Marico's strategy aims at marking a presence in multiple price points which is also a strategy adopted by Hindustan Lever (HLL) whose Kissan `chhota jammy' pack is said to have spurred consumption, especially on the back of the promotional campaign featuring cricketer Rahul Dravid. The Kissan small sachet pack, also priced at Rs 2, was launched last year backed by the "chhota jammy" campaign. According to Marico Industries CEO (healthcare division) Pranab Datta: ``The Sil sachet has been test launched in the south. The company would first study the consumer response and then plan to launch the sachets in certain pockets of the eastern region.'' The price points in which Sil jams currently exist in the market place are 500 gm jar priced at Rs 46.50, 270 gm jar priced at Rs 28.50 and a 100 gm mixed fruit jam jar priced at Rs 11.75.

The sachet of Rs 2 would cover more or less all price points for the company. Sil, which was relaunched over a year back, has a market share of 15 per cent in the Rs 50-60 crore market where the total volumes are 600-700 tonne per month. Kissan leads in the category and commands a market share of 66 per cent.

Prior to the relaunch, Sil's share was under 10 per cent. The relaunch involved enhancement of appeal and convenience along with a change in the packaging design for the entire range. New formulations including jams with glucose have also been introduced in the market. The brand registered a 3 per cent growth in value during 1998-99. Marico's move of test marketing Sil jam in sachets comes in the wake of an excise duty hike on jams from 8 per cent to 16 per cent in the budget.

The hike in excise levels is expected to lead to increased price levels at a time when the sector is suffering from a degrowth. Jams were brought in the excise net at an 8 per cent duty level in the Budget of 1999-2000. This has led to a degrowth in the jams market following upward price revisions, say industry observers. The industry feels that a further increase in the excise level to 16 per cent this budget, could sound a death-knell for the sector. The launch of jams in sachets can, however, save the day presumably with consumers continuing to purchase jams as part of their regular food habits at a Rs 2 price level, point out industry analysts.