Page 166 - DMGT509_RURAL MARKETING

Unit 8: Rural Product Strategy

special tamper-proof packs for its deodorant spray ‘AXE’, whose nozzle can’t be detached from Notes
the body while Procter and Gamble uses special labels for its Vicks Vapo Rub which does not
peel off even if soaked overnight in water. This makes it difficult for spurious goods makers to
imitate.
Stopping the counterfeits market is a long process but it’s more important for companies to
create awareness among the consumers about the ill effects about such fake products and the
hazards they pose.

8.14 The Fakes Market

1. Look-alikes:
 The Colour scheme on packaging material closely resembles that of a popular Brand.
E.g.: Shagun for Lifebuoy and Lalita Amla for Dabur Amla
2. Spell Alikes:

 Names are subtly and cleverly misspelt
E.g.: Paracute for Parachute
Pome”s for Ponds

3. Duplicates:
 Exact Replicas of Original Brand
Fake products are increasingly contaminating the -1 lakh crore ( 1-trillion) fast moving consumer
goods market. They harm one’s health and also cost the exchequer nearly 2,700 crore ( 27
billion) annually, say analysts.
Almost 15 per cent of consumer goods sales in India is estimated to be of fake products.

In value terms, it stands at about 15,000 crore ( 150 billion). At an 18 per cent tax rate, the loss
to the exchequer is 2,700 crore ( 27 billion).
Despite efforts to curb counterfeiting of FMCGs, it remains rampant, especially in rural areas,
where consumer awareness is low and the ability to track shipments is poor.

Table 8.1: Comparison of Different Categories of Fakes

FEATURES DUPLICATES SPELL-ALIKES LOOKALIKES
Brand Name Original Misspelt Different
Pack appearance Replica Identical Similar
Manufacturer's Original Incomplete Own Nam
address
Price M.R.P 40% low 10-15%
Margins 200-300% 100-150% 60-70%
Quality Very poor poor Reasonable
Intention of retailer To cheat To mislead To freeload
Consumers unaware unaware Want cheaper products
Consumers none Only literate Majority
Other none discounts schemes

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