ANSOFF Assignment; Market DEvelopment, PDF

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Summary

Analysis for MuscleBlaze Company. includes marketing strategy and creative recommendations...

Description

MuscleBlaze Name: Devendra Mittal Student Id: 219100049

About: Established in 2012, MuscleBlaze is an Indian Brand that deals in sports nutrition supplements. MuscleBlaze offers quality nutritional supplements like whey protein, BCAA, mass gainer, weight gainer, fish oil, multivitamins, fat burners, etc. at affordable prices.

SECTION ONE: Current 6Ps of the Brand CURRENT 6Ps DETAILS Target Customers is young population (18 – 35) from middle income to wealthy households with higher disposable income. The reside I both largely in Urban areas. The customer is increasing adopting fitness as their lifestyle People Routine. This is evident from Google trend data for Whey. The size of the Market is worth USD $200m1. A high achiever athlete possesses High reference power. Brand position themselves as experts of dietary experts and understands life and challenges. Nonetheless, it 2celebrates the ‘never-say-die’ attitude of sports enthusiasts and supplements their ambitions. Thus, they carry functional claims for their product. Their Ad Campaign (ZHM, refer Position

promotion section) campaign had 1 million digital views within 24 hours of launch. Sales/ Revenue, the $100 Million3 revenue company has been growing at 50% year-on-year. Their Global Net Sales (2020) is US $6.5m4. The brand is

Product

wanting to touch the USD 100 Mn. mark. Comprehensive range for wellness and fitness needs. Their products range

5

include Protein supplements, Mass/ weight gainers, Pre/Post workout supplement, Protein Bars, BCAA, Weight loss supplements, Peanut Butter, Fish Oil, Fitness Accessories. Moreover, it has undertaken following 1 https://www.nutraingredients-asia.com/Article/2020/01/16/Setting-the-pace-Indian-sports-nutrition-firm-MuscleBlaze-sees-annualsales-jump-by-25 2 https://brandequity.economictimes.indiatimes.com/news/advertising/muscleblaze-narrates-the-story-of-every-ziddi-fitnessenthusiast-in-its-new-ad-campaign/63498053 3 https://www.entrepreneur.com/article/391182 4https://ecommercedb.com/en/store/muscleblaze.com#:~:text=In%20the%20Food%20%26%20Personal%20Care%20market%20in %20India%2C%20muscleblaze.,US%241m%20in%202020. 5 https://www.muscleblaze.com/mb/AboutUsMB.action P a g e 1 | 14

innovations: a) patented Scoop-on-Top design, b) MuscleBlaze’s Bio zyme Whey for Indian consumers to enhance protein absorption It has provided assurance by introducing industry-first concepts: a) SMS based product authenticity mechanism, b) protein test certificates from NABL certified labs, and c) clinically researched products – At Labdoor (a reputed global supplement testing agency) and CTRI (clinical trial registry body), d) New Products6, Immunity aiding supplementation as well as ready to consume products which promote healthy nutrition in addition to our existing core set of products With regards to the product range, muscleblaze.com specializes in the “Food & Personal Care” category, particularly in the area of “Personal Care”. Muscleblaze operated by Bright Lifecare Pvt., Ltd., is an online store with nationally focused sales. Its eCommerce net sales are generated almost entirely in India. Its source whey externally, and process, pack and sell under their brand name. Price

The online store was launched in 2012. The greater market competition – driving prices down. A number of markets newcomers have now come in India. The product are categories has Value Added Derivative Product (This is because the whey protein is a derivative of dairy) and has a high gross margin of 45-50%.

6 https://economictimes.indiatimes.com/industry/cons-products/food/indias-top-home-grown-sports-nutrition-

brand-muscleblaze-completes-8-years-of-its-journey/articleshow/77714466.cms? utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst P a g e 2 | 14

