Biscuit maker Parle said it expects the Mahakumbh to be an opportune time for firms to attract consumers. Following two straight quarters of rising rural demand, despite subdued urban markets, packaged goods makers are intensifying efforts to enhance their visibility and engagement at the 45-day religious event where millions gather everyday to take a holy dip in the Triveni, the meeting point of three rivers Ganga, Yamuna, and the mythical Saraswati. The event, which began on 13 January, concludes on 26 February.
“We are participating in the Mahakumbh mela; Uttar Pradesh happens to be a very populous state and a high-revenue contributing market for us. We have geared up with a critical quantity of our products. Our distribution across the state and the mela remains very strong. We think it's an incredible consumption occasion especially to sample across rural consumers as people travel from neighbouring states,”Mayank Shah, senior category leader, Parle Products, said.
This year's Mahakumbh, that happens once every 144 years, is expected to see over 400 million visitors, much higher than the 250 million seen at the 2019 Kumbh Mela. To handle this massive inflow of devotees, the government has reportedly allocated ₹5,000 crore to improve infrastructure, security, and sanitation.
“With crores of people expected to visit the 45-day event, we do expect an uptick in demand for products such as tea, biscuits, toothpaste and instant noodles. This quarter will easily see an uptick and a positive influence of the mela on FMCGsales. We are already seeing distributors report at least 2x to 10 x jump in their business from the region. We are seeing new launches with a lot of on-ground sampling,” said Dhairyashil Patil, president of All India Consumer Products Distributors’ Federation.
The Mahakumbh is among the largest religious gatherings globally. It serves as a prime opportunity for India Inc. to market their products to visitors who hail from diverse socio-economic backgrounds. Marketing strategies include on-ground activations, such as free product sampling of soaps, toothpastes and packaged foods, hygiene stations offering soaps and sanitizers, health and hygiene brands offering filtered water etc.
“With an estimated 8 crore visitors in just over a week, the Mahakumbh stands unmatched in terms of its captive audience. This grand event offers brands an unparalleled chance to engage with consumers in an immersive environment, and quick commerce and FMCGplayers are seizing this unique opportunity to make their presence felt,” said Puneet Avasthi, director, specialist businesses and insights, South Asia, Kantar,
Companies are also deploying digital advertising via mobile apps and geo-targeted campaigns, analysts at Jefferies said in a 16 January report. This comes as consumption in urban markets is under stress. Firms hope the festival will help buoy demand.
For the December quarter, analysts at Nuvama Institutional Equities expect FMCGfirms to report low-to-mid single-digit volume growth.
Dabur India is sampling brands such as Hajmola and Lavanbhaskar Churna at the mela. "While the space may seem cluttered, it actually offers companies the opportunity to get consumers to touch, feel and experience their brands and build greater connections. This will generate sales in the days to come,” said Mohit Malhotra, chief executive officer, Dabur India. It has set up Dabur Dant Snan zones in prominent akharas.
For an extended version of the story go to livemint.com