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Realities in the
Detergent Industry and
Guidelines 2012



A Study & Analysis of Laundry
and Detergent Market


Report Compiled by PSTC Team
November 15, 2011












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TABLE OF CONTENTS

1. PART 1 HOME & PERSONAL CARE INDUSTRY 3
2. PART II LAUNDARY INDUSTRY ANALYSIS 4
3. PART III LAUNCHING A NEW DETERGENT 11
4. PART IV A REPORT ON COLGATE-PALMOLIVE 20
5. PART V RELAUNCH OF OLD BRAND BY UNILIVER 33
6. PART VI MARKETING PLAN SURF EXCEL 35
7. PART VII RELAUNCH OF BOUNCER-Presentation by Muzaffar Nazish 55




















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Home & Personal Care Industry

The HPC industry is very diverse with different products directed at wide-ranging target segments and
income groups. The industry is highly concentrated with global players like ULEVER, P&G, Colgate
Palmolive and others. The quantum of smuggled and under invoiced goods has significantly increased
over the years with premium brands brought in from Indonesia and other regional countries. The low cost
of these offerings and high trade margins make them attractive to both consumers and retailers. This has
significantly hurt the volumes and margins of FMCG players in the market. This is especially hurting
ULEVERs soaps and detergents business which constitute major portion of HPC sales.

In Pakistan, a large growth in household care products can be anticipated in the coming five years. The
reasons attributed to this include migration of rural consumers to urban areas in search of employment,
rising disposable incomes, improvements in living standards and increased awareness of health and
hygiene. In addition, a better distribution network with the opening of larger urban hypermarkets will also
add to this.

P&G is constantly reformulating its products to fit the needs of the local consumer. It pioneered the
introduction of small sachets for various consumer products, including Ariel so that the price would not
burden people in the rural areas. Colgate- Palmolive introduced Brite in 1981 and a new improved version
in 2004 especially formulated with stain removal and dirt cleaning action. Surf Excel is the oldest
detergent brand to be present in Pakistan since 1960. The new brand communication for Surf Excel has
been positioned as dirt is good.

Laundry care products continue to dominate the household care environment accounting for 65% of the
total sales volume. Despite the low purchasing power of Pakistani consumers, MNCs dominate sales in
the household care market. The MNCs have the advantage of higher quality goods, lack of local
competition and heavy advertising and promotional campaigns According to the management, detergent
penetration is very low in Pakistan. About 50% of the population uses laundry soap for fabric wash.
Similarly, shampoo penetration is one of the lowest in Asia. Hence, tremendous untapped potential exists
in the detergent and shampoo market.

Soap industry in Pakistan produces approx. 75,000 metric tons of toilet soaps. Composition of soap is
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generally 80% fats and oil. Major raw material inputs include Tallow and Palm oil.


Laundry Industry Analysis

The Industry

The laundry care market has evolved over time. These changes have led to intensified competition
among rival producers and gradual expansion in consumer choice. The market currently faces strategic
challenges from changes in consumer needs and preferences as well as any future rise in outsourcing
and use of multi-purpose launderettes and from emerging washing technologies.

Highlights

UK consumers use washing machines most frequently each week although Pakistani consumers wash
their clothes more frequently overall with a combination of machine and hand washing. Consumers
everywhere hate doing the ironing the most of all laundry tasks and all household chores. Universally, no
less than 80% of respondents to Pakistani consumer survey reported this chore as the one they disliked
the most. Food and cooking are the most common causes of clothes staining and odor tainting for most
consumers. Cigarette smoke concerns consumers aged 25-34 the most, as this age group is most likely
to encounter the problem when going out for the evening. Smoking bans may lessen the importance of
this source of odors.

Explore regional and national differences through qualitative market data and compare growth and
penetration data to plan for future developments. Gain insight into the consumer preferences and
changing behaviors that will affect the strategic direction of the laundry care market. Explore in-depth
analysis of new products launched globally and action points that highlight existing best practice and new
innovations.

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 consumers 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.

Growth in industry

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.

Need for a wider consumer base

Increased competition in some categories has led to an increase in the variety of products which
constitute particular ranges. In others, it has led to the targeting of a larger consumer base through
increasing awareness of certain products usefulness and conducting brand awareness campaigns.
Overall, competitive pressure stemming from increased prices and the effects of the economic recession
led to some companies taking proactive measures during 2009 in order to gain value share by expanding
into unexploited categories of home care and seeking to differentiate their products among consumers.
International brands preferred by consumers
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A handful of multinationals dominate value sales in most categories of home care. Household name
brands in countries around the world hold a similar status in Pakistan. These brands represent quality and
availability and maintain a strong image. Domestic brands usually offer lower quality and represent a
cheaper alternative. Whereas multinationals use their resources to make a strong impression on
consumer consciousness, for example through advertising, local brands tend to have more limited
visibility. In view of the current high rate of inflation and the slowdown in the economy a considerable
proportion of consumers might be inclined to rethink their choice of home care product and shift to
cheaper alternatives.

Increased popularity of supermarkets and other large-scale retail formats

A number of multinational operators set up in Pakistan during the review period, with many new retail
outlets opening. This new trend also seems to be popular among consumers who increasingly rely on
these distribution channels for stocking up during periodic big shopping trips. This trend can be attributed
to the greater need for buying products in bulk at discounted rates due to the prevailing adverse
macroeconomic conditions. After meeting with success in Pakistans biggest cities Lahore and Karachi,
the impact of the increasing presence of these channels is now being felt in smaller cities such as
Rawalpindi, Islamabad and Faisalabad.

Growth in value sales, slump in volume sales

Although the global economy is expected to recover during the forecast period, there will still be
considerable inflationary pressures affecting the economy of Pakistan. However, volume will continue to
grow at a slow pace due to the nature of consumer demand for many of the products. Although volume
growth will remain at a low level, the jump in unit price will lead to a considerable rise in value sales.
However, any possible deterioration in economic conditions or delay in the expected economic recovery
will end up causing negative volume growth and very minute unit price increases as more consumers shift
to economy brands from their current choice of standard brands. Even if the economic recovery begins
soon, high inflation will still ensure that the magnitude of the increase will be much smaller and less
significant in real terms compared to nominal growth.

Major Competitors

Market share plays a prominent role in business research and standing in the
market. There are many competitors of detergent in Pakistan. Some of the leading brands are given

Surf Excel
Ariel
Express Powder
Brite
Bonus

Surf Excel
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.

4 Ps of Surf Excel

Product

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.
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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.
Price:

Size Price

1kg Rs 220

500gms Rs 110


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 .
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.


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).

Place

Unilever has an Intensive dealership network of 450 distributors all over the Pakistan, Uni lever 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.

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.

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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
differentU ni l ever brand SKU(s) through the strength of Surf Excel large consumer base.

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.

