sugar free.pdf

VIKALPA VOLUME 36 NO 1 JANUARY - MARCH 2011 89

In July 2008, VP Marketing (Consumer Products Division) of Zydus Cadila Ltd.had called a meeting of his team and the advertising agency team handling theSugar Free campaign to review the Television commercial (TVC) campaign to beaired during August 2008 for the brand Sugar Free. He needed a quick appraisal asthe proposed campaign was a major shift from that of the past. (Exhibit 1 gives asummary of TVCs used over the years.)

He welcomed everyone and said, Gentlemen! For our recent campaign, we haveroped in Bipasha Basu as a celebrity endorser for the brand. (See Exhibit 2 for thestory board of TV commercial.) Let us look back and briefly see the journey the brandhas taken so far! We need to review TVC in light of the changes in consumer behav-iour, competition, and broader marketing environment and also plan for the futurecourse of action.

COMPANY BACKGROUND

The erstwhile Cadila Laboratories was founded in 1952 by Shri Ramanbhai Patel,who had started his career as an academician at the L M College of Pharmacy. He waslater joined by his friend, Shri Indravadan Modi. The company evolved over the nextfour decades and became Indias second largest pharmaceutical company. In 1995,after a vertical split in the operations, Cadila Healthcare came into being under theaegis of the Zydus group. With Rs. 2,500 million turnover, Zydus Cadila had therights to manufacture and market the Sugar Free brand. The group was spearheadedby Mr. Ramanbhai B Patel as the Chairman and Mr. Pankaj R Patel as the ManagingDirector.

The group is headquartered in Ahmedabad in the state of Gujarat in Western India.Today, Zydus Cadila, an integrated global healthcare company, is an innovative,research-driven pharmaceutical company that discovers, develops, manufactures, andmarkets a broad range of healthcare products. The groups operations range from API(Active Pharmaceutical Ingredient) to formulations, animal health products, andcosmeceuticals. The group has global operations in four continents spread acrossUSA, Europe, Japan, Brazil, South Africa and 25 other emerging markets.1

The Company has more than 200 products and has a 1,000-member strong team ofresearch professionals. With a specialized field force of over 3,000, it has one of thestrongest distribution channels in the industry, reaching out to 1,00,000 chemists andserving over 2,00,000 doctors including physicians, specialists and super-specialists.

M A N A G E M E N TC A S E Sugar Free

Preeta H Vyas

describes a real-life situationfaced, a decision or action

taken by an individual manageror by an

organization at the strategic,functional or operational level

KEY WORDS

Artificial Sweetener Market

Healthcare

Over-the-Counter Product

Below-the-line Promotion

Brand Communication

90

In 2006-07, the company posted a turnover of overRs.19,000 million. Zydus Cadila is supported by a teamof over 10,000 people worldwide, comprising profession-als, research scientists, medical advisors, and workersand aspires to be a leading global healthcare providerwith a robust product pipeline and a research-based phar-maceutical company by 2020.

SUGAR FREE: THE BRAND JOURNEY

Phase I ( 1988-1992)

In 1988, Sugar Free was launched as an ethical drug bythe Ethical Drug Division of the Company and promotedthrough doctors for diabetic patients. All this while, itwas promoted using below-the-line promotions as theLaw did not permit it to be sold as an OTC (Over theCounter) product. At that time, excise duty was levied oncost of production and hence the brand had a reasonablegross contribution. In early 90s, excise was levied on MRPwhich substantially reduced the gross contribution of thebrand. In 1987-88, the Cosmetic Division marketed theEveryuth brand of face cream which was a huge success.

Phase II (1993-99)

In 1993, Sugar Free moved to the Cosmetic Division andwas promoted as an OTC product as the changes in theLaw permitted its sale as an OTC. In 1993, the brandmoved to the Consumer Products Division having othercosmetic brands.

Phase III (Post-1999)

Till 1999, packaging was in blue and white having a veryclinical look; and the shape of the package was oblong.Thereafter the brand underwent a complete makeover.The colour of the pack was changed to a vibrant yellowwith the idea that it would stand out in the shelves of thedull, dark retail shops. Around that time, yellow Zen,introduced by Maruti, was in vogue. The shape of an hourglass was chosen for the pack of this low-calorie sweet-ener to indicate fitness. The brand was thus revived witha new look, new focus, and a change in strategy.

