7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

1/11

FollowLike 863k| Log In | Join |

FMCGNews Stock Quote

Home Markets IPO Personal Finance Tech Jobs Opinion Features Blogs Slideshows Budget 2013 ET NOW

ET Speed Portfolio

News By Industry News By Company Economy Politics and Nation International Business Emerging Businesses PSU Press Releases NRI

Auto Banking/Finance Cons. Products Energy Ind'l Goods/Svs Healthcare/Biotech Jobs Services Media/Entertainment ET Cetera Telecom Transportation

Education

Hi there,Login with your Facebook ID to see what yourfriends are reading on Times of India andEconomic Times.

SPOTLIGHT

You are here: ET Home News News By Industry Cons. Products FMCG

By RATNA BHUSHAN & SAGAR MALVIYA, ET Bureau | 10 Apr, 2013, 07.08AM IST29 comments | Post a Comment

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big

discounts to push premium products on slowing demand

Editor's Pick

Fall in consumer demand forces retailers toshutdown shops in Bangalore's high streets

Online babycare co 'Babyoye' acquires

FMCG biggies such as Cadbury, HUL,ITC, P&G offer big discounts to pushpremium products on slowing demand

READ MORE ON Varun Berry COO | united states | spokesperson | Shoppers Stop | rush |

NEW DELHI/MUMBAI: FMCG companies

such as Cadbury, Hindustan Unilever, ITC,

Procter & Gamble and Heinz have

launched discounts ranging anywhere

between 10% and 70% on high-value items

in the past two weeks as they try to push

premium products amid slowing demand.

Leading the pack is Cadbury India, whichnow sells a Toblerone 400-gm pack for

250, against 430 earlier, in a promotional

offer that the company says will run for two

weeks at modern stores.

"Brands often undertake strategic

programmes to promote products to

encourage trials and build a stronger

association with consumers," a

36

3

29

Post YourComment

Share More

44

Get Quote

News

Indiatimes | The Times of India | The Economic Times | More

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

1 of 11 4/11/2013 3:48 PM

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

2/11

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

3/11

Most Watched Videos

MORE FROM VIDEOS

Slide Shows

15 'wow' features in Samsung

Galaxy S4

Samsung's latest Galaxy phoneoffers a plethora of newunconventional features.

7 Indian-origin people inprominent positions at Google

Interestingly, Pichai is amongseveral other Indians who occupy

Bajaj RE60 awaits green signal from thegovernment

Bajaj RE60awaits greensignal from the ...

SAIL OFS maynot be anattractive invest...

Sensex opens ona cautious note;SAIL hi...

mainly to mop up more volume growth,

especially in the soaps and detergent category

that have seen sharp deceleration in volume

growth," he adds.

A JPMorgan report dated March 15 said

promotional intensity is increasing across

soaps, shampoos and laundry segments.

"P&G is offering 15% extra for its Rs 3

shampoo sachets. HUL BSE 0.73 % has been

offering price-offs on its premium detergent

brand Surf Excel Matic," it said.

Falling input costs are helping too. Prices of

crude oil and palm oil-key ingredients for

soaps and detergents-have declined 7% and

3%, respectively, month-on-month, helping

P&G, HUL and ITC BSE 0.25 % offer promotional

discounts on some of their brands.

Analysts at Edelweiss Securities suggest that

moderating growth has clouded next two

quarters' volume growth at the country's

largest consumer products maker, Hindustan

Unilever, and hence the promotions.

"Promotional pricing (no cut in MRP) has been

initiated across soap brands in select SKUs

(barring Hamam) in the 12-20% range owing

to cooling palm oil prices," Abneesh Roy of

Edelwiess wrote in a report. "This will l imit

price growth," he added.

Ashutosh Chakradeo, head of buying and

merchandising at HyperCITY Retail promoted

by retail chain Shoppers StopBSE 0.99 %

, saysmarketers have also started aping big retailers' strategy of bundling products to offer

discounts.

36

29

Post YourComment

Share More

44

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

3 of 11 4/11/2013 3:48 PM

FMCG bi i h C db HUL ITC P&G ff bi di t t h i d t htt // i ti i di ti / / b i d t / d t /f /f bi i

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

4/11

prominent positions in the glo...

India's largest mall in Kochi:

Lulu Mall

The recently inaugurated Lulu Mallin Kochi claims to be the largest

mall in India with nine t...

