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Advertising blitzkrieg to support P&G's low-priced Ariel & Tide

03-March-2004
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Advertising blitzkrieg to support P&G's low-priced Ariel & Tide

The Women's Day goodies seem to be far from over, as detergent major Proctor & Gamble (P&G) sets out on a price-cut drive - helping more women enjoy the magic of cleaning. P&G has slashed the costs of large packs of detergent brands, Ariel and Tide, by 20 to 50 per cent. The group is on an extensive media campaign to highlight the slump and coming up with advertisements emphasising the new competitive pricing.

This move comes as the second price-cut drive in the last six months. In September 2003, P&G slashed the prices of detergent in sachet by a whopping 50 per cent- bringing it down to Re 1. And, the move proved to be a success.

Convinced by an impressive growth in sales volume of sachets that constitute only 15 to 20 per cent of the detergent industry, the company decided to scale down prices of bigger packs to drive volumes. The cost of the half-a-kg pack of Ariel has been slashed from Rs 70 to Rs 50, while a same-sized pack of Tide is down from Rs 43 to Rs 23. Prices of higher quantity Ariel packs of 1 kg and 1.5 kg have been fixed at Rs 99 and Rs 145 respectively, while the 2-kg pack of Tide is now only Rs 88.

With the new-priced Ariel and Tide, more and more people will experience the magic of 'surprising whiteness' and 'superior stain removal' within their reach. "There has been overwhelming consumer demand for superior quality detergents at affordable prices," said Chester Twigg, Director (Marketing & Sales), P&G India. "By achieving internal efficiencies in our distribution, manufacturing and raw material cost, coupled with the economies of scale coming from sachet price reduction, we have been able to offer consumers superior cleaning with Tide at just Rs 23 and with Ariel at just Rs 50 for a complete one month's laundry," he explained.

The final go ahead with the price correction came after an extensive consumer research, conducted by the company. "This significant price reduction is based on the feedback from our teams visiting 25,000 consumers across six cities, observing laundry sessions in their homes, and speaking to them on their needs," said Twigg, refusing to comment on the market grapevine on a possible price-cut from rival HLL.

With an aggressive move towards volume gain, P&G is sparing no effort to advertise the price cut. Five TV commercials have been developed to highlight the brand proposition and new prices. The brand has also roped in small screen celebrities like Smriti Iraani (Tulsi) and Apara Mehta (Savita) of 'Kyunki Saas Bhi Kabhi Bahu Thi' fame to formally unveil the new packs. When contacted, Iraani said: "Detergents of such superior quality are invaluable for a busy professional like me as they require very little time on laundry and help me save more quality time to spend with my family. I'm happy that Ariel and Tide are now within the reach of lots more women in India."

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