Sequoia struggles to sell Prataap Snacks

admin

February 29, 2024

29 February 2024, Mumbai

Prince M. Thomas, TheMorningContext

Prataap Snacks should have been an easy sell for Peak XV Partners. The venture capital firm, which till recently was known as Sequoia Capital India, is the largest shareholder in the snack maker with a 47.56% stake. It first invested in Indore-based Prataap Snacks in 2011 and has since seen the company become the sixth largest player in the industry. An exit now would give Peak XV returns that would match some of its best exits, like those from Zomato and Go Fashion.

The reality is, finding a buyer for Prataap Snacks isn’t as easy as selling a packet of “chatakedaar” rings bearing its Yellow Diamond brand. In fact, those packets of rings may be one of the reasons why the company seems to have lost some of its spice with suitors. We will come to that in a bit, but first it’s remarkable how many doors Peak XV has knocked on without any luck…

The company’s choice of products, most of them falling under the category of “western snacks”, was prudent. “When it comes to snacks, the Indian market is very diversified. Each region has its own flavour and there are local nuances,” says Devangshu Dutta, founder of consulting firm Third Eyesight. That means a regional snack, like the gathiya that is popular in Gujarat, will have fewer takers in eastern and southern states. Prataap Snacks’s products had no such problem as chips and rings were not region-specific…

Read more at: https://themorningcontext.com/business/sequoia-struggles-to-sell-prataap-snacks

Fashion 2024 & Beyond: Adapting to Changing Innovation Dynamics (VIDEO)

admin

February 21, 2024

The ability of fashion businesses to endure and thrive in the face of stiff competition and changing market dynamics is all about adapting to innovation, customer-centricity, and strategic planning. The correlation between high performing fashion business and product innovation is undeniable.

This panel discussion brings Design and Business Heads together to brainstorm on how fashion companies can devise strategies to drive innovation to remain competitive, meet evolving consumer expectations, and stay ahead of the race.

Moderator: Devangshu Dutta, Founder & Chief Executive, Third Eyesight

Panelists:

  • Anshu Grover Bhogra, CBO, Forever New
  • Diksha Bhatia, Founder, Gioia Co
  • Mansi Lohia, CEO, Black Watermelon
  • Rohit Aneja, Director- Grapevine Designs, CEO be-blu! Lake Como
  • Sean Ashby, Founder & CEO, Aussiebum
  • Swikruti Pradhan, Founder, Rustic Hue
  • Yogesh Kakar, Chief Product Officer – Tommy Hilfiger & Calvin Klein, PVH Arvind Fashion

Package Deal

admin

February 21, 2024

Sharleen D’Souza, Business Standard

Mumbai, 20 February 2024

Over the past year, Amul has undergone a transformative journey, evolving from a dairy-centric entity to a comprehensive foods company.

Since 2022, PepsiCo India, too, has embarked on extensive launches in the food category.

Not to be left behind, ITC, which has been introducing an average of 100 fastmoving consumer goods (FMCG) products across categories every year, has also launched a number of packaged food items.

The shelves in stores are packed. The options on e-commerce platforms are dizzyingly aplenty. The consumer is spoilt for choice. Which flavour of oats to go for? What packet of chips to pick? Should one reach out for those mouthwatering frozen snacks or think healthy and opt for atta (wheat flour) cookies?

Companies are pulling out all possible goodies in the form of packed food.

It is a strategic shift initiated during the pandemic and which has proven to be a lasting trend. During the pandemic, when other businesses were curtailing expenses, food companies started launching new products as consumers turned to packaged food.

Amul identified a growing preference for purity during the pandemic, and realised that this preference was here to stay. The company aggressively expanded its product range, venturing beyond dairy into items such as organic dal, atta, and basmati rice.

“We noticed that consumers were moving from unbranded to branded products, and were increasingly seeking out those that would boost their immunity,” says Jayen Mehta, managing director, Gujarat
Cooperative Milk Marketing Federation. Even later, as the world moved out of the pandemic, the preference for packaged foods continued.

Convenience foods, which had gained prominence during the pandemic, sustained their popularity. The widespread adoption of modern retail formats, including brick-and-mortar, e-commerce and quick commerce, proved to be further growth enablers for packaged foods. These formats facilitate the display of entire product ranges to a larger consumer base, says brand expert Devangshu Dutta, founder at Third Eyesight, and that helps.

Growing platter

Today, while Amul’s flagship product, packaged milk, is recording double-digit growth, Mehta says the company is also focusing on premiumisation by introducing artisanal cheese and products such as
Amul High Protein Buttermilk, high protein lassi and shakes, and whey protein.

