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.
