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

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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.