Unit 13 Marketing Strategy Surf Assignment

Unit 13 Marketing Strategy Surf Assignment

Introduction

Strategy is denoting the method to figure out the means to actualise the goals. And, marketing strategy is referring to the collection of processes focused towards the enhancement of sales for the company, profitability as well as to earn competitive advantage. A company definitely requires planning its marketing strategy by concentrating on market research as well as product mix for having viability and competitiveness in the market and also for earning as well as maximizing profit. Surf is an international brand of detergent powder and a product of Unilever and came into existence in the year 1954 in UK.

Part 1

Using appropriate sources, undertake a full marketing audit (external and internal environments) and also assess strengths, weaknesses, opportunities and threats to your chosen organisation. Include details about the organisation’s position relative to other industry members including market shares.

Marketing audit for Surf:

• PESTEL Analysis: PESTEL analysis is considered to be a tool that is used by organisations for tracking the environment in which they are functioning or are having a plan for launching a new product or service. PESTLE stands for political factors, economical factors, social factors, technological factors, legal factors as well as environmental factors.

• Political: These are the factors determining the degree to which a government might be influencing the economy or a particular industry. For instance, the government might do the imposing of a new tax or duty because of which the overall structure of revenue generation in respect of the companies might alter. The political factors take into consideration tax policies, fiscal policies, trade tariffs and so on that a government will be levying around the financial year and it might influence the economic environment significantly. (Clay, 2013)
• In case of Surf, it can be said that since Unilever is an international organisation, it should be operating by following local, regional and international rules as well as regulations. Although, Surf has succeeded in maintaining a good pace with the rules and regulations of the Government, at times there has occurred deterioration of its economic performance due to the adverse publicity that takes place due to the changes occurring in any law. Changes in taxation policies, terms and conditions of the Government, policies for auditing and so on are having a significant influence on the marketing plans and strategies in respect of Surf. (Freeman, 2010) Auditing policies as well as unemployment reduction policy at times are putting a negative influence on the economical and overall performance for Unilever. Imposing high rate of taxes for raw materials with the help of the local Government at times acts as a barrier as well.
• Economic: Although Surf is considered to be a well-known detergent brand internationally, it is having a huge number of competitors. As a result, Unilever is facing huge amount of market related competition from other competitive brands that are being sold at a price that is cheap compared to Surf. The major competitor of Surf is Ariel from Proctor & Gamble. There is no certainty in this microeconomic environment and changing scenarios based on the conditions of the market as well as economic trends are creating a very challenging scenario for the functioning of organisations. To convince customers for buying a specific product is not very easy since different other cheaper alternatives are also present. But it can be said that, with the growing population, there is a rise in the use of home-care products as well and therefore, Surf has become successful in sustaining its market position through the growth of demands for the customers. (Freeman, 2010)
• Social: There has already been the creation of a brand image by Surf in the  international marketing  in respect of its power to clean as well as value related with hygiene. The product is completely environment friendly since it is prepared with the help of enzymes that are considered risk-free in respect of individuals. Surf has never faced any issue related with safety. Moreover, it has claimed that detergent should not be causing any adverse effect in respect of the hands or will diminish the quality of fabric for the cloth. Surf even had undergone specific brand communication changes in respect of benefitting the society. Surf has succeeded in creating a good product value in the eyes of different kinds of individuals. (Harrell, 2011) It is adding 60% additional value in respect of the driving machine wash as well as 70% additional value for direct application solution wash.
• Technological: The growth of the detergent, advertising aspects as well as promotional scenarios exclusively is based on technological aspects. Unilever’s IT professionals have stated that shortage of technological growth will be decreasing the validity of the product and its popularity will also be lost. Therefore, Unilever has taken into consideration each and every technological development project for developing the product as well as to launch new flagship. The researchers of the R&D department of Surf did the establishment of a unique formula in respect of the ability to remove stains. There was the invention of ’99 stain formula’ in 2002 by Surf that got tremendous success. (Furnham, 2012)
• Environmental: Surf has succeeded in managing to have the foremost market position as a detergent product. It has achieved the satisfaction of the customers with the help of its better performing ability as a detergent as well as in being an environment friendly product. Surf’s raw materials are completely renewable as well as eco-friendly. The detergent, irrespective of which shape they are coming, whether in the form of capsules or liquid detergents, assures customer safety for using it. It also assists in sustaining the fabric quality. These have assisted Surf in creating a effective brand image and gaining increased number of customers.
• Legal: Since, Surf is functioning in UK, it needs to follow the laws, rules as well as regulations of every country. Unilever has been successful in planning as well as coordinating its strategies for marketing in a varied approach regarding varied situations in accord with various legal aspects. (Harrell, 2011)

