Published by MBA Skool Team, Last Updated: February 27, 2021
PESTLE Analysis of Surf Excel analyses the brand on its business tactics. Surf Excel PESTLE Analysis examines the various external factors like political, economic, social, technological (PEST) which impacts its business along with legal & environmental factors. The PESTLE Analysis highlights the different extrinsic scenarios which impact the business of the brand.
PESTLE analysis is a framework which is imperative for companies such as Surf Excel, as it helps to understand market dynamics & improve its business continuously. PESTLE analysis is also referred to as PESTEL analysis.
Let us start the Surf Excel PESTLE Analysis:
The political factors in the Surf Excel PESTLE Analysis can be explained as follows:
Surf Excel is a brand of Hindustan lever with its headquarters in London. It is marketed as a counterpart brand of OMO detergents in various Asian markets. Political factors like the form of government and the degree of regulations by the government in the FMCG sector affects the growth of the brand. In countries where there is no government regulation there might not be any restriction on entry of new brands into the market and hence this would lead to many competitors and normal profits in the long run. Supportive government policies under stable political environment would help the brand to sustain in the market for a long term. Political decisions may also influence the country socio cultural environment thereby impacting how people perceive new products. Tax policies also affect the degree of consumption of people which in turn affect the sales and profitability of the company.
Below are the economic factors in the PESTLE Analysis of Surf Excel:
A brand like Surf Excel is affected by several economic factors.
The pace at which an economy is growing affects the purchasing power of its middle class which is the main target market of the brand. A growing economy leads to a growth of all the industries operating in there. The tax rates that are applicable on such products differ from one nation to other and also has a major impact on sales. Exchange rates, recession, inflation, interest rates and demand and supply are few other factors that affect the economic factors for the company. Without affecting the nominal income these factors affect the real income of the population and thereby it affects the purchasing attitude of customers. This changing attitude may lead to the company taking steps on measures to drop their prices or reduce their packaging sizes. These changes could also result in changes in the strategy of the company as they might have to formulate new strategies according to the economy structure.
Following are the social factors impacting Surf Excel PESTLE Analysis:
All demographic factors like the population base, the population migration from rural to urban areas, the increasing birth rate, increasing literacy rates, increase number of women working, and growing middle and upper middle class affect the company’s operations at macro level. These factors result in changing consumer preferences leading to consumer switching from lower quality detergents and bars to better ones. Awareness in terms of health and hygiene in the society would also act as an I did advantage for the company. Buying habits of people and family size and structure also plays a major role here and Surf Excel brand should do a thorough analysis on such factors to device proper marketing strategies and packaging. A set of people in the same society maybe influenced to use similar brand if people like the product and word of mouth spread for the same. This would help in increased market share for the company.
The technological factors in the PESTLE Analysis of Surf Excel are mentioned below:
Technological innovation has been Ever growing in today's world. a new innovation in the IT world may affect a range of things starting from changing chemical composition of product to manufacturing in reduce time and at reduced cost and so these changes could also lead to revised pricing strategies. Hence continuous regulation of the technological changes is fundamental importance to stay ahead of competition in the industry. Since surf Excel is a detergent that is a complementary product of a washing machine, the technological changes or innovation's in the washing machine like automation, wireless charging or internet connectivity may also affect the type of detergent required and hence that must be considered as well.
Certain offers and collaborations with washing machine brands may also help in spreading brand awareness.
Following are the legal factors in the Surf Excel PESTLE Analysis:
The FMCG sector is bound to be surrounded by various laws, which also impacts Surf Excel. Consumer law being one of the most important ones as it is related to the protection of the consumer from any fraudulent practices of the company. Along with this employment law plays a major role as it dictates how the company employees should be treated in that particular country. This law name impacts the rate at which the company would be able to get its labor hence having a great effect on the costs. Health and safety law, environmental law, competition regulation, anti-trust laws and laws that regulate environmental pollution may also have a great impact on the sales of the brand.
In the Surf Excel PESTLE Analysis, the environmental elements affecting its business are as below:
It may seem that the environmental factors have very less to do with the business but they have a great impact on very important aspects of the business. The impact of the product on the environment should be studied carefully in order to abide by the environmental laws of a nation. Being a part of the FMCG sector, Surf Excel brand should adapt to proper measures in order to disposing its waste in an efficient manner. The existing level of pollution in the country could affect the waste disposal plans.
While the manufacturing of the product the company should try to adopt to renewable sources of energy. Every industry is looking to reduce their carbon footprint to the lowest level possible and hence the brand should also analyze the same and adapt to eco-friendly measures and packaging. As a part of the corporate social responsibility the brand should also help in spreading awareness about protecting the environment thereby maintaining a good reputation in the market.
To conclude, the above Surf Excel PESTLE Analysis highlights the various elements which impact its business performance. This understanding helps to evaluate the criticality of external business factors for any brand.
This article has been researched & authored by the Content & Research Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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