Case study -Surf Excel-Unilever (Shubham Mhasane, PGDPM 1405018)

Case study on 

Marketing Strategy of Surf Excel-Unilever

Introduction to Unilever

Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods Company with a heritage of over 80 years in India and touches the lives of two out of three Indians. HUL works to create a better future every day and helps people feel good, look good and get more out of life with brands and services that are good for them and good for others.With over 35 brands spanning 20 distinct categories such as soaps, detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea, coffee, packaged foods, ice cream, and water purifiers, the Company is a part of the everyday life of millions of consumers across India. Its portfolio includes leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair & Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent, Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.

The Company has over 16,000 employees and has an annual turnover of INR 27408 crores (financial year 2013 - 2014). HUL is a subsidiary of Unilever, one of the world’s leading suppliers of fast moving consumer goods with strong local roots in more than 100 countries across the globe with annual sales of €49.8 billion in 2013. Unilever has 67.25% shareholding in HUL.

Brands in action 

From long-established names like Lifebuoy, Sunlight and Pond’s to new innovations such as the Pureit affordable water purifier, the range of brands is as diverse as our worldwide consumer base.

Unilever has more than 400 brands, 14 of which generate sales in excess of €1 billion a year.

Many of these brands have long-standing, strong social missions, including Lifebuoy’s drive to promote hygiene through handwashing with soap, and Dove’s campaign for real beauty.

About Surf Excel

Surf Excel, launched in 1959,is one of the oldest detergent powders in India and Pakistan. Initially the brand was positioned on the clean proposition of “washes whitest”. However, with the emergence of numerous local detergent manufacturers and the entry of other global brands, Surf Excel underwent various changes in its brand communication. This is in line with the global communication platform of ‘Dirt Is Good’ , which is a communication strategy of Unilever for its premium detergent products, sold under various brand names; such as Omo in Brazil and Persil in UK and France. Now the mothers have the freedom to let their kids experience life without worrying about stains

Success strategies

Surf Excel, as a brand, defines its own winning strategies, as:-

·         Winning with brands & innovation.

·         Winning in the marketplace.

·         Winning through continuous improvement.

·         Winning with people.

Surf Excel Market Share in India

The synthetic detergent in India is carectorized into:-

• Premium (Surf, Aerial)
• Medium (Rin, Tide)
• Economical (Nirma)

Among this premium category HUL leads market by 60%.

Marketing strategies 

4 Stages of costumer lifecycle

Uniliver believes in customer attraction, retention, growth & survival. They identify the ideal costumers, and group them as a separate costumer segment. In order to maintain & retain these customers they usually adopt the following measures:

• Customer segmentation;

• Customer profitability objectives;

• Customer lifetime value;

• Generating profitable leads;

• Low-cost acquisition of customers;

• Effective onboarding to reduce churn.

With this information an they develop both a targeted customer acquisition and

retention strategy and up-selling programs; furthermore, it also leverage the desired

communications channels in order to improve lifetime customer value.

In order to emphasize it they have generated their own 5 lever program; lets have a look at it.

   4 P’s (of Services)

 Product

Surf Excel came up with the idea of "Surfing along, par Excellence"!! It has a wide product range which includes-

• Surf Excel Top Matic
• Surf Excel Front Matic
• Surf Excel Blue
• Surf Excel Quick wash
• Surf Excel Bar
• Surf Excel Gentle wash
• Surf Excel Quick Wash Detergent Powder
• Surf excel blue
• Surf excel gentle wash
• surf excel bar
• Surf Excel Matic Top Load

Price

The pricing Strategy for Surf Excel have always been in accordance with its competitors.

A change in pricing strategy for HUL’s Surf Excel brand, which dominates the 5000 crore detergent powder market,seems to be on the cards.

The FMCG major conceded that its price reduction strategy has not yielded any value gains for the brand and had,in fact, led to its ‘commoditisation’.

HUL has announced a drastic reduction in price by Rs. 20 per kilo on surf excel,its premium detergent brand, making it equal to competing brand Ariel from P&G. Price cut from Rs 155 to Rs 135 per kg.

HUL is now reworking its Surf Excel Strategy by moving away from positioning the brand on functional benefits to building an emotional connect.