Product:

In case of P&G detergent according to their brand manager the attributes consumers seeks for are as
follows
1. Overall cleaning
2. Stain remover
3. Power of scrubbing (Build in additives)
4. Color care
5. Fragrance
6. Value for money
P&G have segmented their consumers in 3 different categories just like Colgate Palmolive have already
done. These categories are
1. Quality conscious
2. Price conscious
3. Mix of the above two

Price:
Size Price
1Kg Rs 220
500gms Rs 110

Positioning of Ariel

The positioning of ARIEL a Better cleaning in a simple way. Retailers influence consumers to buy a
particular brand but mostly on those brands in which they are getting high margins. In detergent category
consumers are highly brand loyal and they love to use those brands in their routine life and become
habitual of that particular product. Consumers only switches when one or more than one attributes do not
keep their promise; do not fulfill the expectations of consumers. P&G also emphasize the importance of
Distribution network that if product is not available at the shops on the right time and at the right place
how can customer will access to a particular brand. Now a day people are much more educated due to
media and they know the benefits of each brand.. The new concept of packaging was highly accepted
and appreciated by the customers. Customer basically do not look for packaging color and quality of
polythene bags what they want just a Quality product for them.

Express Powder
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The concept behind the launch of EXPRESS was to provide a premium quality detergent at a medium
price. This concept came into existence after a survey which gave the results that people are buying
expensive detergents because its their need , but they want a close substitute with a lower price so that it
is not hard at their pockets

POSITIONING STATEMENT:

REMOVES TOUGH STAINS ---------OTHERS LEAVE BEHIND.

4 Ps Of Express Powder

PRODUCT:

EXPRESS is a premium quality detergent which was launched at a 30% less price than other premium
detergents , because the main purpose of its launch was to penetrate in the middle segment market as
well as to break and capture the market of SURF by Lever brothers.

As a premium quality product at an economical price express gained huge success and just in a period of
3 years from its launch it became the market leader in 1989.

People from the middle level segment converted from soap users to express users , a big number of
unbranded detergent users also converted into express users and those upper level people who
purchased surf because it was their need but were not happy by its price, became express users.

All this brought a drastic change in the detergent market in Pakistan , and express was day by day
becoming a threat to surf.

PRICE:

EXPRESS was of the same quality as of surf but was priced 30% less , this was done to enter the market
and to create sales.

Express was the 1st ever Pakistani detergent to be marketed in polythene bags.
This strategy came into implementation because CP was giving top quality in express but priced it less ,
so she had to cover the cost somewhere. This was the main reason behind this startegy that they
launched express in poly packs and not in carton packing.

This change in packing strategy was a success because people got something new in form of packaging
and CP was getting its regular estimated profit by the decreased packaging costs because carton packing
is far more expensive than the polythene bags.

The company thought about launching express in a low price , because they conducted a survey , in
which they found out that there was a big number of potential detergent buyers who wanted an excellent
quality detergent at less price.

So this survey result became the backbone of the launch of express in order to convert those potential
buyers into actual buyers , and finally did managed to do so.

Size Price

1kg Rs 135
500gms Rs 65
PLACE:

EXPRESS is placed at stores in posh localities , as well in the middle level localities. The reason behind
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this placement strategy is that express was mainly launched for the middle income group. But it received
good response by upper level as well. It is never placed at a shop visited by people from lower income
level because it is not marketed in sachets , to cater their needs CP launched bonus which a a low quality
and low price so as to fulfill the detergent needs of low level income and group and also to convert soap
users into detergent users.
PROMOTION:

Promotion is an important factor and every company pays a lot of attention to it. In the case of detergents
various kinds of promotion techniques can be applied.

At the time of launching of EXPRESS in 1986 ,

CP made washing machine manufacturers recommend express to their clients.
The marketing team went at peoples homes to do personal selling and to answer their questions.
Express was a co-sponsor of the world cup cricket 1987 held in Pakistan.

At the time of re-launch of EXPRESS in January 2000,

CP made the quality control manager of Al-karam textiles recommend express for the protection of fabric
colors.

Bonus

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

Price:

Size Price

1kg Rs 75

500gms Rs 40

Brite

Colgate Palmolive - backed by Lackson Group of Industries, entered into the laundry detergent market by
launching a product with a nameBri te 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.

Price:
Size Price

1kg Rs 180

500gms Rs 90

Market Share

Surf excel 38%

Ariel 28%
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Bonus 18%

Brite 11%

Express 7%

The Surf Excel enjoys the largest market share of 38% due to its better Brand Image in the market and
better promotional compaigns.

Point of parity between Surf Excel and Ariel

Point of Parity Among two Brands
Stain Removal
Both Ariel and Surf Excel are focusing on the stain removal
Emotional appeal
Both companies following emotional appeal

Ariel
Focusing on mothers and cause marketing for charity by hiring celebrities
but not focusing on product and performance

Surf Excel
Focusing on kids and their learning process and to highlight the basic performance (stain removal) of
their product.

Whiteness and shine
Both the detergent companies are focusing on the shine and whiteness of the
detergents.
Packaging & sizes
Both the detergents are available in same sizes and packaging.
Point of Differences Among two Brands
Bleach Content
Ariel has a larger content of bleach in its formula that is better for cleaning
of white fabric ultimately giving it a more shiny and clean look. According
to Customer perception:

High bleach content in Ariel

Harmful for fabric fibers
Harmful for skin

Surf Excel is milder but strong Active ingredients
Surf Excel is formulated with high quality phosphate builders and multi-active surfactant system to deliver
superior cleaning in addition this formulation is further fortified with color safe bleach system and nzymes
for superior stain removal in washing machines. Whereas Ariel came up with their enzimax short for
leaning enzymes similar to that of surf excel but positioned differently thereby utilizing half the water as
compared to other detergents as advertised in their ads.


Surf has become a generic name

Surf excel has a psychological advantage over any of its competitors as surf has achieved the level
where surf has become a generic name for detergents category, thereby creating association in mind of
its consumer.

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Launching of New Detergent

Bouncer washing Powder

Why are we launching a new washing machine detergent?
After performing a complete survey, we came across to know that there is an opportunity as the people
highlighted the problem that they are not satisfied with the performance of their washing machine in
comparison to hand washing.
As a fact, a wrong detergent can quickly destroy any hopes of savings. There exists a tremendous
amount of misconception about the detergent dosage in washing machines.
A washing machine needs a specialist detergent. Without a special detergent meant for your washing
machine the washer will not clean properly. Using regular detergent may even cause mechanical
problems to your machine.
Unfortunately, we have become so used to seeing lather in our old washing machines that we mistakenly
relate the presence of this lather to proper functioning of a washing machine.
Hence it is essential to USE THE RIGHT DETERGENT FOR YOUR MACHINE.
Bouncer is specially designed to work in your washing machine's large quantities of water & remove
tough stains in the washing machine.
Bouncer has a 'low foam' formula that is designed to remove stains without generating excess foam which
is harmful for your washing machine.

Product
The concept behind the launch of Bouncer is to provide a premium quality detergent at a medium Price.
This concept came into existence after a survey which gave the results that people are buying expensive
detergents because its their need , but they want a close substitute with a lower price so that it is not hard
at their pockets.

POSITIONING STATEMENT:

Slogan

Tez Tar Dhulai -BOUNCER ka sath

Logo
Brand Creation Process
Identification of brand positioning
Developing brand identification
Creating brand image

1. Identification of brand Positioning

There are different positioning strategies under as follow:
Category positioning
Image positioning
Preemptive positioning
Benefit positioning
Unique product feature positioning
Benefit positioning;
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We are going to use benefit positioning because we are launching a detergent which is basically meant
for washing machines as it has the abilty to produce Low Form which is a basic requirement for
performance with machines. Other than this is also contains Oxy Bleach which helps in the retention of
the dyes of the clothes in machine.


