18-04-2012, 12:02 PM
Consumer Diversity
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Consumer Diversity
India’s economic diversity matches its social diversity
Class is difficult to define in India
Incomes alone don’t define the class
Purchase behaviour is related to cultural conditioning, location, source of income, education and occupation
The salaried prefer the finance packages but the rural rich relying on agriculture make cash purchases
Small is Big
For customers, small packs mean
Affordably priced products
Less investment
Reduced risk of buying
And for companies, it translates into
Large volumes
Helps address diverse customer segment
Attracts non-users
Single-serve packs are expected to find more prominence in low penetration categories like health food, baby products and more
Sachets: The Next Big (Small) Thing
Mass market phenomenon
50 paise and Rs 1 are entry level
Sachets are well ensconced in few categories and the trend will a rising one
Increase category penetration of, which extends their appeal beyond just the lower end of the market
Work better with single-use categories with a low frequency of purchase
According to Kakkar, the market is polarised between the LPU consumers and those who prefer bottles
Small Packs
Shampoo of Rs.1000 crore category
80%t of sales of shampoos from 50 paise and Re 1 pack
CavinKare’s Chik shampoo prices at 50 paise for 8 ml
Fairness cream of Rs. 900 crore category
Sell almost 40% through sachets
Sachet of 9 gram of fairness cream costs Rs 5 and if you need 3 such packs translates 27grams for Rs 15. You also have a choice of buying a pack of 25 grams for Rs 28
Conclusion
Small is smart
Small is future
Small is for penetration and growth