The introduction of a low-priced product into the product portfolio of a company can have many implications. Many a times it can change a company in many fundamental ways. Though even company introducing premium priced products , cannot afford to ignore many retailers while deciding upon the distribution network as for a company these may be a small retail top-up shops but in reality sales matter and these top-up shops generate more sales then organised firms.
One company which has gone through this sort of a paradigsm shift is Britannia industries. A premium biscuit and cookie manufacturer in the confectionary segment till the launch of TIGER biscuits. Tiger biscuit was launched in 1997 and brought a shift in the overall distribution and marketing focus of the company because tiger was pitched against PARLE-G Glucose biscuits , the Rs 40 per kg mass biscuits, a brand which gave the identity to biscuits and initiated its branding.
In the pre-tiger era there use to a gap between supply and demand for britannia biscuits, and the company had a laid-back approach towards distribution and in tier-II cities in the country a situation of non-avalibility of Britannia biscuits was always common . The launch of tiger biscuits brought the revolution in the company's supply chain management, the company was forced to think,that even their product had the potential still market share was questionable against Parle their was a need to act and distribute like a mass marketier and they ended up developing specific models for distributing Tiger biscuits in rural markets across the coutry....
with the introduction of the Rs1 Sachets of Tiger biscuits meant that the company had to even place the product in Tea shops and other smaller top-up shops where it would be cosumed with tea....
Today Tiger brand is a Rs 650 Crore plus brand in the market and the comapny itself has trasformed into a distribution powerhouse placing the PARLE into the tough situation...over the time...!!!
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