Soap war extends to dropping names

HUL wants ‘Naturals’ to be withdrawn from Tide name.

The Madras High Court’s direction to Procter & Gamble (P&G) to issue a prominent disclaimer in Tide Naturals ads that the product does not contain lemon and chandan is unlikely to end the public spat between two of the country’s biggest fast moving consumer goods firms in a hurry.

Hindustan Unilever is determined to convince the court that P&G should drop the word ‘Naturals’ from the name and merely displaying a disclaimer — ‘It does not contain lemon and chandan’ — is not enough. This is because of P&G’s own admission in the court on February 25 that the product uses only lemon and chandan fragrance. And the name should be dropped not only from its advertisements but also the packs.

Sources familiar with the developments said when the hearing resumes on March 22, the HUL counsels will reiterate to the court its arguments made in the original petition that P&G has deliberately named the new variant of Tide as ‘Naturals’ to convey to the public at large that the said variant contains natural ingredients like lemon and chandan paste.

P&G, by naming its product as ‘Naturals’, is inducing a false belief in the consumers that the detergent powder is softer on skin and provides best cleaning s compared to all other detergent powders. “It is a well known fact that mere addition of fragrances cannot deliver any softness benefit or ease the washing to provide best clean,” the HUL petition says.

Tide entered India in 1998 and has been pitted against HUL’s Rin all these years on the ‘whitening’ platform. But the action started in 2004 when P&G dropped prices and entered the mid-price segment dominated by Rin then. Tide Naturals, which P&G has strategically positioned between the economy and mid-priced segment, has added to the competition that Rin faces. Tide Naturals is also positioned for the rural and semi-urban markets which is more of a volume play, but hold tremendous potential going forward.

According to independent estimates, the value share of Tide is now almost double that of Rin. HUL then cut prices of Rin Powder (1 kg) from Rs 70 to Rs 50. In its latest ad, the price cut is being prominently displayed (Rs 25 for 500 gm) for the Rin pack while Tide Naturals is pegged at Rs 20 for 400 gm. There are also some promo pack sizes at Rs 10 for 250 gm.