SWOT Analysis:

Differential Advantage of Surf: Those advantages are denoted by differential advantage, which are enjoyed by a product in comparison to same kind of competitive products in the market. Differential advantage assists in enabling Surf for obtaining a better market position. The differential advantage for Surf states that the brand is having the advantage of having a prominent brand image that has been successful in attaining through its better performing ability over an extended time period. It assisted in creating a position that is sustainable in the domestic and regional markets and has succeeded in influencing customers in such a manner that they now strongly have the belief that Surf is the most effective detergent for removing dirt as well as stains from clothes. (Frydman, 2013) Customers have also found a new dimension with the assistance of the new technology that is considered path-breaking in regard of Surf’s quick wash, since none of other detergent brands will be ensuring time as well as consumption of water to almost 50%.

Provide a critical evaluation of the organisation’s competitive edge (USP). Demonstrate the organisation’s effectiveness by providing an evaluation of competitive performance.

Competitive edge (USP): USP aka Unique Selling Proposition, is denoting a method to determine the unique position of the  business organisation  in the market as well as the specific areas in which they will be conducting their activities related with advertising as well as promotion. The promotion of Surf occurs with the help of TVC, RDC, quick game shows, billboards, lottery, powering TV shows, offering gift hampers, promotional offers and many more. The Unique Selling Proposition for Surf is that this product is having a strong market presence for a long time. Their exceptional power for removing stain is considered to be their USP in the market. Moreover, this is considered to be the only detergent product that is ensuring reduced use of water as well as time. Their USP can also be considered to be their sustainable image of the brand. Surf succeeded in occupying 32% share of the market and it was more than the biggest competitor of the brand which is Ariel. (Frydman, 2013)

Development of Present Marketing Strategy:

• Growth: From the time of its origination in 1954 in UK, Surf has been developing in such a manner that it has successfully actualised its brand image in the domestic as well as regional market. Surf had an incredible progress. With changing time, Surf has been able to bring a change in its formation of products as well as in the strategies for marketing also. Earlier, the price was a bit high, but currently it is offering various products at varied range of prices, taking into consideration every segment of individuals and their ability to afford and buying behaviour. (Fernando, 2011)
• Sales Trend: Surf is the foremost detergent brand in UK amongst all the other brands of detergents. In UK, the brand is having a large number of competitors. But even though, it has succeeded in attaining the largest share of market regarding sales in comparison to the other competitive brands. At times, higher range of prices is working as a major impediment for its trend towards sales. A comparative report of the sales trend for Surf in 2013 is depicted in the chart below,

Profitability: Surf is considered to be one of the most beneficial brands in UK as well as in other countries where it is having its presence. This could be actualised due to the brand’s Unique Selling Proposition, activities related with marketing as well as promotion, using latest technology to process as well as to renew the raw materials for the detergent, to earn customer satisfaction with the help of product quality as well as to get associated with some corporate social responsibilities. (Johnson, 2011) The return on equity for Surf in the year 2014 was 56.23%, equity multiplier was 3.64%, margin of net profit was 10.42%, total asset turnover was 1.48% and return on asset was 15.44%.

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Part 2

Based on your Part 1 analysis and using your chosen brand select target segments and set clear marketing objectives to increase brand awareness, market share, and growth in sales volume and profitability. Your new marketing strategy should address these objectives with the application of the marketing mix to your chosen brand.

STP (Segmentation, Targeting & Positioning): These are considered to be the successive methods towards the aspect of transforming a marketing goal to reality. To identify the aspired market in which the company will be executing its marketing goals, is considered to be the functional aspect regarding STP.

