HUL and the sachet
Sometime in the 1970s Chinni Krishnan decided to sell talcum powder and Epsom salts in sachets to make these products affordable to the middle income group. The idea came from the fact that the larger bottles and tins wouldn’t sell because the buyers found it too expensive. The resounding success got his son C.K. Ranganathan to sell shampoos in sachets as well under the brand CavinCare. Back then, major MNCs like HUL ignored this market because they believed that they would not be able to afford them.
But this little entry to the market opened a floodgate for CavinCare. So really, it wasn’t affordability that was the issue but the cash flow. But there were more benefits coming too. Not only did CavinCare reach a wider audience, but as soon as the household incomes increased, the families started buying the larger bottles as well. Seeing this massive wave of success, HUL was quick to shift gears and focus on the middle income group. And that’s how HUL shifted to accommodate a whole new market with the humble sachet.
Amazon and Cash On Delivery
For Amazon, India was a new market in a number of ways. One of the main characteristics of the market the company had to contend with was its cash rich nature. All other markets that Amazon had previously entered were credit based. To add to this, there was the home grown retail giant Flipkart, which was offering Cash On Delivery (COD).
Amazon quickly changed tactics and began offering COD as well. This helped massively increase brand penetration in the Indian market. The orders began flooding in and the cash registers began singing again. Amazon took a page from its rival Flipkart, changed their business strategy and took over the Indian market. However, post demonetization and after the pandemic, COD deliveries saw a dip of 40% due to safety concerns. UPI and other fintech offerings have further taken a bite out of COD orders.
McDonald’s meets the Veg Menu
McDonald’s, one of the largest fast food brands, had to change course before they could even think about entering the Indian market. Traditionally, the brand’s menu has always been dominated by meat heavy offerings and anything vegetarian was relegated to a few choices as an afterthought. But considering the massive vegetarian population in India, this was not an option for the fast food giant.
McDonald’s went back to the drawing board and came up with a slew of vegetarian options just for the Indian market and the rest is history. The Mc Aloo Tikki has turned out to be one of the most popular and fast selling burgers for the brand. The lesson? If you want to enter a new market, it is vital to do a thorough research to ensure you offer exactly what the consumer wants
At 3 Dots Design, we believe in-depth market research before creating any ad campaigns ensuring our clients make the most ROI. Just like the brands above, we believe in manoeuvring to deliver maximum impact for your brand. To know more about our work, visit 3dotsdesign.in