| Abstract: | Heavy competition in India in almost all product categories, due to diversification by large and medium companies and increased entry of multinationals, has restricted the growth of domestic companies. Previously, large companies enjoyed high profit margins by targeting premium priced products in the upper strata of Indian society. High levels of competition from equally reputed brands have not only decreased the companies' market share but also created price wars, reducing profit margins and limiting market growth. This has motivated companies to consider the lower classes and the rural segments, which they had previously ignored. By targeting these segments with products in small packs at lower price points, companies have experienced great success. At the same time, small packs also pose some challenges for the companies. This paper explains the importance of small packs for market expansion in various product categories within the Indian market, drawing on several examples to support the views of the authors. Copyright © 2004 Henry Stewart Publications. |
