Marketing Management

Marketing Plan
Submitted To: Sir Mohammad Ahmed Butt

TABLE OF CONTENTS
INTRODUCTION TO SURF EXCEL SEGMENTATION TARGETTING/SELECTION FOCUS VALUE PROPOSITION PRICING SWOT ANALYSIS DISTRIBUTION CHANNELS PROMOTION ADVERTISING CONCLUSION

SADIA KHAN 55441 MARKET SEGMENTATION

MARKET SEGMENTATION:
Dividing a market into smaller groups with distinct needs, characteristics, or behavior that might require separate marketing strategies or mixes.
(Philip Kotler)

BENEFITS OF SEGMENTATION:
1. Effective use of resources 2. Gain a focus 3. Create Value for a target market 4. Positioning

STEPS IN MARKET SEGMANTATION:

Market Segmentation involves these 2 steps: 1. Indentify bases for segmenting the market. 2. Develop segment profiles

LEVELS OF MARKET SEGMENTATION:

Through Market Segmentation, Companies Divide Large, Heterogeneous Markets into Smaller Segments that can be Reached More Efficiently and Effectively with Products and Services that Match Their Unique Needs.

 MARKET SEGMENTATION is a method of dividing a market (Large) into smaller groupings of consumers or organizations which each segment has a common characteristic such as needs or behavior. CONCEPT AND DEFINITION The concept of market segment is based on the fact that the market of commodities is not homogeneous but they are heterogeneous. Market represents a group of customer having common characteristics but two customers are never common in their nature, habits, hobbies income and purchasing techniques.

SEGMENT MARKETING:
Consists of a group of customers who share a similar set of needs and wants that are identifiable Group within a Market with Similar.

Wants Purchasing Power Geographical Location Buying Attitudes

MAJOR VARIABLES OF SEGMENTATION:

The major variables that might be used in segmenting consumer markets are: 1. 2. 3. 4. Geographic Segmentation Demographic segmentation Psychographic Segmentation Behavioral Segmentation

GEOGRAPHIC SEGMENTATION:
Divide the market into different group based on: 1. 2. 3. 4. 5. 6. Nations States Regions Countries Cities Neighborhoods

DEMOGRAPHIC SEGMENTATION:
Divide the market into different group based on:
1. Age 2. Gender 3. Family life cycle 4. Income 5. Occupation 6. Education 7. Religion 8. Race 9. Generation and 10. Nationality

PSYCHOGRAPHIC SEGMENTATION:
Divide the market into different group based on: 1. Social class 2. Lifestyle 3. Personality characteristics

BEHAVIORAL SEGMENTATION:
Divides Buyer into groups based on their: 1. 2. 3. 4. Knowledge Attitudes Uses Responses to a product

SEGMENTATION OF SURF EXCEL:

Demographics In the case of SURF EXCEL the demographics that we have found out are , that any housewife who is both price sensitive as well as quality conscious , belongs to any class, any occupation , if can afford SURF EXCEL will buy it.

Psychographics
People who are ambitious, hygiene conscious, those who want to be authorities are Surf Excel buyers, because when it comes to personality values than no compromise.

MARKET SEGMENTATION:
Surf Excel divided the market into 5 major segments: 1. Quick wash 2. Easy stain removal & whitening 3. Travelling

4. Water conservation 5. Car washing

BEENISH RIAZ SELECTION FOCUS

TARGET MARKETING:
A principal concept in target marketing is that those who are targeted show a strong affinity or brand loyalty to that particular brand. Target Marketing allows the marketer / sales team to customize their message to the targeted group of consumers in a more focused manner.

DEFINATION:
The process of evaluating each market segments attractiveness & selecting one or more segments to enter the market.
(Philip Kotler)

TARGETING:
After the process of segmentation the next step is for the organization to decide how it is going to target these particular group(s). There are three targeting options an organization can adopt. They are:
1. 2. 3.

Undifferentiated marketing Differentiated marketing Concentrated marketing

UNDIFFERENTIATED MARKETING:
Sometimes referred to as mass marketing the firm may decide to aim its resources at the entire market with one particular product

DIFFERENTIATED MARKETING:
Where the firm decides to target several segments and develops distinct products/services with separate marketing mix strategies aimed at the varying groups.

CONCENTRATED MARKETING:
Concentrated market is one where the organization concentrates its marketing effort on one particular segment. The firm will develop a product that caters for the needs of that particular group.

