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The document summarizes the price war between Hindustan Unilever (HUL) and Procter & Gamble (P&G) in the detergent market in India with their brands Rin and Tide respectively. It describes how P&G launched a new version of Tide at a lower price than Rin, increasing competitive intensity. In response, HUL aggressively cut prices of Rin and changed its formulation. This led to a series of legal cases between the two companies regarding their comparative advertising claims in the Calcutta and Madras High Courts.

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Aravind Bandaru
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44 views2 pages

C C !" #$%# C& ' (C) ' ( (C& #$% ' (

The document summarizes the price war between Hindustan Unilever (HUL) and Procter & Gamble (P&G) in the detergent market in India with their brands Rin and Tide respectively. It describes how P&G launched a new version of Tide at a lower price than Rin, increasing competitive intensity. In response, HUL aggressively cut prices of Rin and changed its formulation. This led to a series of legal cases between the two companies regarding their comparative advertising claims in the Calcutta and Madras High Courts.

Uploaded by

Aravind Bandaru
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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The War Begins:

The War Begins Initially Tide was trailing behind Rin but since 2007, sales picked up, and its market share rose posing a threat to HUL whose share started eroding. In December 2009, P&G Home Products introduced Tide Natural, a new version of Tide, at a price lower than HULs Rin brand targeted at the rural segment. Competitive intensity had increased after the launch of Tide Naturals by P&G in the mass segment. HUL had responded with aggressive price cuts in Rin and a formulation change and thus the war begins .

Price Wars:
The combat fall in shares,this jan hul did drop prices of rin powder (1kg) from 70 to 50 .in its latest price cut is being displayed (rs 25 for 500 grms) for the rin pack while the tide pack is pegged at 20 for 400 grms there are also some promotion offer packs with tide. According to nielson company in the month of jan 2009 the value share of the tide is (8.8 percent )and almost double that of rin 4.8 percent in its value share. Tv ad campaign The Ad Campaign Rin launched a commercial in 2010 comparing Rin and Tide naturals. the ad Thus claiming better whiteness than tide naturals at an affordable price.

Case 1 in Calcutta high court P&G has filed a case in the Calcutta High Court against Hindustan Unilever's new ad campaign, which openly claims the superiority of its product Rin over P&G's Tide.

HUL's new Rin campaign, which started over last weekend when the courts were closed, claims that Rin provides more brightness in comparison to Tide Naturals.
Judgment

order restraining Hindustan Unilever (HUL) from airing its commercial for Rin, the washing soap/powder brand. HUL was given 72 hours to comply.
Case 2 in madras court aginst p& g HUL filed a suit in Madras Court against P & G about their ad, which says Tide Naturals promises great cleaning while keeping your hands soft, because it has the goodness and freshness like that of

lemon and sandalwood, while P & G failed to prove the same, when challenged by HUL.
Result: March 1, 2010 Madras High court given P & G 72 hours to modify its advertisement saying this does not contain lemon and chandan.

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