Marketing-Surf Excel IQRA University –

Gulshan Campus

Marketing

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 Iqra University Gulshan
Campus
Group Members:

Fahimullah Baig

Dated: May 5, 2009

Subject: Introduction to Business

Topic of Project: Marketing (Surf Excel)

Submitted To: Mazhar Ali

Business Profile
Business Name: Unilever Pakistan

Location: Unilever Head Office near Avari Plaza Fatima Jinnah Road Karachi

Telephone: 5660062-9(Karachi)

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Acknowledgement
We are thankful to our course instructor, Mazhar Ali whose encouraging
guidance enabled us to prepare the report based on Marketing Strategies of
Surf Excel.

We also take this opportunity to show our deep gratitude to all persons who
have directly or indirectly helped us while making this informative report.

No doubt, all the people who were involved while making report played an
active and wonderful role.

Fahimullah Baig
(3288)

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Executive Summary
• Unilever was created in 1930 when the British soap-maker Lever
Brothers merged with the Dutch margarine producer.

• Unilever Company came into the Pakistan market in 1949 with the
name of Lever Brothers Pakistan.

• Changed the name Lever Brothers Pakistan to Unilever in year 2003.

• The leading consumer products company in Pakistan, a multinational

with deep roots in the country.

• The average per annum consumption of laundry detergent in Pakistan is

approximately 33,000 tons.

• Launched somewhere in 1960, Surf Excel was the first in the Pakistan
Laundry detergent market.

• Surf Excel enjoys a huge market share of around 38 percent of total

consumption.

• Keeps the colour of fabrics as original and vibrant.

• Major competitors are Ariel, Brite, Express , Bonus.

• Under the BCG Matrix, Surf Excel lies in the Star category.

• The product is in the growth stage, and continuously growing.

• Divides the market segment on the basis of income group.

• Intensive Distribution Network all over Pakistan.

• The brand advertisement plan is based on annual basis.

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Company Mission Statement
• The leading consumer products company in Pakistan, a multinational
with deep roots in the country.

• 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.

• Drive to serve consumers in a unique and effective way.

• Attract and develop highly talented people, who are exited,

empowered and committed to deliver double-digit growth.

• Serve everybody needs of all the consumers everywhere for foods.

Hygiene and beauty through branded products and service that deliver
the best quality and value.

• Strive to maintain an ever simple and enterprising business.

• Use superior consumer understanding to produce breakthrough

innovation in brands and channels.

• Committed to making continuous improvements in the management of

our environmental impact and to the longer-term goal of developing a
sustainable business.

• Brands capture the heart of consumers through outstanding

communication.

• With branded products and services which raise the quality of life.

• Through managing a responsive supply chain management, they

maximize value from suppliers to customers.

• They are exemplary through commitment to business ethics, health,

environment and involvement in the community.

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TABLE OF CONTENTS

Acknowledgement.....................................................................ii
.................................................................................................ii
Executive Summary..................................................................iii
Overview...................................................................................1
Unilever...........................................................................................1
Industry Profile.................................................................................2
Surf Excel........................................................................................3
Major Competitors.............................................................................4
Branding....................................................................................6
.................................................................................................7
Market Segmentation................................................................7
Marketing Strategy....................................................................9
Positioning..............................................................................10
Packaging and Labeling...........................................................11
Loyalty Pyramid.......................................................................12
Product Life Cycle....................................................................13
Sales Promotion and Advertisement........................................14
Channel and Customer Department (C & CD)..........................15
Pricing Consideration and Approaches....................................16
Distribution Channel and Supply Chain Management..............17
Market Distribution.................................................................18
Conclusion [SWOT ANALYSIS]................................................20

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Overview

Unilever

Unilever was created in 1930 when the British soap-maker Lever Brothers
merged with the Dutch margarine producer, Margarine Unie.

At that time, an international merger was an unusual move. But the owners
of the two companies could see that bringing together complimentary
businesses with strong global networks would create new opportunities.

In the Thirties, Unilever introduced improved technology to the business.

The business grew and new ventures were launched in Latin America. The
entrepreneurial spirit of the founders and their caring approach to their
employees and their communities remain at the heart of Unilever's business
today.

Unilever has universal appeal. One of the largest producers of packaged

consumer goods, Unilever operates in 150 countries in Asia, Africa, North
America, the Middle East, Western Europe, and Latin America.