Around the same time, one of the senior executives of ZydusCadila, who was travelling in the North by train, observed hisco-passenger using Sugar Free in his tea. He was quite ex-cited to meet his customer; and so, he greeted him, introduc-ing himself and his company. The co-passenger got extremely

annoyed and immediately put the Sugar Free pack in his pocketwith a stern expression on his face! Back in his office, theexecutive narrated the incident to his colleagues and they allstarted thinking about it. Through observations and personalexperiences, there was a striking revelation that no diabeticpatient wants to accept the fact that he is suffering from thedisease nor does he like others to know about it. The com-pany through in-house consumer studies gained an insightinto the consumer behaviour. This incident led the marketingexecutive to position the product not for diabetic patients butfor the health-conscious urban dwellers.

Extension of Distribution Network

After the revamping of packaging, the company decidedto expand its distribution not only through chemists butalso by making it available next to sugar in the grocerystores. A special, low-cost display (a plastic strip whichcan be put on a wall with a Sugar Free pack) an attrac-tive hamper containing a Sugar Free pack (see Exhibit 3) was used in the grocery/kirana stores to attract theattention of the customers. Such an attractive displaywhich did not occupy much space was more than wel-comed by grocery stores. A promise to take back the stockof unsold Sugar Free, gave the company an entry into anew unconventional channel with the initial coverage of50,000 outlets. Simultaneously, it was also available atthe chemists as earlier it was marketed as an ethical drugand thereafter as an OTC item. Typically, a chemist with20,000 SKUs would keep several brands but with lessnumber of multiple units of the same brand whereas atypical grocer with about 6,000 to 8,000 SKUs was will-ing to keep one fast moving table-top sweetener and waswilling to purchase multiple units of the same. As thebrand was supported with advertising investment andawareness was already created for a table-top sweetener,retail stores were willing to stock. This strategy was alsomore in line with the new company philosophy of mov-ing the brand having medicinal touch to the Fast MovingConsumer Goods segment like other health foods, e.g.,Bournvita, Horlicks, etc. This allowed the company toextensively distribute and have the first mover advan-tage as no competitor was able to make inroads into gro-cery/kirana outlets. This also resulted in reducing thechannel power of the chemists. The company had a policyof supplying the stock once in 15 days or once in a month.Initially, they covered the top 200-300 cities, and subse-quently 800 towns (population of 50,000+), in the nextphase. With all these concerted efforts, the brand attaineda turnover of Rs. 79 million in 2000.

SUGAR FREE


Advertising

In order to create awareness for Sugar Free as a table-topsweetener, the company decided to advertise on TV. Dueto severe budget constraints, the ad agency bought spotsin Aaj Tak -- a new news channel where spots could bebought at a very attractive rate. The 9/11/2001 incidentincreased the viewership of the news channels to a greatextent which substantially increased the awareness aboutSugar Free as a table-top sweetener in a very cost-effectivemanner. Through advertising they were able to create con-sumer pull and the grocery stores were more than willingto keep one brand of the artificial sweetener with the in-creasing health consciousness among urban dwellers.

In 2002, with the expiry of the patent of Asparatame, amajor ingredient of artificial sweetener, it was possible tosource it cost-effectively which provided good contribu-tion margin. Being a bulk buyer, the company was able tonegotiate the raw material prices which also enabled thecompany to invest in advertising/above the line commu-nication to promote it as a lifestyle product.

It was estimated that there were 12 million fitness-con-scious people residing in metros and big cities. Hence itwas decided to promote it as a lifestyle product for thehealth-conscious calorie watchers. Thus Sugar Free waspromoted as a substitute for two teaspoon of sugar con-taining 40 calories. The Cricket World Cup (2003) eventalso increased the viewership of the news channels andthe use of Harsha Bhogle and Raveena Tondon as en-dorsers in a TVC further helped in increasing the aware-ness of the brand (see Exhibit 4 for the storyboard of TVCof Harsha Bhogle and Raveena Tondon)

Market Opportunity

It was seen that in the higher income urban households,particularly in case of adults with sedentary lifestylesand an indiscriminate consumption of sweetmeats andconfectionery, incidence of Type II late onset, post-30 yearsdiabetes and hypertension was quite high (as opposed toType I infantile diabetes). One estimate projected Indiasdiabetic population to go up to 75 million by 2025. Alsoincreasing health consciousness among urban house-holds provide a good market potential for Sugar Free.

