KaushikChandrashekarDevadhasKishanDanielKJAnushaRaniGoshalramGovindarajan

PGP/18/082PGP/18/190PGP/18/285PGP/18/345
Emailid:kaushikc18@iimk.ac.indevadhask18@iimk.ac.inanushar18@iimk.ac.ingoshalramg18@iimk.ac.in
Mobile:8000837437703423578899622195959633096240

TableofContents
ExecutiveSummary.........................................................................................................................................................................3
1. SecondaryResearch&Findings..............................................................................................................................................4
2. PrimaryResearch&Findings..................................................................................................................................................4
2.1 FocusGroupDiscussion..................................................................................................................................................4
2.2 InDepthInterviews.........................................................................................................................................................4
3. InsightsfromtheResearch.....................................................................................................................................................5
3.1 NeedGapAnalysis..........................................................................................................................................................6
4. Approach.................................................................................................................................................................................6
5. UpdatedBrandArchitecture...................................................................................................................................................6
6. USPoftheBrand.....................................................................................................................................................................7
7. ProductPortfolioandCharacteristics.....................................................................................................................................7
8. MarketingStrategy.................................................................................................................................................................7
9. Pricing.....................................................................................................................................................................................8
10.Illustration..............................................................................................................................................................................8


ExecutiveSummary

Problem Statement: What should be the strategies adopted by ITC to achieve significant market share and
sustainablecompetitiveadvantageinhealthsegmentoftheBiscuitsmarket.
Research Methodology: Secondary research techniques such as current trend and competitor analysis, Primary
researchtechniquessuchasFocusGroupDiscussion,Indepthinterviewswithretailers,distributors,salesmanfrom
Kozhikode,Chennai,Bangalore,Ambasamudram(TN),SurveyQuestionnaire,NeedGapAnalysis,Conjointanalysis
weredonetoarriveatourrecommendations.
MajorChangeinTrendstobeaddressed:

Consumersshowingmoreaffinitytowardsnaturalfooditemswithoutartificialingredients
Consumerslookforbiscuitstocatertheirparticularhealthillnesssuchasdiabetes,Obesity
Consumersarepreferringhealthierandtastierofferings
Consumersthosewhofrequentlymisstheirdietsarelookingforbiscuitsthatcouldbesupplementtotheir
food
Consumersarereadytopayslightlypremiumpriceforhealthbenefits
Consumersareconsciousaboutthehealthbenefitsofbiscuits
Consumersareawarethattheirdailyfoodconsumptiondoesnotmeetdailynutritionsrequirement
OurRecommendations:

OfferFarmliteNutrimaxderivedfromgoodnessofwhichcanfulfillsnutrientsrequirementsofpeopleaged
30+
Provide Farmlite Wellness to target consumers looking for biscuits to cater particular disorders such as
diabetes,Obesityetc.
Improvethelabelsoftheexistingproductsbyaddinghealthbenefits(SugarFree,TransfatFree)toit
MaketheexistingFarmlitelinetastierbyaddingbanana/applewhichcanaddflavor
PromoteFarmlitebiscuitsasanalternatefoodsupplementtohealthdrinks
KeeptheMarielightbrandseparatelyinarchitectureasitisperceivedasjustnonharmfullightteatime
snacks
Marketing:Inordertobringaboutawarenessabouttheproductofferingsaswellasbrand,themarketingcampaign
should not only be promotional but also educational. Therefore a 360 degree marketing campaign using the
traditional media like TV, Newspaper, Radio advertisements along with other online and offline engagement is
recommended
Promotionalvideolink:https://youtu.be/MN8xCSfYRDY
SKUs: In health segment, SKUs of 75gms & 100gms have very short product cycle time according to survey and
distributorsinput.HencetheabovementionedSKUsarerecommendedduringtheinitiallaunchandactivation
Pricing:Asweareofferinguniquevaluepropositiontoourbiscuits,wearerecommendingvaluebasedpricing
instead.Inthepricingmatrix,weareplacingournewofferingsinvariousdegreesofqualityandpricerange
dependingupontheirpositioning.


