MORNING MAKES THE DAY!MARCH 2015

STRUCTURE

CONSUMER TRENDS

MARKET INSIGHTS: TRENDS AND GROWTHS, KEY PLAYERS: STRATEGY AND COMMUNICATION

RETAIL INSIGHTS (Market Visit Report)WHY BREAKFAST?

BREAKFAST OPTIONS

THE IMPORTANCE OF HAVING BREAKFAST

Increases Metabolism

Enhances Memory

Energy all through the

day

Builds Immunity

NO KIDDING WITH BREAKFAST

− Breakfast consumption in children is associated with

− improved memory

− Performance

− Attention

− ability in problem solving

− comprehension during reading and listening.

− Nutritionists believe that breakfast should provide essential nutrients like protein, fibre, vitamins and minerals besides energy.

− Breakfast should consist of foods from at least three essential food groups

− e.g. one serve of grain group, one serve of dairy group and one serve of fruit group

The morning rush

PROFILING: THE HURRIED WORKING MOM

The alarm pings seemingly hours before it’s time to wake up. The children have to be shepherded to school, there’s no time for gym and the lists of pending chores will stay pending another day because there’s a meeting that’s going to finish late in the evening. Is this what runs through your head in the morning?

Yes! says Preeti Kumar, who works for a leading private bank in Bengaluru and commutes 22 km to work each way. She is health-conscious but her mornings are too frantic to warrant a ‘proper breakfast’. “There’s never enough time these days,” sighs the 35-year-old who still rates idli-chutney as her favourite morning meal. “So these days, we just have cereal. It’s nutritious and convenient and there is a lot of variety.”

INDIA: BREAKFAST HABITS STUDY

− Cereal popularity on the rise in the metro’s

− Should be “light” and homemade preferably

− ‘’A heavy breakfast weighs me down’’

− Need to feel light, easy and yet full

− Fruits inject the health quotient in any breakfast

BREAKFAST: MOST SKIPPED MEAL OF THE DAY

− Breakfast is the most highly skipped meal of the day (breakfast 27% vs. Dinner 5%)

− Teenagers have a high tendency to skip breakfast vs kids and adults

− Bombay and Chennai lead in the skippers list

− Breakfast is missed because of lack of time and not feeling hungry

− Women tend to miss breakfast more often than men

BREAKFAST: NUTRITIONALLY INADEQUATE

− Even amongst those consuming breakfast, the nutritional content was inadequate

− The breakfast for all the people studied is poor for all nutrients except calcium.

− Calcium intake at 30% of the day’s RDA is high due to the consumption of milk at breakfast.

− There are gross inadequacies in the intakes of iron and fibre and most B group vitamins in breakfast across all age groups.

− Inadequacy at breakfast not being made up through consumption of rest of other meals

− Children having more inadequate day’s nutrient intake profiles as compared to adults

− Amongst all 4 cities, the breakfast nutrient profile is the best in Chennai.

− Is it because of the existence of well-defined breakfast foods...

− More adolescent girls (18%) than boys (4%) are skipping breakfast. This probably is linked to weight control issues.

BREAKFAST DILEMMA

The Indian homemaker is often battling the taste versus time dilemma in the morning rush hour while trying to surprise her family at the breakfast table with healthy options.

INDIA: BREAKFAST OPTIONS

INDIA: BREAKFAST OPTIONS

TRADITIONAL BREAKFAST (COOKED AT

HOME)

TRADITIONAL BREAKFAST

(RTE)

WESTERN BREAKFAST

*Cereals *Oats*Granola Bars

BREAKFAST: RESTAURANTS

• MCDONALD’S

IN-

HOME

ON-

THE-GO

TRADITIONAL BREAKFAST: COOKED FRESH AT HOME

NORTH

• Paratha

• Puri Sabzi

• Chhole

• Jalebi

SOUTH

• Idli

• Vada

• Dosa

• Poha

• Upma

• Kesari Bhath

WEST

• Poha

• Upma

• Ghatia

• Jalebi

• Dhokla

• Shira

• Thepla

• Thalipith

• Bhakri

EAST

• Luchilkochuri

• Panta bhath

• Bread Omelet

• Rice

• Aloo Dum

TRADITIONAL BREAKFAST: READY TO EAT

The penetration of packaged breakfasts [ready-to-cook upma, poha, parantha etc] is still negligible, even though brands like Britannia’s Healthy Start and

Quaker’s Nutri-poha and Nutri-upma are attempting to pitch them alongside breakfast cereals.