Unilever is one of the world's leading suppliers of fast moving consumer

goods in foods, household and personal care products. Unilever are growing
biggest brands through innovative product development and compelling
brand communications. Each of these brands has enormous potential to meet
the changing needs of consumers through a variety of products that fulfil
their brand's promise. At the same time they also have the potential scale,
profitability and international appeal needed to be world-leaders.

Unilever Best foods' strength lies in its ability to tailor products to different
markets and anticipate consumer’s demands. This comes from in-depth
understanding of the countries in which they operate and policy of listening
to the customers.

Employing more than 247,000 people, Unilever is part of the Unilever

Group owned by the Netherlands-based Unilever N.V. and UK-based
Unilever PLC. Unilever has two global divisions, Home & Personal Care and
Food.

In much of the world, Unilever leads the Home Care market, which includes
cleansing and hygiene products. Many of the products are market leaders.

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Industry Profile
For many centuries, soap was primarily used for laundering. However,
laundry detergents have essentially replaced soap because they perform over
a broad range of water hardness levels.

Laundry Detergent and washing powders have become an important part of

every consumer’s life. The market offers a variety of washing powders, each
brand claiming to wash the cleanest at unbeatable prices to consumers.
Laundry detergents, however, exert a hidden but taxing cost on the
environment and consumer health due to their environment-damaging
properties. Phosphates are one of the main ingredients in most present-day
laundry detergents and are also the primary culprits in polluting water
bodies. Laundry detergent is also widely used in the Pakistan market, the
average per annum consumption of laundry detergent is approximately
33,000 tons - One tone detergent costs around 138,000 Rs.

Since the last two years, the market trend (Pakistan) in the laundry
detergents has taken a good pace, and many consumers are switching from
the bar soaps to laundry detergents. In terms of percentage, the increase
ratio is about to 20-25% per annum.

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Surf Excel

Launched sometime in 1960, Surf Excel was the first in

the Pakistan detergent powder market. Over the years,
Surf Excel has anticipated the changing washing
needs of the Pakistan homemaker and constantly
upgraded itself.

Surf Excel is Pakistan's largest selling compact detergent powder, it

promises to tackle the toughest stains without damaging the colour of the
fabric. This is because only Surf Excel has smart sensors that can
differentiate stains from colours. Now consumers don't have to worry about
tackling the really tough stains, especially on coloured clothes anymore.

Surf excel with active oxygen is formulated to remove a range of stains

such as chocolate, ink, egg yolk, blood, turmeric and coffee. It gives clothes
a complete cleaning while caring for the fabric. It is recommended by Singer
(Manufacturer of Electronic appliances) for use in top loading washing
machines.

The green speckles penetrate deep into the fabric to help remove tough
stains. The blue speckles give shine to whites and brightness to coloured
clothes.

Its refreshing fragrance keeps the fabric smelling fresh long after they have
been washed. It is being recommended by leading washing machine and
apparel manufacturers around the world.

Those preferring the modern and convenient way to wash can rely on Surf
Excel Liquid. The liquid form penetrates deep, allowing great wash results.
For really tough stains, consumer can apply the liquid directly on the body of
stain and tough stains being tackled with ease.

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Major Competitors
Market share plays a prominent role in business research and standing in the
market. Although Surf Excel is the leading brand, it also faces competition.

Major competitors for Surf Excel are:

• Ariel
• Brite
• Bonus and Express

Ariel
Procter and Gamble market nearly 300 brands - including
Pampers, Tide, Ariel, Always, Whisper, Pantene, Bounty. In
July 1997, they launched Ariel in Pakistan based on a
sophisticated and advanced formula. Its breakthrough
formula was warmly welcomed by the Pakistani consumers
and in a short time span it steals a significant amount of
market share from Surf Excel.

New Ariel delivers against one of the key Pakistani consumer needs: a
detergent that can give spotless cleaning to both coloured and white clothes.
This is because new Ariel contains a unique double action system, which gets
fully dissolved unlike bar soap.

Brite
Colgate Palmolive - backed by Lackson Group of Industries,
entered into the laundry detergent market by launching a
product with a name Brite in 1980. Although it was unable to
capture the significant market share of Surf Excel, but is
one of its main competitors. Brite also changes its packing
from poly bags to suit the needs of consumers.

Bonus and Express

Bonus and Express, both products of Colgate Palmolive -
backed by Lackson Group of Industries, are a few of the
oldest laundry detergents in Pakistan and enjoy a reasonable
amount of share in laundry detergents market. Because of the
low price factor, they attract the lower segment of the

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market. But due to inferior quality and less fragrance, they are unable to
attract huge market.