1. SecondaryResearch&Findings

Themostimportantfindingisthatthecurrentvalue Percentageamongthosetryingtolose
salesgrowthofbiscuitsisat12%whichislowerthan weight
thereviewperiod(201415)CAGRof17%. 90%

According to Nielsens Global Health and Wellness 80%

70%
Survey, the consumers around the world are 60%
50%
attemptingtotakechargeoftheirhealththroughdiet 40%
andexercise. 30%
20%
Toloseweight,68%ofconsumersarelookingtocut 10%
downtheirfatsintake,60%arelookingtocutdown 0%
ChangingDiet DoingPhysical TakingDiet Taking
onsugar;54%prefereatingmorenaturalfood Exercise pills/shakes medicines
Awillingnesstopayapremiumforhealthbenefitsis prescribedby
doctors
higherindevelopingmarketsthanelsewhere.Itisas
Percentageamongthosetryingtoloseweight
highas93%inAsiaPacificregion

2. PrimaryResearch&Findings
2.1 FocusGroupDiscussion
A focus group discussion was conducted among 10 participants between the age group of 2330 years. The key
insightsfromthediscussionareasfollows
Almost90%oftheparticipantsareawareofthehealthbiscuitsavailableinthemarket
80%oftheparticipantsfeltthatwomenarethedecisionmakersinthepurchaseofbiscuits
MaximumtopofmindrecalloccurredforBritanniaNutrichoicebiscuits
Onanaverage60%peoplesaidthattheyatebiscuitstosatisfyhungeroutofwhich75%wasowingtothetaste
80%peoplethinkhealthdrinkslikeBoostaretheonlysupplementstofulfilltheirnutrientrequirements
80% of the participants have the habit of reading the benefits like sugar free, proteins, vitamins etc. on the
packageofhealthbiscuits
2.2 InDepthInterviews
In depth interviews were conducted with retailers/distributors from Calicut, Chennai, Bangalore and
AmbasamudramaswellaswithdieticianfromChennai.ConsumerSurvey
ThefollowingcommentsweremadebyGanesh(BritanniaSalesman),AbiramiTraders(BritanniaDistributor)and
Selvam(ITCDistributor)innoparticularorder.

Nutrichoicedigestivebiscuitsissynonymoustosugarbiscuits(biscuitsthatcontroldiabetes)amongmajor
chunkofconsumers
Digestivesarethefastestmovingcategoryinthehealthsegmentwithveryshortcycletime
Diabetesandobesityaretheprimereasonsforpeopletoshifttohealthbiscuits
Although Nutrichoice Crackers also possesses 0% cholesterol and 0% transfat properties, it is not very
popularamongconsumers
TherecentpoormovementofNutrichoiceHeavensandEssentialshasbeenforcingthecompanytooffer
discountschemesontheproducts
BrandrecallforNutrichoiceDigestivesisthehighestamongconsumers,with75gm&100gmsellingthemost

ThefollowingviewsweresharedbythefamousdieticianMs.GomathyGowthamanfromChennai.

Patientswithdiabetesandobesityareconstantlyonthelookoutforbetteralternatives
Dieticians have been recommending working professionals to fulfill their nutritional requirements with
varioussupplements
Peopleyearnforhealthysupplementsinordertosatiatetheirhunger,tasterequirementsaswellashealth
benefits
Thereisincreasedaffinitytowardsnaturalandorganicfoodsanditisgrowingatatremendousrate
Peoplearereadytopaypremiumforhealthorientedofferings
Mariebiscuitsstillcarrytheperceptionofteatimesnacks
2.3ConsumerSurvey
Adetailedquestionnairewasfloatedandatotalof90responseswererecorded.74.4%ofthemwereintheage
groupof30plusand56.6%werefemales.TherespondentswerefromallpartsofIndia.

