Anu N’s Post

Why Dove, a Premium Soap, Thrives in One of India’s Poorest Regions: A Case Study in Consumer Behavior and Strategy 🧼 It might seem counterintuitive, but Dove, one of India’s most expensive soap brands, is thriving in a state known for its economic challenges. How is this possible? 📊 Understanding the Consumer: In economics, there’s a concept called binary spending—"Those with money are thrifty, those without splurge." Middle-class consumers spread their spending across many categories (shoes, books, ice cream), leaving less room for premium products in each category. However, lower-income consumers tend to focus on fewer categories and opt for the best available product in those areas. This is why, despite limited disposable income, many in this region choose Dove as their premium personal care product. Rather than spending on multiple items, they prioritize quality in select categories. 🛍 Unilever’s Strategy: Unilever has tapped into this behavior with several smart moves: Affordable Luxury: By offering smaller pack sizes (sachets, small bars), they’ve made Dove accessible to a broader audience, even in rural areas. Brand Positioning: Dove is marketed as a moisturizing, skin-friendly brand—a strong appeal in regions where consumers are conscious of skin health due to harsh climatic conditions. Distribution Mastery: Unilever’s extensive distribution network ensures that Dove reaches even the most remote areas, maximizing availability. 💡 Key Takeaway for Marketers: Never make assumptions about where your premium products will succeed. Test your product across various income segments. Sometimes, your biggest opportunity lies where you least expect it. #ConsumerInsights #Marketing #UnileverStrategy #Branding #BusinessGrowth #FMCG #India

As consumer preferences grow more selective, #FMCG companies are shifting focus toward “#designing for #India,” #investing in products that cater to varied local tastes and preferences. https://lnkd.in/gaZd-yiS

The ₹5 Strategy: Reaching India's Price-Sensitive Market In India, affordable, ₹5-priced products have become a powerful tool for brands aiming to reach a vast, price-conscious audience. This low-cost strategy encourages impulse buying, frequent purchases, and brand loyalty, especially in rural and semi-urban areas where affordability is key. Key Product Examples: Snacks and Confectionery: Parle-G biscuits, Lay’s chips, and Cadbury Dairy Milk Shots offer affordable treats that are widely popular. Personal Care: Clinic Plus shampoo sachets and Lifebuoy soap bars make essential hygiene products accessible to low-income consumers. Stationery: Classmate and Camlin pens are priced at ₹5, targeting students and budget-conscious shoppers. Marketing Impact: The ₹5 price point allows brands to penetrate deeper into rural markets, encourage trials, and build brand loyalty. This strategy is ideal for driving high-volume sales and ensuring frequent customer engagement with the brand, proving that low-cost products can lead to big returns in India's diverse market. How ₹5 Products Drive Market Share 1. High Sales Volume: Low-cost products achieve large sales volumes, allowing brands to capture a significant market share in categories like snacks, personal care, and beverages. 2. Expanded Rural Penetration: In rural and semi-urban areas, where disposable income is limited, ₹5 products make branded items accessible, helping brands build a strong rural consumer base. For example, Parle-G dominates the biscuit segment with its ₹5 packs, holding a substantial market share in India. 3. Increased Brand Loyalty: By offering affordable products, brands encourage frequent purchases, which build consumer loyalty over time. For instance, shampoo sachets from brands like Clinic Plus have expanded the company’s market share by making daily-use items affordable. 4. Entry Points for New Customers: The ₹5 price point invites first-time users, enabling brands to grow their customer base and subsequently increase their share. Low-cost offerings like Dairy Milk Shots provide an easy entry for customers who may later move on to higher-priced items. 5. Competitive Differentiation: In India’s crowded FMCG space, the ₹5 price differentiates products, attracting consumers looking for value. This pricing allows brands like Lay’s, Glucon-D, and Frooti to increase their market share by appealing to a wider audience, especially in price-sensitive areas. Conclusion For companies competing in India’s FMCG sector, the ₹5 pricing strategy is a valuable approach to grow market share. It leverages affordability, high sales volume, and brand accessibility, allowing brands to reach a larger, more loyal customer base.#AffordableIndia #₹5Strategy #IndianMarket #ValueForMoney #FMCGIndia #BudgetBuys #RuralReach #MassMarket #IndiaLovesValue #EverydayEssentials

