Sachet marketing assignment

Ford India’s $380 million plant is situated at Maraimalai Nagar, about 45 km from Chennai in south India, and manufactures up to 50, 000 vehicles a year. In a PRODUCTS MADE FOR INDIA, CLOCKWISE FROM LEFT: The Nokia 1100, a special vegetarian McDonald’s burger and the Ford Ikon 28 29 PRODUCT INNOVATION PRODUCT INNOVATION A GLOBAL MAJOR GOES LOCAL TO WIN CUSTOM: McDonald’s Amit Jatia crowded market with almost all the major marquees present, Ford India was the first subsidiary of a multinational car manufacturer to launch a car designed specifically for the Indian market.

It was the mid-sized Ikon, which was launched in October 1999, and has since taken the market by storm. According to Vinay Paparsania, Ford’s VP, sales, marketing and external affairs, “ The Ford Ikon is today India’s leading mid-size car with over 190, 000 units sold, including exports. ” An adaptation by Ford India for the Indian market is the Ford Fusion, “ a combination of an SUV and a luxurious sedan in one model. ” Changes for India in the Ford Fusion include an allnew air-conditioning system for the hot and humid tropical climate.

Sometimes, product adaptations can take simpler forms such as packaging innovations. Unilever’s Indian subsidiary, Hindustan Lever, was reputedly the first to use sachets to sell single-use packs of its shampoos. The concept was to lure the millions of potential consumers in rural India, who may not have had ready cash for a higher-priced, and larger, shampoo bottle. For them, the smaller packets, with correspondingly lower prices, made a sound purchasing proposition. The sachet concept has become marketing lore in DIFFERENT STROKES FOR A DIFFERENT MARKET

TWO AND A HALF YEARS ago Philips India introduced a crank up, or free-power, radio in the Indian market that didn’t require any batteries since it works on mechanical power through the movement of a rotary arm. By turning the arm for one minute, you can listen to the radio for 30 minutes. “ This has huge benefits in the power-starved regions of the country. It saves on energy consumption and running costs in the small towns,” says Gunjan Srivastava, director, audio-video business, Philips India. Within Philips there has been talk of taking this product to its other markets in the AsiaPacific region.

Some of the aspects of a western lifestyle that have caught on with the younger generation are eating out with friends ??? against eating out with family ??? and take-away and home delivery services. McDonald’s responded to this demand by introducing take-away counters and McDonald’s Delivery. “ The hectic pace of life and long commuting hours have been instrumental in creating this need,” says Jatia. Another aspect, which has earned the Indian consumer the epithet of being thrifty, is his preference for the value-formoney proposition. Many of the early entrants in the great Indian bazaar misread the signal and thought that the ure of the brand-name would be strong enough to charge market prices prevalent in developed economies. Several brands collapsed under the weight of their prices; many are now attempting a comeback. Even among the survivors, from cell handset and automakers to brands of writing instruments and even with McDonald’s, there has been a paring of prices. To bring in the volumes, LG – which wants to position itself as a premium brand in the imminent future ??? has introduced its ‘ economy’ range of products. Nokia too has brought down its price points to fight competition from a weakening ‘ grey’ market.

In the endeavour of getting a sizeable market share in a major consumer market, low prices may not be the only answer. Nor is the mere introduction of global products. Perhaps the winning formula may be the perspective of Philips India’s Pandit: “ You cannot blindly bring products from your international range and sell them in India. Various parameters such as design, product quality and pricing need to be evaluated before bringing in the product to be sold in India. ” As more and more international brands enter the Great Indian Bazaar, they will discover the gravitas of Pandit’s philosophy. 30 31