P&G slashes Pantene prices to push volumes

Procter & Gamble (P&G) India, the local arm of Cincinnati-based Procter & Gamble, has slashed the price of its Pantene shampoo brand. It has reduced the prices of Pantene by 16 per cent to Rs 51 for 100 ml and Rs 98 for 200 ml bottles, in a move to garner volumes.

The company also launched Pantene hair fall control, claiming that it will reduce hair fall owing to breakage by up to 50 per cent within two months of usage.

However on the other two brands""Head & Shoulders and Rejoice, P&G has not undertaken any price reduction.

Rival Hindustan Lever also has a variant under the Sunsilk brand highlighting the benefit of reduced hair fall due to breakage.

The company had launched Sunsilk Silky Strength for dry hair in 2001. Six months back, it relaunched the variant as Sunsilk Naturals Silky Strength.

A fortnight ago, Hindustan Lever had announced a promotional offer of a free bottle with every bottle of Sunsilk and Clinic Plus. In other words, it resorted to a 50 per cent price cut.

Hindustan Lever will firm up its pricing strategy for its shampoo brands after evaluating the sucess of its promotional offer. not reduced the Procter & Gamble imports all its shampoo brands from Thailand. The current import duty is at 20 per cent and a countervailing duty of 16 per cent.

Hindustan Lever is the market leader and commands a share of over 50 per cet in the shampoo market.

Sunsilk has a share of 15 per cent and Clinic Plus has a market share of 25 per cent. The shampoo business of P&G has a market share of over 15 per cent.