₹10 IS THE NEW ₹5 AND ₹20 IS THE NEW ₹10. Low-priced packs popular in India for impulse purchases aren't as low-priced as they used to be. Not surprising really, as with increasing input costs the grammage of product in the lowest price packs has been reduced by manufacturers. And buyers always want more for their buck. And since the smallest and cheapest packs now usually no longer offer the maximum grammage per rupee, it's become common for buyers to upgrade to the next price point, ₹10 and ₹20. This is particularly true for food products. This study makes me smile with satisfaction, since working with different FMCG food brands, I had recommended a product/pricing strategy in line with this trend being reported. For a brand selling larger packs of snacks (100/200 gm and up) through their own stores, I had recommended using ₹10 and ₹20 packs to fuel it's retail expansion beyond its branded stores. And for another brand selling low-priced choco-based products but struggling to retain grammage to make the ₹5 and ₹10 packs seem attractive to buyers, I had recommended adding more product and moving up to the ₹20/25 bracket, an increasing popular space that larger brands were already present in. Smart marketing ideas take shape when experience, observation, insights and intuition come together nicely. What do you think?

Magic price point share reduced in last 4 years

The Fast-Moving Consumer Goods (FMCG) market is poised for significant growth, with its size projected to increase from USD 111.39 billion in 2023 to USD 148.51 billion by 2031, reflecting a CAGR of 3.66% during the forecast period. This growth is driven by the rising demand for essential products such as food, beverages, personal care items, and household goods. Notably, the food and beverages segment remains dominant due to its essential nature, while the skincare segment is rapidly expanding due to increasing consumer awareness and demand for personal grooming products. Moreover, the FMCG market is experiencing a shift towards e-commerce, with online shopping becoming a preferred channel for purchasing FMCG products. This transformation is fueled by advancements in digital technology and changing consumer preferences for convenience and accessibility. Sustainability and health consciousness are also influencing the market, as consumers increasingly seek eco-friendly packaging and healthier product options. This evolving landscape presents significant opportunities for FMCG companies to innovate and cater to these emerging consumer trends. . . . Reference: https://lnkd.in/dDCG5FM7). . . #FMCG #MarketGrowth #ConsumerGoods #Ecommerce #Sustainability #FoodAndBeverages #PersonalCare #Skincare #MarketTrends #DigitalTransformation #ConsumerTrends #Innovation #HealthConscious #EcoFriendly #ProductDemand #GlobalMarket #MarketForecast #RetailTrends #Convenience #ConsumerPreferences

Parle Tops India's FMCG Brand Rankings for the 12th Consecutive Year Parle Products Pvt. Ltd continues to dominate the #IndianFMCG sector, securing the top spot in the #BrandFootprint ranking for the 12th consecutive year. The annual study by Kantar Worldpanel measures brands based on #consumerreachpoints (CRPs), which combine household penetration and purchase frequency. Parle achieved an impressive 7.98 billion CRPs, maintaining its lead over Britannia Industries Limited, which recorded 7.93 billion CRPs. The dominance of #homegrownbrands is evident, with seven of the top ten brands being Indian. Notably, Hindustan Unilever's Clinic Plus is the only non-food brand in the top five, although it saw a 5% decline to 4.14 billion CRPs. This year’s data underscores the importance of consumer choice in assessing #brand strength and #marketpresence. #ParleProducts, known for its iconic brands such as Parle-G, Monaco, and Melody, recently surpassed $2 billion in annual revenue, becoming the first Indian #packagedfood company to achieve this milestone. Despite economic slowdowns and rising inflation, Parle-G's affordable pricing strategy has helped it remain a #consumerfavorite, particularly with its five-rupee pack. K Ramakrishnan, Managing Director for South Asia at Kantar’s Worldpanel Division, emphasized the value of the #BrandFootprint ranking in understanding consumer behavior. He noted that as #consumers make more frequent purchases, their choices diversify, leading to an increase in CRPs over time. Mavank Shah, Vice-President at Parle Products, attributed their success to a deep understanding of #consumerneeds and a commitment to providing value. “Staying true to consumer preferences and adapting to changing dynamics is key to maintaining relevance,” he stated. The report also highlighted out-of-home consumption trends, with #Britannia leading this segment at 628 million CRPs, followed by Haldiram's, #Cadbury, #Balaji, and #Parle. Thums Up emerged as the top beverage brand outside the home. Despite a slight dip compared to last year, overall CRPs have surged by nearly 33% over the past five years, reflecting the growing engagement of consumers with their preferred brands. #foodbusiness #foodideas #foodbusinessgrowth #foodconsulting #businessmanagement #businessconsultants #technopak #technopakadvisors #technopakinsights

