Delhi: With the evolution of Sid’s Farm 11 years ago, Chatterjee, Vice-President of Marketing revealed to Bestmediainfo.com how the company’s growth rate of 27% annually is attributed to its focus on awareness and trust among consumers through a road of transparency.
Chatterjee emphasised awareness as the marketing strategy behind the growth of the company.
Chatterjee shared that their strategy aimed to establish a new category. He highlighted his extensive experience in marketing, noting that while tactics like offers and initial benefits are useful for attracting customers, they’re not sustainable long-term strategies.
The focus is on creating a cohort of customers who understand the value of consuming pure products for their families’ well-being. This effort is geared towards encouraging a shift in habits, which requires gradual and ongoing efforts, mainly through awareness campaigns, he added.
In the realm of customer acquisition and retention cost management, Chatterjee delves into the dynamic strategies employed at Sid's Farm. According to him, the sweet spot lies within the principle of organic growth, where handling up to 2000 new customers monthly remains not just feasible, but optimal.
'It's not merely about the numbers, but the art of nurturing relationships,’ he added. Chatterjee emphasised the significance of segmenting these customers into cohorts, tailoring unique experiences for each group to ensure their retention.
When discussing the allocation of marketing budgets across different channels, Chatterjee revealed that approximately 4-5% of revenues are earmarked for marketing expenses. Of this, around 40% is dedicated to on-ground activations and detailed activities. He also added that some funds are also directed towards brand-building efforts and strategic partnerships.
Interestingly, Chatterjee said that they currently refrain from traditional above-the-line (ATL) or out-of-home advertising (OOH) methods such as hoardings, TV commercials, or radio spots. Instead, they explore alternative strategies like collaborating with operating system platforms and advertising in cinema halls during screenings. Additionally, a portion of the budget is reserved for developing an ambassador program, incentivising loyal customers to spread positive word-of-mouth about the brand.
Chatterjee discussed the challenges of marketing expansion, particularly in terms of manpower. He shifted focus to his target audience, identifying them as customer personas. Explaining further, he highlighted the manpower-intensive nature of their direct home delivery business, with around 450 delivery personnel in Hyderabad and nearly 100 in Bangalore. To avoid spreading too thin, they targeted households with incomes over one lakh a month.
During a discussion about the impact of technology and AI, Chatterjee pointed out that customers at Sid's farm in Hyderabad prefer to speak to a real person before making decisions, while in Bangalore, consumers use chatbots to avoid interruptions. However, he stressed on the importance of human interaction. While technology advances, human connection remains essential, he added.
No competitors: The growth trajectory of Sid’s Farm
Chatterjee delved into the growth trajectory of Sid’s Farm over its 11-year evolution. He
highlighted their consistent growth rate, averaging around 27% annually over the past five years. Looking ahead, Chatterjee anticipated a growth of over 30% by the end of the current financial year. Reflecting on the dairy market’s transformation, Chatterjee noted the significant expansion of the premium milk segment, which has grown from less than 0.5% to between 1.5% and 2% of the entire Indian dairy market. Despite this growth, Chatterjee asserted that Sid’s Farm doesn’t view anyone as a prime competitor because any brand that enters this space is actually pushing the boundaries for this segment and making more customers aware.
Instead, he emphasised, “Our focus is on expanding the consumer base for pure, tested, and traceable milk.”
Chatterjee highlighted the collaborative nature of the market, where the entry of new players doesn’t necessarily lead to customer cannibalisation but rather expands the overall consumer segment. He attributed Sid’s Farm’s success not to competition with mass brands but to their commitment to transparency and their status as early entrants in the premium milk sector.
Chatterjee concluded that their transparency remains their primary asset in the market.
Evolution of Sid’s Farm
Shedding light on the origins of the household name, Sid’s Farm, he explained that the name originated from the founder’s son, highlighting the profound promise a parent makes to their child. He stated, “It wasn’t merely about naming a farm after his son; rather, it symbolised a commitment to fulfill the strongest of promises.”
Future and expansion
Looking ahead to the future of Sid’s Farm, Chatterjee outlined their ambitious goals. He
expressed, “Our aim is not just to build a dairy brand, but to pioneer lasting changes in farming practices in India and revolutionize how people approach food consumption.”
While they may consider expanding into other food sectors eventually, Chatterjee emphasised that their primary focus remains on dairy for now.
Discussing their expansion strategy, Chatterjee revealed, “This year, our focus for expansion besides Hyderabad will be strengthening our presence in Bangalore.”
Following this, they plan to explore markets in Mumbai and Pune in the latter part of the year, laying the groundwork to gauge their potential success in these regions.
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