Brand extension

1. Swapnil Bagul : Brand Extension

2. Marico industry
• Marico Industries, a well-known Indian Fast
Moving Consumer Goods (FMCG) company,
offers unique and ethnic Indian products. Marico
was famous for its „Parachute‟ and „Saffola‟
brands.

3. Introduction
• India is one of the fastest growing economies
in the world. Currently, India is the world's
capital in cardio-vascular diseases & diabetes
and in years to come the prevalence of these
lifestyle disorders is only expected to increase.
• Today, 4 Indians die every minute due to a
heart ailment, Saffola's reasons for existence is
to lower this statistic.
• Saffola offers products which are designed to
enable consumers to manage their heart health
without a change in their lifestyle.

4. • Saffola's products are the first in your line of
defence against heart diseases, making your
transition to a healthier lifestyle a lot easier

5. Saffola Brand Cycle
Saffola Oil
Saffola Salt
Saffola Atta

6. Cont…
Saffola Zest
Saffola Arise
Saffola Oats

7. Saffola Oil
• Saffola Gold contains Rice Bran Oil and
Safflower Oil, which is also known as Kardi
Oil. .
• Safflower Oil has the highest levels of Linoleic
acid, an omega-6-polyunsaturated fatty acid,
which is well known in reducing cholesterol
levels.

8. Saffola Oil as a Brand
• It was one of the first brands in the country to
equate health consciousness with cooking oil.
• In order to stay in tune with the changing
tastes and preferences of the customer, Saffola
also came in four variants:-

9. Line Extension
• Saffola Gold
• New Saffola
• Saffola Tasty blend
• Saffola Active

10. Satisfying health needs
• Saffola satisfying
Health Needs:
• Saffola “The Heart of
a healthy family”
• All Saffola oils come
with‟ 'LoSorb
Technology‟.
• Saffola oils fats' are
'Free of trans‟

11. Pricing strategy of Saffola
• Saffola has different products to suit different
customers.
• The company wanted to leverage the Saffola
brand equity through brand extension.
• Saffola Gold – Rs 105
• Saffola Tasty – Rs 85
• Saffola Active – Rs 87

12. Factors that led to Success
•
•
•
•
Technical Product
International proven formula.
LoSorb technology.
Fortified with natural Vitamin-E.
•
•
Functional Product
Widely used by house-holds, restaurants for daily cooking, salad dressing etc.
•
•
•
Emotional Product:
Here Saffola essentially satisfies the Health Need of consumers.
It focussed on urging people to adopt a healthy lifestyle.

13. Benefits of Saffola as a Brand
• Made a Prominent image for saffola thus
ensuring various brand extensions.
• It avoided the cost of developing the Brand
extensions.
• Created a whole new niche for Saffola Brand.
• Extending the Saffola franchise into new
categories is expected to help it in maintaining
its margins with input and media costs on the
rise.

14. Saffola salt
• In keeping with Saffola's overall brand
identity, Saffola Salt Plus was launched in
1998, as a healthier alternative to regular table
salt.
• Saffola Salt Plus contains lower sodium levels, as
compared to common salts and a greater level of
potassium.
• Low sodium levels assist in managing high blood
pressure.
• The salt is extracted naturally from the
sea, further enriched with iodine and
minerals, and can be used in the same manner as
regular salt.

15. Contd.
• Saffola salt is a propriety food and is made up
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 the risk of CHD and
stroke.

16. Factors contributing to success
• Saffola salt rose as the
result of a continuing
consumer demand for
more "Good for the
Heart" products from
Saffola.
• Many decades of brand
building by the mother
brand "Saffola" and a
genuine and effective low
sodium formulation.

17. Effect on parent brand
• Saffola salt was a huge success and acted like
the appropriate extension needed to further
elevate and sustain the Brand Name and the
distinctive features of the Parent Brand.

18. Saffola Atta
• Saffola Cholesterol Management Atta Mix is a
specialized functional food from Saffola.
Launched in 2005.
• The atta mix is a 100% natural, vegetarian mix
of ingredients like soya, oats, barley, maize
and psyllium husk.

