Low Priced Product - Impact on a Company

The introduction of a low-priced product into the product portfolio of a company can have many implications. Many a times it can change a company in many fundametal ways. As a premium high priced product's a company can afford to ignore many retailer while distributing and communicate to a select group of customers, but when such a company is forced to introduce a low priced masss product, then....

One company which has gone through this sort of a fundametal shift is Britannia Industries. A premium biscuit and cookie seller till the launch of Tiger biscuits. Tiger was launched in 1997 and marked a shift in the overall distribution and marketing focus of the company because tiger was pitched against Parle-G Glucose biscuits , the Rs 40 per kg mass biscuits.

In the pre-tiger era there use to a gap between supply demand for britannia biscuits, and the company had a laid-back approach towards distribution and in tier-II cities in the coutry a situation of non-avalibility of Britannia biscuits was not a very uncommon . The launch of tiger changed all this, the company was forced to think, act and distribute like a mass marketer and they ended up developing specific models for distributing Tiger in rural markets across the coutry....

And the introduction of the Rs1 Sachets of Tiger meant that the company had to even place the product in Tea shops and other smaller shops where it would be cosumed with tea....

Today Tiger brand is a Rs 650 Crore plus brand in the market and the comapny itself has trasformed itself from distribution power house.....