By Joan Wambui
In summary
- The company has launched a 10gram Skittles that will competitively position it in Kenya’s price-sensitive ‘kadogo’ economy
- Kadogo is a Swahili word that translates into small. It is used in relation to the Kenyan economy to refer to the price sensitive mass market
- Resizing of product packaging allows brands to lower their price points and offering the same great experience to the consumer
- Wrigley EA is keen on tailoring its market strategy to align with the unique market realities in the geographies in which it operates
Wrigley East Africa has launched a 10-gram Skittles pack targeting the kadogo economy, Kenya’s price-sensitive mass market. The resizing of Skittles, an internationally renowned brand of fruit flavored sweets, is aimed at competitively positioning the brand in kadogo economy.
Kadogo is a Swahili word that translates into small. It is used in relation to the Kenyan economy to refer to the price sensitive mass market, where brands package products in unconventionally smaller packs in order to lower price points and drive sales.
Resizing of product packaging allows brands to lower their price points and offering the same great experience to the consumer as with the bigger packs.
Until the launch, the smallest pack of Skittles in Kenya was only available in a 38 grams pack. The recommended retail price for the 10 gram pack is Kes 20, compared to the Kes 55 for the 38 gram pack.
Regina Karani, the Brand Director Developing Markets and Middle East &Africa for The Wrigley Company, noted the move is driven by research and insights about the growth potential of the kadogo economy.
“The kadogo economy is an interesting Kenyan concept that has challenged us to our market strategy for Skittles. As an international company, we are keen on tailoring our market strategy to align with the unique market realities in the geographies in which we operate,” said Karani.
Kenya is undergoing a rapid growth in population and urbanisation, a development that has increased the size of the consumer market. A general increase in income levels has also led to an uptick in consumer spending.
A recent study by Oxford Business Group (OBG) says the average value of consumer spending in Kenya has risen by as much as 67 percent in the last five years, making Kenya the fastest growing retail market in Africa. Repackaging for the Kadogo economy, gives Skittles a fairer chance of capitalizing on the increase in consumer spending in the market.