COMBO OFFERS

• Surf Excel quickwash 1 kg Rs. 146 + Comfort fabric conditioner 200ml Rs. 29 = Rs. 175
• Pay Rs. 163*/- for the combi pack and save Rs. 12/- *(inclusive of all taxes)
• 16 litre bucket pack free with 3.3 kg surf excel blue, & so on.

Promotion

They started promoting via various means like Print media, Electronic media, Live Demonstrations, Social Events etc.

Apart from these they made various catchy lines in order to gain customer attention & get promoted like:-

•  Dirt is  good: “Daag achhe hain.”
• “Phir waqt hai khelney ka”
• “Kharay ko meetha banaye”
• “The machine is not guilty,use the right detergent”
• “Surf Excel hainna”.
• “ Surf Excel easy wash, now has power of 10 hands.” Etc.

Lets have a look at a commercial used for promotion 

Place and Distribution

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 Stockist 2000+ Suppliers & Associates.

DistriBution Network

Factory Company warehouses Distributor Market.

Factory Wholesaler & Big retailers (Bulk orders) 30% Sales.

They follow HUL’s Distribution strategy. HUL‟s distribution strategy has changed over time. Earlier wholesalers andlarge retailers used to place orders directly to the company. The company salesmen used to collect these orders and then deliver the goods to the concerned customers. This simple system was good enough in the beginning. But then they changed things in order to provide quality service to its customers. They appointed one wholesaler in each market as a Registered Wholesaler. This wholesaler was then theguy to whom all the salesmen went with the orders that they have taken. He handed over the products to the salesmen who then distributed them to the customers. This strategy helped they to reach more customers. As time went by and the competition got tougher, HUL had to make its distribution network leaner and meaner than ever before. Also, Surf Excel being a detergent powder is a FMCG. So they had to make sure that the retailers‟ shelveswere replenished in time. To do that, they had depots all over the country. These depots or warehouses stocked finished products and acted as buffers in case of anincrease in demand. Earlier the registered wholesalers used to get the goods direct from the company. Now the company sent the goods to the depots from where the redistribution stockiest.

STP of Marketing

Marketing Segmentation

Surf Excel divided the market into 5 major segments

• Quick wash
• Easy stain removal and whitening
• Travelling
• Water conservation
• Car washing.

Targeting

SKU’s (Stock Keeping Units) Sachet packs (Rs.2) of Surf Excel are targeting mass market consumer,convenience and affordability.

Targeting upwardly mobile group with increase in disposal incomes. They have basically divided consumers into three groups- Rich, Aspirers and Strivers and have compared target sequences from 2003 to 2013 and it was seen that in 2003 Strivers were maximum in number then next came aspirers and finally rich ones.

Positioning

Positioning of surf excel is due to:

• Brand name

• High quality

• Attractive packing

• Removes stains 10/10

• Dirt is good (every child has the right to play and discover his own world)

Case study on Colgate by Upendra Kushwaha

CASE STUDY ON NESTLE BY AMITESHWAR PAL SINGH. ROLL NO-1405001

CASE STUDY

Introduction to company

Nestlé's relationship with India dates back to 1912, when it began trading as The Nestlé Anglo-Swiss Condensed Milk Company (Export) Limited, importing and selling finished products in the Indian market.

After India's independence in 1947, the economic policies of the Indian Government emphasized the need for local production. Nestlé responded to India's aspirations by forming a company in India and set up its first factory in 1961 at Moga, Punjab, where the Government wanted Nestlé to develop the milk economy. Progress in Moga required the introduction of Nestlé's Agricultural Services to educate advice and help the farmer in a variety of aspects. From increasing the milk yield of their cows through improved dairy farming methods, to irrigation, scientific crop management practices and helping with the procurement of bank loans.

Nestlé India manufactures products of truly international quality under internationally famous brand names such as NESCAFÉ, MAGGI, MILKYBAR, KIT KAT, BAR-ONE, MILKMAID and NESTEA and in recent years the Company has also introduced products of daily consumption and use such as NESTLÉ Milk, NESTLÉ SLIM Milk, NESTLÉ Dahi and NESTLÉ Jeera Raita.