Market Share
In term of market share Unilever Surf Excel enjoys the maximum;
graphically it can be represented as:

Surf Excel - 38%

Ariel - 28%
Bonus - 16%
Brite - 11%
Express - 7%

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Branding
Consumer loyalty is fast becoming a disappearing phenomenon with
an increasing demand for brand variety

In an increasingly borderless world, consumers are getting exposed to both

information and choices overload, making them increasingly confused about
brands, Surf Excel branding strategy based on corporate branding
strategy, where the product of a company has its own name without any
company name added, the product belief in ‘complete cleaning and care’.

The ‘Brand image of Surf Excel ‘with reference to the other products in
term of percentage is:

Surf Excel - 49%

Ariel - 31%
Brite - 15%
Express - 5%

Surf was losing its identity on its own, ‘People ask for Ariel Surf, Brite Surf or
Wheel Surf.’ Or even Surf Excel.

Surf has become a very generic name over the years. There was thus a fear
that customers would switch over to some other competing brand,
unknowingly, even without paying attention to the brand of the product. The
movement is being seen as an attempt to give a more specific and clear
identity to the established brand. After more than 40 years, the brand will
dissolve into a new identity — Surf Excel. They migrated from Surf to Surf
Excel, as Surf has become generic and many people today refer to any
detergent as Surf. Besides, they feel that this brand has the chance of
attracting new users under the Surf Excel name

From time to time they changed their brand names as under

• Surf Ultra
• Surf Micro
• Surf Power
• and now Surf Excel

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Market Segmentation
Market segments are group of customers having similar needs / wants and
preferences. It enables the organization to more closely match it marketing
mix with the customers of same needs or demands.

Consumers can be grouped and served in various ways based on geographic,

demographic, psychographic and behavioural basis.

Ideally every consumer is a different market segment, but in order to

maintain the balance between mass production and focused on individualism
Surf Excel divides the market on the basis of income group, For each
identified segment they market the product in various sizes,

Surf Excel is the Market leader in the laundry detergent market; it caters
all the segment of the society by offering different sized of Stock Keeping
Units - SKU(s) segmentation based on different family sizes and the income
groups.

The reason for those SKU(s) is to pass maximum alternatives to the different
segments based on various economic classes and segments, Company also
launched a 15 gms packing in order to penetrate deeply in the less income
group whose income may less than 3,000 Rs., their SKU(s) are:

Segment Packing Price (Rs.)

2Kg 195
Higher
1 Kg 99
700 gms 75
Middle 400 gms 45
100 gms 15
35 gms 5
Lower
15 gms 3

Those SKU(s) allow Surf Excel to deeply penetrate in the market by

covering all possible washing powder consumers, based on income group. It
also enjoys the market share of around 38% among the total branded
laundry detergents in Pakistan.

35 and 15 gms SKU(s) are also called hanging SKU(s), it targets in lower
class of society areas, like Orangi Town, Sohrab Goth, Shair Shah.
Company gives special focus on the availability and visibility of these
particular two SKU(s) (35 & 15 gms) in all shops of those low-line areas.

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The purpose of focussing on these SKU(s) is to cater the demand of the
consumers as per their low purchasing power and capacity to buy the well

known brand and to generate more and more trials among the consumers to
make them brand loyal. That is why the company calls these small SKU(s) a
trial generation SKU(s).

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Marketing Strategy
Marketing strategy is much proactive. As far as the external environment is
concerned, they spend heavy amount on advertisement media. From the
whole advertisement expense, 80 percent of share goes to electronic media,
and the remaining 20 percent goes to print media.

Due to premium brand, they need to have heavy advertisement on electronic

media, and advertisement strategies based on consumer-pull.

In most of its advertisements, Surf Excel looks connected to famous

personalities, such as recently they launched an ad featuring famous
Pakistan Cricketer Shoaib Akhtar.

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Positioning
Surf Excel positions a brand by saying ‘Complete Cleaning and care’. This
positioning does not only claim that the laundry detergent Surf Excel is a
stain remover but it also claims that it is gentle on the fabric texture and
colour, meaning it is hard for stains by removing them instantly, and soft for
the fabric material by increasing its life.

Surf Excel is one of the first detergents in the laundry industry, which not
only positions itself as a stain remover but also builds an image for the care
of fabrics by increasing the life of the fabric.

