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Wednesday, January 6, 1999

Battle between Colgate-Palmolive, HLL hots up 

Namrata Singh  
Mumbai, Jan 5: It's another toothpaste battle between multinationals Colgate-Palmolive and Hindustan Lever (HLL). No, it is not something to do with the presence of the anti-bacterial agent "triclosan" in the toothpaste or how many times the respective products are better than the other. This time it is something cosmetic -- whose brand whitens more.

Colgate-Palmolive, which has shed its complacent attitude and become more aggressive with brands, has fired a new salvo by launching its international product "Colgate Sensational Whitening", a direct hit at Levers' Close-Up Renew Ultra Whitening. Both brands are meant for whitening the teeth.

Incidentally, a few weeks back HLL had intensified the advertising of Close-Up Renew Ultra Whitening. The move is now being seen by industry observers as one to combat the proposed launch of Colgate Sensational Whitening.

Further, even in terms of pricing, Colgate Sensational Whitening has been priced at par with Close-Up Renew Ultra Whitening. A 150 gm tube of the Colgate brand is priced at Rs 37.50, which is the same as the competitor brand from the Levers stable.

Colgate has gone a step ahead to introduce two other sizes of Sensational Whitening in 100 gm priced at Rs 27 and a 50 gm tube priced at Rs 15. According to retailers, while Close-Up Renew currently exists only in one size of 150 gm, the company is planning to introduce two other varieties in the sizes of 100 gm and 50 gm. It is believed that the price of the Close-Up product will be the same as that of Colgate Sensational Whitening. HLL had recently undertaken a price hike in Renew from the previous levels of Rs 35 for 150 gm.

Colgate Sensational Whitening is the third major new product which the company has introduced in the financial year 1998-99. After having launched Colgate Double Protection, which has already garnered a 4 per cent share in the Rs 1,000 crore market, and Colgate Total, Colgate Palmolive has rolled out Colgate Sensational Whitening in select cities including Mumbai. The product would eventually be launched nationally.

With the battle lines having been drawn in a new brand war, the advertising tactics for Colgate Sensational Whitening will be unleashed within two weeks, said sources.

Analysts, who are bullish on Colgate-Palmolive, have termed the recent moves by the company as "aggressive". While it was not believed that Colgate would launch a product like Sensational Whitening as it would be concentrating on its other main brands like Double Protection and Colgate Dental Cream, the company proved it otherwise.

Colgate's flagship brand Colgate Dental Cream had taken a beating in the last few years with the launch of HLL's Pepsodent brand. HLL, the number two player in the dental care market, has garnered a commendable 32 per cent market share. Colgate-Palmolive has a share of 56 per cent.

Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.


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