Académique Documents
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Term: I
Course Name: Marketing Strategy and Organization
Name of the faculty: Dr. S.R. Singhvi
Title/Topic STP – Surf Excel
Group Number: 9
Group Members: Sr. No. Roll No. Name
1 16FT-002 Aakash Singhal
2 16FN-041 Devesh Jain
3 16MKT-060 GVS Chaitanya
4 16FT-099 Sarthak Arora
5 16MKT-153 Sohail Dev Majumdar
6 16FT-120 Sonal Kulkarni
1. INTRODUCTION
HUL is deeply rooted in India with products used in 9 out of evert 10 households. Having
heritage of more than 30 years, over 35 brands and 20 distinct categories such as soaps,
detergents, skin care and many more. The company has more than 16000 employees and has
an annual turnover of INR 31,425 crores. HUL is a subsidiary of Unilever, one of the world’s
leading suppliers of FMCG. It has 67.25% shareholding in HUL
Any given day more than 2 billion people use Hindustan Unilever Product across the globe to
look & feel better and get maximum out of their lives. HUL is consistently thriving hard
having vision to double its current business and launching new products. At the same time,
they are also focusing on sustainable management, reducing environment footprint and
focusing more on social as well as environmental aspects.
The company has multinational expertise as well as deep roots in diverse local cultures.
Company’s five key priorities include the following:
The company believes on conducting operations with honesty, integrity and openness respecting
human rights and interest of the employees. Being a global company it becomes tricky for them
to obey and adhere to different rules and regulations of different countries and adapt with
different markets around the world.
As water scarcity is increasing in many parts of the world, it is the need of the hour as well
as growth opportunity for companies to replace traditional laundry chemicals with new ones
requiring lesser water. As forecasted in coming times, countries like China, India,
Indonesia, USA, South Africa will be among the water stressed countries which is around
50% of global laundry detergent market.
All these events will lead to increase in demand for liquid detergents designed for use in
conventional and high frequency washing machines. This segment is expected to grow at a
Compounded Annual Growth rate of ~7% and this subsequently complementary products
like synthetic polymer will grow at a comparatively slow CAGR of around 3%. The value
rise for the fastest growing category in 2015 has been around 23%.
With increase in disposable income, there is inclination towards taking better care of
expensive clothes. Mainly the demand of fabric softener and other sophisticated products
comes from colder regions of North India and also from some eastern parts during winter
season.
Hand wash still continues to be a dominant method of washing clothes in major part of
India majorly in Tier 2 and Tier 3 cities (roughly 65% of the whole country), overall there
has been a marginal decline because of increasing use of washing machines and more
hygiene awareness.
The higher participation of women in workforce and subsequently lesser time availability
for household chores will have a positive impact on the sales of washing machines in the
near future. This will lead to decrease in the sales of bar detergents. Although this process
will take time as the disposable income and purchasing power is growing at a moderate rate.
5. If you use washing machine, what kind of 12. What made you buy this product?
washing machine do you use? a. Effective cleaning
a. Semi-automatic b. Fragrance
b. Fully-automatic c. Price
d. Packaging
6. Which detergents do you use? e. Size
a. Surf Excel f. Machine friendly/Hand wash
b. Tide g. Less water consumption/ Sustainable
c. Rin
d. Wheel 13. Has the product surprised you in any
e. Ghari ways?
f. Others- a. Yes, attractive offers
b. Yes, new technology
7. If Surf Excel, which brand do you use? c. No
a. Surf Excel quick wash (Orange)
b. Surf Excel matic 14. Are you likely to switch to other brand if
c. Surf Excel Easy Wash (blue) you get better technologies or offers?
a. Yes
8. Where did you buy this product? b. No
a. Retail
b. Groceries 15. Would you recommend this product to
c. Hypermarket others?
d. Online store a. Yes
b. No
16. If switching, then which brand?
_________________________
17. Reason for switching brand?
a. Price
b. Performance
c. Technology
d. Marketing/Advertisement
e. Others-
10
No of People
<100
6
100-500
4 500-1000
>1000
2
0
15-25 25-40 40-60 60+
Age Group
Table : Distribution of people for various washing
methods
Graph 2.2: Consumption distribution in different age groups
Analysis: People in the age group of 25-40 are more inclined to buy larger volumes
because of larger family size, small aged children, thus more washing of clothes.