WESTERN BREAKFAST: AT HOME

1. Hot cereals (mostly oats, but also oat bran and wheat bran),

2. Ready-to-eat (RTE) cold cereals (corn and wheat flakes, and muesli).

3. Oats (the fastest growing segment of the Indian market) and muesli (next in growth) are not new products but have grown in popularity only in the past six-seven years.

WESTERN BREAKFAST ON-THE-GO

The market is flooded with many varieties – diet bars, cereal bars, chocolate and nut bars, high protein bars and so on.

BREAKFAST DESTINATION: OUT OF HOME

MARKET TRENDS & KEY PLAYERS

BREAKFAST CEREALS: SLOW BURNER

− Euromonitor report predicts that the breakfast cereals market will grow by a CAGR of 16% between 2011 and 2016, rising to Rs 1,565.20 crore, with hot cereals at about Rs 829.54 crore and RTE cereals at Rs 735.60 crore.

− Valued by Euromonitor International at approximately Rs 870 crore in 2012, which Kellogg’s leads with a market share of 57%

− To put things in perspective, the far older cornflakes category has seen a penetration of just 12 per cent while noodles is at a humongous 88 per cent.

OATS: SELLING LIKE HOT CAKES− As per a recent Nielsen India report on Indian breakfast consumption habits, oats

occupies a 26% share in the Rs 720-crore breakfast cereal market.

− 38% growth in the last one year.

− The study, conducted in 11 markets with a 10 lakh-plus population, showed that the bulk of this growth came from households that had never consumed breakfast cereals.

SOUTH INDIA: EARLY OATS ADOPTER

− According to it, the most popular form of oats is as porridge with milk; housewives have also tried including oats with upma, idli, roti and dosa

− In fact, south Indian consumers, who have been the earliest adopters of oats, even add oats to their idli and dosa batters. And, nearly 49 per cent of oats consumers in Kerala, consume it for dinner.

− Consumers in south India were early adopters of oats; penetration rates in Chennai and Cochin stand at 37 percent and 34 percent, respectively. Says Sanklecha, "Actually, south Indians are rice eaters; oats offer them an option to replace rice, atleast in one of their meals.”

HEALTH PROPAGATION

− Widespread communication on health, especially on the escalating incidence of cardiovascular diseases, diabetes and obesity in Indians.

− Not only are influencers such as doctors, nutritionists and the media passing on these messages, the companies diligently themselves play the health card in all their communication.

− “New markets require companies to go to customers with powerful reasons to change, which is what these companies have done,” says brand analyst Santosh Desai. “The focus in the breakfast cereals market has been to highlight nutrition and create cultural familiarity with hot and spicy options.”

APPEALING TO THE INDIAN PALATE

− In India, even Quaker — which has no savoury flavours in the US, its biggest market — has launched “lemon-veggie” and “homestyle masala” options.

− And, while it hasn’t let go of its sweet tooth, the flavours have a distinctly Indian feel — strawberry-apple and kesar-kishmish. “Flavours have to align with the habits and every day life of consumers,” says brand analyst Desai. “So, to get the flavours right, brands have to keep old habits in mind even as they try to create new ones.”

HEALTH VS. TASTE

− “The consumer sees health and taste at the opposite ends of the spectrum. Growth can be unlocked only if this trade-off is minimised,” he says. “So, the research and development team at Marico was given a simple brief: how can we make oats not just acceptable but one that can be relished?”

- Sameer Satpathy, executive vice-president and marketing head of the consumer products business at Marico

FOCUS WOMEN

− Women are now financially empowered and better informed

− Is evolving from home maker to home manager

− By linking products to health, brands sublimely convey that if a woman takes care of herself, she will be better able to takecare of her family.