ITC’s diverse launches, meanwhile, include lump-free Aashirvaad Besan, frozen breads, Dark Fantasy centre-fill cookies, and a variety of Master Chef frozen snacks such as paneer pakoda and onion rings, B
Natural fruit juices, Aashirvaad Svasti ghee, and so on.

Last year, as the focus turned to millets, and 2023 was declared International Year of Millets, the Kolkata-headquartered conglomerate saw a healthy business opportunity. It launched ITC Mission Millet with
an array of millet-based products: Sunfeast millet cookies, Aashirvaad millet mixes, YiPPee! millet-based noodles, Candyman Fantastik chocsticks with millets, and more.

“The company will continue with its focus on consumer-centric innovation and product launches across its portfolio,” says Hemant Malik, executive director, ITC. A finger on the consumer’s pulse, product research and development through ITC’s Life Sciences and Technology Centre, and an extensive omnichannel distribution infrastructure are helping the game.

PepsiCo India, too, is in the race to capture a growing share of the packaged food market. How serious the company is about this can be gauged from the fact that since 2022, its launches in the packaged food category have been the highest since it entered the food space in 1995.

It is not even two months into 2024 and PepsiCo has already launched three flavours in oats: masala magic, herby cheese, and mixed berries.

Last year, it had four launches and introduced seven new flavours in Doritos and Kurkure. And in 2022, it launched five new products and eight new flavours in Doritos, Quaker Oats and Lay’s.

In Lay’s, it went premium and launched Lay’s Gourmet.

Sravani Babu, associate director and category lead at Quaker Oats, says while the category is nascent compared to other FMCG segments, it is growing in double digits. So, the three new flavours were a
considered call.

While “basic oats continue to be the leading segment in the category,” she says, with these new flavours, the company is looking at oats as not just something one eats for breakfast. With PepsiCo keen on broadening the oats portfolio, the bowl is expected to see even more variety in the time to come.

Food in a jiffy

Quick commerce, which promises deliveries within 10 minutes, has also accelerated in-home consumption trends, said Saumya Rathor, category lead of potato chips at PepsiCo India, in an interview.

Consumer habits, she said, take decades to evolve, but the pandemic hastened that shift. So, the convenience-driven traction for packaged foods has persisted. E-commerce and quick commerce have only expanded packaged snack penetration across the country.

In response to the growing demand, PepsiCo India has announced its first food manufacturing plant in Nalbari, Assam, with an investment of Rs. 778 crore ($95 million). Scheduled to be operational in 2025,
this expansive facility spans 44.2 acres and underscores the company’s desire to make the most of the rising consumption trends in the foods sector.

Other food companies, including ITC and Amul, have also embraced an assertive stance, launching products strategically.

The trajectory indicates a promising future for India’s packaged food sector. The shelves are set to overflow.

Size of the packaged foods market: In 2022, India’s packaged food market size was $2.7 billion and it is projected to reach $3.4 billion by 2027

(According to Statista)

(Published in Business Standard)

Ram Mandir Inauguration: Brands opt for on-ground presence in Ayodhya

admin

January 20, 2024

20 January 2024, Mumbai

Economic Times

Brand managers love a viral campaign that gives them a louder voice in the company boardroom, and leverage during appraisal conversations. An event the size and scale of the Ram Temple inauguration in Ayodhya, to be held on January 22, could be a means to get all this. Yet, brand strategists observe that major consumer brands are focusing on an on-ground presence with kiosks and hoardings around the venue-a more below-the-line (BTL) marketing approach instead of going for a mass media moment-marketing campaign that could fetch them the much-desired social media chatter and a subsequent virality badge.

Branding consultants believe there could be multiple reasons for this. For starters, January may not be a marketer’s favourite month to spend on a big campaign considering the Diwali season – when brands incur huge ad spends to drive festive consumption – concluded not too long ago.

Further, “there are various ways to stimulate consumption around religious festivals. A temple inauguration, while a good opportunity for TV brands to perhaps push people into watching the event on a big-sized television screen, is difficult for many brands to find a direct connection with,” says Ambi Parameswaran, founder of Mumbai-based brand advisory, Brand-building.com. “How does a clothing brand ask people to buy more clothes when they’re not attending the event?” he asks, adding that brands in the airline and travel aggregator sector are likely to start mainstream advertising once the temple is open to the public.

“Logistics and infrastructure brands involved in the construction of the temple will also most probably start advertising their involvement in the project in some time, to showcase it as a key part of their portfolio,” he notes.

Management consultant Devangshu Dutta says that “brands looking to get a boost from the event will still be treading cautiously,” as it is one of the most sensitive political issues pre-dating even the country’s independence. “We may see vanilla marketing, such as congratulatory or celebratory billboards from brands. But marketers will not want to hit any off note that can get hugely controversial, so they may avoid going for something clever or humorous,” he adds. Dutta is the founder of Delhi-based strategic advisory firm Third Eyesight.

