An Exploratory Study of the Sachet Marketing Strategy: Insights That Can Be Drawn From the Philippine Experience

Document Type

Article

Publication Date

2009

Abstract

Sachet marketing, or the effort to increase market penetration for one's product by making it available in smaller, more affordable packs, is usually seen as primarily a tool for penetrating the market at the bottom of the economic pyramid. Thus, the existence of an economic underclass is usually assumed not just to be a necessary but also a sufficient condition for the successful implementation of a sachet marketing strategy. This exploratory study of the experience in the Philippines challenges this idea, and outlines a possible theoretical framework with which to evaluate firms' sachet marketing strategies. While the prevalence of poverty is a necessary prerequisite to the successful implementation of a sachet marketing strategy, there are a number of other critical success factors: the presence of an extensive retail distribution system, favorable socio-cultural factors, higher perceived value by the consumers, and the ability to bring down the cost of sachet sizing, typically through packaging innovation.

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