MANAGEMENT CASE

describes a real-life situation faced, a decision or action taken by an individual manager or by an organization at the strategic, functional or operational level

Sugar Free
Preeta H Vyas

n July 2008, VP Marketing (Consumer Products Division) of Zydus Cadila Ltd. had called a meeting of his team and the advertising agency team handling the Sugar Free campaign to review the Television commercial (TVC) campaign to be aired during August 2008 for the brand Sugar Free. He needed a quick appraisal as the proposed campaign was a major shift from that of the past. (Exhibit 1 gives a summary of TVCs used over the years.) He welcomed everyone and said, Gentlemen! For our recent campaign, we have roped in Bipasha Basu as a celebrity endorser for the brand. (See Exhibit 2 for the story board of TV commercial.) Let us look back and briefly see the journey the brand has taken so far! We need to review TVC in light of the changes in consumer behaviour, competition, and broader marketing environment and also plan for the future course of action.

COMPANY BACKGROUND
The erstwhile Cadila Laboratories was founded in 1952 by Shri Ramanbhai Patel, who had started his career as an academician at the L M College of Pharmacy. He was later joined by his friend, Shri Indravadan Modi. The company evolved over the next four decades and became Indias second largest pharmaceutical company. In 1995, after a vertical split in the operations, Cadila Healthcare came into being under the aegis of the Zydus group. With Rs. 2,500 million turnover, Zydus Cadila had the rights to manufacture and market the Sugar Free brand. The group was spearheaded by Mr. Ramanbhai B Patel as the Chairman and Mr. Pankaj R Patel as the Managing Director. The group is headquartered in Ahmedabad in the state of Gujarat in Western India. Today, Zydus Cadila, an integrated global healthcare company, is an innovative, research-driven pharmaceutical company that discovers, develops, manufactures, and markets a broad range of healthcare products. The groups operations range from API (Active Pharmaceutical Ingredient) to formulations, animal health products, and cosmeceuticals. The group has global operations in four continents spread across USA, Europe, Japan, Brazil, South Africa and 25 other emerging markets.1 The Company has more than 200 products and has a 1,000-member strong team of research professionals. With a specialized field force of over 3,000, it has one of the strongest distribution channels in the industry, reaching out to 1,00,000 chemists and serving over 2,00,000 doctors including physicians, specialists and super-specialists.

KEY WORDS Artificial Sweetener Market Healthcare Over-the-Counter Product Below-the-line Promotion Brand Communication

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In 2006-07, the company posted a turnover of over Rs.19,000 million. Zydus Cadila is supported by a team of over 10,000 people worldwide, comprising professionals, research scientists, medical advisors, and workers and aspires to be a leading global healthcare provider with a robust product pipeline and a research-based pharmaceutical company by 2020.

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.

annoyed and immediately put the Sugar Free pack in his pocket with a stern expression on his face! Back in his office, the executive narrated the incident to his colleagues and they all started thinking about it. Through observations and personal experiences, there was a striking revelation that no diabetic patient wants to accept the fact that he is suffering from the disease nor does he like others to know about it. The company through in-house consumer studies gained an insight into the consumer behaviour. This incident led the marketing executive to position the product not for diabetic patients but for the health-conscious urban dwellers.

Extension of Distribution Network After the revamping of packaging, the company decided to expand its distribution not only through chemists but also by making it available next to sugar in the grocery stores. A special, low-cost display (a plastic strip which can be put on a wall with a Sugar Free pack) an attractive hamper containing a Sugar Free pack (see Exhibit 3) was used in the grocery/kirana stores to attract the attention of the customers. Such an attractive display which did not occupy much space was more than welcomed by grocery stores. A promise to take back the stock of unsold Sugar Free, gave the company an entry into a new unconventional channel with the initial coverage of 50,000 outlets. Simultaneously, it was also available at the chemists as earlier it was marketed as an ethical drug and thereafter as an OTC item. Typically, a chemist with 20,000 SKUs would keep several brands but with less number of multiple units of the same brand whereas a typical grocer with about 6,000 to 8,000 SKUs was willing to keep one fast moving table-top sweetener and was willing to purchase multiple units of the same. As the brand was supported with advertising investment and awareness was already created for a table-top sweetener, retail stores were willing to stock. This strategy was also more in line with the new company philosophy of moving the brand having medicinal touch to the Fast Moving Consumer Goods segment like other health foods, e.g., Bournvita, Horlicks, etc. This allowed the company to extensively distribute and have the first mover advantage as no competitor was able to make inroads into grocery/kirana outlets. This also resulted in reducing the channel power of the chemists. The company had a policy of supplying the stock once in 15 days or once in a month. Initially, they covered the top 200-300 cities, and subsequently 800 towns (population of 50,000+), in the next phase. With all these concerted efforts, the brand attained a turnover of Rs. 79 million in 2000.
SUGAR FREE

