Highlighting the shift of Indian consumers from the traditional mass gifting culture towards a more personalised and premium gifting trend, Nikhil Rao, Chief Marketing Officer (CMO), Mars Wrigley India explains the brand's pivot towards it, to serve the consumer demands better.
While talking to BW Marketing World, Rao states that the premium gifting segment is growing at a 20 per cent rate, adding that genZ is more open to newer tastes and experiences. He furthers that gifting in India is now a thousand crore segment and has grown well in the last four years.
On Introducing ‘Galaxy Jewels’
Very recently, Mars Wrigley India unveiled ‘Galaxy Jewels’, a new product aimed at tapping the luxury gifting segment. The product comes in four individually wrapped silky smooth flavours like smooth milk, crispy, caramel, and dark cream, with a focus on luxury and quality.
Talking about the marketing of the brand’s products and how different it is in India’s market, Rao says, “India possibly is one of the most complex markets, about 1.44 billion people. It’s got a mosaic of so many channels, there are wholesalers, there are paan shops, supermarkets, modern trade, and ecommerce. The old formats of trades are also here. So, it’s a very complex setup and we spent the last 12 years in setting up the distribution network."
The CMO adds that in terms of marketing, India is a very TV-strong market. TV is still 70 per cent of the investments, which is very different from the rest of Asia. In a market like Malaysia or Thailand, TV is not more than 20 per cent of media that brands would sell in. “On digital, we largely invest in Meta and Google because we do reach-based media planning,” he mentions.
On GenZ's Changing Taste Palette
Commenting on the changing tastes and preferences of the younger generation, Rao shares, “I think with the new generation coming in, especially the genZ, they are open to more new tastes. They do not want to associate with what their parents had. They want to open up, to explore flavours and tastes from all over the world. Suddenly, I see an inflow of Korean recipes and imported chocolates, so they are very open-minded. So, it’s a very good time for us as we are launching these (Galaxy Jewels). The consumers are looking forward to experiences from around the world.”
On Supply Challenges
Notably, the prices of cocoa beans have skyrocketed in the past few months, leading to a shortage in the supply. Rao points out that the prices are expected to soften in the coming months. He adds that there is global cocoa inflation. We are hoping that the rate reduced back soon. There are fluctuations and there’s hope that in a few months, it will soften.
“We are covered for this year. We order the required amount of cocoa in advance at the beginning of the year and we are covered for the cost. So, for a large part, for the next few months at least, we are not trying to pass on the cost to the consumer. We are giving more. We are giving ten per cent extra on our snickers of Rs 10. That’s the strength of big companies like Mars, which can buy in advance and protect consumers from price shocks. But, as these stocks and cover depletes, we may have to pass on a little bit of cost to the consumers, but not much,” he explains.
On Rural Penetration
The Centre has allocated Rs 3 lakh crore for schemes benefitting women along with Rs 2.66 lakh crore in the Budget 2024 for rural development, in an attempt to boost rural consumption. When asked about the brand’s strategies to leverage this opportunity, Rao expresses, “Galaxy is too young in its journey as it was launched in 2021, so we are debating as a team whether it is the right time to embark on that. Many people don’t even know Galaxy as it has just come in. We are still building distribution and reach for the brand along with launching various parts of the Galaxy."
According to him, in a year or two, the brand will embark on that. In the United Kingdom, Galaxy has been there since the 1960s, and everybody knows it. “So, if we say that we are empowering women or allowing women the right to have pleasure or indulge, then it carries a lot of weight. But, I think it’s not the right time. Right now, we are still talking about the product, the packaging and the basics,” Rao asserts.
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