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HLL banking on lower price to spur sales of toothpaste

11-October-2002
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HLL banking on lower price to spur sales of toothpaste

Hindustan Lever Limited (HLL) is banking on lower price points to spur sales and penetration in the stagnating Rs 2,000-crore toothpaste market. In a strategic decision, the company has henceforth decided to push aggressively its lowest price point in the oral care category—a 40-gm Pepsodent toothpaste pack priced at Rs 10. Interestingly, the Rs 10 price point introduced late last year was initially targeted at the rural market. HLL, however, has now decided to scale it up through widespread distribution. Pepsodent is currently available in three SKUs—200gm (Rs 60); 100gm (Rs 30) and 40 gm (Rs 10).

So far, the only low price point in the oral care category by HLL has been its toothpaste brand Aim which was launched about two years ago specifically for the rural market. Priced at less than Rs 10 and riding high on its innovative packaging, the brand was, however, phased out in a year’s time as part of HLL’s brand rationalisation exercise.

HLL oral care currently commands, as per ORG-value shares, an overall market share of 34.9 per cent in the toothpaste market with its range of toothpastes under the Close Up and Pepsodent brands. Pepsodent has gained market share from 16.4 per cent last year to 17.3 per cent in

Toothpaste penetration in the country is at 50 per cent, while it has touched a high of 80 per cent in the urban sector, it stands at 40 per cent in the rural segment.

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