Phase IV: Brand Extension and Sub-brands

In 2004, Sugar Free Natura, a brand extension, was intro-duced. It was made from Sucralose, an extract from sugar,

which being heat stable, allowed culinary applications.

Figure 1: Packaging Design of Sugar Free Natura

Culinary applications were promoted through ads en-dorsed by Sanjeev Kapoor (see Exhibit 5 for the story boardof TVC). Even though the promise by both Sugar Free Goldand Natura was the same i.e., saving of calories bothwere promoted very distinctly in terms of applications.Sugar Free Gold was promoted as a table-top sweetenerwhereas Sugarfree Natura was promoted for its use inculinary applications. This name was promoted by em-phasizing cooking possibilities so that Sugar Free Goldwhich was made from Asparatame was not cannibal-ized. People needed to be educated about the taste be-cause earlier Saccharin, which was a sugar substitute fordiabetics, left a bitter after-taste in mouth. Also legally,use of artificial sweeteners was not permitted in any foodpreparation in India, but the ban was lifted in 2002. AsSugarfree Natura was promoted for cooking applications,the market preferred it in a powder form though it wasavailable both in powder as well as tablet form. The per-centage breakup of turnover of powder and tablets was10:90 in case of Sugar Free Gold whereas it was 50:50 forSugar Free Natura. Exhibits 6, 7, and 8 present thestoryboards of TVC used in 2006, 2005, and 2004 respec-tively.

The company launched Sugar Free Dlite, a soft drink,using artificial sweetener in 2007. It was in a ready-to-drink form and the company had to resort to an extensivedistribution of free samples to change the preconceivednotion of a bitter taste of artificial sweeteners. Initial cam-paigns of Dlite positioned it as 85 per cent less calo-ries and the latest one emphasized, only 10 calories.For 2-3 years, the company spent heavily on free samplesfor generating trials and word-of-mouth campaigning,

92

thus indirectly promoting Sugar Free along with the newproducts.

Domestic Artificial Sweetener Market

It was estimated that the market for artificial sweetenerwas worth Rs. 600 million in the late 90s and was ex-pected to double in mid-2000. It was growing at around20 per cent per annum.

Competition

There were several Indian and international players inthe Indian sweetener market. With about 70 per cent mar-ket share, Sugar Free was the leader.

Equal, a market challenger, was a brand of Monsanto, aUS company. In early 2000, marketing rights changedhands from Glaxo to Heinz, for distribution in India, whenHeinz entered India in the Ketchup category. Glaxo, be-ing a pharma company, had a good network of chemistswhereas Heinz had no experience in distribution throughchemists. With a 15-20 per cent share, Equal was pro-moted as worlds No. 1 sweetener and was supported bydoctors and WHO. Taste was emphasized in the mes-sage. Exhibit 9 presents a storyboard of TVC of Equalaired in 2002. The print campaign of Equal was based ontestimonials of long-term, satisfied users. Equal claimed,the best ingredients give the clean sugar taste. BothTarla Dalal and Sanjeev Kapoor, celebrity chefs, producedrecipes using Equal. Tarla Dalals book, Diabetic Delight,became popular. Equal was initially priced at Rs. 300 fora 100-tablet pack which later came down to Rs. 125-130as 100 tablets of Sugar Free (later known as Sugar Free

Gold) was made available atRs. 55. Figure 2 shows thepicture of a pack of Equal.Equal and another brand,Sweetex, took the problem so-lution route, and targetedpeople who essentially hada problem with sugar.

Other brands which wereavailable in the market wereSweetos, SugaRite, Steviocal,Kalorie 1, etc. Sweetos wasintroduced by EnsignsHealthcare Pvt. Ltd. (a Pune-based company). SugaRite

and Steviocal were both made from the stevia plant,1 anative plant of South America. Steviocal was promotedby Rigil, which marketed stevia products in India. Asthese products were made from natural stevia plantswhich are heat stable, cook & bake usage was empha-sized in its promotional strategy. The company (Rigil)also worked closely with doctors and diabetic forums topromote Steviocal. For people who wanted to haveaspartame-free sweetener, there was Steviocal, which wascalled as the ultimate natural sweetener. Rigil, the com-pany behind promoting and marketing Stevia productsin India, stressed on the sheer goodness of the product.As the popularity of sweeteners as a category was grow-ing, Rigil developed a twin-pronged strategy of workingwith doctors and diabetic forums and as the health con-sciousness wave was catching up in metros, it promotedthe heat-stable stevia products for use in both cooking andbaking. Its 100-tablet pack was initially priced at Rs 170,which came down to Rs 85 in the following years. See thepack photo in Figure 3.

