Daagh Tou Achey

hotey hain
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Assignment # 2: Building Customer satisfaction and Retention

SUBMITTED TO: FARAH ALI NAWAZ

GROUP MEMBERS:

RABIA RAHEED

RABIA SHAFI

SEHRISH HUDA

ZAFAR KHALIL

RAJA ADNAN
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Introduction
Unilever Pakistan Limited needs no introduction. UPL was established some fifty years
ago in the then newly created Pakistan. By far the largest consumer products company in
Pakistan, Unilever is a part of the consumer products giant Unilever. Today, Unilever
Pakistan is a force to reckon with. Unilever Pakistan (67% Unilever equity) is the largest
FMCG Company in Pakistan, as well as one of the largest multinationals operating in the
country. Its contribution to Pakistan's economic development cannot be overestimated.

Now operating six factories at different locations around the country, the company
contributes a significant proportion of the country's taxes. It employs a large number of
local managers and workers. It provides a pool of well-trained and highly motivated
manpower to other segments and has introduced new and innovative technologies into the
country.

History (Unilever Pakistan)

UPL was established some fifty years ago in the then newly created Pakistan. The town

UNILEVER PAKISTAN LIMITED

of Rahim Yar Khan was the site chosen for setting up a vegetable oil factory in 1958 and
that is where the first UPL manufacturing facility developed. The UPL Head Office was
shifted to Karachi from the Rahim Yar Khan site in the mid 60's. By this time the once 0
dusty and sleepy village was the hub of activities for UPL. A residential estate situated
near the factory is the home of UPL employees at Rahim Yar Khan.

William Hesketh Lever was the founder of Lever Bros. Earlier it was named as Lever
Brothers but now it has gained popularity as Unilever Pakistan. The company operates
through 4 regional offices, as well as 4 wholly owned and 6 third party manufacturing
sites across Pakistan.

Accountable To Their Stakeholders

Since the time Unilever Pakistan began its operations in 1948, the Company has been
closely connected to the Pakistani people and its brands have been an integral feature in
their daily lives. In fact, the nature of their business enables their brands to be the pulse
and heartbeat of the 155 million people in Pakistan. This is a huge commitment, which
L
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makes them responsible and accountable to all their stakeholders and society as a whole
and strengthens their resolve to:
 Make a positive difference to the lives of low income consumers
 Create new opportunities for growth
 Improve the overall quality of life in Pakistan, by promoting education, nutrition,
health and hygiene.

Meeting Consumer Needs

In the last five years, they have built their business by focusing on their brands,
streamlining how they work, and improving their insight into the evolving needs and
tastes of consumers. Now they are taking the next step in simplification - by aligning
themselves around a clear common mission.

They recognize that the world in which they operate is changing. Consumers are
increasingly bringing their views as citizens into their buying decisions, demanding more
from the companies behind the brands. They want companies and brands they trust.

Unilever embraces these new expectations. Their heritage of good governance, product
quality and long experience of working with communities gives them a strong base. They
aim to build on this by taking the next step in transparency and accountability. They will
stand visibly as Unilever, behind their products and everything they do, everywhere.

Surf Excel ----- The Key Brand Highlights

Surf Excel is the oldest detergent brand to be present in Pakistan since 1960. They have
always believed that dirt is a valuable way to enrich our lives, both young and old. To
ensure that everyone, anywhere in the country, can share in this initiative, they're
investing heavily in developing a range that suits the pockets of all income groups. This
has included launching affordable skus that not only offer the top-clean advantages of
Surf Excel, but also reduce the time, physical effort and amount of water needed to wash
clothes by hand.

Market for Surf Excel has grown steadily over the last few years. Firstly, Pakistan has
one of the highest population growth rates in the world. Secondly, after the advent of
Ariel and introduction of detergent in smaller packets, Surf also followed its competitor.
Since it is an expensive detergent, having it available in smaller quantities allowed lower
income consumers to buy it in smaller quantities.

