Brand Dossier – 'Surf Excel' - api.ning.comapi.ning.com/.../SurfExcelBrandDossier.pdfPhase I - Literature Review Brand Dossier – 'Surf Excel' Submitted To Prof. Srinivas Govindrajan

Phase I - Literature Review

Brand Dossier – 'Surf Excel'

Submitted To Prof. Srinivas GovindrajanIn 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

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CONTENTS

Sl No. Particulars Page No.

1. About Hindustan Unilever Limited 3

2. Brand History and Its Evolution Over Time 3

3. Positioning 4 - 5

4. Advertising Strategy 6 - 7

5. Sales Promotion 8 - 9

6. Segmentation Strategy 10

7. SWOT Analysis for Surf Excel 11

8. Strategies adopted by the brand 12 - 14

9. Generic Competition 15 - 16

10. Distribution Channels 17 - 19

11. Summary 20

12. Future Directions 20

13. References 21

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About Hindustan Unilever Limited

Hindustan Unilever Limited (HUL) is India's largest Fast MovingConsumer Goods Company with a heritage of over 75 years in India andtouches the lives of two out of three Indians.

Hindustan Unilever Limited (HUL) is the subsidiary of theAnglo-Dutch company Unilever, which started its operations in India in

1939. Its operations were startedunder the name of HindustanVanaspathi Manufacturing CompanyLimited in 1931. In 1933, LeverBrothers India Limited was started.1935 saw the advent of United TradersLimited. The merger of these threecompanies happened in 1956 to formwhat is now known as the HindustanLever Limited (HLL), with itsheadquarters in Mumbai. HindustanLever Limited (HLL) was named

Hindustan Unilever Limited (HUL) in 2007.

The Company has over 32 brands and 16,000 employees, and hasan annual turnover of around ₹ 25,206 crores (financial year 2012 - 2013).HUL is a subsidiary of Unilever, one of the world’s leading suppliers ofFast Moving Consumer Goods with strong local roots in more than 100countries across the globe with annual sales of €51 billion in 2012.Unilever has about 52% shareholding in HUL.

Brand History and Its Evolution Over Time

Started by Hindustan Unilever Limited (HUL) in 1959 in India andPakistan, Surf Excel is one of the oldest detergent powders. Initially, thebrand was positioned on the clean proposition of “washes whitest”. Slowlyover time with the advent of other local and global detergents HindustanUnilevers, went through many changes in its brand communication. In1970s they came up with 'Lalitaji' an image of a no-nonsense, smart,independent, prudent homemaker to “Daag achhe hain” or 'Dirt is good'in 2005. In the present Indian detergent market scenario, Surf Excel leadsthe Premium Fabric Wash Category.

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Positioning

Definition

A marketing strategy that aims to make a brand occupy a distinctposition, relative to competing brands, in the mind of the customer.Companies apply this strategy either by emphasizing the distinguishingfeatures of their brand (what it is, what it does and how, etc.) or they maytry to create a suitable image (inexpensive or premium, utilitarian orluxurious, entry-level or high-end, etc.) through advertising. Once a brandis positioned, it is very difficult to reposition it without destroying itscredibility. Also called product positioning.

Initial Positioning

The main motive of Surf Excel was to create an awareness in theminds of people that the product is different from the other detergents, itwanted to create its image that of a tough stain remover. It was initiallypositioned as detergent that "washes whitest".

Surf Excel marketing strategy initially was focused towardspositioning itself as a brand which gives value for money. In one of theearly advertisements, a woman asks the audiences that "Surf Excel kiKharidari Mein hi Samajhdari hai". This line struck a chord with valueconscious Indian housewives and this campaign helped made Surf Excel ahousehold name.

