Amul to Launch New Fixed-Price Edible Oil Pack Amidst Rising Inflation
In interference with the edible oil retailing cooperative major Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF) has launched a fixed-price retail pack of refined cottonseed oil for Rs 100.
Under the brand ‘Janmay’, the Amul marketer GCMMF sells six varieties of edible oils. According to the dairy major, this new initiative will make edible oil prices more realistic for consumers.
Jayen Mehta, Managing Director, GCMMF said, “Normally, edible oil prices fluctuate every day, and generally, in retail packaging, there is a difference between the trade price and maximum retail price (MRP). Companies keep this difference to absorb any price variations. So, at any point, the consumers don’t know the right price of the edible oil and we are changing this keeping the retail price fixed.”
With 650 ml of refined cottonseed oil, the newly launched pack comes at Rs 100.
Also, Mehta told that “The Volume changes depend on the change in the market price. We have removed the inflated MRP so that our customers get the best quality oil at a reasonable price. The Delta here is 25 ml and based on this, the changes in the prices display the quantity of the pack.”
The Amul Marketer has drawn inspiration from consumer behavior at petrol pumps where they ask for fuel worth a certain value at Rs 100 or Rs 2,000 instead of asking for a certain quantity. He also said that this is the best way to get value for money for the consumers. Currently, GCMMF sells this pack only in Gujarat and is further planning to roll out in different states soon.
GCMMF keeps a week’s stock for the Rs 100 pack in order to allow consumers to get the most reasonable price and quantity anytime. It also assures price parity for the cooperative major. However, the concept is not entirely new in the FMCG market. Often, soap players are found playing with the quantity.
According to Sourav Borah, Assistant Professor, Marketing at the Indian Institute of Management, Ahmedabad believes that it might backfire as consumers may not be able to process the complex information about the prices and quantity and might end up feeling cheated.
Borah also said, “the approach here appeared genuine and they want consumers to benefit but such innovative techniques in marketing require heavy advertising budgets. And, if you can explain to the consumers about the commodity prices going up, they won’t mind either.”
The New pack targets consumers who mostly prefer to buy lesser quantities by spending less. In the year 2020, the Janmay range of edible oil was launched under sunflower, cottonseed, mustard, groundnut, and soya bean varieties.
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