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Price Cuts Lift P&G’s Market Share

November 22, 2005

INDIA: Procter & Gamble’s (P&G) price cut strategy in India resulted in a jump in market shares in both detergents and shampoos, according to company executives. The company recorded a 45% growth in shampoos, with its value market share moving up from 16% in October 2003 to 20% in October 2004. Its market share in detergents also rose to 10% in October 2004, up 4% from the previous year. Competitor HLL held on to its value market share in detergents at 38% in October 2004, but its value share in shampoos dropped from 54% to 48%. Analysts said that P&G is clearly focused on its growth areas—detergents, shampoos and feminine hygiene products—and is prepared to sustain the price wars for the next year or so, given that the strategy is yielding positive results.
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