HUL vs P&G 2010 data The shampoo market in India is estimated to be Rs 2,500-3,000 crore.
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
” P&G spent most of the 1990s establishing a global footprint. we are coming from behind but that can be a competitive advantage as well because you can leapfrog technology and infrastructure.” said McDonald. In July this year. we started at the same time. as the matter is sub-judice. as far as children are concerned.The story starts on July 23. Dove is the No. what your brand is doing to serve the consumer and if you have a big idea. is yet to enter several categories in India such as body wash. they saw an opportunity to score a point. since the year 2000.1 shampoo'.We are pleased that Asci has upheld our complaint on this misleading claim. in 1988. the media or an audience at the Cannes Lions Festival. 2010. Dove is one of the four brands in HUL's shampoo portfolio. when Mumbai woke up to hoardings that screamed: 'A Mystery Shampoo!! 80% women say is better than anything else'. Two years ago. he‟s a tireless champion of brands serving consumers or “purpose driven branding. “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. Pritchard opts to take the high road on this one: “We can‟t prevent any competitor from ambush (surprise attack). household cleaners and cosmetics in which it is present worldwide. Asci has framed new guidelines for automotive advertising in view of daredevil acts and stunts being shown in television commercials.After implementing self-regulation guidelines on advertisements of food and beverages last year. 2010.. 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. But if you focus on the consumer. was planning to unveil the new Pantene on August 1.. P&G had put up hoardings which talked about a mystery shampoo which „„80% women say is better than anything else. “P&G is committed to adhering to all standard industry practices and legal requirements of the country. 12. So. our business has quintupled. Since January this year.” said McDonald.
.According to a spokesperson from P&G.When the suits at HUL found out. seven food and beverage companies in India have recently signed a pledge towards responsible marketing and advertising. you will win most of the time.”When contacted by FE.detergents. 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. premium fragrances. Ambush marketing: HUL's last-minute surprise foxes P&G Kala Vijayraghavan. They ambushed P&G.After reviewing HUL‟s complaint. even as the P&G hoardings stood tall on its skyline. Here Hindustan Unilever is very strong and very established. 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. The Advertising Standards Council of India (Asci).. the self-regulatory body of the Indian advertising industry.” he added. an HUL spokesperson confirmed the news.Here‟s a new twist to the ongoing ad war between Hindustan Unilever Ltd (HUL) and Procter & Gamble India (P&G). On July 28. HUL.Battle lines were drawn in the branded shampoo market when Procter & Gamble launched its „mystery shampoo‟ outdoor and print advertisements on July 23.” said an HUL spokesperson. spoiling the latter's elaborately laid-out plans for its shampoo brand Pantene. Mumbai woke up to another hoarding that was upfront.” he said. and General Mills India. Nestle India. Gillette shaving systems and Pantene and Head & Shoulders shampoos. P&G had dragged HUL to the doors of the Asci on two of HUL‟s skin cream television commercials. The difference is that in China too.revealed to be P&G‟s Pantene) being hijacked by Dove from the HUL stable. “We have to get into those 13 other categories and we have plans in place to do those. when the economy opened up. Now. we cannot offer any specific comments.. Asci — the watchdog of the Indian ad industry — has been receiving over 220 complaints a month from consumers against misleading advertisements. Whether he‟s addressing students at IIM-A. It said: 'There is no mystery. Our total sale is much more in China. ET Bureau Jul 29. Kellogg India.. 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. Mars Internationa.53am IST MUMBAI: It was quick and it was smart. However. PepsiCo India.” And that‟s a running theme through pretty much everything that Pritchard has to say. Growth ‘remarkable’ “Our Indian business is actually growing at a remarkable rate. Recently.Signatories of the pledge are Coca-Cola. It was an ambush in the skies that Hindustan Unilever launched against archrival Procter & Gamble. it finally has the chance to live up to its purpose. it was later found. and suggestive of its source of inspiration. P&G. according to Pritchard.In a related development. the company cannot comment at this stage on Asci orders or matters that are sub-judice. has upheld HUL‟s recent complaint against P&G‟s „mystery shampoo‟ outdoor and print advertisements.