Through Ads Campaigns: Hard-hitting digital campaign – Ziddi Hoon Main (ZHM) (I am Stubborn). Also, it is embarking to make national #MakeinIndia and #FitIndia mission7 to the next level. It believes "Zidd" (Stubborn) will strike an instant chord with consumers. Its Ads show diversity of people who identify as fitness enthusiasts – Women, disabled, senior citizen as well Through Fitness Influencers/ Celebrities: Partnered with Neeraj Chopra, the Olympian Javelin Thrower; Wrestler Vinesh Phogat; Bollywood Actor Vidyut Jammwal as brand ambassador, hence leveraging their high Promotion

reference power. Nonetheless they are extending helping hand to all the upcoming & budding athletes, promoting a culture of athletic performance with fitness and nutrition. Through Personalize Online support: The online portal provides daily consults and advice from a nutritionist in terms of helping people pick up the right nutritional products. Through ad-hoc awareness Covid has increase the awareness about preventive care and increased the demand for multivitamins. The brand is leveraging the opportunity to push

Place

their product to such consumers. Omni Channel presence8: 1. Online - 3 partners - Healthkart, Amazon and Flipkart (50% of sales come through its own channels and 50% from outside of the

7 ttps://brandequity.economictimes.indiatimes.com/news/marketing/muscleblaze-ropes-in-vidyut-jammwal-as-brandambassador/79385988 8 https://www.muscleblaze.com/mb/tradePartners P a g e 3 | 14

HealthKart channels like Amazon, Flipkart) 2. Offline – 90 Physical Stores The omnichannel platform today operates 90 physical stores. 

Present in all states and across tier I & II towns.

SECTION TWO: MARKET PENETRATION Content Details ◦ People

 For people no change from what is mentioned in Section 1. ◦ Positioning

 For people no change from what is mentioned in Section 1 Higher protein per scoop and better pricing protein per scoop (BCAA) ◦ Product

 Drive speed to market by optimizing manufacturing supply chain. The fast delivery model will drive in-home consumption, influencing family members  Example: UK sports and nutrition brand, Myprotein has formed a strategic partnership 9 with MSM Retail Pvt Ltd to enter the Indian market. The company’s warehouse and distribution network in India has reduced the average wait span for its customers from 25-30 days to 3-5 days. In India as well, Myprotein created an official warehouse in Gurugram to deliver the same assurance of quality and authenticity. This helped to reduce delivery processes as well as lessen the delivery time for customers. ◦ Price:

 Gradually build capacities for vertical integration and manufacture whey locally. The brand should shift focus from souring whey externally to producing internally to achieve scale.

9 https://www.insidesport.in/uk-sports-nutrition-brand-myprotein-enters-india-with-msm-retail/ P a g e 4 | 14

 Example 1. Parag have invested in manufacturing facilities and have launched nutrition brand, Avvatar in 2018. 2. Brand – Myprotein - is fully vertically integrated inhouse proprietary technology, content, fulfillment, inhouse marketing, new product development and production.  Decrease price by ~10% to increase reach of the product. MuscleBlaze 1 Kg (2.2 lb)

Avvatar 1 Kg (2.2 lb)

Optimum Nutrition 2 lb

33 2999 91

29 2,380 82

29 2,699 93

30 25 5.5 Link

35.0 24.0 7.8 Link

30.4 24 5.5 Link

Servings Price (Amazon) INR/scoop Per Scoop (gms) Size Protein BCAAs Product Link Table 1: Price Analysis with Competitors

As per the above table, Avvatar is priced ~10% lower per scoop versus leader ON and MuscleBlaze. The current retail price of MuscleBlaze whey protein is fairely high, targeting mainly the middle and upperclass population. Thus, by decreasing prices, MuscleBlaze can target the neglected lower-class customers. Expensive ingredients from various products such as blueberries, quinoa, pumpkin seeds can be replaced with low-cost alternatives.  Example Low-cost practices can be learned from Startup- Hungry Foal10 ◦ Promotion

 Increase awareness about the product usage and break myths. (People still think it as a steroid rather than a derivative of dairy) 11  Example 1. Parag is working on increasing awareness in India about the products

10 https://www.thebetterindia.com/238207/hungry-foal-oats-healthy-snacks-nutritious-muffins-energy-bars-buy-online-startupgurugram-food-malnutrition-women-ang136/ 11 FRPT- FMCG Snapshot P a g e 5 | 14

2. ON has launched a mass variant targeted at the wider public, with more country specific products in the pipeline.  Partner with fitness trainer to promote local demands  Example: Parag has tied up with Shivoham12, celebrity fitness trainer, for certification classes for trainers. Place

◦

 Undertake Strategic Partnerships - tying up with e‐commerce partners, premium sports gyms, nutrition outlets and e‐portals. Influencers play an important role in establishing health-related brands. Whether healthcare professionals, Key Opinion Leaders or influencers in the family, convincing influencers is one of the key milestones in establishing a legit promise.  Example Avvatar is Tying up with gyms, educating gym trainers and owners who are key influencers in this category. It has been providing free sachets to gym trainers to increase outreach of the product. Creative 13

Engage young audience with digital media that showcase convenience, sense of community, and fun.

