MAKETING STRATEGY SUGAR FREE

SUBMITTED BY: NEHA SINGH SAKSHI GUPTA TUHINA KAKKAR VARUN TANDON

INTRODUCTION
Sugar Free is a product from Zydus Wellness and is a low calorie sweetener with over 85 percent market share and growing at a rate of more than 30 percent (Source: AC Nielsen MAT Mar-11). The product is a substitute to sugar providing a healthier option to its customers. The product is largely cratering to customers in the FMCGs customers wellness section. The product is available in four variants: SUGAR FREE GOLD: It is healthier sugar alternative, is made from Aspartame - a protein derivative. This was on the first product introduced by the company and is catering to mainly diabetic patients. SUGAR FREE NATURA: It contains Sucralose, the latest international zero calorie sweetener. It is sold in powdered form to enhance the general usage of the product. SUGAR FREE NATURA SWEET DROPS: It also contains Sucralose but is liquid form to provide handy and ease of use advantage to the customer. Company is also selling Ready to drink and powered drinking beverages under the Sugar Free brand portfolio.

VISION OF THE COMPANY

"We will create new experiences by our products that will nourish, nurture and energies your life. We shall lead the way through innovation and be a ` 500 crore company by 2013". The vision is largely supported by the products that the company is producing and the section it is cratering to. The wellness section in India is growing at a very fast rate. Lifestyle changes are creating demand for therapeutic as well as preventive products. Thus the company is creating innovative products to achieve the vision of becoming a ` 500 crore company by 2013.

OPPORTUNITY ANALYSIS OF SUGAR FREE

Opportunity analysis is done considering both macro and micro factors into consideration. MACRO FACTORS: Macro analysis includes factors like economic, demographic, socio cultural, regulatory, technology and natural environment present in the country. In case of Sugar Free, India is one of the fastest growing economies thus providing a good base for launch of any product. Sugar free is a product mainly for health and fitness cautious people. With changing life styles people within age group of 25-50 have become very health cautious. India population contains more than 50 percent of the population in the same category. These are the major factors that would affect the launch of the product. MICRO FACTORS: SOURCE OF CUSTOMER PAIN: At 50.8 million India has the largest population of diabetes in the world. Thus looking for sugar alternatives will provide them option to consume sugar without being concerned about the implications of consuming the product. Also with changing lifestyle the section of population requiring such a product is likely to grow. MORE BENEFIT TO CUSTOMER: The product is likely to provide more benefit to the customer and with all the variants present the utility of the product is going to increase and people can use Sugar Free for general usage. TARGET SEGMENT LIKELY TO GROW: The target segment is likely to grow as according to AVENDUS research the population of diabetics is going to reach 70.5 million by 2015 and also the consumer wellness segment is growing.

The opportunity analysis in case of Sugar Free shows that the product should be launched because of the following factors:

High disposable income Increasing Urbanization Improving Standard of living Mounting health problems attributing to change in the lifestyles of the consumers Growing Health cautiousness and increasing aspiration for better life Increasing awareness to try better alternatives, and make informed choices Rising willingness to spend more for fitness and well-being

Due to these factors the sector is expected to cross $ 70 billion by 2018 (Source: CII Report).

SEGMENTATION, TARGETING & POSITIONING OF THE PRODUCT

To build an effective marketing program for any product it is very important to know about the segmentation, targeting and positioning of the product. After doing the opportunity analysis, it is very important to know about the people that are to be targeted and what kind of image about the product is to be created in their eyes to increase the sale of the product.

SEGMENTATION: Sugar is consumed by each and every person. Thus in a broad sense the product which is providing a low calorie sugar alternative can cater to all the people consuming sugar. But as the product is expensive it is for a selective segment of people. From the opportunity analysis we can see that the market attractiveness is high because of the factors that are listed and the product is also expected to grow in the future. Also in terms of the products offered the company is providing variants that no other competitor is providing.

