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Parle Agro, Rasna take new affordability route

16-August-2004
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Parle Agro, Rasna take new affordability route

Call it the swadeshi branding strategy. Even as PepsiCo India has decided to up prices of smaller 200ml bottles, domestic players like Parle Agro and Rasna are shifting their focus to economy packs which are priced at affordable rates. The focus seems to be on a ‘mass market strategy’ to target both rural and urban consumers across the country. Meanwhile, Godrej Industries Ltd’s Foods Division is planning expand the brand portfolio of its fruit juice-based drink ‘Godrej Xs’ in a bid to take on the videshi players.

To announce the launch of ‘Magic Frooti’ priced at Rs 2.50 (for 60ml), Parle Agro is in the process of rolling out an integrated marketing plan with the theme line ‘Paanch Ka Do’. On the other hand, Rasna is also aggressively promoting its new launch ‘Cola Cola’ (in sachets) which is available for just 50 paise. And Rasna is using the adline ‘Ek Ka Do’ to promote its new launch.

But will the new pricing strategy help pump up volumes? Says Parle Agro director Schauna Chauhan: “Of course, the results are already showing within a short span of time. We launched Magic Frooti three weeks ago and there has been a steep increase in demand for the product. We have already tripled our capacity to manufacture 65ml packs.”

Parle’s new launch Magic Frooti is currently available at many retail outlets—from a supermarket to paan shops in many places across the country. “With this launch, we want to target the rural audience who can afford this product. To support our mass media ad campaign, we are looking at ‘in-shop display’ and below-the-line activities. For Rs 20, we are offering a chain of Magic Frooti (8 packs) targeted at children,” she adds.

Meanwhile, Godrej Foods’ executive director & president MP Pusalkar says the company plans to broaden the product portfolio of its brand Godrej Xs to target a diverse audience.

“We plan to increase our range to give more options to our consumers. There’s an opportunity for growth through this strategy. As of now, we have no plans to launch mini versions of Xs which is available for Rs 10 (200ml),” adds Mr Pusalkar.

As for Rasna’s mass media strategy, Rasna Pvt Ltd chairman Piruz Khambatta says it has worked well for the company. “With the launch of Cola Cola, we can reach out to a wider target audience. Our vision is to provide masses a healthy drink at the price of 50 paise,” says Mr Khambatta.

The vital question is: Will this pricing strategy help Indian companies gain a competitive edge?

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