The Hindu Business Line : HLL to launch new Close Up variant to combat Colgate

Reacting to Colgate Palmolive's latest offering, Colgate Max Fresh Gel, HLL has decided to increase the number of gel variants under its Close Up brand.

Having restricted the number of variants in the past, Close Up now has another variant — Close Up Milk Calcium Nutrient with a new "centre-filled" gel. Mr Sanjiv Kakkar, Vice-President, Oral & Hair Care, HLL, said, "There is renewed action from both the players in the gel category. Our new Close Up variant has a completely different technology as there is a new centre-filling." Its present blue coloured variant is based on milk calcium.

New strategy

In fact in 2004, while Close Up was being re-launched, HLL had taken a conscious strategy to restrict the number of its variants since it realised that creating more variants for a sensorial brand was not going to work.

At that point Mr Kakkar had said, "We have decided to clean out Close Up variants and continue with only Lemon Mint. Our experience has shown us that variants have not been sustainable with disproportionate shares compared to the huge media spends required to support them."

But now with heightened competition from the market leader Colgate, with its new offering Maxi Fresh with Saif Ali Khan featuring in its latest campaign, HLL has decided to revive its strategy. Meanwhile, Colgate is also bringing in new technology as well. Colgate Maxi Fresh claims to be "the first and only toothpaste infused with cooling crystals that dissolve in the mouth completely upon brushing to release an intense rush of breath freshening power".

The cooling crystals are available in two flavours - Spicy Fresh and Peppermint Ice.

Hopes for better share

According to Mr Kakkar, "The oral care category is growing at low single digit between 3 and 5 per cent. The challenge for the players is to inspire some growth into the category." At the same time, HLL hopes to gain additional market share for Close Up through its new variant. Close Up at present has a 15 per cent share in the oral care category. Being a global brand, recently Unilever has aligned the brand to Lowe worldwide and in India the brand is at present in transition from its erstwhile agency, O&M, to Lowe.

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