Primarily, the significant function is market identification and dividing it into aspired segment of market in accord to the organisational resources as well as capabilities. After that, the task is developing the segment of market as well as evaluating segments of market on the criteria that has been set. Post segmentation, targeting certain segments is required to be made. Here, the segment of the market gets evaluated as well as there should be the development of each target market profile. Then, there should be the development of the emergence regarding the positioning approach in respect of target market as well as implementing marketing mixes.      

In respect of the new marketing strategy, it is important in having a new plan regarding STP of Surf. Surf aspires to do development in the new segment for the rural market where it will be marketing a detergent of medium standard in a medium price that will target the customers in the rural and semi-rural areas. (Jenkins, 2011)

Surf’s segmentation: This is considered to be the process to describe the market and post that doing market separation by taking into consideration specific attributes such as market appearances, structures and so on. Segmentation of the market is the process with the help of which the separation of market occurs into particular comparable groups that will subsequently be competing with the organisational goals as well as capitals. Moreover, segmentation is the process to assign customers into specific markets of associated groups. (Iqbal, 2011)

Surf’s new criteria for segmentation can be briefed through the below mentioned table,

The aforementioned table depicts that the new strategy for marketing requires new segments of the market that depends on the criteria for geographical segmentation. Here, there will be the targeting of the rural as well as semi-rural customers in respect of the new plan. Generally, Surf is producing products in respect of customers residing in urban areas and who are premium standard individuals but with constant rise in competition, Surf will now be entering into the rural as well as semi-rural markets comprising of a new medium-level standard product in respect of the semi-rural groups. In this respect, they require doing analysis as well as research in regard of segmenting as well as characterising those markets. In general, with the rise in competition, the rural people have now become increasingly aware in respect of product quality. (Boone, 2015) As a result, they are willing to pay more amounts in respect of the products in comparison to earlier times. In this circumstance, there is requirement for doing the segmentation of Surf’s rural market.

Targeting of Surf detergent: In respect of targeting the new segments, there should be the gathering of market information in respect of the target market. In respect of Surf, it will be challenging for getting entry into a market in which there is a higher availability of substitute products. Regarding the rural areas of UK, there exists various kinds of rural customers based detergent powder that are having their presence in the market. There should be an efficient selection of the target market in this regard. There exists certain factors that are to be taken into consideration prior to the planning in respect of targeting. These attributes are segment appeal, reasonable segment clusters, capability for being operative regarding the segment, as well as the aptitude of the organisation for participating efficiently. The factors for target market regarding Surf are mentioned as under,

It is following a single segment concentration regarding the urban market for highlighting on the  customer saticefication  that have been identified as The Surf Mom. On the other hand, in the rural areas, the new Surf will be extending their market in respect of customers from semi-rural areas. Here, there will be the following of particular product specialization scenarios or strategic aspects for capturing the target market in the rural areas. There will be effective targeting when there occurs the matching of appropriate needs as well as wants of the segment of market in relation to the factors of targeting that has been earlier referred. (Barden, 2015)

Positioning: This is associated with the creation of an image in the customer’s mind through the development of efficient as well as unique product features. This image should assist customers in relating the image with the product as soon as possible. There can occur the positioning of the product in two segments, one of which is customers and the other is competitors. (Jenkins, 2011)

Surf is having a well-known advertising campaign which is ‘Dirt is good’. With the help of this campaign Surf has been successful in reaching a large number of customers. However, in the new target market, the campaign for advertisement will be very much unique and will differ from the earlier campaign. In this respect, the major emphasis will be given to Surf as an eco-friendly product having better quality for the removal of toughest stains. (Payne, 2012)

Surf’s positioning strategies are mentioned as under:

• Products those are semi-premium in respect of the rural as well as semi-urban customers of the market segment.
• Improved use of technology to remove the toughest stains.
• To convince customers that dirt is good since Surf is available for removing them through easy washing. (Baker, 2010)
• To develop a convincing image of the brand as well as brand association in the customer’s mind.

