The local subsidiary of the US-based multinational is evaluating the prospects of setting up an alternate distribution system for the brands.

Old Spice is a range of mens' toiletries, while Clearasil is a specialised skin cream for treatment of pimples and acne. The company has said consequent to its decision to focus its resources on Whisper and Vicks, which offer high growth opportunity, Old Spice, Clearasil and Mediker might have to enjoy limited resources.

With Mediker having already been put on the block, as it did not fit the company's focus profile, analysts are surmising whether Old Spice and Clearasil will go the same way.

The company, however, said to give the brands increased attention, Procter & Gamble was planning to set up an alternate distribution system. This way, while the company will continue to market and sell these products, they will be distributed by one or more national distributors.

The board of Procter & Gamble India has also proposed to change the company's name to Procter & Gamble Hygiene and Health Care, in keeping with its objective of focussing on its core categories--feminine hygiene and health-care.

Sales of health-care products, under the Vicks range, grew 16 per cent last year. In the feminine-hygiene segment, Whisper registered a 6 per cent growth in sales during the year. Whisper as also Vicks are leaders in their respective categories.

The company has said while the feminine-hygiene category continues to deliver unsurpassed value to consumers, there is a need to be alert to challenges the category faces from low-priced products recently introduced in the market.

The company is also concerned about the slow pace at which the category is growing. It is, thus, investing heavily in this segment to bring about innovative cutting-edge technology products to satisfy consumers' needs.

The company's plan to focus on Whisper and Vicks means a constraint on resources directed towards brands--Clearasil and Old Spice.

Procter & Gamble functions through three companies in the country: Procter & Gamble India (which is being changed to Procter & Gamble Hygiene and Health Care), P&G Home Products (which handles Ariel, Pantene, Head & Shoulders and Pampers) and P&G Distribution Co (which handles Camay soap). While P&G Home Products is a wholly-owned subsidiary of the US company, the parent holds 65 per cent in P&G India.

It is understood that while P&G Hygiene and Health Care will deal with products like Whisper and Vicks, products belonging to categories other than healthcare and hygiene will be brought in through the wholly-owned subsidiary.

New Ariel launch in the offing

Procter & Gamble is launching new Ariel Hi-Power compact, which, retailers say, is a replacement of Ariel with Microshine. The new name will stress on the fact that Ariel is a premium compact-detergent brand. The brand competes with Hindustan Lever's International Surf Excel. Ariel compact is priced at Rs 125 for 1 kg tub-pack.

Ariel with Microshine was launched with the USP that its ingredients prevented "bobbling" of clothes. The same properties exist in the new product which comes in three sizes--200gm priced at Rs 28, 500gm pack at Rs 65 and 1 kg tub pack. The detergent also comes in a 20gm sachet priced at Rs 3. Ariel was introduced in the country in the early '90s as Ariel Microsystem.