HUL: Washing dirty linen in public - Views on News from Equitymaster

Helping You Build Wealth With Honest Research
Since 1996. Try Now

  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

HUL: Washing dirty linen in public

Mar 4, 2010

The gauntlet has been thrown and the challenger has been challenged. Market leader in detergents, HUL has taken the battle to the doorsteps of the challenger P&G. The point in contention being the recent advertisement campaign by HUL, openly pointing out that Rin washing power is superior in quality to P&G's Tide Naturals. While we have seen such campaigns in the past, what makes this one unique is that in this advertisement the comparison has been made directly with 'Tide Naturals'. The brand name has not been blurred out as traditionally done by advertisers while taking pot shots at competitors. Now it may be recalled that when P&G entered the Indian market, the company grabbed market share by under cutting HUL's products. What is interesting about this advertisement being aired is that HUL has brought to the notice of consumers that the packet of Rin washing powder is more expensive than a comparable pack of Tide Naturals but the quality of wash is much better.

While P&G has approached the court against this advertisement, HUL claims that it has aired this commercial only after testing the products in third party independent international laboratories. Furthermore, the company is airing this advertisement to educate consumer that the claims made by P&G are not correct.

While P&G plans to pay back HUL a similar coin, it has been revealed that Tide Naturals is infact devoid of natural contents. This has prompted the courts to direct P&G to modify the advertisement it is airing for Tide Natural.

What we believe
HUL has recently been facing intense competition with the loss of market share and margins in key categories. As a result we are seeing such aggressive advertisement campaigns by the company. While advertisements are supposed to inform consumers about the products, maligning competitors openly has never resulted in successful campaigns. This is because consumers do not take kindly to washing dirty linen in public. Furthermore, advertisement expense of this kind goes not towards developing and expanding the market but in fighting for the competitor's loyal customers. This can result in expensive incremental growth in market share. We believe that such a campaign can harm both the companies as it ends up showing both HUL and P&G in a negative light.

Equitymaster requests your view! Post a comment on "HUL: Washing dirty linen in public". Click here!

3 Responses to "HUL: Washing dirty linen in public"

Rosario DSouza

Mar 10, 2010

Such open wars on ads will only bring true facts before the consumers and we will come to know who really washes dirty linen better. Both are equipped with R&D wing to prove/disprove claims.



Mar 6, 2010

Let them fight if it is going to benefit consumer. Let them also reveal the ingredients of the product for better consumer knowledge and awareness


sourav majumder

Mar 5, 2010

The advertisement shown by HUL showing openly RIN is better than Tide Natural, never happened before. This malicious practice is disparaging and creates unhealthy atmospheare in the competition. This should be avoided.

Equitymaster requests your view! Post a comment on "HUL: Washing dirty linen in public". Click here!

More Views on News

What Happens if ITC Hives off ITC Infotech? (Views On News)

Nov 20, 2021

The cigarette to hotel conglomerate is reportedly mulling the demerger of its software business at a valuation of around Rs 250 bn.

What Sparked an 8% Rally in ITC Shares Today? (Views On News)

Sep 16, 2021

ITC did not participate in the rally after the second wave and continued to underperform its peers. Is this about to change?

HUL's Marketcap Tops Rs 6 Tn. Key Factors Driving the Stock (Views On News)

Aug 21, 2021

HUL became the fifth Indian company to achieve the milestone of a Rs 6-tn market capitalisation.

Adani Wilmar IPO to Hit the Market Soon. Should you Apply? (Views On News)

Nov 29, 2021

The parent company of the brand Fortune is set to raise Rs 45 bn from the market.

Key Points to Know Before Applying to Dodla Dairy's Public Issue (Views On News)

Jun 14, 2021

What you should know before applying to Dodla Dairy's IPO.

More Views on News

Most Popular

Growth vs Value Investing

It's time to rethink value versus growth debate and the way to play markets in the coming decade.

Tata Steel vs SAIL: Which Stock is Better? (Views On News)

Jan 13, 2022

With government initiatives set to boost the steel sector, find out who has a better chance of coming out on top.

These 5 Penny Stocks are Held by Rakesh Jhunjhunwala. Worth a Look? (Views On News)

Jan 18, 2022

Rakesh Jhunjhunwala is holding these penny stocks in his portfolio for several years now.

Tech Mahindra's CTC Acquisition: Too Expensive? (Views On News)

Jan 18, 2022

Tech Mahindra's acquisition of European IT-company fails to excite investors.

Time to Buy Energy Stocks (Fast Profits Daily)

Jan 14, 2022

Energy is a sector that looks set to take off. It's time to get in.


Become A Smarter Investor
In Just 5 Minutes

Multibagger Stock Guide 2022
Get our special report Multibagger Stocks Guide (2022 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Jan 25, 2022 (Close)