21739056 strategic marketing planning
Post on 18-Nov-2014
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Introduction to Industry
Laundry Market in South AsiaPakistan’s Laundry IndustryIntroduction to UnileverUnilever’s Market share in PakistanIntroduction to SURF EXCEL
Customer Analysis
Competitor Analysis
Perceptual MappingCustomer based approachStrategic groups approachEvaluating competitors
Market AnalysisDistribution StructureActual Market SizeMarket Growth PotentialIndustry Attractiveness Summary
Environmental Analysis
Internal Analysis
Recommended StrategiesObjective of SURF EXCELCurrent Marketing Strategy Future Strategy
Pakistan’s Laundry Industry
Detergent Market Soap Market
Laundry powder 240000 tons(10 billion)
Laundry Soap 420000 tons(17 billion)
Major Players in Detergent Industry are
Unilever..
Vision
Mission
Touching HeartsChanging Lives
Mission is to add Vitality to life. Meet everyday needs for nutrition, hygiene and personal care with brands that help people look good, feel good and get more out of life.
Grow superior brandsImpactful innovationCompletive functional benefitsImpactful and effective communicationWin with customersDeliver best customer serviceFit to competeDeliver vitality
Core Values
Unilever’s Market share in Pakistan
SURF EXCEL
Surf excel was launched in 1995 in Pakistan They have always believed that dirt is a valuable way to enrich our lives, both young and old.
Launching affordable SKU’s
Reduce the time, physical effort and amount of water needed to wash clothes by hand
Geographic Segmentation
Location All over Pakistan (rural urban)
Population 180million approx
Demographic Segmentation
Age 18 and above
Family Size Small / Nuclear Family
Occupation Housewives / Mothers
Target Market
Physiographic Segmentation
Class A / A- / B+ / B / B-Those who want their kids to learn while growing but conscious of dirt.
Psychological Characteristics
Brand Conscious, Status Conscious, Highly Educated, self motivated
Behavioral Segmentation
Motives Self Actualization
Category High End Needs
Involvement Low Involvement
Benefit Sought Segmentation
Stain Removal Want stain removal in one go/wash
Customer Analysis
Customer Motivations
Unmet Needs
Complete cleaning of stains and all in just one wash
A customer wants to save energy and water while doing their laundry.
Customers want to reduce the laundry burden and thus are looking for complete cleaning of stains in one go.
Customers looking for a detergent which takes care of their hands also (doesn’t dry them)
Over price and quality customers prefer good quality so that their laundry job is done without any nuisance
Reduces wrinkling so less ironing.
Uses less water-with water issue.
Anti bacterial formula-doesn’t allow germs to form when you sweat
Going for different skin types/allergies-people who have dry
Direct Competitors
Class A / A- / B+ / BFamily Size Small FamilyOccupation Housewives /
Mothers
Class B / B- / C+ / CFamily Size Medium / Big
FamilyOccupation Housewives /
Mothers
Evaluating Competitors
Marketing Objectives
To increase market shareSwitch consumers from existing brand to Ariel Product innovationBrand loyalty increase
Variants Currently there are only 2 variants available
Ariel OriginalAriel Jasmine
Ensure top of mind recall
So that the consumer can remember the brand amongst competition
Strengths of Ariel Weakness of Ariel
Economies of scaleGood distribution NetworkCaptures shelf space Perceived as premium brandHuge R& D-Financially backed by P&G
Considered no2 with respect to surf excelNo variants in Pakistan (surf excel has surf excel matic)
Customer Benefit-
Right now Ariel is focusing on giving customers savings up to Rs.100
Ariel is associating the brand with customer on the bases to give them superior quality and makes the ground for customer to provide a theme which cause to have happiness.
Target Market ARIEL target market includes Middle Class, Upper Middle Class and Upper Classes of the population of Pakistan. The Ladies of Pakistan who are very conscious about their family.
Market Positioning
Trusted and premium brand of Pakistan. customer satisfaction to their consumers.
Now they are also focusing on savings where surf excel focuses on dirt being good for development Ariel uses savings approach.
They have previously used Mrs Zubaida Tariq who is considered and expert on household advisory telling to use Ariel like she tells tips i.e. Totka’s.
Evaluating Competitors
Evaluating Competitors
Marketing Objectives
Increase Market Share
VariantsBrite SurfBrite Total
Ensure top of mind recall
“Chamaktee Safai”Brite Total’s
Customer Benefit-
Whiteness + ShineBest Quality / QuantityAffordable prices
Target Market
Lower Middle Class, Middle Class, Upper Middle Class and Upper Classes
Market Positioning
Ultimate clothes washing solution. Regardless of the texture, quality of cloth,
There tag line includes “Daag to chala jaye ga par yeh pal wapas nahi aye ga”
Strengths Weakness
Well known detergent, has strong market presenceCleanlinessGood distribution ( due to C&P
No line ExtensionNo variety (no machine powder etc )Focuses on Stains which is surf excel’s positioningNot as such perceived as a premium brand
Distribution Structure
DetergentIndustry
National Sales Distributor
Regional Sales Distributor
Common Distributors
Wholesalers
Retailers
Macro Outlets
Retailers
Final Consumer
2008 Distribution Share
Market / Product SegmentDistributor
/ RetailDistributor/ Wholesaler
Detergent Industry 55% 45%
2008 Distribution Share Competitors
CompaniesDistributor
/ RetailDistributor/ Wholesaler
Unilever 50% 50%
P&G 60% 40%
Distribution Structure
Actual Market Size
Market demand of 230,000-240,000 tons of detergents.
