In today’s growing and vast FMCG landscape, pricing plays a crucial role in defining a brand’s success story.

It’s not just about setting a number; it’s about understanding consumer behaviour, market dynamics, and the brand’s unique value.

As competition intensifies and the cost of raw materials fluctuates, brands that strike the right balance between affordability and profitability are the ones that stand out and thrive.

Modern Indian consumers are informed, experimental, and value-conscious. According to recent lifestyles, consumers are willing to pay more for products that offer superior quality and convenience. This shows that perceived value often trumps price sensitivity.

Our pricing strategy has always revolved around delivering freshness, hygiene, and authenticity rather than competing solely on cost. Consumers recognise the difference, which in turn has helped us maintain both loyalty and healthy margins.

One of our biggest learnings early on was that price-led competition is short-lived, but value-led differentiation endures.

This shift in thinking helped us build long-term trust instead of chasing short-term volume spikes. 

Smart Pack Sizes: Meeting Every Wallet

In India, affordability and accessibility go hand in hand. One of the most powerful levers we’ve used is pack size innovation.

Smaller SKUs help first-time buyers experience the brand without hesitation, while larger value packs reward loyalty and repeat purchases.

For instance, our ‘5-Minute Gravies’ were first introduced in small single-serve packs at a very reasonable entry price. The response was overwhelming. We noticed a clear consumer upgrade trend over time, with many switching to larger combo packs after their first trial. This validated our belief that accessibility drives adoption, and experience drives retention.

However, developing this strategy wasn’t without challenges.

In traditional retail, smaller packs had faster rotation but lower margins, while in modern trade and ecommerce, larger SKUs performed better but required higher upfront stocking and logistics costs. It took multiple pricing experiments across distribution channels to find the right equilibrium between rotation and profitability.

Technology: The Backbone Of Efficiency

Pricing strength often begins with operational efficiency. Technology, for us, has been the backbone that makes competitive pricing sustainable. From automated blending to temperature-controlled packaging, every investment in process improvement has helped us optimise costs and reduce wastage.

For example, our ‘Cool Grinding’ technology not only ensures product purity but also minimises production inefficiencies, allowing us to maintain consistency across batches. This process preserves the natural aroma and essential oils of spices.

It has allowed us to create a strong value proposition. This approach aligns with a growing FMCG trend: brands that digitise and automate early can control costs up to approximately 10–15% better. 

Premiumisation: Creating Space for Every Consumer Segment

The FMCG industry is witnessing a clear premiumisation wave. Consumers no longer just buy products; they buy experiences, stories, and the values that accompany them.

We tapped into this shift by introducing our Specialty Spice Blends, curated using advanced grinding and mixing technologies while retaining the essence of ‘Khade Masale’ (whole spices). These blends appeal to consumers seeking authentic taste and freshness, helping us strengthen our positioning in both urban and tier-II markets.

A key insight here was that premiumisation doesn’t necessarily mean high pricing — it’s about justifying the price through perceived value, storytelling, and consistent quality.

For instance,  with our touchless automated processing, and zip-lock multi-layer packaging, we have successfully differentiated ourselves in the competitive spice market. These quality-driven features justify its premium positioning and help build consumer trust, setting it apart from unorganised and lower-cost players.

The Challenges: Finding the Sweet Spot Across Channels

Every distribution channel provided us with unique pricing insights.

• Ecommerce customers were highly price-comparison driven, so value bundles and combo offers worked better than discounts
• Modern trade demanded attractive shelf pricing and in-store visibility investments, which initially compressed margins
• General trade retailers, on the other hand, sought quick-moving SKUs and stronger margins to maintain shelf presence

Balancing all these dynamics required continuous learning and recalibration. We learned that pricing isn’t static — it’s a living strategy that evolves with consumer behaviour and competitive moves. Also, not all growth is good growth; pricing must align with brand identity.

What Has Worked For Zoff Foods 

• Digital-First Approach Through D2C & Online Channels: We strategically began our journey through digital and D2C platforms, leveraging ecommerce and quick commerce to reach consumers directly. This approach allowed us to experiment with product mixes, test price points, and gather consumer insights with agility without the heavy infrastructure costs of a traditional retail setup.
• Smart Portfolio Strategy With Tiered Offerings: Our product strategy combines affordability and aspiration. Entry-level price packs and value combos attract first-time buyers, while premium collections, like dry-fruit gift packs, appeal to discerning consumers seeking quality and convenience. This tiered structure not only widens the brand’s reach but also optimises overall margins. Also, India’s diversity makes pricing strategy both challenging and exciting. A one-size-fits-all approach rarely works. Successful brands customise their pricing models to suit local purchasing power and market conditions.
• Phased Expansion Across Distribution Channels: Instead of scaling all at once, we adopted a measured approach, first consolidating our online and quick commerce presence before expanding into modern trade, general trade, and kirana outlets. Our recent foray into ready-to-cook gravies and marinades, available through partners like Reliance Retail, reflects this well-paced, cost-efficient channel growth.
• Retailer Empowerment Through Trade Schemes & Digital Tools: Recognising the importance of strong trade relationships, we use retailer engagement platforms like Badho to connect with kirana stores, offer attractive trade margins, and run incentive schemes. This digitally enabled approach has helped the brand build trust with distributors and ensure faster shelf movement for its products across markets. 

Looking Ahead: Competing With Purpose

The future of FMCG pricing will be shaped by innovation, adaptability, and purpose. Brands that combine consumer empathy with operational excellence will continue to thrive despite cost pressures.

Our belief is simple: price may attract, but value retains. By staying true to our mission of delivering freshness and quality with every pack, we’ve learned that sustainable growth isn’t about lowering prices; it’s about elevating consumer experiences.

As the FMCG landscape evolves, brands that stay true to their purpose while mastering the art of value-based pricing will define the next chapter of success.