No one strategy for all BRIC countries, says paper

By Ankush Chibber

- Last updated on GMT

BRIC by BRIC: Building new strategies is key in new markets
BRIC by BRIC: Building new strategies is key in new markets
Food and beverage makers should be prepared to move away from the conventional marketing strategies when it comes to countries like India and China, a white paper from UK-based Healthy Marketing Team said.

According to the white paper, to succeed in the emerging BRIC (Brazil, Russia, India, China) markets, innovations in food and beverage industry must reflect the fast changing aspirations of the consumers these markets.

The paper, published in the journal, AgroFood Industry HiTech​, warned that, while the BRIC markets present a tantalising market prospect for any company or brand with global ambitions, a simplistic, fit all solution is unlikely to succeed across the countries like China and India.

Branding is key to the innovation process in countries like India and China, suggested the UK-based group, because of the enhanced significance of brands as a standard of good quality.

Food and beverage makers should be prepared to reshape their brand offers to fit into consumers’ expectations from the category, the paper suggested. It cited the example of Coca Cola, which diluted Minute Maid’s juice content and re-formulated the drink to the taste of the Chinese consumer.

Since its launch in2006, Minute Maid has become Coca Cola’s first brand from an emerging market to reach the US$1 bn sales mark, the paper said.

Food and beverage makers should also be prepared to innovate and create brand value by leveraging and fitting into established habits and category codes, the white paper suggested.

The paper cited the example of malted health food drinks in India, which have leveraged the cultural significance of milk as an essential drink for growing children and established their own significant nutritional quotient.

“As a category, malted health drinks have grown steadily over the past five years in India due to the world’s largest under 14 population and the Strivers mindset that sees parents stretching to invest in their children’s future,”​ the paper said.

According to the paper, the category has kept pace with changing aspirations of the growing urban middle class, going from milk substitutes to milk taste enhancers to milk additives that give children an edge in performance.

The white paper identified five basic innovation strategies that are effective in creating both brand and consumer value in food and beverage market, including leveraging hidden nutritional assets, new category creation, new segment creation, category substitution, and the functional foods make-over.

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