Increasing profitability through Brand Purpose

Brand Challenge:

Earlier a part of the Haldiram’s family, Bikaji split and stayed back in Bikaner offering hyperlocal snacks which were popular in Rajasthan, UP and MP. Bikaji wanted to go national.

However, they faced 3 challenges:

  1. Lacked the positioning and reach compared to other brands like Haldirams who had better equity  because of years of marcomm advantage
  2. Lack of differentiation in the similar products’ brands especially when competing with brands with better distribution, reach and marketing prowess like Kurkure
  3. Snacking is hyperlocal. How does one create products that can take share of snacking across regions and states?

 

Adding to this, was the category challenge:

  1. Rise of western snacks and infiltration of heavy snacks like Burgers
  2. Light snacks like Tacos, Nachos and Cheeseballs start finding place on the kitchen shelves
  3. Rise of healthy snacking. Young wanted to remain body beautiful and snack healthy while the old wanted to be age, illness and disease conscious and snack healthy

 

The Solution:

Just brand positioning would not have helped gain unfair advantage in the market or even help in consolidating the existing market. We needed the power of BRAND PURPOSE for the brand to overcome the challenges and yet be profitable

 

The Consumer Tension that Wolfzhowl uncovered:

An inter-generational tug-of-war in snacking with the Older Generation feeling “Loss of native snacking leading to the loss of culture as snacking is seen as a form of continued cultural identity” and the Younger Generation feeling “lack of intimacy and an authentic story behind the snack in a mass-produced era”

 

The Cultural Fuel Wolfzhowl used to resolve this tension in the Brand Purpose

Youth are seeking tongue travel, authenticity and intimacy via food rather than just eating for taste or convenience

 

And hence the brand purpose:

We exist to help people rediscover the power, the health and the taste and entertainment of Indian snacking

 

The Results:

Wolfzhowl crafted Brand Purpose leads to profitability:

  • Direct growth in sales figures from 6.76 crore KG in FY 18-19 to 7.47 crore KG in FY 19-20 with a CAGR of 13.85%
  • Highest profits after tax for the first time in 5 years for the brand.
  • Increased earnings per share with the aim of announcing IPO in the coming years post purpose

Read the Annual Report of Bikaji to see how purpose led to profitability here