Surf showed exceptional double-digit growth, driven by its ‘red sparkles’ innovation. Its
position as Pakistan’s No.1 premium detergent powder was reinforced with a 3% increase
in market share.
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Market Segmentation:
The market for laundry soaps and powders can be segmented on the demographic basis.
The most common variable of convenience products for segmentation is the income
level. The laundry market can be segmented into following segments on income level:

Class A- Families with house hold incomes greater than Rs. 30,000 per month

Class B- Families with house hold incomes between Rs. 18,000 to 30,000 per month.

Class C- Families with house hold incomes between Rs. 10,000 to 18,000 per month.

Class D- Families with house hold incomes between Rs. 4,000 to 10,000 per month.

Class E- Families with house hold incomes less than Rs. 4,000 per month.

Target Market
Surf Excel is a consumer product. Therefore, the first and foremost market segment
comes to be that of households. In marketing the product, the Surf Excel’s brand
management team takes cognizance of factors such as the gender of the consumer who is
most likely to buy the product, the education and income levels of the household, etc.

Surf, before Surf Excel, was perceived to be solely in the premium detergent category.
The reason because the major target market of Surf for years, and now Surf Excel, have
been the housewives of Class A, B and C categories. As Surf and then Surf Excel have
been premium quality and premium priced brand, the Unilever targeted Surf and then
Surf excel to higher income level categories.

But later during last few years of decade of 1990, Surf Excel also started targeting D and
E socio economic classes with low priced bags. This change in target market strategy was
due to the realization that Ariel was able to take number one position in premium price
and premium quality detergent class due to its target market of low income groups. This
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forced Surf Excel brand management team to change its target market eventually and
include low income groups.

Branding To Maintain Customer Loyalty:

Surf excel is an international brand of Unilever as it is available in many countries of
Asia. However, this product is known as Omo in countries where Surf excel is not
available. Apart from this Surf is also a brand of Unilever which is different from Surf
excel. When Unilever introduced a new washing powder in Pakistan (where Surf was
already in market since decades) it used a new name of Surf Excel instead of
internationally used name of Omo in order to create link with the already marketed
product Surf. This helped Unilever in many ways; firstly it reduced promotion costs as
Surf was already known to customers. Secondly, it helped to maintain customers
loyalty as Surf was a successful brand with million of satisfied loyal customers.

Price – Product – Quality Relationship

Pricing also has a psychological affect on the demand of the Customers. The customers
rely heavily on price as an indicator of a product’s quality, especially when they must
make purchase decisions with incomplete information. Studies have consistently shown
that the customer’s perceptions of the product quality vary directly with the price.
Thus higher the price, the better the quality is perceived to be. Unilever has known this
fact and that is why the new Surf Excel is priced relatively high as compared to other
detergents and equal to its main competitor, Ariel. Good value indicates that a product
has the kinds and the amounts of potential benefits – such as quality image and
convenience. Unilever offers these potential benefits in all of its products creating Total
customer value.

Service----Defining Functional and Emotional

Benefit
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Services are the intangible attributes of a product which support or facilitate the
marketing of a product. Services are conventionally regarded as separate from products
but in modern era, services are the key to competitive edge. Therefore none of the
products are available in the market without services.

The same general marketing approach about the product applies to the development of
service offerings as well. In creating a successful service mix, Unilever choose features
that are preferred and expected by target customers, or the service will not be valued in
the marketplace e.g. FABRIC SAFETY.

However, the service strategy of Unilever for Surf Excel consists of the following
components:

• Lever Raabta:

Like all other Unilever products, Surf Excel is also accompanied by Lever Raabta Service
which is basically a toll free telephonic help line 0800-13000 or mailing helpline in terms
of P.O. Box No. 3200 Karachi, for any questions, advices, complaints or suggestions.
Such a service improves image of the product and company in consumers mind as he
perceives that the company cares for him. The customer feels that company is willing to
keep in contact with the consumer and to sort their problems and queries. Consumer
feels that he/she is in direct contact with the company which creates good will for the
company and product.

