Saffola case study Group no. 35-51, FOCUS
About Marico Industries Ltd. Best known for Parachute and and Saffola brands, brands, Marico IndustriesLtd IndustriesLtd ., (Marico) is one of the fastest growing FMCG companies companies in India. Its brands are market leaders leaders in categories categories such as coconutoil, hair hair oils, anti -lice treatment, treatment, refined edible edible oils, fabric fabric care andfood andfood products. products. With its well-known brands, innovative innovative marketing marketing initiative and distrib distribution ution position position it emerge as a leading player in the FMCG market.
Introduction of Saffola Brand Saffola Tasty Blend Blend is the first edible edible oil blend in the country. This oil blend blend provides the benefits of two oils, thereby giving adde added d value to the consumer. consumer. It provides the do-good properties of Kardiand the taste of Corn oil Over the Years, the brand Saffola has has become renowned for its expertise in Heart Care, thanks to the consistent introduction of innovative product like heart healthy cooking oil and foods. Saffola¶s products are the first in your line of defense against heart diseases, making your transition to a healthier lifestyle a lot easier.
Saffola ± Marketing product If we go by basic marketing product concept, a company can define tangible and intangible benefits to provide value to the customer. To start with, Marico also defined Saffola, the marketing product at three levels: SAFFOLA Saffola is a forty year -old brand, widely widely recognized by c consumers onsumers to be "Good for Heart". Saffola was manufactured by Bombay Oil Industries Ltd. (BOIL) and marketed by Marico Industries Ltd. The The Company entered entered into a Registered Registered Users Agreement Agreement da ted 26th September, 1990 with BOIL for the use of the brands Parachute and Saffola for an initial period of 3 years commencing from 1st April. From 1993, the products Saffola and Sweekar were manufactured manufactured at the Company's Company's factories. Saffola won the Most Ou tstanding `Brand `Brand of the Year' Award instituted by the Advertising Club of Mumbai. About product portfolio under saffola SWEEKAR is a national brand comprising of Refined Sunflower Oil. Sweekar has become synonymous with good quality light edible oil. It is positioned as a light and healthy cooking medium. The Sunflower category emerged in 1988 - 89 and and Sweekar quickly became one of the leading leading brands in this this category. The positioni positioning ng of Sweekar has evolved over over time - from the initial initial stand of lightness and 88% saturated, saturated, fat -free -free - to that of "Achcha Khana, Khana, hansi khushi ka Khazana" - to that of "Aapke haath mumkin har baat". It continues to be one of the leading brands among refined oils in the the consumer packs market. .
SAFFOLA GOLD - Marico Industries launched 'Saffola Gold, a blend of Ricebran and Kardi oils in a 80:20 ratio, which has dual benefits benefits of lowering cholesterol and enabling food cooked in it to absorb lesser oil.
Rice Bran Oil (RBO): Heart healthy nutrients in RBO such as tocopherols, tocotrienols and oryzanol are known for their cholesterol lowering ability. Safflower (Kardi) (Kardi) Oil: This has the highest highest levels of Linoleic acid, an omega omega -6-polyunsaturated -6-polyunsaturated fatty acid, which which is well known for reducing cholesterol levels.
Health Benefits
Safflower oil is low in saturated saturated fats and v ery high in unsaturated fats. Essential fatty acids are the precursors of prostaglandins, prostaglandins, which are hormone like substances that have a variety of functions like contraction and relaxation of smooth muscles, mus cles, control c ontrol of blood pressure, inflammatory response, response, etc. in humans humans and animals. Good source of cis-linoleic cis -linoleic acid, the omega omega -6 fatty acid in safflower oil is responsible for prostaglandin production. Cis-linoleic acid is also responsible for burning the brown fat in the body for heat rather than storing as white fat. Thus, safflower also aids in weight loss and its maintenance. maintenance.