More Slideshows

Now 18% Off on Pampers18% Off Pampers Active Baby Pants. Best Price Online only at Babyoye!:

Babyoye.com/Ships_Free/CoD

Ads by Googl

NEXT STORY

Hindustan Unilever in pact toacquire Aquagel Chemicals

More from The Economic Times

Jamnalal Bajaj Institute closes final placement with

average salary of Rs News

Citigroup picks 20 stocks that can give over 20%

returns in 2013 Markets

Prices of tender coconut soar due to short supply

News

Jasuben Pizza: Success story of Gujarati

enterprise? News

More from the web

The Secret of the Wonder Weapon That Israel Will

Show Off to Obama TIME

Apple's India plans have bureaucratic hurdles

ZDNet India

Why RMB will be a global currency by 2015 RBS

If You Want To Be Awesome At Emails, Add

Yesware To Your Gmail Today Forbes.com

"As retailers, we always bundled products or offer discounts from our side while

companies resorted to lowering of MRP. But now companies have started to club

products together or give price-offs themselves with retailers adding on extra price-

benefits at the store level," Chakradeo said.

READ MORE ON Varun Berry COO | united states | spokesperson | Shoppers Stop | rush |

Recommended by

Follow Economic Times FMCG Section, For The Latest News!

Recommend Send 44 people recommend this. Sign Up

to see what your friends

Like 3

36

29

Post YourComment

Share More

44

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

4 of 11 4/11/2013 3:48 PM

FMCG biggies such as Cadbury HUL ITC P&G offer big discounts to push premium products on http://economictimes indiatimes com/news/news by industry/cons products/fmcg/fmcg biggies s

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

5/11

NEWEST OLDEST RECOMMENDED (4) MOST DISCUSS ED AG REE DISAGREE LOGG ED IN COMMENTS NEW!

These FMCG companies are not doubt having a fat margin on all these products.

Consumers should not go with such brands, some their purpose is solved with any other

locally available, low cost substitute. These companies are trying to inject fear into the

minds of people telling that locally available products are not good. I have pledged not

using Lays, Soft Drinks & to some extend (mineral water).

Agree (0)

Disagree (0)

Recommend (0)

Offensive

Cadbury in particular has resorted to discounts because for the first time in years it has

started to feel the pinch of Amul's relaunched portfolio of chocolates especially from the

Amul dark chocolate category. Cadbury has had, for a long time, a monopoly in the Indian

chocolate market with no worthwhile competition. Its time ITC also gets into the chocolate

business to take on the competition heads on.

Agree (1)

Disagree (1)

Recommend (0)

Offensive

Companies should fix the right price,Keeping minimum profits,at the initial stage only. This

will help Aam Admi very much, thereby with larger volumes of quick sales such discounts

need not be given. All products should be reasonably priced and should be in reach of

common man.

Agree (1)

Disagree (0)

Recommend (0)

Offensive

Readers' opinions (29)

Have something to say? Post your comment

Comments are moderated and will be allowed if they are about the topic and not abusive.

Characters remaining (1500)

7 Followers

4 Hours ago

Richie CBE (COIMBATORE)

Silver: 2737

16 Hours agoAnuja (Vadodara)

18 Hours agoM.V.APPARAO (Hyderabad)

36

29

Post YourComment

Share More

3

44

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

5 of 11 4/11/2013 3:48 PM

FMCG biggies such as Cadbury HUL ITC P&G offer big discounts to push premium products on http://economictimes indiatimes com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

6/11

fsdfsa Agree (1)

Disagree (0)

Recommend (0)

Offensive

Some people will not touch these fake foods even if they are offered free. Agree (2)

Disagree (0)

Recommend (1)

Offensive

i think the price of the 200gm toblerone has been mis-stated... Otherwise makes no sense,

u wud buy 2 200gm bars instead of a 400gm bar and it would still be cheaper...

Agree (0)

Disagree (0)

Recommend (0)

Offensive

Its consumer's time....!!! Agree (0)

Disagree (1)

Recommend (0)

Offensive

TO ENCOURAGE SALES Agree (1)

Disagree (3)

Recommend (0)

Offensive

Really I was thinking to stop sales. How did u become a Col. Agree (1)

Disagree (1)

Recommend (0)

2 Followers

22 Hours ago

Destiny Sdaf (Delhi)

Silver: 2476

22 Hours agoKumana (Patna)

1 Day agoAbhisek (Mumbai)

14 Followers1 Day ago

Nazeer Khan (Bangalore)

Silver: 3387

335 Followers

1 Day ago

COLRANBIRLAMBA Lamba (PTA)

Platinum: 55.6K

17 Hours agoSharma (India) Replies To COLRANBIRLAMBA Lamba

36

29

Post YourComment

Share More

5 5 3

4 5 4

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

6 of 11 4/11/2013 3:48 PM

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

7/11

Offensive

>>>SHARMA ALLU CHOR TEHKEDAR >>BLACK LISTED U >>

NOW FOUND JOB HERE AS CHAPRASI

Agree (0)Disagree (0)

Recommend (0)

Offensive

SHARMA ALLU CHOR TEHKEDAR >>BLACK LISTED U >> NOWFOUND JOB HERE AS CHAPRASI

Agree (0)

Disagree (0)

Recommend (0)

Offensive

thanx Lamba, we'd NEVER have guessed! you're so clever! you're so

smart!

