Introduction

 HISTORY OF SURF EXCEL

Introduced by Unilever Pakistan in 1948 under the brand name ‘Surf’, its deep-rooted
heritage has made it a national icon.

The Surf brand became the first detergent powder delivered in Pakistan (1948) and India
(1959). Initially, Surf changed into located at the clean proposition of “washes whitest”.
However, with the emergence of numerous neighborhood detergent producers and the access
of different international brands, Surf underwent numerous changes in its brand communication
and was replaced via “Surf Excel” in 1996. This is in keeping with the Unilever global communique
platform of "Dirt Is Good/Daag tou achay hotay hain" for its premium detergent brand but this
is much more than just a tagline. Through the years Surf excel has worked really hard to spread
the awareness of children learning from experience.

Dirt is basic part of development process of children experiencing life. They hold a small right to
live fully, like playing in a garden without any fear of being dirty or getting stain on their clothes.
All of these little steps can make children fearless and being confident.

Although children development is at the extremely heart of Surf Excel's message, this could not
be attainable without the superior stain removal properties that each bag of Surf
Excel contains.

 OTHER RELLATED DETERGENT IN THE COMPETITIVE INDUSTRY

The top three competitor of Surf Excel are:

1. Ariel
2. Brite
3. Bonus

Out of all the competitors Ariel gives the toughest competition so we are going to analyze
the offerings that Ariel provides;

Ariel has a wide distribution network that gives it an edge over Surf Excel. Another thing that
Ariel has is the kind of advertising it does by giving the message that it does not cater to any
specific class but is a powder that can be used by all. The ads that Ariel has these days on air
depicts lower class, giving the impression that the price is affordable and is not an issue for even
the low-income earners. Moreover, the product receives excessive price range allocated to R
& D department to result in improvements, innovation and provide consumer offer aside from
regular offerings. Ariel is associating the brand with consumer on the idea to give them superior
satisfactory and makes the ground for consumer to provide a topic which reason to have
happiness.

Ariel’s target market is very much similar to Surf Excel. Since it is largely a household product
therefore, the ladies of Pakistan who are very conscious about their family make up the integral
part of Ariel’s target market. Ariel used Mrs. Zubaida Tariq as cogent who is considered an
advising expert on household telling to use Ariel. Moreover, Ariel tries to focus on giving the
message of savings whereas Surf Excel believes that dirt is crucial to development as you get to
know more.

 MANAGERIAL DECISIONS TO ACHIEVE COMPETITIVE ADVANTAGE

A comprehensible strategy should be identified, containing the guidelines, regulations and
directions, before a manager makes a decision. Such rules will allow everyone to make a
quick and proper decision on a matter. Managers are no longer afraid or embarrassed in taking
decisions with a given strategy. A guide is all they need, and they will be confident that they will
deal with the company's issues. They will no longer feel any discomfort in taking risks because
they can always say the guide was wrong if their decision gives a negative turnout.

The typical process of decisionmaking involves the issue being identified, alternatives identi
fied, the best alternatives selected and monitoring results using a certain method.
A collection of conditions and decision criteria may be included in the problem description.

1. Establishing the Objective:

The first step in the decisionmaking process is to set the target of the business. The main go
al of a private company is to maximize profit. Nonetheless, a business may have other goals lik
e maximizing its revenue or increasing the company's growth. The main aim of Unilever was to
capture the interest of house wives through the detergent and they did it because it was a need
and the chemicals used in that detergent powder is not harmful for the clothes which made it
unique in the eyes of people buying it.
 2. Defining the Problem:

The second step for any manger before making the decision is to identify the problem
whether it is in the organization or in the product because a manager studies about the
consumer too before making or giving order to the manufacturing department to start
production. A well-defined idea about consumers need is the star quality for any manager.
Unilever knew the problem exists in the world and they took the initiative to launch it and they
got succeed just because they had a clear idea of what is needed and what has to be done.

3. Identifying Possible Alternative Solutions (i.e. Alternative Courses of Action):

There was no alternate available for the customer needs, they had to take initiative and the
research done on that problem pays them well. Surfexcel is now a part of selling product of
Pakistan.

4. Implement the decision:

After the research and all the data required to make a decision the manager took the
decision of making a Surfexcel detergent for the customers and targeting specially the
housewives because most of the house chores are done by females. This overall production
strategy and research made them the top multinational company in the world.

 MARKET STRUCTURE OF SURF EXCEL IN PAKISTAN:

Though surf excel is produced in Karachi and Lahore, Unilever maintains the same standard
all around the globe. Since the demand for the detergent market is to a great extent
oligopolistic, variations to price lead to a price war which can eventually break down
company’s market share. So, the price is affordable by most of the people. Unilever Pakistan
has outsourced its distribution channels to third party distributors which allow them distribute surf
excel in massive bulks amounting to around ten million pieces.
  DETERMINANTS OF MARKET STRUCTURES
Market No. Of Nature of Market share of Control of Entry and Examples
structure sellers product sellers the seller exit
over the
price

Perfectly Numerous Homogeneous Insignificant No control Free Wheat, rice

competitive

Monopolistic Large Differentiated Small Some Not Free Restaurants,

Control movies

Oligopoly Few Differentiated/ Large May or May Depends on Detergent, soap,

Homogeneous not the Market food

Monopoly One Unique Hundred Percent Full Control Restricted WASA,

Microsoft

 GRAPHICAL REPRESENTATION OF MARKET EQUILIBRIUM (HYPOTHETICAL)

Demand and supply schedule for surf excel

Table 1:

Demand and Supply Schedule (Amount in Millions)

PRICE SUPPLY DEMAND
Rs: 10 80 250
Rs: 15 120 200
Rs: 20 160 160
Rs: 115 200 120
Rs: 210 250 80

Figure 1:
 The demand and price have an inverse relationship whereas the supply and price share a
direct relationship. It is already well explained and demonstrated through a hypothetical
schedule and graph (table 1) above.

