Bottle vs Sachet
Lets take Shampoo as example
Why in India? Shampoo sachets are cheaper than Bottle.
sachet is made of cheap thin PET (Polyethylene terephthalate) plastics whereas bottle is made of thick PET plastics and its cap made of thicker (Polypropylene). Outermost package which is used for transport are brown colored boxes (fibreboard boxes). Cost of one box is around 30 rupees and designed to hold around 25-30 bottles while same size of box can contain hundreds of sachets. So this makes cost of outermost packaging per selling unit (sachet/bottle) much lesser for sachet and also make transportation cost cheaper for sachets than bottles.
But this is not explanation to why in India? right,
India is a country with huge market value. But it is developing so most of the market from middle class and below middle class families. These families are earning per day, week and monthly. Buying shampoo bottle is costly for them. These shampoo companies know very well that to penetrate these huge markets in developing countries like India and china they have to sell their products in cheap. Obviously manufacturing shampoo sachets are cheaper and simple than bottles. But this is reverse in developed countries like US and EU. Here shampoo sachets act as sample product and it is highly priced than bottles. If the consumer like the sample then they move towards bottles.
Rich buy bottles in departmental stores with high margin and poor buy sachets in petty shops with low margin.
Lazy Answers:
Is shampoo sachet and bottle from same formula?
No, Sachets has mild version than bottles.
What should I buy? Sachet or bottle
Its your wish, but buying shampoo bottle has price on both shampoo and costly bottle.
What are the other products have same kind of strategy?
FMCG like Cosmetic creams, Tooth pastes, Conditioners, detergents, oil, coffee and tea sachets etc.,
What is more profitable for manufacturers?
Bottles, It has high margin.
Do you know I am Marketing a product here, but I am not paid :(
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