The Laundry war gets dirty – P&G vs. HUL

Have you seen the latest Rin ad by HUL, they have claimed that Rin is better than Tide Naturals in the sense that it fights dirt better.

http://economictimes.indiatimes.com/Advertising/Rin-washes-rivalry-linen-with-Tide-in-public-through-new-TV-ad/articleshow/5629626.cms

http://timesofindia.indiatimes.com/biz/india-business/Ad-part-of-battle-over-market-share/articleshow/5631730.cms

They have taken an aggressive stance by explicitly taking the name of Tide Naturals in the Ad (and showing Tide Natural Rs20 pack), it is a brave move and could prove to be risky if P&G decides to fight it out in court. Some things are noteworthy in this campaign

· The campaign is run very frequently as you notice this Ad every next minute, it is obvious as HUL is not sure how soon they would be forced to stop airing the Ad if P&G moves to the court, so if damage has to be done, it has to be done quickly
· The Ad launch was timed perfectly with a long weekend coupled with Holi, when people are searching in the cupboard for clothes that they can wear on Holi and are worried that their new clothes should not get dirty anyhow in holi celebrations
· The long weekend also ensures that the Ad gets a breathing time as it will make it difficult for P&G to respond in a quick manner, the decision taking will take more time
· The product compared is Tide Naturals and not normal Tide and a third party Laboratory validation is quoted with an * mark
· The Ad capitalise on “Chauk Gaye” phrase which is synonymous with Tide campaigns and ends with “Aunty chauk kyon gayee”

Surprisingly but cleverly HUL has moved to the court and challenged the use of ‘Naturals’ word by Tide, clearly with a two pronged attack on Tide. Well if you have little idea about the detergent market, HUL has been losing its market share to Tide for a long time and I think it has tried too hard to sustain its market share but whether this new all offensive attack on Tide Naturals will help HUL get back its market share? Time will only tell, but lets see what is P&G options now, how should it counter this attack

1. Move to the court, get a stay on the Ad asap, as it is hitting the brand equity of Tide
2. Launch a counter offensive by doing the laboratory test again and disproving the results otherwise
3. Reinforce the Tide brand by some sales promotions or point of sales events, PR, emphasising the cleaning action of Tide
4. Take the war to a whole new level and include Ariel and Surf Excel, attack stronghold of HUL’s other brands and get even

However, a smarter way would be to tell the consumers that by launching this Ad HUL has inadvertently accepted that Tide is the leader in the category and therefore they are forced to compare their product with Tide and not any other brand, so the customers should realise that Tide is already no1 and every other brand is just comparing itself to Tide and looking to match the brand promise this way or the other. Whatever, P&G’s response will be, I am looking forward to watch the detergent war getting dirtier, lets us see how the brand managers of two prestigious FMCG companies fight it out.