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Tag: Detergent market

  • Surf Excel Marketing Strategy & Market Share in India Explained

    When it comes to marketing, every business has some tactics and strategies that help it to achieve the desired goals. A marketing plan describes a company’s overall effort to acquire new customers. One of the most powerful marketing strategies a brand can employ is to have an excellent marketing strategy in place.

    The Indian market is full of companies with excellent and effective strategies that boost their sales and overall brand image. One of the most known brands in the Indian market and Indian households is Surf excel. Surf excel is a well-known detergent and soap brand that is connected with clothing and apparel care. Surf excel divides its service offerings into Hand wash and Machine wash subcategories as part of its marketing mix.

    Hindustan Unilever Limited (HUL) and Unilever Sri Lanka own the Surf brand. Surf was launched in India in 1959. Surf suffered several changes in its brand communication as a result of the creation of numerous local detergent manufacturers and the advent of other worldwide brands and was eventually replaced by Surf excel in 1996. With 43% share of India’s detergent market share, Surf excel has become HUL’s first brand to reach $1 billion sales in 2022.

    Surf excel devised the ideal product layering method. When a product is utilized, a new variant and range of the product is created. This strategy and several others has led to the success of Surf excel in the Indian market. Let’s begin by learning about the Surf excel Marketing Strategy’s price, product, advertising, and distribution strategies.

    Surf excel Pricing Strategy
    Surf excel Product Strategy
    Surf excel Place & Distribution Strategy
    Surf excel Promotion & Advertising Strategy
    Surf excel Competitor Analysis

    Surf excel Pricing Strategy

    All of its items are less expensive than the P&G brand Ariel. This is owing to Indian customers’ price sensitivity across the board. Surf excel uses product line pricing to price its premium-segment products higher than its mid-range-segment commodities. To appeal to customers who wish to spend less money on a single transaction, the company distributes its products in various package sizes based on weight. For the series of items, it intends to advertise, Surf excel uses a product-bundling pricing approach. In reaction to market developments, Surf excel gives periodic price discounts and frequently revises its rates. The offers are of two types: one is a quantity discount given on bulk purchases, since it wishes to instill the culture of bulk purchasing in consumers in India in order to increase efficiency in its activities, and the other is seasonal discounts.

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    Surf excel Product Strategy

    Surf excel Products
    Surf excel Products

    Surf excel divides its product range into Hand wash and Machine wash subcategories as part of its marketing mix. Hand washing is aimed at people in the middle class who cannot afford or do not want to use a washing machine. Surf excel liquid detergent, Surf excel bar, and detergent powders including Surf excel Quick Wash and Surf excel Easy Wash are among the Surf excel items in this category. Surf excel has introduced a machine wash product under the Matic sub-brand. The Matic family of products is designed specifically for front-load and top-load washing machines. Surf excel Matic Liquid front load, Surf excel Matic Liquid top load, Surf excel Matic front load detergent powder, and Surf excel Matic top load detergent powder are only a few of the company’s products.

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    Surf excel Place & Distribution Strategy

    In India, Sri Lanka, Bangladesh, and Pakistan, the Surf excel line of items is offered. India accounts up a significant amount of the brand’s sales. In all of these nations, HUL had a country-wide distribution network as part of its marketing mix. The product was largely available in India through conventional wholesalers and retailers. Surf excel has direct presence in 9 million retail outlets as of 2022-2023 data, with a network of 7000 wholesalers and over 2000 suppliers and partners. HUL sells Surf excel in rural areas through rural merchants with reduced pack sizes, although its primary focus is on promoting Surf excel in urban areas.

    Surf excel Promotion & Advertising Strategy

    Surf excel uses a wide-angle marketing strategy to promote its items. The company’s entire advertising is predicated on the premise that “Dirt is Good.” For the brand, HUL has used both an above-the-line (ATL) and a below-the-line (BTL) promotion approach. In ATL, the corporation places a strong emphasis on great television commercials. Surf excel has used numerous themes to highlight youngsters in its ad campaign in order to develop an emotional connection with clients. For its ad campaigns, the firm has recruited a variety of TV and movie superstars. Billboards, posters, and print media such as newspapers, magazines, and major radio stations have also been used by the corporation.