Bachelors or single working professionals are more inclined towards buying smaller
quantity of detergents or small bars because of irregular usage (Refer to Graph 2.2)
Table 2.2: Age-wise Distribution of Brands
Brand
Age Group
6 15-25
5
25-40
4
3 40-60
2 60+
1
0
Rin Surf Excel Tide wheel Others
Brand
People in the age group 15-25 are very much influenced by advertisements and have the habit of
trying new products, these are young working class people generally less conscious towards
spending habits (Refer to Graph 2.3 and Table 2.2).
People of age group 25-40 start having a settled life and having children. They also have good
disposable income thus generally go for high end products like Rin & Surf (Refer to Graph 2.3 and
Table 2.2).
People of age group more than 40 stop changing brands. They are not adaptable to changes and
prefer sticking to 1 brand maintaining uniformity (Refer to Graph 2.3 and Table 2.2).
Segment, a division which behaves in a similar way or has similar needs, can be created in detergent
market on various factors. Segments that have been identified for the detergent market are:
3.1.1 Age: It is an important demographic factor upon which detergent market can be
segregated. Marketer should be clear about the age segment which he/she targets.
Detergent market segmentation on the basis of age can be done as following:
15-25 years: People in this age group are generally students or young working
professionals. Out of this division, the % of people who will wash their own clothes
will be staying away from their homes. This can be because of two reasons:
Firstly, they might be staying in hostel for studies
Secondly, they might be staying away from their homes in their jobs
These people lead a dynamic life. They wash their clothes, either themselves or
through a maid. They are looking for easy and quick washing solutions and might even
be inclined towards cheap washing solutions.
25-40 years: People in this age group are generally working professional who are
married and might even have a family to look after. They generally lead a stable life.
This age group requires detergent in larger quantity as compared to the previous
segment and hence, the marketer can target this aspect of the consumer. Also, this
segment has the highest persons in population division which makes this segment a
good prospect for volume consumption
40-60 years: People in this age group lead a settled life. They have families which
increases their requirements in terms of quantity. They have the most stable life of all
age segments.
60+ years: People in this segment usually have various constraints. They might face
budget constraints, age constraints (such as ailments like arthritis) etc. They require
quick and easy solutions for effective washing of clothes.
3.1.2 Income: The Indian population is divided into various classes based on their income
levels. We have classified segments based on their annual disposable incomes in the
country as following:
Rich Class (Global Indians): Households in this class have large income (Rs 10
lakhs +) and usually include senior corporate executives, large business owners, big
agricultural owners and top tier professionals. Clothes of households that fall in this
class are expensive and require better care. People in this category have high
disposable income and hence, potential for laundry care material such as fabric
softeners, high quality detergents is high in this market.
Upper Middle Class (Strivers): Households in this class (Rs 5-10 lakhs +) are
considered well off. This includes established professionals, senior government
officials, medium-scale industrialists and rich farmers in villages. These people use
detergents for washing through washing machines. A great rise in the trend of washing
machine within this class is the use of automatic washing machines.
Lower Middle Class (Seekers): Households in this class (Rs 2-5 lakhs) are employed
over various sectors. These include mid-level government officials, medium-scale
traders and business people etc. People in these household prefer a low cost washing
solution that satisifies their needs. They don’t go for cheap laundry care products but
for medium range laundry products.
Lower class (Aspirers): Household in that constitute this class (Rs 90,000- 2 lakhs)
struggle to live a comfortable life but they do not fall in the category of the deprived.
They look for cheap laundry care solutions so as not to upset the tight budget
constraint upon them. People in these categories do not care about the additional
aspects of a laundry product, such as fragrance, fabric softeners, but expect a
minimum level of cleansing from their laundry product.
