Saturday 5 October 2013

Pricing



Below is a table that demonstrates the pricing for Surf Excel by HUL in the market.

Brand  Variant
SKU
Price (Rs.)
Surf Excel Matic (Top Load)
500g
100

1Kg
197

2Kg
380
Surf Excel Matic (Front Load)
1Kg
210

2Kg
425
Surf EasyWash (previously Surf Blue)
700g
92

1.5Kg
193
Surf Blue Bucket Pack
3Kg
480
Surf Excel Quickwash
500g
85

1Kg
170

2Kg
336
Surf Excel Bar
100g
10

200g
25

250g
27

400g
42
                                                                                                                                                   
When Tide was launched in India, they indulged in aggressive and competitive pricing strategies. They constantly advertised price cuts and extra grammage. Consequently, as part of HUL’s strategy, even Surf Excel prices were slashed to the current prices shown in the table.

With recent price changes, the latest strategy from P&G has been to cater to the mass markets. They have slashed the prices of Ariel and Tide by almost 20-25%. Now, the price of half kg of Tide is Rs. 23 versus their earlier price of Rs. 43. Similarly, earlier the price of half kg pack of Ariel was Rs. 70. It has been brought down to Rs. 70

There is a certain connotation of quality that Surf Excel has always strived to maintain as premium fabric detergents. Their stance on the pricing strategy and their insistence on the price point also helps convey the confidence in their own brand equity. 

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