2. Developing Brand Identification;

Its true that without brand identification product can not survive.
Brand identification can be created by following methods;

Brand name : Bouncer Washing Detergent

3. Creating brand image

We are going to give companionship with happiness through our messages and advertisement such as:

Machine mange BOUNCER ka sath

Marketing Process

In the marketing process there are some steps which are as under:

Market Analysis

Market segmentation

Target market

Market positioning

Developing suitable marketing

Comparative analysis

Managing and controlling marketing

Now we will discuss all these concept for Bouncer washing Detergent.

1. Market Analysis

In the market analysis we are going to analyze the consumer in such a way:

What consumer need and want?

Who is their consumer?

Why the consumers buy?

How often the consumers buy?

How the consumer use?

How much the consumer wants the product?

How much consumer is wiling to pay?
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How the consumer wants to be informed?

With the help of all these questions we easily analyze the market for our consumers.

2. Market segmentation

Every market has different segments but not always segmenting a market is equally useful. The company
is making segmentation based on consumer market. There may be a large market s o we divide the
market into various parts. So there is no need of segmentation based on variables. We divide the market
in such a way;

Upper class

Middle class

lower class

Effective segmentation

Accessible
Sub stainable
Actionable

Accessible:
Our product Bouncer is accessible to our customer it is easily available to for our customer. Through
using print and electronic media we provide all awareness of our product our customer feel no difficulty in
assigning the product during purchase.

Substainable:
The cost and profit relation is substainable for us. The customer which have been focused are potential &
real customer of our product.

Actionable
We have well organized staff and also have strong add campaigns for attracting segment effectively and
efficiently

3. Target market

TARGET MARKET:

Normally speaking detergent is a product which is purchased by the housewives but still there is a big
target market.

DEMOGRAPHICS:

Age:
People of all ages like to wear clean clothes.

Gender:
Male and Female.

Family size:
No limit of members , clothes are to be washed.

Family life cycle:
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Young or old , married or single.


Income:
Rs 35000 and above

Occupation:
Students , Working people and Housewives.

Social class:
Upper class , Middle class and working class.

PSYCHOGRAPHICS:

Lifestyle:

Achievers, Well settled and Ambitious people.

Personality:

Hygiene conscious , Strong and Authorative.

In the case of Bouncer or any other detergent the final consumer is a housewife because she is the one
who purchases the detergent and has knowledge about quality and price of the product.

4. Market Positioning

In the market positioning, the company capture the consumer mind as they try to occupy the consumers
mind for the product. It means they create the image of product in the consumers mind.

Bouncer is meant for excellent machine washing because of its Low Form producing characteristics as
well as it has other qualities like retention of dyes, easy on hand, fabric softener, leaving the clothes bright
and full of fragrance.
Bouncer is positioned the mind of the customer through the effective advertisement and its effective
performance. Our slogan is designed to target the customer mind and its slogan captures the customer
and left the ever lasting image on the customer mind.

Slogan: Tez Tar Dhulai BOUNCER ka sath

Managing the Marketing effort

We take four aspects to promote and sell their product in the market as the four marketing management
functions.

Marketing analysis
Marketing planning
Implementation
Control

1. Marketing analysis

The companies make complete analysis of firms situation. Through marketing analysis we are able to
analyze the market and marketing environment to avoid environmental threats and to find environmental
opportunities. we also analyze the strength and weakness of marketing environment.

2. Marketing Plan:
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Every company makes their marketing plan to achieve certain things which are as following: To achieve
their goals & for increasing their sales and also for the promotion of their product. So for achieving all
these things we decided to design our marketing plan in such a way which help us to reach our goals
effectively and efficiently. According to our marketing plan we want to satisfy our customer with help of
long term plan.

Easily available
Quality product
Provide them complete information of our product.

3. Marketing Implementation:

In this stage we turn our marketing strategies and plan into marketing action for accomplishment of our
marketing objectives.

4.Marketing Control:

In the marketing control the organization take some steps.They set the specific marketing goals and then
measure its performance in the marketing place. They evaluate the cause of differences in the actual and
expected product performance. Finally management take corrective actions to close the gaps between its
goal and its performance. For marketing control we decide that for check our performance we take
following steps:

Marketing Audit
Take ideas to our customer
Listen the complains

MICROENVIRONMENT:

THE FACTORS OF THIS ENVIRONMENT ARE EXPLAINED BELOW:

MARKETING INTERMEDIARIES:

Marketing intermediaries help the company to promote, sell, and distribute its goods to final buyers. They
include resellers, physical distribution firms, marketing services agencies and financial intermediaries.
It is very difficult to deal with all the wholesalers and retailers individually so Bouncer washing detergent
has a sole distribution system with a distributing company.

CUSTOMERS:

Consumer markets consist of individuals and households that buy goods and services for personal
consumption. In the case of our chosen product Bouncer , a detergent , the main customers our house-
wives because they are the ones who buy detergents.

COMPETITORS:

There are 3 main players in the detergent industry of Pakistan.
1) Colgate-Palmolive ( Brite , Express , Bonus )
2) Lever Brothers ( Surf , Wheel )
3) Proctor & Gamble ( Ariel )

PUBLICS:

The companys marketing environment also includes various publics such as , Financial publics , Media
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publics , Government publics , Citizen action publics , Local publics , Internal publics and the general
public. Amongst all the publics the most important is the general public , because they are the ones that
but the product so the company needs to be concerned about their attitudes toward its products.

MACRO ENVIRONMENT:

THE FACTORS OF THIS ENVIRONMENT ARE EXPLAINED BELOW:

DEMOGRAPHICS:

In the case of Bouncer Washing Powder the demographics that we have found out are , that this
detergent is mainly for those people who are more performance and quality oriented.

PSYCHOGRAPHICS:

People who are ,performance conscious about their washing are Bouncer buyers , because when it
comes to personality values than no compromise.

TECHNOLOGY:

We are the one who launch the detergent in Jars or Bottle Packing. This change in packaging means
that the jars packing dont get torn off after getting wet like the carton boxes, so this change found a ready
market.

ECONOMY

Bouncer is a premium quality detergent, having some extra features as compare to other washing
detergents. Other than this launching it in jars/bottles makes easy for the people to handle.

Marketing mix

Marketing mix consist of every thing the firm can do to influence the demand for its product .There are
four variables in the marketing mix as the Four Ps

Product
Price
Place
Promotion

Product

We are introducing Bouncer washing detergent . Bouncer is a premium quality detergent, having some
extra features as compare to other washing detergents., because the main purpose of its launch was to
penetrate in the upper and middle segment market as well as to break and capture the market of
detergent.

People from the middle level segment converted from soap users to Bouncer users ,a big number of
unbranded detergent users also converted into Bouncer users and those upper level people who
purchased surf because it was their need but were not happy by its price, became Bouncer users as
well.

All this brought a drastic change in the detergent market in Pakistan , and Bouncer will day by day
become a threat to surf.

