Classic clashes - washing powder warsThink of those classic sporting clashes between old rivals Springboks and All Blacks, Chiefs vs Pirates, or Nadal vs Djokovic. A battle between two old rivals almost as equal as each other, bitterly fought, won with sweat, blood and tears. Now translate that into the FMCG industry: over the next weeks and months South Africa is about to witness such a classic clash in the washing powder category. Procter & Gamble announced just a short while ago, that they are finally (finally because they have been rumoured to be doing it for 10 years) launching their washing powder "Ariel" in South Africa, in a hand-wash and machine-wash format. A formidable competitorP&G's Ariel will face up directly to Omo, a formidable competitor, an icon amongst South African brands, one of those brands that Saatchi terms love marks, those brands that enjoy undying brand loyalty and are very difficult to take on. Will the category grow?We also see retailers and wholesalers winning, as spends are dramatically increased in the battle for the shelf. However, will the category grow? In our opinion we might see a short-term drop in revenue as the temptation to discount will be high by each manufacturer to buy share, but in the mid to long-term we predict growth as increased consumer interest and spend is generated by such a sharp increase in activity in this category. About Michael WoodMichael Wood is co-founder and Director of Aperio, a business consulting company focused on accelerating growth of FMCG brands in South Africa and sub-Saharan Africa. Michael has many years international experience where he held the positions of Marketing Director, Sales Director and Managing Director with the Gillette company and Procter & Gamble.
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