100% of the respondents prefer natural ingredients Predominanthealthproblemsamongthe

overartificialflavors respondents
71.1%oftherespondentspreferredsugarfree,Maida
Diabetes
free biscuits offering cholesterol and weight loss
properties Headache

82.2%oftherespondentswouldpurchaseabrandof Obesity
biscuitifitprovidesbothhealthbenefitsaswellasgood
Visionproblem
taste
43.3% of the participants prefer trying out new LegPains

offeringsinthemarket 0 20 40 60 80 100

Iron and Vitamins are the most predominant Percentage

supplementstherespondentshavetakensofar

3. InsightsfromtheResearch
Thereisastrongneedtocapturecustomerswhoarebecominghealthconsciousandswitchingtoothernatural
optionslikefruitsetc.
Healthconsciouscustomersarecheckingcautiouslyforvaluepropositioninpackagebeforepurchase.
Thepredominantunmetneedsinthehealthbiscuitsegmentarethelackoffruitmadebiscuitswhicharerichin
multivitamins
Itisimportanttocatertherisingdemandfromsugarfreeandobesityreducingsegment
Peoplehaveneedforfoodsupplementwhichisahealthierandtastieralternativeotherthanusualhealthdrinks
Companiesareexpectedtoinvestineducationalmarketingtoactivateneedamongcustomerswhoarenotyet
sensitizedparticularlyinsuburbanandtowns
Aspertheconjointanalysisresults,theconsumerspreferredlargesizeandmediumthicknessbiscuits
Thereisalsoaneedtoprovidespecificsolutiontoproblemsratherthanprojectaonesolutionforallproblemsapproach


3.1 NeedGapAnalysis
CURRENTSCENARIO GAPANALYSIS DESIREDSCENARIO
Under the Nutrichoice umbrella, sub brands The packaging does not Different variants for
havebeenintroducedwhichcaterstoalmost havemuchemphasisonthe specific target groups
allagegroupsandhealthissues. healthbenefits and prominent shelf
ThelargeshelfspaceoccupiedbyNutrichoice No variants to address space
directlyconvertstogoodbrandrecall specific ailments of Packaging highlighting
ThecurrenthealthportfolioofSunfeastcaters individuals the health benefits to
tohealthenthusiastsbutdoesnotdemarcate Current90sadsarelengthy grabtheeyeballs.
acleartargetsegment. andnotabletocapturethe 30s Ads for each sub
Peoplecutdownoncalorieswithoutrealizing interestoftheTG brand to explain the
the implications of acquiring nutrient benefits
deficiencies

4. Approach

INPUT PROCESS OUTPUT

People's preference for Labelling value New Marie Light with
natural food, for checking propositions(Maida free, values mentioned in its
values(Zero fat, Zero sugar) Transfat free) in existing packages, Nutrimax brand
in package, lack of biscuits ranges like Marie, with Multi Nutrients
attractive alternative to offer multi vitamin biscuits derived from goodness of
natural food supplements, with goodness of natural finest fruits, Wellness
new surge in demand from fruits, offer cookies brand to focus the needs of
particular health targeting speciifc disorders customers with speciifc
issues,people's attitude to like diabetes, bone care, ailments like diabetes, New
pay more for healthy food, make existing product line Farmlite with better taste
need for natural multi tastier by adding banana or
vitamin biscuits , offer apple with existing farmlite
health plus taste as overall range
value

5. UpdatedBrandArchitecture
Sunfeast ProposedProduct Description
Nutrimax ( Fig and Fulfills all the nutrients
Cranberry) requirements of consumers
Marie Farmlite
above30years
Wellness Bone Care Helps recover from bone
Oatsand (DatesandApricots) related problems like
almonds, Nutrimax
raisins
Wellness Osteoporosis,arthritis,etc.
Wellness Diet Bite Helps consumers control
(Avocado and obesity related problems by
grapefruit) controllingbodyweight
Dietbite Wellness Sugar 0 Helps in controlling the blood
Sugar0 BoneCare
(Highfibrewheatsand sugarlevels
oats)

6. USPoftheBrand
BRITANNIA
ThehealthbiscuitsofferedbyBritanniadonotcaterto
major health ailments in India. There is confusion in
product architecture. For example, majority of the
Britanniaconsumerssufferingfromdiabetesconsume
Nutrichoice digestive biscuits instead of Nutrichoice
Essentials
SUNFEAST
Underourproposal,wesuggestuniquevariants,
a. Catering to three major health disorders faced by
Indiansabovetheageof30and
b. Fulfillingthenutritionalrequirementsofadults
Thesebiscuitsaddressspecificaswellasgeneralneeds
oftheconsumers

