Sugar Free

COMPANY BACKGROUND ZYDUS WELLNESS LTD. In 2006, Zydus Cadila bought Nutralite (a table spread brand), a healthier alternative to butter, from Carnation Nutra Analogue Ltd. Subsequently, through reorganization, all wellness brands like Nutralite, Sugar Free Gold and Sugar Free Natura, Dlite, and skincare products like Everyuth were brought under a company named Zydus Wellness Ltd. Health and wellness have been identified as the emerging areas in consumer healthcare. The Company is focused on empowering individuals who wish to adopt healthy eating habits and lifestyles. It is a pioneer, offering healthier dietary options to the consumers. The product range comprises Sugar Free Gold Indias No.1 sweetener with a market share of over 70 per cent, Sugar Free Natura a zero-calorie sucralose-based sugar substitute, Sugar Free Dlite a lowcalorie healthy drink and Nutralite a premium cholesterol-free table spread. Nutralite has emerged as the second largest brand in the category of butter and butter substitutes.

SUGAR FREE: THE BRAND JOURNEY

Phase I ( 1988-1992) In 1988, Sugar Free was launched as an ethical drug by the Ethical Drug Division of the Company and promoted through doctors for diabetic patients. All this while, it was promoted using below-the-line promotions as the Law did not permit it to be sold as an OTC (Over the Counter) product. At that time, excise duty was levied on cost of production and hence the brand had a reasonable gross contribution. In early 90s, excise was levied on MRP which substantially reduced the gross contribution of the brand. In 1987-88, the Cosmetic Division marketed the Everyuth brand of face cream which was a huge success.

Phase II (1993-99) In 1993, Sugar Free moved to the Cosmetic Division and was promoted as an OTC product as the changes in the Law permitted its sale as an OTC. In 1993, the brand moved to the Consumer Products Division having other cosmetic brands.

Phase III (Post-1999) Till 1999, packaging was in blue and white having a very clinical look; and the shape of the package was oblong. Thereafter the brand underwent a complete makeover.The colour of the pack was changed to a vibrant yellow with the idea that it would stand out in the shelves of the dull, dark retail shops. Around that time, yellow Zen, introduced by Maruti, was in vogue. The shape of an hour glass was chosen for the

pack of this low-calorie sweetener to indicate fitness. The brand was thus revived with a new look, new focus, and a change in strategy.

Advertising In order to create awareness for Sugar Free as a table-top sweetener, the company decided to advertise on TV. Due to severe budget constraints, the ad agency bought spots in Aaj Tak -- a new news channel where spots could be bought at a very attractive rate. The 9/11/2001 incident increased the viewership of the news channels to a great extent which substantially increased the awareness about Sugar Free as a table-top sweetener in a very cost-effective manner. Through advertising they were able to create consumer pull and the grocery stores were more than willing to keep one brand of the artificial sweetener with the increasing health consciousness among urban dwellers. In 2002, with the expiry of the patent of Asparatame, a major ingredient of artificial sweetener, it was possible to source it cost-effectively which provided good contribution margin. Being a bulk buyer, the company was able to negotiate the raw material prices which also enabled the company to invest in advertising/above the line communication to promote it as a lifestyle product. It was estimated that there were 12 million fitness-conscious people residing in metros and big cities. Hence it was decided to promote it as a lifestyle product for the healthconscious calorie watchers. Thus Sugar Free was promoted as a substitute for two teaspoon of sugar containing 40 calories. The Cricket World Cup (2003) event also increased the viewership of the news channels and the use of Harsha Bhogle and Raveena Tondon as endorsers in a TVC further helped in increasing the awareness of the brand (see Exhibit 4 for the storyboard of TVC of Harsha Bhogle and Raveena Tondon)

Market segmentation It was seen that in the higher income urban households, particularly in case of adults with sedentary lifestyles and an indiscriminate consumption of sweetmeats and confectionery, incidence of Type II late onset, post-30 years diabetes and hypertension was quite high (as opposed to Type I infantile diabetes). One estimate projected Indias diabetic population to go up to 75 million by 2025. Also increasing health consciousness among urban households provide a good market potential for Sugar Free.

Phase IV: Brand Extension and Sub-brands In 2004, Sugar Free Natura, a brand extension, was introduced. It was made from Sucralose, an extract from sugar, which being heat stable, allowed culinary applications. Culinary applications were promoted through ads endorsed by Sanjeev Kapoor (see Exhibit 5 for the story board of TVC). Even though the promise by both Sugar Free Gold and Natura was the same i.e., saving of calories both were promoted very distinctly in terms of applications. Sugar Free Gold was promoted as a table-top sweetener whereas Sugarfree Natura was promoted for its use in culinary applications. This name was promoted by emphasizing cooking possibilities so that Sugar Free Gold which was made from Asparatame was not