Most of the other laundry detergents just focused only on stain removing and
does not target properly for the care of fabrics but Surf Excel contains
‘Smart Stain Sensor’ that direct active cleaning power to where it is needed
most, and it does not only remove stains, but it also gives fragrance and
increases the life of fabrics.

So Surf Excel positions its brand as more consumer focused and gives
them a thorough understanding of the product.

From the positioning point of view, Surf Excel gives a feeling of family
among the consumers.

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Packaging and Labeling
Surf Excel has recently changed its colour scheme from dark colours to
light and smooth colour combinations.

The reason of this colour combination is to attract consumers with

sophisticated light colours and to differentiate between the old stocks which
had different fragrance. The new fragrance used is different and pleasant.

Surf Excel has also changed the written material on the back side of their
package. They have introduced child stories on the back of the packing
material to attract families.

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Loyalty Pyramid
The company has always taken care of its committed customers by offering
them the best stain removing quality at a reasonable price. This product also
provides customers with different consumer promotions, like ‘paint masti’
and other events.

Due to all these activities and other consumer promotion factors, consumers
are emotionally attached with this brand.

In the loyalty pyramid, most of the customers come under the category of
committed buyer, and they argue if someone asks them to change the brand.

Committed

Brand Friend

Satisfied Buyer (Switching)

cost)

Satisfied / Habitual Buyer (No Reason for

change)

Switcher / Price Sensitive

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Product Life Cycle
Surf Excel has regained its market share, and the number of consumers is
increasing day by day. It is able to do that due to the fact that it has the best
stain removing quality and gives a pleasant fragrance after washing which
captures the heart of consumers.

After seeing the purchasing power of different segments in the society and
keeping an eagle eye on the competitor’s move in the market, they cut down
their prices in order to facilitate the consumers and to maximize its use and
in the same way to generate the trials even in the lower classes of the
society.

The soap industry is gradually decreasing day by day, and consumers are
switching from soaps to laundry detergents, because of ease of use and
attractive fragrance. Surf Excel is into the growth stage, the market size
and the relative market share is increasing day by day.

Growth
Decline Due to
Ariel (1997-2000)
2002-2003

Introductory
2001

Product Life Cycle

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Sales Promotion and Advertisement
The brand advertisement plan is based on an annual basis, which is made on
the basis of assumptions and competitors’ moves. These plans are discussed
and reviewed every month and modifications / changes are made if required.
If any change is required than it needs to be approved from the Directors.

They divide the advertisement budget into two parts, first part is focused on
theme advertisement, and other focused on promotional activities.

As a premium brand Surf Excel needs to have heavy advertisement on

television. Other media also used keeping in view the target consumers.

The reason for heavy advertisement on Television is because TV is the major

influencer media, so major share of the advertisement goes to TV.

For Promotion purposes, they give

• Trade offers
For trade offers, they offer 36 Rs. Discount per carton etc.

• Sales Force Promotion

For distribution sales force, they give 1,000 Rs. to the District sales
representatives (if they achieve their targets).

• Consumer Promotion
For consumers they offer promotions from time to time by providing
offers such as 25% Extra quantity, 26 Rs. off, they also some times
include sachet of the other products in order to generate the trials of
different Unilever brand SKU(s) through the strength of Surf Excel’
large consumer base.

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Channel and Customer Department (C & CD)
In C & CD, first comes the Director, under that Director comes a General
Sales manager, this General Sales manager leads five Regional Managers in
the country, Regional Manager of Karachi leads five Area Sales Managers
(ASM), and each Area Sales Manager has eight Territory Sales Officers
(TSO).

This department is responsible for the sales target of the entire Pakistan,
basically targets are given by they region (Singapore) and than the C & CD
department distributes the targets accordingly to the contribution of each
different region in Pakistan.

C & CD Director

General Sales
Manager

Regional
Manager Regional Regional Regional
Regional
(Karachi) Manager Manager Manager Manager

5 ASM
Each ASM has 8 TSO’s

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Pricing Consideration and Approaches
Keeping an eagle eye on competitors’ moves (such as Ariel) which recently
decreased their prices by 20 - 25%, to get maximum share from Surf
Excel (Ariel has already experienced this price penetration strategy in
Vietnam, Malaysia and India where they have significantly increased their
market share from 13% to 44%). Unilever - due to this threat and to
maintain the market share in its laundry detergent business - took proactive
action and practiced the product penetration strategy with reference to Ariel’s
moves; the company has decided to reduce prices of its Surf Excel Brand
by 20-25%.