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.

Around the same time, one of the senior executives of Zydus Cadila, who was travelling in the North by train, observed his co-passenger using Sugar Free in his tea. He was quite excited to meet his customer; and so, he greeted him, introducing himself and his company. The co-passenger got extremely

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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 health-conscious 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 Opportunity 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.

which being heat stable, allowed culinary applications. Figure 1: Packaging Design of Sugar Free Natura

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,

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,
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thus indirectly promoting Sugar Free along with the new products.

Domestic Artificial Sweetener Market

It was estimated that the market for artificial sweetener was worth Rs. 600 million in the late 90s and was expected to double in mid-2000. It was growing at around 20 per cent per annum.

Competition
There were several Indian and international players in the Indian sweetener market. With about 70 per cent market share, Sugar Free was the leader. Equal, a market challenger, was a brand of Monsanto, a US company. In early 2000, marketing rights changed hands from Glaxo to Heinz, for distribution in India, when Heinz entered India in the Ketchup category. Glaxo, being a pharma company, had a good network of chemists whereas Heinz had no experience in distribution through chemists. With a 15-20 per cent share, Equal was promoted as worlds No. 1 sweetener and was supported by doctors and WHO. Taste was emphasized in the message. Exhibit 9 presents a storyboard of TVC of Equal aired in 2002. The print campaign of Equal was based on testimonials of long-term, satisfied users. Equal claimed, the best ingredients give the clean sugar taste. Both Tarla Dalal and Sanjeev Kapoor, celebrity chefs, produced recipes using Equal. Tarla Dalals book, Diabetic Delight, became popular. Equal was initially priced at Rs. 300 for a 100-tablet pack which later came down to Rs. 125-130 as 100 tablets of Sugar Free (later known as Sugar Free Gold) was made available at Rs. 55. Figure 2 shows the Figure 2: Equal Pack picture of a pack of Equal. Equal and another brand, Sweetex, took the problem solution route, and targeted people who essentially had a problem with sugar. Other brands which were available in the market were Sweetos, SugaRite, Steviocal, Kalorie 1, etc. Sweetos was introduced by Ensigns Healthcare Pvt. Ltd. (a Punebased company). SugaRite

and Steviocal were both made from the stevia plant,1 a native plant of South America. Steviocal was promoted by Rigil, which marketed stevia products in India. As these products were made from natural stevia plants which are heat stable, cook & bake usage was emphasized in its promotional strategy. The company (Rigil) also worked closely with doctors and diabetic forums to promote Steviocal. For people who wanted to have aspartame-free sweetener, there was Steviocal, which was called as the ultimate natural sweetener. Rigil, the company behind promoting and marketing Stevia products in India, stressed on the sheer goodness of the product. As the popularity of sweeteners as a category was growing, Rigil developed a twin-pronged strategy of working with doctors and diabetic forums and as the health consciousness wave was catching up in metros, it promoted the heat-stable stevia products for use in both cooking and baking. Its 100-tablet pack was initially priced at Rs 170, which came down to Rs 85 in the following years. See the pack photo in Figure 3. Mankind Pharma, with its Kalorie 1 brand, was established in 1995. It had its presence in antibiotics, ED, Gastro, and Antifungal Cardio segments. The company forayed into the OTC segment with a range of products from sanitary napkins, artificial sweetener to emergency pills. Kalorie 1 its sugar substitute brand used Wasim Figure 3: Stevia Products