3.1.3 Marital Status: The market can be segmented on the marital status of an individual as
well. This attribute is important to understand various factors as following:
Single: A person who is single will have less usage of detergent. He/ she might fall in
any of the above segments also but some attributes will remain constant for this
segment.
People in this segment will always look for a quick solution for washing clothes. They
will not look at their budget while buying detergents because their usage will be low.
Moreover, if these people are living alone then they will not use a washing machine as
it will increase the cost of living for them. Washing, in such cases, will be through
hands or will be delegated to local washerman (dhobi) on most occasions. If we
consider the former case where people wash their clothes by hand, then marketer can
explore great potential in this segment
Married: A person who is ‘married’ will require detergent in a larger quantity than a
‘single’ person. They will have a more stable lifestyle and hence, their consumption
patterns will be different.
3.1.4 Gender: This is an important segment for the marketers to look at. The two segments
in this category are:
Female: Laundry chores in India are considered as a work intended for women. The
main reason for the same lies in the patriarchal structure of the society in India. The
possession rate of washing machine among women has also increased from 7% in 2012
to 9% in 2015. This is due to increase in disposable income and higher participation of
women in the workforce. This increase in possession of washing machine further
increases the need for detergents.
Male: With the increasing urbanisation in the Indian society and dynamic nature of
work in these areas, more and more men are becoming independent. They are
outsourcing their washing requirements to maid or local washermen, or are using
washing machines to clean their clothes. This paradigm shift in the attitude of the men
can enable the market to target them as a substantial prospect for their product, i.e.,
detergent.
3.1.5 Region: Demographic segmentation of the population of India can be done in two
ways as following:
Rural population: This population have considerably low income as compared to the
urban areas. Hand washing remains a prevalent method of washing clothes in these
areas. However, with the increasing penetration of the washing machines in the rural
population, there has been a marginal shift in the washing method from hand washing
to washing through machines.
Urban Population: There is a better penetration of washing machines in this segment.
This promotes the use of more detergents (powder detergents and liquid detergents) in
these areas. The disposable income levels of the people are comparatively higher in
these regions. This makes them a good prospect for the marketers
3.2 Geographic Segmentation: Detergent marketer can make use of geographical segmentation and
define their marketing strategies as per the following geographical segments:
North India: The sheer size of the population of this geographic segment makes it the most
important segment in terms of volume (Refer to Table). Marketers can target this region for
volume sales. Also, this region has per capita consumption at par with the national average
West India: This region is the most prosperous region of all the regions. The per capita
income is highest in this region. The home care industry gets its 25% of the sales from this
region.
The marketer can use this aspect of the region to target the affluent customers.
South India: This region has the highest education level of all the regions and there is
product awareness among the population of the region. The detergent marketer can target this
aspect of the region and use a well-defined mixture of emotional as well as rational marketing
for the same. The consumers in this region cover, at present, around 25% of the sales of home
care products.
East India: This region is home for a lot of lower-middle income and lower income groups.
At present, this region makes around 20% of the market share of home care products. This
region can be developed as a volume-generating region by the detergent marketer.
Chameleons: These people are generally active but lack courage and self-confidence
preferring following rather than leading. Career oriented women at heart but still do not
allow full freedom. Average financial soundness.
Traditionalists: Passive, hopeful, culture bound, under achievers, prefer peace to
prosperity and tradition over fashion. Prefer arranged marriages, see women as capable
home makers, are generally very loyal to the brand they use. Comprise of old persons,
teachers, doctors.
4. TARGETING
Surf Excel has selected its target segments on various factors. Firstly, on the basis of psychographic
factor- lifestyle, it has Trendsetters as the target segment because this segment consists of people who
are ambitious, interested in new and expensive products and have good income. So they would be
willing to spend more money on detergent powder for better was quality and the brand.
Then Surf Excel looked for the segments based on demographic segments. On the basis of age, it
selected two target segments. The first one is 25-40 age group. This is a working age group. Majority
of people in this group are married and have a family. So they require detergent powder in large
quantity. The highest population of people in India belong to this age group (Refer to Table 4.2). This
makes it a good prospect for volume sales.
