P & G Hopes To Do A Pantene With Head & Shoulders
After storming the market with Pantene 18 months back, P&G is back again hoping to repeat its success with another brand, Head & Shoulders, which it launched in Mumbai on Friday at a premium price.
Not just a leading shampoo brand, Head & Shoulders is also a prestige brand for P&G, one with which it has built reputations all over the world. In India, where it has been striving against a surging Hind Lever, the Cincinnati-based MNC is hoping Head & Shoulders will not just reinvigorate shampoo demand, but also build on its known brand image and equity.
Quite naturally, the company is leaving nothing to chance. The marketing plan has all the ingredients of a typical Procter-assault on the well-entrenched fortresses of its adversaries. Like saturation, sampling backed by heavy advertising.
Nearly 10 million free samples of H&S' 6-ml satchet will be distributed across the country. This will be backed by one of P&G India's heaviest ad campaign in both electronic and print media.
Apart from harping on the anti-dandruff capabilities of the brand, the ads will be focused to lure consumers who have a recurring problem of dandruff and are dissatisfied with current remedies.
"Our research shows that one out of every three people are not satisfied with current anti-dandruff brands," says Vivek Bali, marketing director (beauty care).
P&G has already started airing ads, deviating from normal practice, hoping that consumers who see the ad will create demand at retail level.
The strategy for H&S then is very clear. Position it with twin-benefits, that of dandruff removal and great looking hair.
The current domestic shampoo market of 36,000 tonne is worth over Rs 350 crore. After growing at 30-35 per cent for the last two years, growth in 1997-98 has slowed down considerably. The rate in the first two months was only seven to eight per cent.
As per Procter's reasoning, demand here is strongly linked to market activity. P&G executives never tire of explaining that the 30-35 per cent growth was the direct result of three simultaneous brand launches in 1995-96. They were Organics from Hindustan Lever, Optima from Colgate and Pantene from P&G.
That way, the launch of H&S has been cleverly timed. Coming just after Lever's launch of low-priced Lux two months back, P&G hopes that this will spur Lever to spend more thereby reviving demand. Lever may react the way P&G wants, but whether it will really benefit the multinational, remains to be seen.
The Anglo-Dutch multinational with the launch of Surf Excel has shown that it can claw its way back when down and out. Launched just one year back, it has been grabbing market share forcing P&G to up-spending and launch new brands.
In shampoos also, Lever is likely to ferociously protect its turf, especially when a direct competitor to its lead brand, Clinic, has been launched. Adspends on Clinic have already been upped and discounts and freebies are likely to follow soon.
In the last one year alone Lever is learnt to have spent between Rs 50-70 crore in promoting its shampoo brands.
A repeat act may slow H&S growth.
One factor which could affect P&G's plans is the premium price of H&S. At Rs 97 per 200 ml, the brand is more expensive than its director competitor, Clinic All Clear, which retails at Rs 51 for 180 ml.
P&G executives explain the price is related to the value on offer. But in a slow growing market, premium pricing could deter consumers especially when they have a cheaper and well-known alternative available.