Marketing Mix: Surf Excel and Unilever

NB: We do not resell your papers. Upon ordering, we do an original paper exclusively for you.

NB: All your data is kept safe from the public.

Table of Contents

Introduction
Elements of marketing
References

Introduction

Marketing is a combination of strategies and methods used by companies to identify, build and maintain gratifying relationships with customers therefore, benefiting both the customer and the marketer (Amity Institute of Higher Education, 2011). For a successful marketing strategy, a marketer needs to combine, in a balancing manner, the right elements and processes. This is dependent on the nature of the products, services or ideas that the company wants to market.

It also comprises the decisions the management make in the implementation of the positioning strategy and in line with the achievement of the company’s overall objectives. Moreover, a marketing mix will involve the marketing tools the marketer uses to achieve these goals in the target market according to Armstrong & Kotler, (2009). The four marketing elements are product, place, price and promotion.

Elements of marketing

Product

A product simply means what the firm has to offer to its target market. Firms attempt to provide solutions to the problems of their target market, which may be in form of tangible, intangible (or both) product offerings. These products satisfy the needs of the market, help generate income for the firm and profits for the stakeholders.

Non-for-profit organizations such as regulatory authorities get their revenues from the same product. In creating the right market mix, marketers need to come up with the right product features and benefits such as branding, labeling, style, installation, durability, packaging and quality that will satisfy the customers (Amity Institute of Higher Education, 2011).

Pricing

The marketer has to make decisions on pricing as an element of marketing mix. Price refers to what must be surrendered by one party in order to receive something from another one in a transaction. However, it may mean different things to the parties that are doing the transaction.

To the buyer a price is what he/she has to part with in order to obtain benefits or gain access to a good or service. This may not always be in monetary terms since in barter trade no money is involved. To the seller, price is the earnings he/she gets from each product and therefore important to the profits he gets (Armstrong & Kotler, 2009).

Apart from a profit factor to a marketer or a firm, price also acts as a marketing tool. In marketing mix, pricing decisions are very important and marketers should pay a keen interest. This is because, pricing, is the most flexible element in the mix and can be changed rapidly if need be; the other elements may take months to change. Setting the right price for products means the company generates satisfactory revenue and therefore adequate research, analysis and strategic review are important.

The price of a product also creates the first impression on the customer even though the final decision is based on other considerations. Finally, pricing is an important tool for sales promotion. Price features of a product such as discounts, price variations, trade-in terms, price discrimination and payment terms are decisions that are made in pricing to create the right price for a product (Amity Institute of Higher Education, 2011). Promotion

Promotion is described by Nielsen, (2011) as channels of communication through which firms use to reach a target audience with a specific message in order to reach their goals. These channels may range from celebrity endorsement of a company’s product to a small retailer handing out fliers on the street about his product offerings. A promotion strategy should have in account all other aspects of the products such as pricing, distribution and the market targeted and also should be aligned with the overall goals of the firm.

In addition, promotion techniques of a firm should be coordinated in what is known as Integrated Marketing Communication, which includes liaising with other functions of the company. This is important in order to carry a consistent message across all promotion campaigns. A promotional mix could include advertising, direct marketing, public relations, sales promotion and sponsorship (Amity Institute of Higher Education, 2011).

Place

The place element of marketing mix simply means that, target customer needs to have the products at the right place and at the right time. The marketer’s job is to ensure that goods are where they are needed when they are needed. This means decisions on the distribution of goods focus on creating a system that, without much hustle, allows customers to get access to products and purchase them. Since this is not as simple as it appears, a marketer should ensure that the system that he/she chooses is effective and efficient.

This means that products are delivered where they are needed and in the right amount and condition and also at the right time and for the right cost. Decisions involved in this element include choice of channels and outlets, markets coverage, dealers support, logistics and channel variety among others (Amity Institute of Higher Education, 2011).

Marketing mix changes as a product moves through the life cycle and therefore strategies in regard to the mix should also change. Also, each product should have its own marketing mix developed for it which puts into mind the target market (Armstrong & Kotler, 2009).