− In the process, marketers are trying to remove guilt from the mind of the woman consumer of taking care of herself and also meeting her aspirationaland functional needs.“

− Women's health and overall well-being impact not just her, but the family and overall society. I

− f the woman of the house is healthy, relaxed and feeling positive, the whole family and the community will feel so.

POST WORKOUT, AN UPCOMING SPACE.

− Protein has turned into a dynamo within the food industry.

− Protein is closely associated with muscle-building and satiety -- benefits that are in vogue today.

OATS: SWEET TO SAVOURY

− Kellog’s has launched a ready-to-eat offering called Kellogg's Oat-bites and a new variant, Simply Pongal oats, to replicate the popular South India breakfast dish (pongal).

− Safola soft launched masala oats in South India

− on-ground activations with local celebrity chefs, festival-themed cooking shows, trial packs, in-store promotions — were concentrated in that region.

KEY PLAYERS AND COMMUNICATION

Oats (sweet & savoury) , cereals, muesli, traditional breakfast options & breakfast

destination.

SAFFOLA: OATS, MUESLI AND MASALA OATS− Saffola Oats - the second largest oats brand in India - had a "good run" in the quarter,

with value growth of 31%. (2014)

− Marico is working on developing the value-added oats sector, introducing two sweet flavours with fruit to "compliment" the group's savoury flavoured oats offering.

− Focus on value added offerings in the oats segment has enabled the company to capture 62% share in the flavoured oats market," Marico noted.

− "The franchise is expected to reach a top line of circa INR700m-750m (US$12-13m) in this fiscal and is poised to cross INR100m (US$17m) landmark next year."

MASALA OATS:

PRESS AD

MASALA OATS

TG: Women

Insight: Women are conscious about eating oily/fried food and hence end up eating bits and pieces and never a complete meal

Sign off: Mazedaar khao, jeebhar ke

TVC – Saffola Masala Oats – May 2014

TVC – Saffola Oats Porridge – March 2014

OATS PORRIDGETG: COUPLES

ROMANCING OF THE COUPLE BLENDED WITH ROMANCING THE PRODUCT

Sign off: PORRIDGE IS NOW HEALTHIER WITH SAFFOLA OATS

PRESS AD

SAFFOLA MUSSELI

INSIGHT: People take up fitness measures only to give it up

SIGN OFF: The smarter way to stay fit

SAFFOLA OATS UPMA 2014

TG: Family

Sign off: Oats made healthier with Saffola oats

SAFOLA: ENGAGE ACTIVELY WITH THE TIME-CRUNCHED

− 'Fit Foodie' a mix of recipes and culinary suggestions that ensured consumer engagement through shareability.

− Extended it to launch the 'Fit Foodie Meter', which essentially scores the recipes on how healthy they are and also provides easy to do tips for healthier recipes.

− With convenience playing an important role in food consumption, timecrunchedworking population particularly from nuclear families is increasing their oat consumption.

TVC

https://www.youtube.com/user/SMOtheFITfoodie

QUAKEROATS

QUAKER: THE INDIA ROLL OUT

− Good Morning Heart, Offered health diagnostics, healthy cooking and fitness tips, and advice from nutrition specialists and dieticians.

− In 2009, it started the “mission to make India heart healthy” in collaboration with Apollo Hospitals, Chennai police and some corporate houses, where it offered an online health check-up and personalised diet counselling by nutritionists.

− Two years later, it followed up with the Smart Heart Challenge that invited employees with high risk of heart disease to change their eating habits, work out and de-stress daily, and have their cholesterol checked at Apollo Clinics, all for free.

COMING UP

− 'Quaker Fresh Starts‘ LAUNCH in some GLOBAL markets.

− It's a range of quick, on-the-go breakfast meal ideas like smoothies, parfait/energy bars and muesli made up of the 'three morning essentials' — fruits, yoghurt & oats.

