Affordable, not cheap: Cracking the code on value

In a hyper-competitive market where inflation steadily eats into consumer wallets and discretionary spending is under constant pressure, affordability has become a critical pillar for brand growth. Nowhere is this more evident than in the Consumer Packaged Goods (CPG) sector, where affordability isn’t just a pricing strategy—it’s a positioning game.

A growing number of ‘affordable’ brands have entered the fray, often relying on smaller SKUs to signal value. But affordability in the Indian context is far more layered than simple cost-cutting. This article explores the deeper drivers of affordability, challenging common assumptions, and offering practical insights into how brands can communicate value without eroding equity.

The many faces of affordability

At face value, affordability is about sticking to a budget and opting for lower-priced brands. But this narrative only scratches the surface. New consumer research suggests that affordability isn’t purely transactional—it’s steeped in emotional gratification, empowerment, and a sense of savvy decision-making.

One insight that consistently emerged in consumer conversations is the idea of empowerment through affordable choices. For families navigating tight monthly budgets, smaller pack sizes don’t just make things affordable—they make room for exploration. Affordable packs encourage trial of new brands and categories, allowing homemakers to cater to the diverse needs of the household.

As one consumer insightfully put it: “Small packs make it easy and pocket-friendly for my son to share with friends.” Another confessed to trying Coke Zero “only because of the Instamart delivery deal.”

Then there’s the emotional high of savviness. Choosing affordable brands that rival premium ones in quality creates a feeling of intelligent decision-making. “The roadside tea is sometimes as satisfying as Chaayos,” said a consumer, “In Chaayos I’m just paying for the ambience.”

A third emotional driver is guilt mitigation. Smaller packs in indulgence categories, like confectionery, allow consumers to enjoy treats in moderation—without financial or caloric remorse. As one Dairy Milk fan summed it up: “I buy a Rs. 10 bar after lunch and share it. It satisfies the craving and I don’t feel guilty.”

Price matters, but so does trust

A common misconception is that affordability means compromising on quality. But in India, quality isn’t optional—it’s expected. Consumers may accept fewer features or frills, but they demand a minimum threshold of trust and performance.

Established brands have a distinct edge here. Their legacy of quality offers a reassuring baseline, making their affordable SKUs more appealing than those from lesser-known competitors. “This pack is from Parle G,” said one respondent. “I’ve known it since I was a kid. I trust it for my children.”

Ipsos’ assessment of new launches confirms this dynamic. Simply offering a lower price isn’t enough. Affordable innovations must also deliver differentiated benefits to break through. Success hinges on underpriced innovation—not underwhelming execution.

This reinforces a vital point: affordability should not be communicated as a compromise. Brands must reposition it as a smart consumer choice that is both value-driven and emotionally fulfilling.

Affordability in context

Price sensitivity in India is highly contextual. Post-COVID, there has been a noticeable spike in premium launches, especially in food and beverages. But that doesn’t mean affordability is losing relevance. Quite the opposite.

With inflation remaining persistent and a vast base of value-conscious consumers, affordable options are thriving—especially for regular, in-home consumption. These aren’t just transactional moments. They’re highly habitual, deeply ingrained in routines, and open to brand influence.

The pandemic also reshaped how, when, and where consumers eat. Food delivery apps introduced new consumption moments—late-night snacks, shared desserts, mini-meals—each offering new points of entry for brands via affordable SKUs. These micro-occasions are ripe for recruitment and conversion, especially when affordability cues are dialled in with precision.

Another emerging trend is the openness to regional and local brands, particularly in categories like snacks, condiments, and ready-to-eat meals. Indian consumers today are not just trading down—they're trading across, trying new labels that offer quality at compelling price points.

Cracking the semiotic code of affordability

One of the most overlooked levers of affordability perception lies in visual communication—specifically, packaging. Ipsos conducted a semiotic study of 200 brands to decode the signifiers that cue affordability on the shelf.

Here’s what stands out:

• Bright colours and basic typography are a recurring theme. These visual choices project accessibility and energy—qualities consumers associate with value.
• Product as hero: Affordable packaging tends to feature bold, prominent product shots. The visual abundance sends a subconscious signal of value-for-money. Premium packs, in contrast, lean towards minimalism and storytelling.
• Promotional messaging plays a key role. Phrases like ‘Buy 1 Get 1’ or ‘25% Extra’ are still potent cues for bargain hunters. Crucially, the placement and visibility of price on the pack matter just as much as the offer itself.
• Compact pack formats also enhance perceptions of affordability. Easy to carry, store and stack—these packs feel inherently practical and are seen as a smarter choice.
• Brand names too influence perception. Affordable brands often adopt colloquial, Indian-sounding names—offering familiarity and relatability. Youth-targeted brands may veer into slang or trend-inspired naming conventions to create cultural proximity.

Retail: The final touchpoint

Packaging does a lot of heavy lifting, but retail environments close the loop. The way affordable products are presented at the point of purchase can significantly sway perception.

In kirana stores, storefront placement enhances accessibility. In modern trade outlets, dedicated promotional shelves and prominent signage help draw attention to value offerings. Every detail—from shelf layout to lighting—contributes to the affordability narrative.

This makes it essential for brands to think beyond product and packaging, and orchestrate an ecosystem of cues that reinforce the value story consistently across touchpoints.

So, how can brands create winning affordable offerings in today’s landscape?

First, reposition affordability as a smart and emotionally fulfilling choice, not a compromise. Second, maintain quality standards—lower price points don’t absolve you from consumer expectations. Third, tap into new consumption moments with tailored SKUs that meet emerging needs. Fourth, deploy semiotic consistency across packaging, naming, and retail presentation. Finally, strategically use retail environments to reinforce the affordability signal.

When done right, affordability isn’t just about margins and pricing tiers. It’s about understanding how value is perceived, emotionally processed, and acted upon.

As Indian consumers continue to navigate a volatile economy with resilient optimism, brands that signal affordability with intelligence and empathy will not only survive—but thrive.

- Geeta Lobo, country chief client officer, Ipsos India and Ashwini Sirsikar, group service line leader, UU and Synthesio, Ipsos India