Brand Dossier 'Surf Excel'

Transcription

1 Brand Dossier 'Surf Excel' Submitted To Prof. Srinivas Govindrajan In Partial Fulfilment for the requirement of the course Marketing Management - I Presented By Ankit Haldar B13012 Neha Sanghvi B13037 Sagar Salot B13052 Varun Mohta B13062 Page 1 of 21

2 CONTENTS Sl No. Particulars Page No. 1. About Hindustan Unilever Limited 3 2. Brand History and Its Evolution Over Time 3 3. Positioning Advertising Strategy Sales Promotion Segmentation Strategy SWOT Analysis for Surf Excel Strategies adopted by the brand Generic Competition Distribution Channels Summary Future Directions References 21 Page 2 of 21

3 About Hindustan Unilever Limited Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 75 years in India and touches the lives of two out of three Indians. Hindustan Unilever Limited (HUL) is the subsidiary of the Anglo-Dutch company Unilever, which started its operations in India in Its operations were started under the name of Hindustan Vanaspathi Manufacturing Company Limited in In 1933, Lever Brothers India Limited was started saw the advent of United Traders Limited. The merger of these three companies happened in 1956 to form what is now known as the Hindustan Lever Limited (HLL), with its headquarters in Mumbai. Hindustan Lever Limited (HLL) was named Hindustan Unilever Limited (HUL) in The Company has over 32 brands and 16,000 employees, and has an annual turnover of around 25,206 crores (financial year ). HUL is a subsidiary of Unilever, one of the world s leading suppliers of Fast Moving Consumer Goods with strong local roots in more than 100 countries across the globe with annual sales of 51 billion in Unilever has about 52% shareholding in HUL. Brand History and Its Evolution Over Time Started by Hindustan Unilever Limited (HUL) in 1959 in India and Pakistan, Surf Excel is one of the oldest detergent powders. Initially, the brand was positioned on the clean proposition of washes whitest. Slowly over time with the advent of other local and global detergents Hindustan Unilevers, went through many changes in its brand communication. In 1970s they came up with 'Lalitaji' an image of a no-nonsense, smart, independent, prudent homemaker to Daag achhe hain or 'Dirt is good' in In the present Indian detergent market scenario, Surf Excel leads the Premium Fabric Wash Category. Page 3 of 21

4 Positioning Definition A marketing strategy that aims to make a brand occupy a distinct position, relative to competing brands, in the mind of the customer. Companies apply this strategy either by emphasizing the distinguishing features of their brand (what it is, what it does and how, etc.) or they may try to create a suitable image (inexpensive or premium, utilitarian or luxurious, entry-level or high-end, etc.) through advertising. Once a brand is positioned, it is very difficult to reposition it without destroying its credibility. Also called product positioning. Initial Positioning The main motive of Surf Excel was to create an awareness in the minds of people that the product is different from the other detergents, it wanted to create its image that of a tough stain remover. It was initially positioned as detergent that "washes whitest". Surf Excel marketing strategy initially was focused towards positioning itself as a brand which gives value for money. In one of the early advertisements, a woman asks the audiences that "Surf Excel ki Kharidari Mein hi Samajhdari hai". This line struck a chord with value conscious Indian housewives and this campaign helped made Surf Excel a household name. Page 4 of 21

5 Repositioning Surf Excel has always tried to create a differentiation strategy for its brand. In the year 2002, a detergent powder designed especially for washing machines was launched as Surf Excel Matic. It even came in two variants- Front Load and Top Load. Gentle Wash and Surf Excel Bar are two other major products of the brand. With the entry of Ariel and Tide from the HUL s biggest competitor Proctor & Gamble, Surf had to undergo a change in its image by introducing their new tag-line Daag Acche Hain or Dirt Is Good. Keeping in mind that children normally while playing have the habit of spoiling their clothes, Surf Excel s main target was to boost up their sales by sending across a message to all the mothers that surf is there to take care of the stains. Page 5 of 21

6 Advertising Strategy If you want to know Surf Excel marketing strategy you should once go through the era before Surf Excel started its campaign. Detergent marketing was considered as boring and dull. Surf excel marketing strategy was not only unique and innovative but simple enough to understood by average educated (or sometimes not educated at all) housewives in India. Surf Excel - "Daag Ache Hain". The brand was one of the oldest detergent powder in India launched in Surf Excel marketing strategy initially was focused towards positioning itself as a brand which gives value for money. In one of the early advertisements, a woman asks the audiences that "Surf Excel ki Kharidari Mein hi Samajhdari hai". This line struck a chord with value conscious Indian housewives and this campaign helped made Surf Excel a household name. Surf Excel has always tried to create a differentiation strategy for its brand. In the year 2002, a detergent powder designed especially for washing machines was launched as Surf Excel Matic. It even came in two variants - Front Load and Top Load. Gentle Wash and Surf Excel Bar are two other major products of the brand. Page 6 of 21

