Power brands seek 'combo' sales

The retail marts are seeing the unlikeliest of combinations. FMCG major Hindustan Lever has tied up with biscuit-maker Parle. Breakfast cereal biggie Kellogg is paired up with Amul.

To be sure, Hindustan Lever's Taj Mahal Tea does not offer Parle biscuits as a freebie. Or a packet of Amul milk is not Kellogg's way of pushing cereal. It is only two unrelated companies pushing logical combinations for a price, or a discounted price at times.

The trend is not restricted to malls. Even international fast-food giants are getting into the act. While McDonald's tie-up with Coca-Cola is a part of international folklore, the former has explored new combinations in India.

Two months ago, McDonald's and chocolate giant Cadbury's India came together. The novelty on offer was, "Perk up your Happy Meal," where a pack of Cadbury's Perk was offered as a part of McDonald's Happy Meal.

According to industry experts, such offers are used to expand the ticket size ""value of the bill. From power brands to power packs seems to be the latest mantra for FMCG companies, as they perfect their act on the Indian retail scene.

A Mumbai-based consultant said: "Normally, impulse products are packed along with items that are a part of a planned purchase. That results in incremental sales." Another consultant added, "This strategy works well when companies want to increase trials for a new product without giving free samples."

Shankar Satappagol, business head, food and grocery, HyperCity, a hypermarket in Mumbai's distant suburbs, said sales numbers for special packs tended to be four-five times higher than normal sales in that category.

As most consumers shopped for the entire month, retailers pushed bundled offers that offered greater value to them. He added that bundling complementary products worked well for everyday purchases, while a lower price strategy generally boosted sales in the impulse purchase category.

There are other offers as well. HyperCity stocked a Hindustan Lever hamper with eight products, ranging from a dishwashing bar to sunscreen and premium toilet soaps, for a price of Rs 399. If these were bought separately, customers would have to shell out Rs 500.

The catch: even customers who would have skipped one of these brands were forced to buy the entire pack to avail of the offer. HyperCity claimed it sold 2,800 units of the special pack within the first month.