Mars Wrigley: Plans To Increase Market Share In India By FY25 The chocolate making company is banking heavily on the upcoming gifting season to increase its penetration in the Indian market
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With Galaxy Jewels, Mars Wrigley has introduced a premium gifting product in the Indian market, focusing initially on metro cities and tier I towns. However, that's not the only focus area of the company for the Indian market. In an exclusive interview, Nikhil Rao, chief marketing officer of Mars Wrigley, unravelled the company's R&D prowess to combat India's climate which poses a challenge for chocolate products due to high temperatures. He further shared insights into the company's distribution channels, urban rural ratio, plans in the premium segment, collaboration with reality shows and more.
"For India, nowhere else in the world, we have heat-resistant chocolate. If you look at the Galaxy tablets, or if you look at Snickers, it is a chocolate that melts at a higher temperature. So we invested in that R&D and made that chocolate possible. So it's got the same great taste, but it melts at a slightly higher temperature. For these products [Galaxy chocolates] we have not done that, we kept it in the pristine pure chocolate because we wanted to be the 100 per cent pure chocolate kind of thing. And fortunately for us a lot of the Indian gifting season falls in the winter months. Since most of the outlets are always air conditioned, the festive season will be taken care of."
Mars focuses on metro cities and tier I towns, with gradual penetration into tier II cities through a hub and spoke distribution model. The company has not yet ventured into rural areas. The company aims to expand its presence incrementally, reaching more outlets. The focus will remain on core products like Snickers, Galaxy and Boomer with limited but strategic innovation. Nikhil informed that about 90 per cent of the company growth comes from the core, 10 per cent is from innovation. "We refrain from innovating too much because by the time a new product reaches the end of a distribution line, the newness of the product becomes obsolete as the transition period is a minimum of three years. The chocolate category reaches out to 50 lakh stores, today we are present in 5 or 6 lakh stores. So we try to add a few outlets and focus on steady growth in FY25," stated Nikhil.
Cocoa prices have skyrocketed in recent months, reaching historical highs of nearly $10,000 per metric ton in March 2024. As per J.P. Morgan, the rise in cocoa prices is largely due to a global cocoa shortage. Climate change-induced drought in West Africa has ravaged crops, which contributes around 80 per cent of the world's cocoa output. The report claims that global cocoa supply will decline by almost 11 per cent over the 2023/2024 season. Mars Wrigley has managed to absorb the rising costs of cocoa beans through efficient processes and internal cost cutting measures. Any necessary price increases will be minimised to reduce the impact on consumers. Mars is expanding its product range with smaller packs, such as the Galaxy Flutes, priced at INR 10. This strategy aims to increase distribution and accessibility.
Mars recognizes that Gen Z consumers in India are open to global tastes and experiences. The company is experimenting with Indianized flavours for popular products to cater to local preferences while maintaining global appeal. To engage Gen Z consumers, Mars leverages digital and social media marketing, while TV advertising targets older demographics. The company collaborates with DDB, a creative agency, to develop impactful marketing campaigns. Recent successful campaigns include the Snickers ad with Rohit Shetty, which has been well received.
"For the Gen Z consumers, the world is their oyster. They want to experience and explore all flavours. While we have a portfolio of flavours and chocolates that we bring into India, and it's being loved by the consumers, we have also dabbled with Indianising some flavours like the Snickers Kesar Pista flavour," revealed Nikhil.
Globally, Mars is experimenting with AI in marketing, having set up an AI council and created a playbook for its use. Data from sources like Nielsen, Kantar and Bespoke research informs creative decisions, ensuring a balance between data driven insights and creative intuition. "We are as a company quite careful about AI because there can be a lot of copyright issues. We have set up an AI council and there's a playbook on how to use AI."
Galaxy Jewels had previously tied up with BigBoss for sponsorship. The company is exploring partnerships with other reality shows to enhance brand visibility. "We're talking to a lot of them and it depends on which one is the right fit and where we can get a proper financial understanding." Mars is open to brand extensions and collaborations. Although no partnerships have been established yet for Galaxy Jewels, the company is considering future opportunities.
