SURF EXCEL: THE BRAND

By:

Amit Das

HUL: INDIA’S LARGEST FMCG COMPANY 1931 – Entered as Hindustan

Vanaspathi Manufacturing Company Limited

• 1933 – Incorporated Lever Brothers India Limited

1935 – Incorporated United Traders Limited

• 1956 – Merged to form ‘Hindustan Lever Limited’ (HLL)

• 1992 – Recognised as Star Trading House in Exports

• 1994 – TOMCO merged with HUL • 1996 – Acquired Ponds India Ltd

&Lakme India Ltd • 2007 – Renamed as HUL

HUL A 52% owned subsidiary of Anglo Dutch giant Unilever.

India – 1888 largest FMCG company with 100 factories

Touching 2 out of 3 consumer . 20 distinct categories – Home and personal

care products, food and beverages. Indian Detergent market : 5100 crore ($1.2 bn). Detergent bar market makes up for 43% of

this market HLL commands 38% of the fabric wash market

SURF EXCEL: THE BRAND Launched in 1959 as ‘Surf’, it was the first detergent powder

in India Surf Excel underwent various changes in its Brand

Communication In 1990, following the launch of Ariel,Surf became, Surf Ultra In 1996,Surf redefined itself by launching Surf Excel In 2003, the base variant Surf was re-launched as, Surf Excel

Blue‟ In 2006, it added Rin Supreme Bar as,Surf Excel Bar into its

portfolio

SURF EXCEL: SEGMENTATION

SWOT ANALYSISStrength1. Premium Detergent Brand for HUL introduced in 19592. Surf Excel quick wash is powered with a path-breaking technology- it reduces water consumption and time taken for rinsing by 50%3. Strong distribution network by HUL, which is beneficial for the product 4. Good brand visibility and advertising with new ad campaigns to keep brand top-of-the-mind

Weakness1. Slightly Higher price prevents it from reaching to the mass of customers2. Product awareness not high among rural markets3. Legal issues due to brand wars

Opportunity1. Rapid market growth with further rural penetration2. Adapting to changing customer needs & improving life styles

Threats1. Low profit margins in detergent sector2.Threat from existing and new players in the market

MARKET SHARE

PRODUCT

Product range Surf excel detergent bar Surf excel blue Surf excel quick wash Surf excel automatic Surf excel top-load & front load Target market Sachet packet (Rs 2/-) – mass market ,

convenient & affordable Detergent bar , Surf excel blue , surf excel

automatic– middle class & upper middle class

PRICE

The pricing strategy for Surf excel have always been in accordance with its competitors .

PROMOTION

1 st national detergent brand on TV Different formats of communication.

Commercials through NET & SMS. Children festival Sales promotion through aggressive pricing

PLACE

HUL distribution network – key strength (Which helps reach out its product across the length and width of the vast country)

Direct coverage in over 1 million retail outlets

7000 Stockiest 2000+ Suppliers &

Associates

MEDIA STRATEGY (TRADITIONAL) Various categories of communication systems like broadcasting, print

media, etc. are used for Surf Excel Billboards and posters In the Print Media, such as newspapers, magazines, direct mails, out

doors, etc. are used In the broadcasting media, television and radio (FM channels) are the

major tools The frequency of ads is higher during the time slots 1.00 pm to 3.00 pm

and 9.00pm to 11.00 pm for stronger impact on target population Word of mouth publicity Surf Excel : Daag Acche Hain

MEDIA STRATEGY (NON- TRADITIONAL) Organizes various competitions , e.g.

World’s largest Hand-Printing Competition (over 70,000 children participated, Surf excel smart choice contest – lucky winner to get Whirlpool washing machine

Online promotion strategies –website www.surfexcel.in

Various initiatives “Surf Excel and You” suggesting mothers

to encourage active learning in their children, mother‟s pride – in which mothers can share their pride stories - special moments from the moment they have children, knowledge beyond books, expert advice

Children‟s Club Social media marketing through facebook –

Santa ClausCarnival etc. Surf Excel : Daag Acche Hain

SURF EXCEL Title sponsors of TV shows (Surf Excel Little Masters)

Every year Surf Excel organizes children’s festivals – Kala Ghoda 2010, 2009; Anand Mela 2007, D-Mart 2008

Surf Excel has it’s own YouTube channel wherein children share their “Dirt is Good” experiences

Surf Excel tied up with the movie – Chillar Party Surf Excel : Daag Acche Hain

MARKETING STRATEGY/OBJECTIVES

Surf has been in the market for a long time and has effectively managed its product life cycle with the help of product innovations and great marketing strategies.

Unilever markets detergent products internationally and uses individual sub-brands to segment those markets.

Formulation of the detergent and the market targeted vary by region.

Launching variants in the washing machine category.

Effective Ad campaing . Approaching new market.

PERFORMANCE ANALYSIS Sales GrowthDuring the last 5 years, sales growth at Hindustan

Unilever has not kept pace with the sales growth amongst its peers. Notwithstanding the fact that the size of HUL is much larger compared to many of its peers, the company may be losing its market share due to its slow pace of growth compared to peers.

EBITDA MARGIN

Amongst its peer group, HUL has the lowest EBIDTA margin. There is no substantial growth seen in the margins over the last 3 years.

DIVIDEND PAYMENTS

The dividend pay-out ratio for HUL is higher than its peers with the exception of Colgate Palmolive. The average dividend pay-out ratio in the peer group of FMCG companies was approximately 58.25% in FY11/12 compared to the 66.75% paid out by HUL. The dividend pay-out ratio for HUL has been consistently higher than the peer group average for the past 5 years.

BIBLIOGRAPHY

http://www.surfexcel.in/ http://www.hul.co.in/brands-in-action/detail/S

urf-Excel/294365/ http://www.mbaskool.com/brandguide/fmcg/8

64-surf-excel.html http://www.moneycontrol.com/news_html_file

s/news_attachment/2013/HUL_Royalty%20Payment%2012%20Feb%202013.pdf