distributors are the institution through which availability of products is possible. Unilever’s distributors have a very good relationship with them. and the important thing is that they must integrated into total marketing mix because of time and money required to setup an efficient channel.
Unilever has Six distributors in Karachi which are as follow.
Allied Marketing at North Nazimabad
Shahzad Brothers Enterprises at North Karachi
Sigma at Baferzone
Munner & Phips at Gulshan-e- Iqbal
Munner & Phips at Schon Circle
Munner & Phips at Gulistan-e-Johar
Market Potential
Detergent Market is growing by 16% intensively.
At present Consumer prefer detergent on the base of quality.
Pakistani Peoples are moving from rural areas to urban areas as life style is changing.
Advertising is promoting the detergents by comparing the functionality of different detergents and laundry Soaps.
Increase awareness of usage benefit of detergent.
SWOT Analysis
Strengths
Enjoying economies of scale
Good will in the market
Strong financial position
Surf has become the generic name in detergents
Have Strong distribution channel in Pakistan
Abundant financial resources
Well-known brand name
Well brand image
Committed employees
Weakness
Huge inventory stocks of raw material
Weak spending on “R & D”
Internal operating problems
Opportunities
Rapid market growth
Changing customers needs & wants as life style change
To create relation with society on the social marketing basis
Pakistan peoples moves from soap to detergent
Threats
There is very tough competition in detergents markets
Low profit margins
Smuggled brands of CHINA
New competition in the market
Increases in taxes
Increases in prices due to fuel prices
Objectives
The objectives of the Surf Excel is
To 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.
Total commitment to exceptional standards of performance and productivity, to working together effectively and to a willingness to embrace new ideas and learn continuously.
To maintain highest standards of corporate behavior towards employees, consumers and the societies and world to acquire success.
The major points are as fallows.
Sales growth
Revenue
Market positioning
Enhance Market shares
Customer satisfaction
Goodwill & reputation
IssuesFor Sales growth they need highly intensive distribution and strong promotions
Unilever is facing competition from P&G as on the base of different brands market share
Unilever has to maintain its difference from other brands as creating unique values , that others are not giving with core product.
Sales growth is possible when product remain at fixed price for a specific time period and this depend on cheapest raw material handling and its transporting.
MARKETING STRATEGIESTARGET MARKET OF SURF EXCEL
Surf Excel has adopted the strategy of market aggregation. It is a product by Unilever. SURF EXCEL target market includes Middle Class, Upper Middle Class and Upper Classes of the population of Pakistan.
Surf Excel target the SOCIAL ECONOMIC CLASS OF A, B+ AND B
Surf Excel has the huge share from major cities.
Marketing PositioningSurf 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 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”.
They are also positioning as considering the fact of Strong’s competition .So they are also focusing different type of facilities.
MARKETING MIX
Product
In product some elements are involved which are Variety, Quality, Size, Features Brand Name, Packaging and Services.
Varity
Surf Excel is at present situation available in two varieties.
Surf Excel
Surf Excel Matic
Quality
Surf Excel quality is very popular among the peoples as Dominating the washing powders markets in Pakistan for four decades; Surf has continued to change according to consumer needs. Since 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 cloths but also it has created the relation ship with customers as making grounds to promote their kids.
Surf Excel is the brand that is targeting the peoples through believes and values. There fore they define there product on the basis of some relating activities.
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”.
Parents should encourage them.
Size
Surf Excel is available in different quantities which are as follows
25g, 50sg, 115g, 500g, 1kg and 2kg.
Price
Here the firms have to consider many factors for determining the price.
Selecting the price objective
Analyzing competitors costs,
Prices and offers.
Selecting a pricing method.
Price is simply the cost plus profit of the firm. There are many competitors in the market. So the firms have to consider about the competitive price while selecting new price and schemes.
Basic Method of Setting Prices
Unilever is using the following methods for price setting.
Price to Distributors
The company provides products to the distributors for the prices decided keeping in view the cost, the target revenue and competitors prices. All distributors are being equally treated.