#Parle continues to be India's top FMCG brand at home, 12th time in a row According to the latest edition of Brand Footprint, Kantar World panel’s annual ranking of the most chosen consumer brands in India. In fact, seven of the top 10 brands are owned by homegrown companies. The Brand Footprint study ranks brands on the basis of their consumer reach points, or CRPs, a metric that combines how many households are buying a brand (penetration) and how often (frequency of purchase). Out of nearly 445 brands, hashtag #Parle with 7.98 billion CRP has been on the top since the launch of its brand footprint twelve years ago followed by Britannia that had CRP of 7.93 billion. Both these brands gained 6% and 16% each. Hindustan Unilever's shampoo brand Clinic Plus was the only non-food exception in the top five brands although it declined 5% to 4.14 billion. "Consumer choice is a very reliable strength test for a brand across market conditions and Brand Footprint has been a widely acclaimed ranking system to measure this for over a decade now. As we see over the years, consumers are making increasing trips for purchase and that adds their options and in-turn, their choice. This is reflected in the constant increase in CRP’s," said K Ramakrishnan, managing director- South Asia, Worldpanel Division at Kantar. Nearly two years ago, hashtag #Parle Products, which retails brands including Parle G, hashtag #Monaco and hashtag #Melody, crossed $2 billion in annual revenues, becoming the first packaged food company in India to breach the mark. The five-rupee-a-pack Parle-G value has grown despite slowdown due to its low value money plank especially during inflationary times when consumers are cutting spends and opting for smaller packs. hashtag #consumerdurable hashtag #marketupdate hashtag #fmcgnews

Consumers buy FMCG (Fast-Moving Consumer Goods) products for several reasons: 1. Everyday Necessities: FMCG products include everyday necessities such as food, beverages, personal care items, household cleaning products, and toiletries. These products fulfill basic needs and are essential for daily living. 2. Convenience: FMCG products are readily available in a wide range of retail outlets, including supermarkets, convenience stores, and online platforms. Their widespread availability makes it convenient for consumers to purchase them whenever needed. 3. Affordability: Many FMCG products are priced affordably, making them accessible to consumers across different income levels. This affordability factor contributes to their high demand and frequent purchase.Brand Loyalty: Consumers often develop loyalty towards specific FMCG brands based on factors such as quality, reliability, and brand reputation. They trust these brands to consistently deliver products that meet their expectations, leading to repeat purchases. 4. Variety and Choice: FMCG products come in a wide variety of options to cater to diverse consumer preferences and needs. Whether it's different flavors of snacks, variations in personal care products, or options for household cleaning, consumers appreciate the abundance of choices available to them. 5. Innovation: FMCG companies continuously innovate to introduce new products, flavors, formulations, and packaging designs to attract consumers and stay competitive in the market. Consumers are often drawn to try new offerings and innovations from their favorite brands. 6. Health and Wellness: With growing health awareness, consumers are increasingly seeking FMCG products that align with their health and wellness goals. This includes products labeled as organic, natural, low-fat, gluten-free, or enriched with vitamins and minerals. 7. Social and Cultural Factors: Social and cultural factors also influence consumers' purchasing decisions for FMCG products. For example, certain food and beverage products may be associated with cultural traditions or social gatherings, leading consumers to buy them for specific occasions or rituals. #innovation #management #digitalmarketing #technology #entrepreneurship #markets #marketing #economy #branding #advertisingandmarketing #motivation #investing #sustainability #fmcg #fmcgproducts #personalbranding #customerrelations #productivity #bigdata #analytics #data #sales #strategy #shoppingandtheretailindustry #business #artificialintelligence #datascience #contentwriter #digitalmarketing #seo #socialmediacontent #digitalera #onlinemarketing #onlineadvertising #srilanka #colombo

Despite overall FMCG in India facing challenges to achieve double-digit growth, the premium segment consistently grows at double-digit rates across all markets and categories, driving half of the incremental sales for the Indian FMCG industry. #FMCG #marketing #brands https://lnkd.in/gyHR_Tz5