Financial Daily from THE HINDU group of publications
Tuesday, Mar 16, 2004
Financial Daily from THE HINDU group of publications Tuesday, Mar 16, 2004 |
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Marketing
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Strategy HLL bid to Excel in shampoo segment Our Bureau
Mumbai , March 15 HINDUSTAN Lever Ltd (HLL) has decided to extend its price-cutting initiatives from the detergent to the shampoo segments. Only this time, it is not a direct price cut, but a derivative in the form of an offer of a free bottle for every bottle of its Clinic Plus or Sunsilk bottle purchased. Close on the heels of effecting a price cut for its detergent brand, Surf Excel, the FMCG major has now decided to build up fresh lather in the shampoo market by building up new volumes through enhancement of "consumer value". The company, which intends to market its one-plus-one offer through active media campaigns and on-ground marketing efforts, expects it to go down well with consumers. Asked whether this offer for shampoo bottles would impact sales of sachets, a senior official of the company told Business Line that in fact one of the intentions of the offer was to wean away consumers from sachets to bottles. With India's per capita shampoo consumption being significantly lower than those of developed countries, HLL, which commands a nearly 50 per cent share in the domestic shampoo market, believes that its new offers would drive consumption and frequency of usage. It will seek to market its offer on the plank that bottle packs can deliver better value to consumers than sachets. According to the official, while its Clinic Plus commands a share of 15 per cent in the shampoo market, its Sunsilk brand has a share of 25 per cent. HLL has recently re-launched Sunsilk as Sunsilk Naturals, with significantly enhanced formulations and new variants. Asked about the impact of this `one-plus-one' offer on the company's bottomline, the official said in the short term, there would be some impact, but in the long run the company expects to partly neutralise the impact by the volume expansion that this offer is expected to trigger.
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