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Repositioning

Surf Excel has always tried to create a differentiation strategy forits brand. In the year 2002, a detergent powder designed especially forwashing machines was launched as Surf Excel Matic. It even came in twovariants- Front Load and Top Load. Gentle Wash and Surf Excel Bar aretwo other major products of the brand. With the entry of Ariel and Tidefrom the HUL’s biggest competitor Proctor & Gamble, Surf had to undergoa change in its image by introducing their new tag-line “Daag Acche Hain”or “Dirt Is Good”. Keeping in mind that children normally while playinghave the habit of spoiling their clothes, Surf Excel’s main target was toboost up their sales by sending across a message to all the mothers thatsurf is there to take care of the stains.

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Advertising Strategy

If you want to know Surf Excel marketing strategy you shouldonce go through the era before Surf Excel started its campaign. Detergentmarketing was considered as boring and dull. Surf excel marketingstrategy was not only unique and innovative but simple enough tounderstood by average educated (or sometimes not educated at all)housewives in India.

Surf Excel - "Daag Ache Hain". The brand was one of the oldestdetergent powder in India launched in 1959.

Surf Excel marketing strategy initially was focused towardspositioning itself as a brand which gives value for money. In one of theearly advertisements, a woman asks the audiences that "Surf Excel kiKharidari Mein hi Samajhdari hai". This line struck a chord with valueconscious Indian housewives and this campaign helped made Surf Excel ahousehold name. Surf Excel has always tried to create a differentiationstrategy for its brand. In the year 2002, a detergent powder designedespecially for washing machines was launched as Surf Excel Matic. It evencame in two variants - Front Load and Top Load. Gentle Wash and SurfExcel Bar are two other major products of the brand.

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The "Dirt is Good" or "Daag Ache Hain" campaign began with thefamous puddle war commercial, where a brother was shown takingrevenge on a mud pool for spoiling his sister's clothes. The latestcampaign is a continuation of the same philosophy and encourages thevalue of righteousness that communicates the need to have the courageto stand up for what is right, with its badappan (dignity) campaign, whichused the theme of non-violence. Since 2005, the first of this series wasaired, the brand has taken an unconventional route. The brand hasportrayed human values like forgiveness by showing a mud soaked youngstudent mimicking his favorite teacher's dog that has just died.

The idea of portraying different values seems to be working wellwith people and the connect it builds between a detergent powder and asense of freedom. Detergent advertising was usually considered anooyingin the past, while Surf Excel ad series has been a pioneer in breaking outof that mould.

"Daag Ache Hain" has worked very well for seven years and italmost works as an irony which shows a contradiction for a category thatnormally 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 itselffrom other brands. It has used mothers as that target audience lettingtheir kids enjoy their freedom without worrying about spoiling theirclothes.

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Sales Promotion

Sales promotion are the activities which the company do to increase its sales. It may include the following things:

1. Reduction in price2. Advertisement3. Discount offers etc.4. Packaging

All this may be done at consumer level or at distributor level or atretailer level. The discounts offer, prizes given to retailers and distributorsare 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 GeneralStores)

2. Local modern trade (super stores such as reliance fresh, subiksha)

The company has introduced its product in many price band to fitthe budget of every consumer. It has came up with a price sachet of Rs. 2of 14 gms to Rs 450 for 5 Kg. Surf excel is matching its price band with itscompetitor like Ariel which is also offering such price band but the pricesof surf excel are little bit higher than the Ariel showing high quality.

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Discounts and Offers

Surf Excel joined hands with Brandpower to promote theirdetergent exclusively used for washing machines is at present givingaway free sample of 1 Kg Surf Excel Matic absolutely free. All you need todo is to give your name and your details about yourselves and yourwashing machine, which brand you use and what type, etc. You will bedelivered 1 Kg of Surf Excel Matic Detergent absolutely free. You will needto 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 claimthe free 1 Kg Surf Excel Matic for Free. This offer is valid only for the first10,000 entrants who submit the necessary details to claim thefreesample. It is otherwise valid till August 30, 2008. Hence you should hurrybefore it runs out of stock or the offer ends due to reaching the requiredamount of entrants.

