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HUL is the leader with approximately 44% share of this market through its Sunsilk, Clinic Plus, Clinic All Clear and Dove brands. P&G is the second-largest player, with a market share of around 25%. However, while HUL gets 7-8% of its revenues from shampoos, P&G gets 15-17% from the category. P&G‟s market share in shampoos has remained flat in the recent times, though others like Dabur India, which sells the Vatika brand of shampoos, have seen their market share grow. The price wars, coupled with higher input costs, could be a negative for players in the category, say analysts. P&G‟s move comes shortly after it threatened HUL‟s market share in the mass-detergent segment by launching Tide Naturals, a low-cost variant of its Tide brand, and later taking a 20% price cut on detergents. HUL responded by slashing the prices of its Rin and Wheel detergents by 10-30% fearing loss of market share. Both players aggressively communicated the price cuts, discounts and benefits of their respective detergent products through television commercials. The two players are even fighting a court battle over each other‟s detergent product claims and television commercials. HUL has been losing market share in both Rin and Wheel. In a note to clients on Thursday, analyst Gautam Duggad of Prabhudas Liladhar said P&G‟s rising ambition and aggressive growth target of taking current revenues to five times higher in five years will put pressure on HUL. “Initiative to take price cut in shampoos, despite being a significant player in the category (about 23-24% market share, revenues of about Rs 500 crore for FY09 and YTD growth of approximately 30%) indicates P&G‟s aggression and intention to build size in the category. We expect more such initiatives in the near term in various categories where P&G is already present,” Duggad said in the note. HUL Comparative advertising Early rin ads…aggressive advertising „concept of lightning striking‟….‟uski shirt meri shirt se safed kaise‟ Rin vs tide ad Clear ad campaign Attack on arch rival P&G Aggressive advertising…..format of challenge pureIT….1 crore challenge…..comparitive advertising with other purifiers…advertisement pureit gives water purified w/o electricity w/o running water According to the Neilsen‟s January-February data, HUL‟s market share (volumes) in shampoo segment declined by 1.3 percentage points to 47.3 per cent while P&G gained by 2.4 percentage points with a market share of 17.7 per cent. Rs 3,000 crore Indian shampoo market. The company had recently revised prices upwards of its ‟Lux‟ and „Liril‟ soap brands by up to 10 per cent. In the last couple of years, the company has revamped its entire portfolio in an effort to attract customers. It has been heavily spending on advertising and promotional activities in the last one year. As per its unaudited results for the nine months ended December 31, 2010, HUL spent around Rs 2,140.95 crore on advertising and other promotional campaigns. It was much more than its net profit of Rs 1,736.83 crore for the same period.
P&G P&G‟s innovation process to drive sustainable growth is focused on eight drivers: purpose, goal, strategy, strength, structure, systems, culture and leadership, he explained.Robert McDonald, Chief Operating Officer, P&G, in an interview to Business Line, said that Indian consumers spend only about a dollar a year on P&G brands while in the US, its most developed market, consumers spend $100 a year on its products across the 21 categories.“So we would like to replicate that everywhere,” he said. China‟s consumers spend about $3, Mexico about $20 and Russia is about $9 a year, he said.P&G, which owns brands across categories such as Pampers diapers, Ariel and Tide
it was later found. when Mumbai woke up to hoardings that screamed: 'A Mystery Shampoo!! 