Technoglitch
Core Member
Slowdown in rural demand for the second consecutive year is making FMCG companies create specific price points and products to step up consumption in this market.
While Parle Products dropped prices on its premium brands such as Milano to make it more affordable in the rural markets, Godrej Consumer Care is digging deeper into its ‘One rural’ programme piloting new projects such as community radios to push its brands such as Godrej No. 1 and Cinthol.
Rural incomes have been under pressure for the past two years with the benefits of employment schemes such as NREGA coming down and minimum support prices going up, says Sunil Kataria, Business Head, Godrej Consumer Products. “Today we are trying (to) enhance distribution and reach out to 60,000 villages directly with Re 1 price points for soaps and household insecticides,’’ he adds.
Biscuit major Parle Products is also willing to drop price points for its premium brands such as Hide & Seek and Milano and is getting deeper into the hinterland targeting villages with less than a population of 500.
“We already reach out to two lakh villages with population of 10,000, but now we are reaching out to villages with a population of 500 and increasing distribution by 20 per cent with increasing budgets by 15 per cent for the rural markets realising the decreasing paying capacities in these markets,’’ said Praveen Kulkarni, Marketing Head, Parle Products. Dairy major Parag Milk Foods is also creating specific price points and packaging to drive consumption in the rural markets. Being an urban focussed company primarily, it now intends extending its rural reach with lowered prices across its two main brands of Go and Gowardhan for milk, cheese and ghee.
For instance, it has for the first time introduced ghee in sachets under its Gowardhan brand in two SKUs of 18 ml and 9 ml at ₹20 and ₹10 respectively.
FMCG firms drop prices, create smaller packs to lure rural India | Business Line
While Parle Products dropped prices on its premium brands such as Milano to make it more affordable in the rural markets, Godrej Consumer Care is digging deeper into its ‘One rural’ programme piloting new projects such as community radios to push its brands such as Godrej No. 1 and Cinthol.
Rural incomes have been under pressure for the past two years with the benefits of employment schemes such as NREGA coming down and minimum support prices going up, says Sunil Kataria, Business Head, Godrej Consumer Products. “Today we are trying (to) enhance distribution and reach out to 60,000 villages directly with Re 1 price points for soaps and household insecticides,’’ he adds.
Biscuit major Parle Products is also willing to drop price points for its premium brands such as Hide & Seek and Milano and is getting deeper into the hinterland targeting villages with less than a population of 500.
“We already reach out to two lakh villages with population of 10,000, but now we are reaching out to villages with a population of 500 and increasing distribution by 20 per cent with increasing budgets by 15 per cent for the rural markets realising the decreasing paying capacities in these markets,’’ said Praveen Kulkarni, Marketing Head, Parle Products. Dairy major Parag Milk Foods is also creating specific price points and packaging to drive consumption in the rural markets. Being an urban focussed company primarily, it now intends extending its rural reach with lowered prices across its two main brands of Go and Gowardhan for milk, cheese and ghee.
For instance, it has for the first time introduced ghee in sachets under its Gowardhan brand in two SKUs of 18 ml and 9 ml at ₹20 and ₹10 respectively.
FMCG firms drop prices, create smaller packs to lure rural India | Business Line
