MUMBAI, Sept 20: In the race for leadership in the compact detergents market which experienced renewed activity in 1996, Hindustan Lever's International Surf Excel leads ahead of Procter & Gamble's Ariel compact, in the national and regional markets.According to an ORG data on compact detergents of July 1998, International Surf Excel has garnered a 57 per cent market share while Ariel has picked up the balance 43 per cent.
Compact detergents forms a small proportion (around 2-3 per cent) of the total Rs 3,500 crore detergents market. The compact detergents market is thus valued roughly at Rs 100 crore today.
In the total detergents market, International Surf Excel has a share of 11.5 per cent with Ariel not very far behind at 8.6 per cent. Regionwise, International Surf Excel leads in each of the regions.
For instance, in the compact segment (northern region) Surf has a market share of 60 per cent. It leads in the other markets in the concentrates as well, with a market share of 55 per cent in thesouth, 59 per cent in the east and 56 per cent in the west.
P&G launched an onslaught with Ariel in the early 90s, which was later uprgaded to Ariel with Microshine which was launched at the end of 1996 and early 1997. Preceding the move, HLL had launched International Surf Excel in April 1996, which replaced Surf Ultra. While the concentrates detergents market originated in the early 90s, this segment experienced heightened activity during 1996-97.
With Ariel being one of the key brands identified by the US-multinational P&G for the Indian market, the launch was backed by a huge investment in advertising and promotion. The two rivals have since been on a marketing war, be it involving endorsements by leading textile companies or plain consumer challenges claiming superiority over others.
The compact detergents market is growing at a steady pace of around 10 per cent per annum. Significantly, since a small amount of the product is giving much better performance, there is reduced load on theenvironment.
``This segment (compact detergent) brings maximum consumption benefits. As far as P&G is concerned, we believe that growth of the compact segment is important to us and it is here that P&G has the clear edge in technology. In the compact concentrate our endeavour is to deliver breakthrough technology products that meets consumer needs,'' said a P&G spokesperson.
With the detergent market undergoing a slowdown and growth in terms of volumes is stagnating, companies have upgraded their brands and the future growth will come from the premium segment (concentrates) of the market, say analysts.
To acutely focus on the compact detergents segment, Procter & Gamble recently launched new Ariel Hi Power compact. Industry observers say that P&G's move is aimed at renewing charge at attaining leadership position in the compact segment in which HLL has paced ahead to take the lead.
Initially, the two brands were running a neck-and-neck race on the back of aggressive marketing and advertisinggimmicks.
The price of the new Ariel compact is Rs 125 for one kg tub pack and Rs 65 for a half kg pack. International Surf Excel is also priced on par with Ariel compact.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.