Unilever

Unilever is a complex integrated network of companies, brands, products and components that are in the consumer goods industry. The corporation has around 400 brands which are mixed in two categories; global brands and “local jewels” which are tailored to appeal to a global market and others to specific geographical areas to meet particular local tastes and habits. Everyday, around 150 million people in the world use Unilever products that are made in three global divisions; foods, home care and personal care (Nielsen, 2011).

In the foods division, the largest brand is Knorr with products ranging from soups, sauces, noodles, and complete meals. Branded cooking oil and fats is another category in this division and also ice cream and tea all of which are branded. In homecare and personal care divisions, cleansing and hygiene products are produced with global brands like OMO being the most popular. In the personal care market, skin, cleansing, deodorants and antidepressants products are marketed (Nielsen, 2011).

In the detergent market, Unilever produces global brands such as OMO and Persil and local jewels that are targeted to particular markets in a region. One of these is Surf Excel which is very popular in the Pakistan market (Pacheco & Chandon, 2007).

Surf Excel marketing mix

Surf Excel washing powder is offered in two varieties in the Pakistan market; Surf Excel and Surf Excel Matic. It is very popular in this market since its introduction four decades ago and has continually been improved in order to meet the changing needs of consumers.

The Surf Excel as a brand is regarded in the market as a brand for people’s beliefs and values as it participates in activities relating to these aspects. It has also been used for sponsoring children academically and carries the message that encourages people to allow children to explore and discover without minding the dirt. It also comes in many sizes; 25g, 50g, 115g, 500g, 1kg and 2 kg packs (Ahmed, 2010).

In terms of price, Surf Excel sets competitive prices in the market through the following ways

Price to distributors where all are equally treated,
Unilever also gives price margins to distributors for wholesale prices so that all retailers get the products at fixed prices, and
The company is also in control of the retail prices so that consumers get the products at fixed prices.

Discounts are another feature of Surf Excel where distributors and wholesalers who buy in large volumes get a 1% discount on sales exceeding Rs 600. A trade discount is also offered by Unilever on functional basis such as storing and book keeping (Ahmed, 2010).

Distribution of Surf Excel is through indirect marketing channels where the products move from the company to distributors then to retailers and finally to the consumer. Surf Excel Unilever covers all regions of the country irrespective of the economic classes. You will find these products in departmental stores such as Akbari Stores, Al Fatah and Decent Departmental Stores as well as retail shops and small kiosks where it is convenient for the target consumer.

It also targets shelf spacing in departmental stores where it is separated from other brands in stores such as Al Fatah where the corporation paid 2 million Rupees in 2008 to get a 40% share of the area reserved for detergents (Ahmed, 2010).

Unilever Pakistan Limited uses the media and trade incentives to distributors and wholesalers to promote their products. Surf Excel advertises through radio, TV, Billboards and newspapers nationally. The company has established a scheme where wholesalers gain points on their purchases beyond 200 Rupees of Surf Excel of different sizes. The company has also set a store display model and uses sales officers to make sure retailers follow this model and hangers used to do this are from the company.

Sales promotion is done through incentives to buy such as 1kg mango for each 1kg Surf Excel bought and free samples. Further, sales promotion through order takers and stalls in exhibitions are implemented. Moreover, public relations through events involving children and the ‘Surf Excel game must’ event that is held regularly (Ahmed, 2010 and Pacheco & Chandon, 2007).

References

Ahmed, H. (2010, November 29). Report on Marketing Strategy of Surf Excel. Web.

Amity Institute of Higher Education. (2011, n.d n.d). Principles of Marketing Tutorials. Retrieved from KnowThis.com: https://www.knowthis.com/

Armstrong, G., & Kotler, P. (2009). Customer-Driven Marketing Strategy: Creating Value for Target Customers. In G. Armstrong, & P. Kotler, Marketing: An introduction (pp. 165-195). United States of America: Prentice Hall.

Nielsen. (2011). Nielsen Insights in Action: Informing Decision-making Through ROI. United States of America: Nielsen.

Pacheco, P., & Chandon, P. (2007). Unilever in Brazil (1997-2007): Marketing Starategies for Low-Income Consumers. Brazil: INSEAD.

Click Here To Order Now!