This offer was brought to us through Brand Power which is anunique portal which helps us to choose the right brand through research.Just visit this page of Brand Power and click on the banner which saysFree Samples now available and proceed to claim the free sample. Sincethis is a limited period offer and only limited to 10,000 people there isabsolutely no guarantee that all those who submitted will get this samplebut just try it out to see whether you are lucky enough to get it or not. Assaid above this offer is valid only till August 30, 2008.

"Surf Paint Fun 2003", "Surf Colour Your Future2004" and "Surf X Sellam - 2005", made mothersand their children to feel Surf Excel as a memberof their family. This consumer relationship gave aphenomenal growth to their success. Surf ExcelSix Packer consisting 6 sachets (for a weekusage)for a cost of 10 was introduced to make theproduct affordable in a largemarket to targetPrice conscious and sachet consumers. WhenDove was bought by HUL, it had to change theconsumers "bad perception" i.e., Dove was madeof animal fat. So, they promoted a free Dovesoap for a kilogram of Surf Excel. This made apositive impact about Dove and at the sametimemade other detergent consumers to buy SurfExcel.

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Segmentation Strategy

PRODUCT TARGET GROUP PURPOSESurf Excel Blue Everyone To prevent fading of

colourSurf Excel Matic Washing machine

usersMachine wash requiresless lather detergent

Surf Excel Bar Low and Middleincome family

To provide bothwhiteness and stain

removerSurf Excel Quick

WashConsumers inWater scarce

regions

To save two buckets ofwater during rinse andto convert hard water

into soft water

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SWOT Analysis for Surf Excel

Strength Weakness

• India's largest selling detergent company.

• Brand innovation and renovation.

• Reach of the product.• Competitive advantage.• Supply chain of distribution

• Labour and input cost.• Finance.• Managing scale.• Raw material.

Opportunities Threat

• Indian market for FMCG is growing @ 20%

• Niche target market.• Market penetration • Geographical export

• Cheaper product eat into HUL market share.

• Competitor trade strategy.• Urban consumer are

shopping less.• Product from it's own stable.

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Strategies Adopted by the Brand

1959 - The First Detergent Powder In India

In 1950s, when laundry was done predominantly with laundry soap barsand was a chore that everyone hated, Surf was launched, as the firstdetergent powder in India. The laundry was never so easy; with surf’s extrapower, everyone was Happy. Surf was also the first national detergentbrand to be advertised on television. Surf offered consumers significantlybetter 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 justifyits premium by educating consumers how it was still economical thanothers. Surf introduced Lalitaji', a no-nonsense, smart, independent,prudent homemaker, who is conscious of her budget and yet will nevercompromise on the quality of products that she buys. Lalitaji became ahousehold name and an inspiration for other homemakers who identifiedwith her, making her one of the most memorable characters in Indianadvertising.

1990s - Daag Dhoondhte Reh Jaoge

Times changed, and so did Surf. Early 90s saw the emergence ofconcentrates and mid priced powders in the Indian market and Surf excelagain led the way to superior washing performance by launching Surf Ultrawith enzymes technology. In a new and unprecedented way Surf Ultra reaffirmed its superiority bysaying 'Daag Dhoondhte Reh Jaaoge' (Keep looking for the stains). This wasthe reflection of the self confidence of Indian homemakers who were readyto challenge anyone to find a fault with their choices or with their laundry!!

1999 - Surf Excel Hai Na!

Even today, a decade after this campaign was launched, what do peoplesay when they encounter stains - Surf Excel Hai Na! This not just was aphrase to accept the fact that stains happen, but also established thatthere is no big deal as long as Surf Excel is there. The superiority of SurfExcel was established with an image of Stain Removal Expert.

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2003 - Save 2 Buckets Of Water

New innovations which make a real difference to our lives, is at the heart ofSurf Excel. Water shortage is a key concern in many geographies and asignificant amount of water is used for laundry. We launched a revolutionary product with a low foam formula which wouldeffectively remove stains and save 2 buckets of water. Revathi andShabana Azmi partnered with us to promote this innovative product andthe larger cause of water conservation - "Do bucket paani roozana haibachana".

