Parle Agro aims for low-income households with the new 'Mini Frooti' offering

The brand’s Rs 5 carton pack has taken a new shape. Parle Agro's head of marketing breaks down the strategy behind its growth.

Frooti, a beverage brand under Parle Agro, has launched "Mini Frooti," a compact 65ml offering priced at Rs 5. The new launch sees Frooti’s earlier triangular packets repackaged in a rectangular form, for the same price point.

The brand has also unveiled a new campaign, titled Too Much Fun, for ‘Mini Frooti’ featuring Bollywood actress Alia Bhatt. However, with conversations around the new offering, the concept of sachetisation has sparked mixed reactions. While some perceive it as a strategic move to democratise products and tap into new consumer segments, others question its efficacy in quenching thirst or providing satisfaction.

Ankit Kapoor, head of marketing & international business at Parle Agro, is of the opinion that there is still a big market for such price points, especially in the low-income strata of the Indian populace. The brand has chosen to bank on volume to generate growth, as opposed to hiked prices to amplify value.

He says, “Rs 5 continues to be a key price point within the impulse category in the below one lakh population strata towns, particularly amongst the teens and kids. Not to forget that over 70% of Indians live in these regions and they are aspirational, aware and waiting for brands to offer a proposition. It is therefore a huge opportunity for us to serve this segment of value-seeking, aspirational consumers at an accessible price point.”

The entire Frooti portfolio consists of Rs 5 and Rs 10 carton packs, followed by PET bottles including servings of 300ml, 600ml, and 1.2L. The smaller offerings in Rs 5 and Rs 10 hold a key responsibility of acquiring new consumers, as per Kapoor.

Kapoor explains, “Our strategy is to drive volume-led growth across the country. The Rs 5 packet will play a key role in acquiring consumers early and taking the brand deep into Urban India. For Urban India, the Rs 5 packet will help own a moment of consumption by entering the school bags and the tiffins due to its small size. It will be the perfect post-snack dessert in school for the kids.”

Finding the right price

Parle Agro has experimented with small servings at lower price points with other products as well. For instance, Parle Agro's flavoured milk ‘Smoodh’ was also launched at a price point of Rs 10 for an 85ml serving.

The price points, along with the portion sizes are an outcome of rigorous consumer research, as per Kapoor. Kapoor elaborates, "We observed that disposable incomes of households in the below one lakh population strata towns are below Rs 2.5 lakhs per annum, posing a challenge for them to invest in higher-priced stock keeping units (SKUs)." This insight highlights the need to offer cost-effective options that align with consumers' spending capabilities.

The brand aims to find success in the market with its offerings while other brands and competitors are premiumising their services. He adds, “Majority of the brands have been tackling the sustained inflation since the last three years. The impact of that has been price increases with a focus on premiumising the portfolios. In the process, the majority of the consumers have been left unserviced with the right proposition. At Parle Agro, we’ve been focussed on optimising the value chain and finding efficient ways of creating disruptive propositions. Both Smoodh and the Rs 5 Frooti are a result of that.”

Alia Bhatt and her Frooti

The new campaign for Mini Frooti sees the Bollywood actress engage with some small action figures (called minis) while sipping on some Frooti against the backdrop of the brand’s iconic ‘Fresh N Juicy’ jingle. The visuals of the ad film are reminiscent of Nickelodeons or Cartoon Networks of the world, perhaps hinting at the potential target group of the brand- the school-going kids.

Speaking on the collaboration with Alia Bhatt, Kapoor expresses, “Frooti stands for fun and freshness that triggers innocent mischief. The sweet tangy taste of Frooti is the perfect trigger to create these mini moments of fun. Alia, with the Minis, who are craving a sip of Frooti, is able to showcase just that in the campaign, while the “Fresh N Juicy” jingle evokes nostalgia amongst a generation that has grown up loving the fresh taste and fun of Frooti.”