− Plans to unveil in India too

QUAKER 2009: HEALTH SCARE

MISSION TO MAKE INDIA HEART HEALTHY

− The 2009 Quaker Oats campaign shows a bunch of office-goers suddenly being told that by 2010 around 46.9 million heart disease cases would be reported in India.

− With this data, the company urged people to change their eating and living habits and take to a healthier lifestyle.

QUAKER 2011: SMART HEART CHALLENGE

Invited employees with high risk of heart disease to change their eating habits, work out and de-stress daily, and have their cholesterol checked at Apollo Clinics, all for free.

TVC

− INSIGHT

− Kids esp girls know how to have their way with their fathers. And being one up amongst their kids social circle is a pride for the parent.

QUAKER OATS: 2012

− launched localised and popular Indian flavours such as kesar, kishmish, masala and lemony veggie mix with real capsicum.

QUAKER OATS 2013: HOMESTYLE MASALA

Made with 100% Wholegrain Energy to keep you going+

Rich Source of Dietary FibreGood Source of Protein‡

− The breakfast dilemma of health vs. Taste solved by the savoury introduction of HomestyleMasala range.

QUAKER 2014: OATS PLUS

− TG: Families

− The PLUS family has the multigrain advantage

BAGRRY’SINDIA

− Rs 45-crore, a No.2 home-grown player with a 15.2% market share.

− Focusing on improving its distribution network — it’s already available in over 130 cities and towns across India, Nepal and Bhutan.

− But Bagri isn’t complaining about the advertising onslaught.“The multinationals have opened up the category and built awareness, which is a plus,” he says. “So the competition here is more a marketing opportunity than a negative.”

− Crossed Rs 500-crore sales mark in India after growing 31% last fiscal and more than doubling its business in three years, helped by India-centric innovations and single-serve affordable packs that attracted new consumers.

− "The single-serve packs priced at Rs 10 in tier-I and tier-II towns have helped recruit new consumers into the nutritious ready-to-eat breakfast cereals market," she said.

2012: CORNFLAKES

TG: FAMILIES

EASY AND RIGHT START TO THE DAY MAKES THE DAY RIGHT

2013: INDIA BREAKFAST HABITS STUDY

− In 2013, Kellogg India supported the ‘India Breakfast Habits Study’ which showed that 1 in 4 Indians skip breakfast and a whopping 72 per cent have a nutritionally inadequate breakfast.

2014: BREAKFAST PLEDGE INITIATIVE

− BREAKFAST PLEDGE INITIATIVE was kick-started in January 2014 by gifting 400,000 breakfasts to school children across the country.

− The initiative called upon people through various touch points to take a pledge to eat breakfast every day; with every pledge, Kellogg’s would gift a breakfast to a child.

− The initiative was successfully culminated by partnering with United Way of Mumbai (UWM).

− Four lakh Indians pledged their support and the company delivered on its commitment, by gifting 400,000 breakfasts to children in Delhi, Mumbai, Bangalore, Chennai, Hyderabad and Kolkata.

− The breakfast consisted of a pack of Kellogg’s Anaaj Ka Naashta and a Tetra Pak of milk along with a bowl and a spoon.

− Reinforcing this exercise, an educational module on the importance of breakfast was also included to highlight meal skipping and inadequate food intake particularly at breakfast time.

JUST RIGHT MUESLI

− TG: adults

− Tasty delight which is just right for adults

TG: Women

Insight: Women have targets like friend’s wedding, a party etc to lose weight

2014: TWO WEEK CHALLENGE CONTINUES

2014: CORNFLAKES

TG: KIDS

INSIGHT: An inadequate breakfast makes kids hungry way before their next meal and also affects their mental prowess.

Kelloggs cornflakes is wholesome enough to keep them full and their brains ticking.

TG: Families

INSIGHT: We are constantly told not to have fried/unhealthy food by our near and dear ones

SIGN OFF: Ab koi na kare inkaar(No one can say NO)

RTB: Manages cholesterol

2014: OATS

2015: OATS PONGAL –APPEALING TO THE REGIONAL TASTE

TG: ADULTS

AUTHENTIC TASTE

2015: CORNFLAKES

TG: KIDS

INSIGHT: kids and moms love playing the one-up game with each other

Sign off: OPEN UP CHILDHOOD

− MTR Foods, with sales of Rs 411 crore in FY13, is on the heels of Kellogg India.

