Some years back FMCG major Britannia Industries decided to launch small packs of biscuits, priced ₹5, and they flew off the shelves. Two years ago it broke into the country’s hinterland with similar, pocket-sized offerings of Good Day.

Pocket size

Now encouraged by the good response, the company is planning to push its other premium offerings to tap the bottom of the pyramid with similar small ticket (pocket sized) offerings.

According to Varun Berry, Managing Director, Britannia Industries, the company will introduce premium offerings at low-price points — of around ₹5 or ₹10 — but with less grammage when compared to a value offering.

“We will have a portfolio of brands and SKUs (stock keeping units) which will be sold in the rural areas and the leader, however, will be Good Day,” he told BusinessLine .

Nearly, ₹600 crore or 30 per cent of Good Day’s sales come from rural areas.

Rural foray

Sources indicate that Good Day, a predominantly urban offering, made its mark not only because it came at the right price points but also due to rural consumers looking for quality offerings. “With the consumer going for it, we made great in-roads in the value segments. In the Hindi belt, Good Day is doing really well at the cost of glucose and value cookies,” Berry added.

Currently, the company’s flagship brands in the rural market include Good Day, Marie, Tiger and Nutri Choice. At the premium end, Good Day remains the highest contributor to sales.

The Wadia-group promoted biscuitmaker is also looking at a larger proliferation in rural areas.

“We have biscuits in all categories. We might be weak (in rural areas) and that is because we have not made in-roads or vice versa. We will use whichever product (is required) and offer them at the right price points,” he added.

Britannia’s plan is to be present across all villages in India by 2018.

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