Micro Economic Study on Surf Excel – Consumer Demand, Pricing & Market Behaviour 

As part of my microeconomics coursework, I conducted a detailed study on Surf Excel, one of India's leading detergent brands under HUL. The objective of the study was to analyse Surf Excel using core microeconomic concepts such as demand, supply, elasticity, consumer behaviour, market structure, and pricing strategies.

The study observed that Surf Excel operates in a monopolistic competition market, where multiple brands exist, but differentiation is created through branding, product variants, and value perception. Demand for Surf Excel was found to be relatively price inelastic within its target segment because loyal customers associate the brand with superior quality, stain-removal assurance, and premium trust.

The pricing strategy follows value-based premium pricing, supported by strong advertising, emotional positioning (“Daag Acche Hain”), and product innovation (liquid detergents, quick wash variants, Matic for washing machines). However, cross-price elasticity shows that price-sensitive households tend to shift to substitutes like Rin, Tide, or local detergents during price hikes.

The study also highlighted consumer surplus, marginal utility, and brand loyalty effects, showing how Surf Excel maintains demand despite competition and alternatives. Overall, the project strengthened my understanding of how microeconomic principles operate in everyday FMCG markets.