Lotte India Aims To Reach The 1 Million Mark, Affirms Milan Wahi
Lotte ChocoPie has been focusing on its marketing efforts. It had introduced a fresh communication approach, centred on the theme ‘Love & Lotte’, designed to bring the leading brand closer to the hearts of consumers. This comprehensive campaign integrates a world of lingo, emotions, and emojis across various platforms, including TV and digital advertising, print, outdoor displays, on-pack innovations, promotions, and activations. The Mumbai-based creative ad agency, Cut the Crap (CTC), had spearheaded the conceptualisation of this initiative.
BW Marketing World engaged in an exclusive tete-a-tete with Milan Wahi, Managing Director, Lotte India wherein he converses about the evolution of the brand, its recently launched ‘Love & Lotte’ campaign, the brand’s strongest markets, and more.
Edited excerpts:
How has Lotte’s evolution in India been, ever since it took over Parry Confectionery?
Lotte's journey in India began with the acquisition of Parry Confectionery, introducing legacy brands like Coffy Bite Rich, Coconut Punch, Lacto King and Caramilk. As we expanded these cherished brands nationwide, we carefully analysed the Indian market to tailor our global products in tune to local tastes. In 2006, we test launched our first Veg Choco Pie imported from Korea. Choco Pie emerged as a clear winner and with its recipe Indianised to be 100 per cent vegetarian, we established our first plant in Chennai back in 2010. Embarking on a mission to create a separate category by itself, we have achieved Rs 100 Crore within three years and doubled by 2018 surpassing the Rs 200 crore mark. Today we are a Rs 500+ crore brand, a testament to the unwavering faith and support of our valued consumers.
Launching a third production line for Choco Pie in India, means a positive future outlook on the sales side. What kind of sales and revenue numbers are you looking at generating for this product?
India has always been a priority market for the Lotte Group and our commitment is evident in our strategic manufacturing expansions. From our initial facility at Nemam, Sriperumbudur in Tamil Nadu to the quick addition of a second facility at Rohtak in Haryana in 2015, our growth has been phenomenal. Choco Pie, initially a favourite among kids, has evolved into a beloved snack for all age groups, driving exceptional growth love for the brand has been growing in leaps and bounds, and our recent campaign resonates the consumer mood towards us. With the commissioning of our new production line in Nemam, we are geared up for significant sales and increase in the revenue numbers, making 2024 a great year for Lotte India.
For your recent campaign premise – Love and Lotte – you went gung-ho on all media during the cricket matches of CWC 2023 and even beyond that, what is the significance of the product campaign for this brand?
Our previous communication theme, ‘Life ka Pause Button’, positions Lotte Choco Pie as the much-needed pause in the hustle of modern life. Through interactions with consumers, we discovered the emotional connection people have with the term ‘Pie’, often associating it with compliments like cutiepie or sweetpie. The new campaign, ‘Love & Lotte’, seamlessly integrates this emotional connection while encompassing our previous messaging. Our aim is to have our share of the ‘Pie’ in everyone's life. We came up with four slice of life commercials to imprint our brand communication. The strategic timing of the campaign during the Cricket World Cup, especially as Team India reached the finals, resulted in record-breaking viewership. This success has significantly benefited our brand, reinforcing the positive impact of our ‘Love and Lotte’ campaign.
You also launched a set of five TVCs in 2021 for Choco Pie. What kind of a graph has the advertising and marketing for Choco Pie seen and what have been the landmark tactics taken up by the brand, ever since it was launched in 2006?
We wanted our communication ‘Life ka pause button’ to reach to a wider audience, that led to the creation of “India ka pause button” campaign, which had different sequences portraying different geographies and age group to resonate with a broader audience.
Our communication has been very consistent since the launch in 2006. Initially, we focused on gaining the trust of the gatekeeper, the mother. As we progressed, our communication shifted towards appealing to our target audience—kids, teens, and young adults. Lotte Choco Pie was positioned as the welcome pause in various life situations like pause from anxiety, loneliness, boredom to providing moments for sharing, gratitude, and cherishing. Building on this foundation, we transitioned to a more emotional proposition with the introduction of ‘Love & Lotte’.
Other products under the Lotte umbrella are yet to gain as much brand love and popularity as Choco Pie. What kind of innovations have been incorporated, to enhance brand visibility amongst consumers?
In 2023, Lotte India has experienced remarkable growth in the confectionery sector, witnessing unprecedented success across our established brands. Our strategic introduction of innovative New Product Developments, such as expanding the Coffee Bite range with Coffee Bite Rich candies, has not only rejuvenated the brand, but has also positively impacted sales in the Classic range. The incorporation of coffee flavour, particularly popular among the youth, has played a pivotal role in the brand's success. Progress in the fruit jelly category, with a focus on fortified lollipops, has proven to be a successful venture in gaining market share. Despite challenges like low entry barriers, regional competition, and pricing concerns, we've transformed our iconic Coffee Bite brand into both a product and an emotion, invoking a sense of nostalgia for the millennials and newness to GenZ. The recent launch of Coffee Bite Rich, a deposited swirl candy featuring a coffee and milk combination, exemplifies our unwavering commitment to innovation. Additionally, our introduction of 100 per cent vegetarian jelly lollipops in exotic flavours demonstrates our proactive approach to meeting evolving consumer preferences. Furthermore, Lotte also entered the cakes category with the launch of Frutopie and it has shown promising results. Capacity enhancement will lead the company to focus on this segment multifold in 2024.We continue to actively enhance our product offerings to meet the changing tastes and preferences of the consumers.
Which are the significant markets for Lotte in India? And what kind of a retail presence are you building upon for brands like Choco Pie and the rest of your products – be it through online, offline, marketplaces, EBOs, franchise outlets, in-store?
Lotte has a strong presence throughout India, particularly in metros and tier I towns. The post-covid scenario has spurred rural demand for Choco Pie, driven by factors like reverse migration and evolving consumer eating habits acquired in metros. Availability and visibility are the cogs on which we are building our brand across channels be it either offline or online. The brand's focus remains on expanding distribution and aiming to reach the 1 million mark soon.
A lot of brands are considering experiential marketing, influencer marketing and celebrity marketing as part of their communication strategy. How does Lotte plan to employ these mediums to make its messaging stronger and reach out to its TG?
In response to evolving marketing strategies, Lotte recognises the significance of experiential marketing, particularly for an impulse category product like ours. Staying top-of-mind and inducting new consumers is paramount. We conduct school contact programs and school factory visits, inviting the next generation of consumers to experience our state-of-the-art manufacturing facility. This includes showcasing the quality, taste, technology, and efforts involved in delivering the best for the consumer. This festive and cricketing seasons, national TV campaigns were run to strengthen the brand.
Active engagement in social media marketing is a key visibility strategy. We've partnered with social media celebrities nationwide on various occasions. As a market leader in the Choco Pie segment, we naturally receive reviews on social media platforms, including YouTube, where we consistently generate not less than 1,000 user-generated content (UGC) every month.
What kind of trends and innovations are expected to disrupt the confectionary market?
Currently, the emerging trends in the confectionery market are centred around the key element of taste. Simultaneously exotic flavours are gaining popularity in specific markets. Additionally, a growing emphasis is witnessed in the novel concept of healthy snacking and the other influential factors like newer price points and convenience packs contribute to the disruption of the confectionery market.