The Segmentation is majorly BEHAVOIUR BASED. As the product is a lifestyle product the purchase is largely dependent on customer needs, product usage and purchase influence. The product is largely catering to health cautious and fit people along with people suffering from diabetes. This shows that the usage is largely dependent on customer need. Sugar Free gold is mainly for the diabetic patients as it contains very few calories whereas Sugar Free Natura and drops are to increase the utility provide by the product in the mass market. On the basis of this we can see that the segment to be cratered is Customer Wellness Segment. This segment (25 and above) at present contains a large part of the Indian population. TARGETING: The targeting strategy that is to be used in the introduction stages of the product is NICHE MARKETING strategy. As we know that in the introductory stage the users are less the company can go for niche marketing targeting the diabetic people as they need the product the most. This would help them provide the product a good launch. Also the habit of drinking tea is very high in the diabetic patients and thus Sugar Free Gold which comes in form of tablets for such tea and coffee would provide a good alternative to sugar to these customers. But with products like Sugar Free Natura and Sugar Free Natura drops can cater to a wider segment of the whole of the Customer Wellness segment as they provide ease of use to the customer and fulfill their psychological need of being fit. This would help the increase their market and as the segment is growing the company can then concentrate on increasing the market to a MASS MARKET. Thus the major target population should be mainly urban dwellers for whom fitness, health and wellness are an integral part of the life. The segment sees themselves as part of a new and emerging trends and a segment which is brand-conscious in displaying a lifestyle that reflects such trends. Fashion cautious people would also become a part of the target market as being healthy is also a necessity for them.

DIFFERENTIATION: Differentiation is very important tool that can be used by a company to provide its product a competitive advantage over the other product. With Sugar Free the main focus is on PRODUCT DIFFERENTIATION. As Sugar Free comes in Tablets forms many of the competitors have introduced same kind of a product. But as the continuous focus is on product differentiation, products like Sugar Free Natura (powdered Sugar) and Sugar Free Natura Drops (liquid sugar) are there that are not available in the market. They help in providing a competitive edge to the company and also increase the utility of the product. The consumers can now replace sugar virtually in any preparations from table top applications to desserts, sweets, mithais like gajar halwa, mixed fruit custard, ice cream, kheer etc. From the generic competitive strategies we can see that the product will start from differentiation based focus strategy to a differentiation strategy catering to a much broader market. The red section shows the strategies followed for different products. COMPETITIVE AGVANTAGE LOWER COST DIFFERENTATION Differentiation Strategy Cost Leadership (SUGAR FREE NATURA Strategy AND DROPS) Focus Strategy Focus Strategy (Differentiation Based) (Cost Based) (SUGAR FREE GOLD)

BROAD TARGET COMPETITIVE SCOPE NARROW TARGET

POSITIONING: A mixture of two types of positioning can be used here. PHYSICAL POSTIONING AND PERPETUAL POSITIONING can be used to create a brand position of the product in the eyes of the customer. In case of physical positioning the company needs to focus on conveying the utility due to the packing and way in which the product is sold i.e. in powdered form or in the liquid form. The ingredients need to be made very clear as the product is also used by diabetic people and they would want to know what they are consuming. Availability in different sizes would also help the cause.

Perceptual Positioning is important as a customer is able to make a better judgment of a product on basis of what it does rather than what it is. In case of Sugar Free this kind of positioning will play an important role. The product needs to convey that it is sweet and provides the taste provided by sugar. Now taste of sugar is a very subjective thing and cannot be measured and thus perceptual positioning is required to cater to much wider population of people.

PERCEPTUAL MAPPING
For positioning, is it very important to know how the products of competitors are perceived in the market and the way in which company should place the product to avail maximum results. Following Table shows the prices and positioning of all the various products in the market. BRAND Equal VALUE PROPOSITION Safe & Sweet PRICE TARGET CUSTOMERS

` 130 for 100 tablets People having problem with sugar

Zero

Zero Calories. Derived From ` 60 for 90 tablets sugar and 600 times

Proactive health seekers in sec A & A-2 cities in age group of 30-40

sweeter than sugar. Steviocal Kalorie - 1 SugaRite Ultimate natural sweetener Sugar Substitute ` 85 for 100 tablets

Diabetic Patients

A world full of sweetness & Sold in Powdered Diabetic & Calorie cautious free of calories form people.

Few of the other competitors that are present are: Sweetex Largely selling brand recently acquired by Reckitt Sweetos Less expensive

Sugar free as a product is being sold at prices that are competing with these players and it is also catering to a much wider section as it is much more affordable & has better availability.

Thus on the basis of that a perceptual mapping of the products can be done and overall positing statement can be formed that best justifies the product attributes and qualities. In case of Sugar Free different statements can be used for gold and natura range of products as both are made from different ingredients and cater to somewhat different needs. Following figure shows the perceptual mapping of various sugar alternatives on the basis of price of the product and the value preposition they are providing to the customers.
HIGH QUALITY

SUGAR FREE EQUAL STEVIOCAL ZERO

SWEETEX KALORIE - 1 LOW PRICE HIGH PRICE

LOW QUALITY