The Stevia plant, a herb of the chrysanthemum family, and a native of South America, has been used as a sweetener for over 300 years in some parts of the globe. Since the 1970s, according to literature, it was used in Japan as the main alternative to sugar (aspartame is banned in the country). It is also supposed to be helpful in controlling the blood sugar levels, and is being touted as a weight-loss aid, because of its zero-calorie properties. SUGAR FREE

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Akram (a Pakistani cricketer, who is diabetic) as the brand ambassador. In 2005, the one-billion pharma major, Alembic, entered the sugar substitute market with the launch of a no-calorie sugar substitute brand - Zero. Alembic became the fourth major player in the Indian market after Sugar Free, Equal, and Sweetex (a UK brand by Health Check Pharmacy). In keeping with its corporate philosophy of providing quality healthcare products, the company made a conscious decision to aggressively target proactive health seekers. It was targeted at middle-aged executives whose lifestyles were intermeshed with professional and personal stress, and who did not find time for personal fitness and health. Hence the brand Zero was promoted as Live Lite. It was priced at Rs. 60 for 90 tablets. Through the research conducted by the company, a new set of emerging consumers, called proactive consumers, were identified in the age group of 30-40. This set of consumers, unlike in earlier times, saw their colleagues and friends dying young due to heart attacks, diabetes and other sugar-related diseases. So, somewhere there was the inertia to keep themselves fit. They were looking at options to reduce their calorie consumption and sugar was the key contributor to calories. This was perceived as an opportunity. Another unique selling proposition was the fact that the company was using Sucralose as an ingredient. Sucralose was highlighted as the key differentiating factor between Zero and the other players. According to the company, this zero-calorie sugar substitute was derived from sugar and tasted just like sugar, providing the much needed sweetness to the millions of health-conscious Indians. Sucralose has been currently approved by 42 countries around the world including the leading regulatory authorities like the US Food & Drug Administration (FDA), the Joint FAO/WHO Expert Committee on Food Additives, and the National Food Authority of Australia among others. Sucralose was a new generation molecule in the sweetener market. Though Aspartam or Saccharine were other molecules which acted as a sweetener, Sucralose was the only one that was made from sugar and tasted like sugar. It was 600 times sweeter than sugar and was stable at higher temperatures while the other two were not. Alembic planned to garner 10 per cent of the market share by the end of 2005. The total market was expected to grow from Rs. 600 million to Rs. 900 million by 2006. The marVIKALPA VOLUME 36 NO 1 JANUARY - MARCH 2011

keting plan focused on consumers belonging to SEC A1 A2 category between the age group of 30- 40. The promotional blitz of Zero was divided into two phases. Phase one, which would last for three and a half months, was involved with the education of consumers about the molecule Sucralose and its superior quality in terms of it being a safer molecule and stable at high temperatures. The second phase, focused on the benefits of zero calorie, was more broad-based; it was used as the real brand building exercise which was scheduled for another 3-4 months. TV was the lead medium. Along with that, a fair mix of print and outdoor was used. Later on, the communication evolved into more lifestyle-based advertising where the proactive health seekers were targeted with the theme of Live Lite. The Creative Director, Leo Burnett, handling Zeros account, in one interview stated, We are very well-differentiated from our competitors both at the product level as well as the mindspace that we occupy. At the product level, we have a unique advantage of having Sucralose as our molecule. All leading brands in the market today are made of Aspartame, the ill effects of which have been proven across the world. (See Appendix 1 for the overview of global artificial sweetener market.) While Aspartame-based sweeteners are low-calorie, Sucralose is a zero-calorie sweetener with numerous other product advantages. It has a natural taste; it is safe for children and can be used for cooking and so on. A lot of emphasis was also given to both below-the-line and shop promotion. For exploiting the Internet, an emerging medium, wherein a dedicated website for the product www.livelite.net was launched. To ensure hits, the site was not confined to Zeros consumption, but was left Figure 4: Brochure of Zero