Features of Bouncer
Machine detergent
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Low Foam
Power full cleaning.
Good fragrance.
Keeps the colors of clothes bright
Stain remover
Retention of dyes

Price

Penetration pricing is the pricing technique of setting a relatively low initial entry price, a price that is often
lower than the eventual market price. The expectation is that the initial low price will secure market
acceptance by breaking down existing brand loyalties.It is also the main tool through which we can trap
our customer who are price conscious. Our prices for different packaging are

Package Price
1 kg Rs 185
500g Rs 92
125g Rs 22

Place

We have placed Bouncer in such a way in which it is convenient and is available to all the customer when
they need .The place where we will launch our product is Lahore.

Bouncer is placed at stores in posh localities, as well in the middle level localities. The reason behind this
placement strategy is that Bouncer is mainly launched for the upper and upper middle income group. But
it received good response by middle level as well.

DISTRIBUTION STRATEGY:

The distribution of Bouncer washing Powder is done by a distributing agency

We divide the Pakistan into 2 parts:

1) Sindh
2) Punjab

Sindh is further divided into 4 zones:

1) Karachi
2) Hyderabad
3) Sukkur
4) Quetta

Punjab is further divided into 5 zones:

1) Lahore
2) Faisalabad
3) Islamabad
4) Multan

Each zone is fed by a warehouse, which feeds 60 towns around each zone.

Everyday sales persons of all particular zones visit shops of their related area , collect sales reports and
next orders from the shopkeepers on order taking cards.
The order taking card has the following information:
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Name of the shop
Name of the shopkeeper
Name and signature of the person ordering
Address of the shop
Quantity and sizes of the product

Promotion

Promotion is the element that is used now a day for sales The promotion is done by the following ways:

Advertisement
It further includes
Radio
Television
Billboard
Newspapers
Sales promotion

We will use billboard and TV advertisement for our promotion.

ADVERTISING:

An advertising budget is always high when the product is new , and when the product is more or less like
other products kept in the shelves at stores. The same is the case with detergents , and Bouncer initially
had to advertise a lot in order to make the consumer aware of its differentiated strategy of a machine
detergent
In the beginning stage Bouncer is advertised on television , radio , posters and billboards were printed
and were placed at the prime sites of the country and the walls of shops were covered by the posters of
Bouncer.

The company does it through all sorts of media. The major portions of advertisements come on T.V. and
are usually shown between popular prime time programs to catch the consumers attention.

Print media is also done time to time, and a minor percentage is also concentrated on radio. As well as
posters and hoardings are an important source of advertisement and have a huge affect on peoples
minds.

SWOT Analysis

Strenghts:

Strong Brand Portfolio

Innovative Aspects

Solid Base of Company

Competitive Advantage

Weakness:

Strong Competitors

High Price
19


Substitute products available in market

Lack of control in market

Opportunities:

Changing lifestyles of people

Niche target market

Technological development and innovation

Threats:

Environment Effects

Introduction of local products

Increase in production and labor cost.

Point of Parity and Difference:

Point of Parity :

Stain removal

Like other big brands, our detergent also provides maximum

stain removal guarantee.

Fragrance

Our detergents leave the clothes full of fragrance like other detergents

Powerful cleaning

It also has the ability to clean clothes in less time like other good detergents

Point of Difference:

Low Foam

Our 'low foam' formula that is specially designed to remove stains without generating excess foam which
is harmful for your washing machine.

Oxy Bleach

This addition feature is added for retention of dyes, while leaving the colors bright after various washes in
machine.

BCG Matrix

Our product lies in the question mark because it is not sure either it become successful or not.


20
























A Report on Colgate-Palmolive detergents




















21

TABLE OF CONTENTS

8. Executive Summary
9. Introduction
10. Products of Colgate Palmolive Pakistan
11. Competitors of Colgate Palmolive
12. Raw Material used in Detergents
13. Consumer Price Index
14. Market Analysis
15. Research Analysis
16. Conclusion




22


EXECUTIVE SUMMARY
Colgate-Palmolive Pakistan is the leading manufacturer in fabric care segment in detergent industry they
are only producer of sulphuric acid and linear and branched alkyl benzene which is the one of the major
ingredient in detergent. They face major competition from Uniliver and Procter and gamble Pakistan but
the Colgate Palmolive products specially bonus is leading the market which is satisfying need of low cost
and quality as compared with soaps and loose detergent.
This research project aims in identifying that during recession time the consumer purchase pattern is
changed and the consumers shifted from Colgate Palmolive high cost product which are brite and
express to low cost product i.e. bonus. Questionnaire is distributed to consumers to support the objective
of research and we have collected various data about the fabric care segment of the industry and Colgate
Palmolive Pakistan.

23



INTRODUCTION:
The objective of the research is to find out he impact of recession on fabric care division and selected the
Colgate Palmolive Pakistan products which are Brite ,express and Bonus and try to find out that because
of recession the bonus powder sales is increase as compared to brite and express power because bonus
is the low cost product.
As it is written in recent column in the news paper (Business Recorder 2009) is that laundry detergent is a
fiercely contested sector. Colgate-Palmolive leads through its brand bonus in volume at the mass end.
Unilevers Surf leads in value at the top and has gained share from P&Gs Ariel.
In Pakistan detergents were introduced in sixties. Pakistan being mainly a laundry soap market detergent
was considered a product for the top end of the market and high duties were charged on both raw
material and finished products. This made detergents expensive and as a result the consumption
remained low. The real increase in the use of detergents came in last ten years, the two main reasons for
this growth are.
a) Import duties on the raw material were rationalized and reduced the manufacturers passed on the
benefits to the consumers and the detergent became more affordable in the market.
b) Local production of raw material by Colgate Palmolive which makes Colgate leader in the market
because of the low cost detergent powder.
TYPES OF DETERGENTS:
a) Heavy duty detergents with high active ingredients
b) Low Foam detergents these are medium range Active detergent
PROMBLEMS FACED BY INDUSTRY:
LOCAL MANUFACTURERS:
The biggest problem faced by the industry is by local manufacturers i.e. soaps, loose powder
DISPOSIBLE INCOME
In Pakistan the purchasing power of people is low as compared to developed countries that are why low
cost products sales is increasing.
PARALLEL IMPORTS:
Parallel imports are one of the major problems for the industry

24


PRODUCTS OF COLGATE PALMOLIVE PAKISTAN:
1. BRITE TOTAL
Launched in the year 1981.This premium quality detergent is now even better than before with the
inclusion of globally recommended ingredients of stain lifter and oil Easter. The combined actions of these
ingredients lift the toughest of stains of oil and grease in just one wash


2. EXPRESS POWER:
Express is the only brand in the popular price segment of laundry detergent it has loyal consumer base
from 1993 express has effectively contributed towards leadership of Colgate Palmolive in overall
detergent market. The quality and price fit perfectly into the consumer needs and affordability criteria.







