What are the challenges being faced by P&G, especially in the wake of competition from
detergent brand Surf of Hindustan Unilever?

 The task for Ariel was to persuade the modern Indian lady who heedlessly purchases the
brand her mother used of performance superiority. The message was fresh: "With Ariel's
New Matic laundry is; child's or should we say man's play."
 Indian women did not respond well to traditional advertising because they discounted its
claims. They required direct feedback from their relatives and friends.
 Additionally, Indian women are open to categories like feminine hygiene or skin care that
are more intimately related to their bodies than laundry. The agency needed to approach
them when they were most receptive and integrate itself into their chats, frequent gossip,
and slang.

 The price war between detergent giants Hindustan Unilever (HUL)

and Procter & Gamble (P&G) continues, as they battle for mindshare
in the domestic market.
 Last week, HUL had brought down the price of a 1-kg pack of Rin
detergent powder by Rs 20 (to Rs 50 from Rs 70), a cut of almost 29
per cent. The price of a 500g pack of Rin was also slashed to Rs 25
from Rs 35. And, it has now cut the price of certain stock keeping
units (SKUs) of Surf Excel Blue, one of the variants under the Surf
Excel umbrella. The price of a 200g pack of Surf Excel Blue has been
reduced to Rs 23 from Rs 25, while a 500g pack of the same brand is
available at Rs 55, down by Rs 7, according to a company
spokesperson.
 The move follows intense competition, as well as downtrading
(opting for cheaper products) by consumers in the soaps and
detergents category. Falling market share had compelled HUL to
relaunch its soaps portfolio in the second half of the last calendar
year. Company officials say the response to the relaunch had been
favourable over the recent months.
 Now, detergents seems to be on its radar, with the company
resorting to straight price cuts, as well as increase in grammage, to
deal with competition from national and regional companies. For
instance, a 150g pack of Rin detergent powder has an additional 50g
going with it — all of which is available at Rs 10. Then, there is a 600g
pack of Wheel which has an additional 50g attached, that costs Rs 20
only. A 325g pack of Wheel costs only Rs 10.
 The heightened activity to reduce price and increase grammage by
HUL, say analysts, was after P&G’s launch of a low-priced variant of
Tide, called Tide Naturals, in December last year. A 200g pack of Tide
Naturals costs Rs 10 and a 400g pack costs Rs 20, respectively. Tide
 itself has a 500g pack available at Rs 35 and a 1-kg pack costing Rs
70. Its Ariel brand, at the premium end, costs Rs 34 for a 200g pack,
Rs 78 for a 500g pack and Rs 152 for a 1-kg pack.
 “Hindustan Unilever would have to do this to fend off competition in
the segment,” reasons Pritee Panchal, analyst at brokerage firm SBI
Cap Securities. Particularly, competition from P&G: in the October-
December ‘09 quarter, it had a market share 16.5 per cent, says
Shirish Pardesi, senior analyst at brokerage Anand Rathi, up from
11.6 per cent in the April-June ‘09 period. HUL’s share was 37.5 per
cent in the third quarter, up marginally from the June ending
quarter, when it was 36.2 per cent.
 Ariel’s price points, too, are almost in line with Surf Excel’s Quick
Wash variant. The heat is clearly on in detergents.