Harvard Case - Healthy Snacking? Consumer Mindscape, Clutter of Brands, and an Ethnic Snack - Launching a New Brand in the Indian Context
"Healthy Snacking? Consumer Mindscape, Clutter of Brands, and an Ethnic Snack - Launching a New Brand in the Indian Context" Harvard business case study is written by S. Ramesh Kumar, Vishal Malavath, Sanju Priya V. It deals with the challenges in the field of Marketing. The case study is 15 page(s) long and it was first published on : Sep 15, 2020
At Fern Fort University, we recommend a multi-pronged marketing strategy for launching the new ethnic snack brand in the Indian market. This strategy will leverage consumer insights, digital marketing, and strategic partnerships to establish a strong brand presence and drive sustainable growth.
2. Background
The case study focuses on the launch of a new ethnic snack brand in the highly competitive Indian market. The brand faces challenges like consumer preference for established brands, a cluttered market landscape, and the need to cater to diverse consumer segments. The case highlights the importance of understanding consumer behavior, developing a compelling brand identity, and employing effective marketing strategies to achieve success.
The main protagonists are the founders of the new snack brand, who are looking for guidance on developing a successful launch strategy.
3. Analysis of the Case Study
We will analyze the case using a combination of frameworks, including:
1. Market Segmentation, Targeting, and Positioning (STP):
- Segmentation: The Indian snack market is diverse, with segments based on age, income, lifestyle, and regional preferences. The brand should identify specific target segments based on their snacking habits, health consciousness, and affinity for ethnic flavors.
- Targeting: The brand should focus on specific target segments with a high potential for growth and brand loyalty. This could include young adults, health-conscious consumers, and those seeking unique and authentic snack experiences.
- Positioning: The brand needs to clearly differentiate itself from competitors by highlighting its unique selling proposition (USP). This could be based on the use of natural ingredients, ethnic authenticity, health benefits, or a specific flavor profile.
2. Consumer Behavior Analysis:
- Understanding Consumer Needs: The brand should conduct thorough market research to understand consumer preferences, motivations, and purchase behavior. This includes understanding the role of health, convenience, taste, and affordability in snacking decisions.
- Identifying Key Drivers: The brand needs to identify the key drivers of consumer choice and leverage them in its marketing strategy. This could include factors like brand trust, product quality, price, and availability.
- Analyzing Competition: The brand should analyze the strengths and weaknesses of its competitors, including their pricing, distribution, and marketing strategies. This will help identify opportunities for differentiation and competitive advantage.
3. SWOT Analysis:
- Strengths: The brand's strengths could include its unique ethnic flavor profile, use of natural ingredients, and potential for innovation.
- Weaknesses: The brand's weaknesses could include limited brand awareness, lack of established distribution channels, and potential challenges in scaling production.
- Opportunities: The brand has opportunities to tap into the growing health-conscious snacking market, leverage digital marketing platforms, and form strategic partnerships.
- Threats: The brand faces threats from established competitors, potential changes in consumer preferences, and economic fluctuations.
4. Marketing Mix (4Ps):
- Product: The brand should focus on product quality, innovation, and differentiation. This includes offering a variety of flavors, formats, and packaging options to cater to diverse consumer needs.
- Price: The brand needs to develop a competitive pricing strategy that balances affordability with profitability. It can consider premium pricing for unique flavors and ingredients, while offering value-for-money options to attract price-sensitive consumers.
- Place: The brand should prioritize distribution channels that reach its target market effectively. This could include online platforms, supermarkets, convenience stores, and partnerships with food retailers.
- Promotion: The brand should develop a comprehensive marketing communication strategy that includes digital marketing, social media campaigns, influencer marketing, and traditional advertising.
4. Recommendations
1. Target Market Selection:
- Focus on Health-Conscious Consumers: Target young adults and professionals who are increasingly health-conscious and seeking healthier snacking options. This segment is highly active on social media and open to trying new products.
- Leverage Regional Preferences: Target specific regions with a strong affinity for the brand's ethnic flavors. This could involve tailoring marketing messages and product offerings to regional tastes and preferences.
2. Brand Positioning:
- Position as a Healthy and Authentic Ethnic Snack: Highlight the use of natural ingredients, traditional recipes, and the brand's commitment to quality and taste.
- Emphasize the Unique Flavor Profile: Focus on the distinctive and appealing flavor profile of the ethnic snack, differentiating it from generic or mass-produced snacks.
3. Marketing Strategy:
- Digital Marketing: Utilize social media platforms like Instagram, Facebook, and YouTube to reach target audiences, build brand awareness, and engage with consumers. Create compelling content showcasing the product's benefits, flavors, and cultural significance.