25

3. BONUS:
Bonus is the largest selling detergent in Pakistan it is an affordable value detergent which offers superior
cleaning performance and stain and dirt removal as compared to traditional laundry aids it is replacing
laundry soaps and loose detergent and because of recession bonus sales is increasing and helps
Colgate Palmolive in shaping up the penetration in downscale rural markets




COMPETITORS OF COLGATE PALMOLIVE PAKISTAN:
The competitors of Colgate Palmolive are:
1. Uniliver Pakistan


2. Procter and gamble Pakistan

LOCAL PRODUCTION:Main producers of detergent in the country are
Colgate Palmolive (Pakistan) ltd-Uniliver Pakistan
Procter and Gamble are importing detergent and marketing in Pakistan. This is possible due to decrease
in import duties. Production plant of P&G is in Egypt.



26


RAW MATERIAL USED IN DETERGENT POWDER:
Colgate Palmolive is the producers of the raw material which produces sulphur, linear and branched alkyl
benzene which gives them competitive advantage over Uniliver and P&G Pakistan but recently the
Government has reduced the import duties of raw material which gives Colgate Palmolive a little set back.
Colgate-Palmolive is the leading manufacturer of detergent powder in country with present production
capacity of 30000 MTPY. They are the only manufacturer of sulphuric acid in the country. The production
capacity of sulphuric acid based on SO3 gas and sulphur is 3600MTPY.This capacity is not sufficient to
meet the present requirement and is importing around 3000 tons of sulphuric acid. The countrys total
requirement for sulphuric acid is estimated to be around 20000 MTPY. Colgate Palmolive Pakistan has
started work on new plant with additional production capacity 20000 MTPY which is sufficient to meet the
present requirement. The plant can use both Branched and Linear Alkyl Benzene to produced sulphuric
acid.
RAW MATERIAL IN MANUFACTURING PROCESS:
1. Sulphur
2. Sodium sulphate
3. Linear and branched alkyl benzene
4. Tinopal (optical brighteners)
5. Sodium triphosphate
6. Enzymes
7. Perfumes
8. Perbrates (oxygen bleach)
9. Sodium toluene sulphonate
10. Sodium polyacrylate
11. Soda ash
12. Sodium silicate
13. Sodium hypochlorite








27


CONSUMER PRICE INDEX

The Consumer Price Index of October, 2009 has increased by 0.95% over September, 2009, and
increased by 8.87% over corresponding month of last year the values of price index can be seen in the
table and pie chart.






28


MARKET ANALYSIS:
GROWTH:
Growth of detergent powders in Pakistan in last three years have been 15%.this trend is expected
to continue for another two to three years i.e. 2005 and thereafter the growth is to be expected
around 10% annually for next five years. Recent consumption of detergent powder per year is
240000 tons but market is still dominated by soap industry 420000 tons but in terms of value the
laundry soaps is 10 billion Rs and laundry powder is 17 billion Rs.

YEAR 2008 2009 2010 2011
DETERGENT
POWDER
200000 TONS 220000 TONS 240000 TONS 250000 TONS

SOURCE: COLGATE PALMOLIVE AND BUSINESS RECORDER
MARKET SHARE & TRENDS:
TRENDS
The removal of the 25% regulatory duty on imports of detergent powder in Pakistans 2009 Budget has
put local manufacturers at a disadvantage. Procter & Gamble Pakistan (Pvt) Ltd is planning to launch
its local manufacturing plant. It currently imports all the detergents it sells in Pakistan from Egypt.
Considering these changes in regulatory circumstances, a major portion of value sales will continue to
constitute imported products.
COMPETITIVE LANDSCAPE
While Unilever Pakistan Ltds Surf leads laundry care with a 33% brand value share, Colgate-
Palmolive (Pakistan) Ltd leads the category with a company share of 42%, spread between its three
popular brands Brite, Bonus and Express. While Surf has been gaining popularity among consumers
due to its better quality and highly successful advertising campaigns, Colgate-Palmolive leads the
category due to the extensive range and competitive pricing of its products which cater to different
income groups and are supported by strong advertising.
PROSPECTS
Laundry care is being pulled in different directions by several influencing factors, including the effects
of the economic slowdown, big jumps in unit prices, high levels of competition and a low per capita
consumption. During the forecast period, volume growth will be modest at 4% CAGR and unit prices
will grow moderately in view of the probable shift to economy brands caused by the prevailing
macroeconomic conditions.
29

Colgate Palmolive Pakistan is leading the industry by 45% and Uniliver Pakistan share 36% and
Procter & Gamble Pakistan Share is 17% and others are 2%.

As we discussed above that Colgate Palmolive Market share is 45% and out of it Bonus share is 19% and
Brite share is 12% and express power share is 14%.












36%
45%
17%
2%
Uniliver
colgate
P& G
0thers
12%
14%
19%
Volume share
brite
express
bonus
30



RESEARCH ANALYSIS:
Research survey is conducted to find out how the consumer purchase behavior of fabric care segment of
Colgate Palmolive affected to find out the purchase pattern the sample size we have selected is 45 and
questionnaires is distributed to low income group whose salary is below 20000Rs.
From the survey we have find out the out of 45 the 9 person use brite 10 use express power and 12 use
Bonus and in others which include loose detergent soaps and other products in the market. This shows
that bonus users are more than other products.


From the survey we have also found out that the customers used previously brite 6 people and express 4
soaps users are 14 and others are 18 and most of the bonus people are converted to bonus in less than
two years as shown in the bar chart which shows that in the recession period most people converted to
bonus as compared to brite and express power.


6
4 4
3
6
8
0
5
10
brite express bonus
2yrs more
2yrs less
31

Out of 12 users of bonus 4 converted from brite 1 from express 4 from soap user and 3 from other and 8
shifted because of price and 4 because of quality.














32









CONCLUSION:

Most of the customers which are converted to bonus are because of price and because of quality
which are previously soap users. This research conclude that the recession affected the consumption
pattern and most of the customers converted to low cost product and most of the consumers of
Colgate Palmolive shifted to bonus from high cost product i.e. brite and express.
















