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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. ³Initiative 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 y Comparative advertising y Early rin ads«aggressive advertising y µconcept of lightning striking¶«.¶uski shirt meri shirt se safed kaise¶ y Rin vs tide ad y Clear ad campaign y Attack on arch rival P&G y Aggressive advertising«..format of challenge y pureIT«.1 crore challenge«..comparitive advertising with other purifiers«advertisement y pureit gives water purified w/o electricity w/o running water y 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. y Rs 3,000 crore Indian shampoo market. y The company had recently revised prices upwards of its ¶Lux¶ and µLiril¶ soap brands by up to 10 per cent. y 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. y 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.
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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.³So 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
revealed to be P&G¶s Pantene) being hijacked by Dove from the HUL stable. Dove is the No. he¶s a tireless champion of brands serving consumers or ³purpose driven branding.´ he said. it finally has the chance to live up to its purpose. Two years ago. Here Hindustan Unilever is very strong and very established. the media or an audience at the Cannes Lions Festival.´ P&G spent most of the 1990s establishing a global footprint. Recently. seven food and beverage companies in India have recently signed a pledge towards responsible marketing and advertising. our business has quintupled.Battle lines were drawn in the branded shampoo market when Procter & Gamble launched its µmystery shampoo¶ outdoor and print advertisements on July 23. household cleaners and cosmetics in which it is present worldwide. P&G had dragged HUL to the doors of the Asci on two of HUL¶s skin cream television commercials. Asci ² the watchdog of the Indian ad industry ² has been receiving over 220 complaints a month from consumers against misleading advertisements. we cannot offer any specific comments. Pritchard opts to take the high road on this one: ³We can¶t prevent any competitor from ambush (surprise attack).. Dove is one of the four brands in HUL's shampoo portfolio.53am IST MUMBAI: It was quick and it was smart.When the suits at HUL found out.´ he added. is yet to enter several categories in India such as body wash.We are pleased that Asci has upheld our complaint on this misleading claim.detergents. Gillette shaving systems and Pantene and Head & Shoulders shampoos. . The difference is that in China too. But if you focus on the consumer. It said: 'There is no mystery.Here¶s a new twist to the ongoing ad war between Hindustan Unilever Ltd (HUL) and Procter & Gamble India (P&G).´ said McDonald. was planning to unveil the new Pantene on August 1. since the year 2000. in 1988.. when the economy opened up. On July 28. and suggestive of its source of inspiration.After reviewing HUL¶s complaint. Kellogg India. Asci¶s Consumer Complaints Council(CCC) concluded that P&G¶s claim ² ³80% women say it¶s better than anything else´ ² was not substantiated as it was a study on Thailand consumers not Indians. they saw an opportunity to score a point. Whether he¶s addressing students at IIM-A. Ambush marketing: HUL's last-minute surprise foxes P&G Kala Vijayraghavan. However.´When contacted by FE. ³We 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. 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. you will win most of the time.The story starts on July 23. Asci has framed new guidelines for automotive advertising in view of daredevil acts and stunts being shown in television commercials. as far as children are concerned. ³We have to get into those 13 other categories and we have plans in place to do those.´ said McDonald. Nestle India. Since January this year. has upheld HUL¶s recent complaint against P&G¶s µmystery shampoo¶ outdoor and print advertisements. the self-regulatory body of the Indian advertising industry. PepsiCo India.. Mumbai woke up to another hoarding that was upfront. and General Mills India. So.Signatories of the pledge are Coca-Cola. HUL¶s primary objection to the claim of ³a 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. as the matter is sub-judice.´ said an HUL spokesperson. It was an ambush in the skies that Hindustan Unilever launched against archrival Procter & Gamble. the company cannot comment at this stage on Asci orders or matters that are sub-judice. 12. 2010.. 2010. we started at the same time. when Mumbai woke up to hoardings that screamed: 'A Mystery Shampoo!! 80% women say is better than anything else'. ET Bureau Jul 29. The Advertising Standards Council of India (Asci). spoiling the latter's elaborately laid-out plans for its shampoo brand Pantene.According to a spokesperson from P&G.. Mars Internationa. it was later found. according to Pritchard.1 shampoo'. we are coming from behind but that can be a competitive advantage as well because you can leapfrog technology and infrastructure.After implementing self-regulation guidelines on advertisements of food and beverages last year. In July this year. what your brand is doing to serve the consumer and if you have a big idea. They ambushed P&G. ³P&G is committed to adhering to all standard industry practices and legal requirements of the country. P&G had put up hoardings which talked about a mystery shampoo which µµ80% women say is better than anything else. even as the P&G hoardings stood tall on its skyline. P&G. an HUL spokesperson confirmed the news. premium fragrances.In a related development. HUL. 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. Growth µremarkable¶ ³Our Indian business is actually growing at a remarkable rate. Now.´ And that¶s a running theme through pretty much everything that Pritchard has to say. Our total sale is much more in China.
