INDIA: P&G eyes mid-range market with Rejoice

Rejoice is the No.1 shampoo brand in Asia, marketed in China, Japan, Singapore, Thailand, the Philippines, Hong Kong, Indonesia, Malaysia and Vietnam.

P&G's other two shampoo offerings in India are both premium priced, with Head & Shoulders retailing at Rs 64 (about US$1.5) and Pantene at Rs 61 for a 100ml pack.

Rejoice, in contrast, will be priced at Rs 39 for 100 ml, while Clinic Plus is priced at Rs 37.5 per 100 ml bottle. According to P&G, the brand proposition is smooth, detangled hair which is easy to comb, and the "fantastic performance-value equation", said a Procter & Gamble spokesperson.

Pre-launch research conducted by market research agency ACNielsen-ORG Marg showed that a top unmet need among Indian consumers, who tend to have longer hair, is a product that helps to detangle hair.

Rejoice will also be available in a 7.5 ml sachet pack priced at Rs 2.

Sachets of similar size make up more than 60 per cent of the total volume of shampoo sold in India, where shampoo is often used only on special occasions.

P&G is rolling the brand out nationally, but will be focusing on one of three different variants (Complete, Silky Clean and Rich) in each geographic region of India. "Rejoice's low-conditioning Silky Clean variant is specially suited for heavy-oiling consumers in south and east India; while the Rich variant is more suited for dry climatic conditions of north India," said P&G's spokesperson.

The brand will be rolled out in rural areas as well as in the top urban markets. "Given its attractive price point, its appeal is bound to be broad," said the spokesperson.

The advertising for the new brand will be handled by Leo Burnett India.

P&G would not disclose the planned level of expenditure; the company said that it would include mass-media advertising as well as a house-to-house sampling exercise that will cover 1.5 million households, in addition to point-of-sale merchandising and incentive schemes for retailers.

It has been years since a new P&G brand has entered India - the last major launch was Tide in 2000, and its last shampoo launch was Head & Shoulders in 1997. In the interim period, P&G was said to have "de-emphasised" the Indian market but, in line with a global focus on providing a better value-for-money proposition, the India operation is gearing up. "India is a very important market for P&G both in terms of business and in terms of quality of people it contributes to the P&G family," said the company spokesperson.

HLL is the leading player in the Indian shampoo market, with a 54 per cent share between the Clinic and Sunsilk brands. P&G has a 15 per cent share according to the ACNielsen retail audit, and the second largest brand is Chik from CavinKare.