Reflecting on my tenure at #cadbury India Ltd. in 2001, I vividly remember that the entry price of our popular chocolate Dairy Milk was Rs. 5/- and surprisingly, in 2023, it remains unchanged.
In recent times, many companies are reevaluating their strategies to enter niche markets, and this shift is driven by various factors.
Adapting to the challenges posed by rising costs of #rawmaterials , labor, #logistics , taxes, and more, companies are finding #innovative ways to maintain consumer-friendly prices. One such #strategy involves reducing the weight of #products rather than increasing their #prices . For instance, #dairymilk 's weight decreased from 16 grams to 9 grams, and yet, it continues to be one of the #company 's fastest-selling brands.
#customers tend to be more receptive when products align with their psychological #price range, and exceeding this threshold may lead to a loss of #market share. Hence, #companies are now exploring alternative approaches to cater to specific customer segments, resulting in #disruptive changes to their #product lines.
Various recent examples illustrate how companies are embracing this disruption- Disruption in Product Line. For instance, Asafoetida (Hing) can range from ₹ 2000/- to ₹ 20000/- per kg, but branded companies offer sachets priced at just ₹10/-. Similarly, #namkeen (Chakna) costing ₹250/- per kg is available in smaller packs for ₹5/-. Companies are also introducing #branded soaps that typically cost ₹40/- to ₹50/- at a reduced price point of ₹10/- with smaller pack sizes. Though the #profit#margins for these products are modest, the companies compensate with high #volumes , targeting lower-middle-class #consumers who are now influenced by #digital and #socialmedia platforms, leading to increased #brand affinity and product #desire .
While adopting disruption #techniques to tap into #nichemarket s can yield positive results, careful analysis and #strategicplanning are crucial to avoid potential losses. #organizations must thoroughly study and understand their #target#audience and the market dynamics before implementing such #strategies .
If you require professional #business#consultancyservices to develop end-to-end solutions and scale your business #effectively , we are here to help. As experienced business #consultants , we can provide #expert#guidance and assistance, enabling your organization to take flight and achieve success in the ever-evolving #market landscape.