It’s revenge time for Hindustan Lever Ltd (HLL). The company has declared war in the shampoo market, by adopting the BOGOF (buy one, get one free) strategy to counter rival Procter & Gamble’s (P&G) move.
The BOGOF scheme has been launched on HLL’s two leading shampoo brands - Sunsilk and Clinic Plus. P&G had taken HLL offguard by slashing detergent prices by 25-50 per cent two weeks back. The battle between the two rivals has now shifted from detergents to shampoos.
P&G, between its two shampoo brands Pantene and Head & Shoulders, has a 14 per cent share in the shampoo market, which is a key business for the company in India. It’s not clear at this stage whether P&G will follow suit, but when contacted, a P&G spokesperson said: "At P&G, we are focused on offering quality products to the consumer versus focusing on competition."
P&G, recently, had launched Rejoice shampoo targeted at the middle-end of the market, and in direct competition to HLL’s Clinic Plus shampoo. Industry analysts feel that HLL’s BOGOF offer may be aimed at destabilising Rejoice.
HLL is the market leader with an over 50 per cent share of the shampoo market. Sunsilk is priced at Rs 55 (125 ml), Rs 100 (250 ml) and Rs 150 (400 ml), while Clinic Plus is priced at Rs 37.50 (100 ml), Rs 70 (200 ml) and Rs 117 (300 ml). While Head & Shoulders is priced at Rs 64 for a 100 ml bottle, Pantene is priced at Rs 61, and Rejoice at Rs 39.