The price of the one kg pack of Surf Excel will now be reduced from 125
Rs. to Rs 99 Rs (1 Kg pack), The need of reduction of prices arises when the
nearest competitor reduces his prices in Vietnam and other countries, and by
reducing the prices is able to get double its share in the market.

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 Distribution Channel and Supply Chain Management
Unilever has an Intensive dealership network of 450 distributors all over the
Pakistan, Unilever also prohibits distributors from carrying competitive brand
of competitors. For distribution it supports intensive distribution policy which
suggests targeting the product through each and every outlet.

In Karachi itself there are 7 distributors for all its products, those 7
distributors distribute the product all over the 17,500 shops twice a week,
form those 17,500 shops there are 2,000 whole-sellers, who distribute the
supply further to the other 7,000 shops.

Unilever
Distribution

Apex Gizri Irfan

Marketing Al-Hamza Saya Creative Mehtab
Corporation Traders
Services

• Apex – Federal B Area, Gulshan, Gulistan – E – Johar.

• Gizri - Defence, Soldier Bazar, Pakistan Chowk, Saddar, Bahadurabad,

and Tariq Road.

• Irfan Traders - North Nazimabad and Buffer Zone.

• Al-Hamza - Orangi town.

• Saya - Juria Bazar.

• Creative - Shah Faisal Colony, and Malir.

• Mehtab - Landhi and Korangi.

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Market Distribution
Unilever distributes Surf Excel in the market through the following
channels:

Market
Distribution

Out of Home
General Trade Modern Trade

General Trade
All classes of retail outlets, such as A, B, C, D, E and the whole-sellers are
targeted by general trade, Normal trade discounts, offers and consumer
promotions are given by the company and time to time merchandising
competition are run.

Out of Home
The markets such as Hotels, restaurants, and Army CSD’s stores are covered
by this distribution channel.

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Modern Trade
In order to retain and maintain the customer base especially in the upper
class, upper lower class, and upper middle class of the society. Modern trade
focuses on self service stores. Special and trade offers and consumer
promotions are run by the company along with the creative merchandising
competition, these all activities are meant to capture the market, and
maintain its customers and to increase brand loyalty.

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Conclusion [SWOT ANALYSIS]
Unilever has an efficient distribution structure for Surf Excel. In order to
conclude all the things which we discussed or enumerated hereinabove, its
looks more appropriate to do the product analysis on the basis of Strength,
Weakness, Opportunities and threats [SWOT Analysis].

Strengths
• Since Surf Excel or just Surf has been in the market of Pakistan
since 1960, therefore it has an ultimate strong brand image.

• Industry analysts said Surf Excel will now become the mother brand
and a market leader.

• Keeps the colour of fabrics as original and vibrant.

• Surf excel is a better stain remover, with active oxygen formulation

it removes a range of stains such as chocolate, ink, egg yolk, blood,
turmeric and coffee.

• Strong back-up of highly professional and trained Brand and Marketing

Managers and a strong company name Unilever.

• Extensive knowledge of market.

Weaknesses
• Surf had become a very generic name over the years. There was thus
a fear that customers would switch over to some other competing
brand, unknowingly, even without paying attention to the brand of the
product.

• Unable to market rural area properly, which consist of around 70% of

total.

Opportunities
• Still lots of consumers use open laundry detergent without any brand
recognition, so they can expand and enter the growing market.

• The market for laundry detergents is growing day by day, and many
consumers are switching from bar soaps to laundry detergents.

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 • Increase number of working woman with changing life style, who
needs comfort and easy to use laundry detergents.

Threats
• Ariel is its closest competitor. Due to policies of Ariel, Surf Excel also
needs to review its prices again and again.

• Ariel takes quick decisions.

• Low literacy rate in Pakistan, and agitation against foreign companies

may become a threat and consumers may stop using the foreign
products.

Overall it was a great learning experience for us and it provided us a

new horizon of knowledge and endeavor.

References:
• Mr. Sabeen Fazli (Marketing Manager) Unilever Main Head Office
Karachi Phone No 5660062.

• Mr. Muhammad Feisal (Senior Manager, Marketing) AKUH

Karachi Phone No 4930051 Ext 2692

• Ms. Aisha Arslan (Senior Marketing Executive) AKUH Karachi

Phone No 4930051 Ext 4621

• WWW.unileverpakistan.com.pk

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