P&G hopes to turn the Tide in detergents

Re-ENTERING SEGMENT to fill the Ariel gap

Consumer goods maker Procter & Gamble is trying its luck again in the detergent bars market.

After failing to wash the market with its Ariel detergent bar, the company is now re-entering the segment with its Tide brand.

"With the launch of Tide bar, we are discontinuing the Ariel bar, as we believe Tide offers better value (product) to consumers. Also, we have not been supporting the Ariel detergent bar for the last couple of years," said Chester Twigg, sales & marketing director, P&G. The move reinforces P&G's shift from the premium segment to the mass-market.

The Ariel detergent cake was launched a decade ago and its distribution was handled by third parties. The last distributor was Marico Industries, known for its Parachute hair oil and Saffola edible oil brands.

After the break-up of the distribution alliance with Marico, P&G Home Products, the wholly owned subsidiary of the Cincinnati based P&G, did not invest in the segment/brand, as it was not a key focus area for the company.

This time, it has priced Tide lower than Ariel, bringing it at par with other leading brands. Tide bar is priced at Rs 5 for a 75 gm bar, Rs 8.50 for a 125 gm, and Rs 13 for a 200 gm bar. A 200 gm Ariel bar was priced at Rs 17.50.

Arch rival Hindustan Lever has a significant presence in the detergent bar category under the Rin and Wheel franchisee with a total market share of over 40 per cent. Rin Supreme has the largest pie of 14 per cent.

With both the MNCs engaged in a price war in the detergent and shampoo categories, the former's re-entry in the detergent bar segment shows its aggressiveness to take on HLL here too.

The top management of HLL had been saying that it will go to any extent (price cuts) to protect and enhance its market share. The other players in the segment are the Ahmedabad based Nirma and Jyothi Laboratories.

The Indian laundry market is Rs 5,000 crore in size, making it the world's third largest detergents market. Detergent bars comprise 43 per cent of the total market and detergent powders comprise the balance 57 per cent. However, the detergent bar market is shrinking in India.

Tide detergent bar is manufactured by a Kochi based third-party. P&G executives refused to divulge sales targets or market share expected from this category.