Agree (7)

Disagree (0)Recommend (2)

Offensive

apsolutely good move on part of the palyers. they gain achieve the economies of scale by

prpducing and selling more and more at the lower cost which in turn could up to their

profitablity irrespective of the fact that the market growth has shunned from past few

months. more ever this could be also a good startegy for retaining the customers and

keeping a place in theri minds of their brands.

Agree (0)

Disagree (1)

Recommend (0)

Offensive

Less profiteering ,higher volumes. Agree (0)

Disagree (2)

Recommend (0)Offensive

335 Followers

8 Hours ago

COLRANBIRLAMBA Lamba Replies To Sharma

Platinum: 55.6K

335 Followers

8 Hours ago

COLRANBIRLAMBA Lamba Replies To Sharma

Platinum: 55.6K

36 Followers

1 Day ago

Kapsy (Melbourne) Replies To COLRANBIRLAMBA Lamba

Gold: 12.3K

1 Day agoSofi Younis (Srinagar, Jk)

1 Day agoSatya (Bikaner)

36

29

Post YourComment

Share More

2

5 5 3

5 5 3

44

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news by industry/cons products/fmcg/fmcg biggies s...

7 of 11 4/11/2013 3:48 PM

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

8/11

It is a good short term solution to gain new set of customers. However, in the long run all

depends on the purchasing power of people, which in turn is dependent on economy. One

can not expect a common man to purcahse a choclate worth Rs 430. The price should bewithin the reach of common man & then only customers will remain loyal, otherwise they

will purchase products only when discounts are offered.

Agree (3)

Disagree (0)

Recommend (0)

Offensive

i think such type of discount not to pick up the market as much as thinking rather the

market will be more little in its variance as in a result ultimately no better result comes in

retailing of FMCG as its customers all the time to like better quality no inclination to lower

price including discount, so what is need is to concentrate into how to improve our product

quality and also to continue such process until their goodwill could be purchased in the

market

Agree (0)

Disagree (0)

Recommend (0)

Offensive

i think such type of discount not to pick up the market as much as thinking rather the

market will be more little in its variance as in a result ultimately no better result comes in

retailing of FMCG as its customers all the time to like better quality no inclination to lower

price including discount, so what is need is to concentrate into how to improve our product

quality and also to continue such process until their goodwill could be purchased in the

market

Agree (0)

Disagree (0)

Recommend (0)

Offensive

Big profits on premium products.. discounts no big deal..certainly a way to raise MRP so

that the comsumersdo not feel the punch suddenly..On the other hand, the economy has

certainly slowed down and the tend is visible in all product categories..

Agree (0)

Disagree (0)

Recommend (0)

Offensive

i think they are struggling to increase volumes. And, with slowdown consumer spending is Agree (4)

1 Day ago

Growingup (India)

Bronze: 90

1 Day agoRajib (Kolkata)

1 Day agoRajib (Kolkata)

1 Day ago

Manish Jain (Delhi)

Bronze: 51

1 Day agoYakku (Mumbai)

36

29

Post YourComment

Share More

gg y, , , g p p p p y y p g g gg

8 of 11 4/11/2013 3:48 PM

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

9/11

coming down. Considering inventory and to push topline, such decisions are taken. Once

things return to normal, they will jack up the prices again. Best decision is to use these

products minimally and save. Do not get attaracted with such discounts. The money you

will save can be easily earned by making an FD for sometime.

Disagree (0)

Recommend (3)

Offensive

Let us not get fooled by these discounts. This is the actual value and inspite of this they

are still making profits. Having worked in the food industry, I am aware and know what is

the production cost and profits involved. No FMCG and that too foreign companies have

love towards India to give such huge discounts. Also I have seen the cost of the products

shown above and they are not actually so heavily priced. These companies want to take

India for a ride by saying we are bringing premium brands to India.

Agree (19)

Disagree (0)

Recommend (4)

Offensive

Yes you're right,i have worked for 1.5 yrs in an FMCG company and the

margins they have on each product is quite high,especially when you

express it as a percentage.The volumes of these products are

enormous,and HUL/ITC/whatever will still reap profits after offeringthese 'cosmetic discounts'

Agree (1)

Disagree (0)

Recommend (0)

Offensive

with more than 1000% margins what is big deal if they offer 20-70% off. Even after offering

so much discount they are minting money by getting higher, quicker turnover. Nice

Marketing strategies ....