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open for anyone who wanted to keep fit. The total marketing investment was about Rs. 25-30 million for 2005. The aim was to achieve a total turnover of Rs 60 million for the year 2005. For the launch, 28 metros and mini metros were prioritized in the first phase and then 23 cities were reached (5 lakh + population) in the second phase. Alembic planned to spend close to Rs 4.5 crore by the end of 2006 on marketing and advertising to drive ahead its lifestyle positioning In October 2005, Alembic, the makers of Zero, Indias first zero-calorie sweetener, introduced Zero Cook and Bake, a sucralose-based zero-calorie cooking powder. Zero Cook and Bake was priced at Rs 150 for 140 teaspoons and was expected to drive robust growth in the Rs 60 crore category. In-shop promos as well as organized sampling of Zero Bake and Cook at gyms were planned. For the nine months ending December 31, 2007, Alembic recorded sales of Rs 7,590 million, which was more than the annual sales of Rs 7,210 million in the previous financial year. In 2008-09, the company was confident to touch Rs 10,000 million mark.

and we would be better placed to unlock value through a concerted effort under a single banner, says Pankaj Patel. In 2006-07, the company spent its communication budget to leverage the Bollywood movie Chini Kum. The right to use title and the stills of the actors from the movie were extensively used in hoardings and other media to popularize the brand Sugar Free. In India, this was the first in-film placement wherein a title integration Chini Kum A Sugar Free Romance was also done. The campaign won an award at Goa Festival as the best in-film placement in the category. In 2008, Bipasha Basu was proposed as an endorser for the TV commercial that was to be launched. It was thought that it would help consolidate its fitness proposition and the shape of the pack would appeal to the young fitnessconscious people. In the South, a similar commercial was to be aired with Simran, an actress from the Southern Cinema. The VP Marketing and his team had discussed internally with the Senior Management Team and the Corporate Communication Department before signing a contract with Bipasha Basu as an endorser. In fact close interactions were important for any new launch or event which needed publicity. The Company had the practice of featuring the Company logo for airing TVCs with more than 20 seconds. For such TVCs, prior approval from the Corporate Communication Department was needed. The Corporate Communication Department would issue guidelines which needed to be followed for brand communications. Any PR campaign would be handled by the Corporate Communication Department. The core values of the Company quality, innovation and best experience to stakeholders were deeply ingrained into the organizational culture. The team from the ad agency and VP and his team needed to discuss whether to go ahead with the TVC. What should be the future advertising strategy? Should the company continue an endorser strategy? The brand Sugar Free had followed the transition from a diabetic drug to a tabletop sweetener to a fitness partner. So, how should the brand communication move forward? How can the 360 degree approach be applied to the Sugar Free brand communications? What innovations can be brought in so that each opportunity of brand interaction can be exploited for its advantage?

CONSUMER PRODUCTS BUSINESS: 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. In early 2008, Mr. Pankaj R Patel, the Chairman and Managing Director of the group said, Zydus Wellness aims to promote healthy living by anticipating the emerging and day-to-day needs in dietetic/health foods. 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 low-calorie 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. We believe that there is a tremendous growth potential for this business

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Appendix 1: Global Artificial Sweetener Market2

Published by the Global Industry Analysts, Artificial Sweeteners: A Global Strategic Business Report reveals that a worldwide weight reduction effort is stimulating the $3.5bn global artificial sweeteners market, of which the US and Europe currently make up 65 per cent. For almost a decade, the sugar-substitute market was considered in the thralls of choices between the pink, blue or yellow package. That is, SweetN Low (saccharin; introduced commercially in 1957), Equal (aspartame) or Splenda. Splenda was developed from sucralose by USbased McNeil Nutritionals and UK-based Tate & Lyle (T&L). Sucralose was discovered by T&L researchers in 1976, and is now used in roughly 4,000 products. Sucralose is 600 times sweeter than sugar, compared with saccharins 300 and aspartames 200 times sweetness. Splenda reportedly accounts for about a quarter of T&Ls profits. McNeil Nutritionals is a subsidiary of US-based pharmaceutical and consumer products firm Johnson & Johnson. Aspartame is also the main ingredient in NutraSweet, which was introduced in tabletop, or package form, in 1981, and then moved to carbonated beverages in 1983. Five artificial sweeteners are approved by the FDA. In addition to saccharin, sucralose and aspartame, there is acesulfame potassium, also called Ace-K and marketed as Sunett and Sweet One, and neotame. Patents for products and processes usually control competition for a limited number of years following introduction and approval of new sweeteners, says Elaine Lipson, author of the Packaged Facts report. Market forces include the shifting costs of competing sweeteners, the introduction of new sweeteners, emerging information about health concerns such as diabetes and obesity, and shifting consumer preferences and perceptions of safety. In addition to taste and calorie count, current market drivers, notes Lipson, include ingredient awareness and whether the product can be considered organic. The percentage of US households identifying themselves as users of sugar substitutes/artificial sweeteners has varied little since 2004. In spring 2004, 42.8% of those surveyed identified themselves as users of sugar substitutes/artificial sweeteners. That percentage increased to 46.6% by spring 2007. In 2004, 415 new products were introduced using sucralose in food, beverage or personal care. In early 2007, US-based sweetener company, Merisant, the maker of Equal, started a lawsuit against Splenda (McNeil & T&L) regarding advertising that stated Splenda was made from sugar and natural. Merisant argued that because sucralose is synthetically made by processing sugar with chlorine, Splenda cannot use those terms in its advertising. The case was later settled out of court, with McNeil stating that Splenda is not sugar. The global sweetener market is currently having a compound annual growth rate of 3.7 per cent. Other key factors driving the market include attempts to create foods for diabetic patients, a growing number of people wanting to cut sugar intake, worries regarding dental care, and an increase in production of diet foods and beverages, said Global Industry Analysts. The global market for sucralose artificial sweeteners will allegedly grow the fastest, posting a CAGR of around 10 per cent.