Prices Charged by Distributors to Retailers
Unilever gives margin of certain percentage to distributors so in this way prices to be charged by distributors to retailers are fixed.
Prices Charged by Retailers to Ultimate Consumers
Company influences prices charged by retailers. So retailers are bound to charge fix price to ultimate consumer
How to set the price of the product
Prices are set by taking into consideration into the prices of the competitors.
As there products are highly quality .so usually they charge high prices. Such like Unilever set low price for Wheel Washing Powder in past. And they are charging price of surf Excel on the base of its quality.
Prices are set by taking into consideration
What Customer believe for high price & high quality.
There price are high because they believes in zero defects.
They charge different prices to registered and unregistered retailers.
Prices are set by taking into consideration the size, type of product.
List prices of surf excel
Surf Excel
Quantity Price in rupees
25 grams 5
50 grams 10
115 grams 20
500 grams 115
1 000 grams 210
2000 grams 405
Discounts
A quantity discount is price reduction to those who buy large volumes. This is given to increase company sales. So that firm can have more revenues. However
Unilever is allowing 1% discount to distributors & whole sellers on purchase of Surf Excel of worth Rs 600.
Discounts on payment period
It is a price reduction to buyers who pay their bills promptly. A typical example is 2 /10 net 30. Which means payment is due within 30 days and buyer can deduct 2 % by paying the bill within 10 days. But Unilever is not offering such discount. They are dealing on cash basis.
Functional discounts
These are also called trade discount which is offered by this particular firm. It will be given to those who perform certain function Such as storing, selling book keeping. Surf Excel has own agent or Book keepers. Helium VRCB is company which is performing such actions as referring by Unilever
Credit terms
Unilever is not operating on the basis of credit terms. The purchaser has to pay the amount within one day.
But listed parties such as Abdul Hameed store, AlGhosia store and Rana store are being facilitating on 7 days credit.
Place
Registered office
Avari plaza,
Fatima Jinnah Road,
Karachi.
Rahim Yar Khan Factory
Unilever Pakistan limited
Laghari road
Rahim yar khan
Channels
Unilever is focusing on the indirect marketing channels where they sell surf excel through retailers.
Consumer
Retailer
Distributor
Company
Locations
As on the basis of Surf Excel Unilever is focusing on all areas through which it is possible to cover different classes needs.
That’s why Unilever products are available at general stores as well as departmental stores, e.g.: Akbari store, Al Fatah & Decent departmental store.
Coverage
Unilever aims to create a long term relationship with customers so they belief that this objective will be only fulfill, if they have system to handled the markets needs as to reach the product on all areas where its target market exist.
Shelf Spacing
Surf Excel is being position in different departmental store on the base of taking the a specific area among other brands.
For this purpose Unilever is paying 2 million rupees to Alfatah store as acquiring 40 % area in the detergents.
Assortments
This term refer the situation where products are to be maintain on the basis of grading, However Unilever product (Surf Excel) is reliable.
Inventory
As Unilever mostly products are convenience product. So they have to maintain their position strong as contains the inventories in huge amounts. Through which it will be possible to facilitate the market on times as placing it after every two days.
PromotionPromotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate quicker and greater purchase of particular product/services by consumer as the trade.
Unilever Pakistan Limited places their products in local as well as in foreign market. They export directly and indirectly. Unilever promote their products through media, and other trade incentives to distributors and wholesalers.
ADVERTISING STRATEGY
MEDIA USE
Unilever Pakistan Limited use radio, TV and Billboards and newspapers for advertising purposes.
FACTORS FOR DECIDING MEDIA STRATEGY
Which one is more effective?
Cost benefit
More access
PROMOTION CAMPAIGN
“INAM HI INAM DOSTI KAY NAM”From November 2 , 2008 To January 31 , 2009
Promotional activities provides chance to company to communicate with the potential parties to “Beat the drum” about it products.
In this scheme company gives the points to whole sellers on the purchasing of Rupees 200. Schedule is as follows.