Nestlé has been a partner in India's growth for over nine decades now and has built a very special relationship of trust and commitment with the people of India. The Company's activities in India have facilitated direct and indirect employment and provides livelihood to about one million people including farmers, suppliers of packaging materials, services and other goods.

Brand maggi

NIL introduced the Maggi brand to Indian consumers when it launched Maggi 2 Minute Noodles, an instant food product, in 1982 (Refer to Exhibit III for the history of the Maggi brand). At that time, Indian consumers were rather conservative in their food habits, preferring to eat traditional Indian dishes rather than canned or packaged food. In fact, NIL was trying to create an entirely new food category, instant noodles, in India. Initially, the company targeted working women on the premise that Maggi noodles were fast to cook and hence offered convenience.

NIL aggressively promoted Maggi noodles through several schemes like distributing free samples, giving gifts on the return of empty packs, etc. NIL's advertising too played a great role in communicating the benefits of the product to target consumers. 

4 PS Evaluation

PRICE:

·         Considering the price points in the market for maggi, it should continue to position itself in the snacks.

·         Affordable by all income groups

·         Differentiated packaging

·         Lower price point strategy

·         Millipack for rs5- targeting the lower middle class as well as those who want to consume in lesser quantity.

·         Inflation effect on volume than price- reduction of 100gm pack to 95gm, keeping price as rs. 10 only

·         Multi packs at cheaper price per noodles

Place:

·         Wide distribution network.

·         Limited penetration in rural areas.

·         The company has a complex supply chain process.

·         Target roadside eating joints.

·         The distribution network is well spread.

Product:

·         Quality

·         Models and sizes

·         Packaging

·         Brands

·         Service

Promotion:

·         Nestle also followed up these launches with ‘it’s different’ ad campaigns.

·         Nestle was focusing their ads based on children’s taste and health.

·         In addition to promotional activities, maggi associated itself with mainstream television programme and advertised heavily on kids channels.

·         Maggi is now targeting its products at the entire family and not only kids.

·         Maggi has recently launched “MAIN AUR MERI MAGGI” campaign in commensuration of 25 years of maggi in India.

      Main aur meri maggi:

https://www.youtube.com/watch?v=zlSzIp4G34U&hd=1

  

STP:

Segmentation:

Market segmentation divides the heterogeneous market into homogenous groups of customers who share a similar set of needs/wants and could be satisfied by specific products. Maggi Brand has segmented the market on the basis of lifestyle and habits of urban families.

Targeting:

Market targeting refers to evaluating and deciding from amongst the various alternatives which segment can be satisfied best by the company. The maggi brand have mainly targeted the kids, youth, office goers and working woman which falls into the category of convenience-savvy time misers who would like to get something instant and be over with it quickly.

Positioning:

Market positioning is the act of designing the company’s offerings and image to occupy a distinctive place in the minds of the target market. The goal of positioning is to locate the brand in the minds of consumers to maximize the potential benefit to the firm. Maggi has positioned itself in the snacks category and not in the meal category since Indians do not consider noodles as a proper food item. Therefore maggi have developed its brand image of instant food products with positioning statements such as “2 minutes noodles” and “easy to cook” and “good to eat”.

Differentiations:

Points of difference are attributes or benefits consumers strongly associate with a brand positively evaluate and believe they could not find to the same extent with a competitive brand. The maggi brand has also differentiated its brand image from its competitors in terms of taste, flavors and packaging. Maggi have launched wide varieties of products in different flavors which can attract larger set of consumers. Maggi products are also available in different sizes catering to different customer needs.

     

Unique selling price:

Convenience is and was the unique selling proposition of Maggi when it was launched in 1984. For the first time, consumers got something that was hygienically packed and convenient to prepare. It was also the first fusion experiment on food in India.

TWO minute maggi:

https://www.youtube.com/watch?v=OL0alNMvvsQ&hd=1

Case Study - Cadbury Dairy Milk (by-Shubham Sharma roll no-1405017)

(In case video does not stream for 6 mins do check complete video here
https://www.youtube.com/watch?v=FlBl-oAOYZ4&feature=youtu.be)
This video contains full case study of cadbury dairy milk.I  have tried to cover maximum aspects in this presentation,added my voice at behind to make the video more easier to understand.