I)

Social Media content: Create content such as healthy recipes, fitness plans, and “how to” lifestyle tips to keep wellbeing on the top of the mind of shoppers.

II) Social Media Communities: Create fitness communities that motivate and promote product and health. These are generally fun and convenient to shoppers. Some innovate way would be to create a WeChat community who encourages to purchase products or offer feedback through personalized gamification techniques. III) Have Regional Influences: Create a community of regional influencers that shares knowledge related to fitness and provide guidance to consumers. Nonetheless they promote the brand at the last level. The 12 Shivoham runs a complete fitness program which includes fitness of body and mind. He has been in the fitness industry for almost a decade and opened the first CrossFit box in India. 13 https://www-warc-com.ezproxy.library.yorku.ca/content/article/warc-wwi/whats-working-in-health-and-wellness-2021/engb/138931 P a g e 6 | 14

regional specific coupon code incentive shoppers to buy the product and simultaneously provide motivation to regional influencers, increasing the demand of the brand.

SECTION THREE: MARKET DEVELOPMENT Content Details Basis Figure 1, Apart from North America, Asia pacific region is showing a high increase in supplement market. Hence, the brand should target international growth market in Asia pacific region. As delivering to North America market will increase the cost to company. ◦ People:

Figure 1: Value of the Dietary Supplements Market Worldwide

 For people no change from what is mentioned in Section 1 ◦ Positioning

 For people no change from what is mentioned in Section 1 However everyday consumers don’t understand science, even when it's narrated by experts. Hence make the brand proposition and promise relevant in their common language. ◦ Product

 Local flavor of the product shall be added in the product mix

P a g e 7 | 14

Figure 2: Innovative kulfi flavor specially in India

 Example: MyProtein strength is localization14 and it has done the same and created products spe the Indian customers. The brand also claims to be among the world’s most powerful digital-first the active engagement of 6.5 million customers in more than 70 countries across the globe. ◦ Price

 Price should be competitive in the market ◦ Promotion:

 Ensures location-specific customer promotion via ambassador and affiliate networks. The following methodology across various life stage of consumer should be adopted. Customer

Recommende

Best practices for digital

Journey

d Message

content/on Veeva CLM

Sample Content

type Create a moment of realization or help consumers Need

Inspire/

understand need or problem that the brand solves.

Inform

High impact to kickstart brand journey in a new market.

Awareness

Educate/ Inform

Create interactivity in content - each consumer has different profiles and challenges, so show then the range of products available for them

Audience-targeted teasers, banner ads, gifs, videos, static posts Influencers, Fitness Challenge, Case-study, newsletter, webinar invites,

Access &

Educate/

Address and resolve key customer concerns rather

email, survey website, video library, Chat

affordability

Engage Engage/

than sweep them under the carpet. Support the customers in addressing the concerns

bots, 3D/AR displays, Brand functional content,

Support

and challenges with respect to the brand.

FAQs, sampling, trials,

Experiment

◦ Place:

 Push products through online channels to reduce costs. Sports Nutrition via ecommerce is growing at 20% pa. globally. Hence a promising channel.  Push products through local fitness enthusiast. (This will be vital channel to approach target customers) 14 https://www.insidesport.co/uk-sports-nutritionbrand-myprotein-enters-india-with-msm-retail/ P a g e 8 | 14

Brand shall establish cooperation with fitness enthusiasts who will act as product representatives. Brand shall offer marketing, sales, and finance training to facilitate their work. This way brand will be able to approach customers in different local areas through their trusted ambassadors.  Example: Figure 3: MyProtein driving demand through local fitness enthusiasts

Creative Details 15

To make a mark in the new market, the brand should introduce a new lexicon into popular belief, change brand

perception to establish entire range of benefits and drive trial among people to increase early penetration. Specific objective of campaign would be: 

Awareness of and education on the importance of “building of muscle strength' for active life.



Trial generation to increase brand penetration



Acquisition of new customers and share from other subcategory – the lowest-hanging opportunity.

