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Eyeing rural, deodorant brands bet big on small-value packs

Riding on rural aspiration, deodorants companies are focussing on rural markets with low-unit priced packs, also called as small packs


Eyeing rural, deodorant brands bet big on small-value packs
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The Hindu Business Line on October 3, 2017 reported that the Rs 2,300 crore deodorant market in India witnessing slow growth, brands have been shoring up reach by opting for small-value packs, especially those priced below Rs 100.

However, riding on rural youth’s aspiration and increasing consumption power in the hinterlands, the deodorants companies are focusing on rural markets with LUPs (low-unit priced packs) or small packs.

From one or two brands in 2011, there are now seven major brands — Park Avenue, Cinthol, ITC, KamaSutra, Emami, Marico and Nivea — that have either rolled out or are experimenting with sub- Rs 100 offerings. The portfolio is generally spread across both deodorants and perfumes, the news portal reported.

“LUPs (low-unit priced packs) help consumers to try and experiment often. For a marketer, it ensures brands remain in the consumer’s monthly purchase baskets. They drive penetration, induce trials and help deliver increased value for money,” Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC, reportedly said to Business Line.

LUPs are mostly targeted at rural consumers, who do not want to spend much on brands. However, there seems to be a shift in target audience driven primarily by usage patterns.

In 2011, KamaSutra experimented with a ‘pack of three variants’ of 40 ml deos priced at Rs 180. By 2013, Park Avenue had launched Deo Shots priced at Rs 59. In 2015, KamaSutra launched a single unit pack of 40 ml (hanging dispenser variant), priced at Rs 60 a piece.

Giriraj Bagri, President – FMCG Business, Raymond Ltd who makes deodorants under brands; Park Avenue and KamaSutra, pointed out that the company has been able to add 50,000 new outlets to Park Avenue’s distribution network. For Raymond, smaller packs have become an integral part of its portfolio.

Nivea has introduced a Rs 99 roll-on deo variant, while Cinthol has a Rs 69 (deo) stick. Emami’s ‘He’ deo is said to have a Rs 75- pack (of 40 ml) targeting rural and semi-urban markets.

From deodorants, the category is now being expanded with ITC having a Rs 60 variant of “Engage On” perfumes, and Marico a Rs 49 pack of “Set Wet”. Both of these were introduced earlier this year.

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