Report on Marketing Strategy of Surf Excel

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Report on Marketing Strategy of Surf Excel Powered By Docstoc
					                     Sir Jawad Saleem




                Marketing Plan

                                  Presented By

                     Habib Ahmed (062413)




Affiliation: Marketing Strategy

(MBA subject studying at IMS)
                                       29-11-2008




                          Acknowledgment

May   ALLAH                      bless me with such kind of dedicated teacher in future.


Thanks to Sir Jawad Saleem, under his dynamic guidance I am able to express
myself. And I am now at the stage to complete my project. He is beyond my thoughts and
much more than this acknowledgement.

And finally I am thankful that He cooperated with me and appreciated as well. All the
research I have done is due to the skill I required from you. I have tried my best to
provide you the actual facts and figures.

I hope you will surely feel a difference and will appreciate me.

Only your appreciation is my reward.
                      Table of Contents
1. Synopsis ……… ………………………………………………………………… 4

2. Mission Statement …………………………………………………............……. 5

3. Current Marketing Situation………………………………………………..……6

                          o Market
                          Description..................................................................
                          ........6

                          o Product
                          Review……………………………………………………
                          11

                          o Review of
                          Competition……………………………………………12

                          o Review of
                          Distribution..................................................................
                          ...14

                          o Market
                          Potential…………………………………………………..
                          15

4. Swot Analysis…………………......................................……………………....
…16

5. Objectives and Issues
……………………................................…………….........18

6. Marketing Strategies
…………………………………………….....….……........19

Positioning Strategy…………………………………….……………....19

Marketing Mix (Product)…………………………………….………...20

Marketing Mix (Price)…………………………………………….……22

Marketing Mix (Distribution)………………………………………….25
Marketing Mix (Promotion) …………………………………….…….. 27

Competitive Strategy……………………………………………............31

7. Marketing
Research..................................................................................................33

8.
Budget.....................................................................................................................
....36

9. Control………………………………………………………………….……….......36

10.
Bibliography………………………………………………………………….…......37




                                              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.

             • I am student of Marketing Strategy, so that's why I want to
             know about Surf Excel Marketing System.




                                  Surf
Dominating 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 ags 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.


              Current Market Situation




                    Market Description
                     Product Review
A 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




                                               Question mark
              Star

Ponds skin cream



       Cash cow

Surf Excel
                                               Dog
Sun silk Shampoo
                                        Lifebuoy 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   Lahore which are as follow.
              Allied Marketing at Gulberg II

              Shahzad Brothers Enterprises at Murgi Hana

              Sigma at Kotlakhpat

              Munner & Phips at Sham Nagar

              Munner & Phips at Ravi Road
              Munner & Phips at Johar Town



DISTRIBUTION STRATEGIES

Unilever uses the following multiple channel of distribution.



                                    Wholesaler

                                     Distributor



                                      Retailer

                                    Consumer

                                     Company

                                    Consumer

                                      Retailer

                                     Distributor

                                     Company




Unilever uses a lot of distributors and retailers to supply its products in each
market where the final customer might reasonably look for it. While appointing a
distributor for a particular area, management uses its own judgment to select
such a person that has a potential to operate effectively.At present Situation for
Surf Excel they are focusing by intensive manners and for new products like Surf
Excel Matic they are focusing the distibution channal by Exclusive manners.


    Effect of Distribution on sales trend




Designing of channel for Surf Excel

Unilever has adopted the method of intensive distribution for Surf Excel because
the target market of this product is segmented for washing cloths using any
method.

The customer want to purchase this product from nearest shop as this is
convenience product.




                           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


                                      Issues
             For 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 Strategies




TARGET 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 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 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 varities

              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 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, eg: 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.
                              Promotion




Promotion 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. Schdule 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 is 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, eg: ATV & PTV.


                                    ATV
                               Advertising Tariff

                        With Effect From 01 July, 2007
                         Time SlotRates 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 Chuburji chowk 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 Gulberg.

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 perform 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 lot 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.

                       Market Research on Surf Excel

Introduction:

We are conducting a research survey on Surf Excel to study its growth.

We need to identify what variables are affecting the sales of Surf Excel.

We really appreciate your value able time and expended cooperation filling in the
information because you are the one who can give us to identify the variables.

We hereby confirm and assure you that your information been given in this
survey form would be kept strictly confidential and would not be shared with any
one other research members.

Instruction

              This questionnaire is about your personal experience so please read
              carefully while attempting it.

Q1. Which washing powder you use for washing cloths?

   Surf Excel                 Ariel                Brite                Bonus         Others
           Q2. Surf Excel is better than any other detergent or
           Washing soap?

                                                           Strongly
Strongly                    Some What                      Disagree
                Agree                     Disagree
  Agree                       Agree




           Q3. Is Surf Excel Matic is a good product for
           washing the cloths in the washing machines?

                                                           Strongly
Strongly                    Some What                      Disagree
                Agree                     Disagree
  Agree                       Agree




           Q4. The result of Washing cloths from Surf Excel is
           different from other detergents?

                                                           Strongly
Strongly                    Some What                      Disagree
                Agree                     Disagree
  Agree                       Agree
Q5. There is difference between Surf Excel and Surf Excel
Matic?

                                                                                      Strongly
Strongly                                  Some What                                   Disagree
                       Agree                                    Disagree
Agree                                       Agree




Q6. Choose number for ranking detergents.(1st,                          2nd ,3rd, 4th )


       Surf Excel                     Bonus                     Brite                      Ariel




              Q7. Surf Excel Matic should be available in small size packets?



                     Yes                                                 No




Q8. Surf Excel has develop confidence in kids as promoting them?


                                                                                          Strongly Agree
Strongly Disagree          Disagree           Some What Agree           Agree




              Q9. Surf Excel Matic should be available at general stores?


                     Yes                                                 No




Q10. Surf Excel Matic is in market after awareness about it purpose and function?
                                                                                     Strongly Agree
Strongly Disagree           Disagree        Some What Agree         Agree




Please fill the following


Name__________________________________________


Occupation_____________________________________


Phone Number__________________________________




                                 Result & Findings




       Which washing powder you use for washing cloths?




       Surf Excel is better than any other detergent or Washing soap?


       Is Surf Excel Matic is a good product for washing the cloths in the washing
       machines?
       Surf Excel Matic is in market after awareness about it purpose and function?




                                          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




                                     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.


It also works for the welfare and interest of Pakistan in the following terms:
                                   BIBLIOGRAPHY




Discussion with Muhammad Imran ( Territory manager)


Discussion with Adnan A.Butt (Sales Supervisor)


CONSUMER SURVEY


Economic survey of Pakistan




www.google.com

www.wikipedia.com

				
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