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EFFECTIVE STRATEGIES FOR MARKETING

HEALTH FOODS IN INDIA..

GROWING DEMAND FOR HEALTHY LIVING…

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India‟s Top 5 Health Concerns…

Top 5 health problems Incidence

2008

Concerned about

2008

Stress 32% 37%

Frequent colds/ flu 30% 41%

Eye health problems 28% 31%

Tiredness/ lack of energy 24% 33%

Gastro/ digestive problems 20% 37%

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Source: Health Focus India 2008 Report

Increasing focus on staying healthy TODAY...

(motivations for healthy eating)

- Extra day-to-day energy and stamina 24%

- Treat or control an existing health problem 19%

- Enhance my daily health 17%

- Meet needs of my family 17%

- Ensure my future good health 16%

Source: Health Focus India 2008 Report

“Healthy eating leads to good health!”

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Source: Technopak Food report 2009

URL: http://www.indiamindscape.com/downloads/food_vol1_2009.pdf

A BIG future potential for Health Foods..

Education:

Awareness

Affluence:

Purchase Power

Demand for Health

Foods

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TAPPING THIS DEMAND…

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An explosion of brands tapping this opportunity…

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Two approaches to offering Functional Foods..

Removal of the

“Baddies”

Addition of the

“Goodies”

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There is still a big need gap to tap..

89% of shoppers select foods for healthful reasons

… but only 35% are „very satisfied‟ with their eating habits

Source: Health Focus India 2008 Report

Formidable communication task for marketers...

• 51% of consumers report they don‟t believe the claims and symbols shown on

packaging.

• 44% of consumers say they don‟t understand most of the symbols and claims on food

packaging.

• Just 10% think the symbols and claims on pack provide valuable information.

Source: Health Focus India 2008 Report

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WINNING THE MARKETING GAME:

ATTITUDINAL SEGMENTATION

Healers Disciples Investors Managers Strugglers Unmotivateds

Let’s get to know the SIX HealthFocus® segments

health involved unmotivated by health

19% 25% 6% 45% 4% *

Healers 19%

• Eat healthier because they have to.

• Tend to be older.

• Will compromise taste and

convenience for health benefits.

Facing a problem or risk. Problem : Solution

Food as medicine

Disciples 25%

• Believe diet is important

• Compulsive about their choices

• Motivated by ethical / religion

• High awareness of leading edge

nutrition issues

Organic, Natural Natural & Wellness

Global Responsibility

Investors 6%

• Make healthy choices to ensure

future good health

• Value quality over price

• Influenced by environmental and

social concerns

• Won’t give up taste/convenience

Future Health Prevention & Wellness

Healthy but Tasty

Managers 45%

• Believe diet is important

• Proactive: Know healthy eating

makes them feel better now

• Focus on feeling/looking good

• Won’t give up taste and convenience

for health benefits

Give me health TODAY! Performance & Wellness

Functional Food

Strugglers 4%

• Yo-yo between healthy and

unhealthy eating - dieting

• Believe staying healthy is a matter

of luck

• Respond to “quick fixes”

Credit / Debit Pleasure & Nurturing

Miracles and quick fixes

Unmotivated

Don’t choose food for health Pleasure not health

Taste, price, then convenience

• Don’t believe diet impacts health

• Tend to be younger and male

• Taste driven

• Make weight loss choices, but for

vanity, not health

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HOW TO SELL A POTATO?How to position potato for each of the six segments?

Healers : Eat healthy because they have to

Benefit bundle:

• Prevention

• Natural

Disciples : Believe in health from nature

Benefit bundle:

• Natural

• Wellness

Investors : Long term view on health & wellness

Benefit bundle:

• Prevention

• Wellness

Managers : Gimme health NOW!

Benefit bundle:

• Performance

• Wellness

Strugglers : Yo-yo

Benefit bundle:

• Pleasure

• Nurturing

Unmotivateds: Price, then taste, then convenience

Benefit bundle:

• Pleasure

• Performance

UNDERSTANDING HEALTH MINDSCAPES

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Where are we playing on the Product Lifecycle Curve?

Health Food Marketing is a “Technology” business…

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Successful Marketing recognises that we are in a technology business and

that the we need to educate to create acceptance and motivation to buy.

But - there are different rules for acceptance of new technology at different

stages in the product life-cycle.

PLC – The playing fields have different “rules of the game”

Technology

• Motivated by technology.

• Puts Functional before Food.

• Evaluate functional foods in a medical context.

• Brand will carve a strong niche in the market

Lifestyle

• Motivated by being first with new benefits.

• Motivated by Functional foods.

• See functional foods in the context of identity and lifestyle.

• Brand represents products and ideas on the threshold to the mass market

Mass Market

• Motivated only when new benefit becomes a standard

• Only motivated by Food

• See functional foods in a food context

• Brands bring wellness benefit to the mass market consumer

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Time

Sal

es

The MFD playground

Time

Sal

es

The Juice Category Playing Field

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Summing Up…

• The future is “Healthy”!

• Need: Astute strategy to exploit this future opportunity.

• Positioning based on segmentation could increase effectiveness

• Identifying the right playing field would lead to sharper and more effective marketing

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THANK YOUpranesh.misra@brandscapesworldwide.com

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