cannibalized. People needed to be educated about the taste because earlier Saccharin, which was a sugar substitute for diabetics, left a bitter after-taste in mouth. Also legally, use of artificial sweeteners was not permitted in any food preparation in India, but the ban was lifted in 2002. As Sugarfree Natura was promoted for cooking applications, the market preferred it in a powder form though it was available both in powder as well as tablet form. The percentage breakup of turnover of powder and tablets was 10:90 in case of Sugar Free Gold whereas it was 50:50 for Sugar Free Natura. Exhibits 6, 7, and 8 present the storyboards of TVC used in 2006, 2005, and 2004 respectively. The company launched Sugar Free Dlite, a soft drink, using artificial sweetener in 2007. It was in a ready-todrink form and the company had to resort to an extensive distribution of free samples to change the preconceived notion of a bitter taste of artificial sweeteners. Initial campaigns of Dlite positioned it as 85 per cent less calories and the latest one emphasized, only 10 calories. For 2-3 years, the company spent heavily on free samples for generating trials and word-of-mouth campaigning, thus indirectly promoting Sugar Free along with the new products.

Summary of Storyboard used Over Years for Sugar Free year Brand Product group Pharmaceuticals Description Raveena and Harsha make their way through the crowded airport hoping to be on time. 2004 Sugar Free 2005 Sugar Free natura 2006 Sugar Free natura Pharmaceuticals Foods A pair of feet rush up a street. A man going his way suddenly stops on seeing something. Foods The film opens on Sanjeev Kapoor,, the master chef, having his bed tea. 2006 Sugar Free gold Foods A woman busy with her household chores asks her maid to go for Tai Chi class... 2008 Sugar Free gold Foods The ad starts as Bipasha enters an event and is asked about the secret of her fit figure.

2003 Sugar Free

Storyboard of TV Commercial of Harsha Bhogle and Raveena Tandon (2003)

Raveena and Harsha make their way through the crowded airport hoping to be on time.

Just as they make it to the counter the attendant informs them that theyve missed the flight.

However, with lady luck on their side, the attendant tells them, But theres another one shortly.

With time on their hands, Raveena suggests some tea, but Harsha goes for coffee.

At the restaurant when the two stars are offered sugar, together they jump up and refuse, No Ill have Sugar Free.

As the two enjoy their drinks, Harsha informs Raveena, Do you know that Sugar Free has only two per cent of the calories of sugar.

In turn Raveena reminds him, And you know we might miss our flight again.

MVO: Sugar Free, Less Calories, More Fitness.

Storyboard of TV Commercial (2004)

A pair of feet rush up a street.

They hurry up a flight of stairs...

...and running down a passage, enter a room and dashes towards a bench.

Finally sitting on a bench she throws away her shoes and stretches her feet.

MVO: Freedom means different things to different people...

...Sugar Free. Freedom from calories. Super: Freedom from calories. Storyboard of 2005 TV Commercial

A man going his way suddenly stops on seeing something

A display of an ad from Sugar Free Natura reading...

...Made from sugar, tastes like sugar, but has no calories. affects him with...

...great wonder. As he leaves we see other people looking at the ad with amazement.

Story Board of Sanjeev Kapoor TV Commercial

The film opens on Sanjeev Kapoor, the master chef, having his bed tea.

People look at him in surprise as they see the man having tea while on a walk.

Cut to the shot of the chef enjoying his tea while having bath.

He continues having tea even on his way to office and then later in the lift.

VO: Hum chai ke shuakeen logon ke liye jitni hi chai ho, utni hi kam. Isiliye I use Sugar Free Natura...

...Meethas cheeni jaisi lekin calories bilkul nahin. Toh cheeni ya Sugar Free Natura. Faisla Aapka.

Storyboard of 2006 TV Commercial

A woman busy with her household chores asks her maid to go for Tai Chi class...

...in her place. Following theorders, the maid is seen attending the class.

An executive enters the conference room and tells his colleagues, Meri ek bahut zaroori meeting hai. Tum log...

...mere liye jogging kar aao. The executives leave the conference room and are seen jogging in the park.

Cut to a very busy woman asking a fat man, Gaurav, mere liye aerobics ke liye...

...jaaoge, please? The overweight figure does as he is told and is seen in the aerobics session.

VO: No time to exercise? Make a start with Sugar Free Gold. Din ke 500 calories...

...Kam. Tension khatam. New Sugar Free Gold. Super: Freedom from Calories. SUGAR

Story Board of TV Commercial Aired in 2008

The ad starts as Bipasha enters an event and is asked about the secret of her fit figure.

She replies by making a curvaceous figure with her hands.

\ The figure is then replicated at yoga centres.

We see people including it in their workouts.

Next shot, Bipasha comes out of a gym and reaches for her lemonade.

A waiter asks if she would like sugar in it and she says no.

Then, she makes the curvaceous figure again which is actually a bottle of Sugar Free Gold.

\ VO: Apnaiye Sugar Free Gold aur keejiye sugar kee unchahi problems ko dur.

The ad ends as she says that it is Sugar Free Gold which is her fitness secret.