Storyboard18 | Ad budgets won't take a major hit due to the price hike: Mayank Shah, Parle Products

The primary objective behind the campaign is to reinforce the brand identity as an ‘enabler’- an enabler for first-time conversations. The campaign highlights the feeling of teenage romance that is often felt during adolescence. It positions the brand as a friend and an enabler or even as a cupid which will help you to break the ice and strike a conversation.

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It is a nice coincidence that we are launching it around Valentine’s Day. But if we talk about the legacy of the brand, the insight that we worked on was typical if you talk about young innocent teenagers which are the primary target audience for this brand, once they move from a school to junior college, it is completely a different world for them. They are very conscious about it. They are also conscious about whom they should talk to, whom they should approach, etc.

But the fear of rejection, a consciousness about whether you will be able to strike a good conversation with him or her keeps you away from approaching somebody and talking to them. And that is where the brand comes in.

As of now, there are at least one or two price hikes taken by almost all companies. And we haven’t seen any major impact on consumption. There are two reasons behind it.

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First is a certain amount of revenge buying. There’s that feeling among consumers having gone through the first two waves of the pandemic, they are ready to go out and spend. It's about 'living for the day' rather than saving for tomorrow.

Somewhere we are moving towards this philosophy of living for the day rather than saving for a rainy day. Secondly, consumers are rational. When they see prices of commodities going up they also understand that there would be an increase in the prices of finished goods.

We need to look at rural growth through the prism of two years. We saw rural markets growing at a phenomenal pace last year. Over that higher base, we saw further growth and it is still growing.

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Foods as a category grew at 16 - 17 percent last year in the rural areas. This year it has come down to 7- 8 percent. Of course, it is less but it is on a higher base. Compare this to the urban market which was worse affected because of limited market working hours, higher rate of contraction in urban areas, we missed that growing opportunity. So it is making up for that lost potential.

In fact, urban growth was in the low single digits, about 3-4% last year. Now, it is growing at about 8–9 percent. If we look at it from that perspective, rural is still ahead in terms of two years of growth.

I don’t think ad budgets will take a major impact. Most companies want to take this opportunity to grow and for those who were not able to grow in the last one or two years, it’s a question of probably at least trying and going back to pre-pandemic levels. Not just us, but even other FMCG players would be spending. The primary reason being to have the revenues or top lines almost similar to pre-pandemic levels.