Mankind Pharma, with its Kalorie 1 brand, was estab-lished in 1995. It had its presence in antibiotics, ED,Gastro, and Antifungal Cardio segments. The companyforayed into the OTC segment with a range of productsfrom sanitary napkins, artificial sweetener to emergencypills. Kalorie 1 its sugar substitute brand used Wasim

Figure 2: Equal Pack

1 The Stevia plant, a herb of the chrysanthemum family, and a na-tive of South America, has been used as a sweetener for over 300years in some parts of the globe. Since the 1970s, according toliterature, it was used in Japan as the main alternative to sugar(aspartame is banned in the country). It is also supposed to behelpful in controlling the blood sugar levels, and is being touted asa weight-loss aid, because of its zero-calorie properties.

SUGAR FREE

Figure 3: Stevia Products


Akram (a Pakistani cricketer, who is diabetic) as the brandambassador.

In 2005, the one-billion pharma major, Alembic, enteredthe sugar substitute market with the launch of a no-calo-rie sugar substitute brand - Zero. Alembic became thefourth major player in the Indian market after Sugar Free,Equal, and Sweetex (a UK brand by Health Check Phar-macy). In keeping with its corporate philosophy of pro-viding quality healthcare products, the company made aconscious decision to aggressively target proactive healthseekers. It was targeted at middle-aged executives whoselifestyles were intermeshed with professional and per-sonal stress, and who did not find time for personal fit-ness and health. Hence the brand Zero was promotedas Live Lite. It was priced at Rs. 60 for 90 tablets. Throughthe research conducted by the company, a new set ofemerging consumers, called proactive consumers, wereidentified in the age group of 30-40. This set of consum-ers, unlike in earlier times, saw their colleagues andfriends dying young due to heart attacks, diabetes andother sugar-related diseases. So, somewhere there wasthe inertia to keep themselves fit. They were looking atoptions to reduce their calorie consumption and sugarwas the key contributor to calories. This was perceived asan opportunity. Another unique selling proposition wasthe fact that the company was using Sucralose as an in-gredient. Sucralose was highlighted as the key differenti-ating factor between Zero and the other players.According to the company, this zero-calorie sugar substi-tute was derived from sugar and tasted just like sugar,providing the much needed sweetness to the millions ofhealth-conscious Indians.

Sucralose has been currently approved by 42 countriesaround the world including the leading regulatory au-thorities like the US Food & Drug Administration (FDA),the Joint FAO/WHO Expert Committee on Food Addi-tives, and the National Food Authority of Australia amongothers. Sucralose was a new generation molecule in thesweetener market. Though Aspartam or Saccharine wereother molecules which acted as a sweetener, Sucralosewas the only one that was made from sugar and tasted likesugar. It was 600 times sweeter than sugar and was sta-ble at higher temperatures while the other two were not.

Alembic planned to garner 10 per cent of the market shareby the end of 2005. The total market was expected to growfrom Rs. 600 million to Rs. 900 million by 2006. The mar-

keting plan focused on consumers belonging to SEC A1A2 category between the age group of 30- 40.

The promotional blitz of Zero was divided into twophases. Phase one, which would last for three and a halfmonths, was involved with the education of consumersabout the molecule Sucralose and its superior quality interms of it being a safer molecule and stable at high tem-peratures. The second phase, focused on the benefits ofzero calorie, was more broad-based; it was used as thereal brand building exercise which was scheduled foranother 3-4 months. TV was the lead medium. Along withthat, a fair mix of print and outdoor was used. Later on,the communication evolved into more lifestyle-based ad-vertising where the proactive health seekers were tar-geted with the theme of Live Lite.

The Creative Director, Leo Burnett, handling Zeros ac-count, in one interview stated, We are very well-differ-entiated from our competitors both at the product level aswell as the mindspace that we occupy. At the productlevel, we have a unique advantage of having Sucralose asour molecule. All leading brands in the market today aremade of Aspartame, the ill effects of which have beenproven across the world. (See Appendix 1 for the over-view of global artificial sweetener market.)

