saffola oats marico
TRANSCRIPT
NMIMS Mumbai
Reigniting Saffola Masala Oats
Team - Lost In Translation
Neha Anna John
Rohan Pant [email protected]
Nitesh Kabra [email protected]
+919167430940
NMIMS Mumbai
Executive Summary
04/17/2023
The report consists of findings and analysis on the basis of the primary research conducted. The focus is not only tapping new consumers but also the ones who are likely to switch between brands .Breakfast cereal market in India has been growing at an unprecedented rate of 27% , with hot cereals being the flag bearer growing at 40% p.a. Both hot cereals and muesli are relatively smaller categories within breakfast cereals and are growing strongly from a smaller base due to the launch of a number of new product offerings by the leading players. For example, Marico launched Saffola Masala Oats in various flavours, such as Veggie Twist, Peppy Tomato and Classic Masala (for the north, west, east India markets) and in Masala and Coriander, Curry and Pepper, Pepper and Spice and Veggie Twist (for thesouth Indian market).The report focuses on changing the positioning as well as the value proposition of Saffola Oats to bring it in sync with the parent brand . Suggestions have been made to tap new potential consumers such as office going bachelors who are prone to missing breakfast as well as retired people who have lately been major consumers of Oats. By introducing samples in office canteens and the possibility of tying up with various institutions have been explored in the report.Also the report focuses on tapping snacking opportunities in the market, an area which Maggi noodles has dominated in the recent past. But with a growing trend towards health consciousness , flavoured oats are ideally placed to take advantage of this opportunity.As a part of short term strategy there is focus on changing the packaging of the Saffola oats to differentiate it from the crowd . Also introducing it in bundles of different flavour is an option that has been explored.The long term strategy focuses on extending the brand by introducing oat based health drinks which are extremely poplar in south India and can help penetrate this market better.
NMIMS Mumbai
Promoting Oats in cookery
shows and also starting a new YouTube
Channel
Showcasing the benefits
of Saffola on the packet
Educating consumers
through Facebook
The Oats Market
Oats
Aware of Oats64%
Users21%
Non Users43%
Never Tried33%
Non Intenders26%
Future Users7%
Lapsers10%
Not Aware of Oats36%
• Quaker has the largest market share in Oats
• Quaker has a first mover advantage but Saffola has the
potential to gain foothold among Quaker’s consumers
• Saffola needs to introduce a small Rs.15 pack for normal oats
so the consumers can experiment and switch to the
Saffola brand• Saffola Oats needs to push its
brand in modern retail at Eye Level shelves
32%
18%15%11%
6%
18%
Oats Market Share
Quaker Saffola HorlicsKellogg Britannia Others
Free samples of Small packet of
Saffola Oats with Saffola gold oil to promote the Oats
and this might help in converting some non users to users
Communication Strategy
Promote about oats and its benefits in
SaffolaLife FB page and interact
with the consumers
NMIMS Mumbai
Current Value Proposition Of Saffola Oats
Weight Reduction
Category 10%
20%
40%
60%
80% 64%
37%19%
Brand Perception
Good for Heart Cholestrol Reduction
Weight Reduction
64 % of the people associate Saffola Oats with Heart as it seems to be an appropriate extension to Saffola Oil
Only 19 % people knew the value proposition offered by Saffola was weight reduction
Because of Saffola Gold Oil people have a very
strong perception of the Saffola brand being healthy for heart
Building a value proposition around heart makes more sense matching people’s perceptions
Changing the Value Proposition
NMIMS Mumbai
Re-looking the Target Group
According to our primary research, nearly 47% of single Working professionals (21 – 30 years) prefer eating Oats at breakfast
Oats being a quick fix and healthy solution for people missing breakfast
Also retired people prefer Oats as a healthy breakfast
04/17/2023
0%
20%
40%
60%
80%
12%
47% 53%
32%
71%
StudentsWorking Professionals(Bachelors)Working Professionals (Married)Retired