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    Surf excel Competitor Analysis

    • Surf Excel (HUL)
      Holds a 43 % market share in India’s detergent market—cementing its position as the undisputed leader.
    • Procter & Gamble (Ariel & Tide)
      Captures approximately 20 % of the market with Ariel (premium positioning) and Tide (mid-priced segment).
    • Nirma
      Commands around 12 % of the Indian detergent market, appealing strongly to price-sensitive consumers.
    • RSPL (Ghari Detergent)
      Holds an 8 % market share, with a solid presence in the value-to-mid segment.
    Brand (Company) Approx. Market Share
    Surf Excel (HUL) 43 %
    Ariel & Tide (P&G) 20 %
    Nirma 12 %
    Ghari (RSPL) 8 %
    Others (including Wheel, Ujala, etc.) ~17 %

    Conclusion

    Surf excel is a popular and hero product of Hindustan Unilever which became first Indian home care brand to top $1 billion annual sales with a total sale of INR 8,200 crore in 2022. Surf excel is a very successful brand and has created a solid position in the detergent market of India with its effective strategies and tactics to attract the Indian customers and provide premium quality with reasonable prices. Surf excel, a market leader in India’s detergent business, has consistently developed and launched new product forms to meet the evolving needs of Indian customers. With taglines like “Daag Acche Hain” is deeply imprinted in Indians’ subconscious mind, Surf excel has been successful in capturing the place in everyone’s subconscious minds.

    FAQs

    Why was Surf excel boycotted?

    Hindustan Unilever Ltd (HUL), the maker of Surf Excel, has been accused of being “anti-Hindu” and “anti-national” for its Colors Unite (Rang laaye sang) advertisement by critics.

    Is Surf excel brand a bleach?

    No, it is a laundry detergent.

    What is Surf excel brand used for?

    Surf excel is a detergent brand. Its products are used for handwashing or machine-washing of clothes.

    Is Surf excel company an Indian brand?

    No. The Surf brand is owned by Hindustan Unilever Limited (HUL) and Unilever Sri Lanka.

    When was Surf excel launched in India?

    The Surf excel brand was launched in Indian consumer market in year 1959.

    Surf excel company is a product of which company?

    Surf excel is the product of Hindustan Unilever Limited (HUL) and Unilever Sri Lanka.

    What is Surf excel market share in India?

    Surf Excel leads the Indian detergent segment with a substantial 43% market share, based on the most recent figures from 2023.

    What is USP of Surf excel?

    Surf Excel’s USP is “superior stain removal with the emotional promise of ‘Daag Achhe Hain’ (dirt is good)”, combining effective cleaning with values of learning and care.

  • Nirma’s Dance to Detergent Dominance and Its Unexpected Decline

    In the 1980s, an iconic TV ad featured the Nirma girl dancing to a catchy tune, marking the beginning of an unexpected business competition that eventually produced an unlikely Indian tycoon. Karsanbhai Patel, the son of a humble farmer and a science graduate, initially worked as a lab technician at New Cotton Mills in Ahmedabad, owned by the Lalbhai group. Following this, he served as a chemist for the Gujarat government’s Department of Mining and Geology in 1969.

    Utilizing his laboratory expertise, Patel endeavored to create a detergent using soda ash and other materials. Once he perfected the formula, he began manufacturing detergents in his modest 100-square-foot garden as a part-time venture. Pedaling through neighborhoods, Patel sold his detergent door-to-door for Rs. 3, significantly cheaper than Hindustan Unilever’s Surf priced at Rs. 13. During his 15-kilometer daily bicycle commute to work, he sold an average of 15-20 packets each day, contributing to the surge in demand for Nirma in his hometown of Ruppur, Gujarat.

    Recognizing the business potential, Karsanbhai Patel left his job after three years to focus on Nirma. He named the detergent in memory of his daughter Nirupama, affectionately known as Nirma, whose unfortunate demise was commemorated through the girl in the white dress featured on the packaging and in TV ads.

    Nirma quickly gained popularity among the middle and lower-middle class, thanks to its high quality and affordable price. Diverging from the conventional strategy of expanding from major cities outward, Nirma adopted a bottom-up approach, targeting second and third-tier cities and towns instead of affluent areas where rivals like Surf dominated.

    However, despite initial success in Ahmedabad, Nirma faced challenges finding retailers as shops hesitated to stock an unfamiliar detergent. In an attempt to boost sales, Karsanbhai extended credit to shopkeepers, but the delayed payments and excuses led to significant losses. This prompted him to instruct his team to retrieve all unsold Nirma packets from retail outlets, resulting in further financial setbacks for the company.

