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Case Analonysis Saffola 101
Case Analonysis Saffola 101
DECLARATION
I hereby declare that the Case Write Up on The Saffola Journey , submitted to Dr.
Dindayal Swain, is a record of an original work done by me based on its case
reading.
Index
1.
Case Summary/Introduction
2.
Basic Issues
3.
SWOT Analysis
4.
Strategies
5.
Reference
1. Introduction:
This case critically analyzes the positioning journey traversed by Saffola, one of India's leading
cooking oils. For nearly half a century, Saffola was strongly associated with the health of the
human heart, with its visual language, communication strategy, and brand positioning, all
revolving around heart-related risks. With changing trends and market sentiments, Saffola became
painfully cognizant of its shrinking relevance as a brand, indicated by stagnating sales, thus posing
a unique conundrum: how should Saffola expand its user base to include non-heart patients, while
still being relevant to its current, loyal user base? In order to address this, the marketing team at
Saffola undertook two re-positioning exercises, one in 2001 and the other in 2004.
1.1.history
Harsh Mariwala, the Managing Director of Marico Ltd, had joined his family business. The
company was Bombay Oil Industries Ltd. In 1983, BOIL formed three divisions: the Consumer
Products Division, the Fatty Acids and chemicals Division, and the Spice Extracts Division. Harsh
Developed Consumer Products Division and functioned as Executive Director from 1980 to 1990.
In April 1990, Boil was resurrected; the Consumer Products division was made into a separate
entity named Marico Industries Limited. Harsh took over as the Managing Director of Marico in
1990. Marico was transformed into high quality consumer Product Company.
The major operating divisions were Nature Care and Health Care. Marico pioneered the
introduction of branded products in the markets that were until then entirely commoditized in
India. Parachute and Saffola were Maricos flagship brands in the hair oil and edible oil categories,
respectively. Marico made its initial public offer in March 1996. Saffola launched as edible oil in
1960s. After a couple of decades, Saffola had carved a niche for itself in the edible oil category.
Marico recognized that there is a huge potential for edible oil in India and initiated a strategic focus
to develop the Saffola brand.
1.2. Healthy decade
Above the line promotions to strengthen its position within the heart patient.
The twin-pronged strategy i.e heart patients were increasing in india and people were
thinking that they were taking some precautionary action.
Premium price.
Customers were forced to spend more than they would have preferred.
Some elements were detaching the Saffolas long term goals. Physical facets such as heart imagery,
strong brand name benefited Saffola. The brands personality was viewed as detached and
authoritative, akin to customers likely referral source. The brand lack direct emotional
involvement with the customer. It had built a culture of fear around itself.
Saffola experienced 15% growth initially and the Saffola team was happy about the results. But
after the end of campaign the sales were again stagnated. Again analysis was done on the dip of
sales. It was found that most of the users were old users, and they were experimenting the new
variant. The repositioning had not worked.
Series of interviews were conducted with the customer base. This revealed that consumers
still believed it is specifically related with heart. About 35 to 40% of volumes were
achieved through doctor advice. About 85% of consumers were suffering with heart
ailment (random sample of 20 users).
The second source was a study conducted by the Saffola Healthy Heart Foundation. It
revealed that 1 out of 4 adults at a risk of heart problem. This clearly indicated that there is
a chance for improving sales by the Saffola.
Saffola gained a strong market share and became a brand of choice in its existing market segment.
It had managed to establish the cognitive brand of meaning as the best heart care oil. It had this
segment in its pocket. It was trying to grab non-heart related segment.
It had decided to broaden its appeal to include whole new segment mainly women or couples in the
age group of 25 to 45 years and living in metros. Individuals of this segment had basic health
consciousness. Most individuals in this group were busy with their packed lives. They even dont
have time to take care of their health but they are worried. These individuals know the need of
healthier lives. But it didnt turned into action.
Saffola decided to include this hopefully healthful lifestyle segment into its ambit. It recognized
that, to this group, the idea of healthy living is so important, and a healthy heart was just the
starting point. In order to combine its core competence with this segment, agency arrived at first
step to healthy start positioning strategy. The aim was also to draw the users attention on how
heart plays a crucial role. The idea of this strategy is to place from wrong side of the heart to right
side of the heart. It decided to position this strategy through sub product Saffola Gold. Saffola
Nutriblend was discontinued. Agency believed that Saffola needed to shift from the culture of fear
to culture of trust. The customer self image was redefined as health-conscious but carefree.
The ad agency put together a brand new campaign for the Saffola marketing team titled Kal Se.
The ad portrayed a protagonist as constantly making a symbolic effort to become healthier, but
falling short on determination each time. Recognizing her husbands complacency, the lady decides
to take matters into her hands and switches over to Saffola Gold.
The team decided to above-the-line marketing, in addition to this it decided to employ a 360degree marketing approach, with a strong below-the-line plan. It sponsored Laughter Olympics,
Dial a Dietician programs, TV shows such as Jassi Jaisi Koi Nahin, and Astitva.
In order to rejuvenate its older customer segments, Saffola extended its brand product line in rice,
oats, salt, and atta under the brand name Saffola Functional Foods.
2. Issues:
3. Swot analysis:
STRENGTH
Higher PuFA
WEAKNESS
Fear factor
Higher premium
Taste indifference
Cannibalism
OPPORTUNITY
Compromise in premium
360 degree marketing- it means bringing a brand into life, using all possible contact points
THREAT
Sundrop competition
3. Recommended strategy:
4. Reference:
1. http://tutor2u.net/business/marketing/segmentation-targeting-strategies.html.
2. http://outtoown.com/2010/11/02/strategic-marketing-segmentation-the-6-consumersegments/.