the Guardian reports . Culture Change µOrganization 2005 also aims at changing P&G's culture from a conservative. This is bigger than the toothpaste market and equal in size to the shampoo or skincare sectors. advertising. and distribution techniques. mint. Fabreze."  Bad Results However. paper goods (toilet paper). µIts new spirit of openness is most evident on the Internet. jellies and other foods. with at least 250 brands in six main categories: laundry and cleaning (detergents). P&G wants to abandon its legacy of secrecy. and breath-freshener market. Overview Market share/importance: Procter & Gamble (P&G) is America¶s biggest maker of household products. In 1999. P&G manufactures chemicals as input for its own products as well as for the chemical processing industry. snacks). we felt that we could unlock the value of our brands more effectively and profitably by retaining full control of them." 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. Organization 2005 includes cutting 17. About half of P&G's sales come from its top ten brands. food and beverages (coffee. P&G pioneered in brand management. "will ensure that P&G is well placed to address the issues facing manufacturers. P&G successfully tied up with chewing gum giant the Wrigley Company. µA spokesman for Coke said: "After many months of due diligence with Procter & Gamble. The company stumbled badly in 2000 missing analysts¶ profit expectations and causing its famously reliable stock to plummet from $103 (£71. Pantene. you see a consumer-friendly portal with loads of information about P&G products. CEO Durk Jager kicked off Organization 2005 in order to forge better performance. Examples of these issues are the internationalisation and consolidation of retailing."¶ However. The catalyst for all this change is IT. Head & Shoulders. beauty care (cosmetics. from 5 percent in 1996 to 2. retailers and wholesalers at the outset of the 21st century. "This restructuring. set more aggressive sales goals and nearly double its revenue. cut red tape. P&G stresses the company will pick the fruits of the ambitious restructuring plan in the near future.P&G¶s famous brands include Ariel. P&G has recently announced it will sell the Jif and Crisco brands in a bid to get rid of under-performing brands. As one critic put it: "Within a paternalistic corporate culture. and P&G produces Soap Operas as part of its elaborate marketing strategy in order to hook female customers up to its brands). Organization 2005 has had little to show. medicine).3) in June 2001 . it was a stodgy. which makes a wide variety of jams. P&G has not been very successful recently.¶ So far.77bn] alliance.¶ In addition. fuel innovation. is acquiring the Jif peanut butter and Crisco cooking oil brands from P&G for $1 billion in stock . Today. and Oil of Olaz. shampoos). µWe will soon be able to sweeten our mouths with Crest gum.3) in January 2000 to $64 (£44. the potential effects of the Euro currency and dramatic advances in information technology. wring costs out of systems and procedures. P&G wants to make faster and better decisions. µAnnual sales growth has been slowing over the last few years. Pringles and Minute Maid) under the umbrella of a Coke-P&G joint venture. P&G was hoping Coke¶s far-reaching distribution network could give the company a boost.6 percent in 1999¶. However. bureaucratic behemoth to that of a modern. Sunny Delight. P&G and J.M.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.P&G defined many marketing strategies we now take for granted.. Smucker Co. household and pharmaceutical goods (in addition. consumer loyalty and retention. Marketing (still gaining importance) is definitely an important key to P&G¶s success. P&G¶s renowned R&D capacities were attractive to Coke. category management. and in new product research and development. A year ago. . One reason for P&G's domestic success has been their reliance on a combination of consumer research. feminine care (sanitary towels) and health care (toothpaste." former CEO Millen explained. Eight months later the consumer goods behemoths called the wedding off. The alliance would involve the union of some 40 consumer products (including Sunny Delight. fast-moving. The deal will allow P&G to cash in on the global gum.Industry Area: Worldwide producer of consumer. nondescript site where no one other than investors or job seekers had any reason to go to. Last February (2001) Coke and P&G announced a $4bn [£2. Internet-savvy organisation. slow-moving. in consumer surveys for marketing research. Crest mints and Crest breath freshener¶.
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