„Its new spirit of openness is most evident on the Internet. is acquiring the Jif peanut butter and Crisco cooking oil brands from P&G for $1 billion in stock . Pringles and Minute Maid) under the umbrella of a Coke-P&G joint venture. P&G stresses the company will pick the fruits of the ambitious restructuring plan in the near future. wring costs out of systems and procedures. Fabreze. One reason for P&G's domestic success has been their reliance on a combination of consumer research. Head & Shoulders. feminine care (sanitary towels) and health care (toothpaste.Industry Area: Worldwide producer of consumer. the potential effects of the Euro currency and dramatic advances in information technology. P&G‟s renowned R&D capacities were attractive to Coke. paper goods (toilet paper). which makes a wide variety of jams.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. shampoos).
. P&G has not been very successful recently. The catalyst for all this change is IT. nondescript site where no one other than investors or job seekers had any reason to go to. and Oil of Olaz. However. Smucker Co. P&G successfully tied up with chewing gum giant the Wrigley Company. set more aggressive sales goals and nearly double its revenue.P&G defined many marketing strategies we now take for granted. Crest mints and Crest breath freshener‟. The company stumbled badly in 2000 missing analysts‟ profit expectations and causing its famously reliable stock to plummet from $103 (£71. bureaucratic behemoth to that of a modern.3) in January 2000 to $64 (£44. Overview Market share/importance: Procter & Gamble (P&G) is America’s biggest maker of household products."‟ However. In 1999. you see a consumer-friendly portal with loads of information about P&G products."  Bad Results However. "will ensure that P&G is well placed to address the issues facing manufacturers. in consumer surveys for marketing research. fuel innovation. it was a stodgy. P&G manufactures chemicals as input for its own products as well as for the chemical processing industry. Examples of these issues are the internationalisation and consolidation of retailing. About half of P&G's sales come from its top ten brands. the Guardian reports . Internet-savvy organisation. mint. food and beverages (coffee. category management." 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. with at least 250 brands in six main categories: laundry and cleaning (detergents).P&G’s famous brands include Ariel. we felt that we could unlock the value of our brands more effectively and profitably by retaining full control of them. P&G wants to abandon its legacy of secrecy. and breath-freshener market. Organization 2005 has had little to show. As one critic put it: "Within a paternalistic corporate culture. P&G pioneered in brand management. beauty care (cosmetics. advertising. jellies and other foods. fast-moving. The deal will allow P&G to cash in on the global gum. The alliance would involve the union of some 40 consumer products (including Sunny Delight.M. snacks). This is bigger than the toothpaste market and equal in size to the shampoo or skincare sectors. „Annual sales growth has been slowing over the last few years. P&G wants to make faster and better decisions. Last February (2001) Coke and P&G announced a $4bn [£2. A year ago. Culture Change „Organization 2005 also aims at changing P&G's culture from a conservative. household and pharmaceutical goods (in addition. consumer loyalty and retention. Sunny Delight. "This restructuring. „We will soon be able to sweeten our mouths with Crest gum. Eight months later the consumer goods behemoths called the wedding off. and distribution techniques. medicine). „A spokesman for Coke said: "After many months of due diligence with Procter & Gamble.. P&G and J. and P&G produces Soap Operas as part of its elaborate marketing strategy in order to hook female customers up to its brands). Today. Marketing (still gaining importance) is definitely an important key to P&G‟s success.77bn] alliance. and in new product research and development.6 percent in 1999‟. from 5 percent in 1996 to 2. Organization 2005 includes cutting 17.‟ So far. Pantene." former CEO Millen explained.‟ In addition. P&G has recently announced it will sell the Jif and Crisco brands in a bid to get rid of under-performing brands. CEO Durk Jager kicked off Organization 2005 in order to forge better performance. retailers and wholesalers at the outset of the 21st century.3) in June 2001 . P&G was hoping Coke‟s far-reaching distribution network could give the company a boost. slow-moving. cut red tape.