oats - Ideastation

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Jamnalal Bajaj Institute of
Management Studies
Go Getters
Mufaddal Dahodwala
MMS I
Debrup Chatterjee
MMS I
Mornings-Its good for you
Big Ticket Idea: Project ‘Poshan’
Business Suggestions
Saffola Oats based breakfast menu
• Hot meals: Oats to be used in out of
home morning meal preparation such
as Dhokla, Idli, Dosa etc.
• Branded Ready to eat meals: Cups
containing saffola Oats mixed with
natural flavours requiring only the
addition of hot water to convert the
mix to a nutritious meal
• Ready-to-eat snacks:
Oats can be
given from kiosks setup in malls, parks,
jogging track, etc.
Insights:
Women seen as the nutritionist of the
Indian family
Taking inspiration from HUL’s Shakti
Amma
which demonstrated local
women’s ability to increase reach
Opportunity:
Increase out of home consumption
through a network of women microentrepreneurs
Build brand through local influencers
Tap inaccessible areas: Increase
penetration
Business model:
Select
members
as
Poshan
entrepreneurs
She receives stocks of Saffola Oats and
drink concentrates from local retailer
After being trained, the Poshan
entrepreneur then sells the nutritional
breakfast meals to consumers
Business Model
SEC B to SEC A in Tier I and Tier II
Cities
• Target are those who are always on
the move and who miss breakfast
due to lack of time or availability
• Economic price points to compete
with local offerings; profit model to
drive high volume sale
• Indianization
of products to
increase brand appeal
High Energy Nutritious Morning
Foods
• Communication focus on health
and zeal to create appeal and
differentiation for driving morning
sales
• Products to be conspicuously
branded with Marico names
Breakfast Cereal Extensions- Extend
Saffola Market Leadership from current
35% market share to over 50% and grow
the market from the current 200 Cr to
over 500 Cr by 2017
Marico advantage
Upload your oats recipe and
Best one will get a chance
to meet Kareena Kapoor
Strategically Gunning for the Low Hanging Fruit
Immediate
Targets
(Low Hanging Fruit)
Saffola 40gm
pack
Now 15% extra!!
 Picnic Bundle
Packs
Medium Term
Targets
(Challenging but
scalable)
 Hydration
Bags
 Oats Pizzas
 Breakfast
Beverages
 Cinemas
 Oats Breakfast
 Marico Chat
Corner
 Project Poshan
 Canteen Tie-Ups
 T&L Breakfast
Campaign
 Wedding
Offerings
Long Term
Targets
(Difficult but Strategic)
It would be advisable to use a moderate
risk strategy by first implementing the
suggestions with a high ease of
implementation & later moving to the
suggestions which are difficult to
implement but are high on scalability
and sustainability
Marico could enter and become a key player in the FMCG industry value chain backbone
Phase Wise Entry
First has to leverage “Saffola” brand image in the minds of people through aggressive
advertising in order to make people aware about wholesome 40g packets
Tieups with
doctors/dieticians
Target tactical locations in heavy congestion
areas such as Bus stops, Railway Stations, School
canteens and malls for people who look for food
on the go
Advertise on social
media
Infuse funds
for
Tieups Campaigns
like Kareena’s
dietician Rutuja
Diwekar
Advertise through
malls and retailers
Increase
Awarene
ss
1.
Increase market share through institutional campaigns
2.
MAJOR PLAYER IN CUSTOM PACKING OF VALUE ADDED PRODUCTS
3.
Lead through aggressive marketing campaigns
Target Market Size & Defining the Target Consumer
Target Market Size- Healthy Cereal Lovers - age group of 15-55 years
Segmentation and Targeting
Usage
Utilitarian
15-25
years
Positioning
Core Target
Consumer
26-35
years
Premium
35-45
years
Traditional
45+ years
Wholesome and filling, delicious, hygienic Indian breakfast
• Shoppers of breakfast
cereals(cornflakes, muesli)
• Students
• Couples
Larger Towns to Metros
Age Group 15-30
Occasions: A refreshing stomach
filling easy & quick to prepare
evening snack to satiate the taste
buds while also fulfilling Religious
fasting needs of people
Sales improvement (%) in Saffola oats through
different interventions
Improvement
60
50
40
30
20
10
0
Improvement
Driving Brand Resonance
Occasions - Making them Better for You
Travel &
Lodging
Outdoor
Picnics Weddings
Target Special Occasions to Endear
Brand and Create Brand Loyalty
Garner Profitable Trials, to Increase
Customer Life Time Value
We suggest Tie-ups with caterers to host Marico
chat plaza counters in weddings and functions to
penetrate the market which is worth more than Rs
1 Lakh Cr
Bundle ready to eat products into a saffola Picnic
Basket
Add a saffola Blanket into the basket to drive
brand loyalty
T&L Partners to include Oats dishes in their
complimentary breakfast menus
Use fact sheets to convert trials into regular
customers
Convenience
Choice
Consumption
Increase dominance in theatre segment
Generate upto 20% increase in Marico revenues per theatre
Increase Brand Resonance
Increase in Revenues by 15-25k per wedding catered to
Bundling to drive trials of new products
Incremental sales almost up to 2% of the T&L industry
Inculcate a habit for oats consumption by generating trials
Create a B2B channel with regular off takes
Reasons for threats to Saffola oats in
India
Price sensitive market and perception
Increase in competitors and cheap prices
Preference for small SKU’s due to ease of use and
having different items for breakfast daily
Threat from other cereals
Opportunity Assessment exposes major entry areas like healthy food for breakfast and capture
the oats market which is worth 200 crores
Entry Opportunities in Value Chain
Daily Extension services
Importance
in value
chain
Synergy
Potential
P
Availability in malls
Threat from competitors
P
Online orders through various sites
P
P
Satiety potential of 40g packets
Marketing through Kirana stores
P
Leveraging benefits of safflower oil
Call centre service for consumers
Set up of extra awareness campaigns
Few of the entry areas in industry have a strong synergy with existing businesses of
Marico
Source: Team Analysis
P
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