7 The "Dirt is Good" or "Daag Ache Hain" campaign began with the famous puddle war commercial, where a brother was shown taking revenge on a mud pool for spoiling his sister's clothes. The latest campaign is a continuation of the same philosophy and encourages the value of righteousness that communicates the need to have the courage to stand up for what is right, with its badappan (dignity) campaign, which used the theme of non-violence. Since 2005, the first of this series was aired, the brand has taken an unconventional route. The brand has portrayed human values like forgiveness by showing a mud soaked young student mimicking his favorite teacher's dog that has just died. The idea of portraying different values seems to be working well with people and the connect it builds between a detergent powder and a sense of freedom. Detergent advertising was usually considered anooying in the past, while Surf Excel ad series has been a pioneer in breaking out of that mould. "Daag Ache Hain" has worked very well for seven years and it almost works as an irony which shows a contradiction for a category that normally talks about cleanliness and whiteness. "Agar Daag Lagne Se Kuch Acha Hota Hai Toh Daag Ache Hain"- The brand has used this emotional appeal to help it differentiate itself from other brands. It has used mothers as that target audience letting their kids enjoy their freedom without worrying about spoiling their clothes. Page 7 of 21

8 Sales Promotion Sales promotion are the activities which the company do to increase its sales. It may include the following things: 1. Reduction in price 2. Advertisement 3. Discount offers etc. 4. Packaging All this may be done at consumer level or at distributor level or at retailer level. The discounts offer, prizes given to retailers and distributors are all included in this. Sales Promotion of Surf Excel is increased by 10% this year. Sales Force in Surf Excel is divided into 2 types: 1. General Trade (General stores, Kiryana stores, Medical and General Stores) 2. Local modern trade (super stores such as reliance fresh, subiksha) The company has introduced its product in many price band to fit the budget of every consumer. It has came up with a price sachet of Rs. 2 of 14 gms to Rs 450 for 5 Kg. Surf excel is matching its price band with its competitor like Ariel which is also offering such price band but the prices of surf excel are little bit higher than the Ariel showing high quality. Page 8 of 21

9 Discounts and Offers Surf Excel joined hands with Brandpower to promote their detergent exclusively used for washing machines is at present giving away free sample of 1 Kg Surf Excel Matic absolutely free. All you need to do is to give your name and your details about yourselves and your washing machine, which brand you use and what type, etc. You will be delivered 1 Kg of Surf Excel Matic Detergent absolutely free. You will need to enter the details like your name, date of birth, whether working or not, your washing machine usage if you own any and your address to claim the free 1 Kg Surf Excel Matic for Free. This offer is valid only for the first 10,000 entrants who submit the necessary details to claim thefree sample. It is otherwise valid till August 30, Hence you should hurry before it runs out of stock or the offer ends due to reaching the required amount of entrants. This offer was brought to us through Brand Power which is an unique portal which helps us to choose the right brand through research. Just visit this page of Brand Power and click on the banner which says Free Samples now available and proceed to claim the free sample. Since this is a limited period offer and only limited to 10,000 people there is absolutely no guarantee that all those who submitted will get this sample but just try it out to see whether you are lucky enough to get it or not. As said above this offer is valid only till August 30, "Surf Paint Fun 2003", "Surf Colour Your Future 2004" and "Surf X Sellam ", made mothers and their children to feel Surf Excel as a member of their family. This consumer relationship gave a phenomenal growth to their success. Surf Excel Six Packer consisting 6 sachets (for a weekusage) for a cost of 10 was introduced to make the product affordable in a largemarket to target Price conscious and sachet consumers. When Dove was bought by HUL, it had to change the consumers "bad perception" i.e., Dove was made of animal fat. So, they promoted a free Dove soap for a kilogram of Surf Excel. This made a positive impact about Dove and at the sametime made other detergent consumers to buy Surf Excel. Page 9 of 21

10 Segmentation Strategy PRODUCT TARGET GROUP PURPOSE Surf Excel Blue Everyone To prevent fading of colour Surf Excel Matic Washing machine Machine wash requires Surf Excel Bar Surf Excel Quick Wash users Low and Middle income family Consumers in Water scarce regions less lather detergent To provide both whiteness and stain remover To save two buckets of water during rinse and to convert hard water into soft water Page 10 of 21

11 SWOT Analysis for Surf Excel Strength India's largest selling detergent company. Brand innovation and renovation. Reach of the product. Competitive advantage. Supply chain of distribution Weakness Labour and input cost. Finance. Managing scale. Raw material. Opportunities Indian market for FMCG is 20% Niche target market. Market penetration Geographical export Threat Cheaper product eat into HUL market share. Competitor trade strategy. Urban consumer are shopping less. Product from it's own stable. Page 11 of 21

