Brand Case Study #18
The
value-added dairy segment is estimated to be around USD 1 billion and is
expected to double in the next four years. Hence it’s not amusing to find
companies offering differentiated products to stay ahead of the game.
Beverages
and snacks major PepsiCo India, has added a new product to its ever expanding
nutrition portfolio in the form of Quaker Oats+Milk which is co-created with
former cricketer Sachin Tendulkar. The product is based on the company’s oats
technology SoluOats which is able to capture the goodness of oats in a soluble format.
Primarily
targeted at the youth, Quaker Oats+Milk will be available in two flavor -
Almond and Mango. Priced at Rs. 30, the Quaker Oats+Milk is at par with other flavored
milk drinks.
Quaker
Oats + Milk is said to be designed for the convenience and as an on-the-go
solution to enhance morning nutrition for young Indians leading a rushed
lifestyle. The drink provides 10 per cent of the beverage recommended daily fiber
requirement and 15 per cent of the recommended daily calcium requirement
according to the Indian Council of Medical Research. It’s meant to give your mornings
a head-start, with fiber, calcium, oats and milk.
PepsiCo
is entering the dairy market at a time when domestic companies with big retail
networks like ITC Ltd and Tata Global Beverages Ltd are also readying to tap
the value-added dairy segment. Biscuit maker Britannia Industries Ltd has
ramped up its dairy investments in the past couple of years.
In
the past, foreign multinationals have found the Indian dairy market, dominated
by cooperatives like the Gujarat Cooperative Milk Marketing Federation Ltd that
owns the Amul brand, hard to crack. Europe’s largest yoghurt maker Danone SA,
which has made several attempts to penetrate India’s dairy segment, is yet to
make a mark in the estimated Rs. 80,000-90,000 crore organized dairy market in
the country. Same is the case with Swiss packaged food company Nestle SA which too
took its own sweet time to establish itself after starting to sell milk in
India in 1961.
Entering
the fast-growing value added dairy segment in India with a truly differentiated
offering from Quaker is a part of PepsiCo India’s growth strategy for this
market. And co-creating the brand with Sachin Tendulkar gives a lot of brand
pull and deeper insights. PepsiCo’s retail and distribution network is strong
with about 2.5 million outlets and hence they can leverage on it to the maximum
to get the new product to its TA.
The
company is expected to focus primarily on the cities in south India where
Quaker has the highest brand equity.
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