New Positioning:

• ‘Achieve Victory with white wash’ Campaign

There will be the development of this positioning strategy by concentrating on homemakers as well as school students in rural areas.

• Stressing on Corporate Social Responsibility

In this regard, there can occur the development of two kinds of corporate social responsibility such as stressing on the education scholarship program and stressing on the eco-friendly detergent powder.

Objectives & Goals recommended for Surf (SMART Goal): The new goals regarding Surf in respect of the target market audiences of the rural areas will be gaining 20% increased share of market in the rural areas by 2017 as well as for making it the most aspired brand of detergent powder amongst the homemakers as well as working women of rural areas.

For actualising this, there will be the segmentation of the below mentioned time-frame,

Surf’s marketing mix strategy:

• Product: This is considered to be the noticeable items that can offered to the customers for pleasing their wants as well as needs. Surf’s new line of product is in respect of homemakers as well as working women in semi-urban as well as rural areas. There exist varied segments in respect of Surf for various kinds of customers such as Surf liquid, Surf bar, Surf blue and so on. The products will be of medium quality as well as medium priced. The unique characteristics of the product will be its eco-friendly washing powder as well as remover of toughest stains. (Baines, 2012)
• Price: In respect of Surf, there are varied competitors, who are providing detergent of standard quality at a lower price range. In this regard, it will be quite challenging in respect of Surf for entering into the new market having high price. Therefore, the marketing strategy will be to develop a detergent powder that is cost effective in respect of the rural people so that it can be marketed with a diminished price in comparison to the standard premium price for Surf. To market in the rural areas, there should be the consideration of the prices for distribution by the marketers for Surf. At times, the cost of channel might increase the level of price.
• Place: Place assists in determining in what ways there will be the delivery of the product to the end customers. With the help of distribution channel, this delivery as well as packaging takes place. Surf is having their individual distribution channel members for product distribution. After entering into the new market it is required developing certain new association with new channel members. To do is, there should be the building of relationship marketing with the suppliers. In addition, there is a requirement for penetrating the rural market regarding the new line of product. For capturing the areas of the rural market, there should be the development of strong as well as efficient suppliers for reaching every nook and corner of the target market. As a result, there should be the development of improved as well as dynamic supply members. In addition, to develop successfully penetration strategy, there should be the building of facilities related with warehousing. (Armstrong, 2014)
• Promotion: Promotional tools are significant components of marketing mix that majorly informs customers regarding the products, current news as well as product offers and many more. There is the effectiveness of promotional tools when there occurs the following of appropriate strategy. In respect of Surf’s new line of product, there will be the utilisation of various promotional campaigns. And, since it is targeted for increasing its share of market, there is the requirement for efficient promotional offers.

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Conclusion

Surf as a detergent powder is doing the execution of specific actions for shifting from its present customer segment to a different segment for catching new customers. For figuring out the original loyalty of customers as well as advancement of brand, the business needs to design a plan that will assist the organisation in respect of branding. For doing this, extensive research as well as development of strategy is done. With the help of efficient marketing, there should be the building of strategic relation with the suppliers.

Reference

Baines, P (2012) ‘Essentials of Marketing’. Oxford University Press
Baker, R (2010) Implementing Value Pricing. John Wiley & Sons.
Barden, M (2015) A Beautiful Constraints. John Wiley & Sons.
Boone, L (2015).  Contemporary Marketing . Cengage Learning.
Clay, M. (2013). Sales Strategies for Business Growth. Thorogood Publishing
Freeman, R (2010). Stakeholder Theory: The State of the Art. Cambridge University Press.
Frydman, R (2013). Rethinking Expectations: The Way forward for Macroeconomics. Princeton University Press.
Furnham, A (2012). The Psychology of Behaviour at Work: The Individual in the Organization. Psychology Press
Harrell D., G. (2011). Marketing Management.  Simon and Schuster Pub.
Iqbal, T (2011). The Impact of Leadership Styles on Organizational Effectiveness. GRIN Verlag.
Jenkins, D (2011). Managing Empowerment. Random House.
Johnson, G (2011) Exploring Strategy, London, FT: Prentice Hall
Payne, A. (2012). Marketing Plan for Services. Routledge.