Value offers catch up with consumers and retailers
Retailers and FMCG majors are now helping inflation-hit consumers to get more bang for their buck. Saurabh Turakhia tells more.india Updated: Jul 10, 2008 20:12 IST
Retailers and FMCG majors are now helping inflation-hit consumers to get more bang for their buck. Monthly promotion offers in the form of heavy discount days on all products in the store, or offers that give more grams for the same price have retailers optimistic on increasing sales.
Big Bazaar heavily promoted its discount programme ‘Monthly Bachat Bazaar’ that was held between July 1 and July 9. Hindustan Unilever (HUL), on the other hand, has indicated that it will announce interesting promotion offers on the 5th and 10th of every month in one of its communication to the general public.
These offers will include products at discounted prices or more grammage for the same price. Cross-promotion offers are also part of their ‘Adding More to Life’ campaign.
A source at HUL told Hindustan Times that this is part of the company’s celebration of completing 75 years that attempts to reward consumers in various ways.
However, analysts feel that HUL brands although doing well, are seeing pressures on volume, in some categories. “Since competition is intense and inflation is also taking its toll, such promotional offers will come regularly,” said Anand Shah, an analyst with Angel Broking.
An industry source also said it could be a way of maintaining sales of premium brands which may get affected in inflationary times.
Big Bazaar has plans to continue with the Monthly Bachat Bazaar scheme. “The business from 90 stores for the first seven days from this promotion was Rs 100 crore,” said Rajan Malhotra, CEO of Big Bazaar. The retailer has pumped in substantial money to publicise the property, which was based on the observation that most households make their monthly purchases in the first week of every month.
Anupam Dutta, managing director, Kellogg’s India said, “In a competitive market, such monthly schemes may help in terms of blocking competition- however the consumption has to go up to justify it on a regular basis.”
However, some retailers oppose the concept of limited offers. “We believe in the concept of every day low prices.
Delivering consistent value through good offers everyday is our aim. Moreover, in such schemes, offers are only on a few products and not on all products,” said Mohit Khattar, president, marketing, Subhiksha that sells almost all its products at discounted rates throughout the year.