- Influencer Marketing: Partner with relevant food bloggers, health influencers, and social media personalities to promote the brand and reach a wider audience.
- Content Marketing: Develop engaging blog posts, articles, and videos that educate consumers about the health benefits, cultural origins, and unique flavors of the ethnic snack.
- Strategic Partnerships: Collaborate with food retailers, health and wellness organizations, and cultural institutions to expand reach, increase brand visibility, and create new opportunities for product placement.
4. Product Development:
- Focus on Innovation: Continuously develop new flavors, formats, and packaging options to keep the product line fresh and appealing to consumers.
- Consider Healthier Options: Explore opportunities to offer healthier versions of the ethnic snack, such as reduced-sugar or gluten-free options.
5. Pricing Strategy:
- Premium Pricing for Unique Flavors: Position premium flavors and ingredients at a higher price point to reflect their quality and exclusivity.
- Value-for-Money Options: Offer more affordable options to attract price-sensitive consumers and expand market reach.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of the case study and consider the following factors:
- Core Competencies and Consistency with Mission: The recommendations align with the brand's focus on providing healthy and authentic ethnic snacks, leveraging its unique flavor profile and commitment to quality.
- External Customers and Internal Clients: The recommendations address the needs and preferences of target consumers, while also considering the brand's internal resources and capabilities.
- Competitors: The recommendations are designed to differentiate the brand from competitors, highlighting its unique selling proposition and leveraging digital marketing strategies to gain a competitive edge.
- Attractiveness ' Quantitative Measures: The recommendations are expected to generate positive returns on investment (ROI) through increased brand awareness, market share, and profitability.
6. Conclusion
By implementing a multi-pronged marketing strategy that leverages consumer insights, digital marketing, and strategic partnerships, the new ethnic snack brand can establish a strong presence in the Indian market and achieve sustainable growth. The brand's focus on health, authenticity, and innovation will resonate with consumers seeking unique and satisfying snacking experiences.
7. Discussion
Other Alternatives:
- Traditional Advertising: While digital marketing is recommended as the primary strategy, traditional advertising channels like television and print media could be explored to reach a wider audience.
- Direct Marketing: Direct mail campaigns and targeted email marketing can be used to reach specific consumer segments and promote special offers or new product launches.
Risks and Key Assumptions:
- Market Competition: The Indian snack market is highly competitive, and the brand faces challenges from established players with strong brand recognition and distribution networks.
- Consumer Preferences: Consumer preferences are constantly evolving, and the brand needs to adapt its product offerings and marketing strategies to stay relevant.
- Economic Fluctuations: Economic downturns can impact consumer spending patterns, potentially affecting demand for the brand's products.
8. Next Steps
Timeline with Key Milestones:
- Month 1-3: Conduct market research, develop brand positioning, and finalize product offerings.
- Month 3-6: Launch digital marketing campaign, build social media presence, and establish partnerships with food retailers.
- Month 6-9: Monitor campaign performance, gather consumer feedback, and adjust marketing strategies based on results.
- Month 9-12: Expand distribution channels, introduce new flavors and formats, and explore opportunities for international expansion.
By following these recommendations and implementing a well-defined strategy, the new ethnic snack brand can successfully navigate the competitive Indian market and establish itself as a leading player in the healthy snacking segment.
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Case Description
Prashant Parameswaran was confounded by the behavior of consumers. On the one hand, there was a growing awareness on health foods and on the other hand, the diffusion of healthy snacks was not as fast as the indulgent snacks. The consumer mindscape, with respect to healthy snacking was cluttered with healthy cookies, bars, fruit juices, low-diet offerings, baked savories, milk additives and yoghurts (to name a few categories). Parameswaran had also found, that several of the healthy snacks had a sizable percentage of sugar and saturated fat that may make the claims on health benefits questionable. In addition to the claimed health benefits, there was glitz and glamor associated with the ads of most of these brands that featured attractive ultra-thin models, celebrities, and models. Such models used by the brand, portrayed unattainable fitness and looks that were stunningly aspirational in nature. Were consumers really interested in healthy snacking or was it just a passing fad? How were these offerings associated with healthy snacking judged by consumers? Do glamorous ads change the focus of the consumers, who may otherwise be inclined to prefer health to indulgence, when it comes to snacking? Were consumers aware of the labeling used by brands? Were there differences between consumer segments that were deeply interested, in healthy snacking and other segments that were interested in health but were unable to change their behavior? How do consumers consider different unrelated offerings that promise health? How should a new offering be launched? The case is about the usage of attitudinal aspects to understand the attitude of consumers towards the snacking domain and their impact on branding in the Indian context.
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