19. Contd…
• The product is a chakki atta fortified with soya
protein and soluble fibers from oats.
• This unique formulation possibly makes the
product the only one which could help in daily
heart care.
• The idea is clearly to strengthen Saffola's
`heart care' equity with the new product.

20. Factors contributing to success
• 100% natural
• Can be consumed by the
whole family.
• Helps cholesterol
management.
• Strong Parent Brand.

21. Effects on Parent Brand
• Atta came after salt and played well in the
“health conscious” sector. It became an instant
hit thereby serving as a further boon to Saffola
as a health care Brand. It had tremendous
impact on saffola and penetrated well into the
market of atta thereby increasing its market
share manifold.

22. Saffola Zest
Launched in 2009 and
taken out of the market
in December 2009.
Complete failure.

23. Contd.
• Zest is a salty baked snack.
• Ad Campiagn:• “Say No To Fried Snacks. Say Yes To Baked
Goodness”.
• It came in different flavors.

24. Positioning gone wrong
• Zest had positioned it as a salty baked snack
which combines health benefits with taste in
competitive markets.
• However, after seeing the feeble consumer
response, Marico decided to pull out the brand
from the market.

25. Reasons for failure
• Brand extension works well when there are
certain core similarities that seamlessly
connect two or more products via the brand
being used for extension.
• Stiff competition.

26. What could have been done?
• There must have been some collective efforts
taken by the company to change the whole
scenario and not just depend upon the common
brand name.

27. Effect on Parent brand
• The salt based snack backfired but didn‟thave
much effect on the parent brand.

28. Saffola Arise
• Saffola Arise was launched in the market in
the month of January in the year 2010
• To launch a product extension like rice was
quiet a difficult task for Saffola as a brand
because rice is not considered as a healthy
product.

29. Positioning
• They positioned Arise
by claiming to have
ingredients that would
not hamper health.
Their tagline is
“ACTIVE RICE”
which helped them with
their positioning.

30. Contd..
• Provides better nutritional goodness.
• Saffola Arise keeps you feeling light after
consumption.
• It has a lower Glycemic Index value.
• Delicious goodness in every grain.
• Soft-textured and wholesome.
• Has a delicate aroma that makes it delicious.

31. Factors contributing to success
• Saffola Arise claimed to be the first ever rice
that keeps your entire family fit and active.
• Arise (moolgiri variety of rice + white rice
with low GI value) will make you healthy by
providing the 20% less calorie than the natural
rice.
• The product was launched at invitational
pricing and has been supported by insightful
advertising.

32. Effect on Parent brand
• Arise as a product extention had very less
effect on the parent brand but Saffola as a
brand did help Arise in its success.

33. Saffola Oats
• Saffola Oats, launched in 2010, is a healthy,
nutritious and active way to start your day.
• Saffola Oats are double-steamed for a uniform
texture and are specially formulated with high
iron and protein content.
• Saffola Oats keep those calories in check by
minimizing hunger pangs and ensuring that
you stay fuller for longer thus helping you
manage your weight.

34. Contd….
•
•
•
•
Keeps you fit and healthy.
Helps you stay fuller for longer.
Provides you with balanced energy.
Contains no Cholesterol.

35. Difference that sets them apart
• The USP of Saffola oats brand is that it has been
made specifically to suit Indian cooking in terms
of taste and texture. The brand is competitively
priced to the existing oat brands in the market.

36. Factors contributing to success
• A daily serving of whole oats rich in soluble
fibre can reduce the need for anti-hypertensive
medication.
• Pertaining to Indian taste, it‟s a hot breakfast
item which is preferred all over the country
and even it is easy to make, non time
consuming and a healthier option then the few
traditional Indian breakfast items like puri baji,
poha and parathas etc.

37. Effect on parent brand
• Oats is the latest product to emerge from
Saffola‟s huge brand umbrella, it has had a
significant impact on saffola and created a
niche for saffola in the breakfast industry.

38. Conclusion
• Over the years, the brand Saffola 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 has become a powerful brand and has
created a strategic position for itself and will
continue to penetrate our life‟s one heart at a
time.

39. Thank You