33

RELAUNCH OF OLD BRANDS BY UNLVER

Unilever Pakistan seems to be in the process of reviving some of its old brands. The long-forgotten Vim
was re-launched earlier this year, and more recently the laundry brand Sunlight has been brought back to
the market. In the 70s and 80s, Sunlight was available as a laundry bar but was then discontinued in the
late 90s, until it re-emerged in June this year as a laundry detergent.
The present day laundry market is vastly different from that of two decades ago. With a volume share of
600,000 tonnes and valued at Rs 54 billion, the category is divided between laundry bars (60% share)
and laundry detergents (40% share). Within laundry detergents, branded products account for an 80%
market share with Surf Excel, Bonus and Ariel being the major players. In recent years, the share of
laundry detergents has increased significantly, with at least five to 10% of people in Pakistan converting
from laundry bars to detergent on an annual basis.
Sunlight was relaunched as a detergent and not a bar.
He explains that in terms of laundry usage, Pakistan can roughly be divided into three kinds of
households: those that use laundry bars, those that use detergents and those that use both.
As a trend, laundry conversion is a graduated process; those using unbranded soap will first convert to
branded soap, then to a mass level detergent and then move further up the ladder, perhaps eventually
consuming a premium branded detergent such as Surf Excel or Ariel. Thus it is households that are either
currently using soap or both soap and detergent that are most likely to give Sunlight a go.
The launch of Sunlight also rounds off Unilever Pakistans laundry portfolio. The laundry market is
generally divided into mass, mid-tier and premium brands based on price. The company already had a
brand presence in both the premium and mid-tier (Surf Excel and Rin respectively).
Malik explains that Sunlight fills that space [in the mass category] where Unilever was not present at this
point in time.
The relaunched Sunlight is available in two variants (lemon and thousand flowers; and lemon and orange)
and two SKUs: the one kilogramme pack (Rs 95) and the sachet (Rs 25). The marketing and advertising
for the brand is strongly focused on the fragrance aspect based on research which shows that the
bottom of the pyramid consumer is looking for a good wash and superior sensorials.
Taking these factors into account, Lowe & Rauf (Sunlights creative and media agency) developed a
campaign which communicates that Sunlight turns the ordinary laundry experience into a delightful
experience, says Malik.
This is emphasised through the functional message of the product which is leemo ki taaqat aur hazaaron
phoolon ki khushboo to highlight its fragrance. Actors Shaan and Noor were used for the TVC because
research suggested that these two stars were most popular among this segment in addition to being
people the target audience could relate to.
Controversially, the TVC is an almost frame by frame replica of Wheels (Unilevers mass laundry brand
in India) ad which features Salman Khan, the reason being, according to Raheel Hashmi, Senior Account
Manager, Lowe & Rauf that Wheel is Unilever Hindustans mass market brand; we have used the same
idea, we have just adapted it to our local culture.
However, the ad campaign is the least of Sunlights problems. On the local front, it competes not only with
laundry bar brands, but with Colgate-Palmolives mega laundry brand, Bonus, which has a 20% share of
the overall laundry market. In spite of citing Bonus as the main competitor, Sunlight is priced Rs 25 higher
34

than Bonus. Considering that the target market is extremely price sensitive, can this work in Sunlights
favour?
Malik says that while Sunlight consumers cannot afford a premium brand, they are not looking for the
cheapest product either.
They are looking for the best product within their budget and that is what Sunlight offering.
Having been absent from the market for some time, Sunlight has its work cut out in terms of gaining
market share. It seems to have all its bases covered with regard to establishing its identity as a brand but
it remains to be seen if fragrance and performance can help it win or will it be price only that will matter in
the end?
(Published in the September-October 2011 issue of Aurora.)



















35




Marketing Plan
SURF EXCEL
Presented By
Habib Ahmed (062413)





Affiliation: Marketing Strategy
(MBA subject studying at IMS)
29-11-2008









36


Table of Contents
1. Mission Statement ............5
2. Current Marketing Situation..6
Market Description...................................................................... 6
Product Review..11
Review of Competition.12
Review of Distribution.................................................................14
Market Potential..15
3. Swot Analysis......................................16
4. Objectives and Issues ............................18
5. Marketing Strategies ......19
Positioning Strategy..19
Marketing Mix (Product).20
Marketing Mix (Price)..22
Marketing Mix (Distribution).25
Marketing Mix (Promotion) .... 27
Competitive Strategy.....31
6. Marketing
Research........................................................................................33
7. Budget.....................................................................................................36
8. Control......36



37


Surf
Dominating the washing powders markets in Pakistan for four decades; Surf has continued to change
according to consumer needs. Being a pioneer, Surf had to work hard to gain acceptance in the early
days. To educate housewives about its use, house to house demonstration were organized in Lahore and
Karachi. Free sample and coupons were also distributed to recruit consumer. There has been no looking
back since the brand has undergone numerous product quality improvements to offer best cleaning
results. Over the year, there has been a shift from cartons to poly ags and emergence of low unit price
packs.
With continuous technological innovations, the brand has always managed to fight off competition. Surf
Excel, which hit the shops recently, has already gained a reputation for the best in the market

MISSION STATEMENT
We are the leading consumer products company in Pakistan, a multinational with deep roots in the
country.
We serve the everyday needs of all consumers everywhere for foods, hygiene and beauty through
branded products and services that deliver the best quality and value.
Our bands capture the hearts of consumers through outstanding communication
Through managing a responsive supply chain, we maximize value from suppliers to customers
We are exemplary through our commitment to business ethics, Safety, Health, Environmentalist and
involvement in the community.










38

Current Market Situation


Market Description
Product Review
A comparison of cost price with sale price of Products in product line.
Surf Excel
Quantity Cost Price in Rupees Sale Price in Rupees
25 grams 4.7 5
50 grams 9.5 10
115 grams 19 20
500 grams 110.50 115
1000 grams 199.50 220
2000 grams 385 420
Unilever Products B.C.G Matrix


Star
Ponds skin cream

Question mark


Cash cow
Surf Excel
Sun silk Shampoo



Dog
Lifebuoy Shampoo
39



Surf Excel:
Surf Excel is a product of Unilever which is at growth stage as it has large market. In Market Surf Excel 50
grams has huge market share with respect to other Sashes.While demand of 500 grams is very low.50
grams is facilitating the class B and Lower B.And 500 grams are facilitating the Class A and Class B+.
A Review of Competition
Ariel
History
When we talk about P & G then question arises what stands for it, basically it stands for Proctor
& Gamble. Basically it came into existence in 1837 in queen city of west.
William Procter quickly established himself as a candle maker. James Gamble apprenticed
himself to a soap maker. Soon they started to work combine in 1837, a bold new enterprise was
born: Procter & Gamble.On April 12, 1837, William Procter and James Gamble start making and
selling their soap and candles. On August 22, they formalize their business relationship by
pledging $3,596.47 apiece. The formal partnership agreement is signed on October 31, 1837.
They are also in the process to facilitate on the base of providing washing powder.
Need
Use for the purpose to wash the cloths
Customer Benefit
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 OF ARIEL
Ariel has adopted the strategy of market aggregation. 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.
MARKETING POSITIONING
Ariel is considered to be a trusted and premium brand of Pakistan. Procter and Gamble is positioning
their product in the best of their customer satisfaction. As charging money they are positioning their
product as best use as well as providing quality in response.
They are focusing on the quality and they are also in a motive to facilitate the customer as providing a
whole range which they can.

40

Price Comparison with different Players
25 gm 50gm 115gm 500gm 1000gm 2000gm
Surf Excel 5 10 20 120 220 415
Ariel 220
Bright 180
Express Power 135
Bonus 70
A Review of Distribution
Distributors
Distributors are the institution through which availability of products is possible. Unilevers distributors
have a very good relationship with them. and the important thing is that they must integrated into total
marketing mix because of time and money required to setup an efficient channel.
Unilever has Six distributors in Lahore which are as follow.
Allied Marketing at Gulberg II
Shahzad Brothers Enterprises at Murgi Hana
Sigma at Kotlakhpat
Munner & Phips at Sham Nagar
Munner & Phips at Ravi Road
Munner & Phips at Johar Town
DISTRIBUTION STRATEGIES
Unilever uses the following multiple channel of distribution.

