We are not fighting traditional sweets; we're trying to grow the pie for us: MV Natarajan & Raghav Rekhi

Interview with MD and Marketing director (India and India sub-continent), Mars International

The competition between chocolates and traditional sweets is not a zero-sum game, Mars International India's MV Natarajan & Raghav Rekhi tell Devina Joshi

Mars is strong internationally but the brand has been a quiet one in India. How unique is your positioning in the country?
Natarajan: We started our journey in India around three years back with the launch of Snickers. It is a functional product, which was positioned on the platform of hunger satisfaction, because of the peanuts, caramel and nougat in it. A year ago, using the local consumer insight, we positioned the communication on the lines of 'You're not you when you're hungry', using Rekha and Urmila Matondkar as celebrities to bring the brand story to life.
 
At this point, we are focused on chocolates, pet care and the gum category in India. We have just launched our second global brand in India, Galaxy chocolates. We also launched vegetarian Snickers in India - a first for Mars globally as a lot of consumers here echoed that need.

Rekhi: Galaxy is among our five biggest brands globally and is the largest tablet chocolate brand in the world. In India, we have kept the recipe and the experience intact but we have taken a lot of insights from the Indian consumer and tailored our product, whether it is the affordable price point of Rs 15 or the packaging innovation to make sure it's shareable and re-sealable for future consumption. The molded segment (under which Galaxy falls) is the fastest growing in India.

Is it tough being a late entrant in the Indian chocolate market? Are you drawing a lot from your international experience?
Rekhi: We take our principles very seriously. Quality is our first principle. Our advertising is reflective of the global positioning. We're at a stage where we're building our brands in India. While we are using global advertising platforms, we are taking steps to ensure we Indianise them. We are adapting our work here to stay relevant.

SWEET TOOTH

• Natarajan joined Mars International India in 2010. He has more than 17 years of sales, marketing and general management experience of which 12 years have been in the consumer products industry and five years in the retail and telecom industries
• He is an engineer with specialisation in Electronics and also holds a post graduate degree in management from IIM Lucknow
• Rekhi has 14 years of experience with Mars Inc and has held various roles in marketing and sales. He was recently marketing director for Mars META (Middle East, Turkey, and Africa region)
• He graduated from Babson College in Massachusetts, US

Chocolate consumption in India is not as high as it is internationally. Cadbury's is probably the only brand that has tried to grow the category. What is Mars doing on this front?
Natarajan: Chocolate is the fastest growing segment within the processed foods segment in India. If you look at the last couple of years, the CAGR (compounded annual growth rate) is upwards of 20 per cent for chocolates. We're seeing a number of new consumers coming into the fold. We commissioned a research with IMRB in India to understand chocolate consumption habits. What we realised is that consumers prefer chocolates to a number of macro-snacking items including the local chaats and tikkis! With the increase in disposable incomes, the awareness of chocolate is increasing. Global brands are only going to fuel the momentum.

On comparing, sweets are perceived to be guilt-free while chocolates are an indulgence. How do you plan to fight the traditional sweet market?
Natarajan: It is not so much about fighting traditional Indian sweets. It is about the number of occasions or the moments when you could have a chocolate which adds to the category consumption and the growth story. Indians have a sweet tooth historically. Chocolates have their moments as well. They will co-exist. It is not a replacement, cannibalisation or a zero-sum game in that sense.

Assocham statistics reveal that chocolate demand soars by 40 per cent during festivals, so players are launching special gifting/combo packs. Do you agree chocolates need to 'Indianise' this way to drive consumption?
Rekhi: Gifting in this category is huge not just in India but also globally. As you see the chocolate category evolve, it will do so on the back of a number of reasons - be it innovation, addressing the right price point, new brand launches, new usage or gifting occasions. We have gifting options in the rest of the world, and at the right time, we will assess this in India. We are focused on growing our key brands first.

India is considered to be the fastest growing market for chocolate consumption by adults, with almost 20 per cent of chocolate sales coming from 'adult' chocolates. How do you plan to cash in on this trend?
Rekhi: Chocolates has never been a 'kiddie' thing globally, to be honest. Candies, maybe. Our strategy is to communicate to a large target audience. We have a clear marketing code that disallows us from targeting children below the age of 15 in our communication. We stay away from children's channels and target family channels on TV.

Are your packaging norms in India on par with Mars globally? What are the best practices you are following here?
Natarajan: We import our chocolates at large. So the product and packaging is the same as what you find globally. They will all have nutritional guidelines, for instance, helping consumers make an informed choice. We're looking at the India opportunity in the long-term. To get our brands to life, our 'thought leadership' and the marketing codes are in place even as the category is still in its early stages here.