− MTR is not competing against anyone, and is focused only on targeting consumers of unbranded products.

− MTR’s strength is to bring back the Indian breakfast options in a tasty, nutritious and easy-to-use format back to the Indian consumers

2012: UPMA MIX

TG: Homemakers

INSIGHT: When cooking for the very first time, that too for your MIL, the taste factor is critical.

SIGN-OFF: Now South Indian breakfast are simple to make.

BREAKFAST MIXES: WHOLEGRAIN

TG: families

INSIGHT: In the morning rush to leave the home, the lady of the house has a host of things to remember that needs to get packed.

SIGN-OFF: Start off your packed day with the goodness of MTR breakfast mixes

BRITANIA HEALTHY START

− launched a range of breakfast foods under the brand Healthy Start.

− Four variants; plain, strawberry, savoury and a multi-grain porridge in oats

LAUNCH TVC: 2011

− So tasty, the entire family has excuses to send people away from the breakfast table

− ‘Moving up the consumption clock'

− The breakfast market is a big opportunity to build the "healthy" image and extend "convenience food" proposition to the busiest hour in a household.

#HEALTHISENJOYABLE

TG: Families

INSIGHT: With a healthy workout which is enjoyable, why can’t we have a healthy breakfast that is enjoyable?

SIGN OFF: Health is Enjoyable

MAGGI BREAKFAST SELFIE’ CONTEST

− winners received a month long supply of Maggi Oats Noodles.

ENGAGEMENT: MAKING MORNINGS ENJOYABLE

− Twitter CONTEST

− Every hour the brand put up a situation and invited witty answers; five best answers won gift vouchers.

− Situations involved real people who needed ideas to make their mornings enjoyable.

− Vine videos were shared later which featured the person working on the user suggestions.

2015: BREAKFAST

Family gives mom a break from cooking for breakfast

McDonald’s breakfast menu

− According to a McDonald's report, nearly 18 per cent of the breakfast-consuming people in India eat outside home.

− The brand admits that the consumer first needs to be educated on the need for a wholesome breakfast.

− People in India are beginning to eat breakfast outside home due to increasing urbanisation, growing young population, nuclear families and increasing disposable incomes. Actually, people have less time to make and eat breakfast and also there is very little opportunity for them to eat out. So we thought of filling that need and we say that we can offer wholesome ingredients and food at McDonald's." - RanjitPaliath, VP, business operations, McDonald's India (west and south)

McDonald’s breakfast menu – National Breakfast day

− 2013, McDonald's celebrated its first National Breakfast Day and distributed nearly 5 million free McMuffins to its customers across 34 countries to spread awareness on the importance of breakfast. The annual property was celebrated again on March 24, 2014.

− According to the previous years' reports, breakfast accounted for only 4 per cent of McDonald's store sales in India, while it accounted for 20 per cent in Japan, USA and Hong Kong.

BREAKFAST-EATERS

− the average cost of having breakfast at McDonald's in India is Rs 100-120.

− It is mostly consumed by people in the age group of 25-35 years,

− belonging to SEC A and B.

− It suggests that of the people who eat outside, 65 per cent are adults; 27 per cent are teens; and 8 per cent are seniors.

− The report also mentions that during weekends, families also make a lot of target audience for the QSR chain.

− working adults in the age group of 25-35 years comprise the main target audience for the breakfast offering.

Families

Self

(women)

KidsCouples

Saffola Oats Upma

Kellogg’s Oats

KelloggsCornflakes

Saffola Oats Porridge

KelloggsJust Right

KelloggsSpecial K

TG ANALYSISMTR Breakfast Mixes

McDonald’s Breakfast

Quaker Oats Homestyle MasalaBritannia Healthy Start

Kellogg’s Oats Pongal

Quaker Oats Plus

COMM THEMES BRANDED BREAKFAST DAYS

-MCDONALD’S National Breakfast day !

