Answer to Question #263891 in Marketing for Vinutha Srinivas

Question

Parle Agro makes its entry into the dairy segment with a high quality and premium range of flavoured milk products – SMOODH. With disruption ingrained in the company’s philosophy, SMOODH becomes the only flavoured milk beverage in the market globally, to be available in 85 ml Tetra Pak cartons and priced at only Rs.10.suggest a suitable promotion mix for the new launch?

Answer 1

SMOODH is the only brand in the flavored milk category priced at an incredible value of Rs. 10. This gives Parle Agro the opportunity to break the pricing barrier, a factor that has hampered the growth of the flavored milk category in India. The price and pack size also enable Parle Agro to achieve high penetration and distribution for SMOODH.

SMOODH also meets the need of consumers looking for a quick energy boost or a quick sweet fix, equivalent to that of an Rs. 10 chocolate bite. Thus, with the unique and disruptive pack size and price for a chocolate milk beverage, Smoodh is sure to make an impact not only in the flavored milk category but in the Rs. 10 chocolate category as well, according to Parle Agro.

Since its soft launch, SMOODH has seen almost equal offtake in rural and urban markets, a phenomenon that has never been experienced by existing branded flavored milk brands in aseptic cartons as they don’t exist in rural markets. With this breakthrough combination in price and pack size, Parle Agro has brilliantly activated almost 80-90% of the rural market for flavored milk which has never been activated to date until the launch of SMOODH.