Embracing BoP market: Increasing sales by widening target groups base while bridging gaps
By: Dehab Mehari
The situations and opportunities…
Under the dairy sector, 2SCALE has been working with the Family Milk since January, 2016. Accordingly, so far, direct dairy focused technical as well as capacity building trainings and empowerment related activities have been carried out i.e. capacitating milk supplying farmers on improved dairy management (on concentrate and fodder utilization), setting up concentrate feed distribution system for the farmers on a credit base, setting up a veterinary service delivery system.
On the other hand, considering the existing milk market, and acknowledging the lack of alternative product options targeting BoP markets, the following consequent gaps have been identified in relation to BoP consumers;
- Insufficient milk consumption
- Unpasteurized /Unhealthy milk consumption
Furthermore, bearing in mind the market competitive advantage that any company can achieve by having different product types, and consequently contributing to its total product sales, in addition to accessing the high and untapped cumulative purchasing capacity which is available among the low income population groups, 2SCALE has been working together with contributions from Family Milk, in following a pilot set to introduce milk based BoP product.
What have been done…
Accordingly, various activities have been carried out aiming to avail a pasteurized 250ml packed milk, for BoP consumers to consider as alternative options with smaller sizes and lesser prices compared to the already solely existing pasteurized packed milk sizes i.e. 500ml in the market. In line with 2SCALE project set activities, the core actions carried out at the Family Milk factory level include packaging machine adjustments to accommodate 250ml packing and plastic pouch purchase.
Besides, following the test productions, intensive promotion and activation activities mainly targeting small outlet shops and schools were carried out to ensure win-win relations for BoP consumers (getting healthy & affordable milk), Family Milk (increase sales while bridging gaps in new target group), and for 2SCALE pilot success. The main activities include distribution and placing of Stickers mainly to shops (with picture showing the new 250ml milk, in addition to the 500ml, as an alternative product available in the market), Road Shows, Radio advertisements, and school activations at public schools, addressing students and school members, facilitated by well-known artists. Furthermore, the new small size milks were freely distributed as samples during activation events at school and during road shows. The overall message content of the activations focus mainly on the general benefits of regularly consuming milk especially by children while highlighting the specific minerals and vitamins in it, in addition to disseminating the news of affordability and accessibility to BoP consumers in relation to getting the new smaller pack 250ml Family Milk with lesser price in the market.
Since the recent launch of 250ml Family milk to the market, January 2018, the company managed to make 59,894pcs (14,973.5 litters) of milk sales only in limited locations due to product shortage despite the witnessed high demand for the product from many shops.
Thus Family Milk is already well convinced about it making the right decision in embracing the BoP market, with near future plan to further increase the production and distribution of this new 250ml BoP milk product in order to reach many distribution locations and at the same time, increase their sales figures.