Shagun Ohri, founder of Bengaluru-based branding outfit, The Satori Studio, says a client recently approached them for a major promotional activity ahead of the launch . “It was a founder-led brand keen to do something around the event as it aligns with their belief system. But they dropped the idea eventually as it would not have directly helped the brand’s sales and marketing objectives,” says Ohri.

With Ayodhya getting a full makeover, marketing consultants are keen to see the tourism trends that will emerge soon and the brand spending that will follow. “A new generation of India has gotten into religious tourism. It will be interesting to see whether popular consumer brands that are planning to set up shops around the temple area will be able to draw customers in droves,” says Ohri. “For a religious place to become a tourist spot requires a lot of work. Tirupati has taken years to create that pull.”

(Published in Economic Times)

Brands rewrite their wedding story for the 2023 season

admin

December 12, 2023

Akshit Pushkarna, Afaqs

12 December 2023

The season for Indian weddings, usually spanning October to December, experienced an unusual twist due to Hindu calendar nuances this year, resulting in a shorter duration. The unexpected shift has upended the conventional decrease in marriage ceremonies, resulting in a condensed surge of weddings. 

A report by the Confederation of All India Traders (CAIT) anticipates Rs 4.74 lakh crore in business earnings from the 38 lakh marriages expected this wedding season, marking a historic high. In comparison, the corresponding period last year witnessed around 32 lakh weddings with total expenses amounting to Rs 3.75 lakh crore.

This presents brands involved in the wedding business with an ample opportunity to capitalise and drive forth their business revenues for the year to come. Three key brands associated with wedding business are steering their strategies to align with the evolving preferences of Indian consumers in the lucrative wedding market.

A more region-specific focus for Shaadi.com’s marketing communication

In a conversation with afaqs!, Adhish Zaveri, VP-marketing, Shaadi.com, a prominent online matrimonial and matchmaking service, speaks about how digital media is more relevant for brand building for wedding-oriented businesses now, eclipsing the relevance of traditional TV and out-of-home advertising. He sees mass media serving only reminders to prompt registrations, while the primary focus shifts towards digital platforms.

This change involves a robust regional focus within our marketing playbook, recognising the dynamic shifts in matrimonial behavior across diverse geographies

Adhish Zaveri, VP-marketing, Shaadi.com

“This season, we have incorporated a paradigm shift in our marketing strategy, driven not only by the upswing in weddings but also by observing how Indians approach finding life partners, with nuances varying across regions. This change involves a robust regional focus within our marketing playbook, recognising the dynamic shifts in matrimonial behaviour across diverse geographies,” he says.

The campaign is driven by the company’s commitment to assure individuals of finding a match within a specified timeframe. The pledge to successfully matchmake within 30 days, with a refund guarantee, serves as the crux of their messaging this season. “Tailoring our approach to each market, we’ve executed this promise uniquely.”

This approach sees the company partner with people of influence across markets to drive better visibility. For the Hindi market, they’ve forged a strategic partnership with Jasleen Royal, the acclaimed singer behind popular wedding songs like Din Shagna Da and Hiriye. Leveraging her association, Zaveri says they have orchestrated a robust social media engagement strategy.

“In the Tamil market, we’ve employed celebrities who recently tied the knot as our ‘matchmakers.’ Adapting a viral reel from this region, featuring the celebrity couple, became a cornerstone of our campaign. While regional focus has always been part of our strategy, this time we’ve approached it through a celebrity lens, creating bespoke strategies for each South Indian market. Although distinct, each strategy is unified by a celebrity-centric approach. From featuring Supriya and Sachin Pilgaonkar for Marathi audiences to enlisting Jasleen Royal for the North, and partnering with Ashok Selvan and Keerthi Pandian for the South – we’ve delved deeper into regional dynamics,” he adds.

Zaveri believes the success of the approach is evident, particularly in the South, where the company’s market presence has increased dramatically post-campaign, providing them an opportunity to further invest in the region. 

A focus on the Wedding planning business for Vikaas Gutgutia’s Ferns N Petals

In the backdrop of a season that signals prosperity, Vikaas Gutgutia, founder and managing director, Ferns N Petals (FnP),  reflects on the trajectory of its business, navigating through the challenges of a pandemic-induced wedding lull.

He says FnP strategically sustained its business in 2022, aligning with the resumption of the wedding business. With the focus shifting to a year poised for business takeoff, the company plans on exploring the wedding planning business with their new business line Shaadi Central. 

