Financial year 2022 was the landmark year for the packaged food major Adani Wilmar Ltd (AWL), which had surprised the country by trouncing Hindustan Unilever from the position of largest FMCG company in India by reporting annual revenue of Rs 54,214 crore against HUL's revenue that stood at Rs 51,468 crore.

However, when the Russia-Ukraine war broke out in February 2022, the edible oil industry faced challenges since both countries involved in the conflict have been major suppliers of sunflower oil. It impacted AWL as well, which is a joint venture between the Adani group and Wilmar International of Singapore, as edible oil forms the bulk of its revenue.

As supply constraints eased out and rural consumption improved, e4m spoke to Vineeth Viswambharan, Associate Vice President - Sales and Marketing of AWL, to understand the firm’s marketing success story, its media mix and what is in its plans to go ahead among other things.

Adani Wilmar is one of the largest food FMCG companies in India at present. Can you share your marketing success story with us? 

The core of Adani Wilmar’s marketing strategy is that our products speak for themselves. Our deep capabilities in the food agri-commodity value chain help us deliver exceptional quality products to multiple consumer segments at prices that offer great value. This has helped us drive the expansion of the packed staple commodities market and generate rapid growth.

Our marketing strategies focus on building an emotional connection with consumers while staying rooted in the drivers of category choice. Our focus is on showcasing our range of products catering to the kitchen basket and our product-specific advertisements complement each other with a common tone of voice & treatment. We recognize the enduring demand for essential food products, and are focused on a clear vision for long-term growth and category expansion.

As we grow, so do our advertising spends, expanding our media presence across traditional and digital platforms, and maintaining a hybrid approach that suits different consumer segments.

While we have a digital-first strategy for our value-added products focused on urban areas, for our mass market product offerings, we value the impact and scale that traditional media can generate. We continuously strive to stay abreast with current and potential consumers to better understand their motivations, behaviours and the role our products play in their lives. This well-rounded approach has fuelled our marketing success in the FMCG industry.

 How much market share do you enjoy at present and what are your sales projections for the coming year?

Our edible oils have maintained their leadership with a market share of 19.5 per cent (including JV share) as per MAT June 23. The market share in wheat flour too rose to 5%, whereas the combined market share of Fortune & Kohinoor in basmati rice is 7.2% in the same period.

Additionally, the company has focused on expanding its presence in rural areas, where it has added over 7,500 new towns in the first quarter of this financial year. Our rapid rural growth can be traced to the establishment of this rural distribution network, which in turn is supported by affordable edible oil prices. The company's growth in various product segments provides a positive outlook. It has demonstrated resilience and adaptability in the face of market challenges and anticipates continued growth.

 The Russia-Ukraine war has impacted the edible oil industry as Russia and Ukraine are major oil suppliers. Besides, rural consumption remains subdued due to inflation. How do you plan to overcome these challenges?

The situation that prevailed in the previous quarter has changed now. The global edible oil prices are in a comfortable position, which is translating to rural consumption getting back on track. There is a constant supply from Russia which has filled the supply gap from Ukraine and availability isn’t an issue. In addition, the company is focusing on expanding its rural distribution, leveraging technology, and enhancing its product quality.

Adani Wilmar's growth in market share and volume, particularly in the essential food products category, is a testament to its adaptability. It aims to continue its dual approach of leveraging both traditional and digital channels and maintaining a strong market presence, particularly in rural areas.

In step with the cautious optimism rippling through the company, Adani Wilmar anticipates that the impending festive season will serve as a much-needed catalyst for revitalizing consumer sentiment and stoking demand. With early indications of recovery, the brand foresees a resurgence in consumer enthusiasm as people eagerly anticipate celebrating festivals with the company’s high-quality products.

You recently launched special packets for Durga Puja. What was the inspiration behind that decision?

Durga Puja is not just a religious event but also a celebration of togetherness and traditional cuisine. The company aims to tap into this cultural nuance with specially designed packs for their brand products, Fortune Kachi Ghani Mustard Oil and Fortune Soyabean Oil.

The marketing strategy for this campaign prioritizes cultural sensitivity, creating an emotional connection, and highlighting the products' dual benefits of health and tradition. The campaign, showcasing the compatibility of these oils with Bengali flavours and traditional dishes, emphasized how they enhance the festive dining experience. It also leveraged the element of nostalgia, a key element connecting the brand with cherished traditions and 'Ghar Ka Khaana’.

 Can you please share your annual advertising spend and marketing mix? Which platform gives you the best ROI?

Traditionally, a lion’s share of AWL media spend has been in legacy media. However, over the past few years (especially after COVID), spend on digital has been on the rise. With ever changing digital landscape, almost a fourth of AWL’s marketing spending is now on digital media. Newer touchpoints like Connected TV and OTT platforms are now regularly leveraged to reach out to its consumers.

 How has your marketing strategy evolved over the past two years and what are the key trends that you plan to follow in the coming year? 

Over the past two years, our marketing strategy has adapted to dynamic market shifts. We have developed new capabilities in marketing on e-commerce channels and in digital media. We have become more adept at multi-platform marketing encompassing both traditional and digital media. We have also integrated our marketing communications better to ensure that they complement each other and better serve our brand portfolio objectives. 

 You have roped in Akshay Kumar as your brand ambassador and the TVC breaks gender taboo. One of your ad campaigns showcases UP and its unique culture. What are the thought processes behind both the moves?

Akshay Kumar is a popular actor known to have a strong sense of social consciousness. His influence and relatability make him an ideal choice to represent the brand. The TVC's emphasis on breaking traditional gender roles not only showcases the brand's commitment to progressive values but also resonates with a changing society that seeks brands that resonate with their values.

The Fortune Kachi Ghani TVC campaign not only highlights UP but showcases the connection of mustard oil with Indians across different regions, cultures and traditions and emphasizes the importance of purity in doing so. By acknowledging the rich culinary heritage of different regions, the brand not only appeals to local sentiments but also creates a sense of inclusivity. This approach serves to strengthen the emotional connection between the brand and its consumers. The TVC is a testament to Adani Wilmar's commitment to preserving and celebrating cultural traditions while offering high-quality products.

 What are your expansion plans?

Our expansion plans are anchored in the continued growth of our edible oil business and driving rapid growth of the food category, which includes expanding our presence in various markets by diversifying and enhancing our product offerings. As a nimble player, we see a tremendous opportunity to leverage technology and invest in cutting-edge plants and machinery to create high-quality products that resonate with consumers. This approach allows us to not only meet the evolving demands of the market but also to stay ahead of the competition.