As you can see that when the price was 10, the supply was 80 whereas the demand was 250
as the buyers seem to purchase more on a less price. Gradually the price increased and the
demand decreased (210,80), and when the price increased the suppliers found greater
incentives to produce more hence the supply also increased (210,250).

In figure 1: Q* represents equilibrium quantity and P* represents equilibrium price achieved at

a point where demand=supply (120,120).

Where Demand < Supply, we observe surplus and when Supply < Demand, we observe
shortage.

 COMPARATIVE STATISTIC ANALYSIS:

After considering the demand and supply model at equilibrium, we are now introducing an
event which will lead the demand and supply curve to shift and hence a new equilibrium point
will be created.

We assume that the price of the competitive product (Ariel) has increased resulting in an
increase in the demand of surf excel (because the customer will move towards the alternate
detergent due to high price i.e.; Surfexcel) leading the demand curve to shift rightward due to
which a new equilibrium point is observed.

We see that when the price of the competitive product (Ariel) has increased, it has resulted
in an increase in the supply of Ariel leading the supply curve to shift leftward due to which a
new equilibrium point is observed.

Demand curve of Surf excel in figure 2 (a) below show that demand curve shift from D1to
D2 and new higher equilibrium price and quantity can be noticed where as in figure 2 (b) below
shows that demand curve of Ariel shifts leftwards from D1 to D2 where new fallen equilibrium
price from P1 to P2 and new decreased equilibrium quantity is noticed in figure below.
 RATIONING FUNCTION (SHORT RUN):

Figure 2(a) (b) (c) (d)

In figure 2(C) above represents supply curve of Surf excel S1 which is then shifted to rightward
showing a decrease in equilibrium

In short run the surf excel will be positioned as: an economic choice in the surf excel range,
as it is available in in small packing of Rs. 5 and it is also available in large packing range
between 0.5 kg to 4.5 Kg bag. Surf excel is packaged in a much smaller amount of recycle able
paper. Surf excel, is a reputable brand, facing what all detergent brands are experiencing
competition due to new technologies from competitors. Surf excel is currently priced in the mid
to high range of the surf excel market, low range being Rs 5, 10, 20 to 50 and high range being
895 including markup of retail shoppers. In an attempt to capture high market share surf, excel
strategy consist of lowering the price so low to mid-range to be captured and high range option
of an included general laundry use and anyone who may need a suitable way to carry their
surf excel while travelling. these strategies of low to high price range are planned for savings
and creating brand loyalty. Where as in long run surf excel brand has worked hard to build
awareness by its famous tagline ‘Daag tou achay hotay hain/Dirt is good giving a massage on
the importance of child learning process through experience. it is detergent powder designed
especially for washing machines as it has a low lather formula. Surf excel grow by promoting as
it is so good at cleaning, you don’t have to worry anymore about dirt, and you should offer your
kids the free will and get experience by engaging with life to grow and self-development.

 CONCLUSION:
The demand law explains buyers ' actions. In general, people are going to demand more
goods or services at lower prices than at higher prices, which is purchased. The result is a
demand curve when this relationship is graphed.

A price change results in movement through the demand curve and is referred to as a
change in the necessary quantity. The curve of demand changes to left or right when other
variables on the market change. This is a market change. Sellers ' behavior is described in the
supply law. Recall the supply and the sellers both start with s. Sellers can usually produce more
items at lower prices than at higher prices. The result is an upward-sloping supply curve when
this relationship is graphed.

A price change contributes to movement from one point to another along the supply curve.
The quantity supplied is called a switch. The supply curve moves to the left and the right as
market factors switch. This is regarded as a supply switch.

Together supply and demand determine the balance of the market. Market balance in a
diagram is the intersection of supply and demand. At this point the price is the balance price
and the value are the amount of the balance. There are no surpluses or shortages when the
products or services market is in equilibrium. When buyers and sellers connect, the market tends
to reach equilibrium and match rates. It's like an invisible hand is forcing markets to balance.
 Surf has long been on the market, and with the help of product advances and an excellent
marketing campaign it successfully manages the product life cycle. Since then, Pakistani
households have been a vital purchase. Surf Excel has a thin removal, powerful complete
cleaning and good fragrance, which are the main features. In addition, the colors of the
clothing are bright and are available in attractive packaging.

The customer interaction of Surf was simultaneously strongly oriented to customers. The' Dirt
is Great' Surf Excel campaign was a huge success. For over 3 years this "Big Idea" has been in
existence and has not yet lost its importance.