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It·s the first time in India that competing brands have been named rather than
pixilated (as they usually are) in a TV commercial. For the TV commercial click here,
Rin Vs Tide Naturals Ad campaign
Comparative advertising is there to stay. In real terms, it must be used often as it

makes it easy for consumers to evaluate and chose the best among several available
options. There is a limit to everything and similar is the case with advertising;
wherein ASCI (Advertising Standard Council of India) has defined certain rules that all
advertisements must comply with.
The recent war between HUL and P&G is over the advertisements featuring Rin and
Tide Naturals. HUL (through its latest advertisement launched in last week of Feb)
openly challenges the superiority of its product Rin over P&G's Tide Naturals. This
campaign claims that Rin provides more brightness in comparison to Tide Naturals,
which is the new product that P&G launched a couple of months ago in the mass
segment positioning it against Rin as well as Wheel. Declining market share forced
HUL to get aggressive in its advertising strategy to regain market share. But was HUL
right in doing so?
HUL claims that the Rin commercial is in line advertising regulations laid by the
industry. HUL terms its claim to be factual, accurate and substantiated based on
laboratory tests done through globally accepted protocols in independent third party
laboratories. ASCI has even issued a notice to HUL to substantiate its claim.
P&G has also moved to High court against the disparaging advertisement of HUL's Rin.
Prior to this, HUL had challenged P&G's claim in its advertisment on Tide Natural. On
being directed by ASCI, P&G seems to have modified its advertisement.
Following are the statements made by spokespersons from both companies:-
ÿ

Referring to P&G, an HUL spokesman said: ´The advertising of one of our competitors
has sought to give the impression that theirs is a natural detergent when, in fact, by
their own admission in court, it is a synthetic detergent. This has misled consumers at
large.µ

The P&G spokesperson denied this charge. ´Tide Naturals has the goodness and
freshness like that of lemon and sandalwood. This claim does not in anyway lead
consumers to believe that any natural ingredients are present in the detergent,µ she
said.
Doubt that still remain in people's mind is whether HUL was right in bringing the
disparaging advertisement that explicitly attacks P&G's Tide.
As per Nadkarni, founder director of Marketgate Consulting, it is a valid strategy

followed by marketers to really compare their product and if one has superiority then
it is a question of letting consumers know that you have that product. (excerpt from
CNBC-TV18 interview) The only thing is that the claim must be substantiated
properly.
Another thing hovering in a marketer's (or even common men) mind is about the Tide
commercial's calling its new product as Tides Natural. People complained that it
cannot call itself Natural as it doesnot contain any natural ingredient. But did we ever
wonder whether Wheel Lemon and jasmine or wheel lemon and orange has any of
these or Pond's sandal talc has sandal wood in it.
Dust does not seem to be settling soon, with ASCI waiting for HUL's reply to the notice
asking for substantiating its claim described in the commercial. While rest of the
industry and common men is wondering how would P&G reply to this through its
commercials.
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It may have been a rough ride for Hindustan Unilever (HUL) these past few years, but detergents
are adding that extra sheen to the company's portfolio.
HUL's wheel of fortune is turning. And, the company's detergent business is growing at
13.6% this year versus the industry average of 8.4%. And all that is happening by increasing
its focus on semi urban and tier-II cities and by giving its brands Wheel, Surf Excel and Rin that
extra push.
Sudhanshu Vats, Category Head - Home Care, HUL said that 55% of the consumption is coming
out of urban India. "Urban India is growing at 7%, rural demand is growing at 10%, which is
much faster. But if you look at specific clusters, it is the small town urban that is growing
rapidly," he added.
That small town urban growth has made HLL not only retain but also grow its leadership
position in the detergent market in the past quarter.
Its value market share is up at 37.8% vs 35.3% in the same period last year. HUL is followed by
P&G, which has also grown from 7.1% to 7.6%. But the detergent price warrior Nirma seems to
have had some tough luck. Its market share has fallen by 1.7%, a fall that is significant with the
changing times.
Experts say that with income levels rising, consumers are willing to spend a few extra bucks on
upgrading their detergent brands.
And that is what HUL and P&G are cashing in on.
Both HUL and P&G have steadily hiked prices by 2-4% over the past two years. Vats said, "Cost
pressures continue to be significant, but we are managing them both in terms of innovation and
ability to pass on some of the cost pressures to consumers.
And so, HUL is now tailor-making products for modern trade formats, which curently account
for less than 3% of the company's detergent sales. It has recently launched washing powders for
washing machines, a liquid variant of Surf Excel, a fabric conditioner - and is now all set to
storm the market with more liquid detergents and pre-wash and post-wash products.
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The price war between detergent giants Hindustan Unilever (HUL) and Procter & Gamble
(P&G) continues, as they battle for mindshare in the domestic market.Ê
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.
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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 ² 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.Ê
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.
³Hindustan 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 µ09 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 µ09
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.

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c

Comparative advertising is there to stay. In real terms, it must be used often as it

Following are the statements made by spokespersons from both companies:-

As per Nadkarni, founder director of Marketgate Consulting, it is a valid strategy

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c  

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