Strategic Marketing & Planning

Sehr Nafis

Nazia Nasir

Introduction to Industry

Laundry Market in South AsiaPakistan’s Laundry IndustryIntroduction to UnileverUnilever’s Market share in PakistanIntroduction to SURF EXCEL

Customer Analysis

Competitor Analysis

Perceptual MappingCustomer based approachStrategic groups approachEvaluating competitors

Market AnalysisDistribution StructureActual Market SizeMarket Growth PotentialIndustry Attractiveness Summary

Environmental Analysis

Internal Analysis

Recommended StrategiesObjective of SURF EXCELCurrent Marketing Strategy Future Strategy

Introduction to Industry

Laundry Market in South Asia

Pakistan’s Laundry Industry

Pakistan’s Laundry Industry

Detergent Market Soap Market

Laundry powder 240000 tons(10 billion)

Laundry Soap 420000 tons(17 billion)

Major Players in Detergent Industry are

Unilever..

Vision

Mission

Touching HeartsChanging Lives

Mission is to add Vitality to life. Meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.

Grow superior brandsImpactful innovationCompletive functional benefitsImpactful and effective communicationWin with customersDeliver best customer serviceFit to competeDeliver vitality

Core Values

Unilever’s Market share in Pakistan

SURF EXCEL

Surf excel was launched in 1995 in Pakistan They have always believed that dirt is a valuable way to enrich our lives, both young and old.

Launching affordable SKU’s

Reduce the time, physical effort and amount of water needed to wash clothes by hand

Customer Analysis

Geographic Segmentation

Location All over Pakistan (rural urban)

Population 180million approx

Demographic Segmentation

Age 18 and above

Family Size Small / Nuclear Family

Occupation Housewives / Mothers

Target Market

Physiographic Segmentation

Class A / A- / B+ / B / B-Those who want their kids to learn while growing but conscious of dirt.

Psychological Characteristics

Brand Conscious, Status Conscious, Highly Educated, self motivated

Behavioral Segmentation

Motives Self Actualization

Category High End Needs

Involvement Low Involvement

Benefit Sought Segmentation

Stain Removal Want stain removal in one go/wash

Customer Analysis

Customer Motivations

Unmet Needs

Complete cleaning of stains and all in just one wash

A customer wants to save energy and water while doing their laundry.

Customers want to reduce the laundry burden and thus are looking for complete cleaning of stains in one go.

Customers looking for a detergent which takes care of their hands also (doesn’t dry them)

Over price and quality customers prefer good quality so that their laundry job is done without any nuisance

Reduces wrinkling so less ironing.

Uses less water-with water issue.

Anti bacterial formula-doesn’t allow germs to form when you sweat

Going for different skin types/allergies-people who have dry

Competitor Analysis

Perceptual Mapping

Low Quality

High Quality

Low Price

High Price

Direct Competitors

Class A / A- / B+ / BFamily Size Small FamilyOccupation Housewives /

Mothers

Class B / B- / C+ / CFamily Size Medium / Big

FamilyOccupation Housewives /

Mothers

Evaluating Competitors

Marketing Objectives

To increase market shareSwitch consumers from existing brand to Ariel Product innovationBrand loyalty increase

Variants Currently there are only 2 variants available

Ariel OriginalAriel Jasmine

Ensure top of mind recall

So that the consumer can remember the brand amongst competition

Strengths of Ariel Weakness of Ariel

Economies of scaleGood distribution NetworkCaptures shelf space Perceived as premium brandHuge R& D-Financially backed by P&G

Considered no2 with respect to surf excelNo variants in Pakistan (surf excel has surf excel matic)

Customer Benefit-

Right now Ariel is focusing on giving customers savings up to Rs.100

Ariel is associating the brand with customer on the bases to give them superior quality and makes the ground for customer to provide a theme which cause to have happiness.

Target Market ARIEL target market includes Middle Class, Upper Middle Class and Upper Classes of the population of Pakistan. The Ladies of Pakistan who are very conscious about their family.

Market Positioning

Trusted and premium brand of Pakistan. customer satisfaction to their consumers.

Now they are also focusing on savings where surf excel focuses on dirt being good for development Ariel uses savings approach.

They have previously used Mrs Zubaida Tariq who is considered and expert on household advisory telling to use Ariel like she tells tips i.e. Totka’s.

Evaluating Competitors

Evaluating Competitors

Marketing Objectives

Increase Market Share

VariantsBrite SurfBrite Total

Ensure top of mind recall

“Chamaktee Safai”Brite Total’s

Customer Benefit-

Whiteness + ShineBest Quality / QuantityAffordable prices

Target Market

Lower Middle Class, Middle Class, Upper Middle Class and Upper Classes

Market Positioning

Ultimate clothes washing solution. Regardless of the texture, quality of cloth,

There tag line includes “Daag to chala jaye ga par yeh pal wapas nahi aye ga”

Strengths Weakness

Well known detergent, has strong market presenceCleanlinessGood distribution ( due to C&P

No line ExtensionNo variety (no machine powder etc )Focuses on Stains which is surf excel’s positioningNot as such perceived as a premium brand

Market Analysis

Distribution Structure

DetergentIndustry

National Sales Distributor

Regional Sales Distributor

Common Distributors

Wholesalers

Retailers

Macro Outlets

Retailers

Final Consumer

2008 Distribution Share

Market / Product SegmentDistributor

/ RetailDistributor/ Wholesaler

Detergent Industry 55% 45%

2008 Distribution Share Competitors

CompaniesDistributor

/ RetailDistributor/ Wholesaler

Unilever 50% 50%

P&G 60% 40%

Distribution Structure

Actual Market Size

Market demand of 230,000-240,000 tons of detergents.

