Monday 30 September 2013

Promotion ATL

ATL Promotion:Above the line promotion is that which is created to reach the mass audience at a go. It does not see to the personal needs of the varied customers.
 
Types of ATL:

1. Sales Promotion:
 

Sales Promotion is increased by 10% this year.
Sales Force in Surf Excel is divided into 3 types: General Trade (general stores,
Kiryana stores, Medical and General Stores), Local modern trade (super stores such as Aghaz, Naheed, D-Mart), and International Modern trade (Large houses such as Makro.
Outdoor Media Agency is appointed for the advertising campaigns via billboard and signboards.
These OMA classify different regions under Strata, ranging from 1 to 6. Strata 1 include cities
like Karachi and Lahore, Strata 2 includes cities with comparatively less density and so on. They may select sites as per the following example:

Strata 1 would have 60% advertising sites.
Strata 2 would have 20% advertising sites.
Strata 3 would have 20% advertising sites.


They may book the site either for 30, 60 or 90 days depending upon the nature of the product, budget of the campaign, and rent of the site selected. The most effective advertising site in Pakistan is Shahrah-e-Faisal. The effective billboard which is displayed on the left of the driver and is at a height of 40 to 50 feet, with an exception of flyovers, bridges, and high altitudes road.

2. Advertising:
 
HUL initially launched the Lalitaji campaign who did not approve of the "dirt is good" quip. Today HUL has gone a long way in presenting to the audience the concept of a detergent and its capabilities through its variety of new products in the family as well as the new campaign.

They have worked with a set of human values, including forgiveness, with a sack race, and empathy, with a mud-soaked young student mimicking his favourite teacher's dog that has just died," says Arun Iyer, national creative director with Lowe Lintas.
"These are the values that parents (a key constituent for Surf) like to see in their children." In an area of 24/7 television and violence all around, the latest badappan campaign also drags viewers back to a simpler time of playing outdoors and frolicking with friends. Despite being a seven year old campaign in essence, Iyer thinks this has the legs to run for a while longer.
These advertisements provide a sense of freedom to you and do not restrict you to try something only because your clothes may not look the same anymore!

Promotion Decisions-The IMC Approach


The concept and relevance of IMC:

Communicating value to the consumers is one significant task all marketers have to invest in order to reach the consumer effectively. This helps the firms to put forth their product value in an attempt to inform, persuade and remind consumers that they exist in the market and offer the best deal to meet their satisfaction.
 
 

The marketing communication mix consists of:

1.Advertising
2.Sales Promotion
3.Events and Experiences
4.Public Relations and publicity
5. Direct Marketing
6. Interactive Marketing
7. Word of Mouth Marketing
8. Personal Selling

Surf excel easy wash uses Advertising, Sales Promotion, Direct and Interactive marketing to boost its sales and provide the right information of their product.


 

 

Sunday 29 September 2013

Pricing Decisions


Pricing Concepts:

Any action that you take in life, you have to pay a price for it. “Life is all about paying the prices.” The question that arises is which price is the right price one should pay at? Price is the only revenue producing element of the marketing mix.
Steps in setting a Pricing Policy:
1. Selecting the pricing objective
2. Determining Demand
3. Estimating Costs
4. Analyzing Competitors’ Costs. Prices, and Offers
5. Selecting a Pricing Method
6. Selecting the final price

Pricing Strategy:
Surf excel is reworking the strategy of moving the brand away from functional benefits and reworking on the emotional connect. 



Price: 1Kg = 120 Rs.
           0.5Kg= 70 Rs.

List Price= 100
Add: Distributor price (5%) = 105
Add: Trade price (5%)  = 110.25
Final Retail price (10%) = 121
 

Branding and Brand Management


Branding:

The FMCG Industry does not have any measures which can control the entry of new firms. The resistance is very low and the structure of the industry is so complex that new firms can easily enterand also offer tough competition due to cost effectiveness. Hence potential entry of new firms is highly viable.  
What makes your product/service stand out from the crowd of competitors is the identity that you provide it with, it is the brand that speaks for the product.

Surf Excel is one brand that has established itself in the minds of people by creating their famous tag line “Daag aache hain” . This has driven away the fear of stains from the Mom’s as well the kids. This factor links the stain removal process to surf excel, as they say; “Surf Excel hai na” which gives you that extra confidence to not worry over the muck. This is the way they position surf in the minds of people.


Brand Philosophy:


Surf Excel believes that stains are good. This is because when children go out and play and get dirty, they don't just collect stains. They experience life, make friends, share with each other and learn from each other. This helps them get stronger and get ready for the world outside. Along with dirt being an obstacle towards play = experience = learning, what are the other reasons for kids not playing enough in today’s world?
In 2005 & 2006 Surf launched Paint and Games Masti where children were invited to participate in various activities designed to communicate that “Dirt is Good”.
This year however, Surf has taken the concept of “Dirt is good because Dirt = Play & Play is
Good” to a deeper level and addresses the issues surrounding children’s play: the idea of learning through play, the obstacles towards play, the impact of not enough play for our children. As a socially responsible company and brand, it believes that they can create a platform on which they can take this message forward to showcase how playing helps children mentally and physically.