US Retail Sales of Artificial Sweeteners/Sugar Substitutes, 2003-2007, $/M

Category All sugar substitutes Splenda (sucralose) Equal (aspartame) SweetN Low (saccharin) NutraSweet (aspartame) Sweetleaf Stevia (stevia) 2003 316.20 119.4 80.1 56.1 7.6 0.8 2004 353.7 178.1 67.6 53.2 6.6 1.1 2005 357.2 198.6 57.8 50.3 4.9 1.8 2006 366.5 218.6 51 49.5 3.6 2.4 2007 371.4 226.7 46 49 1.5 3.1 Change during 20032007 (%) 17.50 89.80 -42.60 -12.60 -93.40 287.50

Source: Packaged facts/IRI (http://www.foodnavigator.com/Publications/Food-Beverage- Nutrition/FoodNavigator-USA.com/FinancialIndustry/Obesity-concerns-drive-artificial-sweetener-market Accessed in October 2009). VIKALPA VOLUME 36 NO 1 JANUARY - MARCH 2011

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This will be followed by the aspartame-based artificial sweetener market, which is most likely to go beyond the $3bn mark in 2008, expanding on its current 50 per cent hold of the global market. However, a category not faring so well is that of the saccharin artificial sweetener market, which the report claims, could be linked to a study conducted in the 1960s that found that high doses of the ingredient caused bladder cancer in laboratory rats. Nevertheless, over 90 nations, including Canada, approve a restricted use of the sweetener following various studies conducted from 1977 to 1991. However, many nations have banned saccharinbased sweeteners altogether. In the US, the Food and Drug Administration (FDA) continues to approve the use of saccharin, along with four other sweeteners: sucralose, aspartame, acesulfame K, and neotame. It is also reviewing two new low-calorie sweeteners alitame and cyclamate opening up the global market for further competition, price erosion, and distributed customers. In terms of sweetener usage, new-age beverages, dairy

products, salad dressings, and salty snack foods represent the fastest expanding markets for the sugar substitutes industry. Across the globe, there are about 117 major players. The competitive landscape in the global market is given in Table 1. Table1: Competitive Landscape
Country US Japan Europe France Germany UK Italy Spain Rest of Europe Asia Pacific Excluding Japan Latin America Africa
Source: A Global Strategic Business Report, 2008.

