FMCG majors such as Cadbury, ITC, Hindustan Unilever, Heinz and Procter and Gamble are coming out with big discounts for customers. These big discounts are being offered to improve the sales of premium products which are less in demand now. The discounts offered by the companies vary in the range of 10% to 70% and was started two weeks back.
Toblerone, a product from CadburyIndiawhich costs Rs. 430 for a 400-gm pack, is now available for Rs. 250 as a part of discounted sales. The company says that it is planning to run the campaign for another two weeks at modern stores. On the other hand, Heinz is offering a 20 per cent discount on Complan milk drink. This is indeed the company’s highest price off in the recent times.
Hindustan Unilever is coming out with offers for its brands Dove, Sunsilk and Pears. Big discounts are reaching customers after a long time since the festive seasons and customers can make use of these big discounts to try their favorite products. There is a heavy rise in promotions and discount programs since the market is slow and there is fierce competition in the market.
There is a strong dip in discretionary spending rates and this can also be counted as one of the reasons for the sudden rush of offers. The discretionary spending rates in the recent times are about 17% since a few months. When brands are busy thinking about the ways to woo customers with offers and discounts, it is something viral from the customer point of view. Companies are trying to mop up their volume growth with latest offers, but how far it will help them to improve their bottom line is the underlying question. Till then, its merry time for the customers.