FMCG players bundle offers to shore up sales

Companies also adopt "buy more to save more" concept to boost sales during the current slowdown.

While price correction is clearly a focus area, fast moving consumer goods (FMCG) companies like ITC, Godrej Consumer Products Ltd (GCPL), Emami and Marico are also building on “tactical” promotions, bundled offers and “buy more to save more” concepts to beat the current recession.

GCPL’s promotional offers, for instance, include one free cake of soap on purchase of three, and discounts on purchase of linked packs.

“Discounts and promotional offers are temporary means to achieve strategic ends, which could include trial and competitive reaction. Reasons for promotional offers include rewarding loyal customers, passing on cost savings to consumers and inducing trial,” said HK Press, executive director and president of GCPL.

The current economic scenario, according to Press, is discouraging consumers from spending on things like housing and durables that depend on credit funding.

Aditya Agarwal, director of Emami, agrees. A few of Emami’s schemes include Emami Pure Skin worth Rs 22 free with Boroplus Advanced Moisturising Lotion worth Rs 98; five pieces of Sardija Cough drops worth Rs 5 free with 100 ml of Sardija Cough Syrup worth Rs 50, among others. “In many ways, discount is a starting point as it helps create buzz and excitement and ensures higher sales. Consumers might curtail consumption of high-end products but not ‘mass’ products. During trying times, ‘save more when you buy more’ strategy will always work,” said Agarwal.

ITC is offering Vivel Di Wills shampoo (200 ml) free with its 75 gm bathing soap for Rs 89. Sandeep Kaul, chief executive (personal care products business), ITC Ltd, said, “Our brands are new. Hence, our marketing efforts are geared towards enhancing consumer engagement and trial. The consumer response to our brands, Fiama Di Wills, Vivel and Superia, has so far been excellent. Multiple marketing strategies are being explored to achieve the objective.”

The Indian consumer, according to Saugata Gupta, CEO (consumer products) at Marico, faced tremendous inflationary pressure last year.

“We have made some price corrections and are doing some tactical promotions. We will invest in innovation and long-term brand building even during these times,” added Gupta

“Promotions help boost sales and as and when a price reduction is possible, we will pass on the benefit to the consumers,” said Soma Ghosh, head of marketing, Nivea India.