Pricing Strategies for Rural India - FMCG
Quick overview of the Indian Rural FMCG Market and Key Pricing Strategies that can adopted to penetrate this market. Rural FMCG Market currently contributes to almost 50% sales of leading FMCG brands in India.
Published on: Mar 4, 2016
Transcripts - Pricing Strategies for Rural India - FMCG
2 Minute OverviewPricing Strategy – Indian Rural MarketsFast Moving Consumer Goods
Rural FMCG Market Overview$ 9 Billion 2010 $100 Billion 2025
What drives the Rural Consumer ?• Price• Aspirations • Quality The rural consumer is savvy and demands real “value for money”
Rural Pricing Strategies
Value PricingSachets, Small Packs, Single Usage Packs…. • Low Unit Packs (LUPs) • Varied Quantities at Different Price points • Helps attract new users Over 95% of rural shampoo sales happen via Re 1 & 50 p Sachets !
Power Price Points ………………………………………….. Rs 1, 2, 3, 5, 8 & 10• Perennial Problem of Change• Play on Affordability• Promote trials & switching from traditional alternatives 200 ml Chota Coke for Rupees 5 Only !
Value EngineeringSave costs without compromising on quality or functionality …. • Product Development • Raw Materials • Logistics & Supply Chain Britannia Probisk & Asian Paints Utsav Destemper @ Rs 32 per kg
Value PackagingRural consumers are interested in sturdiness and utility !• Avoid Sophisticated Packaging• Provide Refill/Re-usable packs• LDPE and HDPE packaging is preferred by Rural Consumers Perfetti introduced re-usable PET containers for packs of 100 SKUs
Differential PricingDifferent prices for different markets – Rural & Urban • Market Expansion • Market Penetration • Same Product Offering. Different Brand, positioniong & pricing Differential pricing is prelevant in categories such as Phenyl
Thank You Sumit Chugh http://www.linkedin.com/in/sumitchugh firstname.lastname@example.org