SAFFOLA TASTY BLEND One of of the earliest TVCs in 1992 (by Marico¶s Marico¶s erstwhile erst while agency Ambience) played up the fear element and established the ³heart specialist´ image
Saffola Tasty was the first Saffola blend. This oil blend provides the benefits of two oils, thereby giving added added value to the consumer. consumer. I t provides the high PUFA from Safflower Safflower (Kardi) oil and the taste of Corn oil. Corn Oil has a unique taste and aroma. Safflower (Kardi) (Kardi) oil has the highest highest levels of Linoleic acid, an omega omega-6-polyunsa -6-polyunsaturated turated fatty fatty acid, which is well known for reducing cholesterol levels.
SAFFOLA ACTIVE - The Saffola refined edible oils franchise grew by 28% in volume over Q1FY08, led led by Saffola Gold. Gold. Saffola kept innovati innovating ng to come up with p roducts roducts to support the trend of an improved lifestyle that consumers want to adopt. It was the first refined oils brand to introduce introduce blends blends in the country country to offer a balance balance of PUFA and MUFA MUFA (poly unsaturated unsaturated fatty acids and mono -unsaturated -unsaturated fatty fatty acids). Rice Bran Oil (RBO): Heart healthy nutrients in RBO such as tocopherols, tocotrienols and oryzanol are known for their cholesterol lowering ability. Soyabean Soyabean Oil: A good source of Omega -3, which helps in lowering lowering cardiovascular risk factors along with s everal other health benefits. NEW SAFFOLA - At - At Marico's Research & Development centre, we continuously work towards incorporating the latest technological advances in all our products. This ensures that, any product which which comes out from Saffola, incorpora incorpora tes the latest learning learning in the field of heart care. Precisely why, your new Saffola® now comes with new ingredients. New Saffola, a blend consisting of Safflower (Kardi) Oil (60%) & Rice Bran Oil (40%) contains Vitamin E. Vitamin E is a well-know well -known n and potent pote nt antioxidant. antioxidant. Safflower Safflower (Kardi) Oil: This This has the highest levels levels of Linoleic Linoleic acid, an omega -6polyunsaturated fatty acid, which is well known in reducing cholesterol levels. Rice Bran Oil (RBO): Heart Heart healthy nutrients nutrients in RBO such as tocopherols, tocopherols, tocot rienols rienols and oryzanol are known for their cholesterol lowering ability. SAFFOLA SALT It consists of Sodium chloride (Iodized) Potassium Chloride Calcium carbonate It has 10% lower sodium content than other ordinary table or common edible salts. Presence of potassium prevents hypertension thereby also reducing risk of CHD and Stroke. y y y
SAFFOLA ARISE - Saffola Arise is a lower GI rice and so releases glucose steadily in the body over a longer period of time. This means you feel energetic throughout the day and you also feel fuller for longer.
Saffola Brand Objectives Achieve Ac hieve volume objectives Set up a distribution network Build a dealer franchise Build equity with customer Saffola Strategic Objectives To achieve leadership in the refined oils market Set up state-of-the-art manufacturing facilities in the heart of the oil belt Enter through a range of multibrand oils offerings Ensure the best in quality, packaging, pricing and focused distribution Growth Strategy o Expansion through concentration o Expansion through integration o Expansion through diversification o Expansion through cooperation
Strategy and implementation: Marico has entered refined sunflower oil category with launch of sweeka. Marico extended sweekar brand to introduce 2 new refined oils name sweekar cotton and sweekar mustered and also marico decided decided to go for multibranding multibranding strategy strategy by launching fresh adve adve rtising campaign. At this 1. 2. 3.
stage marico framed objectives are, Leverage Saffola brand brand equity in innovative innovative products. Use organised retail formats and innovative emerging media. Gain price premium and urbanise the port port folio, which which remains relevant relevant to new trends in consumer behavior.
For this staregy implementation Marico follows, Saffola as the ³Brand Extention route¶ Marico was considering category through creation. Innovative products, even if they have a long gestation period. The 400cr Saffola brand a platform to aggressively push the agenda on food. The new products products to occupy different eating eating and snacking options options t hrough hrough the day. The game plane was was to launch 3 -4 prototypes per year. The company is looking at, Saffola could be extended as Saffola Rice : To be 25 Cr. Brand Saffola Zest : Foray into 3000 Cr. snack food industry, with health focus Saffola Oats : In a sm all 150 Cr. Market Market
