Swapnil Bagul : Brand Extension

Marico industry

• Marico Industries, a well-known Indian Fast Moving Consumer Goods (FMCG) company, offers unique and ethnic Indian products. Marico was famous for its ‘Parachute’ and ‘Saffola’ brands.

Introduction

• India is one of the fastest growing economies in the world. Currently, India is the world's capital in cardio-vascular diseases & diabetes and in years to come the prevalence of these lifestyle disorders is only expected to increase.

• Today, 4 Indians die every minute due to a heart ailment, Saffola's reasons for existence is to lower this statistic.

• Saffola offers products which are designed to enable consumers to manage their heart health without a change in their lifestyle.

• Saffola's products are the first in your line of defence against heart diseases, making your transition to a healthier lifestyle a lot easier

Saffola Brand Cycle

Saffola Oil

Saffola Salt

Saffola Atta

Cont…

Saffola Zest

Saffola Arise

Saffola Oats

Saffola Oil

• Saffola Gold contains Rice Bran Oil and Safflower Oil, which is also known as Kardi Oil. .

• Safflower Oil has the highest levels of Linoleic acid, an omega-6-polyunsaturated fatty acid, which is well known in reducing cholesterol levels.

Saffola Oil as a Brand

• It was one of the first brands in the country to equate health consciousness with cooking oil.

• In order to stay in tune with the changing tastes and preferences of the customer, Saffola also came in four variants:-

Line Extension• Saffola Gold

• New Saffola

• Saffola Tasty blend

• Saffola Active

Satisfying health needs• Saffola satisfying Health

Needs:• Saffola “The Heart of a

healthy family”

• All Saffola oils come with’ 'LoSorb Technology’.

• Saffola oils fats' are 'Free of trans’

Pricing strategy of Saffola

• Saffola has different products to suit different customers.

• The company wanted to leverage the Saffola brand equity through brand extension.

• Saffola Gold – Rs 105• Saffola Tasty – Rs 85• Saffola Active – Rs 87

Factors that led to Success• Technical Product• International proven formula.• LoSorb technology.• Fortified with natural Vitamin-E.

• Functional Product• Widely used by house-holds, restaurants for daily cooking, salad dressing etc.

• Emotional Product:• Here Saffola essentially satisfies the Health Need of consumers. • It focussed on urging people to adopt a healthy lifestyle.

Benefits of Saffola as a Brand

• Made a Prominent image for saffola thus ensuring various brand extensions.

• It avoided the cost of developing the Brand extensions.

• Created a whole new niche for Saffola Brand.• Extending the Saffola franchise into new

categories is expected to help it in maintaining its margins with input and media costs on the rise.

Saffola salt

• In keeping with Saffola's overall brand identity, Saffola Salt Plus was launched in 1998, as a healthier alternative to regular table salt.

• Saffola Salt Plus contains lower sodium levels, as compared to common salts and a greater level of potassium.

• Low sodium levels assist in managing high blood pressure.

• The salt is extracted naturally from the sea, further enriched with iodine and minerals, and can be used in the same manner as regular salt.

Contd.

• Saffola salt is a propriety food and is made up of :-

• SODIUM CHLORIDE (IODIZED)• POTASSIUM CHLORIDE• CALCIUM CARBONATE• It has 10% lower sodium content than other

ordinary table or common edible salts.• Presence of potassium prevents hypertension

thereby also reducing the risk of CHD and stroke.

Factors contributing to success• Saffola salt rose as the

result of a continuing consumer demand for more "Good for the Heart" products from Saffola.

• Many decades of brand building by the mother brand "Saffola" and a genuine and effective low sodium formulation.

Effect on parent brand

• Saffola salt was a huge success and acted like the appropriate extension needed to further elevate and sustain the Brand Name and the distinctive features of the Parent Brand.

Saffola Atta

• Saffola Cholesterol Management Atta Mix is a specialized functional food from Saffola. Launched in 2005.

• The atta mix is a 100% natural, vegetarian mix of ingredients like soya, oats, barley, maize and psyllium husk.

