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• Housewives - Most FMCG products target housewives by offering value for money to them. It helps them expand their consumer base. They are the brand switchers, which can be tapped easily.

Reasons for Keeping the Five-Rupee Price Point

Inflation and Other Economic Factors

With ever-increasing cost of raw materials, overheads and fierce competition to provide quality to the customers coupled with inflation, the one-rupee and two-rupee products have been completely taken over by a five-rupee product. Even the products earlier as well as presently priced at Re.1 can be found in attractive pack, as a pack of five at Rs.5. For example - Centerfresh chewing gum is also available in single packs apart from a pack of five priced at Rs.5. Instead of buying five centerfresh individually, many a times people prefer buying in pack.

Rural Reach

With almost explored urban sector, in rural sector lies the key in the near future. To penetrate into the rural areas, an affordable price point like that of PAANCH works wonders. Probably, keeping this very factor in mind, the Paanch advertisement showed Aamir khan in the dhabhaa shop of a village.

Easy Availability of Five-Rupee Coins as well as Notes

The easy availability of five-rupee coins makes it easy for the consumers to buy products. Five-rupee coins were introduced in mid 1990s and have well-penetrated in each and every nook and corner of the country. Though five-rupee notes are not very famous but as per RBI, "It has been decided that notes in the denomination of Rs.5 be re-introduced so as to meet the gap between the demand and supply of coins in this denomination."

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* Contributed by -
Mayur Mayank,
PGP-II (2004-2006),
Bharathidasan Institute of Management, Trichy.