After Cola, Mukesh Ambani is now ready to create a stir in the snack market, know the new strategy of competition…
Mumbai. After creating a stir in the Cola market by acquiring Campa Cola to compete with Pepsi Cola and Coca Cola, Mukesh Ambani is now preparing to create a stir in the snacks industry through Reliance Consumer Products. The company is also increasing trade margins on its chips, namkeen and biscuit brands to attract distributors and expand its market share along with product pricing.
To attract more super stockists, distributors and retailers, Reliance Consumer Products has significantly increased trade margins. Sources said that the company is giving 6.5% margin to super stockists and 8% margin to distributors.
Meanwhile, retailers can now earn margins of up to 20%. This new margin structure offers almost double the normal industry standards, setting Reliance apart in an already competitive market.
In contrast, competitors typically offer margins of 3-5% to super stockists, 6-6.5% to distributors and 8-15% to retailers, making Reliance's margins much higher than the norm.
By doing so, Reliance is encouraging business networks to prioritize its products, potentially disrupting India's snack market.
What are the Reliance Consumer Snacks brands?
Snactac
Alan's Bugles
Independence
Aggressive efforts in FMCG sector
Reliance's move into the snacks category comes after its success in the cola market with Campa Cola, where competitive pricing forced rival brands to reduce their prices. With this second strategic move, Reliance is determined to expand its presence in the fast-moving consumer goods (FMCG) sector.
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