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 Mainly housewives but the things have to be seen in context. Pakistans middle income group comprises about 35million consumers. But Surf Excel is not just targeting the middle income category. With the broadest socioeconomic 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.

TARGET MARKET OF ARIEL

Ariel has adopted the strategy of market aggregation. ARIEL target market includes Middleclass, Upper Middle Class and Upper Classes of the population of Pakistan. The Ladies of Pakistan who are very conscious about their family.

MUSARAT RIND 55354 VALUE PROPOSITION

BRAND POSITIONING STRATEGY:

Positioning is act of designing the company offerings and image to occupy a distinctive place in the minds of target customers. The goal is to locate the brand in the minds of consumers to maximize the potential benefits to the firm. The result of positioning is the successful creation of customer focused value proposition.

COMPETITIVE ADVANTAGE:
The strategic advantage one business entity has over its rival entities within its competitive industry. Achieving competitive advantage strengthens and positions a business better within the business environment.

POSITIONING STRATEGY OF SURF EXCEL:

Positioning of Surf Excel is due to: High Brand name High Quality Attractive package Removes stain Dirt is good(Every child has right to play and discover his own world)

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. The market share of Surf Excel in the detergent powder industry is somewhere around 43%.

COMPETITIVE FRAME OF REFERENCE:

Surf Excel is competing in detergent market Surf Excel major competitor is Ariel. Surf Excel was facing competition from Ariel, the product of P&G. but very soon with the tagline Dirt is good, Surf Excel was Successful in regaining its market leadership. It soon emerged back as the dominant detergent of the country.

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 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.

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.

POINT OF DIFFERENCE AMONG TWO BRANDS:

Ariel:
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 Active ingredients Whereas Ariel came up with their enzimax short for cleaning 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 Excel:
Surf Excel is milder but strong

Surf Excel is formulated with high quality phosphate builders and multiactive surfactant system to deliver superior cleaning in addition this formulation is further fortified with color safe bleach system and enzymes for superior stain removal in washing machines 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.

DIFFERENTIATION STRATEGY OF SURF EXCEL:

Surf excel differentiate its brand on the basis of premium quality, Strong image, strong associations, Attractive packaging and affordable prices.

COMPETITIVE STRATEGY:
In competitive strategy there is some sort of pressures on Surf Excel:

SURF EXCEL
Expenses on Advertising. Strong Distribution Channel. Surf excel has three suppliers it can easily bargain with them effectively

ARIEL
Less Offers & Schemes Less number of intermediaries in distribution channel.

OWAIS BIN TAHIR PRICING

SETTING THE PRICE:

A firm must set the price for the first time when it develops a new product, when it introduces its regular products in to a new distribution channel or geographical area, and when it enters bids on new contract work. The firm must decide where to position its product on quality and price. The firm must consider many factors in setting its pricing policy. Lets look in some detail at a six-step procedure: 1. 2. 3. 4. 5. 6. Selecting the pricing objective. Determining demand. Estimating costs. Analyzing competitors cost prices, and offers. Selecting a pricing method. Selecting the final price.

SELECTING A PRICING METHOD:

We will examine six price-setting methods: 1. 2. 3. 4. 5. 6. Markup pricing. Target-return pricing. Perceived-value pricing. Value pricing. Going-rate pricing. Auction-type pricing.

MARK UP PRICING:
The most elementary pricing method is to add a standard mark up to the products cost.

TARGET-RETURN PRICING:
In target-return pricing firm determines the price that would yield its target rate of ROI. General Motors has priced its automobiles to achieve a 15% to

20% ROI. Public utilities, which need to make a fair, can also use this method.

PERCEIVED VALUE PRICING:

Perceived value is made up of several elements such as buyers image of the product performance, the channel deliverables, the warranty quality, customer support, and softer attributes such as suppliers reputation, trust worthiness and esteem.
VALUE PRICING: In recent years, several companies have adopted value pricing. They win loyal customers by charging a fairly low price for a high quality offering. GOING-RATE PRICING: In going-rate pricing, the firm bases its price largely on competitors prices, charging the same, more, or less, than major competitors.