Brand Management:


Surf Excel easy wash comes with the benefit of 10 hands that ease the process of washing. These are strategies used to denote the power of the micro granules which are used in the detergent. These phrases set an image to the product which when heard in everyday conversation links your thoughts immediately to the product.

At a time when Surf Excel was in a battle with new bie Nirma (with its own emblematic twirling girl), this ad sought to position Surf Excel as a value for-money buy, with the woman telling audiences that 'Surf Ki Kharidari Mein Hi Samajdari Hain;' which loosely translates into 'it's sensible to buy only Surf '.
The line struck a chord with the value conscious Indian housewife, the campaign went on to become one of the most recognised of the time, and Surf Excel became a household name.

Since 2004, the detergent brand's focus has changed tack, with a series of commercials, beginning with the 'dirt is good' ad, and most recently with the badappan (dignity) campaign, which used the theme of non-violence to settle scores (set in a slushy football field, with an older team prematurely ending a younger outfit's game).

The campaign works because brand managers at Surf Excel are confident enough of their product to project, indirectly in this case, of its dirt-busting qualities. Freed up from this onerous task, they have since 2005, when the first of this series aired, taken an unconventional route.
"We have worked with a set of human values, including forgiveness, with a sack race, and empathy, with a mud-soaked young student mimicking his favourite teacher's dog that has just died," says Arun Iyer, national creative director with Lowe Lintas.
"These are the values that parents (a key constituent for Surf) like to see in their children." In an area of 24/7 television and violence all around, the latest badappan campaign also drags viewers back to a simpler time of playing outdoors and frolicking with friends. Despite being a seven year old campaign in essence, Iyer thinks this has the legs to run for a while longer.


"The idea of finding different values and projecting them seems to be working well with people... there is rich territory yet left to explore," he says. The other reason this ad — and indeed the entire series — works well, is the connect it builds between a detergent powder and a sense of freedom.

Saturday 28 September 2013

Services and Service Marketing


Services:

The Majority of the augmentation of a product comes in the services it provides. A product without service is a product without a soul, you use it and throw it once its consumption is done. However when a service accompanies a product it gives you an experience to remember if it is fullfillig your requirements.


Surf Excel is a pure tangible good. It doesn't offer any services with the product. This comes under the 'HIGH IN SEARCH QUALITIES' category.
Once thing to take into account is that the Surf Excel facebook page: http://www.surfexcel.in/terms-and-conditions-lend-a-helping-hand/ does provide various solutions for consumers to go about having a fun filled experience while they do their laundry.

It is observed that doing laundry is one of the most tedious task and people find it very tedious and boring, however what people do love are their clothes. Each piece of cloth has a story behind it and one can do their best to preserve it and keep it as good as new.

To achieve these objectives, Surf Excel lends a helping hand to its consumers. The following services help consumers in preparing themselves for the cleaning process of their valued possessions:

1. How to do laundry









2. Wasing Machine advice









3. Parental Advice













GAP Analysis Model:






GAP 1: Does not exist since Surf Excel Easy Wash is stronger in cleaning and reduces the washing time considerably.

GAP 2: This is the gap between service delivery and the perceived service. The detergent is available at majority of the outlets and hence gap 2 doen't exist.

GAP 3: It may so happen that consumers are not satisfied with the quality for they prefer another detergent, Then, this gap will exist.

GAP 4: The "Daag ache hai campaign" is effectively used in promoting its product by HUL. This is the external communication component.

GAP 5: Consumer expectations are constantly monitored and the best research is done to provide quality outputs.

Friday 27 September 2013

Product Mix/Decisions and New Product Development

Product Concept:
The customer value hierarchy helps the marketer to set five different product levels:

1. Core Benefit
2. Basic product
3. Expected product
4. Augmented product
5. Potential product

The core benefit that surf provides is clean clothes. This is the basic need which a customer believes will be fulfilled on purchasing the product.
This core need is turned into a basic product by giving it a physical aspect so that one can purchase it and thus fulfil their need. Thus, HUL created soaps for laundry cleaning.
The expected product is when Surf provides a powder form so that the washing doesn’t take too much effort and becomes convenient for the one doing the laundry.
Surf Excel produces a variety of cleansing agents under its brand like Surf Excel Quick wash, Sur Excel Liquid, Surf Excel Easy wash etc.


Surf detergent helps wash clothes using the ‘Bucket’ concept. This helps the clothes to be washed at a faster rate without the constant need of brushing after applying soap.