80% women say is better than anything else'. Recently.” he said. In July this year. and General Mills India. “We have to get into those 13 other categories and we have plans in place to do those.” said McDonald. Growth ‘remarkable’ “Our Indian business is actually growing at a remarkable rate.The story starts on July 23. . as far as children are concerned. P&G had dragged HUL to the doors of the Asci on two of HUL‟s skin cream television commercials. is yet to enter several categories in India such as body wash.After implementing self-regulation guidelines on advertisements of food and beverages last year. household cleaners and cosmetics in which it is present worldwide.Here‟s a new twist to the ongoing ad war between Hindustan Unilever Ltd (HUL) and Procter & Gamble India (P&G). The Advertising Standards Council of India (Asci). However.According to a spokesperson from P&G. HUL. But if you focus on the consumer.In a related development.. what your brand is doing to serve the consumer and if you have a big idea. you will win most of the time. It was an ambush in the skies that Hindustan Unilever launched against archrival Procter & Gamble.. premium fragrances.” And that‟s a running theme through pretty much everything that Pritchard has to say. as the matter is sub-judice.After reviewing HUL‟s complaint. They ambushed P&G.detergents. The first step was getting senior management to define a purpose for each of the brands in the P&G stable: a blueprint on how the company could touch and improve. Now. Since January this year. P&G had put up hoardings which talked about a mystery shampoo which „„80% women say is better than anything else. Asci — the watchdog of the Indian ad industry — has been receiving over 220 complaints a month from consumers against misleading advertisements.53am IST MUMBAI: It was quick and it was smart. when the economy opened up.” said McDonald. Asci‟s Consumer Complaints Council(CCC) concluded that P&G‟s claim — “80% women say it‟s better than anything else” — was not substantiated as it was a study on Thailand consumers not Indians. P&G. Here Hindustan Unilever is very strong and very established. an HUL spokesperson confirmed the news.1 shampoo'. since the year 2000. So. he‟s a tireless champion of brands serving consumers or “purpose driven branding. spoiling the latter's elaborately laid-out plans for its shampoo brand Pantene. and suggestive of its source of inspiration. even as the P&G hoardings stood tall on its skyline.” he added. Ambush marketing: HUL's last-minute surprise foxes P&G Kala Vijayraghavan.” P&G spent most of the 1990s establishing a global footprint.”When contacted by FE. 2010. they saw an opportunity to score a point. we cannot offer any specific comments.. was planning to unveil the new Pantene on August 1. the media or an audience at the Cannes Lions Festival. Gillette shaving systems and Pantene and Head & Shoulders shampoos. Whether he‟s addressing students at IIM-A. the company cannot comment at this stage on Asci orders or matters that are sub-judice. Dove is the No. our business has quintupled. the self-regulatory body of the Indian advertising industry. Asci has framed new guidelines for automotive advertising in view of daredevil acts and stunts being shown in television commercials.. according to Pritchard. seven food and beverage companies in India have recently signed a pledge towards responsible marketing and advertising. Mars Internationa.When the suits at HUL found out. in 1988. The difference is that in China too. Dove is one of the four brands in HUL's shampoo portfolio. 2010. ET Bureau Jul 29.. Two years ago. it finally has the chance to live up to its purpose. Kellogg India. Mumbai woke up to another hoarding that was upfront.Battle lines were drawn in the branded shampoo market when Procter & Gamble launched its „mystery shampoo‟ outdoor and print advertisements on July 23. Our total sale is much more in China. 12. PepsiCo India. It said: 'There is no mystery. Pritchard opts to take the high road on this one: “We can‟t prevent any competitor from ambush (surprise attack).revealed to be P&G‟s Pantene) being hijacked by Dove from the HUL stable. Nestle India. “P&G is committed to adhering to all standard industry practices and legal requirements of the country.We are pleased that Asci has upheld our complaint on this misleading claim.Signatories of the pledge are Coca-Cola. “We have filed a case in the Delhi High Court with regard to a disparaging claim being made in one of our competitor‟s shampoo advertisement. HUL has filed a case in the Delhi High Court with regard to a disparaging claim being made in P&G‟s recent advertisement for Pantene. we are coming from behind but that can be a competitive advantage as well because you can leapfrog technology and infrastructure. has upheld HUL‟s recent complaint against P&G‟s „mystery shampoo‟ outdoor and print advertisements. On July 28. HUL‟s primary objection to the claim of “a mystery shampoo" is that 80% (8 out of 10) women say Pantene is better than anything else‟ as it relies on a very old study of 2008.” said an HUL spokesperson. we started at the same time.
