Thanks to Marico, Saffola for educating consumers on oils: BN Group CMO

For a long time, brands in the edible oil category have focused on highlighting specific nutrients such as saturated fat, cholesterol, and sodium. Even in ads, the typical portrayal often revolves around a kitchen scene where a mother is frying puris and explaining why a particular oil is the best choice for cooking.

In contrast, BN Group's Nutrica takes a different approach with its April 2024 campaign, launching two humorous ads under the hashtag #JaisaGharWaisaCookingOil. 

Conceptualised and developed by the GOZOOP Group, the campaign includes six television commercials that highlight the importance of using different oils to suit the needs of diverse households.

In April 2024, BN Group expanded into the wellness and fitness oil category, with a goal to capture a 10% market share within the next three years.

Founded in 1910 by Shri Bateshwar Nath, the company began selling edible oil in 2011, initially operating in the B2B space. Over the past two years, the Delhi-headquartered company made its foray into the consumer edible oil market.

While the business was valued at around Rs 4,000 crore, it had been operating in the low-margin space (below 2%), prompting the decision to enter the consumer segment in order to pursue higher growth opportunities.

Currently, Nutrica offers a range of edible oils but plans to expand into categories such as spreads, honey, nutraceuticals, and more over the next three years.

In 2013, the brand also launched Simply Fresh, targeting the mass market with single-seed oils like sunflower, soybean, and palm. It plans to include gourmet oils as well, including groundnut oil. While Simply Fresh aims to cater to the economy segment, Nutrica competes directly with established premium brands like Saffola and Fortune.

Nutrica is positioned as a niche brand focused on metro cities, whereas Simply Fresh is targeting a broader audience with its single-seed oils.

Kiran Giradkar, CMO of BN Group, explains that single-seed oils like soybean oil have gained significant traction in the northern belt, while groundnut and sunflower oils are more popular in the western belt. Despite the variety of oils available in the market, the question remains whether the end consumer is truly aware of these differences.

Does the brand face challenges in educating consumers about the variety of oils?

Giradkar acknowledges the role of competition in this process, saying, "We have to thank our competitors. Marico has been a leader in the edible oil category for over 30 years, and Saffola has built its brand around blended oils like sunflower and soybean. Post-COVID, immunity became a key focus, and while Saffola focused on heart health, they never launched a product specifically addressing immunity."

He goes on to highlight the brand's range of offerings, including Nutrica Pro Immunity Oil, Nutrica Pro Energy Oil, and Nutrica Pro Fitness Oil, which cater to specific health concerns.

Additionally, Nutrica has introduced a curated oil for kids, Nutrica Pro Energy, emphasising the need for essential fats for children's growth and energy—an area that, according to Giradkar, has not yet been addressed by other brands.

Revenue 

Nutrica’s e-commerce revenue currently accounts for less than 2%, with modern trade contributing 50%, while the remaining sales come from type-A and type-B outlets. On the other hand, Simply Fresh is primarily sold in tier-2 towns and through B2B channels, with retail sales from B2C making up 60% and 40% coming from B2B.

When discussing the growth of quick commerce, Giradkar points out that consumers usually purchase oil in bulk, such as five-litre cans or packs of six one-litre pouches, as these purchases are typically planned for the month ahead rather than being spontaneous. He also notes a key challenge for quick commerce: the storage of oil in dark stores.

Marketing 

For Nutrica, a significant portion of the marketing budget is dedicated to digital and influencer campaigns targeting a niche audience. The brand has strategically placed its advertisements on digital screens in gyms, schools, hospitals, and clinics, positioning Nutrica as a lifestyle fitness and wellness brand.

 In contrast, Simply Fresh invests heavily in below-the-line (BTL) activities, such as posters, activations, and dealer boards, particularly in the northern part of India. Giradkar explains that Simply Fresh doesn't use television due to geographical limitations, and its presence on digital platforms is minimal. Influencer marketing is primarily used for amplification rather than content creation.

Giradkar also highlighted that, in the highly saturated edible oil category, standing out can be challenging. However, the brand remains committed to finding innovative ways to craft a story that resonates with consumers.

Nutrica is a relatively new brand; it is allocating more of its marketing budget to this segment. For IPL 2025, the brand, which is available in only six metro cities, will not advertise on television. Instead, Nutrica will focus on digital platforms, leveraging connected television for targeted campaigns.