This creates a new popular price level in the Rs 500-crore coconut hair oilmarket which, speculate industry observers, could nudge HLL to launch acoconut hair oil at a similar level.

Oil of Malabar was acquired by Marico Industries -- the leader in the market-- last year, soon after rival HLL announced the acquisition of CocoCare hairoil.

The acquisition was crucial to HLL as it consolidated the multinational'smarket share position to 15 per cent with two "price warrior" brands in itskitty -- Nihar and CocoCare.

At the retail-end, Nihar is priced at a nine per cent discount to Marico'sflagship brand and leader Parachute Coconut Hair oil. By launching Oil ofMalabar at a 10 per cent discount to Nihar, Marico's move is clearly aimedto garnering volumes by fighting a price warrior brand through popularpricing. Nihar retails at a price of Rs 25 for a 200 ml bottle, while theprice of Parachute coconut hair oil is Rs 27.50. Marico's gameplan is tostrengthen its position through a second brand to fight competition throughpopular pricing, said a company source. The branded segment in the coconuthair oils market also fights a war against loose oils where the volumes arehuge, leaving immense scope for conversions. Pricing thus plays a key rolein converting loose oil users to branded.

Meanwhile, Marico's share has further strengthened to 56 per cent inDecember (ORG-MARG Urban data in volumes). In line with the company's planto grow the value-added coconut hair oils market, Marico has launchedall-India, Parachute Dandruff Solution Coconut Hair oil, which the companyclaims is "twice as effective" than most anti-dandruff shampoos. Thecompany's advertising strategy thus hinges around the "twice as effective"platform to promote the brand. The company says it has backed the claim withclinicals and "double-blind" studies conducted to prove the efficacy of theproduct in treating dandruff conditions. Parachute Dandruff Solution ispriced at Rs 19 for 75 ml and Rs 36 for 150 ml.

Says Marico Industries CEO (Nature Care division) Shreekant Gupte, on thelaunch: ``We want to continue dominating the coconut oil market and bringabout an aggressive fragmentation with value-added products.''