Marketing & Competition Analysis

Introduction | History Top Indian Players | Market Share

Marketing Objectives | Strategies

Segmentation | Growth Opportunities Understanding Consumer Needs Pricing | Marketing Strategy Competitive Advantages | Promotion/AD Campaign Environmental Change and Innovation

Consumer Satisfaction and Research

Competitors : Ariel | Recommendation & Suggestions Conclusion

Fabric Wash Market in India

Total Market Size Rs. 8800 Crores Total Volume- 2.3 Million Tonnes +
98 percent Penetration in India
CAGR -10 per cent

Consumption Pattern Increase

55 per cent Urban (14 percent users of Washing Machine)

45 per cent Rural

Major Players

HUL Nirma
Ghadi P&G

Source : Business Standard, 29-11-07

History of Hindustan Lever

1959 HUL Introduced SURF. 1970 Launch of Nirma Power. Brand Lalitajee launched. 1990 Emergence of concentrate & Mid price segment powers. Ad Campaign Daag Doonthe rah jaoge was launched. 1996 Surf Excel launched. Ad Campaign Jaise bhi Daag ho, Surf Excel hai na 2003 Surf Excel Quick wash launched Ad campaigns on Shortage of water across country 2005 Ad Campaign Daag Acche hai na . 2006 Rin Supreme BAR. Ad campaign Good news, Bad news

Laundary Care Market

Washing Powder (51 percent)

Segmentation Of Detergent Powder Market

Detergent Bars

Liquid (New Entrant)

PREMIUM Ariel- Ultramatic & Spring clean Surf -Automatic & Quick wash MID PRICED Surf Excel Blue, Tide, Stain Champion

MASS MARKET Wheel , Fena, Nirma,Ghadi etc.

source : IMRB

Surf Excel To continue market leadership 37.8% in Indian Market

Ariel To increase market share 7.7% P&G in Indian Market

Rating 8/7

Approaching New Markets

Launching Product Extensions Maintain Brand Loyalty

Switch Consumers from Existing Brands in the present Market

Product Innovation Increase Brand Loyalty

COMMON MARKETING OBJECTIVES

- Ensure top-of-the-mind recall - Increase Frequency of Usage - Launching Variants in the Washing Machine Category - R&D for new product innovations

SIZE SACHET 200gm 500gm 1kg

SURF EXCEL QUICK WASH Rs.2/Rs.23/Rs.56 Rs.109/-

SURF EXCEL BLUE Rs.2/Rs.20/Rs.41 -

SURF EXCEL AUTOMATIC Rs.80/Rs.155/-

SIZE Sachet 200gm 500gm 1kg

ARIEL FRESH CLEAN Rs.2/Rs.26/Rs.55/Rs.107/-

ARIEL SPRING CLEAN Rs.2/Rs.26/Rs.55/Rs.107/-

ARIEL FRONTO-MAT

Rs.80/Rs.155/-

Surf was launched in 1959.

A family brand with tough stain removal and caring image. International to Ultra to Excel Surf Excel is available in 4 variants: Surf Excel Blue Surf Excel Quick Wash Surf Excel Automatic Surf Excel Detergent Bar

Ariel was introduced in India in 1991. Ariel contains unique Fragrance in detergents with new technology based detergent

Rating 7/6

Ariel is available in 3 variants: Ariel Fresh Clean Ariel Spring Clean Ariel Front-O-Mat

SKUs Stock Keeping Units

Sachet packs (Rs. 2) of Surf and Ariel are targeting mass market consumers, convenience and affordability

Targeting Upwardly Mobile group with increase in disposable incomes

Surf Excel - Brand Consolidation Strategy - Change from Rational Appeal to Emotional Appeal Marketing messages Eg. Sasti cheez or achchi cheez me farak hota hai to Daag Dhoondthe Reh Jaaonge to Daag Acche Hain

Rating 7/6

Ariel - Introduced Variants for consumers at lower prices - New product offerings like Supersoaker Ariel

SECOND PRICE WAR

FIRST SLASH : P&G as new entrant goes with Trial and Shift Consumer
- Ariel 20gm sachets (30% reduction) - Rs2

- Tide sachets (50% reduction)

Hindustan Lever Ltd (HLL) followed :

- Re1

- Surf Excel sachet (50% reduction) - Rs1.50

Rating 7/5

SECOND SLASH : P& G cut prices on large packs, HLL followed

source : India Infoline Report 2004

HLL SURF EXCEL Largest and the second most profitable busin(42.6 % Input, 2004) hence stakes higher Maintaining Brand Equity Rin Supreme price comparable to Surf Excel Blue Regional Players

P&G - ARIEL Marketed at 100% subsidiary of P&G, USA hence can absorb losses Target Market Fragmentation Tide v/s Ariel

STRENGTHS
SURF EXCEL

ARIEL Global brand presence. Less number of intermediaries in distribution channel. Rating 8/6

Strong R&D. Offers & Schemes.

Strong Distribution Channel.

WEAKNESSES
SURF EXCEL Expenses On Advertising. ARIEL Less Offers & Schemes

OPPORTUNITIES FOR BOTH

Penetration in rural areas. Both Can Increase Their Frequency Of Usage. Rating 7/5 Rating 7/5

New Consumer Markets

THREATS TO BOTH
Competition from organized and unorganized players.
Increased level of price competition.

Surf Excel
The Lalitajee Campaign

Ariel
Consumer Attitudes researched new technology and compact powder for washing machines Ariel Springclean with fresh fragrance 'Ariel - Whirlpool Superwash' - buy a Whirlpool Washing Machine for Rs.238/- in Equal Monthly Installments Variants in the market Rating 7/5

Surf Excel Automatic Testimonials by IFB Daag Acche Hain

Surf - Experienced Player - Competitive Advantage with well laid distribution and retail network - Innovative advertising approaches - Willingness to venture out with new variants Ariel - Strong first mover advantage in the Pricing War - Entrenched firmly in minds on basis of superior cleaning quality - Need to bring out new variants - focus on aggressive advertising important
Both need to venture out: - Explore Rural Markets - Invest in Research for Niche Products - Find New Consumer Categories - Fight Regional Players with a Customized Market Plan

Final Rating 51/40