2005 Till Date - Daag Acche Hai!

Our consumers have always been taught to believe that dirt is bad and weturned the belief on its head by proclaiming Daag Ache Hain (dirt is good)based on our understanding of the relationship shared between a mom andher child. We believe every stain a child brings home is an experience; a valuelearned in process of getting dirty! "Daag Achhe Hain" champions thetheory that if a child learns something and gets dirty in the process, thenthose stains are "good". We have translated this philosophy into manyheart-warming commercials over the years making "Daag Ache Hain" acommon belief across the country.

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2006 - Launch Of Surf Excel Bar

2006 saw the migration of Rin Supreme Bar to Surf Excel Bar. It was themost premium bar in the market offering a superior product which does nothave any dissolved minerals (mitti) and removes tough stains like turmericand grease with minimal effort.In its latest avatar, Surf Excel bar offers the cleaning benefits similar to thatof vinegar, blue, bleach, and lemon and enables you to remove multiplestains with just 1 product.

2012 - Launch of Surf Excel Liquid

With the launch of the new Surf Excel Liquid Detergent, which is two timesbetter than detergent powder at stain removal, there's even lesser need toworry about tough stains. Surf Excel Liquid Detergent penetrates througheveryday tough stains like ink, grease, pickle and mud and removes themeasily. The new Liquid Detergent is suitable for both bucket wash and topload washing machines.

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Generic CompetetionThe Indian detergent market is estimated to be around ₹ 14000

crores comprising of laundry soaps, detergent powder, liquids and bars.The major players in the organised detergent market are :-

1. Surf Excel (HUL)2. Nirma3. Ariel & Tide (Proctor & Gamble)

NirmaThis product created a marketing miracle, when introduced in the

domestic marketplace. In 1969, when the detergents were priced soexorbitantly that for most of the Indians, it was a luxury item. Nirma wasfounded 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 newmarket segment in domestic market place and with its low packaging and lowprofile marketing it quickly emerged as a dominant market player.

ArielWorld over Ariel epitomises “stain removal” and removes even the

toughest stains in the 1st wash. Introduced in India in 1991, Ariel hascontinuously led other detergents in product innovation. It pioneered the use ofenzyme technology for superior and safe stain removing power, longer lastingperfume, which cleans everyday soil and dirt from garments. Over the yearsthe brand has enjoyed endorsement from celebrities such as the former actressand now MP Shabana Azmi and lakhs of other home-makers in India.

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TideTide is the world’s oldest and most trusted billion dollar detergent and

is the market leader in 23 countries around the world. Tide providesoutstanding whiteness on white clothes and provides excellent cleaning forcoloured clothes too. Launched in India in mid- 2000, the brand has gainedpopularity among Indian housewives.

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Distribution Channels

Distribution channel is also known as marketing channel.Distribution (or placement) is one of the four aspects of marketing. Adistributor is the middleman between the manufacturer and retailer. Aftera product is manufactured, it may be warehoused or shipped to the nextechelon in the supply chain, typically either a distributor, retailer orconsumer.

The other three parts of the marketing mix are productmanagement, pricing, and promotion. Frequently there may be a chain ofintermediaries, each passing the product down the chain to the nextorganization, before it finally reaches the consumer or end-user. Thisprocess is known as the 'distribution chain' or the 'channel.' Each of theelements in these chains will have their own specific needs, which theproducer must take into account, along with those of the all-importantend-user.

They are building key capabilities in training the large number ofpeople involved in these initiatives. HUL has firstly segmented thegeneral trade, and now addresses each channel - grocery stores,chemists, wholesale, kiosks and general stores - with a differentiated mixof services. HUL is also emphasizing on making brands prominentlyvisible in the crowded stores. Greater interaction being key to touchingconsumers, HUL is using the point-of-purchase for a much higher level ofdirect contact, through in-store facilitators, sampling, education andexperience.