• Social responsibility:

The “Dirt is good” brand activation programme has been building a strong bond with
Surf Excel consumers in Pakistan. The basic purpose of this campaign is to fulfill the
purpose of social responsibility. Dirt is Good is an idea which delivers a powerful,
engaging message about the necessity of dirt in our lives and the freedom we allow
ourselves, and others, to experience life and grow. Surf Excel believes that in a society of
a third world developing country like that of a Pakistan, children are put under pressure
without any reason and this results in underdeveloped personalities when they are grown
ups. So in order to change this attitude, “Dirt is good” is not merely a tag line for
marketing but a message to the society to let this children do whatever they want and let
then develop their abilities into skills which will in long run help to develop the society as
a whole.

Advertising---- Creating Strong Bond Of

Communication
The most concentrated advertisement techniques used are television advertisements. Its
ads are shown on national and international channels. The ads are re-made after sometime
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to maintain interest of the consumer and to inform them of any changes the product has
gone through. The underlying theme regarding their campaign is that stains are nothing to
be bothered about since surf excel is a viable solution for all sort of stains.

The slogan that they use is, “Aisay dagh, waisay dagh, jaisay bhee dagh hon,
surf excel hai naa” also “Dagh tu acchay hotay hain” which is a very unique
approach adapted as compared to the other detergents, some of which emphasize
whiteness while others bang on low prices.

One interesting note regarding their promotional campaign is that they have managed to
build a strong brand identity with their customers. Shopkeepers told us that when
maids come to buy detergents, they usually assign names to them (peelay wala, pahyiay
wala, lemon wala), but with surf excel, they remember it by name. Perhaps it’s because
one sees and hears about it almost everywhere (roads, buses, signboards, billboards,
posters).

Another striking feature of their advertising strategy is the printing of pictorial ads on the
back of the detergent packs. These pictorial representations show the different stains that
can be removed and the benefits of using Surf Excel over other detergents.

Detailed instructions, complete with the length of time to soak the fabric and the
temperature of the water, are printed along with the above mentioned ads, so as the
consumer gets the best result out of the washing activity.

Surf Excel has been involved in almost continuous advertising. It faces the same demand
throughout the year, therefore, it has no incentive to slow down or speed up the
advertising. The impact of advertising by surf excel is revealed by its sales index, brand
recognition, brand awareness index and the consumer panels.

Promotional Activities
• From time to time, Surf Excel keeps coming up with promotional offers. These
include giving extra amount of product at the same price, gifts like soaps (small
size Lux), detergent scoops, shampoo sachets (sun silk), free packets of surf excel
etc.

• 'Paint Masti' - meaning 'fun with paint' - was the initiative which brought the
experience of Surf Excel to Pakistani consumers over three months last summer.
More than 600,000 people across 110 cities in Pakistan were mobilized to paint in
the spirit and the name of Dirt is Good and Surf Excel. The event created
publicity, visibility and goodwill, culminating in a grand finale in the cultural
capital Lahore - the unveiling of a 2,000 meter-long mural canvas painted by the
children participating at each event. After 'Paint Masti', a market research survey
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showed consumers had more belief in the Surf Excel and its performance and
more brand awareness.

• Resale price maintenance: Surf excels price is controlled by Unilever by

adopting resale price maintenance. Shopkeepers sell Surf Excel on the same price
as is printed on the pack.

• Trade discounts aka. Functional discounts: Unilever is regularly involved in

offering trade discounts to wholesalers and retailers. The most common being the
offer of “eleven SKUs for the price of ten”.

• Promotional allowances to those shopkeepers who prominently display surf

excel bags.

Conclusion
In a nutshell, surf excel is a product which has built its brand image by delivering high
customer value since it has been able to retain customers over the years.