The Brand

The extension

The Marketing

Mix

The Positioning

The VerdictBRAND EXTENSION ANALYSIS

NAVYA JAIN

PGP30152SECTION A

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

Marico

The Brand

Present in 25 countries and 4 major categories

Source: Annual Report 2013-2014

Growth rate of international business is 16% vs 8% for Indian operations

India’s leading consumer brand in the beauty and wellness space

Affects the lives of 1 in 3 Indians

53Forbes 100 Most Innovative Growth Companies

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

Hair careHair oils-56% market share in hair oil category

Hair colours15-17% growth rate

Men’s groomingHigh growth rate markets

Deodorants at 25-30%Hair creams at 20-25%

HealthcareEdible Oils-Market leader

Functional foods-No. 2 in Oats, No.3 in Muesli13-15% growth rate

Skin care7% market share

Number 3 position15% growth rate

Marico

Categories

The Brand

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

SaffolaPositioning

Educating Indians on preventive heart care“Good for the heart”

TargetTo expand non oil portfolio to 25% by 2016

Market ShareEdible oil market leader with share of 55%

AccoladesSaffolalife and World Heart Day have won various national and international awards

The Brand

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

The Oats Category

33% cagr

The extension

OutperformerHot cereals category(oats) to grow

at 33% compared to 24% for cereal category

2013-2014 data

Growth Rate

2012 2013 2014

Category 36% 23% 29%

Saffola Oats 12% 14% 17%

Low penetrationOnly 3 million of potential

22 million households tapped

CompetitionOther oats, cereals, traditional breakfast items

The Brand

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Mix

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The Verdict

FactsNo. 2 player in Oats and No.3 in Muesli

Crossed ₹50 crore in top line in 201462% share of flavoured oats market

The extension

PositioningHealth + Taste

First ever range of savoury “Masala”oatsto cater to local tastes

Saffola Oats

Launch2010

Plain and savoury varietiesSweet varieties with fruit also introduced

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

Marketing Mix

Made of 100% natural wholegrain oatsSmarter way to stay fit-healthier than refined cerealsAimed at shifting regular users from other competitors

The 4 Ps : ProductPla

inSavoury

Designed for the Indian palateHot, spicy and flavoured foodReal vegetables & pre-packaged tastemakersMove away from “breakfast dish” to all day snackRegional flavoursSix variants

Sw

eet

Fruits and crunchy nutsTwo variants

The Brand

The extension

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Mix

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The Verdict

BenefitsHelp control cholesterol,

sugar and weightEasy to digest

Filling and energizing

High on fiberEasy to prepare-Just

3 minutes

The 4 Ps : Product

Marketing Mix

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

The 4 Ps : PricePlain Savoury Sweet Rs. 15/30 gmRs. 15/40 gmRs. 68/400 gm

Competition Rs. 10/30 gm

Insight

Saffola Oats are perceived as high priced because the average consumer doesn’t take into account the extra grams provided

Various SKUs available

Marketing Mix

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

The 4 Ps : Place

Raw Materia

l Vendor

s

RDC

Plants DepotDirect

Distributors

Retailer

Stockists

Super Distribut

ors

Primary Sales Secondary Sales

30 depots

6 Regional Distribution Centres

InsightSaffola leverages its strong existing distribution network to place

Oats in reach of the end consumer Major target channel – modern retail

Marketing Mix

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

Do More With Saffola Oats

The 4 Ps : Promotion

The Breakfast Dilemma

Mazedaar Khao, Jee Bhar Ke

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

The 4 Ps : PromotionPromoted as fast to cook, ready to eat snackIn store promotions & samplingLeveraging cookery channels like Food-Food etc.First brand to launch flavours suited to the Indian palateSmall size SKUs to encourage trial & repurchaseSaffola Fit Foodie Youtube channel

Marketing Mix

Saffolalife.comIntegrated portal to help users take care of their

hearts-various features like heart age finder, health &

fitness tricks, tasty recipes

Do more with Saffola OatsA campaign aimed at promoting non-traditional

usage of oats in products like idli, upma

to dispel oats’ healthy but bland image

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

Segmentation

The Positioning

Behavioural

PsychographicDemographic

Age : 25-40 years

SEC : A, B

Gender : Female

Occupation : Working professionals

Usage occasion : For regular consumption, Usually breakfast

Benefits sought : quick, speedy, convenient mealsWeight management with taste

Values : Career oriented yet does not want to neglect family

Lifestyle : Modern, Outgoing, Health Conscious,

Open to trying new products

The Brand

The extension

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Mix

The Positioning

The Verdict

Target ConsumerInitially targeted at

Saffola’s target consumerCholestrol reduction for middle aged men

Repositioned to break the competitive clutter-

Housewives and working women in 25-40 age group

who want to lose weight but

find exercise cumbersome

The Positioning

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

The Competition

Bagrry’s

The Positioning

Horlicks QuakerKellogg’s

Quaker Oats are the most popular brand in the target consumer’s mind

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

The Competition

The Positioning

Tasty

Bland

Low priced High priced

Perceived as high pricedMore gm/SKU

priced at Rs. 15

vs Rs. 10 of competitors

The Brand

The extension

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Mix

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The Verdict

Points of Parity

Tasty-Delicious start to the day

Healthy

High on nutrition

Competitively priced

The Positioning

POINTS OF DIFFERENCE

World’s first brand to launch savoury oats -

Taste adapted to Indian palate

The Brand

The extension

The Marketing

Mix

The Positioning

The Verdict

References :http://marico.com/india/investors/documentation

https://www.pwc.in/en_IN/in/assets/pdfs/rc-publications/innovation-in-fmcg.pdf

http://www.bestmediainfo.com/2013/10/keeping-up-in-the-oats-race-it-is-all-about-finding-the-right-positioning/

http://www.thehindubusinessline.com/features/battle-of-the-oats/article3324566.ece

The Positioning