Sachets - Small Wonders Revolutionising Consumer Choices

Good things come in small packages. Remember the times, when shampoo became a mass market phenomenon, with small packs priced at unimaginable rates? Sachetisation became a rage and a variety of companies pushed more products through sachets to achieve success. Described as ‘tingy’ in size, a sachet is a small, sealed packaging made of single or multiple layers of plastic intended for one-time use. It can be used by an individual or family. Shampoos are the biggest beneficiaries of this culture, as 70% of the shampoo market is driven by low-price units.

Even today, an increasing number of brands are reaping the benefits of sachets. Sachets continue to register impressive growth year after year. They are literally the "Small Wonders" driving the FMCG industries. Brands like Nescafe, Ariel, Surf, Fair & Lovely, Maggi, Gillete, Rasna and even Haldiram’s chevda have tried the "sachet" strategy.

The sachet use has also grown due to the Indian tendency for top-up shopping. They avoid buying large packets that offer less value. Even in urban areas, consumers prefer low price units mainly because there is no incentive to buy larger packets. Sachets also give consumers a chance to try new brands as they are more likely to experiment with new variants in small packs.

Gujarat based Zydus Wellness was among the first to launch face wash in a sachet. This strategy can give big brands an advantage, especially in rural areas, where face wash is not regularly used. This can help brands explore new territories and capture the bottom pyramid in their product category.

Even hair colour creams adopted the sachet strategy. L’Oreal launched its hair colour, Garnier Black Naturals, at Rs.39, while other brands were selling at Rs.100. This gave Garnier Colour Naturals an advantage over other creams. In India, it helped target the lower end customers. Sachets are a game changer for marketers in the skincare and haircare categories.

Some brands also use sachets for cross promotion and convenience. The sachets are easy to carry and dispose off, which attracts customers. Brands rely on high margins and lower distribution costs but are focusing more on lower price units. Apart from earning from profit on the quantities sold, brands can also save on transportation and packaging costs that makes sachets profitable. Sachets prevent product wastage. There is no chance of food products like spices, coffee and drink mixes getting spoiled or wasted. These sachets help consumers use only what is needed and save money.

Want to learn more about marketing strategies? Follow Tiger Advertising, a creative agency in Vadodara, for interesting marketing insights!

Hashtag feminism has gone viral. Read the blog to know about Femvertising becoming the new Fad in Indian Advertising.