While Aspartame-based sweeteners are low-calorie,Sucralose is a zero-calorie sweetener with numerous otherproduct advantages. It has a natural taste; it is safe forchildren and can be used for cooking and so on. A lot ofemphasis was also given to both below-the-line and shoppromotion. For exploiting the Internet, an emerging me-dium, wherein a dedicated website for the product www.livelite.net was launched. To ensure hits, thesite was not confined to Zeros consumption, but was left

Figure 4: Brochure of Zero

94

open for anyone who wanted to keep fit. The total market-ing investment was about Rs. 25-30 million for 2005. Theaim was to achieve a total turnover of Rs 60 million forthe year 2005. For the launch, 28 metros and mini metroswere prioritized in the first phase and then 23 cities werereached (5 lakh + population) in the second phase. Alem-bic planned to spend close to Rs 4.5 crore by the end of2006 on marketing and advertising to drive ahead its life-style positioning

In October 2005, Alembic, the makers of Zero, Indias firstzero-calorie sweetener, introduced Zero Cook and Bake,a sucralose-based zero-calorie cooking powder. Zero Cookand Bake was priced at Rs 150 for 140 teaspoons andwas expected to drive robust growth in the Rs 60 crorecategory. In-shop promos as well as organized samplingof Zero Bake and Cook at gyms were planned.

For the nine months ending December 31, 2007, Alembicrecorded sales of Rs 7,590 million, which was more thanthe annual sales of Rs 7,210 million in the previous fi-nancial year. In 2008-09, the company was confident totouch Rs 10,000 million mark.

CONSUMER PRODUCTS BUSINESS:ZYDUS WELLNESS LTD.

In 2006, Zydus Cadila bought Nutralite (a table spreadbrand), a healthier alternative to butter, from CarnationNutra Analogue Ltd. Subsequently, through reorganiza-tion, all wellness brands like Nutralite, Sugar Free Goldand Sugar Free Natura, Dlite, and skincare products likeEveryuth were brought under a company named ZydusWellness Ltd. In early 2008, Mr. Pankaj R Patel, the Chair-man and Managing Director of the group said, ZydusWellness aims to promote healthy living by anticipat-ing the emerging and day-to-day needs in dietetic/healthfoods. Health and wellness have been identified as theemerging areas in consumer healthcare. The Company isfocused on empowering individuals who wish to adopthealthy eating habits and lifestyles. It is a pioneer, offer-ing healthier dietary options to the consumers. The prod-uct range comprises Sugar Free Gold Indias No.1sweetener with a market share of over 70 per cent, SugarFree Natura a zero-calorie sucralose-based sugar sub-stitute, Sugar Free Dlite a low-calorie healthy drinkand Nutralite a premium cholesterol-free table spread.Nutralite has emerged as the second largest brand in thecategory of butter and butter substitutes. We believe thatthere is a tremendous growth potential for this business

and we would be better placed to unlock value through aconcerted effort under a single banner, says Pankaj Patel.

In 2006-07, the company spent its communication budgetto leverage the Bollywood movie Chini Kum. The rightto use title and the stills of the actors from the movie wereextensively used in hoardings and other media to popu-larize the brand Sugar Free. In India, this was the firstin-film placement wherein a title integration Chini Kum A Sugar Free Romance was also done. The campaignwon an award at Goa Festival as the best in-film place-ment in the category.

In 2008, Bipasha Basu was proposed as an endorser forthe TV commercial that was to be launched. It was thoughtthat it would help consolidate its fitness proposition andthe shape of the pack would appeal to the young fitness-conscious people. In the South, a similar commercial wasto be aired with Simran, an actress from the SouthernCinema.

The VP Marketing and his team had discussed internallywith the Senior Management Team and the CorporateCommunication Department before signing a contractwith Bipasha Basu as an endorser. In fact close interac-tions were important for any new launch or event whichneeded publicity. The Company had the practice of fea-turing the Company logo for airing TVCs with more than20 seconds. For such TVCs, prior approval from the Cor-porate Communication Department was needed. TheCorporate Communication Department would issueguidelines which needed to be followed for brand com-munications. Any PR campaign would be handled bythe Corporate Communication Department. The core val-ues of the Company quality, innovation and bestexperience to stakeholders were deeply ingrained intothe organizational culture.

The team from the ad agency and VP and his team neededto discuss whether to go ahead with the TVC. What shouldbe the future advertising strategy? Should the companycontinue an endorser strategy? The brand Sugar Free hadfollowed the transition from a diabetic drug to a tabletopsweetener to a fitness partner. So, how should the brandcommunication move forward? How can the 360 degreeapproach be applied to the Sugar Free brand communi-cations? What innovations can be brought in so that eachopportunity of brand interaction can be exploited for itsadvantage?

