There is change. And there is going to be no change!
The change I am referring to, as is evident on the screen, is in this blog – relaunched; hopefully rejuvenated. Yet another of my unflinching attempts to start afresh; to start anew; to be constant, consistent and customary. Will I keep my word this time? I want to. I will. I hope!
But the change I wish to talk about is ‘change’ that is not going to be around. As you would know, RBI will withdraw 25 paisa coins from the market starting today! These coins will not be in circulation and can’t be used as legal tender for payment. Soaring metal prices and rising inflation have made these coins unviable, they say. Change is here, ironically, by not being there anymore!
Wonder what it means to us marketers. Here are a few possibilities and pitfalls. Feel free to add to this list.
What happens to sachet brands that are priced at Rs. 1.75 or Rs.2.25? Either they have to move their prices backwards, say to Rs. 1.50 (which would squeeze their profits) or move up to Rs. 2 (which might pit them against their closest premium brand jeopardizing their market share).
A favourite price promotion resorted to by many sachet and low-priced brands was ’25 paisa off’. Not any more, I suppose.
Lower SKU brands like 20 gm talc packs, toothpastes, shampoos etc., now have to jump 50 paisa at a time, when they wish to increase their prices. Would it not make them think twice about increasing prices from now on?
What about Bata? They obviously can’t continue to price their products like they normally do, say Rs.1095.95! God bless their souls (my pun be damned!)
Forget marketing for a minute. The bigger problem in all this, as I see, is among the small-scale philanthropists among us. Let them not think of sparing their change on beggars. Lest they wish to get them….thrown back at their kind faces!