OURUSP:Healthierandtastierfoodsupplementsfromthenaturalgoodnessoffinestfruits
7. ProductPortfolioandCharacteristics
Farmlite,
Marie Farmlite Farmlite,Wellness
Nutrimax
Oats/Wheat+Apple/
BoneCare,DietBite,
Varieties Original/Oats/Orange Banana+Almonds/raisins+ Original
Sugar0
peanuts

Value Lowfat,Cholesterol Nutrientfood

Healthy&Tasty ProblemSolution
Proposition Free,NoTransfat supplement

Mom'scarefor Finestmixtureofdreamy
Strengtheningthe
family,Amom ingredientsblendedtogive Goodnessofiron
bones,Wayto
carefullypicking healthyandtastydiet, andomega3for
Advertise reduceweight,
vegetablesetc.will Audiencewillgettodream bloodproduction
reduceglucose
pickMarieintoher mode(mmmmm.)when andhearthealth
levels
Kitty theybiteit
Positioning MassProduct PremiumProduct Premiumproduct Premiumproduct
Target HouseWives, HealthConsciousWorking Forallage 30+agedpeopleand
Audience Mothers ClassPeople segment elderlypeople
SKU/Pricing 100g,150g 75g,150g 75g,150g 100g
Pricing Value price
Marketpricestrategy Valuebasedstrategy Valuebasedstrategy
Strategy strategy
Roundshaped
Roundshaped
Currentpackagingisfair Cookiespacked
Packaging Goldenyellowcolor Cookiespacked
enough similarto
similartoFarmlite
Farmlite

8. MarketingStrategy
As the brand introduces two new categorieswith different value propositions, a 360 degree marketing strategy
shouldbeemployedwithtraditionalmediaadvertisingonTV,radioandprintmedia.Inadditiontothesemeasures,
itisnecessarytoengagetheconsumersinordertoincreasewordofmouthmarketingandtherebyimprovebrand
awareness.Weareplanningtodomarketinginthreephases:
1) Teaserphase:Weshouldcreatebuzzbygivingfewsnippets/factsaboutournewproductofferingacrossthe
socialmediaanddisplayingplacardsinselectedpublicplaces
2) Launchphase:Launchingtheproductsuccessfullyacrossvariouschannels
3) Activationphase:Weareengagingthecustomersthroughofflineandonlinemediumasfollows:


OFFLINEENGAGEMENT ONLINEENGAGEMENT
Set up kiosks at places where health conscious CelebratingDiabetesday(Nov14),WorldHealthDay
network/hangout such as Jogging spots, Parks, Gyms, (Apr7),WorldHeartDay(Sep29)byconducting
Yoga can be used to make mass audience to try our onlinesocialmediacontests
products
Request dieticians to recommend our products and to Encouragepeopletopledgeforhealthierlifethrough
writeonarticlesandblogstosuggestourproduct healthierfoodonJan1stasoneoftheNewYear
resolutionsthroughsocialmediaevent
Setupstallsinsideairportandmakesalesofourproducts Introduce health networking forumsa platform for
to gain larger offline exposure among busy working consumers to share their experiences among
professionals themselves and also interact with dieticians thereby
formingahealthcommunity

9. Pricing

Nutrimaxisperceivedtobeofhigh
qualitybecauseofthevalueitaddsas
anaturalfoodsupplement
Wellnessispositionedasproblem
solvingandisperceivedasabetter
qualitythanNutrichoiceEssentials
anditcaterstothepremiumsegment
NutrimaxandWellnessarepriced
slightlyhigherduetothevaluethey
addtothecustomers
Marieisperceivedasamassproduct
cateringtotheEconomysegment
Nutrichoiceisperceivedtobeofa
betterqualitycomparedtoFarmlite
anditispricedslightlyhigher

10. Illustration

11. References:
1) Indiastat.com
2) NielsenTrendinHealthConscious2015
3) EuromonitorBiscuitsinIndia2015