The local detergent industry is producing around 175,000 tons.
There is demand-supply gap of about 55,000 tons.
Laundry Detergent Powder (LDP), as its market stands at 240,000 tons annual with a growth almost 10 percent a year.
Unilever has 40pc of the market for detergent powder.
In the Budget 2009-2010 it was stated that Annually, local producers supply the local market with 660,000 tons of laundry soap [420,000 tons]
Market Potential
Detergent Market is growing by 10-12%.
At present Consumer prefer detergent on the base of quality, especially the upper class they are very quality conscious
Pakistani Peoples are moving from rural areas to urban areas as life style is changing.
Advertising is promoting the detergents by comparing the functionality of different detergents and laundry Soaps.
Increase awareness of usage benefit of detergent.
Preference to use detergent to avoid the bad smell which comes from washing with soaps (as advertised by LDP’s)
Industry Attractiveness Summary
Components ImplicationsThreat of new entrants High
Bargaining power of buyer Low
Threat of substitutes Moderate to low
Bargaining power of suppliers Moderate to low
Threats of rivalry among competitors
Moderate to low
SWOT Analysis
Strengths Strong brand image and brand awareness of ‘Surf Excel’.
Large sales force.
Strong and healthy relationships with distributors and retailers.
Strong brand portfolio
Wide Innovation aspects
Excellent distribution
Success of slogan-stains are good
WeaknessStrong competitors
High price of product
Substitute product
Opportunities
Changing life style
New markets
Increased standard of living
More awareness
High rate of population growth.
Rising literacy.
Threats
Unbranded/ smuggled washing powder
Political issues
Rising inflation,
Profit margin is exposed to rupee devaluation.
Threat of imposing regulatory duty
Brand Association
Stain removal Powerful cleaning
Brightness of colors intactGood packaging
Good fragrance
Brand Advertising
Brand Update
Brand Positioning
Objective
“To be the best possible cleaning solution in the market”
Sub - Objective
Approaching new marketsInnovation
Maintaining brand loyalty
Current Marketing Strategies
Focusing towards Surf Excel Matic
Focusing Brand Association for current Brand
Research has shown high penetration of washing machines in Pakistan.
70% penetration in rural and over 90% penetration in urban areas.
Cleaning criterion in washing machines is different.
Hence the need for a stronger more compatible powder
4-P’s of Marketing
Product Launching a specialist powder which is exclusively used for machine washing.
Price Matic is a superior powder that costs more to maintain certain margins hence the higher price.
Place Same distribution through modern trade (superstores) and kiryana stores etc
Promotion
Regular education and awareness-building campaigns
Stock availability in relevant outlets.
Moreover, as consumers become more aware it is important to build credibility of an offering like Surf Excel Matic.
To fulfill this requirement, Surf Excel Matic has also made co branding arrangements with Pakistan’s leading White goods manufacturer Dawlance
Future Strategy
They could come up with Surf Excel Anti Bacterial and Ultra Violent Protection.
Currently mothers are concerned with health issues for e.g. if a child is playing in mud, or is holding a dirty dog, or vomited on his clothes, than there are chances that he is playing or bringing in germs as well. So when she's washing the clothes she's removing just the dirt and not the germs which are in the clothes.
Secondly you are not even sure if you are transferring germs from one bucket into another.
Strategy Alternatives
Improve packaging of product as the current plastic bags once get opened are hard to maintain and handle.
Branding some local laundry shops and selling the product to those shop owners at minimum revenue.
Go into new products like liquid washing solution / laundry detergent that is super concentrated so you use 75% less liquid could be the, meaning less packaging and easier carrying.
Or attracting consumers through detergents with functional benefits such as scents, creating new forms of products such as liquid detergents.
Entering adjacent markets such as the pre-wash and post-wash segments.
Strategy Alternatives
Value Proposition
Functional Benefits
Cleans and protects
Emotional Benefits
Dirt is good
Self expressive
Learning by doing
Target Market
Marketing Mix
Product An innovative product which caters to environmental concerns. A product which deals with the harmful UV rays. So you can go out more in the sun without worrying too much about the rays.
Pricing Surf excel is a premium product and is giving health benefits thus a higher price will be charged.
Promotion Using TV advertising and radio as well as news papers and billboardsPromotional campaigns like Games Masti which was done in 2007, there can be an event which indulges kids in games and educates the mothers about what their child is up against when he or she is playing out in the sun. Regular advertising will be used which will transcend any communication barriers.
Place Available in all the retail outlets where Unilever has presence to have more market reach more retail outlets can be channelized.
Operation Plan
Assets and Competenc
ies
Good Company
Image
Good Retailer Network Organizati
on Culture
Communication Strategy
Events
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