Sonam B Vij, Associate Director & Category Lead – Quaker, PepsiCo India says consumers are transitioning to a healthier lifestyle supported by convenience.
According to a recent report by Euromonitor International and Quaker, 44% of urban millennials skip breakfast and delay meals due to increased housework and late starts to the day. The study also outlined the importance of eating on time and having a nutritious breakfast.
Despite skipping the first meal of the day, most consumers in the recent past have become nutritionally conscious and embraced a healthier lifestyle.
Quaker, an oat brand owned by PepsiCo, has now entered the ready-to-eat cereal (RTE) segment with its oatmeal offering. The brand’s push is supported by industry estimates that the Breakfast Cereals (BFC) category is growing at a CAGR of 6-8% in India. The cereal subcategory has become one of the fastest growing segments in the market at a CAGR of 16-18%, according to the brand’s research.
Talking to afaqs! says Sonam B Vij, Associate Director & Category Lead – Quaker, PepsiCo India, while health and wellness has seen great momentum in recent years, consumers have also shifted away from healthier choices towards healthier lifestyles.
“The second trend that has picked up post-COVID is convenience, now that people are going back to work and life is almost back to normal. So we looked at these trends when developing Quaker Oats cereal.”
It is interesting to note that cereal has an estimated market size of Rs 275 crore and accounts for around 15% of the BFC category in India.
Quaker Oats Cereal is available in two flavors, namely Fruits and Nuts and Berries & Seeds. The core target group includes urban millennials and people looking for convenient breakfast options.
Regarding the TG, Vij says: “People who have a hectic morning schedule and usually find out a lot of things in the morning are our target customers. These can be either bachelors or nuclear families. The target group includes people who struggle with time problems in the morning hours.”
There was a peak in self-consumption during the pandemic months. People were looking for convenient and easier to prepare meals. It makes you wonder about the reason for the timing of the product launch.
Vij reveals that the brand hasn’t thought about launching the product recently. “The product took its time from idea to final launch. Although consumers skipped breakfast earlier, consumption was high throughout the day. Now is the best time for us to launch a product like muesli.”
According to the brand, the launch will be followed by a TVC campaign and a 360-degree surround plan. The marketing mix will take into account both digital and mass media channels. The product will be available through channels such as modern commerce, retail and e-commerce.
As a result of the pandemic, according to Vij, buying via e-commerce has definitely increased. “More and more consumers are looking at different buying channels. Online has become a bit more important now than it used to be.”
The 700 gram pack of Quaker Oats Cereal is available in the price range of Rs 440-460. The larger packs make sense for family consumption, but may not be the ideal amount an individual millennial would want to add to their shopping list.
According to Vij, the brand spoke to consumers during the development of the packaging to try and understand the price points. What the brand noticed was that people were looking for larger packs as they offer more value compared to a small pack. They wanted something that would last at least a few days.
The packaging and pricing were created with the core of the product in mind, with TG who may not have the time to keep buying groceries, Vij points out.
While muesli is a quick fix, it’s not your typical Indian breakfast. Indians are spoiled for choice when it comes to their breakfast offerings. Therefore, positioning muesli for Indian consumers can be difficult.
She states that it is a product that will bring nutrition, taste and convenience to the Indian consumer.
“The idea is not to compete with any breakfast as it can also be eaten as an accompaniment to the existing breakfast. The idea is to reach the 44% of people who skip breakfast. We want to play a role in consumers’ lives so that they get back into the habit of having breakfast,” says Vij.