Procter & Gamble (P&G) Home Products Ltd, the fast moving consumer goods (FMCG) major that sells mid and premium detergent brands such as Tide and Ariel, is looking at making its presence felt in the mass-end detergent category now — a section that has already seen intense competition rake up over the last one year.
The company this week is launching a mass-end priced detergent called Tide Naturals, under the mother brand Tide.
This is expected to heat up the battle between P&G and Hindustan Unilever Ltd (HUL) that currently leads the mass-end category with its Wheel and Rin. Tide Naturals will be priced at Rs 10 for 200 grams and Rs 20 for 400 grams compared with the slightly premium Tide range that sells at Rs 10 for 135 grams and Rs 20 for 270 grams. The pricing of the new variant is in line with Wheel.
Strategically, it can double the whammy for HUL, which is experiencing continuous market-share loss in mass-end detergents to aggressive regional brands. P&G says its incursion is to garner a new set of consumers.
“Tide Naturals is priced at a more affordable rate to serve consumers that we were unable to serve earlier,” P&G said in response to a DNA Money query.
But that’s not all. P&G plans to take on the Anglo-Dutch giant in the fairness cream category too. The company, which already has a skincare portfolio under the Olay brand, recently launched a mid-premium fairness cream — Olay Natural White, positioned opposite HUL’s Pond’s fairness cream portfolio.
The new fairness cream is priced at Rs 299 for a 50 grams pack. Olay Natural White brand, like the Pond’s White Beauty portfolio, has other products like the fairness UV block, face-wash, and lotion priced between Rs 99 and Rs 299.
“P&G is turning aggressive with two simultaneous launches in categories that can hurt HUL. We believe, HUL will have to maintain high levels of A&P (advertising and promotions) spend to revive their mass-end portfolio in detergents and will also need to step up spends to counter P&G’s entry into premium fairness cream segment,” Anuj Bansal of BoFa Merrill Lynch said in a note to clients.
P&G Home Products is the wholly owned Indian subsidiary of The P&G Company, US, and has brands such as Tide and Ariel in fabric care and others such as Head & Shoulders, Pantene and Rejoice in hair care under its portfolio.
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