Wholesaler
Distributor
Retailer
Consumer
Company
Consumer
Retailer
Distributor
Company
41

Unilever uses a lot of distributors and retailers to supply its products in each market where the final
customer might reasonably look for it. While appointing a distributor for a particular area, management
uses its own judgment to select such a person that has a potential to operate effectively.At present
Situation for Surf Excel they are focusing by intensive manners and for new products like Surf
Excel Matic they are focusing the distibution channal by Exclusive manners.
Effect of Distribution on sales trend
Designing of channel for Surf Excel
Unilever has adopted the method of intensive distribution for Surf Excel because the target market of this
product is segmented for washing cloths using any method.
The customer want to purchase this product from nearest shop as this is convenience product.
Market Potential
Detergent Market is growing by 20% intensively.
At present Consumer prefer detergent on the base of quality.
Pakistani People 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.
SWOT Analysis
Strengths
Enjoying economies of scale
Good will in the market
Strong financial position
Surf has become the generic name in detergents
Have Strong distribution channel in Pakistan
Abundant financial resources
Well-known brand name
Well brand image
Committed employees
Weakness
Huge inventory stocks of raw material
Weak spending on R & D
Internal operating problems
Opportunities
Rapid market growth
Changing customers needs & wants as life style change
To create relation with society on the social marketing basis
Pakistan peoples moves from soap to detergent

42

Threats
There is very tough competition in detergents markets
Low profit margins
Smuggled brands of CHINA
New competition in the market
Increases in taxes
Increases in prices due to fuel prices
Objectives
The objectives of the Surf Excel is:
To 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.
Total commitment to exceptional standards of performance and productivity, to working together
effectively and to a willingness to embrace new ideas and learn continuously.
To maintain highest standards of corporate behavior towards employees, consumers and the societies
and world to acquire success.
The major points are as fallows.
Sales growth
Revenue
Market positioning
Enhance Market shares
Customer satisfaction
Goodwill & reputation
Issues
For Sales growth they need highly intensive distribution and strong promotions
Unilever is facing competition from P&G as on the base of different brands
market share
Unilever has to maintain its difference from other brands as creating unique
values, that others are not giving with core product.
Sales growth is possible when product remain at fixed price for a specific time
period and this depend on cheapest raw material handling and its transporting.





43

Marketing Strategies
TARGET MARKET OF SURF EXCEL
Surf Excel has adopted the strategy of market aggregation. It is a product by Unilever. SURF EXCEL
target market includes Middle Class, Upper Middle Class and Upper Classes of the population of
Pakistan.
Surf Excel target the SOCIAL ECONOMIC CLASS OF A, B+ AND B
Surf Excel has the huge share from major cities.
MARKETING POSITIONING:
Surf Excel is considered to be a trusted and premium brand because of its unique association. Unilever is
positioning their product in the best of their customer satisfaction which also differentiate from their
competitors. They are creating environment for people to have a life easy chance.
As regarding the image there is message for the peoples to avoid on the occasions to restrict when kids
are in situation of doing something extra ordinary.
They are also positioning as considering the fact of Strongs competition .So they are also focusing
different type of facilities.

MARKETING MIX
Product
In product some elements are involved which are Variety, Quality, Size, Features Brand Name,
Packaging and Services.
Varity
Surf Excel is at present situation available in two varities
Surf Excel
Surf Excel Matic
Quality
Surf Excel quality is very popular among the peoples as Dominating the washing powders markets in
Pakistan for four decades; Surf has continued to change according to consumer needs. since the brand
has undergone numerous product quality improvements to offer best cleaning results.
Brand Name
Surf Excel is not only the product for washing the cloths but also it has created the The relation ship with
customers as making grounds to promote their kids.
44

Surf Excel is the brand that is targeting the peoples through believes and values. There fore they define
there product on the basis of some relating activities.
As regarding the image there is message for the peoples to avoid on the occasions to restrict when kids
are in situation of doing something extra ordinary.
Parents should encourage them.
Size
Surf Excel is available in different quantities which are as follows:
25g, 50sg,115g, 500g, 1kg and 2kg.
Price
Here the firms have to consider many factors for determining the price.
Selecting the price objective
Analyzing competitors costs,
Prices and offers.
Selecting a pricing method.
Price is simply the cost plus profit of the firm. There are many competitors in the market. So the firms
have to consider about the competitive price while selecting new price and schemes.
Basic Method of Setting Prices
Unilever is using the following methods for price setting.
Price to Distributors
The company provides products to the distributors for the prices decided
keeping in view the cost, the target revenue and competitors prices. All
distributors are being equally treated.
Prices Charged by Distributors to Retailers
Unilever gives margin of certain percentage to distributors so in this way
prices to be charged by distributors to retailers are fixed.
Prices Charged by Retailers to Ultimate Consumers
Company influences prices charged by retailers. So retailers are bound
to charge fix price to ultimate consumer
How to set the price of the product
Prices are set by taking into consideration into the prices of the competitors.
45

As there products are highly quality .so usually they charge high prices. Such like
Unilever set low price for Wheel Washing Powder in past. And they are charging
price of surf Excel on the base of its quality.
Prices are set by taking into consideration
What Customer believe for high price & high quality.
There price are high. because they believes in zero defects.
They charge different prices to registered and unregistered retailers.
Prices are set by taking into consideration the size, type of product.
LIst prices of surf excel
Surf Excel-Price in Rs.
25 gm 50gm 115gm 500gm 1000gm 2000gm
5 10 20 120 220 410



Discounts
A quantity discount is price reduction to those who buy large volumes. This is given to increase company
sales. So that firm can have more revenues. However Unilever is allowing 1% discount to distributors &
whole sellers on purchase of Surf Excel of worth Rs 600.
Discounts on payment period
It is a price reduction to buyers who pay their bills promptly. A typical example is 2 /10 net 30. Which
means payment is due within 30 days and buyer can deduct 2 % by paying the bill within 10 days. But
Unilever is not offering such discount. They are dealing on cash basis.
Functional discounts
These are also called trade discount which is offered by this particular firm. It will be given to those who
perform certain function Such as storing, selling book keeping. Surf Excel has own agent or Book
keepers. Helium VRCB is company which is performing such actions as referring by Unilever
Credit terms
Unilever is not operating on the basis of credit terms. The purchaser has to pay the amount within one
day.
But listed parties such as Abdul Hameed store, AlGhosia store and Rana store are being
facilitating on 7 days credit.



46

Place
Registered office
Avari plaza,
Fatima Jinnah Road,
Karachi.
Rahim Yar Khan Factory
Unilever Pakistan limited
Laghari road
Rahim yar khan
Channels
Unilever is focusing on the indirect marketing channels where they sell surf excel through retailers.
Consumer
Retailer
Distributor
Company
Locations
As on the basis of Surf Excel Unilever is focusing on all areas through which it is possible to cover
different classes needs.
Thats why Unilever products are available at general stores as well as departmental stores, eg: Akbari
store, Al Fatah & Decent departmental store.
Coverage
Unilever aims to create a long term relationship with customers so they belief that this objective will be
only fulfill, if they have system to handled the markets needs as to reach the product on all areas where
its target market exist.
Shelf Spacing
Surf Excel is being position in different departmental store on the base of taking the a specific area
among other brands.
For this purpose Unilever is paying 2 million rupees to Alfatah store as acquiring 40 % area in the
detergents.
47

Assortments
This term refer the situation where products are to be maintain on the basis of grading, However Unilever
product (Surf Excel) is reliable.
Inventory
As Unilever mostly products are convenience product. So they have to maintain their position strong as
contains the inventories in huge amounts. Through which it will be possible to facilitate the market
on times as placing it after every two days.
Promotion
Promotion consist of a diverse collection of incentive tools, mostly short term, designed to stimulate
quicker and greater purchase of particular product/services by consumer as the trade.
Unilever Pakistan Limited places their products in local as well as in foreign market. They export directly
and indirectly. Unilever promote their products through media, and other trade incentives to distributors
and wholesalers.
ADVERTISING STRATEGY
MEDIA USE
Unilever Pakistan Limited use radio, TV and Billboards and newspapers for advertising purposes.

