If you are a snack food brand and want to enter the consideration set of the health-conscious Indian, the password is ‘baked’. Yes, that seems to be the new mantra for food brands that are either eyeing the snack food segment or are looking to gobble a bigger share of the pie. Lay’s Baked, targeted at young women, is the latest addition to the healthy snack food portfolio of PepsiCo. With 50 per cent less fat, the range comprises three flavours — Original Salted, Cream Herb and Onion and Sunkissed Tomato. It is available at two price points — Rs 15 and Rs 30.
Baked snacks are classified under the health and wellness food market, according to consulting firm Technopak. The firm puts this market at Rs 6,500 crore, and expects it to cross Rs 18,000 crore by the year 2015.
Lay’s Baked joins ranks with Britannia’s NutriChoice Multigrain Thins, 50-50 Snackuits, Time Pass (“fried is gone, baked is on”) and Parle Agro’s Hippo. Since most of the brands in the segment are targeted at the youth, they have adopted a language that is not pretentious and appeals to the youth.
The health portfolio of Lay’s also comprises of Aliva, Quaker Oats and Lehar Iron Chusti. Aliva is targeted at the upper end of consumers who are looking for a healthy-while-tasty option. It combines the taste of namkeens in a biscuit format. The brand has been developed in India, specifically for the Indian consumer and is part of company’s journey towards being seen as a food company. On its part, Lehar Iron Chusti is targeted at consumers at the bottom of the pyramid suffering from micronutrient deficiency.
“The opportunity in the snack market in India is huge, potato chips being the most significant part of the branded snacking market,” says Vidur Vyas, marketing director, India Foods, PepsiCo India. The launch of Lay’s Baked has been supported by a 360 degree communication initiative, including a television commercial, print advertising and a significant investment into the digital (that includes social media) media.
While most food companies have added baked snacks in their portfolio, success seems to be elusive. Some earlier introductions such as Marico’s Saffola Zest and Parle Monaco Smart Chips are no longer available on retail shelves.
Of course, some like Britannia argue that baked products tie in well with its overall strategy of offering products that are good for the consumer’s overall health. In 2008, Britannia removed 8,500 tons of trans-fat from its biscuits. Thereafter the company has also fortified many of its products with vitamins and micronutrients such as iron.
However, the lack of consumer awareness and the preponderance of local flavour — are the major challenges before the category. “The belief that packaged food is unhealthy stands as a major obstacle in the acceptance and penetration of processed foods in India in general,” says an observer.
“Apart from consumer education, the baked segment needs to offer value-added products to consumers for it to really take off. The ‘not-fried-therefore-healthy’ proposition is not a sustainable differentiator,” he adds.
