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P&G's Global Target: Shelves of Tiny Stores
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It appears that P&G and Unilever have caught on to what may be one of the biggest developments in consumer products as the global economy incorporates hundreds of millions of small budget buyers in developing countries from Mexico to India. Just look at the figures here- these high frequency stores like the one in Leon, Mexico mentioned here, bring in per shopper 23 pesos or about $2, with annual sales of about $16 billion. As their incomes increase they could be buyers of the same brands they are accustomed to and move upscale in the years ahead. Another article talked abot Walmart's success in Mexico's urban areas. It appears that there are two trends one of the high frequency stores in the rural areas and the smaller villages and towns, and the other of large stores in the growing urban areas with buyers from the newly affluent urban classes. What is interesting is the close attention that is required to sell to high frequency stores and the sense of respect that needs to be shown for the economy, price and budget, buying habits to tailor products for their special needs. As for example: the one time use Head and Shoulders shampoo that costs 2 pesos, the feminine hygiene pad product with aloe that can be used longer with extra absorbent cotton, the Downy Single Rinse to conserve water usage. All the time the attention to a quality product that delivers and gains sales by word of mouth.
The low cost and discount brands become important to shoppers and businesses.
07/16/2007
WIth about 7 million workers working less than 35 hours aweek and many facing a couple of days of furlough, or pay cuts, the family shops very carefully and on a budget. Businesses are paying attention, and even companies like P&G (Procter & Gamble) are pushing discount brands.
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Marketing at low price points away from large cities in developing countries.
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P.& G. Sees the World as Its Client
New York Times 12/12/2009
P&G's Global Target: Shelves of Tiny Stores
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P&G (Procter & Gamble) and Cadbury- strategy of operating at low price points in emerging markets
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Linked Articles
Cadbury Redefines Cheap Luxury
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P&G's Global Target: Shelves of Tiny Stores
Wall Street Journal 07/16/2007
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