Agree (2)

Disagree (0)

Recommend (0)

Offensive

Alarming situation.......Consumer spending power is decreasing and this will spell trouble

for the economy..........

Agree (0)

Disagree (0)

Recommend (0)

7 Followers

1 Day ago

Siva Ralla (Bangalore)

Silver: 1658

22 Hours agoRohan ( India) Replies To Siva Ralla

1 Follower

1 Day ago

Ashwinikumar Patil (Pune, Maharashtra)

Silver: 1449

5 Followers

1 Day ago

Aeidal20 (Gurgaon)

Silver: 2099

36

29

Post YourComment

Share More

2 3

2 3

2 2

44

gg y g p p p p y y p g g gg

9 of 11 4/11/2013 3:48 PM

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

10/11

Offensive

90% of consumer products can be reduced in price by half only if mamools and bribes paid

to the scumbag politicians and their goons are eliminated..why should soap or toothpaste

cost more than in the usa (after conversion)??stuff made with cheaper labour and local

materials???

Agree (5)

Disagree (0)

Recommend (2)

Offensive

Consumer is the KING. Agree (0)Disagree (0)

Recommend (0)

Offensive

CONSUMER IS A CUSTOMER >>CUSTOMER MEANS > DIE WITH AGONY>>CUST IS KING GOOD IN BOOKS

Agree (0)

Disagree (2)

Recommend (0)

Offensive

Col hey ke bhand marasi Agree (0)

Disagree (0)

Recommend (0)

Offensive

what awesome bakwas!! Agree (0)

Disagree (0)

Recommend (0)

Offensive

1 Day agoWhywhy (Usa)

164 Followers

1 Day ago

Mahendra Gaur (Jaipur)

Gold: 21.8K

335 Followers

1 Day ago

COLRANBIRLAMBA Lamba (PTA) Replies To Mahendra Gaur

Platinum: 55.6K

9 Hours agoSharma (India) Replies To COLRANBIRLAMBA Lamba

36 Followers

1 Day ago

Kapsy (Melbourne) Replies To COLRANBIRLAMBA Lamba

Gold: 12.3K

36

29

Post YourComment

Share More

2

5 5 3

2

44

10 of 11 4/11/2013 3:48 PM

FMCG biggies such as Cadbury, HUL, ITC, P&G offer big discounts to push premium products on... http://economictimes.indiatimes.com/news/news-by-industry/cons-products/fmcg/fmcg-biggies-s...

7/30/2019 FMCG Biggies Such as Cadbury, HUL, ITC, P

11/11

Get a Quote

Live Market News Portfolio Mobile Live TV Newsletter Commodities Speed QnA Blogs

Other Times Group news

sites

Times of India |

| Mumbai Mirror

Times Now | Indiatimes

|

Living and entertainment

Timescity | iDiva | BollywoodZoom | Healthmeup | LuxpressoTechnology | Guylife | OnlineSongs

Networking

itimes | Dating & Chat | EmailMensXP.com

Hot on the Web

Watch IPL Online | IPL 2013Pepsi IPL 2013 matchSchedule | Top Restaurants inDelhiUsed Cars in Chandigarh | BikePrice India

Services

Book print ads | Online shopping | Free SMS | Websitedesign | CRM | TendersMatrimonial | Ringtones | Astrology | Jobs | Property | Buy car | Bikes inIndiaUsed Cars | Online Deals | Restaurants in Delhi | Movie Show Timings inMumbaiRemit to India | Buy Mobiles | Listen Songs

About us/Advertise with us/Terms of Use and Grievance Redressal Policy/Privacy Policy/Feedback/Sitemap/Code of Ethics Copyright 2013 Times Internet Limited. All rights reserved.

Browse Companies

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z | 1 2 3 4 5 6 7 8 9

Home | News | Markets | Personal Finance | Mutual Funds | Infotech | Jobs | Opinion | Features | Videos | My Portfolio | Budget 2013

Clearly a shows that Indian economy has slowed down considerably and the cost of things

have gone out of the reach of common man, hence consumption has slowed leading to

price cut. Industry should reduce the MRP's as temperory cuts are not going to help the

common man.

Agree (0)

Disagree (0)

Recommend (0)

Offensive

11 Followers

1 Day ago

TJ123 (USA)

Gold: 5803

36

29

Post YourComment

Share MoreGet Quote

2

11 of 11 4/11/2013 3:48 PM