SUGAR FREE


Appendix 1: Global Artificial Sweetener Market2

Published by the Global Industry Analysts, ArtificialSweeteners: A Global Strategic Business Report reveals that aworldwide weight reduction effort is stimulating the$3.5bn global artificial sweeteners market, of which theUS and Europe currently make up 65 per cent.

For almost a decade, the sugar-substitute market was con-sidered in the thralls of choices between the pink, blueor yellow package. That is, SweetN Low (saccharin; in-troduced commercially in 1957), Equal (aspartame) orSplenda. Splenda was developed from sucralose by US-based McNeil Nutritionals and UK-based Tate & Lyle(T&L). Sucralose was discovered by T&L researchers in1976, and is now used in roughly 4,000 products.Sucralose is 600 times sweeter than sugar, compared withsaccharins 300 and aspartames 200 times sweetness.Splenda reportedly accounts for about a quarter of T&Lsprofits. McNeil Nutritionals is a subsidiary of US-basedpharmaceutical and consumer products firm Johnson &Johnson.

Aspartame is also the main ingredient in NutraSweet,which was introduced in tabletop, or package form, in1981, and then moved to carbonated beverages in 1983.

Five artificial sweeteners are approved by the FDA. Inaddition to saccharin, sucralose and aspartame, there isacesulfame potassium, also called Ace-K and marketedas Sunett and Sweet One, and neotame.

Patents for products and processes usually control com-petition for a limited number of years following introduc-tion and approval of new sweeteners, says Elaine Lipson,author of the Packaged Facts report. Market forces in-clude the shifting costs of competing sweeteners, the in-troduction of new sweeteners, emerging information abouthealth concerns such as diabetes and obesity, and shift-

ing consumer preferences and perceptions of safety.

In addition to taste and calorie count, current market driv-ers, notes Lipson, include ingredient awareness andwhether the product can be considered organic.

The percentage of US households identifying themselvesas users of sugar substitutes/artificial sweeteners hasvaried little since 2004. In spring 2004, 42.8% of thosesurveyed identified themselves as users of sugar substi-tutes/artificial sweeteners. That percentage increased to46.6% by spring 2007.

In 2004, 415 new products were introduced usingsucralose in food, beverage or personal care.

In early 2007, US-based sweetener company, Merisant,the maker of Equal, started a lawsuit against Splenda(McNeil & T&L) regarding advertising that stated Splendawas made from sugar and natural. Merisant arguedthat because sucralose is synthetically made by process-ing sugar with chlorine, Splenda cannot use those termsin its advertising. The case was later settled out of court,with McNeil stating that Splenda is not sugar.

The global sweetener market is currently having a com-pound annual growth rate of 3.7 per cent.

Other key factors driving the market include attempts tocreate foods for diabetic patients, a growing number ofpeople wanting to cut sugar intake, worries regardingdental care, and an increase in production of diet foodsand beverages, said Global Industry Analysts.

The global market for sucralose artificial sweeteners willallegedly grow the fastest, posting a CAGR of around 10per cent.

US Retail Sales of Artificial Sweeteners/Sugar Substitutes, 2003-2007, $/M

Category 2003 2004 2005 2006 2007 Change during 20032007 (%)

All sugar substitutes 316.20 353.7 357.2 366.5 371.4 17.50

Splenda (sucralose) 119.4 178.1 198.6 218.6 226.7 89.80

Equal (aspartame) 80.1 67.6 57.8 51 46 -42.60

SweetN Low (saccharin) 56.1 53.2 50.3 49.5 49 -12.60

NutraSweet (aspartame) 7.6 6.6 4.9 3.6 1.5 -93.40

Sweetleaf Stevia (stevia) 0.8 1.1 1.8 2.4 3.1 287.50

Source: Packaged facts/IRI (http://www.foodnavigator.com/Publications/Food-Beverage- Nutrition/FoodNavigator-USA.com/Financial-Industry/Obesity-concerns-drive-artificial-sweetener-market Accessed in October 2009).

96

This will be followed by the aspartame-based artificialsweetener market, which is most likely to go beyond the$3bn mark in 2008, expanding on its current 50 per centhold of the global market.