Contd…

• The product is a chakki atta fortified with soya protein and soluble fibers from oats.

• This unique formulation possibly makes the product the only one which could help in daily heart care.

• The idea is clearly to strengthen Saffola's `heart care' equity with the new product.

Factors contributing to success

• 100% natural• Can be consumed by the

whole family.• Helps cholesterol

management.• Strong Parent Brand.

Effects on Parent Brand

• Atta came after salt and played well in the “health conscious” sector. It became an instant hit thereby serving as a further boon to Saffola as a health care Brand. It had tremendous impact on saffola and penetrated well into the market of atta thereby increasing its market share manifold.

Saffola Zest

Launched in 2009 and taken out of the market in December 2009.

Complete failure.

Contd.

• Zest is a salty baked snack.

• Ad Campiagn:- • “Say No To Fried Snacks. Say Yes To Baked

Goodness”.

• It came in different flavors.

Positioning gone wrong

• Zest had positioned it as a salty baked snack which combines health benefits with taste in competitive markets.

• However, after seeing the feeble consumer response, Marico decided to pull out the brand from the market.

Reasons for failure

• Brand extension works well when there are certain core similarities that seamlessly connect two or more products via the brand being used for extension.

• Stiff competition.

What could have been done?

• There must have been some collective efforts taken by the company to change the whole scenario and not just depend upon the common brand name.

Effect on Parent brand

• The salt based snack backfired but didn’thave much effect on the parent brand.

Saffola Arise

• Saffola Arise was launched in the market in the month of January in the year 2010

•  To launch a product extension like rice was quiet a difficult task for Saffola as a brand because rice is not considered as a healthy product.

Positioning

• They positioned Arise by claiming to have ingredients that would not hamper health. Their tagline is “ACTIVE RICE” which helped them with their positioning.

Contd..

• Provides better nutritional goodness.• Saffola Arise keeps you feeling light after

consumption.• It has a lower Glycemic Index value.• Delicious goodness in every grain.• Soft-textured and wholesome.• Has a delicate aroma that makes it delicious.

Factors contributing to success• Saffola Arise claimed to be the first ever rice

that keeps your entire family fit and active.• Arise (moolgiri variety of rice + white rice

with low GI value) will make you healthy by providing the 20% less calorie than the natural rice.

• The product was launched at invitational pricing and has been supported by insightful advertising.

Effect on Parent brand

• Arise as a product extention had very less effect on the parent brand but Saffola as a brand did help Arise in its success.

Saffola Oats

• Saffola Oats, launched in 2010, is a healthy, nutritious and active way to start your day.

• Saffola Oats are double-steamed for a uniform texture and are specially formulated with high iron and protein content.

• Saffola Oats keep those calories in check by minimizing hunger pangs and ensuring that you stay fuller for longer thus helping you manage your weight.

Contd….

• Keeps you fit and healthy.• Helps you stay fuller for longer.• Provides you with balanced energy.• Contains no Cholesterol.

Difference that sets them apart

• The USP of Saffola oats brand is that it has been made specifically to suit Indian cooking in terms of taste and texture. The brand is competitively priced to the existing oat brands in the market.

 

Factors contributing to success

• A daily serving of whole oats rich in soluble fibre can reduce the need for anti-hypertensive medication.

• Pertaining to Indian taste, it’s a hot breakfast item which is preferred all over the country and even it is easy to make, non time consuming and a healthier option then the few traditional Indian breakfast items like puri baji, poha and parathas etc.

Effect on parent brand

• Oats is the latest product to emerge from Saffola’s huge brand umbrella, it has had a significant impact on saffola and created a niche for saffola in the breakfast industry.

Conclusion

• Over the years, the brand Saffola has become renowned for its expertise in Heart Care, thanks to the consistent introduction of innovative product like heart healthy cooking oil and foods.

• Saffola has become a powerful brand and has created a strategic position for itself and will continue to penetrate our life’s one heart at a time.

Thank You