BRAND EXTENSIONSAFFOLA

OATS

BRAND EXTENSION

Brand Extension is a marketing strategy used by firms to market a new product line/category using the same name.

LINE EXTENSION

Line Extension is a marketing strategy used to establish a new item in the same product category using the same brand name.

CATEGORY EXTENSION

Category Extension is a marketing strategy used by firms to establish a new item in a different category using same brand name.

BRAN

D E

XTEN

SIO

N

MARICO LTD.

HAIR CARE BODY CARE OILS & FATS BREAKFAST CEREALS

YOUTH BRANDS

FMCG

INDUSTRY

saffola

SAFFOLA

OILS & FATS

BREAKFAST CEREALS

Saffola, a Marico Ltd. Product launched its product Saffola oils in India. Later on, to be a leading healthy lifestyle brand Marico extended its product category under the

Saffola brand i.e. Saffola oats.

SAFFOLA OATSHEALTHY FOODS

OPTION

MASALA & CORIANDE

R

CURRY & PEPPER

CLASSIC MASALA

VEGGIE TWIST

PEPPER & SPICE

PEPPY TOMATO

FLAVORS

LAUNCHED IN INDIA IN YEAR 2010.

MARKET STUDY

• MANUFACTURER ANALYSIS

• BRAND ANALYSIS• CATEGORY ANALYSIS

CATEGORY ANALYSIS – BREAKFAST CEREALS

3694.4

4705

5827.2

7392.49361.5

11678.5

MARKET SHARE OF PRODUCT CATEGORY

2009 2010 2011 2012 2013 2014

INR MN.

FMCG

INR 27,00,000 MILLION- 2013

BREAKFAST

CEREALS

INR 9361.5 MILLION- 2013

MARKET SHARE OF BREAKFAST CEREALS CATEGORY-

0.34%

BRAND ANALYSIS

2009 2010 2011 2012 2013 20140

0.2

0.4

0.6

0.8

1

1.2% SHARE OF SAFFOLA IN PACKAGED FOOD

2009 2010 2011 2012 2013 20140

0.05

0.1

0.15

0.2

0.25

% SHARE OF SAFFOLA IN BAKERY PRODUCT MARKET

2009 2010 2011 2012 2013 201401234567

% SHARE OF SAFFOLA IN BREAKFAST CEREALS

2009 2010 2011 2012 2013 20143.6

3.84

4.24.4

4.6

4.85

% SHARE OF SAFFOLA IN OILS & FATS

BRAND CATEGORYANALYSIS

2011 2012 2013 20140100200300400500600700800

83.91168

267.60488

473.6919

711.22065

MARKET SIZE OF SAFFOLA OATS

YEAR % SHARE2011 1.442012 3.622013 5.062014 6.09

• SAFFOLA OATS CATEGORY OF MARICO LTD IS SEEING GOWTH YEAR OVER YEAR, AS SHOWN IN TABLE.

• SAFFOLA OATS REPRESENTS 6.09% OF THE TOTAL MARKET SHARE OF BREAKFAST CEREAL PRODUCT CATEGORY IN 2014 IN INDIA.

MANUFACTURER ANALYSIS- MARICO

LTD

2009 2010 2011 2012 2013 2014

MARICO LTD 1931.99 2046.35

2372.04

3021.95 4633.71 4744.42

INR CRORES

MARICO LTD IS EXPERIENCING CONTINUOUS GROWTH SINCE 2009. MAJOR CREDIT FOR SUCH GROWTH IS DUE TO THE MARKETING POLICIES ADOPTED. BRANDS LIKE SAFFOLA( 11% MARKET SHARE), PARACHUTE( 10% MARKET SHARE) ARE THE BIGGEST CONTRIBUTORS TO MARICOS’ SUCCESSFUL OPERATIONS.

P’s of MARKETING

PRODUCT PRICE PLACE PROMOTION

SAFFOLA

MASALA &

CORIANDER

CURRY &

PEPPER

CLASSIC

MASALA

VEGGIE TWIST

PEPPER & SPICE

PEPPY TOMAT

O

• SIZES AVAILABLE- 30 gram, 40 gram, 300 gram, 400 gram, 1 kg

• Saffola continues with the legacy design of its packaging by printing a heart on its package with the tagline- “The smarter way to stay fit”

QUAKER• SIZES AVAILABLE- 30 gram, 40

gram, 200 gram, 300 gram, 600 gram, 1 kg, 1.5 Kg

• Quaker has a very large number of flavors- apple, apple& cinnamon, apple & cranberries, maple, butter, cheese, walnut etc. in milk variants

• It also has salty variants- lemony veggie, home-style masala etc.

PRODUCT PRICE PLACE PROMOTION

SAFFOLA

30/40 gram – Rs. 15300/400 gram – Rs. 1351 Kg – Rs. 165

Milk oats-

200 gram – Rs. 41400 gram – Rs. 65

QUAKER- Milk/ Lemony veggie/

Homestyle Masala

30/40 gram – Rs. 15200 gram – Rs. 43300 gram – Rs. 62600 gram – Rs. 1441 Kg – Rs. 1651.5 Kg – Rs. 190