However, a category not faring so well is that of the sac-charin artificial sweetener market, which the report claims,could be linked to a study conducted in the 1960s thatfound that high doses of the ingredient caused bladdercancer in laboratory rats. Nevertheless, over 90 nations,including Canada, approve a restricted use of the sweet-ener following various studies conducted from 1977 to1991. However, many nations have banned saccharin-based sweeteners altogether.

In the US, the Food and Drug Administration (FDA) con-tinues to approve the use of saccharin, along with fourother sweeteners: sucralose, aspartame, acesulfame K, andneotame. It is also reviewing two new low-calorie sweet-eners alitame and cyclamate opening up the globalmarket for further competition, price erosion, and distrib-uted customers.

In terms of sweetener usage, new-age beverages, dairy

products, salad dressings, and salty snack foods repre-sent the fastest expanding markets for the sugar substi-tutes industry.

Across the globe, there are about 117 major players. Thecompetitive landscape in the global market is given inTable 1.

Table1: Competitive Landscape

Country No. of Players (includingdivisions/subsidiaries

U S 41

Japan 1

Europe 35

France 3

Germany 7

U K 8

Italy 1

Spain 4

Rest of Europe 13

Asia Pacific Excluding Japan 53

Latin America 1

Africa 2

Source: A Global Strategic Business Report, 2008.

Exhibit 1: Summary of Storyboard used Over Years for Sugar Free

Date Brand Product Product Description ExhibitsGroup Category

2008-08-08 Sugar Free Gold Foods Artificial The ad starts as Bipasha enters an event Ex-2Sweetener and is asked about the secret of her fit figure.

2006-12-05 Sugar Free Natura Foods Sweetener The film opens on Sanjeev Kapoor,, Ex-5the master chef, having his bed tea.

2006-04-10 Sugar Free Gold Foods Sweetener A woman busy with her household chores Ex-6asks her maid to go for Tai Chi class...

2005-11-11 Sugar Free Natura Foods Sweetener A man going his way suddenly stops on Ex-7seeing something.

2004-12-30 Sugar Free Pharmaceuticals Sugar Free A pair of feet rush up a street. Ex-8Sweetener

2003-12-23 Sugar Free Pharmaceuticals Sugar Free Raveena and Harsha make their way through Ex-4Sweetener the crowded airport hoping to be on time.

Source: http://www.afaqs.com/perl/search/search_storyboard.html?brand=Sugar%20Free

1 http://www.zyduscadila.com/index.html accessed in September,2009.2 http://www.icis.com/Articles/2009/05/25/9217338/artificial-sweeteners-market-to-change.html Accessed in October 2009.3 Trends in the US Market for Sugar, Sugar Substitutes and Sweeteners. (Packaged Food study.) October 2008, Accessed in 2009.

SUGAR FREE


Then, she makes the curvaceous figureagain which is actually a bottle of Sugar

Free Gold.

The ad starts as Bipasha enters an eventand is asked about the secret of her fit

figure.

She replies by making a curvaceousfigure with her hands.

The figure is then replicated at yogacentres.

We see people including it in theirworkouts.

Next shot, Bipasha comes out of a gymand reaches for her lemonade.

A waiter asks if she would like sugar in itand she says no.

VO: Apnaiye Sugar Free Gold aurkeejiye sugar kee unchahi problems ko

dur.

The ad ends as she says that it is SugarFree Gold which is her fitness secret.

Exhibit 2: Story Board of TV Commercial Aired in 2008

Sugar Free Gold Agency: Rediffusion-DYR

Exhibit 3: Pictures of Sugar Free Stand

98

Raveena and Harsha make their waythrough the crowded airport hoping to

be on time.

Just as they make it to the counter theattendant informs them that theyve

missed the flight.

However, with lady luck on their side, theattendant tells them, But theres another

one shortly.

With time on their hands, Raveenasuggests some tea, but Harsha goes for

coffee.

At the restaurant when the two stars areoffered sugar, together they jump up and

refuse, No Ill have Sugar Free.

As the two enjoy their drinks, Harshainforms Raveena, Do you know that

Sugar Free has only two per cent of thecalories of sugar.

In turn Raveena reminds him, And youknow we might miss our flight again.

MVO: Sugar Free, Less Calories, MoreFitness.

