Mars Wrigley, the confectionery giant behind beloved brands like Snickers and Galaxy, is strategically increasing its media investments in the digital and quick commerce (q-comm) spaces, according to the company’s Chief Marketing Officer (CMO), Nikhil Rao. This move reflects a significant shift in their marketing strategy to better connect with younger audiences and capitalize on the rapidly growing online and on-demand consumption trends in India.
Rao revealed that Mars Wrigley is moving towards a more balanced media strategy, with their spending now almost equally split (50:50) between television and digital platforms. This marks a considerable change from the previous year’s 70:30 TV-to-digital ratio. This strategic realignment aims to enhance engagement with Gen Z and Gen Alpha consumers, who are increasingly spending their time on digital platforms.
Interestingly, Mars Wrigley has consciously decided to steer clear of advertising during the high-visibility Indian Premier League (IPL) cricket tournament. Instead, the company is focusing its investments on quick commerce platforms like Blinkit, Zepto, and Swiggy Instamart. This targeted approach has yielded impressive results, driving over 60% year-on-year growth in their quick commerce segment. Rao highlighted that while traditional trade still accounts for the lion’s share of their revenue (70%), e-commerce and quick commerce are demonstrating strong traction, currently contributing about 10% and holding a significant market share within these channels.
Mars Wrigley’s chocolate segment has witnessed a robust compound annual growth rate (CAGR) of 14-15% over the past five years. This growth is largely attributed to their premium portfolio, featuring popular brands like Snickers, Galaxy, and Bounty. Rao pointed out that their chocolate revenue is heavily concentrated (90%) in metro and Tier 1 cities, aligning with the premium positioning of these brands. However, their Boomer gum, a mass-market Re 1 product, enjoys widespread availability even in the smallest villages, showcasing the company’s ability to cater to diverse consumer segments.
While Mars Wrigley continues to innovate within its core brands, introducing products like Snickers Peanut Brownie and Boomer Lollipop, they are also mindful of local preferences. Rao mentioned their willingness to experiment with Indianized flavors, citing the example of Snickers Kesar Pista.
However, the company has adopted a cautious approach towards sugar-free chocolate variants, citing concerns about compromised taste. Instead, their strategy focuses on promoting portion control through shareable packs of their existing chocolate brands and offering their globally recognized sugar-free gum brand, Orbit, to cater to health-conscious consumers.
Rao highlighted the evolving nature of the Indian consumer, noting their increasing willingness to experiment with food, including fusion products blending chocolate with bakery and global flavors. He also emphasized the growing trend of consumers shopping across multiple channels, underscoring the importance of a strong presence in both digital and physical spaces.
By strategically increasing its media spending in digital and quick commerce, Mars Wrigley aims to tap into these evolving consumer behaviors, strengthen its brand engagement with younger audiences, and further fuel its growth in the dynamic Indian market.
Summary:
- Mars Wrigley is increasing its media spending in digital and quick commerce, shifting from a predominantly TV-focused strategy.
- This shift aims to target younger consumers and capitalize on the growth of online and on-demand shopping.
- The company is seeing strong growth in its premium chocolate portfolio and within the quick commerce channel.
- While open to flavor innovation catering to Indian tastes, Mars Wrigley is hesitant about sugar-free chocolate due to taste concerns.
- Indian consumers are increasingly experimenting with flavors and shopping across multiple channels, influencing Mars Wrigley’s strategy.