The affordability aspect of sachet marketing can be either in terms of lower price point e. Every Brand has tried it.
Since little empirical research has been carried out involving sachet marketing, we draw insights from extant studies on packaging. Sachet packaging market in Americas The growth in the sachet packaging market in the Americas can be attributed to the maturity of the market with highly established players.
Sachet revolution in india
Thus sachet marketing strategy is not just for the BOP market, and the existence of an economic underclass is not the only prerequisite for the successful deployment of this strategy. Such initiatives will lead to an increase in financial capability, hence affordability for the middle and bottom of the pyramid and also fuel growth in market size in most product categories of mass consumption, through successful sachet marketing strategies. Rs is not exactly what marketers had in mind but beyond this would be a stretch and could jeopardise market shares in case of dramatic changes in pricing. Micro-financing institutions are adopted versions of sachet marketing as they are making huge profits by providing micro-loans to the rural population to set up their own enterprises. Theoretical framework The two main sources of economy for sachet marketing have been considered to be typically technological innovations in packaging design Ramirez and distribution efficiency Santos Four of the ten functions that he cites are directly served through sachet sizing: 1 to provide consumer convenience, 2 to contain prices, 3 to promote hygiene and safety, and 4 to be the source of innovation. Ever since large companies have realised the multiple gains from cutting the supply chain inefficiencies, several of them, both Indian and MNCs have started to build business relationships directly with the farmers. International brands, variety in both format and size, wider availability, affordable pricing, convenient packaging, and multifunctionality have attracted the growing middle-class population of India and China to invest in personal care products. An interesting conclusion from this study is that large pack size itself does not increase usage volume, but rather it induces lower perceived unit costs as a result of which usage goes up. Our new theoretical framework, grounded in the relevant literature, is also coherent with the recent business practices. Suddenly Maggi Packs started getting ligher — gms went down to 75 gm over 3 iterations [Price Remained the same], Britannia Biscuit Packs started giving 1 less biscuit followed by another , Shampoo Packs started having 6 ml, 5ml instead of the earlier 10 ml, 8 ml pouches, coca cola became ml Rs 8.
The convenience and affordability of these smaller products have made them consumer friendly. Many manufacturers now find it cheaper to pack their coffee, shampoo, or liquid soap in a strip of single-use sachets than in a plastic or glass bottle, and their selling prices reflect this change in their cost structures.
The strategy of miniaturization provides an easy inroad to the BOP for companies wary of the perceived risks and uncertainties of entering this new market.
For some, this will inhibit otherwise valuable innovation. Sachet marketing is also described as the practice of thinking small, but in large volumes Trendwatchers How they go about phasing out their lower end of product bouquet will determine who will gain faster.
based on 29 review