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Shampoo Wars

Shampoo Wars

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Published by: fggggggggggggggggggg on Feb 20, 2010
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11/24/2012

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Shampoo wars: P&G to cut Pantene prices
March 31, 2004 08:02 IST
EmailthisSave toMy PageAskUsersWrite aCommentThe price war between the two FMCG giants Hindustan Lever Ltd [
] and Procter & Gamble has intensifiedwith P&G slashing the prices of its shampoo brand Pantene.It is cutting the prices of Pantene bottles by 15-20 per cent and is expected to announce on Thursday the launch of anew variant under the Pantene brand. The objective is to create a new segment focusing on preventing hair loss.A fortnight ago, Hindustan Lever had announced a promotional offer of a free bottle with every bottle of Sunsilk [
] and Clinic Plus. In other words, it resorted to a 50 per cent price cut.Hindustan Lever executives earlier said depending upon the success of this initiative, the company would firm up itspricing strategy for its shampoo brands.A trade source said, "P&G is cutting prices of its Pantene (bottles) by 15-20 per cent but leaving its Head & Shouldersand Rejoice brand untouched for the time being." Pantene is positioned against HLL's Sunsilk.Pantene is now priced at Rs 61 for a 100 ml bottle, Rs 117 for a 200 ml bottle and Rs 197 for a 400 ml bottle. Sunsilkis priced at Rs 55 for 125 ml, Rs 100 for 250 ml and Rs 150 for 400 ml. The price actually gets halved as one bottle isgiven free with every bottle sold.Market sources pointed out that HLL is set to face more competition as P&G's other two shampoo brands -- Head &Shoulders, Rejoice -- are also likely to undergo price revisions in the near future.The HLL-P&G price war first started on the detergents front. P&G fired the first salvo by cutting the prices of bigpacks of Ariel and Tide. HLL followed suit immediately by slashing the prices of Surf Excel and Surf Excel Blue.Hindustan Lever is the market leader and commands a share of over 50 per cent in the shampoo market. HLL'sshampoo brands are Clinic Plus, Sunsilk, Clinic All Clear, Lux and Ayush.
 
The shampoo business of P&G has a market share of over 15 per cent. The other major player in the category is thesouth-based CavinKare with brands like Chik and Nyle.CavinKare executives had also said that the company may look at a price cut strategy to maintain its position in themarket.According to analysts tracking the FMCG sector, after witnessing an increase in 2001 and 2002, the shampoo marketdeclined by 5.2 per cent in 2003 in volume terms.For the month of January 2004, the segment declined by 5 per cent. Of the total shampoo market, sachets constituteover 70 per cent of the market.
New launches help HUL gain share in shampoomarket
Ruchita Saxena / Mumbai February 28, 2008
Fast-moving consumer goods company Hindustan Unilever (HUL) has increased its share in the shampoo marketeven as rivals Procter & Gamble (P&G) and CavinKare have suffered erosion.According to retail measurement figures released by AC Nielsen, market leader HUL’s share grew from 46.9 per centin January-March last year to 47.8 per cent in the October-December quarter.In the same period, P&G’s market share fell from 25 per cent to 23.7 per cent and third-placed CavinKare’s from 12.6per cent to 12 per cent.The shampoo market, estimated to be worth Rs 2,141 crore and growing at 14.5 per cent a year, has been reorderedin recent times what with the entry of ITC and Garnier.P&G, however, denies losing market share. Its spokesperson said, “P&G India’s hair care business has consistentlygrown in market share every single year between 2004-05 and 2006-07. In the last three years, P&G has beenamong the top-two fastest-growing hair care companies in India. While our company policy does not allow us to shareindividual market shares, we are pleased to share that Head & Shoulders is India’s number one anti-dandruff shampoo brand. Collectively, we own close to one-fourth of the market share in the hair care.”HUL this month undertook a global rebranding exercise of its Sunsilk shampoo range, which involved a newformulation, packaging and marketing campaign. Experts attribute the rise in market share to the launch of the Doverange of shampoos.When asked if Dove could cannibalise into the share of its other brands, N Rajaram, the company’s head of the hair care category, said, “The market is growing and there is space for each and every one of our brands.”P&G has three main brands - Pantene, Head & Shoulders and Rejoice. CavinKare dominates the rural pockets withChik and Nyle. HUL has brands at several price points. Clinic is a mass market brand, Sunsilk is in the mid-pricesegment and Dove falls in the premium bracket.“New users are being added especially at the lower end of the income pyramid, thanks to the continued promotion of single-use, convenient and affordable sachets. In urban areas, consumers are moving away from one shampoo for the whole family to one shampoo for each family member. The differentiation in use is a strong driver of growth,” said

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