Reigniting Saffola Masala

Oats

Team - Lost In Translation

NMIMS Mumbai

Neha Anna John

nehaannajohn@gmail.com

Rohan Pant

rohan.nitjsr@gmail.com

Nitesh Kabra

kabra.nitesh@gmail.com

+919167430940

Executive Summary
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 the
south 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

11/24/16

The Oats Market

Oats Market Share

Oats

18%
Quaker has the largest market share
in Oats
18%
Quaker has a first mover advantage
15%
but Saffola has the potential to gain
foothold among Quakers consumers
Saffola needs to introduce a small
Rs.15 pack for normal oats so the
Quaker
Saffola
Horlics
consumers can experiment and
Kellogg
Britannia
Others
switch to the Saffola brand
Saffola Oats needs to push its brand
Communication Strategy in modern retail at Eye Level shelves

Showcasin
g the
benefits of
Saffola on
the packet

Aware of
Oats
64%

32%

6%
11%

Promoting
Oats in cookery
shows and also
starting a new
YouTube
Channel

NMIMS Mumbai

Promote about oats

and its benefits in
SaffolaLife FB page
and interact with the
consumers

Users
21%

Not Aware
of Oats
36%
Non Users
43%

Never
Tried
33%
Non
Intenders
26%

Lapsers
10%
Future
Users
7%

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

Changing the Value Proposition

Brand Perception
80%

64%

60%

37%

40%

19%

20%
0%

Category 1
G ood for H ea r t

C h olest r ol Redu c t ion

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

W eig h t Redu c t ion

Current Value Proposition Of

Saffola Oats
Weight Reduction

Because of Saffola Gold Oil

people have a very strong
perception of the Saffola
brand being healthy for heart

NMIMS Mumbai

Building a value proposition around

heart makes more sense matching
peoples perceptions

Re-looking the Target Group

71%

80%
60%

47%

32%

40%
20%

53%

12%

0%
S t u den t s
W or k in g Pr ofession a ls(Ba c h elor s)
W or k in g Pr ofession a ls (Ma r r ied)
Ret ir ed

NMIMS Mumbai

11/24/16

Masala Oats As Snacks

Oa t s C onsu mp t ion P a t t er n

39%
48%
11%
62%
0%

Placing Masala Oats alongside

the Maggi shelves in
supermarket would throw
competition to Maggi noodles
in the snacking category

10%

20%

30%

40%

60%

Mor n in g (6 a m -1 1 a m )

A ft er n oon (1 1 a m - 3 pm )

Ev en in g ( 3 pm - 7 pm )

Nig h t ( 7 pm - 1 2 a m )

70%

People who would like to try masala Oats as snacks

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

32%
68%

Yes No

NMIMS Mumbai

50%

Differentiation

Solution

Dedicated Shelf
NMIMS Mumbai

40 gm mention

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%

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

NMIMS Mumbai

11/24/16

ROI Calculation

ROI Calculations
Costs Involved for the New Strategy

Costs

Remarks

Promotional costs
Facebook page promotions
Promotion through cookery channels
Creation of renewed advertising content
Creation of facebook content

Sampling costs
Sampling at canteens
Sampling with Saffola oil in retail outlets
Provision of discounts to customers at canteens

FB promotional expenses are based on advertising page expenses on FB to reach out to an

2639520 audience of 75-300 people per day.
2400000 Weekly spot on most highly viewed cookery shows on primetime to promote Saffola
3000000 Utilizing advertising agency to create renewed content for 3 advertisements
1000000 Write-ups and promotional content for facebook promotion

60000 Sampling at select IT parks and canteens in major cities for 3 months
Provision of samples with Saffola oil in retail outlets such as Spencers, Reliance, More and
4320000 Big bazaar across India
180000 Increasing usage by including it in food menus in canteens (Rs.1 discount per sample)

Labelling and packaging costs

Labelling on samples
Packaging for bundles

Including content on non usage of harmful ingredients, 50% extra and as a wholesome
4000000 meal
3000000 Creation of packaging for selling multiple varieties of oats together

Total costs involved

20599520

Revenue Involved for the New Strategy

NMIMS Mumbai

Revenue

Remarks

11/24/16
Hot cereals expected to grow at a CAGR of 40% and become 3897.2 crores in 2015 as per