STP & Marketing Strategies

 

Importance of serving customers by grouping:

Segmentation:  

Surf Excel was launched in 1959 as a family brand with tough stain removal and a caring image. It was segmented for an audience which prefers washing their clothes with ease and comfort.

Segmentation is done on the basis of living standard measure (LSM), which ranges
from 1 to 15. 1 denotes those people who are living from hand to mouth, whereas 15 denote
extremely rich and elite class. LSM is measure by a number of variables such as no of mobile
phones in a house, no of cars, income bracket, etc. Surf Excel starts from 6 who can afford
washing machine for washing.

Targeting:

Surf Excel mainly targets housewives but the things have to be seen in context. Surf Excel is not just targeting the middle income category. With the broadest socio-economic footprint amongst consumer goods competitors, Surf Excel is also looking at lower income market as well as the higher income bracket with different sets of products.

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 Strong’s competition .So they are also focusing different type of facilities.

 SegmentationàTargetingàPositioning is the sequence which marketers follow for effective target marketing.

If we change the sequence which marketers follow the following consequences can arise;

P-S-T:

·         When we position a product, we put it out in such a manner so as to create a distinctive image of the offering in the minds of the people we want to target.

·         If we try to position our product without knowing who our target is, there are chances that it will not be accepted by the majority who we have made an offering to.

·         Take into consideration the vehicle manufacturer Rolls Royce, if they position their luxury before segmenting the market, we will not know the behavioral pattern of the people in that particular market environment. After this if we target the segmented market, the surety of our positioning being is success is highly doubtful. It may or may not work.

·         This can cause unrest in the market and even cause the failure in our launching.

S-P-T:

·         Segmentation is done on the basis of Geography, Demographics, Psychographics and Behavioral patterns.

·         Once we segment the market, we get an idea of the kind of product and features a particular audience desires. Now, if we position the product as per the mass variety and value expected by different customer groups it will be impossible to satisfy the different needs of all the customer segments.

·         If we then target a particular group, it is sure to have unmet demands, needs and wants from our offering.

·         Hence, targeting has to be done before positioning to create and distribute the required value to the customer.

P-T-S:

·         If we position our product first, it will just lie in the market without anyone to go to. Thus we will have to select a particular audience who would understand our positioning. For this, we will have to target the right audience as per our positioning which would be a very difficult task as it is the reverse of our general path of targeting and then positioning.

·         Once we target our audience, there is no point in segmenting it further. It would only create additional cost to the market researcher and would not even be fruitful.

·         It is like trying to create the value of a service by not considering other customers as done in the Rapid Rewards case study. Liz Bast was not happy with the positioning by South West Airlines.

·         After positioning, when we target only a particular group, it is very probable that the interest of the group will be completely different from the product/service features which we have offered and the consumers will be dissatisfied.

·         Now if we target the market, it will create a segment of mixed customers which will exhibit the qualities of a rather mixed interest oriented audience rather than one which would be happy with a particular offering.

Thus, it is seen that the standard S-T-P approach will help to reach the target consumer effectively and help eliminate undue expenses and dissatisfaction from the consumer’s as well as the marketer’s side.

Organisational Buying Behaviour

How organizations buy: Differences with CB?

The buying decision-making process of an organization involves many individuals rather than that decision of an individual customer. Organizational buying behavior differs from consumer buying behavior in that of the following,

 (a) Normally, multiple individuals are involved - 

Here, HUL will procure all the chemicals and cleansing agents required to formulate the product called Surf Excel easy wash. The business market will involve major industries like manufacturing, transportation, communication, public utilities etc.

(b) Buying decision rules or standards may be applicable-  

The procurement department faces many decisions in making a purchase. The procurement team at HUL will have to abide by the Surf excel detergent quality policies as well as the policies of the organization befire making any purchase with a vendor.

 (c) Purchases occur as a result of derived demand- 

There is tremendous competition in the market for selling and buying goods/ services in order to formulate the final product. Demand for a detergent which helps reduce washing time as well as readily removes tough stains is the derived demand which creates purchasers to achieve the best deal in order to fulfill customer expectations as well as reduce company costs by increasing the value offered.

The Howard Sheth Model

The Howard Sheth theory of buyer behaviour is a sophisticated integration of the various social, psychological and marketing influences on consumer choice into a coherent sequence of information processing. It aims not only to explain consumer behaviour in terms of cognitive functioning but to provide an empirically testable depiction of such behaviour and its outcomes (Howard 1977). 

Utilizing the learning theory thoroughly and systematically, John Howard came out with the first truly integrative model of buyer behaviour. He was the first to introduce the difference between problem solving behaviour, limited problem solving and automatic response behaviour. 

The model is essencially an attempt to explain brand choice behaviour over time and therefore specially pertinent to our field. Focussing on repeat buying, the model relies on four major components - stimulus inputs, hypothetical constructs, response outputs and exogenous variables. 

Sales Management

Understand the sales function:

Marketing is the management as well as creation of demand. Sales on the other hand is converting demand to revenue.
Consumer becomes a customer when the sale is over.

