Learning Business Strategy from the Streets: A Real-World Lesson in Pricing

Relearning in life comes from practical observation and learning. Take the case in point: Chinese food, which is tremendously popular in Hyderabad. In our colony, a single plate of Veg Manchuria costs around Rs 60–70 at roadside shacks, and even in small roadside restaurants it costs around  Rs 80–100. Along with a normal roti or rumali roti, a plate should be Rs 150 - 180, and it will go up to  Rs 200 with mineral water and tax.

No surprise that most eaters throng roadside shacks and not the restaurants. To learn how business is run, one needs to go to the KPHB shops near the KPHB metro station in Hyderabad. This area is a popular hangout for students, employees, and has heavy footfall.

Here, the prices are jaw-dropping. A single plate of Manchuria is sold at  Rs 30 and a double at  Rs 40. Manchuria with rumali roti is sold at  Rs 50. Chicken Manchuria with rumali roti is  priced Rs 80 and at the same place another stall sells it at  Rs 74! Chicken Manchuria is either  Rs 60 or  Rs 55. Chicken Pakodi is Rs 45 only.

This is penetration pricing at its best, high volumes, low margins, but they earn decent income per day. And all the joints are side by side, yet they remain amicable. I don’t find anyone fighting with anyone else. They all seem to have loyal customers who come for the taste not necessarily for the slightly lower cost that the next shack is offering. 

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Amul’s Sweet Marketing Play – Lessons Beyond the Obvious

Marketing always excited me because it is the only subject in management that is live, dynamic, and happening right in front of you. It’s always “in your face”. Brands are constantly talking to us, and it’s up to us to decode what they are really saying. 

Every day, we are dished out hundreds of live case studies. We have the lens to see them. Yesterday, when I picked up the Times of India, this full-page Amul Mithai advertisement instantly struck me. I decided to use it in my classroom session the same day. 

The question I posed to my students was simple yet powerful: “How much do you think this advertisement would have cost across all editions of TOI in India?”

The students’ jaws dropped when I revealed the figure – upwards of ₹3 crores! That’s when I told them why brands like a local Karachi Bakery would never think of advertising at this scale. Naturally, the next discussion was “Why such a big advertisement?”

Students came up with some good responses:

• It’s seasonal.
• Amul wants to highlight its presence in the sweets business.
• The brand wants to showcase its portfolio.
• Perhaps they are pushing online ordering.
• Or maybe they wanted to launch new SKUs.

All valid, but in my view, these answers were “seeing the trees but missing the forest.” The critical thinking was still surface level. Here’s how I see it:

 The Bigger Marketing Picture

1. A tectonic shift in sweet consumption: Amul is signalling the change in consumer behavior. For a country that once prided itself on having sweets for every occasion, consumption habits are evolving rapidly.

2. The ‘F-word’ of nutrition Sugar: Sweets are suddenly seen as the villain. With India on its way to becoming the diabetes capital of the world, consumers are cutting down or switching away.

3. From bulk to bite-sized: Ten years ago, a festival meant at least 5–8 kgs of sweets at home. Today, very few make sweets at home, and even when gifted, they’re either re-gifted (the infamous Soan Papdi loop!) or handed over to house help.

4. Quality over quantity: Indians are gravitating towards premium sweets. They don’t want 2 kgs of generic laddoo; they want a few pieces of Kaju Katli.

5. Smart price psychology: One student, Lahari, made a sharp observation: the ad makes Kaju Katli look affordable at Rs 230 for 200 grams. But when you scale it up , it’s  Rs 1150 per kg! Smart price framing. Why haven’t local mithai shops done this? Because they stick to the traditional “Rs/kg” display which feels unaffordable and pushes customers away.

6. Transparency vs. bundling: Local shops often sell ₹400–500/kg packs but fill them with cheap options like boondi laddoo, jalebi, or Rava sweets. Milk and khoa based sweets are minimized. With Amul, you know exactly what you’re buying a curated, premium range.

7. Convenience + Gifting appeal: The pack sizes are attractive, hygienic, and perfect for gifting. Small, manageable packs ensure there’s no guilt or wastage. Consumers perceive these as indulgent yet responsible purchases.

Why this ad works This is not just an ad – it’s a strategic brand play. Amul is:

• Repositioning mithai as modern, hygienic, and aspirational.
• Using price packaging strategy to make indulgence look affordable.
• Leveraging consumer psychology by shifting the focus from per kg to per 200 grams.
• Tapping into gifting economics where presentation matters as much as product.

In essence, Amul is telling us: “Mithai is not dead; it just needs to be reimagined.” As a marketing teacher, I see this campaign as a masterclass in consumer insight mining, price framing, and product portfolio communication. All in all – a brilliant move by AMUL. 

Keywords: 

Amul Mithai, Amul advertising, Amul sweets, marketing strategy, consumer insights, Indian sweets market, festive marketing, brand positioning, advertising cost India, Times of India ad, packaging strategy, pricing psychology, gifting trends, mithai consumption shift, premium sweets, quality vs quantity, sugar-free sweets, Indian consumer behavior, brand communication, FMCG marketing.