• Sales in the snacking category have grown more than six-fold from 8,000 crore in 2004 to 47,000 crores in 2013.
  • India’s tier 1 towns, the rest of urban, and rural areas offer the most potential in terms of growth and opportunity when it comes to snacking.
  • Products that talk about strong taste and texture cues and woven with appropriate emotional insight do better than those that don’t.

The global recession clearly hasn’t had an impact on the average Indian’s taste buds. Snacking is on the rise. Increasing disposable incomes, a need for convenience from fast-paced lifestyles and a cultural tradition of snacking between meals have fuelled explosive growth in this sector. From a modest 8,000 crores in 2004, the market today stands at 47,000 crores—more than six times the amount a decade ago!

And it should only continue to grow. Consumers’ changing dietary habits and willingness to try new things are pushing these numbers even higher. In addition, children are having more say in buying decisions. As a result, this unexpected growth is not isolated to urban areas. In terms of opportunity, tier I towns, the rest of urban, and rural areas are the ones that offer the most potential for retailers and manufacturers, fostering our belief that marketing focused on these areas will drive growth.

Something To Chew On…

The average consumer seldom realizes the amount of thought that goes into his bag of chips or box of biscuits. But if you’re a player in this sector, you probably know the very real danger of a perfectly good product being rejected by the market. A product being taken off shelves is every manufacturer’s nightmare.

Why do some products succeed while others fail? We have studied and analysed more than a hundred snacking initiatives and found that the key lies in building a successful proposition.

Our studies show that creating a path-breaking concept in snacking is no easy task. As a matter of fact, creating a winning proposition in the snacking space is observed to be more difficult than other foods. So what are the factors that will support and amplify your concept? A concept or proposition is generally made up of the below key factors:

Headline: What is your key differentiator? E.g., “The world’s best biscuits now in India!”

Reason to believe: What will build consumer belief in the benefits of your product? E.g., “Crunchy and tasty snacks made from healthy ingredient X.”

Insight: This will tie in with benefits to the consumer. What’s in it for them? E.g., “I want to stay fit and in shape. And I love having tasty snacks. I wish there was a tasty snack with less fat.”

Pack and imagery: The look and feel of your product packaging is what will differentiate it on shelves.

Tagline: What will build recall in the consumer’s mind when out shopping? E.g., “No one can eat just one!”

While these factors form the basis of a proposition for any industry in any country, knowing your market is essential. When it comes to snacking, however, Indian consumers have unique preferences and habits that retailers and manufacturers should understand to ensure success.

Taste Is The Biggest USP

Keep it simple. Don’t focus on more than two benefits. Consumers are focused on taste and texture and while ‘health’ could give your proposition an edge, you need to ensure it never comes at the expense of ‘good taste. In fact, when it comes to salty snacks, taste is a non-negotiable measure.

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