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How Saffola weeded out giants like Unilever and ITC from the edible oil market

Rahul Gupta by Rahul Gupta
6 July 2022
in Analysis, Business
Saffola Oil Packets
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A leader’s success is decided on the basis of his capabilities in making strategies not only for the present but also for the future. The visionary capacity of a leader not only helps to sustain their business for a long but also provides a huge share of the market due to early advancement. Similarly, Saffola, a premium edible oil brand, is dominating the Super Premium Refined Edible Oil market due to its unique marketing strategy and foresight into the future of business.

The Health Crisis

According to a World Health Organization (WHO) report, more than 5 lakh deaths are estimated to be caused by the industrially-produced trans-fatty acid. Trans-fat is artificially produced with the reaction of hydrogen and oil. It is artificially created to increase the shelf life of the products and give the food desired shape and texture. It is created to provide a substitute for pure ghee in the market at a lower cost.

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But trans-fat consumption increases the risk of cardiovascular diseases, as it increases the total cholesterol level in the body. It also reduces the good cholesterol in the body that protects us from heart diseases. In a way, the consumption of trans-fat can increase the chances of diseases like obesity, metabolic syndrome, insulin resistance, infertility, and diabetes.

Although, trans-fat in oil has been added in recent times, people  have been fighting heart diseases for decades. It is the consumerism and associated risk of adulteration that has magnified the risk of heart diseases. Further, to increase the shelf life & match the oil’s nature with pure ghee, companies increased the adulteration of trans-fat, which ultimately aggravated the lifestyle of people.

Also Read: How Dairy Milk became the ‘Facebook’ of the chocolate industry

Opportunity of market

This provided an opportunity for Saffola to create a product that can be free from trans-fat and ensure a healthy lifestyle for people. Although the brand was created in the 1960s, it gained popularity after the 1990s. India was entering the world of globalization and privatization when marketing and brand making was taking place. Further, the growth of consumerism and capitalism created health consciousness among middle and high-income groups of people.

Adopting the standard demand and supply concept of business, Saffola created a Super Premium Refined Edible Oil focusing on the healthy lifestyle of the people. It not only reduced the trans-fat quantity with the prescribed limit (2%) but also added healthy fatty acids like MUFA (Monounsaturated Fatty Acids) and PUFA (Polyunsaturated Fatty Acids) for better nutrition. They added in other healthy sources of nutrients like Oryzanol and antioxidants. Further, they fortified the oil with Vitamin A (to save from night blindness) and Vitamin D (for strong bones), to maintain a healthy cholesterol level. In a way, they made refined edible oils a source of nutrients that were earlier considered good for the tongue and bad for life.

Fear and Emotion – Standard Marketing Trick

In the early 21st century, the side effects of consumerism started to reflect not only on the health of the environment but of the common people too. In the race for development and market expansion, people forgot the significance of their health. The monotonous and busy lifestyle created a lot of health diseases related to the heart. In the race of bread and health, bread had taken the lead and health deteriorated. But when the race ended, people started to realize the importance of health and that’s where Saffola entered into people’s lifestyle.

Understanding the very problem, Saffola with the help of doctors and nutritionists created the healthy refined edible oil and vouched for a healthy lifestyle. Blending fear of health and emotions of family in its marketing strategy, Saffola created its own space and dominated this space thoroughly. Coinciding with the digital and television advertising age, the marketing of the product was highly efficient and connected with the people. It hit where it hurt the most, fear and emotion.

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Taking heart diseases at the center, Saffola launched a “Saffolalife” campaign for Heart Healthy India. Partnering with brand-making company AC Nielsen and diagnostic gnat SRL Labs, they brilliantly took their product to the market. They introduced their edible oil as both, a source of taste as well as a solution to an unhealthy body. It coordinated with doctors, nutritionists, and young women for marketing and validated their claim. Saffola not only made its space in homes where patients with heart disease were already there, but it also marketed its product as a prevention of such diseases. In a way, it also focused on the future of the edible oil business.

It is a universal fact that with the increasing middle-class base and purchasing power capacity of the market, health consciousness also develops among people. This future prospect of business made Saffola the king of the Super Premium Refined Edible Oil market, and with an 83% of huge market share, Saffola weeded out giants like Unilever and ITC from the edible oil market.

 

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