Kareena pulls a Deepika

No...Kareena hasn't managed to pull Ranbir.... This is with reference to Kareena Kapoor endorsing for Vivel the latest of the soaps launched by ITC in its all out war against HUL. Not so long ago Kareena kapoor was luring customers towards her seductive advertisement for LUX Chocolate seduction limited edition. As a direct jump that is akin to Sourav Ganguly jumping from Coke to Pepsi Kareena has shown that loyalty is not necessarily a precondition for endorsement jumping from HUL's LUX to ITCs Vivel

If we do remember an upcoming, then soon to be famous Padukone in her lemon green bikini managed to win hearts in the Liril Advertisement. Now she is off showing how to have a "Beautiful you, today and Tomorrow" endorsing Fiamma Di wills the luxury soap range of ITC.


Maybe all these celebrities are finding ITC products better(to the pockets atleast:-)), or it is just a coincidence, but nevertheless ITC is making life real tough for HUL. The giant Levers which beat P & G fair and square, has met someone its own size. But the real interesting point to be seen here is the loyalty expected of customers is very rarely exhibited by the brand ambassadors who themselves are rarely loyal to a brand. Although celebrity endorsements do seem to be very effective(although not measurable), such jumps across brands does pose a big problem for the marketing organizations.

Marketers need to come up with loyalty programs that suit the brand ambassadors too nowadays:-)

Shampoos off the shelf

With the fmcgs looking for new ways to beat each other in every area, the channel wars has taken a turn with companies actively concentrating on the Chemist channel for future growth. Unlike the rural distribution where Unilever's enjoys a pan-india presence this channel provides an even ground where no clear winner has emerged till now. With a pharmacy every 50 meteres in major cities it, provides a unique challenge where the lesser volumes would still command a lot of resources in terms of Point of sale activities, in store promotions apart form the actual distribution costs.

L'Oreal uses this channel to cross sell its shampoos along with its other personal care products. While P & G and Unilevers are battling it out to win it of the shelf. This necessitates innovations in terms of the schemes offered to the retailers and also in terms of packaging in order to increase off take. In a high impulse purchase category like shampoos packaging forms the biggest challenge and P & G seems to have found the answer with the new look Head and Shoulders which has a unsymmetrical shape taking a dig at the curious customer who would like to hold the bottle. The job is half done once the product is touched by the consumer. Similarly Loreal's Garnier range of shampoos with its distinctive fluorescent green color grabs the attention of the visitor and has managed to attain a fair level of visibility.

Still the availability seems to be the biggest problem for the chemists who frequently complain of a stock out situation. Currently P & G has managed a very decent distribution of its products through the chemist channel whereas HUL is still in an capability building stage. With not even one third of this channel tapped and a huge avenue for increased sales of personal care products through this channel a huge churn can be expected with companies spending a lot to win the battle.

Goliath Vs Goliath: The upcoming Soap Wars

ITC to foray into soaps
The buzz about ITC plunging into the highly penetrated toilet soap market is getting louder by the day.It is learnt that the cigarette-to-hotels major is eyeing the mass segment of the soap category, which is why some existing players are said to be sitting on old stock and holding on to the price line.Sources said ITC plans to unveil its soap brand in the next two-three months. The name of the brand is being kept closely under wraps, and, it is not going to be the same brand, Superia, which the company was test marketing over a year ago in some rural areas, sources added.A senior industry official told TOI: "Companies are holding on to the price line for the moment, despite pressure building on the raw material price front. We don't want to get caught in a situation where we raise prices and ITC launches its soap brand at a lower price."Palm oil prices are currently ruling at around $650 per tonne. Industry analysts are skeptical whether I TC should enter the market at such high raw material prices.Dealers of fast-moving consumer goods (FMCG) companies said that the last price increase that took place in the soap segment was initiated by Hindustan Unilever (HUL) in July this year.HUL had taken a mid-year price increase on various products across categories. Prices of Pears soap and Lux were revised upwards. In the case of its popular soap brand Lifebuoy, HUL had reduced the grammage, keeping the price intact.HUL is the leading soap maker in the country, with a market share of 54%.As for Godrej Consumer Products (GCPL), the second largest soap maker with a market share of 10%, the company had recently said that prices would be raised soon.Industry analysts said ITC's entry is bound to create excitement in the Rs 4,400 crore toilet soap category.Decible levels on the advertising and promotion front are set to soar in the next few months.

ITC, as we have seen during the BINGO launch is going to enter the market with all its might. HUL is expected to preempt the same and come up with its own defensive strategy in a market it has ruled till date. Expect severe casualties when these two giants fight it out!!!!!

Procter and Gamble to launch CREST in India

With rumours of FMCG giant Procter & Gamble ready to launch its toothpaste, Crest, in India market leaders Hindustan Lever and Colgate Palmolive may soon begin to feel the heat. To add to this, smaller players are aggressively re pricing their products, the toothpaste market is all set for some bloodletting.The $44 bn Procter & Gamble, is getting set to give HUL and Colgate-Palmolive a run for their money by launching its multi-billion global toothpaste brand, Crest, in India at a price of Rs21-25 for a 135 gm pack. P&G delayed the launch of Crest as Ajanta, the watch manufacturer, entered the market with a 50 per cent price differential to the leading brands. Ajanta launched a 200 gm pack for Rs20.

Crest, launched globally in 1955 as the world's first fluoride toothpaste, is a part of P&G's global healthcare business unit. It is currently one of the leading toothpaste brands in markets like North America, Western Europe and China.Apart from this LG Care has also launched a range of household products in India including Cliden toothpaste priced on par with Colgate and Close-Up.Moreover, since the beginning of the year, small players like Anchor Beauty and Ajanta have been giving HLL and Colgate Palmolive a tough time with price discounting and freebies. The net result has been that the two MNCs have fought back on the pricing front as well as with new product launches leaving the smaller players with stagnant or falling market share. HUL and Colgate Palmolive have managed to retain their leadership in the market.The latest to fire the salvo has been the Gujarat-based Anchor Beauty and Healthcare. Despite being priced at the lower end of the price spectrum, the company has been losing market share. In a bid to increase its sales, the company has introduced a 60 per cent discount on the MRP for a combipack of Anchor White toothpaste along with an Anchor Premium toothbrush. While the MRP for a 200-gram Anchor White toothpaste and toothbrush is Rs54 and Rs15 respectively, the combipack is being offered at only Rs25. Though officials say the offer is initially open in Delhi, the company is offering discounts in several other markets. HUL's Close-Up and Colgate Palmolive's Colgate 200gm packs retail for Rs40. HUL with its Pepsodent and Close-Up brand has 36 per cent of the market while Colgate is the undisputed leader with about 50 percent share. The size of the toothpaste market is about Rs2,500-crore. Shah claims 14-15 per cent market share for Anchor White toothpaste while ORG figures put its share at 7.8 per cent. HUL and Colgate Palmolive, the former already suffering from price wars unleashed by P&G, may have to gear up for a prolonged battle now in toothpaste.