When contacted, a company spokesperson confirmed the development. According to sources, the company is further enhancing its distribution reach to top 2,000 towns in the next 6-8 months. This is a clear sign that the company is training its eyes on non-metro towns as opposed to its earlier strategy of focusing mainly on metro towns, said an industry analyst. Sources say that the new strategy bears its root in the re-entry of P&Gs marketing and sales director Chester Twigg into India, while its country manager Shantanu Khosla continues to additionally focus on the AAI (Asean-Australasia-India) region for health care. With increase in distribution and penetration, industry analysts say, P&G would increase its expenditure on advertising and marketing.
P&G on Monday announced a reduction in its detergent sachet price to Re 1 from Rs 2 for Tide and to Rs 2 from Rs 3 for Ariel. However, prices of its large packs remain unchanged. P&G Indias laundry business turnover is about Rs 200 crore, and has been growing at around 6-8 per cent, said sources.
This sachet price-value strategy has been successful for P&G earlier in China and Philippines, prior to the India launch. Mr Khosla said, Most detergent sachet consumers use Tide and Ariel sachets for their good clothes. Hence, improving the price-value proposition on sachets will give many more consumers the opportunity to use Ariel and Tide sachets not just for their good clothes, but all clothes.