12 Strategies Adopted by the Brand The First Detergent Powder In India In 1950s, when laundry was done predominantly with laundry soap bars and was a chore that everyone hated, Surf was launched, as the first detergent powder in India. The laundry was never so easy; with surf s extra power, everyone was Happy. Surf was also the first national detergent brand to be advertised on television. Surf offered consumers significantly better clean clothes, with much less effort and 'superlative whiteness'. 1970s - Lalitaji "SURF Ki Kharidari Mein Hi Samajdari Hai!" With the launch of lower priced brands, the challenge for Surf was to justify its premium by educating consumers how it was still economical than others. Surf introduced Lalitaji', a no-nonsense, smart, independent, prudent homemaker, who is conscious of her budget and yet will never compromise on the quality of products that she buys. Lalitaji became a household name and an inspiration for other homemakers who identified with her, making her one of the most memorable characters in Indian advertising. 1990s - Daag Dhoondhte Reh Jaoge Times changed, and so did Surf. Early 90s saw the emergence of concentrates and mid priced powders in the Indian market and Surf excel again led the way to superior washing performance by launching Surf Ultra with enzymes technology. In a new and unprecedented way Surf Ultra reaffirmed its superiority by saying 'Daag Dhoondhte Reh Jaaoge' (Keep looking for the stains). This was the reflection of the self confidence of Indian homemakers who were ready to challenge anyone to find a fault with their choices or with their laundry!! Surf Excel Hai Na! Even today, a decade after this campaign was launched, what do people say when they encounter stains - Surf Excel Hai Na! This not just was a phrase to accept the fact that stains happen, but also established that there is no big deal as long as Surf Excel is there. The superiority of Surf Excel was established with an image of Stain Removal Expert. Page 12 of 21

13 Save 2 Buckets Of Water New innovations which make a real difference to our lives, is at the heart of Surf Excel. Water shortage is a key concern in many geographies and a significant amount of water is used for laundry. We launched a revolutionary product with a low foam formula which would effectively remove stains and save 2 buckets of water. Revathi and Shabana Azmi partnered with us to promote this innovative product and the larger cause of water conservation - "Do bucket paani roozana hai bachana" Till Date - Daag Acche Hai! Our consumers have always been taught to believe that dirt is bad and we turned the belief on its head by proclaiming Daag Ache Hain (dirt is good) based on our understanding of the relationship shared between a mom and her child. We believe every stain a child brings home is an experience; a value learned in process of getting dirty! "Daag Achhe Hain" champions the theory that if a child learns something and gets dirty in the process, then those stains are "good". We have translated this philosophy into many heart-warming commercials over the years making "Daag Ache Hain" a common belief across the country. Page 13 of 21

14 Launch Of Surf Excel Bar 2006 saw the migration of Rin Supreme Bar to Surf Excel Bar. It was the most premium bar in the market offering a superior product which does not have any dissolved minerals (mitti) and removes tough stains like turmeric and grease with minimal effort. In its latest avatar, Surf Excel bar offers the cleaning benefits similar to that of vinegar, blue, bleach, and lemon and enables you to remove multiple stains with just 1 product Launch of Surf Excel Liquid With the launch of the new Surf Excel Liquid Detergent, which is two times better than detergent powder at stain removal, there's even lesser need to worry about tough stains. Surf Excel Liquid Detergent penetrates through everyday tough stains like ink, grease, pickle and mud and removes them easily. The new Liquid Detergent is suitable for both bucket wash and top load washing machines. Page 14 of 21

15 Generic Competetion The Indian detergent market is estimated to be around crores comprising of laundry soaps, detergent powder, liquids and bars. The major players in the organised detergent market are :- 1. Surf Excel (HUL) 2. Nirma 3. Ariel & Tide (Proctor & Gamble) Nirma This product created a marketing miracle, when introduced in the domestic marketplace. In 1969, when the detergents were priced so exorbitantly that for most of the Indians, it was a luxury item. Nirma was founded by Dr Karsanbhai Patel. Nirma was sold door-to-door in polythene bags. In a short span of time with indigenous process, Nirma created an entirely new market segment in domestic market place and with its low packaging and low profile marketing it quickly emerged as a dominant market player. Ariel World over Ariel epitomises stain removal and removes even the toughest stains in the 1 st wash. Introduced in India in 1991, Ariel has continuously led other detergents in product innovation. It pioneered the use of enzyme technology for superior and safe stain removing power, longer lasting perfume, which cleans everyday soil and dirt from garments. Over the years the brand has enjoyed endorsement from celebrities such as the former actress and now MP Shabana Azmi and lakhs of other home-makers in India. Page 15 of 21

