#1 How Too-Yumm found its place in a crowded snacks market

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As per a 2019 Neilsen report, India has a ₹28,000 crore (3.7 billion USD) salted snack market. Pepsi Co’s Lays and Kurkure dominate this market followed by a fast-growing ITC’s Bingo. Then there are few more players like Haldirams, Yellow Diamond (Pratap Snacks), Parle’s Hippo, Monaco Smartchips, and a dozen other smaller brands.

In such a competitive and densely populated market, RP Sanjeev Goenka (RPSG) Group’s brand Too-Yumm, a new entrant, has been a runaway success. How did the 2-year-old brand manage to differentiate its products and create a name for itself?

Viewing Too-Yumm’s marketing strategy through 4Ps

1. PRODUCT: Too-Yumm found the perfect sweet-spot

Given the huge brands that exist in this category, being a me-too brand would not have helped. They needed to try something different in order to make an impact.

While studying the different types of customers, Too-Yumm realized that the young and middle-aged customers (15 to 35 years of age) from larger cities were becoming health-conscious. These folks were trying to avoid fried food (or at least pretending to :P), joining gyms and were worried about their increasing waistline.

Too-Yumm was not the first brand to realize this. Quite a few players had attempted to be the ‘healthy snack’ for India already and failed.

  • Saffola Zest: Saffola tried to extend the ‘low-cholesterol’ image of its oil to create a snack. But it failed to deliver on taste.

  • Lays Baked: Promoted itself highlighting it had 65% less fat failed as well because of bland taste

  • Parle Hippo: They managed to create a buzz initially, with stores running out of stock. But demand fizzled out with time as the taste was not good enough like regular snacks

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The above three brand stories would have been very helpful for Too Yumm to decide on the ‘product attributes’ – the points on which a customer compares products. And one attribute was very clear to Too-Yumm: Taste. Taste was something that could not be compromised. Too-Yumm’s insight was to create a healthy snack that tasted as close to the traditional snack as possible.

Based on this insight, Too-Yumm created products that balanced taste and health like “Tandoori Foxnuts” and ” Desi Tadka Wheat Thins”. These variants were baked instead of fried (a healthier option) and at the same time spicy/salty instead of bland (a tastier option).

2. PROMOTION: A relevant & popular face for the product

After having finalized the product, it was essential to communicate the combined health and taste benefit of the product to consumers. Also, being a new brand, they needed a face whom the Indian consumers can connect to. Too-Yumm roped in Virat Kohli for the promotion. It is said that he himself tried the product for 2 months before coming on board. Having Virat, a fitness icon resonated well with the health image of the snack. The product even had his image on the packaging for improving recall.

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Advertisement efforts were heavily focussed on TV to create mass awareness. The TV ads were funny and right on point. One of the ads even shows how Too-Yumm is exactly similar to a normal fried snack but is also healthier at the same time (see pic below).

Too-Yumm also promoted the brand in digital channels through a collaboration with Amazon Prime Video. The snack was shown as the sponsor of the Cricket Power Play league in the show ‘Inside Edge’. The idea was to promote Too-Yumm as the healthy snacking option while binge-watching.

3. PRICE: Affordable for many

Initially, Too-Yumm was launched in larger pack sizes with prices between ₹20-40 (0.3 to 0.6 $). But they soon realized they needed to have smaller packs with lower prices to be accessible to a larger number of customers. That’s when they launched the ₹10 (0.12 $) and ₹5 (0.06 $) packets. And it worked. The ₹5 pack now comprises 55% of their total sales (by volume) in the snacking category. ₹5-10 (0.06 $ to 0.12 $) packs also put Too-Yumm in the same price range as that of their competitors.

With a larger variety in pack sizes and price points, Too-Yumm is able to cater to customers from different economic segments.

4. PLACE: Large packs, Large stores. Small packs, Small stores.

Too-Yumm first started selling in metro cities (Tier 1) at ‘modern trade outlets’ (the large supermarket chains like D-mart, Spencers, and Star Bazaar) and e-commerce sites (Amazon). With the higher price point at the beginning, these were the right places to target the urban health-conscious customer with higher spending power.

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After the introduction of smaller packs, Too-Yumm expanded to smaller towns (Tier 2) by making themselves available at neighbourhood kirana stores (‘mom & pop stores’). In the future, they plan to expand to even smaller towns (Tier 3).

They are also present in international markets – Dubai, Singapore, Nepal and Oman which have a significantly large Indian origin customer base and similar tastes. In total, they are present in around 3 lakh outlets.

On track to be a ₹600cr brand by the end of this year

For a relatively unknown brand in an intensely competitive market, Too-Yumm has come a long way. Started with a simple insight that consumers don’t consider tasty as healthy, they created a good product, chose the right brand ambassador, learned their lesson in pricing and ensured extensive distribution of their product.

Too-Yumm kicked-off with sales of ₹50 lakhs (70K $)/month (🤯) and reached ₹5 crore (700K $) mark in just 3 months after their first ad campaign. At present, they are on track to clock sales of ₹600 crores (80 million $) in 2020. By 2025, they intend to become a ₹10,000 crore (750 million $) brand.

This post turned out to be a little longer than a snack. But we hope you found it useful. Do let us know your thoughts by replying to this email.

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Vivek Raju
Vivek does research, storyboarding & visualization at Deck Rooster where he helps entrepreneurs create and articulate their investor/sales narrative.
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