An instant healthy Breakfast for working bachelors who do not have the time to cook
Saffola Oats can easily leverage this category. The communication should focus around health benefits and ease of cooking
Trial Samples of Oats should be made available in office canteens so that people
Need for a healthy and light breakfast
Saffola should target 60+ age group looking for healthy
breakfast
NMIMS Mumbai
68%
32%
People who would like to try masala Oats as
snacks
Yes No
Masala Oats As Snacks
Primary research shows that’s though most people(62%) prefer to consume oats as breakfast serial but there is a sizeable percentage(48%) of people who consume oats in the evening
Masala Oats cannot be eaten on a daily basis but with better taste they can compete in the snack segment with Maggi
Saffola has an edge in this segment vis-à-vis its competitors , due to more number of flavours
With Maggi also arriving with it’s oats noodles, it would make sense to compete with Maggi in the snack segment
0% 10% 20% 30% 40% 50% 60% 70%
62%
11%
48%
39%
Oats Consumption Pattern
Night ( 7 pm - 12 am) Evening( 3 pm - 7 pm)
Afternoon(11 am - 3 pm) Morning (6 am -11 am)
Placing Masala Oats alongside the Maggi
shelves in supermarket would throw competition to
Maggi noodles in the snacking category
Promoting masala Oat as snack in college mess and
office canteens by tying with institutions will not only help
popularise oats but also expand the reach of Saffola
NMIMS Mumbai
Differentiation
Problem
Very difficult to identify
the brands in the shelves in supermarket due to very
similar packaging
Customer cannot tell
whether Saffola Masala are
actually offering more quantity (40g and not 28) in
its Rs 15 packet Solution
Dedicated Shelf
40 gm mention
NMIMS Mumbai
Return on Investment for the Strategy
Factor Value (in Rs)
Promotional costs 9039520
Sampling costs 4560000
Labelling and packaging costs 7000000
Total Costs 20599520
Total Revenue 23871825
Return on Investment (ROI) 15.88%
04/17/2023
• Shows a healthy ROI of 15.88%• With increase in disposable incomes and predicted CAGR of
33% for the oats market, the ROI will increase further in consecutive years
• In future stages, Marico can also invest in product development costs for extensions such as oats based health drinks
ROI Calculation
NMIMS Mumbai
ROI Calculations
04/17/2023
Costs Involved for the New Strategy Costs Remarks
Promotional costs
Facebook page promotions 2639520FB promotional expenses are based on advertising page expenses on FB to reach out to an audience of 75-300 people per day.
Promotion through cookery channels 2400000Weekly spot on most highly viewed cookery shows on primetime to promote Saffola
Creation of renewed advertising content 3000000Utilizing advertising agency to create renewed content for 3 advertisementsCreation of facebook content 1000000Write-ups and promotional content for facebook promotion
Sampling costs
Sampling at canteens 60000Sampling at select IT parks and canteens in major cities for 3 months
Sampling with Saffola oil in retail outlets 4320000Provision of samples with Saffola oil in retail outlets such as Spencers, Reliance, More and Big bazaar across India
Provision of discounts to customers at canteens 180000Increasing usage by including it in food menus in canteens (Rs.1 discount per sample)
Labelling and packaging costs
Labelling on samples 4000000Including content on non usage of harmful ingredients, 50% extra and as a wholesome meal
Packaging for bundles 3000000Creation of packaging for selling multiple varieties of oats together
Total costs involved 20599520
Revenue Involved for the New Strategy Revenue Remarks
Incremental revenue from increased usage combined with market growth 23871825Hot cereals expected to grow at a CAGR of 40% and become 3897.2 crores in 2015 as per Euromonitor forecasts
Increase in 5% in Saffola's value in the current breakfast cereal marketReturn on Investment for the first year 0.158853
Thus, the implementation has a return on investment of 15.88% which makes it very attractive. Since the growth is increasing for this category and costs reduce, we can expect a healthy ROI in the consecutive years