MAY 10: Much of Inalsa's success in rapidly growing the food processor category has happened after the launch of the `Maxie' brand of food processors in September 1999. What helped it achieve this was its two-fold strategy: aggressive pricing and a marketing blitz to build a generic brand and bolster it with promotions and demonstrations.Research showed that the deterrents to the growth of the food processor market were: perception of the product being elitist and complex; and steep pricing-with the average price being Rs 5,500 against the entry level price of Rs 2,500 for a branded mixie. Consumers also found the name food processor to be too complex and difficult to identify with.
Pricing: Inalsa targeted the price issue by exploiting its advantage of having a 100 per cent manufacturing unit. With modifications in design, sourcing and efficient production, besides integrating the company's various manufacturing facilities and functions under one roof at its NOIDA facility, for greater productivity and cost efficiencies, it was able to reach a much lower price point-Rs 3,600 from its earlier Rs 5,500.
That done, the next step was to grow the market by targeting the mixie market. Of the total 5 lakh units mixie market, it identified the 2 lakh branded market as its target for converting to food processors. Even a two per cent conversion would double the market size for food processors. With a Rs 2 crore ad budget it took on the mixie market headon with an aggressive campaign centred around the proposition: `Inalsa Maxie kare itna kaam, bhool jaoge mixie ka naam.'
Consumer perceptions: Its next step was to overcome apprehensions on the product and educate the consumers. It decided to rechristen the food processor with a more consumer-friendly word. So it zeroed in on Maxie, which was phonetically easy on the tongue and conveyed it was more than the mixie, the category it was targeting.
Recognising that market size was being hampered by product ignorance, it made `demonstrations' an important part of its strategy.
Copyright © 2000 Indian Express Newspapers (Bombay) Ltd.