Bikaji’s Neha Rao on the company’s advertising strategy and consumer engagement, as well as expanding into new categories – Brand Wagon News

In conversation with BrandWagon Online, Neha Rao, VP Marketing, Bikaji talks about advertising plans, launching his new advertising campaign with the actor Amitabh Bachchanand its growth in the sweets sector, among others. (Edited excerpts)

What was the idea behind your new campaign “Bikaji Khao, London Khao” and how effective is it in terms of customer acquisition and sales?

We have always been open to the media and are one of the few in our industry that actively advertises when many competitors do not. Previously, we focused on building brand awareness through brand ambassadors and campaigns rather than connecting directly with consumers. Our slogan “Amit Ji Loves Bikaji” is popular and its memorable appeal continues among consumers.

We are now taking a step towards direct consumer engagement with a campaign called ‘Bikaji Khao, London Khao’ where participants have a chance to win a trip to London. Everyone gets rewarded (not “better luck next time”) in a play-and-win format with cashback of Rs 75 or Rs 100, which is significant compared to the prices of our packages. For example, you can get cashback of up to Rs 100 for a 400 gram pack and also Borosil vouchers and other prizes such as televisions.

Our focus on the impulse and family pack segments, especially on products priced at Rs 20 and above, has helped build a loyal customer base. Partnering with family brands such as Borosil adds to the appeal as our supporters are valued in this campaign which aims to reward them for their support.

Consumers may not feel motivated to participate in such campaigns because these rewards seem unattainable. What was the consumer response to this campaign and did it live up to expectations?

When planning the campaign, we focused on ensuring that customers perceived these prizes as realistic and achievable. In all retail communications, we emphasized the number of daily gifts, from TVs to trips, to show that it’s not just one big prize at the end, but continuous wins. This has helped combat the “I’ll never be lucky” mentality by encouraging people to try their luck every day.

We have introduced this in our 400 gram and 1 kg packs, especially with holiday sweets. The idea was to attract both new and returning customers by offering rewards for every purchase – be it a trip to London, watching TV or cash back. For example, some customers won multiple prizes on different days, which increased their excitement and engagement.

The campaign also expands our brand reach. We are a leader in some states and through local engagement in places like Bihar and digital advertising like Diljit Dosanjh’s video, we are gaining visibility in new regions and among younger audiences. Digital engagement was vital to creating a connection and making consumers feel like they were interacting with a brand rather than just a product.

Our goal was to make consumers feel rewarded, even with small prizes like Rs 100 cashback on a pack worth Rs 120. The ‘Gift Guaranteed’ concept played a central role in making everyone feel valued, which contributed to the success of the campaign and strengthened our brand position in key markets.

What is your distribution strategy? Traditionally this has happened offline, but how has the company adapted to online distribution channels?

Our business is primarily divided between general trade and new e-commerce channels. Rajasthan and Bihar have primarily been general trade markets and as a brand that started with general trade (GT), it holds a special place for us. However, as consumer habits evolve, we are increasingly present in modern trade (MT).

In Rajasthan and Bihar – our core states – you will see us in places where general trade prevails. But in other areas modern trade has a stronger presence, and there we are also easily accessible. In addition, our products are available on e-commerce platforms such as AmazonBlinkit, Swiggy Instamart and Zepto. So, as consumers change their shopping preferences, we ensure that we can reach them wherever they are, be it Instagram, WhatsApp or any other platform.

As a consumer, I understand that sometimes you just want convenient delivery to your doorstep rather than going to the store. Sometimes I like to stroll through the supermarket, and sometimes I just want everything brought home to me. We strive to provide this flexibility to our customers by maintaining a strong presence across all channels.

For example, in the lead-up to Diwali, we strive to offer promotions to our consumers by ensuring accessibility across all touchpoints. From a business perspective, general trade remains our largest channel, although e-commerce and modern commerce are growing rapidly. General commerce may not be seeing the same growth rates as e-commerce, but overall the market is expanding. Every year we see the growth of e-commerce.

The industry is also progressing thanks to the efforts of major players. With Zomato already listed and Swiggy moving in this direction, the industry is booming. Whether a consumer can find our products in a local store or through Blinkit, accessibility is what matters most to us. Our priority as a brand is to ensure that our customers can connect with us on whatever platform they prefer.

What are your best-selling products in the ethnic snacks category?

Our best selling product is without a doubt Bhujiya – it is iconic to our brand. Over time, we have expanded the Namkeen category with sub-brands like Kuch-Kuch, Sub Kuch and Tana-Tan (our aloo Bhujiya) and we are now the largest Bhujiya manufacturers in the country.

The sweets sector has seen a major shift from the unorganized sector to the organized sector, especially post COVID. Packaged sweets are gaining popularity with more consumers opting for modern commerce and fast commerce for convenience during festivals like Diwali. Retail giants like DMart and Reliance are leading this shift, allowing us to expand the sweets category and explore new offerings.

We are also seeing a shift in consumer preferences towards smaller packaging sizes, driven by smaller household sizes and individual consumption. While e-commerce and quick-commerce platforms are promoting smaller SKUs, larger packages remain popular in brick-and-mortar Kirana stores.

The market for festive gifts has grown significantly with gift sets ranging from Rs 210 to Rs 2,500. While gifts are not yet a major source of revenue, we see their potential and are actively investing in expanding them into a significant category.

What role does the gifting segment play in your revenue strategy now versus five years ago, and how has your approach changed?

It’s important to note that five years ago, gifts were not a significant contributor to our revenue, but there has been a paradigm shift. This change has resulted in increased focus and resource mobilization, as well as innovation in our product lines.

What about consumers shifting to healthier lifestyles? What product lines are you offering this holiday season?

We truly serve a growing segment health– conscious consumers. We offer a wide variety of dry fruit based desserts such as Kaju and date based sweets with roasted nuts. Our products are available in various price categories and are aimed at both mass and premium segments.

While these healthier options are gaining popularity, they currently make up a smaller share of overall sales compared to traditional products. The organized sector has a larger market share than the unorganized sector. Indiabut we recognize the importance of these healthier products for the future.

To cater to this demand, we have developed a multi-grain bhuja that includes a blend of grains such as jowar. We also offer roasted crushed peanuts as an alternative to traditional snacks. While this healthier category is still evolving, we are committed to evolving our product offerings to meet consumer preferences over the next decade.

What are the company’s expansion plans?

We are already expanding. We recently acquired Ariba Foods, a Ujjain-based frozen food company. We also have a plant in Bikaner. Now that we have a large scale facility, with this setup we are focusing on improving exports. We have several factories throughout the country; In fact, Prime Minister Modi recently inaugurated three of our factories in different cities under the PLI scheme, including Patna and Raipur.

We are committed to promoting ethnic snacks, a category that is growing at a steady pace. We also see potential in Western snacks, although they currently form a smaller part of our portfolio. As we grow, we are focusing on specific states and categories to strengthen our presence in the market. Our goal is to become a market leader in various segments, creating a comprehensive product offering for consumers.

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