India is the world's fastest growing market for chocolates. Registering 15% annual growth between 2008 and 2012, the Indian chocolate industry is projected to grow at an even higher rate in the coming years Currently, the Indian chocolate market is worth around Rs 5,562 crore and cadbury being contribuiting more than 60% of it.

Conclusion

The Indian Chocolate Industry is a unique mix with extreme consumption patterns, attitudes, beliefs, income level and spending. Understanding the consumer demands and maintaining the quality will be essential. Pricing is the key for Cadbury’s to make their product reach to every consumer houses. Right pricing will make or break the product Success. There’s also an immense scope for growth of chocolate industry in India, geographically as well as in the product offering. So we think that bringing online sales(through facebook) & increasing the institutional sales(in unique way) would bring prosperity and increase the sales of Cadbury’s as a whole again resulting in the goodwill of the company.

Recommendations

 Maintain dominance in chocolate segment.

 Many new players are trying to enter Indian market so it should formulate new strategies so as not to lose market share.

 New channels such as gifting, child connectivity and value for money offering to be the key growth drives.

 FDI will bring in many new products and competitors so Cadbury will have to maintain their strong market distribution channel so as not to lose market share.

 They need to maintain high standards and should be careful that there product remains sterile. And is not effected by insects.

                       A case study of Red Bull Company

                                       

Red bull   Industry

•      In 1982, Dietrich Mateschitz became aware of products called "tonic drinks", which enjoyed widespread popularity throughout the Far East.

•      In 1984, Mateschitz founded Red Bull. He fine-tuned the product, developed a unique marketing concept and started selling Red Bull Energy Drink on the Austrian market in 1987.

•      However ,  such energy drinks was first-time invented in Thailand.

•      Today Red Bull has become the worlds leading energy drink, selling more than 4.6 billion cans in 2011.

•      This was not only the launch of a completely new product, in fact it was the birth of a totally new product category.

Red Bull  as a BRAND

·        Marketing is not a battle of  products  ,  it is a battle of perceptions

·        The best brand change our perceptions of the world.

·        “ Don’t  define your brand by  what you make, But by what you make happen.”

·        Red Bull inspires us to explore our  limits , and achieve something more

·        A great brand’s value proposition extends beyond its products.

·        Today Red Bull is available in more than 166 countries and around 40 billion cans of Red Bull have been consumed so far.

·        In 2013 selling more than 5.3 BILLION cans.

Value Proposition

A good value proposition statement is built on the below fundamental framework:

• For ( the target customer)
• Who (specific needs, demands, buying criteria etc.)
• We provide (solution name / brand description)
• That ( specifies benefits and business values to clients)
• Unlike (the competition)
• Who ( provide solution, features, functions, benefits)
• Our company (better approach, solution, functions, benefits)
• That (offers a better customer experience)

·         The value proposition of a company is the foundation on which its marketing strategy is based on.

·         It presents all the benefits and values that the business promises to deliver to its customers.

·         For example the value proposition of Red Bull energy drink is to fight mental and physical fatigue.

·         The company brand tagline goes “It gives you wings” and surely it does!

·         With this innovative marketing strategy and value proposition, Red Bull has covered 70% of the energy drinks market share.

·          Value propositions differentiate one brand from another and are crucial to your product image among your target customers.

Red Bull’s Sources of brand equity :

Red Bull uses the non traditional ways to chive its targets and unique approaches to create the brand equity.

Right from the beginning the company makes it very clears to it all its existing and potential customer the message of its product functionality in a clear way.

 Related to the pricing of the product company positions the product above 10% of the upper segment of thecompetition in order to create the mindset of the premium brand and also influencing people by not letting them buying a sample beverage drink.

 This also helps the company from being categorized different from other beverages company because its uses word-of-mouth marketing and creating the brand awareness by this way.

 Once the brand awareness is created then it resort  ads  within the TV and other related media channels.

The company also tries to create by mystique by participating and sponsoring events within the market even before the product is not available within the market.

 Also the company places the market instance relatively strategically by trading a niche audience and trying to influences them first rather than spreading out to the whole target of customers.

