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Small Packs and Less Weight -Strategies to combat Economic Slowdown

All Major bakery manufacturers in India has adopted twin strategies to tackle economic slowdown and rising cost of raw materials . If consumers have notice that even if they are paying the same price of the same brand and pack the weight has been reduced to few grams . These weight reduction method is the best method for bakery manufacturers as it helps them to avoid raising product price .

Britannia , ITC , Parle they all have adopted this strategies the 100gm packs are reduced to 90g,85g,or 65g Similarly 200g packs are reduced 181 g, 175g etc . These process of weight reduction doesn't cost much to the manufacturers as only packaging material needs to be changed or in case in addition to packing changes dimensions of products are also changed . Few manufacturers have also diluted the recipes of their brands to cope with increasing price pressures from raw material or substituted raw material of lower cost .

Small packs in denomination of Rs 2 , Rs 3 , Rs 5 have been launched by all major companies . you can get biscuits and cakes in small pack s .Manufacturers have reasons to do this as economic slowdown has impacted consumers buying habit .People are reducing expense s on snacking and other s non essential food items .Competition in bakery sector is so fierce that any price increase has negative effect and consumers readily switch's over to the competitors brand .

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