PRICING OF SURF EXCEL:

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. 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 Quantity 25 grams 50 grams 115 grams Price in rupees 5 10 20

500 grams 1 000 grams 2000 grams

115 210 405

MIRZA DANISH BAIG SWOT ANALYSIS

SWOT ANALYSIS

Strengths
Enjoying economies of scale Goodwill in the market Strong financial position Surf has become a 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 stock of raw material Weak spending on R and D Internal operating problems

Opportunities
Rapid market growth Changing customers needs and wants as life style change To create relation with society on the social marketing basis Pakistan people have moved from soaps to detergent

Threats
There is very tough competition in detergents market Low profit margin Smuggled brand of china New competition in the market Increases in taxes Increases in price due to fuel prices

SYED KHAWER ALI 55314 DISTRIBUTING CHANNELS

DISTRIBUTORS
Marketing channels are set of interdependent organizations involved in the process of making a product or service available for use or consumption. They are the set of pathways a product or service follows after production, culminating in purchase and use by the final end user. Distributors are the instution through which availability of products is possible. Unilevers distributors have a very good relationshipwith them. And the important thing is that they must integerate into total marketing mix because of time and money required to setup an efficient channel.

DISTRIBUTION STRATEGIES
Unilever uses the following multiple channel of distribution.

Unilever uses lots of distributors and retailers to supply its products in each market where the final consumer 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. Surf excel uses a three level channel for their distribution. Company distributes to distributors then distributors to wholesalers then wholesalers to retailers and then retailers sell it to final consumers.

DESIGNING OF CHANNEL FOR SURF EXCEL

Uniliver has adopted the method of intensive distribution for surf excel because the target market of this product is segmented for washing clothes using any method. The customer want to purchase this product from nearest shop as this is convenience product.

AMMAD ZAKI 55330 ADVERTISING

ADVERTISEMENT:
In designing and evaluating an ad campaign, marketers employ both art and science to develop the message strategy or positioning of an ad__ what an AD attempt to convey about the brand and its creative strategy, how the AD expresses the brand claim. The ADs impact depends not only on what it says but often more important how it says it.

FACTORS FOR DECIDING MEDIA STRATEGY:

Which one is more effective? Cost benefit More access

ADVERTISING STRATEGY OF SURF EXCEL:

Unilever Pakistan Limited use radio, TV and Billboards and newspapers for advertising purposes. The brand advertisement plan is based on an annual basis, which is made on the basis of a s s u mp t i o n s a n d c o mp e t i t or s mo v e s . T h e s e p l a n s a r e d i s c u s s e d a n d r e v i e w e d e v e r y month and modifications / changes are made if required. If any change is required than it needs to be approved from the Directors. Th e y d i v i d e t h e a d v e r t i s e me n t b u d g e t i n t o t wo p a r t s , f i r s t p a r t i s f o c u s e d o n Th e me 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 i n v i e w t h e t a r g e t c o n su me r s . Th e r e a s o n f o r h e a v y a d v e r t i s e me n t o n T e l e v i s i o n i s because TV is the major Influencer media, so major share of the advertisement goes to TV. Surf excel promotes its product mainly by two types of media:-

ELECTRONIC MEDIA (TV AND RADIO):

In electronic media surf excel promotes its products through the use of TV commercials radio, and via internet ads, as TV is main media in Pakistan so surf excel consumes 80%of its budget on electronic media of which h a large amount is spend on TV commercials. The basic idea in the commercials is based on stuns and children. 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, for example PTV, GEO, ARY, HUM TV, ATV etc. Media advertisement budget will be approximately Rs30, 000,000 in 2010 which was Rs27, 939,217 in 2009 with 1.35% of total advertising expenditures in Pakistan. Radio stations such as FM 100, FM 103 and FM 106.2 are now a days being used.

PRINT MEDIA:
Print media offer a stark contrast to broadcast media because readers consume them at their own place. The two main print media are newspaper and magazines. Magazines are typically more effective at building user and usage imagery. Newspapers are popular for local especially retailer advertising. Through ads on newspaper and via billboards surf excel advertise its product to those who spent less time on watching TV. Print media is also used when the company wants to share detail product specification or when company wants to

have more say about the p r o d u c t , a s p r i n t me d i a i s r e l a t i v e l y a c h e a p w a y o f a d v e r t i s e me n t s a s c o mp a r e t o electronic media. Jang and Nawaye- Waqt is being used for advertisement in front page.

Advertising agency of surf excel:

T h e s u r f e x c e l a l o n g wi t h o t h e r b r a n d s o f Un i l e v e r ma i n l y p r o mo t e d o n T V b y t h e following advertising agency of Pakistan:-

LOWE & RAUF (PVT) LTD

The company was established in 1951 as Unilevers in house advertising agency which is known for its professionalism and long term brand building expertise. This company is promoting the surf excel in Pakistan