Haircare giants Procter & Gamble and L’Oréal are launching guerrilla marketing tactics to knock rival Elida Fabergé’s relaunch of its Organics shampoo and hair conditioner brand off course.
Organics is being relaunched this week with a 20m advertising budget to push its new formula and give it a significant edge against the brand leader, P&G’s Pantene.
As part of the relaunch Elida is cutting the price of Organics by one third – from 1.99 to 1.29 for 200ml in most multiple retailers for four weeks from next week. The price cut has also featured in promotions in Superdrug and Tesco this week.
But both P&G and L’Oréal, which makes the rival Elvive range, are understood to have matched the price cuts. This could significantly dent the impact of the Organics price offer.
Organics has value share of eight per cent and six per cent of the shampoo and hair conditioner market respectively, compared with Pantene’s 18 per cent and 20 per cent. Elida is planning to increase its shampoo share to about 13 per cent with the relaunch.
P&G and L’Oréal would not comment.