Ethnicity in a bottle - branded beverage market in India & the silent revolution afoot?

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"Ethnicity in a bottle" As the localethnic embraces modern branding hues, here is at hand indeed a silent revolution in India!! "Punjab Sind" Yet another local brand, a consumer brand which enjoys ethnic local market trust gets into packaging, branding & cracks modern retail. Most local & been here for a while mumbaikars have come to love & trust Punjab Sind for their paneer (cottage cheese), lassi & other dairy products. Increase in demand and opportunity projected lead to multiple outlets & hence ramping up of production capabilities, leading to a further opportunity realisation of getting into packaged FMCG... I went to a 24/7 medical store to buy a strip of antacid, saw a fellow customer billing 4 packs of this lassi (churned yogurt/curd flavoured & plain), felt aah! here's an even faster relief and an immediate calmer for my acidic tummy and went and looked for it. Right next were a range of other big national brands with packaged lassi. But as soon as I saw "Punjab Sind" I said hey! is it the same "my Punjab Sind?" nah! cant be!! But I took a closer look and to my delight realised it was indeed amchi (our own) Punjab Sind in smart packaging. Presto, my hands automatically grabbed these instead of Amul / Britannia and others. Wait a minute, I always thought of Amul as my dear localcool, cooperative movement backed amchi brand but here I found myself thinking Punjab Sind as more amchi than Amul.

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A strategic provocation around ethnic brands gearing up and taking the fight to the global & national biggies in the f&B market. The silent ethnic revolution that is possibly afoot in India.

Transcript of Ethnicity in a bottle - branded beverage market in India & the silent revolution afoot?

Page 1: Ethnicity in a bottle - branded beverage market in India & the silent revolution afoot?

 

"Ethnicity  in  a  bottle"    As  the  local-­‐ethnic  embraces  modern  branding  hues,  here  is  at  hand  indeed  a  silent  revolution  in  India!!      "Punjab  Sind"  

     Yet  another  local  brand,  a  consumer  brand  which  enjoys  ethnic  -­‐  local  market  trust  gets  into  packaging,  branding  &  cracks  modern  retail.    Most  local  &  been  here  for  a  while  mumbaikars  have  come  to  love  &  trust  Punjab  Sind  for  their  paneer  (cottage  cheese),  lassi  &  other  dairy  products.  Increase  in  demand  and  opportunity  projected  lead  to    multiple  outlets  &  hence  ramping  up  of  production  capabilities,  leading  to  a  further  opportunity  realisation  of  getting  into  packaged  FMCG...    I  went  to  a  24/7  medical  store  to  buy  a  strip  of  antacid,  saw  a  fellow  customer  billing  4  packs  of  this  lassi  (churned  yogurt/curd  -­‐  flavoured  &  plain),  felt  aah!  here's  an  even  faster  relief  and  an  immediate  calmer  for  my  acidic  tummy  and  went  and  looked  for  it.    Right  next  were  a  range  of  other  big  national  brands  with  packaged  lassi.  But  as  soon  as  I  saw  "Punjab  Sind"  -­‐  I  said  hey!  is  it  the  same  "my  Punjab  Sind?"  -­‐  nah!  cant  be!!  But  I  took  a  closer  look  and  to  my  delight  realised  it  was  indeed  amchi  (our  own)  Punjab  Sind  in  smart  packaging.  Presto,  my  hands  automatically  grabbed  these  instead  of  Amul  /  Britannia  and  others.    Wait  a  minute,  I  always  thought  of  Amul  as  my  dear  local-­‐cool,  cooperative  movement  backed  amchi  brand  -­‐  but  here  I  found  myself  thinking  Punjab  Sind  as  more  amchi  than  Amul.    

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Aaah!  the  emergence  of  the  relative  Amchi.  Amul  based  out  of  anand  in  Gujarat  is  less  amchi  than  Punjab  Sind  which  enjoys  my  everyday  trust  &  interaction  and  hence  my  immediate  /  local  -­‐  contextually  relevant  trust.    I  excitedly  spoke  to  my  wife  about  this  &  was  in  turn  told  there  was  also  Parsi  dairy  milk  products  available  and  she  preferred  them  over  Amul,  Britannia,  Mother  Dairy  etc.      I  immediately  thought  of  my  earlier  post  on  ethnic  products  &  ethnic  distribution  systems.  (  http://on.fb.me/1vvixCn    )  between  local  brands  which  enjoy  trust  of  ethnic  products  finding  local  distribution  systems  and  others  cracking  modern  distribution  systems  -­‐  the  F&B  market  in  India  is  headed  towards  exciting  times.    Split  market  shares,  micro-­‐fragmented  markets  with  each  locality  mushrooming  its  own  local-­‐hero  brands  is  indeed  going  to  pose  a  huge  headache  for  the  #pepsi  #cocacola  #amul  #motherdairy  #brittania  kind  of  companies.    It  is  a  matter  of  which  &  how  many  of  these  local  brands  manage  to  grow,  consolidate  and  extend  beyond  their  ethnic  stronghold  geographies  is  a  matter  of  brand  play,  capital  -­‐  not  being  trade  locked,  out-­‐discounted  and  out  distributed  by  the  bigger  players.  But  with  so  much  more  money  being  invested  into  other  3p's  of  marketing  -­‐  are  big  brands  going  to  have  the  same  mega-­‐large  budgets  for  promotion?.  How  long  will  their  parent  brands  i  India  and  abroad  be  able  to  sustain  this  support?.    Yes  the  new  gen  Indian  youth  may  trust  global  &  national  brands  more  and  showcase  their  preferences  more  -­‐  but  every  such  young  group  has  a  genuine  foodie  amidst  them  -­‐  who  introduces  the  ethnic  fervour  into  their  palette  as  well  and  their  mums  &  dads  and  the  culture  of  their  household  and  the  new  found  pride  in  re-­‐discovering  and  celebrating  ethnic  culture  amongst  youth  is  also  on  the  rise  (look  at  the  amount  of  youngsters  also  visiting  a  #potoba  eating  place).    For  every  10  ethnic  brands  which  mushroom,  6/7  may  die  away  or  be  acquired  and  merged  (like  Dukes),  but  for  every  3/4  which  survive  and  make  it  big  shall  inspire  other  ethnic  brands  to  try...thus  creating  a  never  ending  cycle.    As  far  as  acquisition  strategy  goes,  Duke's  Mangola  is  still  a  local  fav  and  Mumbaikars  still  refer  to  it  as  Duke's  and  not  as  Pepsi  Duke's  or  Duke's  by  Pepsi.  Same  with  #thumsup  -­‐  in  spite  of  Coke  trying  to  choke  it,    it  is  still  the  No:1  cola  brand  of  the  country.  How  many  acquisitions  can  MNC's  sustain?  For  a  global  brand  offers  efficiencies  of  scale.      I  don’t  think  we  will  ever  be  a  USA  -­‐  which  has  such  homogenous  beverage  consumption  -­‐  like  in  all  other  things;  in  this  category  too  shall  we  remain  plural  as  a  nation  -­‐  posing  complexity?    Good  counter  balance  at  play?  don’t  know...but  definitely  interesting  times  ahead  :D  

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   "Punjab  Sind"  now  and  simultaneously  happening...  Gujarata,  Maratha  -­‐  Dravida,  Utkala....  (pun  intended)  its  happening  everywhere  locally!    #wolfsighhts  #wolfsight  Wolfzhowl