Dabur takes on the Parachute oil of Marico in print advertisement.
“Dabur Anmol Gold Coconut Oil currently at far greater value than Parachute Coconut Oil,” read an advertisement published on the cover of a big national daily on Saturday.
Dabur’s move to consciously advertise a number of its key brands comes at a time when firms are doing more to conserve their turf and enlarge market share within an environment where consumers aren’t spending freely.
In addition, both companies, which compete in India’s enormous hair oils market have been at loggerheads over the past couple of years over some of their key brands that compete on retail shelves.
Last year, Dabur, that sells Vatika, Amla, and Anmol brand of hair oils took Marico to the Delhi High Court for signature breach, according to a news report in The Economic Times newspaper. Marico had published ad campaigns comparing its Nihar Shanti Amla Oil with Dabur’s Amla oil, prompting Dabur to take Marico to court.
The thing is sub-judice.
In addition, she added, the advertisement should not discredit or denigrate competitor merchandise.
“The prior matter is sub judice and we will await the decision of this court. If there is a disparagement of any of our goods, we reserve the right to take suitable action against competition,” a Marico spokesperson said.
Companies have already been rejigging their advertising and promotional spends in a bid to lure shoppers to purchase more of additives, oils, and shampoos at a time when weak consumer demand has hit sales of fast moving consumer products.
“Promotions work better at a slowdown at which the competitive intensity is high as the entire marketplace is fighting for a restricted share of wallet of their customer. In this kind of situation, the trade has to be lubricated better to drive on stocks in the marketplace.
The country oils market is dominated by the Parachute of marico. The brand also has been amid a consumer environment that is subdued. For the September quarter, volume growth of rigids oils declined by 1 percent.