Brand SKUs Purchasing Points
Surf Excel 25 200 10
Surf Excel 50 200 10
Surf Excel 115 200 10
Surf Excel 500 200 16
Surf Excel 1000 200 16
Surf Excel 2000 200 16
The company sets up the store displays and sales officers make sure that items displayed are properly arranged so that they can look attractive on eye contact level. There fore Surf Excel is being shown on the hangers of the stores as in return of charges for it.
Promotion methods
Advertising.
Newspaper:
Jang and Naway Waqt are being used for advertisement in front page.
Television:
All nationwide channels are being used to run the campaign of Surf Excel.
Unilever has to pay the huge amount for it as advertise through different channels, e.g.: ATV & PTV.
ATV
Advertising Tariff
With Effect From 01 July, 2007
Time Slot Rates per Minute
07:00am - 03:59pm25,000+GST
04:00pm - 05:59pm50,000+GST
06:00pm - 06:59pm75,000+GST
07:00 pm - 09:59 pm 100,000+GST
10:00pm -11:59 pm50,000+GST
12:00am - 06:59 pm15,000+GST
Radio:
FM 100, FM 103 and FM 106.2 is now a days being used.
Road display:
Bill Boards such like at Shahra-e-Faisal & Karsaz is being used where a kid is showing the functionality & Purpose of Surf Excel.
Sales promotion
Incentives:
Last year Surf Excel was sell as giving 1kg mango on the base of purchasing of 1kg Surf Excel at selected areas such as Gulshan-e-Iqbal.
Samples:
Surf Excel is well known brand therefore there is no need to promote it by samples.
Personal selling
Order takers:
Company has employees who perform the activity of order taking from different areas to facilitate the retailers. There usually one day company performs the activity of order taking and very next day they deliver the Surf Excel to the destination.
Stalls:
Company arranges their stalls in the exhibition at which the products are displayed.
Public relations
Through Events:
Surf Excel is creating the relation ship with peoples as associating as considering the kids importantly because they know that when they will capture the feelings of the kids they have the strong grounds as this segment is more favorable.
Surf Excel game masti is a chain of public relations which held over year. Last year it was hold at Race Course Park.
Now a days there are focusing on making new playgrounds as demanding 1Re on 1 kg packet.
Competitive strategy
Competitive strategy
In competitive strategy there are some sort of pressure on you, which have, you must the capability to face it like they are
Pressure of Buyers:
When there is a lots of sellers lying in the market then buyer has power to influence.
Pressure of Suppliers:
One supplier for a company can exploit the company. There fore Surf Excel has 3 Suppliers for the purpose to bargain with them effectively.
Threats of Substitutes:
In the detergent market people have choices as they can take Surf Excel and Ariel alternatively.
Threats of new entrance:
New coming brands of China and other smuggled brands are huge threat for Surf Excel.
As concern of competitive strategy the organizations really should focus on following of three strategies
Differential strategy when we see towards the “Unilever” they have really provide the good quality products to the consumers like packing and beautiful appearance with beautiful colors and images as well as Unilever focusing on best quality of Surf Excel as charging the premium on it.
Cost leadership strategy as concern of matter with the “Unilever” they have really adopted such techniques, which shows that they have really focused on the cost minimization through adopting different techniques & new modern technologies.
Focus strategy as concern of matter with the “Unilever”. It is a multinational company so they focus the market segments and put totally their intentions to major segments.
Budget
Per kg revenue is 230 and variable cost is 150
While consumption will be 96000 tons.
There fore break even will be = (96000/230-150)*1000 = 1200000
Controls
Company deals only in those products that are profitable. If there is any indication
that any product is not profitable company analyzes the reasons and step are taken
to overcome the reasons. For this purpose Unilever concern with marketing
research firm Aftaab Associates for marketing research to gain the
information about trend of market. Company also takes into consideration the
welfare of the consumers. It takes into account the taste and habits of the
consumer.
There fore company has finished the production of Wheel Washing Powder in
past.
BIBLIOGRAPHY
Discussion with Muhammad Imran (Territory manager)
Discussion with Adnan A.Butt (Sales Supervisor)
CONSUMER SURVEY
Economic survey of Pakistan