Product Classification:
Surf Excel Easy wash fits in the category of Nondurable goods. Such products are consumed on a regular basis and have a high demand that needs to be met in the market.
On the basis of Consumer goods classifications, Surf excel comes under the convenience goods category wherein it is easily purchasable and in a routine fashion.

Product Management:
Product and Brand Relationships-
Need family: The core need for Surf excel to exist is the necessity of clean and feel-fresh laundry service.

Product Mix:
Surf Excel has a list of products in its category, like Surf excel Quick wash, Surf Excel Easy was, Surf Excel Matic, Surf Excel Fabric wash. 



Thursday 12 September 2013

Product Life Cycle

Application of the Life cycle concept:

Before detergents came into existance, clothes in India were washed on the river banks with 'Reetha' . This contained cleansing properties which helped in dirt removal.

Today, with the advancement in the soaps and other laundry cleansers we have seen products facing tremendous competition in this sector. Each product comes with a shelf life.

Product Life Cycles:









Introduction:  This is the period of introduction of the product into the market. Here, profits are negligible since it carries a very high cost of expenditure.

Growth:  Product acceptance is rapid at this stage.  A tremendous increase in profits is seen.

Maturity: The product has already gained a wide acceptance and is no longer being targeted to another audience. Competition plays a vital role here, it interferes with the profits of the mature product and causes decline or stabelization of sales.

Decline: Profits erode rapidly, sales follow downward slope.

The Surf Excel Easy wash product is at its growth stage. It has been widely marketed to different sectors of the population. The team has introduced various types of detergents in the surf category to increase its market share.

These factors have led to the sustainable growth of the product.

 

Market Structure and Competition

Market Structure:
The Fabric wash market in India consists of synthetic detergents (Bars, powders, liquids) and oil based laundry soaps.
The synthetic detergent market is classified into the following:
1. Premium: (Surf, Ariel) : 15% Market Share
2. Mid price (Rin, Wheel) : 40% Market Share
3. Popular Segments (Nirma, Ghari Detergent, Tide) : 45% Market Share

Expanding Total Market demand:
Surf was the first detergent powder to be launched in the country. It introduced the concept of a  bucket wash to the housewives who were used to washing clothes with soap.
Selling over 60,000 tonnes per year, Surf Excel has been the Market leader for the premium segment of synthetic detergents over the years. It has introduced a wide variety of products in its line which cater to specific needs of the consumers. Thus, Surf has extended its products by providing variants like Surf Excel Quick wash, Surf Excel Blue, Surf Excel Automatic and Surf Excel Easy wash
as per the changing needs of consumers.

Protecting Market Share:
Every leader has to maintain it's position in the market by constantly developing strategies to take the business at a higher level and sustain it. It implements various techniques to keep itself dominant in the market.

Proactive Marketing:
To satisfy customer needs, marketing is done in the following 3 ways:
1. Ancipative marketing
2. Responsive marketing
3. Creative marketing

Surf Excel falls in the Creative Marketing category. It developed powdered detergent when customers didn't even state the need for having such a product.

Defensive Marketing:
Position Defence:  Surf Excel Easy wash has occupied a desirable space in the mind of the consumer by providing the power of 10 hands wash in one go.

Flank Defence: When Nirma tried to attack Surf excel, it came out with a pouch to protect its main brand.

Preemptive Defence: Here, the brand tries to hit all the competitors and announces a stream of new products like in the case of surf excel liquid detergent. They constantly develop their range so as to serve the varied consumer line.




 

Wednesday 11 September 2013

Understanding Consumers and Consumption

Consumer Behavior: Every consumer is unique. His needs change with age, experience and economic conditions. The manner in which a consumer makes choices, procures, uses, disposes products/services to satisfy their needs and wants is called Consumer behavior.

 Factors Influencing Buying Behavior: Consumers buying behavior is affected by the factors mentioned below;
  • Cultural Factors: While growing up, I always remember that my friends were always scolded for playing in the mud or getting themselves dirty. Me on the other hand, enjoyed every bit of building sand castles, making mud toys and playing Holi.  Culture has always stressed on the cleanliness in ones attire. The color white is treated as the color of purity and detergents have always stressed on the concept of how bright it can make your piece of cloth shine! Whiteness, gentleness on the hand and good stain removing capability have been the driving forces of the development in the detergents. Surf Excel says "Daag aache hai".  This breaks the traditional practice of avoiding dirt and breaks all the bondage you have against dirt.
  • Social Factors: Parents and TV shows have always influenced how my laundry should come out. Earlier there existed detergent bars, which technological advancement, detergent powders came into existence. Today, at home we use Surf excel powder for our laundry cleaning. I have heard and seen the difference between Surf excel and other laundry detergents from family members, house maids, friends and television commercials. This is why, I choose Surf Excel.
  • Personal Factors: Factors like age, location, career, spouse etc. affect a large pat of your buying behavior. It helps you take decisions considering why it would be a personal benefit to you and hence you go forward and buy it.
 Key Psychological Processes: