Advertisment

Tata Soulfull to invest 20-22% revenue on new millet marketing push

CMO Rasika Prashant says the brand spends over one-fifth of its revenue on marketing new products, with an emphasis on retail visibility, digital campaigns, and influencer marketing.

author-image
Ruchika Jha
New Update
Rasika Prashant

In India, breakfast cereals are increasingly finding their way onto the breakfast table, responding to a rising demand for both convenience and nutrition. Even as traditional dishes such as Upma, Poha, Dosa, and Idli still reign supreme across Indian households, breakfast cereals are gaining popularity, particularly in urban areas where evolving lifestyles and higher disposable incomes are leading consumers to prefer quick, ready-to-eat food choices.

Advertisment

As per Mordor Intelligence, a market research firm, the Indian breakfast cereals market is expected to achieve a compound annual growth rate (CAGR) of 8.2% over the next five years, fuelled by evolving consumption patterns and a growing urban middle class.

Kellogg’s leads this segment, commanding around 70% of the cornflakes market share. Other notable brands include Nestlé (Nesfit and Corn Flakes), PepsiCo (Quaker), Bagrry’s, and Marico (Saffola, specifically for oats and muesli), all working to secure a portion of this lucrative market.

A trend is emerging as consumer preferences shift towards healthier and more diverse breakfast options.

Millet is attracting considerable interest in India because of its nutritional benefits and ability to thrive in diverse environmental conditions. Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman have emphasised the importance of millets in the strategies for national nutrition and food security.

In the Union Budget of 2023, Sitharaman announced India’s ambition to establish itself as a global hub for millets, coinciding with 2023 being observed as the International Year of Millets. This initiative, supported by the government, seeks to enhance both the production and consumption of millet, reinforcing India’s position as the leading millet producer globally and the second-largest exporter.

With this in consideration, Tata Soulfull, a brand under Tata Consumer Products and a significant contender in the Indian breakfast cereals market, has launched its new product, Tata Soulfull Corn Flakes+. With 16% Jowar (Sorghum), Corn Flakes+ boosts fibre content and is available in two flavours—Original and Honey Almond.

Tata Soulfull context box 2

The launch is in alignment with this broader millet movement, reflecting a shift across the industry towards the promotion of indigenous grains. Rasika Prashant, CMO, Tata Soulfull, emphasises that the brand is dedicated to catering ‘better-for-you’ products that integrate millets, ensuring that health is both accessible and affordable.

“Our approach is to launch products that are clearly differentiated and address consumer pain points. Corn Flakes+ embodies this principle, with a unique blend of corn and millet, which stays crunchy for longer even in hot milk—a common practice of eating cornflakes in Indian households. This solves the issue of typical cornflakes becoming soggy, ensuring consumers enjoy a crunchy texture throughout their meal,” she explains.

The new Corn Flakes+ product is expected to contribute around 10% to Tata Soulfull's overall revenue initially. Prashant says that this will help the brand in drawing new consumers who are entering the breakfast cereal market and enhance its reach within households, facilitating cross-promotion of other Tata Soulfull products.

She further states that Tata Soulfull dedicates around 20-22% of its revenue to marketing for each newly-launched product to maintain bottom-line efficiency. “For Corn Flakes+, our focus is on retail visibility, digital campaigns, sampling activities, and influencer-driven social media content,” notes Prashant.

Strategy for distribution and pricing

Tata Soulfull employs a pricing and SKU strategy tailored to specific channels to cater to various shopping behaviours. “Our pricing and SKU strategies go hand-in-hand and are channel-specific rather than geography-specific,” Prashant explains.

For example, larger packs are aimed at modern trade and e-commerce platforms, where shoppers prefer bulk purchases, whereas quick-commerce platforms stock medium-sized packs to accommodate impulse buying habits.

“Additionally, general trade (GT) channels serve smaller grocery stores with entry-level packs priced reasonably at Rs 10. In standalone modern trade outlets, Tata Soulfull offers packs starting at Rs 99, ensuring accessibility across a range of consumer needs,” she adds.

Tata Soulfull is also ramping up its digital engagement strategy by integrating Connected TV (CTV) into its broader digital marketing efforts, alongside its distribution strategy.

Prashant says that the brand strategically integrates CTV into its campaigns, complementing its broader digital marketing efforts. “Although CTV offers a broader reach and higher cost per mille (CPM), it proves to be advantageous for targeting particular geographies and demographics. We customise content for CTV, guaranteeing a strong campaign reach.”

With the winter season approaching, Tata Soulfull has several new initiatives lined up, including a post-Diwali launch of a maida-free rusk. “We have an exciting launch post-Diwali—a rusk made without maida, the first of its kind. These rusks are region-specific and best paired with Tata Tea variants,” Prashant shares.

The brand also plans to engage younger consumers through activities focussed on children and has nationwide fitness collaborations in the pipeline for November and December.

As the fiscal year progresses, the brand is focussed on maintaining its growth trajectory and capturing a significant market share across various categories. Tata Soulfull is presently witnessing significant growth, boasting an annual growth rate of around 70-90%.

According to Prashant, about 50% of this growth is driven by metro cities, while the brand is also witnessing an increasing health-conscious consumer base in tier-2 cities. She adds that the objective is to achieve double-digit market share as time progresses.

“The upcoming months will involve preparing activities aimed at sustaining and increasing our market share through new and existing categories. We aim to continue innovating and meeting consumer expectations with exciting, health-conscious products,” she conveys.

Rasika Prashant Tata Soulfull
Advertisment