In India, why is a Shampoo Sachet is usually much Cheaper than a Shampoo Bottle?
We will try to answer:
1.
Sachet is more cost effective both in distribution and packaging.
Packaging a sachet just requires cheap plastic and shampoo-company doesn't need to worry about attractive bottles or tamper-proof lids, etc.
2.
95% of Indian shampoo sales are through Sachets - which in turn means is that it is much easier to sell 50 sachets than 1 bottle - And quick turnover in turn means lower costs.
3.
Sachets are primarily sold through smaller retailers who run with lower margins and overheads.
Bottles are often sold through supermarkets with higher overheads.
We will try to answer:
1.
Sachet is more cost effective both in distribution and packaging.
Packaging a sachet just requires cheap plastic and shampoo-company doesn't need to worry about attractive bottles or tamper-proof lids, etc.
2.
95% of Indian shampoo sales are through Sachets - which in turn means is that it is much easier to sell 50 sachets than 1 bottle - And quick turnover in turn means lower costs.
3.
Sachets are primarily sold through smaller retailers who run with lower margins and overheads.
Bottles are often sold through supermarkets with higher overheads.
4.
Sachets are often sold to the people who are all quite price sensitive - poor class, middle class, cost conscious upper class.
While the bottles are sold to all those who are not price sensitive and who get hoodwinked by attractive packaging.
Sachets are often sold to the people who are all quite price sensitive - poor class, middle class, cost conscious upper class.
While the bottles are sold to all those who are not price sensitive and who get hoodwinked by attractive packaging.
Sources:
researchgate.net/publication/233676293_Buying_less_more_often_An_evaluation_of_sachet_marketing_strategy_in_an_emerging_market
duplication.net.au/ANZMAC09/papers/ANZMAC2009-403.pdf
rappler.com/business/3514-products-in-bulk-packages-cost-more-than-in-sachets
nextbillion.net/small-is-beautiful-small-is-cheap-but-do-the-poor-care/
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