Those are the main sources of brand equity based on Red Bull:-

1 . Brand awareness is one of the sources of Brand Equity.

2. A consumer’s perception that the brand is better than it really is.

3 .A consumer’s preference for a brand based on cachet or status of owning it

1.     Awareness

Initially the Red Bull’s slogan was “Red Bull gives you wings”. 

Later on as the taste changed with the change of its ingredients . Earlier it was an energy drink and later it was functional energy drink. Mateschitz  devised the brand positioning that

Red Bull “Revitalizes Body and Mind”

This phrase conveyed the tangible benefit of the product in an easy grasping manner. It meant that Red Bull can be drunk any time whether it was morning, noon, or night. Thus  Red Bulls consumption was not limited to any occasion or activities.

2) Consumer’s Perception that the brand is really good than they actually it is:

Consumers  used to drink Red Bull to get some of these properties.

•Improve physical endurance.

•Stimulates metabolism and helps eliminates waste substances.

•Improves overall feeling of well-being.

•Improves reaction, speed and concentration.

•Increase mental alertness.

Marketing  Momentum

Red Bull has a fantastic marketing momentum and it has taken the nation by storm and continues to maintain it stranglehold on the every drink market-despite an abundance of competitors. Its seems like Red Bull is omnipresent: all over TV, sponsoring every sports and utilizing every other major form of advertising. While it may seem like Red Bull is flooding every advertising arena, in fact it does not. Red Bull has an advertising strategy that separates them from competitors and it has been paying dividends
.

Marketing Strategy

Red Bull has a distinctive approach to marketing. It uses a progressive marketing strategy. This type of strategy aims to constantly evolve and develop the brand. This approach allows Red Bull to engage with consumers using new and exciting channels of communication.

 In recent years social media has become a vital marketing tool for many organisations.

 Its increasing popularity, predominantly with young audiences, has had a huge impact on modern marketing techniques. Digital and social media campaigns are integral to Red Bull’s marketing strategy.

The role of the marketing function

To meet the needs of its customers, every organisation seeks a distinctive marketing mix.

This is often referred to as the 4Ps. It involves focusing on:

 Product – the specific features and benefits of the product.

•      Red Bull is a sweet, caffeinated drink aimed to give consumers the high energy kick. Available only in rather expensive 250ml cans, 350ml bottles, with 4 packs and only two flavours  (original or sugar-free). It contains caffeine, taurine , and B vitamins.

Place – where and how the product is sold

•      RedBull are using tactic not to have official shops of their production. Instead of that, company are cooperating with local markets and exporting production by minimalizing sales cost to a minimum.

 Price – setting the right price in each market

•      Price of RedBull is premium price all over the world.

•      Highest in the market.

•      Varies from 2 to 4 dollars per can.

 Promotion – using the most suitable form of promotion to reach customers.

•      Strategy called word-of-mouth or “Buzz-Marketing”

•      “We do not take product to customer. We take customer to the product” Mr. Dietrich Mateschitz

•      Promotion job for youth

•      Promotion through lifestyle

For example, the marketing mix for Red Bull Energy Drink is based around:

 A distinctive product - the taste of the product is unlike any other, it also has a functional effect in comparison to other soft drinks

 It is easy to obtain as it is sold in a variety of places – including retail outlets and food  and drink establishments·

 Red Bull uses a premium pricing strategy. The product is priced above that of competitors’ products. Consumers will pay a premium for Red Bull due to the quality of the product and the product’s benefits. This is reflected in the fact that it is the world’s best-selling energy drink. However, perhaps the most interesting element of Red Bull’s marketing mix is its approach to promotion.

 Red Bull embraces innovation within its promotional activities and as such is able to create a lasting impression on consumers.

 The concept behind its promotional activity is to give people ‘Wings’. This translates as pushing the boundaries of what is possible and nurturing people's talent so they can achieve their goals and dreams. The aim of the promotion element of the marketing mix is to grow the business and increase market share.

Businesses develop a promotional strategy in order to encourage customers to purchase their products. Many base their approach on AIDA principles. AIDA

is an acronym that is shorthand for the stages in a sales process.

Product Categorization

Segmentation / Target Market

Direct and indirect competitors