16 Tide Tide is the world s oldest and most trusted billion dollar detergent and is the market leader in 23 countries around the world. Tide provides outstanding whiteness on white clothes and provides excellent cleaning for coloured clothes too. Launched in India in mid- 2000, the brand has gained popularity among Indian housewives. Page 16 of 21

17 Distribution Channels Distribution channel is also known as marketing channel. Distribution (or placement) is one of the four aspects of marketing. A distributor is the middleman between the manufacturer and retailer. After a product is manufactured, it may be warehoused or shipped to the next echelon in the supply chain, typically either a distributor, retailer or consumer. The other three parts of the marketing mix are product management, pricing, and promotion. Frequently there may be a chain of intermediaries, each passing the product down the chain to the next organization, before it finally reaches the consumer or end-user. This process is known as the 'distribution chain' or the 'channel.' Each of the elements in these chains will have their own specific needs, which the producer must take into account, along with those of the all-important end-user. They are building key capabilities in training the large number of people involved in these initiatives. HUL has firstly segmented the general trade, and now addresses each channel - grocery stores, chemists, wholesale, kiosks and general stores - with a differentiated mix of services. HUL is also emphasizing on making brands prominently visible in the crowded stores. Greater interaction being key to touching consumers, HUL is using the point-of-purchase for a much higher level of direct contact, through in-store facilitators, sampling, education and experience. Page 17 of 21

18 Self-service Stores & Supermarkets: Secondly, HUL has pro-actively developed customer management and supply chain capabilities for partnering the emerging channel of self-service stores and supermarkets. HUL s distribution initiatives create significant employment and vocational opportunities. Its countrywide network of 7,000 Stockists and 6,000 sub-stockists employs over 60,000 people. In their current channels, they work with the local retail trade which has dispersed ownership and already involves a large number of people. their new initiatives by themselves create large vocational opportunities for people. Hindustan Lever Network aims to create over a million self-employed entrepreneurs. HUL s distribution channel has certainly changed over a period of time. Previously wholesalers and large retailers were suppose to place their order directly to the company. The salesmen of the company use to collect the orders and then deliver the goods to the respective customers. Page 18 of 21

19 This system was very simple and good enough in the beginning, but then HUL changed its strategy in order to provide better quality service to its customers. A Wholesaler was appointed in each market as a Registered Wholesaler. His job was to distribute the products to the company salesman who in turn would be distributing them to the wholesalers and retailers which in final turn would reach to the consumers. This strategy helped HUL to widen their distribution network. With the passing away of time, HUL knew that competition was increasing with the entry of new players in the market of detergent powder. It was necessary to have a strong distribution channel for Surf Excel being a FMCG product. So HUL had to make its distribution network easier and leaner to survive in the market. For this to happen, the retailers shelves had to be replenished from time to time so as to keep the stock readily available in the shops. To accomplish this task, HUL had warehouses and depots spread all over the county. Huge stock of finished goods and products were stored and stocked in these warehouses. These depots acted as buffers in case of increase in demand of the product. Earlier, HUL followed the policy of distributing the products directly to the registered wholesalers. As time passed by, the company changed its policy and now it sends all the goods and products directly to the warehouses. The Stockist collect the goods from these warehouses directly. By doing this, HUL made its distribution network much more easier & efficient, because of which the products are now easily available to the wholesalers and stockist. Page 19 of 21

20 Summary As of now we understood that Surf Excel is one of the best detergent in the detergent market in India. It started its journey long time back and since then there was no looking back. It continuously came up with different detergent products right from Surf Excel Blue to Surf Excel Quick Wash. Its biggest advantage lies in its Advertising and Promotional strategies where it created a bench mark for its competitors. It has always understood the need of its consumers and has maintained the quality of the detergent throughout. It came up with such advertisements which its customers could relate with their daily life, such as Agar Daag Lagne Se Kuch Acha Hota Hai Toh Daag Ache Hain. Surf Excel constantly made innovations in its products by launching SURF EXCEL BAR & SURF EXCEL LIQUID WASH. Also with its strong distribution channel HUL could make all its products readily available in all the retail outlets including villages and remote areas. Future Directions Surf Excel already has a huge customer base. So their priority in the coming years would be holding on to these existing customers in order to defend their market share. They need to improvise their strategies just like they did previously by changing their promotional ideas. This strategy would help their Brand to stay alive in today s competitive market. Even after having such a strong distribution channel (compared to Ariel and Tide), there still lies many villages in India which are yet to be captured by the GIANT. Surf has unable to reach several remote areas in India. Hence it should come up with different variants that can give competition to the local brands with a cheaper price and good quality. Page 20 of 21

21 References ord-doc 5. Thank You!! Page 21 of 21