Source: TV Ad Indx/www.iBankLive.com

Exhibit 4: Storyboard of TV Commercial of Harsha Bhogle and Raveena Tandon (2003)

Sugar Free Agency: Rediffusion | DYR

SUGAR FREE


Exhibit 5: Story Board of Sanjeev Kapoor TV Commercial

Sugar Free Natura Agency: Rediffusion | DYR

The film opens on Sanjeev Kapoor, the master chef, having hisbed tea.

People look at him in surprise as they see the man having teawhile on a walk.

Cut to the shot of the chef enjoying his tea while having bath.

VO: Hum chai ke shuakeen logon ke liye jitni hi chai ho, utnihi kam. Isiliye I use Sugar Free Natura...

He continues having tea even on his way to office and thenlater in the lift.

...Meethas cheeni jaisi lekin calories bilkul nahin. Toh cheeniya Sugar Free Natura. Faisla Aapka.


100

Exhibit 6: Storyboard of 2006 TV Commercial

Sugar Free Gold Agency: Rediffusion DY&R


A woman busy with her householdchores asks her maid to go for Tai Chi

class...

...in her place. Following theorders, themaid is seen attending the class.

An executive enters the conference roomand tells his colleagues, Meri ek bahut

zaroori meeting hai. Tum log...

...mere liye jogging kar aao. Theexecutives leave the conference room

and are seen jogging in the park.

Cut to a very busy woman asking a fatman, Gaurav, mere liye aerobics ke

liye...

...jaaoge, please? The overweight figuredoes as he is told and is seen in the

aerobics session.

VO: No time to exercise? Make a startwith Sugar Free Gold. Din ke 500

calories...

...Kam. Tension khatam. New Sugar FreeGold. Super: Freedom from Calories.

SUGAR FREE


Exhibit- 7: Storyboard of 2005 TV Commercial

Sugar Free Natura Agency: NA


A man going his way suddenly stops onseeing something.

A display of an ad from Sugar FreeNatura reading...

...Made from sugar, tastes like sugar, buthas no calories. affects him with...

...great wonder. As he leaves we see otherpeople looking at the ad with amazement.

Exhibit 8: Storyboard of TV Commercial (2004)

Sugar Free Agency: NA


A pair of feet rush up a street. They hurry up a flight of stairs... ...and running down a passage, enter aroom and dashes towards a bench.

Finally sitting on a bench she throwsaway her shoes and stretches her feet.

MVO: Freedom means different thingsto different people...

...Sugar Free. Freedom from calories.Super: Freedom from calories.

102

A man lays his breakfast on the table andpulls out the chair. But he decides...

Exhibit 9: Storyboard of Equal

Agency: NA

Acknowledgment. The author wishes to acknowledge thesupport extended by Mr. Anand Deo, Sr. V.P. and Mr. NeerajHasija, G.M. Marketing, Consumer Product Division, Zydus

...against sitting and walks up to the otherend of the table with his toast and takes a

bite from it.

He strides down to the opposite end andsips his tea.

Back to the other side, he pops a slice ofapple in his mouth.

Super: Exercise helps control diabetes.Make the time...

...Presented by Equal low caloriesweetener.

SUGAR FREE

Preeta Vyas is currently working as a Faculty at the AdaniInstitute of Infrastructure Management, Ahmedabad and aVisiting Faculty at the Indian Institute of Management (IIM)Ahmedabad.She was a university gold medallist in B.Com(Statistics) and has taken an MBA (specialization in Market-ing) and a Ph.d in Business Management from Gujarat Uni-versity. She has more than three decades of experience in theMarketing Area at IIMA. She has taught courses like Market-ing Management, Advertising and Sales Promotion Manage-ment at IIMA and various other institutes in India as a VisitingFaculty. She has written a number of cases in Marketing which

are registered with the IIMA case unit. She has participated inseveral international conferences and presented research pa-pers in the US, Singapore, and IIMA. She has publications inthe areas of sales promotion, loyalty programmes, and mo-bile advertising. Her research interests are in understandingmarketing practices and marketing communication practicesof the Infrastructure Sector companies and developing mar-keting case studies .

e-mail: [email protected]

Cadila. Comments on the Case by Prof. Abhinandan K. Jainare also gratefully acknowledged.


Copyright of Vikalpa: The Journal for Decision Makers is the property of Vikalpa, Indian Institute ofManagement, Ahmedabad (IIMA) and its content may not be copied or emailed to multiple sites or posted to alistserv without the copyright holder's express written permission. However, users may print, download, oremail articles for individual use.

Documents

sugar free.pdf