The second target age group is 40-60. People in this age group lead a settled life. They have families
which increases their requirements in terms of quantity. They have the most stable life of all age
segments. So they have a fixed quantity requirement.
The next target segment has been selected on the basis of income. Two target segments have been
selected. First is the Rich class. Households in this class have large income (Rs 10 lakhs+) (Refer to
Table). Clothes of households that fall in this class are expensive and require better care. People in
this category have high disposable income and hence, potential for high quality detergents is high in
this market. The next target segment here is Upper Middle Class. Households in this class (Rs 5-10
lakhs+) are considered well off. They have high disposable incomes. A great rise in the trend of
washing machines in this segment raises the potential for the use of high quality detergents.
Then the target markets have been selected on the basis of marital status. Married people are the
target market here. A person who is married will require detergent in a larger quantity than a single
person. These people will have a more stable lifestyle and hence, their consumption will be fixed.
On the basis of gender, females are the target segment for Surf Excel. This is because laundry chores
in India are considered as a work intended for women. The main reason for the same lies in the
patriarchal structure of the society in India. The possession rate of washing machine among women
has also increased from 7% in 2012 to 9% in 2015. This is due to increase in disposable income and
higher participation of women in the workforce. This increase in possession of washing machine
further increases the need for detergents.
The target segment on the basis of region is Urban region. There is a better penetration of washing
machines in this segment. This promotes the use of more detergent powders in these areas. The
disposable income levels of the people are comparatively higher in these regions. This makes them a
good prospect for the marketers.
On the basis of geographic segmentation, Surf Excel has three target segments. The first one is North
India. The sheer size of the population of this geographic segment makes it the most important
segment in terms of volume (Refer to Table 4.3). Marketers can target this region for volume sales.
The second target is West India. This region is the most prosperous region of all the regions. The per
capita income is highest in this region.
The third target segment is South India. This region has the highest education level of all the regions
and there is product awareness among the population of the region. The detergent marketer can target
this aspect of the region and use a well-defined mixture of emotional as well as rational marketing for
the same.
Table 4.2: The table above shows the population division of India in respective age
groups
Population
300,000,000
250,000,000
200,000,000
Persons
150,000,000
100,000,000
50,000,000
0
15-25 25-40 40-60 60+
Age Group
Table 4.3: This table depicts the Region wise population of India
5. Competitive Analysis
Detergent Powder
Powder Detergents, for a better cleaning
Product Category
Detergents Detergent Tablets, experience, more
Liquid Detergents foam and easy usage
Laundry Care,
Laundry Cleaning Fabric Softeners,
Generic Cleaning laundry
products Laundry aids, Bar
soaps
Dish washing, Toilet
Care, Air Care, Home Care and
Budget Home care industry
Surface Care Clean Living
Analysis:
Based on the close proximity of the Detergents on the perceptual map the competitors of Surf
are Wheel, Ariel, Patanjali and Tide. However, the segment targeted by Wheel,Tide and
Patanjali is Middle to Lower Income families and not the high end consumers. The physical
attributes of Ariel are similar to that of Surf. Also the segments targeted by the both these are
women belonging to higher income families, using washing machine as well as the
conventional methods of washing by hands to clean the laundry. Hence Ariel can be
considered as the direct competitor of Surf.
Comparative Analysis between Surf Excel and Ariel
Brand Awareness
Most of the consumers surveyed used Surf Excel as they had a higher brand
awareness of Surf Excel
Ad Recall
Surf Excel ads which have switched from following a rational approach of extreme
cleanliness to the emotional approach surrounded around the tag line “Daag Acche Hain”
have been able to penetrate the minds of the customers to a great extent. Most of the Surf
excel users remembered the surf excel ads. Even the Ariel users did not remember the ariel
ads but recalled the Surf Excel ads. Hence surf excel has a better ad recall.
