To increase its market share in the detergents category, P&G has unveiled another variant of Ariel, called Ariel 24-hour Fresh.
The company holds the number-two spot in the Rs 8,800 crore detergent market, which is led by Hindustan Unilever.
P&G launched this product at national-level in the second half of November.
About the strategy behind this product, P&G spokesperson said: “We found that consumers not only want superior cleaning but also seek long lasting freshness on their clothes. We believe that Ariel 24 hour fresh with perfume beads is a proposition that will truly delight our consumers. We expect to be accordingly rewarded in the marketplace.”
Priced at Rs 135 per kg, the product is targeted at urban consumers with bigger wallet and specialised needs. It is also expensive than its other two variants, Spring Clean and Fresh Clean, which were priced at Rs 110 per kg.
These products compete with HUL’s Surf Excel Quick Wash priced at Rs 116 per kg. The company’s also compete in the mid-priced segment with brands Tide by P&G and Rin Advanced by HUL.
HUL leads the market with a share of 37 per cent against P&G’s share of 7.7 per cent. HUL has products in every price segment with brands Wheel, Rin Advanced and Surf Excel. The two companies have been in a price war but in the wake of rising input costs, their main focus now is to deliver higher margin products, said analysts.
Earlier this year, companies had increased the price of fabric care brands by 6 per cent. This hike had come along with an over all rise of 10 to15 per cent hike in prices across categories in the fast-moving consumer good space.
In response to escalating costs, HUL had also cut the pack size of its mid-priced product Surf Excel Blue from 1 kg to 850 grams and fixed the retail price at Rs 67.