KELLOGGS

39 gram – Rs. 15200 gram – Rs. 41250 gram – Rs. 99450 gram – Rs. 146

PRODUCT PRICE PLACE PROMOTION

DISTRIBUTION CHANNELS• Marico has a very large existing distribution network for Saffola brand• Available at hypermarkets, supermarkets, general stores, pharmacy

stores, ecommerce websites• But the rural area stands untapped

COVERAGE• Very wide coverage of the Brand, reaches almost all households across

the country• covers over 33 lac retail outlets

DISTRIBUTION CHANNELS

• It has a very large existing distribution network • Available at hypermarkets, supermarkets, general stores, pharmacy

stores, ecommerce websites

COVERAGE• Very wide coverage of the Brand, reaches almost all households across

the country• Being a Pepsico brand, its widely available at all stores easily

PRODUCT PRICE PLACE PROMOTION

SAFFOLA OATS ADVERTISEMENTS-

https://www.youtube.com/watch?v=-xgf0VMt-9w

https://www.youtube.com/watch?v=HgXGwPNPbdE

https://www.youtube.com/watch?v=8KIOOf0WJ4I

• Marketing efforts of Saffola centered round the taste factor while showing the health benefits

• Marketing efforts included on-ground activations with local celebrity chefs, festival-themed cooking shows, trial packs, in-store promotions

• Saffola retained the legacy of its parent brand by focusing on the health benefits

• They used several campaigns to broaden the horizon of the product and positioning it in multiple ways

PRODUCT PRICE PLACE PROMOTION

QUAKER OATS ADVERTISEMENTS-

https://www.youtube.com/watch?v=xf1bh6JLweY

https://www.youtube.com/watch?v=auo6Wshp-cM

https://www.youtube.com/watch?v=JQ08HUO_f4U

• Quaker Oats brand identity- “ Go humans Go”

• The campaign reinforces that the whole-grain oat is a key Quaker ingredient that helps power the bodies and minds of humans and inspires people to be their best – in essence to “Go humans go.”

• It’s a good source of cholesterol- lowering soluble, rolled oats and whole oat flour. They are capitalizing on the products ingredients to promote its good for health characteristic

• Digital Marketing is also used

MARKET SEGMENTATION

Types of Segment

Need satisfied

Geographical• Urban

• Rural

• Health consciousness, convenience, better taste

• Not so popular in rural areas

Demographic • Health consciousness among educated people. Working women preferred it as a healthy and convenient breakfast choice.

Behavioral • Loyalty- by using saffola as the parent brand• Focus on benefits derived- weight management and health

consciousnessPsychographic • Saffola segmented the market based on lifestyle of target

market- working women, health conscious people, weight conscious women

Target Market of Saffola was primarily people who are health conscious and also concerned about taste.Saffola divided the market into 2 categories-• Health Conscious People• Weight Conscious Women

Saffola used promotional strategies to attract both types of targets. All its ads revolved around highlighting heath benefits along with taste factor( 6 flavors).

CONSIDERATION SETKELLOGGS OATS

BRITANNIA OATS

HORLICKS OATS

QUAKER OATS

4 MAJOR COMPETITORS OF SAFFOLA IN THE OATS PRODUCT SEGMENT ARE- QUAKER, KELLOGGS, HORLICKS & BRITANNIA.

QUAKER BEING THE NUMBER 1 PLAYER IN THE CONCERNED PRODUCT LINE WITH MAXIMUM MARKET SHARE.

MOST POPULAR BRAND IN THE TARGET CONSUMERS’ CONSIDERATION SET IS QUAKER

COMPETITIVE FRAME OF REFERENCE

The competitive frame of reference provides the context for positioning, and it is a fancy way of describing the market or context in which you choose to position your brand.

Saffola oats is

primarily in the

BREAKFAST

CEREALS

MARKET,

promoting health

and wellness

Quaker is the biggest threat in the concerned

competitive frame of reference.

MULTIPLE FRAME OF REFERENCE

Saffola uses multiple competitive frame of reference. Hence it will have to position saffola oats in both the frames of reference.

• To penetrate into beyond breakfast category it launched its ad campaign of “ Do more with Oats”

• Also, saffola oats went on positioning itself on the basis of taste to differentiate itself from the competition and being the number 1 to successfully end the trade off between taste and health.

POP’s

POD’s

POD’s

POD’s

• Breakfast Cereal

• Healthy• Milk oats

Indian Masala Additio

ns

Unique positioning- weight managem

ent

Alternate uses- “DO

MORE WITH OATS”

POP’S & POD’S OF SAFFOLA OATS

• Breakfast Cereal

• Healthy• Milk oats

Unique mix of

flavors- Milk

variants

Unique positioning- smart

heart challenge

First mover advantage,

Pepsico brand name

POP’S & POD’S OF QUAKER OATS

3 minutes

of cooking

Flavors available

Expensive

PERCEPTUAL MAP

QUAKER

Cheap

SAFFOLA

KELLOGG’S

HORLICKS

80 CRORE REVENUE

SHARE IN 2014

EXPECTED- 100 CRORE REVENUE

SHARE IN 2015

PATH AHEAD

REFERENCES

► http://marico.com/india/investors/documentation ► http://www.portal.euromonitor.com/portal/statistics/tab► http://www.slideshare.net/iimjobs/india-fmcg-sector-report-may-2014 ► http://info.shine.com/industry/fmcg/6.html ► https://

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

timesofindia.indiatimes.com/business/india-business/Saffola-is-the-second-largest-oats-brand-after-Quaker/articleshow/14315352.cms

► http://articles.economictimes.indiatimes.com/2015-01-28/news/58546966_1_quaker-oats-pepsico-india-plain-oats

► 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

► https://www.youtube.com/watch?v=QBq_su7i_SQ

SUBMITTED BY:SAISHA ARORA (PGP30273)SECTION- BEmail- saishaqua@gmail.comContact- +91-8874523230

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