Successful Product: Saffola Masala Oats

Saffola is the star brand by Marico which has helped oats and oil products in India to escape
from commodity trap. Saffola entered edible oil market in 1960s when the incumbents
focus was food and taste. There was little differentiation based on brands when Saffola hit
the markets. Slowly and steadily Saffola Oil had positioned itself as a healthy brand.

Saffola was already tasting the benefits of targeting healthy hearts of Indian middle class. By
the end of 2000s Indian market saw advent of new product called oats by Quaker oats. It
was surely positioned as something which is good for heart but failed to arouse the taste
buds of middle class. Indians had strong preconceived notion that taste, and health does not
lie in the same book. Saffola identified the common flavor which might stir the taste buds of
the entire nation. They found out that Indians have liking for something spicy and launched
Saffola flavored oats (Masala Oats). Saffola masala oats became the world’s first savory oats
bringing together two exclusive worlds of health and taste. A whole range of flavors were
launched from Chinese flavored to Pav Bhaji masala oats to cater to taste pallets of different
parts of India. It took them 4 years become No. 1 in this niche breakfast/snacks category.
Marico’s foods franchise posted the growth of 30% value in Q1FY21, led by 41% in Saffola
oats. As of Jun 2020, Saffola’s market share in flavored oats segments stands at 88%.

Market Share

0.88

Total

0.18

2013 2020

Fig. Saffola to cater to diverse taste buds launched number of flavors of Masala Oats
Fig 2. Snacks in healthy with good taste was yet to be explored and well executed. This was
done by Saffola Masala Oats

Failed Product: Monaco Smart Chips

Since, Parle launched Parle-G in 1939, biscuits has become its identity. Venturing into snack
category means extending Parle’s image beyond its identity. Parle launched Monaco Smart
Chips which was supposed to be healthy snack to cash on the savory taste of Monaco
Namkeen biscuits.

Segmentation Targeting and Positioning

Segment Health-conscious people

Target Group All age groups, Middle class people
Positioning Wafers for people who want to be healthy

It was positioned as smart chips as in healthy snack alternatives and its USP was that it was
baked instead of being fried. It was launched in four flavors. The ad featured Aamir Khan
where he communicated about the benefits of baked chips. Given the strong distribution
structure of Parle this could have been a master product had it aligned with the taste of
Indian mass.

Reasons to fail:
  In India healthy snack is irony. Anything packaged is not seen as healthy product
even if it is bread. Health-conscious people don’t do for either biscuit or wafer. It is
difficult to position on large scale, thus catering to niche market making it
commercially infeasible.
 For people who eat chips in developing countries they eat in small quantities, the
preference of taste supersedes health consciousness. The product segment should
have several flavors as Saffola Masala Oats.
 Lays, Uncle Chips and Kurkure have brand recall when it comes to chips.
 Even though consumers are shifting towards healthier products, acceptance of such
products in the consumer consumption basket takes relatively longer time. Monaco
Smart Chips was taken off the shelf almost in a year.

Fig 3. Applying the concept of Kano Model on both the products Saffola added the
excitement feature in the healthy snack i.e taste and executed it well. Monaco Chips added
health aspect in chips, failed to achieve this excitement feature basic feature i.e chips
(=taste) suffered.