Marico accelerates rate of launches

A slowdown in the economy notwithstanding, Marico is going ahead with new product launches. Earlier this year, it had launched its baked snack Saffola Zest.

And now the company is launching Saffola Rice, a premium quality of rice that will help consumers manage and control their weight.

Company officials pointed out how the 40-year-old brand Saffola has been transformed into a lifestyle brand as opposed to simply an edible oil brand.

“With the diversification into functional foods (atta), salt, snacks and now rice, we are seeking to provide options to eat healthy and lead a better life,” said Sameer Satpathy, head of marketing, Marico.

Satpathy is hopeful of Saffola core users taking to the brand extensions, especially with the main brand enjoying substantial equity for its perceived health benefits, particularly on the good heart and wellness platform.

“In the next five years, we are looking at 20-30 per cent of the core Saffola consumers buying our other products,” said Satpathy. The brand is also increasing advertising and marketing spends by 20 per cent over the last year.

Saffola Rice will be available in two packs of 1 kilogram (kg) priced at Rs 59 and a 2.5-kg pack for Rs 140. It is currently planned to be rolled out in Andhra Pradesh and Maharashtra.

This is close on the heels of another product launched earlier this year – a snack variant Saffola Zest, a baked alternative to fried snacks. A 20-gram pack of Saffola Zest is priced at about Rs 10, whereas other branded snacks are available in packs of 30-35 gm at Rs 10.

However, due to the economic slowdown, sales volumes for Saffola Oil – which commands a 20-50 per cent premium above the edible oils category – have dipped from 9 per cent in the quarter-ending September 2008 to 3 per cent for the quarter-ending December 2008.

However, Satpathy sees the downturn as a problem that the company needs to solve to jump-start the brand.

“It is easy to get consumers to downtrade. But, as marketers, our main challenge is to make people buy better, or get a larger wallet spend from existing consumers,” says Satpathy.