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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 Contents
1. 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.

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 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 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

Star Question mark

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 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

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 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.

 
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. 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