FACTORS FOR DECIDING MEDIA STRATEGY
Which one is more effective
Cost benefit
More access
PROMOTION CAMPAIGN
INAM HI INAM DOSTI KAY NAM
From November 2 , 2008 To January 31 , 2009
& Dagh Tou Achhay Hotay Hain:
In the year 2010-2011
Promotional activities provides chance to company to communicate with the potential parties to Beat the
drum about it products.In this scheme company gives the points to whole sellers on the purchasing of
Rupees 200. Schdule is as follows.
48

Brand SKUs Purchasing Points
Surf Excel 25 200 10
Surf Excel 50 200 10
Surf Excel 115 200 10
Surf Excel 500 200 16
Surf Excel 1000 200 16
Surf Excel 2000 200 16
The company sets up the store displays and sales officers make sure that items displayed are properly
arranged so that they can look attractive on eye contact level. There fore Surf Excel is being shown on
the hangers of the stores as in return of charges for it.
Promotion methods
Advertising.
Newspaper:
Jang and Naway Waqt is being used for advertisement in front page.
Television:
All nationwide channels are being used to run the campaign of Surf Excel.
Unilever has to pay the huge amount for it as advertise through different channels, eg: ATV & PTV.
ATV
Advertising Tariff
With Effect From 01 July, 2007
Time SlotRates per Minute
07:00am - 03:59pm25,000+GST
04:00pm - 05:59pm50,000+GST
06:00pm - 06:59pm75,000+GST
07:00 pm - 09:59 pm 100,000+GST
10:00pm -11:59 pm50,000+GST
12:00am - 06:59 pm15,000+GST
49

Radio:
FM 100, FM 103 and FM 106.2 is now a days being used.
Road display:
Bill Boards such like at Chuburji chowk is being used where a kid is showing the functionality & Purpose
of Surf Excel.
Sales promotion
Incentives:
Last year Surf Excel was sell as giving 1kg mango on the base of purchasing of 1kg Surf Excel at
selected areas such as Gulberg.
Samples:
Surf Excel is well known brand therefore there is no need to promote it by samples.
Personal selling
Order takers:
Company has employees who perform the activity of order taking from different areas to facilitate the
retailers. There usually one day company perform the activity of order taking and very next day they
deliver the Surf Excel to the destination.
Stalls:
Company arranges their stalls in the exhibition at which the products are displayed.
Public relations
Through Events:
Surf Excel is creating the relation ship with peoples as associating as considering the kids importantly
because they know that when they will capture the feelings of the kids they have the strong grounds as
this segment is more favorable.
Surf Excel game masti is a chain of public relations which held over year. Last year it was hold at Race
Course Park.
Now a days there are focusing on making new playgrounds as demanding 1Re on 1 kg packet.



50




Competitive strategy
Competitive strategy
In competitive strategy there are some sort of pressure on you, which have, you must the capability to
face it like they are
Pressure of Buyers:
When there is a lot of sellers lying in the market then buyer has power to influence.
Pressure of Suppliers:
One supplier for a company can exploit the company. There fore Surf Excel has 3 Suppliers for the
purpose to bargain with them effectively.
Threats of Substitutes:
In the detergent market people have choices as they can take Surf Excel and Ariel alternatively.
Threats of new entrance:
New coming brands of China and other smuggled brands are huge threat for Surf Excel.
As concern of competitive strategy the organizations really should focus on following of three strategies
Differential strategy when we see towards the Unilever they have really provide the good quality
products to the consumers like packing and beautiful appearance with beautiful colors and images as well
as Unilever focusing on best quality of Surf Excel as charging the premium on it.
Cost leadership strategy as concern of matter with the Unilever they have really adopted such
techniques, which shows that they have really focused on the cost minimization through adopting different
techniques & new modern technologies.
Focus strategy as concern of matter with the Unilever. It is a multinational company so they focus the
market segments and put totally their intentions to major segments.




51

Market Research on Surf Excel
Introduction:
We are conducting a research survey on Surf Excel to study its growth.
We need to identify what variables are affecting the sales of Surf Excel.
We really appreciate your value able time and expended cooperation filling in the information because
you are the one who can give us to identify the variables.
We hereby confirm and assure you that your information been given in this survey form would be kept
strictly confidential and would not be shared with any one other research members.
Instruction
This questionnaire is about your personal experience so please read carefully while attempting it.
Q1. Which washing powder you use for washing cloths?

Surf Excel Ariel Brite

Bonus Others

Q2. Surf Excel is better than any other detergent or Washing soap?

Strongly
Agree
Agree Some What Agree Disagree

Strongly Disagree


Q3. Is Surf Excel Matic is a good product for washing the cloths in the washing machines?

Strongly
Agree
Agree Some What Agree Disagree

Strongly Disagree


Q4. The result of Washing cloths from Surf Excel is different from other detergents?
Strongly Agree Agree Some What Agree Disagree

Strongly Disagree

52


Q5. There is difference between Surf Excel and Surf Excel Matic?

Strongly Agree Agree Some What Agree Disagree

Strongly Disagree


Q6. Choose number for ranking detergents.(1
st, 2nd ,3rd, 4th )


Surf Excel Bonus Brite Ariel

Q7. Surf Excel Matic should be available in small size packets?

Yes No


Q8. Surf Excel has develop confidence in kids as promoting them?

Strongly Disagree Disagree Some What Agree Agree

Strongly Agree



Q9. Surf Excel Matic should be available at general stores?

Yes No


Q10. Surf Excel Matic is in market after awareness about it purpose and function?

Strongly Disagree Disagree Some What Agree Agree
Strongly Agree
53



Please fill the following
Name__________________________________________
Occupation_____________________________________
Phone Number__________________________________
Result & Findings
o

Which washing powder you use for washing cloths?


o

Surf Excel is better than any other detergent or Washing soap?
o

Is Surf Excel Matic is a good product for washing the cloths in the washing
machines?
o

Surf Excel Matic is in market after awareness about it purpose and function?
Budget
Per kg revenue is 230 and variable cost is 150
While consumption will be 96000 tons.
There fore break even will be = (96000/230-150)*1000







54



Controls
Company deals only in those products that are profitable. If there is any indication that any product is
not profitable company analyzes the reasons and step are taken to overcome the reasons. For this
purpose Unilever concern with marketing research firm Aftaab Associates for marketing
research to gain the information about trend of market. Company also takes into consideration
the welfare of the consumers. It takes into account the taste and habits of the consumer.
There fore company has finished the production of Wheel Washing Powder in past.
It also works for the welfare and interest of Pakistan in the following terms: