ConsumerConsumerBehaviourBehaviour

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The War BetweenThe War BetweenSURFSURF ARIELARIEL

&

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The Scenario Of Indian The Scenario Of Indian Detergent MarketDetergent Market

• Total market 23 lakh tons in volume

• 7 lakh tons market laundry soaps & bars

• 16 lakh tones market synthetic detergents

• 40% detergent cakes

• 60% detergent powder

• 40% share of HLL (Surf approximately 10-12%)

• 5% share of P&G (Ariel approximately 1-1.5%)

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Launch of Surf & ArielLaunch of Surf & Ariel

• Surf introduced in 1959 by HLLSurf introduced in 1959 by HLL

• Ariel introduced in 1985 by P&G Ariel introduced in 1985 by P&G

• Price War Price War

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Pricing StrategyPricing Strategy

Products Products 20 20 gm.gm.

200 200 gm.gm.

½ ½ kg.kg.

1 1 kg.kg.

1½ 1½ kg.kg.

3 kg.3 kg. 4 4 kg.kg.

Surf Excel Surf Excel BlueBlue

2/-2/- 16/-16/- 41/-41/- -- 113/113/--

240/240/--

310/310/--

Surf Excel Surf Excel Quick Quick WashWash

2/-2/- 26/-26/- 56/-56/- 109/109/--

-- -- --

Ariel Ariel 2/-2/- 26/-26/- 55/-55/- 107/107/--

150/150/--

-- --

TideTide 1.5/1.5/--

11/-11/- 26/-26/- 51/-51/- -- -- 220/220/--

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Distribution StrategyDistribution Strategy

• Distribution chainDistribution chain– Manufacturer-> regional stockiest-> retailer-> Manufacturer-> regional stockiest-> retailer->

consumerconsumer– Manufacturer-> wholesaler -> retailer-> Manufacturer-> wholesaler -> retailer->

consumerconsumer

• Distribution marginDistribution margin– HLL 5%, Surf approximately 1-1.5%– P&G 6%, Ariel approximately 1-2.5%

• P&G is now trying to share off distributor P&G is now trying to share off distributor margin by 2% margin by 2%

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Advertising & Promotional Advertising & Promotional StrategyStrategy• Basic aim is to regain Basic aim is to regain

consumers to consumers to use surfuse surf more and moremore and more

• Spends on A&P is approx. Spends on A&P is approx. 500 to 700 crore500 to 700 crore

• It was a It was a popular brandpopular brand in itselfin itself

• Surf offering a Surf offering a Rin cakeRin cake free as a promotional free as a promotional offer kicked off salesoffer kicked off sales

• Basic aim is to convince Basic aim is to convince the masses to the masses to use Arieluse Ariel more and moremore and more

• Spends on A&P is Spends on A&P is approx. approx. 400 to 600 400 to 600 crorecrore

• Joint promotion with Joint promotion with WhirlpoolWhirlpool

• DemonstrationsDemonstrations• Sales contestSales contest

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Survey Survey • Question. On the basis of following Question. On the basis of following

points, what would you prefer points, what would you prefer SURFSURF or or ARIELARIEL– Price… Packaging… Fragrance… Price… Packaging… Fragrance…

Quality…Quality…

Ariel

Surf

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Surf SWOT AnalysisSurf SWOT Analysis • StrengthStrength

>More famous in North >More famous in North and East sideand East side

>Constantly changing as >Constantly changing as per washing needs per washing needs >Strong brand portfolio >Strong brand portfolio >High quality Manpower >High quality Manpower

• OpportunitiesOpportunities>Growing rural market>Growing rural market>As brand growth, >As brand growth, increase in consumption increase in consumption and usageand usage>Upgrading consumers >Upgrading consumers through Innovation through Innovation

• WeaknessWeakness >Possibility for low price >Possibility for low price

competitioncompetition>Spends on education >Spends on education and entertainment in and entertainment in spite of new productsspite of new products

• ThreatsThreats >Local products and >Local products and

other major competitors other major competitors

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Ariel SWOT AnalysisAriel SWOT Analysis • StrengthStrength

>More famous in South and >More famous in South and Western side Western side>Premium Brand>Premium Brand

>Unique combination >Unique combination of high performing of high performing ingredientsingredients

• OpportunitiesOpportunities >Introducing of new brands>Introducing of new brands >Increase in >Increase in

expenditure for Promotional expenditure for Promotional and Advertisingand Advertising

>Improvement in >Improvement in distribution infrastructure distribution infrastructure

• WeaknessWeakness >Not in reach of rural >Not in reach of rural

areasareas>Ignorance on >Ignorance on distributors return on distributors return on investment investment

• ThreatsThreats >Spurious / counterfeit >Spurious / counterfeit

products in rural products in rural areas and small townsareas and small towns>Local products and >Local products and other major other major competitorscompetitors

1111

RecommendationsRecommendations

• PricePrice

• Promotion & AdvertisingPromotion & Advertising

• MarketingMarketing

• PackagingPackaging

• Effective R&D towards the productEffective R&D towards the product

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ConclusionConclusion

Ariel and Surf are not only major players in Ariel and Surf are not only major players in the Indian Detergent market but Henkel and the Indian Detergent market but Henkel and Nirma are also becoming very aggressive. Nirma are also becoming very aggressive.

By considering all the above points today By considering all the above points today the market is not declining but shifting the market is not declining but shifting towards more perceived value added brands.towards more perceived value added brands.

So every brand has to update itself with So every brand has to update itself with changes to retain it’s position in the market.changes to retain it’s position in the market.

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With Thanks…With Thanks…• Shubhangi GhagShubhangi Ghag 1919

• Ebrahim NazariEbrahim Nazari 4444

• Labdhi SukhaniLabdhi Sukhani 7878

• Dipti Nimse Dipti Nimse 8686

• Kirti Rajput Kirti Rajput 8787