Campaign Name: Muscle Math: Do you have the muscle strength? 1) Implementation Plan – Phase I - Introduction to new lexicon I) Muscle Math’s digital film: Using slice-of-life situations, the film highlighted the number of muscles required to perform simple everyday tasks that they either love doing or are required to do. It further exaggerated the importance of muscle strength in doing what you pleasure.

15 https://www-warc-com.ezproxy.library.yorku.ca/content/article/warc-awards/ensure-abbott-ensure-muscle-math/en-gb/131461 P a g e 9 | 14

II) Digital banners/social ads: Key visuals leveraging various daily-life scenarios that needed muscle use; these reinforced the film message on the importance of muscle strength. GDN, YouTube, Facebook, SEM and Programmatic were used to optimize reach. 2) Phase II – Educating customer on benefits of the products I) In-mall roadshow and consumer engagement: First, a concourse event took place at mall. The event promoted the product differential and engaged consumers with games where they could test & assess muscle strength. II) Strength run: A consumer activation through a 2km run that attracted more than 400 participants. The objective was to make the participants understand the state of their own muscle strength. Samples of Ensure Gold were distributed at the event and the event itself attracted PR coverage.

SECTION FOUR: PRODUCT DEVELOPMENT Content Details ◦ People:

 For people no change from what is mentioned in Section 1 ◦ Positioning

 Brand shall position itself on promoting Vegan. It should demonstrate its positive impact on environment. These is a rise of users who want to be Vegan. Infact, 63% of the Indians want to convert purely to vegan. 16  Example: MyVegan, world first Clear Vegan Protein, is a top 4 SKU within the THG brand family. It has redefined pea-protein from a poorly soluble powder to fully soluble, clear and clean tasting product. It is very well demonstrating its positive impact on the environment, given pea protein’s sustainability. 16 https://vegconomist.com/market-and-trends/india-sees-huge-growth-in-vegan-options-as-plant-based-eatingP a g e 10 | 14

Figure 4: MyProtein's Vegan Protein SKU

◦ Product

 Enhance flavor capabilities with more customization’s strategy  Build capacities to source/ produce Vegan Product such as Pea Protein These strategies in product formulations and the adoption of new sustainable technologies will cater to the new demand of customers, requiring conscious consumption and production. ◦ Price:

 Undertake premiumization strategy for products. Most products are priced at a premium to the base product range. As consumer preferences evolve, the company aims to cater to a larger set of consumers, which is envisaged to improve its realization and margin ◦ Promotion

 Changed packaging to promote plant-based products and sustainable practices adopted by the company Packing is an effective way to showcase brands vision and premium quality. This will help increase margins of the product. 50% of the time sustainability of packaging plays an important role for consumers. Moreover, such packaging favors high level of price which is accepted by consumers.17 ◦ Place

 For place no change from what is mentioned in Section 1

SECTION FIVE: DIVERSIFICATION Content Details ◦ People

 Refocus total addressable market. Target age group to be from 18 to 60. With the addition of new technology, elder population can be served, and their needs can be identified. ◦ Positioning: 17 https://www.sti-group.com/news/article/sustainability-of-packaging-important-for-customers.html P a g e 11 | 14

 Change positioning from the online partner in sports nutrition to a family of brands targeting adjacent market segments in the wider wellbeing industry. ◦ Product:

 Build conversational artificial intelligence (AI)-enabled nutritionist to support consumers in tracking daily fitness requirement and providing right product recommendations. 

Example

18

HealthyfyMe developed Ria under the codename

‘Project Amadeus’ and uses key learnings obtained from HealthifyMe’s

150

million

tracked

meals

(20

billion

+

Figure 5: A Chat with AI based nutritionist Ria

macro/micronutrients) and 10 million message exchanges (1 billion + words) between coaches and clients. ◦ Price

 Subscription based pricing model should be implemented with the product. Example: HealthfyMe’s subscription plan ranging from 500 per month to 2000 per month, provides a tailored program designed to help achieve users' fitness goal, the app also sends users notifications in the form of tasks to log meals, exercise or read a health-related article, moving into the realm of being a coaching.19 ◦ Promotion:

 Promote digitization as another integral part of health and fitness ◦ Place:

 Building a sense of community and product ecosystem though Apps, curated content and digital m...