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Case Illustration #1

Can “right” pricing induce trials and off-take?

This case is about an occasionally consumed food product. This was the first product of its kind made in India, at the time. Competition was very well known and established brand from the western world, imported and consumed by the elite few.

The Indian product was launched with much fanfare. Over a two-year period, however, the off-take dwindled and stock returns were high. This product was available in 3 SKUs, including a single consumption SKU. The other two SKUs were large and demanded a significant outlay at the time of purchase. The product was hygroscopic and, therefore, when kept on a shelf at home, deteriorated over time.


A close study of the Consumer Behavior suggested that (i) the larger SKUs were not preferred due to price (outlay) and storage problems, and (ii) more importantly, the single consumption SKU did not take off since it was a family consumption product.


A new SKU was specifically designed for a single occasion consumption for a family (of 4) and conveniently priced. The brand grew over 30% in retail penetration and consumer off-takes over the next few successive years and reversed the fortunes of the brand.

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