FMCG firms root for local flavour

Local is the flavour this festive season for the fast-moving consumer goods (FMCG) firms, which are trying to lure customers with localised campaigns and localised items in their product portfolios. For example, Godrej Consumer Products has added new category of sandalwood and green soaps for its south Indian market as sandalwood is popular in the south.

Similarly, GlaxoSmithKline Consumer Healthcare (GSKCH) launched Asha, a milk food drink in Andhra Pradesh, while Nestle is promoting special Maggi noodles for Mumbai's slums and Coca-Cola has launched a powder-based beverage called Vitingo for the Orissa market. Even coffee chains like Barista have started serving idli-sambar with coffee in select south Indian outlets.

"It's better to introduce products for specific markets. We are working on introducing local products in our other categories as well to suit the local demand," Tarun Arora, executive vice-president (marketing), Godrej Consumer Products, said.

Another FMCG company CavinKare has added an entirely different product base for its shampoo brands with Soapnut or Reetha for Andhra Pradesh, Thali leaves for Kerala and Shikkakai for the Tamil Nadu and Karnataka markets.

According to market research firm IMRB, as many as 140 products, which were customised for specific regions and consumer segments, entered the FMCG market between January and August this year. The firm claims that these products have helped the companies to increase their market shares in these markets.

"Launching products keeping in mind the local taste and uses always pays in the long- run," C.K. Ranganathan, chief executive officer ( CEO), CavinKare, said.

According to experts, localisation helps companies to connect with customers in a better way.

That's why companies like ITC, Future Group, Nestle and Hindustan Unilever Ltd (HUL) are all trying to add local flavour to their product categories.

HUL, for example, has added local flavour to its tea brand Brook Bond called Red Label Natural Care. It now comes with flavours of ginger, cardamom, tulsi, tea and other spices to suit various regional tastes.

HUL has also introduced a range of local flavours to its popular Knorr soup category to suit the taste buds of different regions. So there is Vegetable Hara Bhara , Chicken Malai Tikka , Tomato Chatpata , Tomato Makhani and Corn Mast Masala , to name a few.

Even Nestle has introduced a variety of local flavours to its instant noodles brand Maggi to make it more appealing to local tastes. " Indians have varied tastes. So, one flavour is not enough to cater to all regions. It is always good to add more regional flavours in the product categories. It works," Antonio Helio Waszyk, chairman and managing director (CMD), Nestle India told Mail Today during a recent event.

The firm is planning to invest ` 1,000 crore to add more Indian flavours in its product categories, including in Maggi.

Future Group is already adding specific regional products for various regions under its Ekta Brand.

It is not just the products, which are getting local. Firms are trying different promotional campaigns for various regions.

For example, Dabur has roped in Bhojpuri actor Ravi Kishen to promote Dabur Chyawanprash in UP and Bihar, through onground activities as the region contributes almost 40 per cent to the overall sales of the product.

Coca-Cola plans to use the local Warli art as part of its ` 25- crore promotional campaign this festive season to cater to markets like Mumbai, Pune and Ahmedabad.