23/09/2019

Case Analysis on Saffola Cooking Oil

Submitted To: Amol sir Submitted By: Akash Chatterjee

Partha Pratim
Indranil Sarkar
Rohit Joshi
Subham Goswami
Arnab Dey
Declaration:

We hereby declare that the Case Write Up on The Saffola cooking oil, submitted to
Mr. Amol Ohal sir, is a record of an original work done by us based on our concept
and case reading.
Arnab Dey
Akash Chatterjee
Partha Pratim Maity

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Table of Contents
Declaration: .................................................................................................................................................. 1
1. Introduction:............................................................................................................................................. 3
1.1.History ................................................................................................................................................ 3
1.2. Healthy decade.................................................................................................................................. 4
1.3. new challenges to the new century.................................................................................................. 4
1.4. Consumer study................................................................................................................................. 4
1.5. repositioning for growth ................................................................................................................... 5
2. Kapferer’s brand prism ............................................................................................................................ 5
3. Segmentation Targeting & Positioning (STP) .......................................................................................... 7
Segmentation ........................................................................................................................................... 7
Targeting ................................................................................................................................................... 7
Positioning ................................................................................................................................................ 7
4. Repositioning/Rebranding strategy: ....................................................................................................... 8
5. Recommended Strategy ........................................................................................................................... 9
6. Reference:............................................................................................................................................... 11

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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 Marico’s 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.

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1.2. Healthy decade

• Higher PuFA (poly unsaturated fatty acid) used in marketing efforts.

• Consumers were mostly urban dwellers who belongs to SEC A.
• Doctors recommendation to use this brand.
• Above the line promotions to strengthen its position within the heart patient.
• Indirect methods to reinforce the brand as therapeutic for the heart.
• The twin-pronged strategy i.e heart patients were increasing in india and people were
thinking that they were taking some precautionary action.

1.3. new challenges to the new century

• Sales had begun to stagnate

• Brand variants were Saffola and Saffola tasty.
• Increase intensity of competition.
• Narrow segment of consumers i.e. heart patients.
• Premium price.

1.4. Consumer study

In 2001, Marico used a market research agency to find the root cause of stagnation of sales
and for brand repositioning. Quantitative research was done on eight families on in three
metropolitan areas. The objective of the study was to understand the customer and the
homemaker’s reaction to the brand, evaluate the brand’s marketing mix, assess competition and
develop cues to adjust the positioning and overall strategy.

Cooking oils were mainly of two types: Heavy and Light. In second type, Sundrop was
competing brand and clear leader and having high recall value and later Saffola almost near. The
Key highlights were:

• Saffola had higher recall values

• Perceived as light, refined and healthy cooking oil
• It is viewed as problem-solution brand

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 • Customers were forced to spend more than they would have preferred.
• Saffola Tasty had a low recall value.

1.5. repositioning for growth

The objective of the campaign done by Marico Ltd was to reposition such that the franchise
would be broadened without losing the price premium. The agency decided to evaluate pros and
cons of Saffola’s current brand image, and consider whether to leverage its existing strengths or
reposition the brand altogether. Saffola brand was studied using Kapferer’s brand prism
framework. In this prism a brand is evaluated on six dimensions: three internal (physique,
personality, and culture) and three external (customer self-image, relationship, and customer
reflection). Through this model, the team exposed to a clear articulation of what Saffola stood
for. Some elements were detaching the Saffola’s 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.

2. Kapferer’s brand prism

Brand Saffola was studied under above framework. Through this model the team was exposed to
a clear articulation of what Saffola stood for including the positive and negative attributes.

The team felt to position itself as an optimistic, forward looking brand. Saffola should reposition
itself as a brand for healthy living, rather than just for a healthy heart, thereby including all the
family members. In the brand prism fear was replaced with care and happiness, therapeutic was
replaced with proactive, and heart was replaced with health. To communicate this new
positioning it launched Saffola Nutriblend. Saffola positioned itself as the choice for healthy
living. An ad was released with title ‘Sehat Se Jeena Hai’. The 30 second ad resulted in drastic
shift from the negative imagery that it had employed in the past. The commercial ended with a
byline “Saffola- The heart of a healthy family”. In order to drive the new positioning platform,
Saffola engaged below-the-line marketing activities. Saffola used doctors to promote the brand.
It made a step further by initiating tie-ups with sports clubs, health clubs and gyms.

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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.

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3. Segmentation Targeting & Positioning (STP)
Segmentation

Psychographic

• Known for therapeutic properties

• Not perceived as tasty for customers
• Perceived of medical nature and unfit for children

Demographic

 45+years Male Socio-Economic classification-A

Targeting

 Mainly targeted for middle aged Urban customers who were health conscious

Positioning

 Positioned as a solution for heart diseases which created culture of fear

 Perceived as a savior and solution provider leading to low involvement with customer.
 Had to deal with increase in intensity of competition from Sundrop and regional
competitors

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  Point of Parity

 Belonged to category of edible oils

 Saffola Tasty at lower price in response to Sundrop

 Points of Disparity

 Premium price of Saffola in comparison to competitors

 Perceived as light, low fat and good for heart in spite of no taste/smell

4. Repositioning/Rebranding strategy:

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 don’t
have time to take care of their health but they are worried. These individuals know the need of
healthier lives.But it didn’t 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, Suffola arrived
at “first step to healthy start” positioning strategy. The aim was also to draw the user’s 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. This position strategy of Saffola needed to shift from the culture
of fear to culture of trust. The customer self image was redefined as health-conscious but
carefree. So for implementing the strategy they have taken some steps those are ---

 Broadened their demographic segment into women, SEC A & B in age group of 25-45
years focusing on urban dwellers.

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  Shift from wrong side of heart (heart attacks, hospitals and doctors) to right side of the
heart (healthy living, stamina, overall feel good factor)

 Introduction of Saffola gold for new generation of customers

 Customer self image was redefined as health conscious but care free

 Trying to increase one on one interaction with customers which initiation like “Diet a
Dietician” program.

5. Recommended Strategy

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What is narrowing down to target market for Suffola oil:

What dimensions they have to use to segment market:

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6. Reference:
1. http://tutor2u.net/business/marketing/segmentation-targeting-strategies.html.

2. http://outtoown.com/2019/8/02/strategic-marketing-segmentation-the-6-consumer-
segments/.

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