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Friday, September 18, 2009

Small SKU's are again the darling of the consumers..The Magic Price point -SMALL is buyable

Good day biscuit - Rs 5/- ;Nestea at Rs 2/-; Lux at Rs 10/-; pepsico has started advertsising its Kurkure in packs of Rs 3/- and Rs 5/-

The escalating prices have forced the consumers to lap the low ..CONVENIENTLY priced small vol units . Companies like HUL,ITC,Frito lays ,Britannia are all encouraging the same .Last year claim the companies the small SKU's contributed around 25/30% of their sales.

Cigarette companies/confectionary companies /haircare companies have all been working on convenient price points for a long time . It helps substitute for - change which is not available / it helps dispose of unnecesary Rs 2/, Rs 5/, Rs 1 coins ...it helps define the price points for the companies .Earlier when 10p/20p/50 p was available the pricing of cigarettes/toffees/chewing gum was such .Later on with the shortage of coins it started moving towards the most conveniently available coin.

However nowadays affordability /accessability alongwith

-the inflationary pressures on prices of products
-the choice /options/variants available
-the reduced shelf space to stock
-the reduced space to merchandise
-abundant distribution

all of it makes a small conveniently priced product a good option for generating trails /repeat purchase and the acceptability of a consumer to stock multiple variants.



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