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Self-service Stores & Supermarkets: Secondly, HUL haspro-actively developed customer management and supply chaincapabilities for partnering the emerging channel of self-service stores andsupermarkets.

HUL’s distribution initiatives create significant employment andvocational opportunities. Its countrywide network of 7,000 Stockists and6,000 sub-stockists employs over 60,000 people. In their currentchannels, they work with the local retail trade which has dispersedownership and already involves a large number of people. their newinitiatives by themselves create large vocational opportunities for people.Hindustan Lever Network aims to create over a million self-employedentrepreneurs.

HUL’s distribution channel has certainly changed over a period oftime. Previously wholesalers and large retailers were suppose to placetheir order directly to the company. The salesmen of the company use tocollect the orders and then deliver the goods to the respective customers.

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This system was very simple and good enough in the beginning,but then HUL changed its strategy in order to provide better qualityservice to its customers. A Wholesaler was appointed in each market as aRegistered Wholesaler. His job was to distribute the products to thecompany salesman who in turn would be distributing them to thewholesalers and retailers which in final turn would reach to theconsumers. This strategy helped HUL to widen their distribution network.

With the passing away of time, HUL knew that competition wasincreasing with the entry of new players in the market of detergentpowder. It was necessary to have a strong distribution channel for SurfExcel being a FMCG product. So HUL had to make its distribution networkeasier and leaner to survive in the market. For this to happen, theretailers’ shelves had to be replenished from time to time so as to keepthe stock readily available in the shops. To accomplish this task, HUL hadwarehouses and depots spread all over the county. Huge stock of finishedgoods and products were stored and stocked in these warehouses. Thesedepots acted as buffers in case of increase in demand of the product.

Earlier, HUL followed the policy of distributing the productsdirectly to the registered wholesalers. As time passed by, the companychanged its policy and now it sends all the goods and products directly tothe warehouses. The Stockist collect the goods from these warehousesdirectly. By doing this, HUL made its distribution network much moreeasier & efficient, because of which the products are now easily availableto the wholesalers and stockist.

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Summary

As of now we understood that Surf Excel is one of the bestdetergent in the detergent market in India. It started its journey long timeback and since then there was no looking back. It continuously came upwith different detergent products right from Surf Excel Blue to Surf ExcelQuick Wash. Its biggest advantage lies in its Advertising and Promotionalstrategies where it created a bench mark for its competitors. It hasalways understood the need of its consumers and has maintained thequality of the detergent throughout. It came up with such advertisementswhich its customers could relate with their daily life, such as “Agar DaagLagne Se Kuch Acha Hota Hai Toh Daag Ache Hain”.

Surf Excel constantly made innovations in its products bylaunching ‘SURF EXCEL BAR & SURF EXCEL LIQUID WASH.’ Also with itsstrong distribution channel HUL could make all its products readilyavailable in all the retail outlets including villages and remote areas.

Future Directions

Surf Excel already has a huge customer base. So their priority inthe coming years would be holding on to these existing customers inorder to defend their market share. They need to improvise theirstrategies just like they did previously by changing their promotionalideas. This strategy would help their Brand to stay alive in today’scompetitive market.

Even after having such a strong distribution channel (compared toAriel and Tide), there still lies many villages in India which are yet to becaptured by the GIANT. Surf has unable to reach several remote areas inIndia. Hence it should come up with different variants that can givecompetition to the local brands with a cheaper price and good quality.

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References

1. http://www.hul.co.in/

2. http://en.wikipedia.org/wiki/Surf_Excel

3. http://www.digitalimpulse.in/insights/surf-excel-marketing-strategy/#.UfQHU403CWE

4. http://www.slideshare.net/ArunachalamR1/brand-dossier-surf-excel-word-doc

5. https://www.google.co.in/search?q=surf+excel

Thank You!!

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Documents

Brand Dossier – 'Surf Excel' - api.ning.comapi.ning.com/.../SurfExcelBrandDossier.pdfPhase I - Literature Review Brand Dossier – 'Surf Excel' Submitted To Prof. Srinivas Govindrajan