The trade offs in hard ball tactics
Saurabh quotes two reasons why Cadbury must care enough to be on Big Bazaar shelves. One, the possibility of 'future consumption' and therefore the purchase of a large pack of Cadbury chocolate which could later be gifted or even consumed. Two, the visibility Big Bazaar shelves provide, could aid brand recall resulting in the purchase of the Cadbury brand when a decision on immediate consumption or even future consumption is made.
Both points make good sense. Yet a certain question lingers, at least when the first point is considered. It refers to the Big Bazaar customer profile. Are these the kind that engage in gifting large packs of chocolate or are they more of the 'Indian sweet' consumers? Can their incomes get them afford purchase of large packs? Remember, chocolates are costly.
Sure visibility helps, but should it be sought at the cost of bowing to the wishes of a retailer whose clout seems to be growing? Add the looming prospect of never being able to dictate terms should Cadbury back off this time around and the idea seems unpalatable.
No easy decision there for Cadbury. For the moment, they seem to have taken Big Bazaar head on. The aftermath sure will be followed keenly both by Indian retailers and manufacturers.