Sunday, January 14, 2007

Premium milk and Construction workers

Sometimes, brands turn up in the most amazing of spaces. Imagine what turned up in a high construction zone (outskirts of Bangalore) and has a large migrant population (BTW, guess who are the newest construction labour - labour from the north east) from the north/north east.

A product that I have often seen these people pick up regularly is this: Nandini, premium milk and its available ranges. This milk is significantly more expensive than the regular milk available outside. The price differential is almost 3-4 rupees a litre - a significant difference for daily wage workers. As a bonus it has strong packets that are quite sturdy which means the risk of losses due to leakage or handling is very low. These people dont have refrigerators nor will they buy milk regularly. So a daily supply from a milkman is out of question - you have to buy bulk coupons. They could buy daily from a shop but the risk is that it could get spoilt.

But not this range of UHT milk. It has a long shelf life (180 days or so) and can be drunk without having to boil it. So, the premium they pay is worth the convenience and savings on time/fuel. I am sure Nandini did not create this brand keeping construction (read the link - the target audience is diabetics, health conscious people and one variant was launched by a doctor) workers in mind, but then, brands like water, find their own level.


Prasanth said...

I have also noticed this trend. Whoever said that Indians do not by "premium" goods obivously got it wrong. If there is a value proposition, i have noticed that the price is not a big factor. Just look at the expensive mobiles people use for example.

Neelakantan said...

Its not about Indians not buying premium stuff - that obviously is wrong - Indians seek value and pick value - not sure if cellphones fit there :)

The point here is that the intended target audience, probably never buys the premium milk - it was probably identified as a need there. But another audience, not even a factor, is actually consuming it. Not sure if a study showed migrant workers a target audience for premium milk, how many would accept it.

Flyhigh said...

Interesting stuff!