2. HUL: INDIA‟S LARGEST FMCG COMPANY
1931 – Entered as Hindustan
Vanaspathi Manufacturing Company
Limited
• 1933 – Incorporated Lever Brothers
India Limited
1935 – Incorporated United Traders
Limited
• 1956 – Merged to form „Hindustan
Lever Limited‟ (HLL)
• 1992 – Recognised as Star Trading
House in Exports
• 1994 – TOMCO merged with HUL
• 1996 – Acquired Ponds India Ltd
&Lakme India Ltd
• 2007 – Renamed as HUL
3. HUL A 52% owned subsidiary of Anglo Dutch giant
Unilever.
India – 1888 largest FMCG company with 100
factories
Touching 2 out of 3 consumer .
20 distinct categories – Home and personal care
products, food and beverages.
Indian Detergent market : 5100 crore ($1.2 bn).
Detergent bar market makes up for 43% of this
market
HLL commands 38% of the fabric wash market
4. SURF EXCEL: THE BRAND
Launched in 1959 as „Surf‟, it was the first detergent powder in
India
Surf Excel underwent various changes in its Brand
Communication
In 1990, following the launch of Ariel,Surf became, Surf Ultra
In 1996,Surf redefined itself by launching Surf Excel
In 2003, the base variant Surf was re-launched as, Surf Excel
Blue‟
In 2006, it added Rin Supreme Bar as,Surf Excel Bar into its
portfolio
6. SWOT ANALYSIS
Strength
1. Premium Detergent Brand for HUL
introduced in 1959
2. Surf Excel quick wash is powered
with a path-breaking technology- it
reduces water consumption and time
taken for rinsing by 50%
3. Strong distribution network by
HUL, which is beneficial for the
product
4. Good brand visibility and
advertising with new ad campaigns
to keep brand top-of-the-mind
Weakness
1. Slightly Higher price prevents
it from reaching to the mass of
customers
2. Product awareness not high
among rural markets
3. Legal issues due to brand
wars
Opportunity
1. Rapid market growth with further
rural penetration
2. Adapting to changing customer
needs & improving life styles
Threats
1. Low profit margins in
detergent sector
2.Threat from existing and new
players in the market
8. PRODUCT
Product range
Surf excel detergent bar
Surf excel blue
Surf excel quick wash
Surf excel automatic
Surf excel top-load & front load
Target market
Sachet packet (Rs 2/-) – mass market , convenient
& affordable
Detergent bar , Surf excel blue , surf excel
automatic– middle class & upper middle class
9. PRICE
The pricing strategy for Surf
excel have always been in
accordance with its
competitors .
10. PROMOTION
1 st national detergent brand on TV Different
formats of communication.
Commercials through NET & SMS.
Children festival
Sales promotion through aggressive pricing
11. PLACE
HUL distribution network – key
strength (Which helps reach out
its product across the length and
width of the vast country)
Direct coverage in over 1 million
retail outlets
7000 Stockiest
2000+ Suppliers & Associates
12. MEDIA STRATEGY (TRADITIONAL)
Various categories of communication systems like broadcasting, print media,
etc. are used for Surf Excel
Billboards and posters
In the Print Media, such as newspapers, magazines, direct mails, out doors,
etc. are used
In the broadcasting media, television and radio (FM channels) are the major
tools
The frequency of ads is higher during the time slots 1.00 pm to 3.00 pm and
9.00pm to 11.00 pm for stronger impact on target population
Word of mouth publicity Surf Excel : Daag Acche Hain
13. MEDIA STRATEGY (NON- TRADITIONAL)
Organizes various competitions , e.g.
World‟s largest Hand-Printing Competition
(over 70,000 children participated, Surf
excel smart choice contest – lucky winner to
get Whirlpool washing machine
Online promotion strategies –website
www.surfexcel.in
Various initiatives
“Surf Excel and You” suggesting mothers to
encourage active learning in their children,
mother‟s pride – in which mothers can
share their pride stories - special moments
from the moment they have children,
knowledge beyond books, expert advice
Children‟s Club
Social media marketing through facebook –
Santa ClausCarnival etc. Surf Excel : Daag
Acche Hain
14. SURF EXCEL Title sponsors of
TV shows (Surf Excel Little
Masters)
Every year Surf Excel
organizes children‟s festivals –
Kala Ghoda 2010, 2009; Anand
Mela 2007, D-Mart 2008
Surf Excel has it‟s own
YouTube channel wherein
children share their “Dirt is
Good” experiences
Surf Excel tied up with the
movie – Chillar Party Surf
Excel : Daag Acche Hain
15. MARKETING STRATEGY/OBJECTIVES
Surf has been in the market for a long time and has
effectively managed its product life cycle with the
help of product innovations and great marketing
strategies.
Unilever markets detergent products internationally
and uses individual sub-brands to segment those
markets.
Formulation of the detergent and the market
targeted vary by region.
Launching variants in the washing machine
category.
Effective Ad campaing .
Approaching new market.
16. PERFORMANCE ANALYSIS
Sales Growth
During the last 5 years, sales growth at Hindustan Unilever
has not kept pace with the sales growth amongst its
peers. Notwithstanding the fact that the size of HUL is
much larger compared to many of its peers, the
company may be losing its market share due to its slow
pace of growth compared to peers.
17. EBITDA MARGIN
Amongst its peer group, HUL has the lowest
EBIDTA margin. There is no substantial growth
seen in the margins over the last 3 years.
18. DIVIDEND PAYMENTS
The dividend pay-out ratio for
HUL is higher than its peers with
the exception of Colgate
Palmolive. The average dividend
pay-out ratio in the peer group of
FMCG companies was
approximately 58.25% in
FY11/12 compared to the
66.75% paid out by HUL. The
dividend pay-out ratio for HUL
has been consistently higher
than the peer group average for
the past 5 years.