-KELLOGG’S BREAKFAST STUDY/ BREAKFAST PLEDGE

GIVE MOM A BREAK – MCDONALD’S

SUPER TASTY –BRITANNIA HEALTHY START

OPEN UP CHILDHOOD – KELLOGG’S CORNFLAKES

SO HEALTHY, YOU CAN’T SAY NO – KELLOGG’S OATS

STOP LIVING ON BITS AND PIECES – SAFFOLA MASALA OATS

START YOUR PACKED DAY WITH PACKED GOODNESS OF MTR

RIGHT START MAKES THE DAY RIGHT – KELLOGG’S CORNFLAKES

FITNESS REGIMES ARE TAKEN UP ONLY TO BE GIVEN UP – SAFFOLA MUESLI

HEALTH IS ENJOYABLE – MAGGI OATS

HEALTH AND TASTE – QUAKER HOMESTYLE MASALA OATS

DIY CEREAL BAR

− Bombay-based Express Foods

− In late 2011, it launched the Express Foods Cereal Bar at an upmarket department store in south Mumbai;

− Five such cereal bars across Mumbai, Bangalore and Delhi.

− Here, customers can make their own muesli mixture, choosing from premium ingredients such as cranberries, blackcurrants, Belgian chocolate chips and Californian almonds.

− “Customers like the concept because of the customisation possibilities,” points out C Jaikishan, director, Express Foods. “Not having the financial resources to compete with the advertising budgets of the Goliaths means our products are our brand ambassadors,” he adds.

GRANOLA BARS

Current market size for nutritional bars in India is approximately Rs 50 crore and is expected to

grow at 30 per cent annually. (2013)

From the current Indian market size of Rs 100 crore for the granola/nutrition bars, it is expected

to grow 20% yearly. (2014)

ALL ABOUT GRANOLA BARS

− An energy bar is a high-carbohydrate snack marketed towards active individuals.

− The purpose of the bar is to meet the calorific needs of those participating in physical activity.

− In addition to carbs, energy bars usually contain protein, vitamins, and minerals, making them an overall healthy choice.

− They are frequently made with all-natural ingredients.

− Energy bars are versatile in that they can be consumed before, during, and after exercise, or even just as a mid-day snack.

TYPES

PROTEIN BARS

• Post exercise meal plays an important role in regaining your energy levels, recovering and rebuilding your muscles. Protein helps rebuild muscles tissues that are stressed during the intense exercises.

HEALTHY SNACKING BARS

• Wherever you miss a staple, healthy breakfast, hunger between the meals or a tasty 5 pm snack, these bars can provide a healthy snacking option with sufficient nutrition required to energize the day.

DIET BARS

• Lesser calories, lesser sugar, lesser fact and lesser carbs

BREAKFAST BARS

• People who eat breakfast are more likely to lose weight than those who eat a large dinner

GRANOLA BARS: NATURELLINDIA

− RiteBite brand garnered 60 per cent market share in the past.− Diversified the RiteBite variant portfolio with many flavours, catering to unique taste and preferences such as

sugar-free for diabetics, and working women. The company would overcome the challenges by increasing consumption of RiteBite through awareness programmes to target

− Introduction of the meal replacement Max Protein Bar, the company is eyeing a bigger market share.− Targeted at health-conscious & busy people like young working professionals in 20-35 age group as meal

replacements and post-workout meal.

− For instance, a single bar of Max Protein which contains 20 gram of protein is equal to consuming half litre of milk or 3 eggs or 3 cups of dal.

− Max Protein Bar is formulated by nutritional experts.

− It is loaded with 20 gram protein, 5 gram fibre, 21 vitamins and minerals, electrolytes, Omega 3 and amino acids, which help regain energy levels and rebuild muscles.

GRANOLA BARS: NATURE VALLEY

− Nature Valley is a brand from the US Foods giant General Mills.

− World's first granola bar brand with its origin dating back to 1975.

− Launched in India in 2006

− Both globally and in Indian market, the NatureValley pitches not on "hunger/food platform" but on the natural ingredient platform which is quite different.

THANK YOU