    Despite these setbacks, Karsanbhai Patel’s determination and innovative approach ultimately reshaped the business landscape, making Nirma a household name in India.

    Promotion played a crucial role in enhancing Nirma’s visibility, as Karsanbhai Patel devised a strategic initiative to address obstacles and enhance the brand’s awareness.

    Nirma’s advertisements successfully positioned the brand ahead of rivals like Surf. While competing brands depicted mundane laundry activities, Nirma’s ads presented the chore playfully and engagingly, resonating with consumers. The heightened demand for Nirma detergent in the 1980s, driven by these advertising efforts, led the manufacturer to withdraw a significant portion of its supply from shelves temporarily.

    In 1985, Nirma achieved a milestone by surpassing Surf to become India’s most popular detergent. By 1988, Nirma commanded a substantial 60% share of the country’s detergent market.

    Expanding beyond its core product, Nirma diversified its offerings to include bathing soaps and introduced new products such as soda ash, salt, and scouring items. The brand’s success prompted a response from FMCG giant Hindustan Lever Limited (now HUL), leading to the launch of Wheel washing powder in 1988 as part of Operation STING (Strategy to Inhibit Nirma’s Growth). Despite HUL’s efforts, Nirma maintained its dominance, holding around 60% market share and selling over 1.72 lakh tonnes.

    Nirma’s characteristic jingle, “Doodh si safedi Nirma se aaye, Rangeen kapda bhi khil khil jaye,” persisted in its advertising for over a decade. The brand’s Deepikaji character, competing with Surf’s Lalitaji, became a notable figure in the detergent market.

    Washing Powder Nirma – Historic ad

    While Nirma allocated a modest 3-4% of its revenue to marketing communications, significantly lower than competitors spending 6-8%, the brand remained consistent with its campaign over the years. Notably, Nirma collaborated with Bollywood actress Sonali Bendre to endorse its beauty soaps.

    Sonali Bendre - Face of Nirma Beauty Soap
    Sonali Bendre – Face of Nirma Beauty Soap

    Despite these successes, Nirma faced challenges in diversifying its product portfolio, and introducing toothpaste and hair care products, but struggled to differentiate and position itself effectively. As consumer preferences shifted towards aspirational purchases, Nirma’s low-cost strategy began to lose traction, and the brand encountered difficulties in retaining market share against unbranded competitors. Efforts to introduce products like ‘Nirma blue’ and ‘Nirma cake’ fell short in creating a distinctive identity.

    The Decline

    In contrast to other detergent brands that embraced viral and diverse advertising campaigns along with a range of product offerings, Nirma maintained a consistent approach and refrained from innovation. While competitors, both multinational and local, focused on visibility, viability, and affordability in their messaging, Nirma primarily emphasized affordability. Despite cost increases in key ingredients like Linear Alkyl Benzene (used in detergent manufacturing) and palm oil (used in soap manufacturing), Nirma has refrained from raising its prices for an extended period.

    According to analysts at a Mumbai-based brokerage firm, “While rivals have diversified products across various price points to counteract input cost effects, Nirma is solely positioned as a value-for-money option.” This singular focus has proven detrimental to the brand, resulting in a declining market share in its core business. The company’s stock price and profitability have witnessed a continuous decline since April 2006, with several key factors contributing to its downfall:

    1. Lack of Innovation – Nirma has displayed minimal improvement and innovation in its product lines, reflecting a sense of complacency stemming from its market leader position and a failure to adapt to evolving market dynamics.
    2. Consumer Perception – The low pricing strategy led consumers to perceive Nirma as an inferior brand. This perception was further exacerbated by the premiumization of the detergent segment by FMCG giants such as HUL and P&G.
    3. Lack of Focus – Beyond its initial years, Nirma struggled to identify its core competencies and comprehend its strengths. Ventures into other segments proved costly for the company, contributing to its overall decline.

    The case of Nirma serves as a compelling narrative of the business dynamics, emphasizing the importance of adaptability, innovation, and strategic focus in the competitive market. Despite facing setbacks in its later years, Nirma’s legacy remains intertwined with the dynamic shifts in consumer preferences and the evolving landscape of the FMCG sector in India.

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