“With a legacy in the wedding industry, FnP has historically undertaken various wedding-related tasks, albeit not comprehensively under one roof or in an organised manner. This year marks a strategic shift as the company introduced ‘Shaadi Central,’ a luxury wedding company offering a one-stop solution for all wedding needs.”

“This holistic approach aims to streamline and elevate the wedding planning experience, allowing partners and their families to focus on the approaching wedding date with ease. The innovation and consolidation under ‘Shaadi Central’ have sparked notable interest and engagement in the new business venture. Having weathered a less-than-ideal summer season and traditionally subdued winter numbers, we anticipate a robust revenue surge, making the current season particularly promising,” he asserts.”

The business setup was sparked by Gutgutia’s assertion that, with the evolving landscape of wedding planning, which has made destination weddings and grandeur now necessary for some, the role of wedding planners has become significantly prominent. The launch’s alignment with the business boom anticipated with the wedding season of 2023, Gutgutia underscores the importance of timing in business.

The innovation and consolidation under ‘Shaadi Central’ have sparked notable interest and engagement in the new business venture.

Vikaas Gutgutia, founder and managing director, Ferns N Petals (FnP)

Delving into the marketing approach for this new business vertical, he explains, “The momentum generated by word of mouth for the growth of its wedding planning vertical. Each wedding becomes a nexus of potential customers, and social media plays a pivotal role in amplifying references. With clear and specific messaging in the realm of social media, we have successfully driven business, recognising the platform as the primary point of reference in shaping preferences.”

Looking ahead, FnP anticipates a substantial increase in business revenue across all its verticals. The wedding services vertical, in particular, is expected to bring in significant growth in revenue for the company. The belief stems from the observation that the wedding planning sector remains largely unorganised, and he believes that FnP stands out as a formidable player in terms of size and brand image. As the business charts its course forward, the wedding services vertical emerges as a key focus, poised for substantial expansion.

Senco Gold & Diamonds leveraging virtual try-ons for delivering business growth

Joita Sen, director- marketing and design, Senco Gold & Diamonds, says that the company, with a legacy of 80 years, is uniquely equipped to understand the evolving landscape of bridal desires.

Sen elaborates that the company started the year fresh after initiating their Rajwada Collection, a campaign with which the brand aims to weave together traditional designs infused with modern touches and patterns in their offerings. These offerings, thus, can resonate with the essence of the contemporary woman.

The move also sees the brand shifting its focus towards diverse designs, moving away from region-specific choices. Herein lies a unique selling proposition (USP) for the brand—fulfilling a diverse range of needs while ensuring accessibility across various price points. From high-end designs to more budget-friendly options, the brand aims to leave every customer content upon leaving the store.

“The evolution of groom preferences and competitive pricing have further shaped our approach. A significant aspect of our marketing strategy here revolves around social media, leveraging its targeted reach compared to traditional approaches like billboards and footfall. 50 percent of the marketing budget is allocated to digital channels, where advancements have allowed for more precise consumer outreach.”

50 percent of the marketing budget is allocated to digital channels, where advancements have allowed for more precise consumer outreach.

Joita Sen, director- marketing and design, Senco Gold & Diamonds

However, the digital realm poses a challenge in providing a comprehensive array of options compared to the immersive experience offered in showrooms. To address this, Sen acknowledges the importance of virtual try-ons.

“While currently available for select products,  we are actively working on expanding our offerings in virtual try-ons. This approach proves instrumental in effectively communicating the design, look, and feel of the jewellery to consumers, bridging the gap between the digital and physical shopping experiences.

Importance of strategic visibility and multi-modal presence for short-term success

According to Devangshu Dutta, CEO, Third Eyesight, the ongoing mega-season of weddings presents a favourable outlook for formalwear and traditional wear brands across various categories. This surge in weddings is not limited to the upper-income segment but extends across the income spectrum, reaching the middle class and towns of all sizes.

Thus, to effectively capitalise on the wedding season, brands must establish a strong position in customers’ minds well in advance, he believes.

“Products and brands associated with brides, grooms, and close family members, as well as those intended for gifting to the extended family, are inherently perceived as “premium” within their respective consumer segments. This holds true regardless of the targeted population segment. Success as a “wedding brand” requires a long-term perspective, with continuous investments in product development, service enhancement, and marketing expenditure to ensure that the brand stands out prominently amid competition,” he says.

”In the current market landscape, achieving visibility demands a multi-modal approach, encompassing both offline and traditional channels, along with tactical online advertising.”

Devangshu Dutta, CEO, Third Eyesight

In the short term, however, he opines that the visibility and availability of products just before the wedding season play a crucial role in influencing specific performance during that period.

”In the current market landscape, achieving visibility demands a multi-modal approach, encompassing both offline and traditional channels, along with tactical online advertising.”

(Published in Afaqs)