Associations:
Consumers usually associate surf excel with stain removal, powerful cleaning, good
fragrance, maintenance of brightness of colour, attractive packaging, emotional and catchy
tag lines like Daag Acche hain and Surf Excel Hai na. On the other hand, the Ariel users
focus on stain removal, extreme cleansing of white clothes and food fragrance.
Availability of Brand
Most of the people surveyed said that if the brand of their choice is not available, they would
buy another brand or look for the brand elsewhere. So irrespective of the performance of the
detergents, it is the consumer need that forces the customers to buy.
Brand Image
Most of the people perceive Surf Excel as a high quality brand which is why they mostly
consider it to be costlier than Ariel, although both of them are similar priced. Most of the
consumers buying Surf Excel could not recall the price of the product. Also, the Ariel users
though Surf Excel to be costlier than Ariel though both of them are of comparable price.
Therefore, it can be concluded that the image of Surf Excel is high because it has a high
performance level. Surf Excel is strongly associate din the minds of the consumers. On the other
hand, very few people actually associate Ariel as a detergent effectively cleaning clothes. Thus
even though both Ariel and Surf Excel follow an emotional approach, surf Excel has a stronger
market presence than Ariel.
Initially surf excel was launched under the brand name “Surf” in Pakistan, 1948 & 1959 in
India.
Initially it was positioned on cleaning attributes as “washes whitest”. However, with
changing times and emergence of new players in the segment Surf Excel underwent various
changes in its brand communication. Surf Excel created positioning by creating values and
beliefs and campaigns having emotional touch to fit themselves in the minds of the Indian
consumers.
“Dirt is Good” campaign was launched with the idea that children discover more by self-
learning and during this course even if they get their clothes dirty it is acceptable. Dirt should
not come out as a barrier. Most importantly in the end it emphasizes on the point that Surf
Excel will take care of all the dirt with ease.
Surf excel managed to create a significant value in consumer’s day to day life. They related
the product and the brand with the easy lifestyle. That’s why whenever it comes about
detergent name, the first name comes is “surf excel”. Surf excel is leading the detergent
market from many years. The price is high, still people buy the product because over the
period of time a faith is created that the quality of the product is of very high standards.
Point of Parity for Surf Excel mainly includes attractive packaging, good quality and
effectiveness in removing dirt and string stains.
Point of differentiation for Surf Excel are Superior technology to wash clothes in the machine &
fabric softener which takes care of cloth’s fabric.
The bull’s eye ( Refer to Figure 6.1) of a brand describes the position of the brand in the
industry. It gives the overview of the similarities and differences it maintains with its
competitors.
As we start from the innermost circle, we note the brand-mantra of the product. It articulates
the heart of the brand.
In the second level, we list the Points-of-parity and points-of-differences of the brand with its
competitors. In this case, the stain removal is the basic requirement expected from a
detergent. Whiteness, Emotional appeal are the additional attributes the brand provides, but
competitor of Surf Excel, Ariel also provides the same attributes to its customers. So, these
three come under points-of-parity. Then the differential factors Surf Excel provides is it is
mild on the consumer’s hands and clothes. It also has a huge brand value that surf is used as a
generic term for a detergent.
Then comes the Substantiators (reasons to believe). Here, we list the reasons which supports
the points in the inner circle.
Outermost circle of the bull’s eye shows the tangible and intangible aspects of the brand that
affect the way the consumer perceives the product. When comes to tangible components, the
colour of the detergent reflects the quality of the product. In general, the yellow colour
signifies a lower quality product. The white/blue colour signifies a higher-quality. The
packing helps the customers to easily differentiate the sub-category of the product among the
wide range of subcategories it provides. In intangible components we list the qualities which
reflects the values, personality or character of the brand.
With the Target Consumer, Consumer Insight, Consumer need state and Competitive product set
as inputs to the Bull’s eye, we get Consumer takeaway as output
7. REFERENCES
7.1 http://www.portal.euromonitor.com/portal/analysis/related
7.2 http://www.indiastat.com/demographics/7/stats.aspx
7.3