The local detergent industry is producing around 175,000 tons.

There is demand-supply gap of about 55,000 tons.

Laundry Detergent Powder (LDP), as its market stands at 240,000 tons annual with a growth almost 10 percent a year.

Unilever has 40pc of the market for detergent powder.

In the Budget 2009-2010 it was stated that Annually, local producers supply the local market with 660,000 tons of laundry soap [420,000 tons]

Market Potential

Detergent Market is growing by 10-12%.

At present Consumer prefer detergent on the base of quality, especially the upper class they are very quality conscious

Pakistani Peoples are moving from rural areas to urban areas as life style is changing.

Advertising is promoting the detergents by comparing the functionality of different detergents and laundry Soaps.

Increase awareness of usage benefit of detergent.

Preference to use detergent to avoid the bad smell which comes from washing with soaps (as advertised by LDP’s)

Industry Attractiveness Summary

Components ImplicationsThreat of new entrants High

Bargaining power of buyer Low

Threat of substitutes Moderate to low

Bargaining power of suppliers Moderate to low

Threats of rivalry among competitors

Moderate to low

Internal Analysis

SWOT Analysis

Strengths Strong brand image and brand awareness of ‘Surf Excel’.

Large sales force.

Strong and healthy relationships with distributors and retailers.

Strong brand portfolio

Wide Innovation aspects

Excellent distribution

Success of slogan-stains are good

WeaknessStrong competitors

High price of product

Substitute product

Opportunities

Changing life style

New markets

Increased standard of living

More awareness

High rate of population growth.

Rising literacy.

Threats

Unbranded/ smuggled washing powder

Political issues

Rising inflation,

Profit margin is exposed to rupee devaluation.

Threat of imposing regulatory duty

BCG Matrix

Asset & Competencies

Retail ReachesR&D

PeoplePerformance Analysis

VariantsBrand

Brand Association

Stain removal Powerful cleaning

Brightness of colors intactGood packaging

Good fragrance

Brand Advertising

Brand Update

Brand Positioning

Recommended Strategies

Objective

“To be the best possible cleaning solution in the market”

Sub - Objective

Approaching new marketsInnovation

Maintaining brand loyalty

Current Marketing Strategies

Focusing towards Surf Excel Matic

Focusing Brand Association for current Brand

Research has shown high penetration of washing machines in Pakistan.

70% penetration in rural and over 90% penetration in urban areas.

Cleaning criterion in washing machines is different.

Hence the need for a stronger more compatible powder

4-P’s of Marketing

Product Launching a specialist powder which is exclusively used for machine washing.

Price Matic is a superior powder that costs more to maintain certain margins hence the higher price.

Place Same distribution through modern trade (superstores) and kiryana stores etc

Promotion

Regular education and awareness-building campaigns

Stock availability in relevant outlets.

Moreover, as consumers become more aware it is important to build credibility of an offering like Surf Excel Matic.

To fulfill this requirement, Surf Excel Matic has also made co branding arrangements with Pakistan’s leading White goods manufacturer Dawlance

Future Strategy

They could come up with Surf Excel Anti Bacterial and Ultra Violent Protection.

Currently mothers are concerned with health issues for e.g. if a child is playing in mud, or is holding a dirty dog, or vomited on his clothes, than there are chances that he is playing or bringing in germs as well. So when she's washing the clothes she's removing just the dirt and not the germs which are in the clothes.

Secondly you are not even sure if you are transferring germs from one bucket into another.

Strategy Alternatives

Improve packaging of product as the current plastic bags once get opened are hard to maintain and handle.

Branding some local laundry shops and selling the product to those shop owners at minimum revenue.

Go into new products like liquid washing solution / laundry detergent that is super concentrated so you use 75% less liquid could be the, meaning less packaging and easier carrying.

Or attracting consumers through detergents with functional benefits such as scents, creating new forms of products such as liquid detergents.

Entering adjacent markets such as the pre-wash and post-wash segments.

Strategy Alternatives

Value Proposition

Functional Benefits

Cleans and protects

Emotional Benefits

Dirt is good

Self expressive

Learning by doing

Target Market

Marketing Mix

Product An innovative product which caters to environmental concerns. A product which deals with the harmful UV rays. So you can go out more in the sun without worrying too much about the rays.

Pricing Surf excel is a premium product and is giving health benefits thus a higher price will be charged.

Promotion Using TV advertising and radio as well as news papers and billboardsPromotional campaigns like Games Masti which was done in 2007, there can be an event which indulges kids in games and educates the mothers about what their child is up against when he or she is playing out in the sun. Regular advertising will be used which will transcend any communication barriers.

Place Available in all the retail outlets where Unilever has presence to have more market reach more retail outlets can be channelized.

Operation Plan

Assets and Competenc

ies

Good Company

Image

Good Retailer Network Organizati

on Culture

Communication Strategy

Events

Unilever Pakistan