According to AMA,
The planning, direction, and control of the personal selling activities of a business unit, including recruiting, selecting, training, equipping, assigning, routing, supervising, paying, and motivating as these tasks apply to the sales force. 

Sales management involves three interrelated processes: (1) formulation of a strategic sales program; (2) implementation of the sales program; and (3) evaluation and control of sales force performance.

 In formulating the strategic sales program, sales management involves a number of activities including development of account management policies, demand forecasts, and quotas and budgets; sales organization; sales planning; territory design; deployment; and routing. 

In implementing the sales program, sales management activities include supervising, selecting, recruiting, training, and motivating the sales force. In addition, implementation requires the development of compensation systems and sales force incentive programs. The evaluation and control of sales force performance involves the development and enforcement of methods for monitoring and evaluating sales force performance. Sales management activities typically required for evaluation and control include behavioral analysis, cost analysis, and sales analysis.

Bringing on an emotional connect with the consumer, Surf Excel has strived long to build a strong message around the idea that stains are good. And, the latest promotional campaign ‘The power of 10 hands’ strengthens it only further.

Distribution Decisions

Distributors:

Distributors are the institution through which availability of products is possible. Unilever’s

distributors have a very good relationship with them. And the important thing is that they must
integrate into total marketing mix because of time and money required to setup an efficient
channel.

Marketing Channels and Value Networks:

Thus, HUL follows a 3-Level Consumer distribution structure.

 

Importance of Marketing Channels:

Channels provide ease of distribution of the product of value to the consumers. They are the set of pathways a porduct or service follows after production. They are not created just to serve markets, Channels must be created to make markets.

 

The Role of Marketing Channels:

All channels have promotional material moving through them. The point wherein we can purchase along the channel is known as point of purchase.

 

The modern trade format comprises of the following three techniques:

Sales Promotion + Distribution + Personal Selling

 

Channels produce five service outputs,

 

1. Lot size - The no. of units one can purchase from the channel on one occasion.

2. Waiting and Delivery time - Fast delivery channels are preffered by consumers.

3. Spatial convenience - The degree to which the marketing channel makes it easier for customers to purchase products. HUL makes Surf available easily at various levels of the channel. Thus making it convenient to the consumers.

4. Product variety - The assortment provided by the channel creates a lot of choices for the consumer.

5. Service backup - Add-on services provided by HUL to provide greater service backup.

 

 

 

 

Promotion BTL

BTL Promotion:

Here, promotion is done at an individual level. The customer is directly given the product experience by introducing him face to face with the offering.

Here, the consumer does not have any doubt as to how the product will function once he procures it.

The functionability as well as the performance is viewable at the time of introduction of the product.

The following is a recent promotion using the BTL technique;

Surf Excel: TV Off on Facebook
The campaign aims to create dissonance about TV viewing habits in children and urges parents to take a pledge to encourage their children to spend less time with the TV.
Surf Excel, the detergent brand from the HUL Group, has launched TV Off - Life On campaign on Facebook. The campaign aims to create dissonance about TV viewing habits in children and urges parents from across the country to take a pledge to encourage their children to spend less time with the TV.

The campaign is launched in association with Techshastra, a digital agency, which came up with an app on Facebook to promote the idea. Following this, mothers will be encouraged to ask questions and air their worries about children watching too much TV.
The agency has also scheduled an expert in child development to address these problems and offer practical solutions on how mothers can address this.
 



 

 

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.

 

 

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.

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.

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. 

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.




 

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:

Creating Customer Value

Customer Value:

Customer is the one for whom we create business.

Customers have a perceived vision before purchasing a product/service. They have certain expectations which they feel the product will fulfill. When the customer finalizes a product from a range of varieties, he believes that it will deliver value better than the others. For the customer to choose Surf as the product that he finally checks out at the cashier, it is necessary to provide way more than what he is exactly looking for!

Customer Perceived Value ( Surf Excel's power of 10 Hand's ):

The power of giving your clothes the freshness they deserve in just a single wash without even brushing them several times, is what Surf Excel Easy Wash provides to you. It has the Power of 10 Hands to remove tough stains easily.

New Surf Excel Easy Wash is a superfine powder which dissolves instantly to unleash the Power of 10 Hands to remove tough stains like mud, ink, oil, chocolate very easily! 

  

Total Customer Benefit:               

                            

The total customer benefit is aimed at providing the

 perceived monetary value as well as the economic, functional and psychological benefits which the customers expect from a given market offering.

Surf Excel believes that stains are good. You cannot restrict yourself from experiencing certain situations only because you fretted over the dirt. 

Let yourself go, enjoy every filthy experience life has to offer; because we take care of all the after effects!

 Total Customer Cost: 

 A. Monetary Cost

B. Time and Energy cost:

Surf Excel being available at major retail and Kiranamala outlets, it is very convenient for the consumer to procure the product or call for it to  be delivered at the doorstep. Thus, one doesn't have to invest much in time and energy.