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International Hindustan Lever to phase out some shampoo brands

Hindustan Lever to phase out some shampoo brands

Author | NULL | Monday, Jan 01,1900 10:02 AM

Hindustan Lever to phase out some shampoo brands

HLL is planning to phase out of brands like Organics shampoo and relaunch of brands like Clinic Plus, Clinic All Clear, Lux shampoo and Nihar coconut oil.

This comes at a time when personal products, accounting for about 18 per cent of the company total turnover (Rs 10,412 crore) has not been doing too well for the last three quarters.

The ORG-Marg figures for the last three-quarters for HLL (including Ponds and Lakme) in shampoos shows that market shares have been declining. While it enjoyed a 67 per cent market share in Jan-March 2000, it came down to 66 per cent in April-June 2000 and was at 64 per cent in July-Sept 2000. It has been facing competition from smaller brands like Chik and Nyle from Chennai based CavinKare, which is seen to be fast gaining momentum.

The company is in the process of phasing out the Organics brand that was launched five years ago as a super-premium brand.

Meanwhile, HLL is relaunching the other shampoo brands in its portfolio by introducing smaller packs and improved product formulation. For Clinic Plus (Rs 360 crore) which currently holds a 31 per cent share in the total shampoo market, it is being introduced in 50 paise sachets (4 ml).

For Lux shampoo, the company is introducing new packs of 50 ml bottle (Rs 6) and Re 1 sachet (4 ml). At present it has a market share of 4.8 per cent. The company expects to reach double digit numbers by the year end. The company has roped in Urmila Matondkar to feature in the new communications for Lux shampoo. At present, the Lux shampoo is an Rs 35 crore brand.

Clinic All Clear, a Rs 12 crore brand is also getting a facelift in terms of the communication and product formulation.

For Nihar coconut oil, the company has already established rural leadership. According to ORG-Marg figures for market share in rural areas for 0ct 2000, Nihar is at 25 per cent as compared to Parachute at 24 per cent.

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