No. of Players (including divisions/subsidiaries 41 1 35 3 7 8 1 4 13 53 1 2

Exhibit 1: Summary of Storyboard used Over Years for Sugar Free

Date 2008-08-08 2006-12-05 2006-04-10 2005-11-11 2004-12-30 2003-12-23 Brand Sugar Free Gold Sugar Free Natura Sugar Free Gold Sugar Free Natura Sugar Free Sugar Free Product Group Foods Foods Foods Foods Pharmaceuticals Pharmaceuticals Product Category Artificial Sweetener Sweetener Sweetener Sweetener Sugar Free Sweetener Sugar Free Sweetener Description The ad starts as Bipasha enters an event and is asked about the secret of her fit figure. The film opens on Sanjeev Kapoor,, the master chef, having his bed tea. A woman busy with her household chores asks her maid to go for Tai Chi class... A man going his way suddenly stops on seeing something. A pair of feet rush up a street. Raveena and Harsha make their way through the crowded airport hoping to be on time. Exhibits Ex-2 Ex-5 Ex-6 Ex-7 Ex-8 Ex-4

Source: http://www.afaqs.com/perl/search/search_storyboard.html?brand=Sugar%20Free

1 2 3

http://www.zyduscadila.com/index.html accessed in September,2009. http://www.icis.com/Articles/2009/05/25/9217338/artificial-sweeteners-market-to-change.html Accessed in October 2009. Trends in the US Market for Sugar, Sugar Substitutes and Sweeteners. (Packaged Food study.) October 2008, Accessed in 2009. SUGAR FREE

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Exhibit 2: Story Board of TV Commercial Aired in 2008

Sugar Free Gold Agency: Rediffusion-DYR

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.

Exhibit 3: Pictures of Sugar Free Stand

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Exhibit 4: Storyboard of TV Commercial of Harsha Bhogle and Raveena Tandon (2003)

Sugar Free Agency: Rediffusion | DYR

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.
Source: TV Ad Indx/www.iBankLive.com

MVO: Sugar Free, Less Calories, More Fitness.

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Exhibit 5: Story Board of Sanjeev Kapoor TV Commercial

Sugar Free Natura Agency: Rediffusion | DYR

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...
Source: TV Ad Indx/www.iBankLive.com VIKALPA VOLUME 36 NO 1 JANUARY - MARCH 2011

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

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Exhibit 6: Storyboard of 2006 TV Commercial

Sugar Free Gold Agency: Rediffusion DY&R

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...
Source: TV Ad Indx/www.iBankLive.com

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

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Exhibit- 7: Storyboard of 2005 TV Commercial

Sugar Free Natura Agency: NA

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...
Source: TV Ad Indx/www.iBankLive.com

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

Exhibit 8: Storyboard of TV Commercial (2004)

Sugar Free Agency: NA

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.
Source: TV Ad Indx/www.iBankLive.com

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

...Sugar Free. Freedom from calories. Super: Freedom from calories.

VIKALPA VOLUME 36 NO 1 JANUARY - MARCH 2011

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Exhibit 9: Storyboard of Equal

Agency: NA

A man lays his breakfast on the table and pulls out the chair. But he decides...

...against sitting and walks up to the other end of the table with his toast and takes a bite from it.

He strides down to the opposite end and sips his tea.

Back to the other side, he pops a slice of apple in his mouth.

Source: TV Ad Indx/www.iBankLive.com

Super: Exercise helps control diabetes. Make the time...

...Presented by Equal low calorie sweetener.

Acknowledgment. The author wishes to acknowledge the support extended by Mr. Anand Deo, Sr. V.P. and Mr. Neeraj Hasija, G.M. Marketing, Consumer Product Division, Zydus

Cadila. Comments on the Case by Prof. Abhinandan K. Jain are also gratefully acknowledged.

Preeta Vyas is currently working as a Faculty at the Adani Institute of Infrastructure Management, Ahmedabad and a Visiting Faculty at the Indian Institute of Management (IIM) Ahmedabad.She was a university gold medallist in B.Com (Statistics) and has taken an MBA (specialization in Marketing) and a Ph.d in Business Management from Gujarat University. She has more than three decades of experience in the Marketing Area at IIMA. She has taught courses like Marketing Management, Advertising and Sales Promotion Management at IIMA and various other institutes in India as a Visiting Faculty. She has written a number of cases in Marketing which

are registered with the IIMA case unit. She has participated in several international conferences and presented research papers in the US, Singapore, and IIMA. She has publications in the areas of sales promotion, loyalty programmes, and mobile advertising. Her research interests are in understanding marketing practices and marketing communication practices of the Infrastructure Sector companies and developing marketing case studies . e-mail: preeta@iimahd.ernet.in

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