SURF EXCEL KYUNKI DAAG ACHE HAIN: SURF EXCEL KYUNKI DAAG ACHE HAIN -A Brief Retrospection: -A Brief Retrospection Hindustan Lever Ltd’s (HLL) popular detergent brand Surf, which had become a generic name in the detergents market, has migrated into Surf Excel. A hitherto premium brand of detergent in HLL’s kitty, Surf Excel has now been trifurcated into three specialized brands, which include Surf Excel Blue and Surf Excel Automatic. Industry analysts said Surf Excel will now become the mother brand, with Surf Excel Blue targeted at the lower-end consumer, and Surf Excel Automatic aimed at the high-end market and particularly for use in washing machines. It is a case of repositioning of the brand. It will also facilitate a value-added product for the high-end customer, rather than a generic brand for the general market. Slide 3: MISSION Our mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life. COMPANY STRUCTURE Unilever's new organisation provides single point accountability and has fewer management layers to deliver faster decisions and faster execution. PLC- Product Life Cycle: PLC- Product Life Cycle Surf has been in the market for a long time and has effectively managed its product life cycle with the help of product innovations and great marketing strategy. The recent campaign of surf excel with the base line that says "Dirt is good" comes as a pleasant surprise to the Indian consumers. This campaign has a huge significance. It says:- It is OK to soil your clothes It is OK to play in the mud It is OK to enjoy life Surf excel hai na! Slide 5: SURF EXCELhas come out with a new campaign 10/10. The campaign is aimed at raising fund for the educationally challenged poor kids. Every Surf Excel will have a piece of stained cloth. When washed, this cloth will reveal a number out of 10. SMS this number to 455 and that amount goes to a NGO that works in the field of education for poor. The campaign is set to collect Rs 25 lakh for the underprivileged. These type of campaigns are aimed at making the brand more humane. The brand gains from the positive attitude created by such campaigns. The latest Surf campaign also intends to do that. The brand is trying to ladder up to a higher level than just the Cleaning ability. Slide 6: Issues: » Celebrities in Promotional Campaigns » Educational scholarships as a sales promotional tool. In March 2004, Procter & Gamble Ltd., (P&G) suddenly slashed the prices of its brands, Ariel and Tide. As a result, Hindustan Lever Limited (HLL) was forced to bring down the prices of its premium brand, Surf Excel. HLL responded to this situation through a spate of promotional offers with the hope that growth in sales volumes would offset the drop in percentage margin of its brands. Promotions are tools to attract customers to the stores. They generate great word of mouth publicity for the product. HLL launched a promotional campaign, 'Win with Stains', targeted at women and school-going children. PRICING STRATEGY: PRICING STRATEGY A change in the pricing strategy for Hindustan Lever Ltd’s (HLL) Surf Excel brand, which dominates the Rs 5,000 crore detergent powder market, seems to be on the cards. The FMCG major on Thursday conceded that its price reduction strategy had not yielded any value gains for the brand and had, in fact, led to its ‘commoditisation’. S triving for value growth, HLL is now reworking the Surf Excel strategy by moving away from positioning the brand on functional benefits, to building an emotional connect. SALES VOLUME: SALES VOLUME The company has already increased the price of its 20 gm Surf Excel sachets from Rs 1.50 to Rs 2 last month. Sachets contribute about 35% to Surf Excel’s total sales. Surf Excel’s prices have been on a roller coaster since January 2003 when HLL reduced the price of Surf Excel from Rs 150 per kg to Rs 135 per kg, and subsequently to Rs 99 per kg in March 2004. The volume market share of its washing powder portfolio increased from 27.8% in the March ended quarter to 29.5% in the September ended quarter, following the price cuts. However, the value market share in September quarter was only marginally higher at 38% compared to 37.3% in the March quarter.