 "HUL joins cross-promotion bandwagon")
When it comes to advertising campaigns, Hindustan Unilever (HUL), India’s largest consumer goods company, never hesitates from taking on rivals by openly naming them or comparing itself with them in commercials across media. But in a rare association, the company has taken the help of leading washing machine makers to promote its Surf Excel Matic detergent powder, putting the spotlight firmly on FMCG (fast-moving consumer goods) cross-promotions.
In a front-page ad in a leading newspaper last week, HUL prominently displayed brand names like Videocon, Panasonic, Godrej, Kelvinator, Bosch, Siemens, Electrolux and IFB to drive home the message that these white goods makers recommended its detergent powder for use in their machines. The headline read: ‘Leading Washing Machine Manufacturers Recommend Surf Excel Matic For Tough Stain Removal’.
A little earlier, arch-rival Procter & Gamble (P&G) had in a television commercial used a similar route to promote its Ariel detergent powder, LG recommended use of the power in its washing machines. Market sources had then said P&G had a tie-up with LG, across many markets, and that the two were promoting each other aggressively in these regions.
Meanwhile, Colgate was pushing L’Oreal shampoo sachets in a promotional offer for its Colgate Total toothpaste in shops. A 140g pack of the toothpaste gave consumers three L’Oreal Total Repair 5 shampoo sachets for free. When contacted, Colgate did not indicate whether it would do something like that for other products in its portfolio.
But market experts say it is rare for one FMCG company to push the product(s) of another, though bundled offers are not uncommon in the consumer industry. Consumer durable and electronic companies routinely use this route to improve sales of their products. For example, on buying a television set with a set-top box, the company dealer or retailer could bundle as bonus a direct-to-home connection from a rival company. Besides, on purchasing a laptop of one company a consumer often gets a dongle (for internet connection) of another company.
FMCG players, in contrast, so far stayed out of bundled promotions, since pushing rivals’ brands was something they usually desisted from. That mindset, however, seems to be changing now.