Culture Change „Organization 2005 also aims at changing P&G's culture from a conservative."  Bad Results However. Head & Shoulders. P&G and J. Crest mints and Crest breath freshener‟. Smucker Co. The deal will allow P&G to cash in on the global gum. fast-moving. with at least 250 brands in six main categories: laundry and cleaning (detergents). you see a consumer-friendly portal with loads of information about P&G products. . In 1999. Today. wring costs out of systems and procedures. which makes a wide variety of jams. „Its new spirit of openness is most evident on the Internet. and Oil of Olaz. and breath-freshener market.M. Examples of these issues are the internationalisation and consolidation of retailing.‟ In addition. medicine). However.77bn] alliance. P&G stresses the company will pick the fruits of the ambitious restructuring plan in the near future.3) in January 2000 to $64 (£44. food and beverages (coffee." New Alliances One of P&G's new strategies is linking up with other companies to extract as much value from its brands as possible. and in new product research and development. Sunny Delight.000 workers over the next three years and reorganising the company's corporate structure from four geographic business units to seven global business units based on product categories..3) in June 2001 . paper goods (toilet paper).P&G’s famous brands include Ariel. Marketing (still gaining importance) is definitely an important key to P&G‟s success.Industry Area: Worldwide producer of consumer. nondescript site where no one other than investors or job seekers had any reason to go to. P&G wants to make faster and better decisions." former CEO Millen explained. The company stumbled badly in 2000 missing analysts‟ profit expectations and causing its famously reliable stock to plummet from $103 (£71. category management. P&G successfully tied up with chewing gum giant the Wrigley Company. mint. is acquiring the Jif peanut butter and Crisco cooking oil brands from P&G for $1 billion in stock . „A spokesman for Coke said: "After many months of due diligence with Procter & Gamble. P&G has recently announced it will sell the Jif and Crisco brands in a bid to get rid of under-performing brands. cut red tape. This is bigger than the toothpaste market and equal in size to the shampoo or skincare sectors.P&G defined many marketing strategies we now take for granted. "This restructuring. The catalyst for all this change is IT. P&G was hoping Coke‟s far-reaching distribution network could give the company a boost. A year ago. P&G manufactures chemicals as input for its own products as well as for the chemical processing industry. snacks). Fabreze. The alliance would involve the union of some 40 consumer products (including Sunny Delight. Last February (2001) Coke and P&G announced a $4bn [£2. the Guardian reports . One reason for P&G's domestic success has been their reliance on a combination of consumer research. P&G‟s renowned R&D capacities were attractive to Coke. feminine care (sanitary towels) and health care (toothpaste. fuel innovation. jellies and other foods. „We will soon be able to sweeten our mouths with Crest gum. CEO Durk Jager kicked off Organization 2005 in order to forge better performance. set more aggressive sales goals and nearly double its revenue. Internet-savvy organisation."‟ However. and distribution techniques. Overview Market share/importance: Procter & Gamble (P&G) is America’s biggest maker of household products. P&G wants to abandon its legacy of secrecy. beauty care (cosmetics. Pantene. from 5 percent in 1996 to 2. P&G has not been very successful recently. retailers and wholesalers at the outset of the 21st century. As one critic put it: "Within a paternalistic corporate culture. „Annual sales growth has been slowing over the last few years. the potential effects of the Euro currency and dramatic advances in information technology. bureaucratic behemoth to that of a modern. we felt that we could unlock the value of our brands more effectively and profitably by retaining full control of them.6 percent in 1999‟. About half of P&G's sales come from its top ten brands. household and pharmaceutical goods (in addition. advertising. "will ensure that P&G is well placed to address the issues facing manufacturers.‟ So far. it was a stodgy. Organization 2005 has had little to show. shampoos). P&G pioneered in brand management. in consumer surveys for marketing research. slow-moving. Organization 2005 includes cutting 17. consumer loyalty and retention. Pringles and Minute Maid) under the umbrella of a Coke-P&G joint venture. and P&G produces Soap Operas as part of its elaborate marketing strategy in order to hook female customers up to its brands). Eight months later the consumer goods behemoths called the wedding off.
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