While our competitors advertise when necessary, we advertise daily: Freedom Oil’s Chandra Shekhara Reddy

New Delhi: While many brands have put brand building on the back burner, with some even declaring that 'branding is dead,' the question arises: why isn't brand building being prioritised despite the clutter on shelves?

During a conversation with BestMediaInfo, P Chandra Shekhara Reddy, Senior Vice-President, Sales & Marketing, Freedom Healthy Cooking Oils India, stated that brand building is a time-consuming process that requires significant investment without immediate returns.

“Many companies hesitate to invest heavily because the financial benefits might only become evident after 5 to 7 years. This has led to a hesitation in the approach.” 

He highlighted that previously, many brands had entered the cooking oil market but de-scaled, leading to a reduced scale of operations. 

Therefore, Reddy emphasised that to stay ahead, “We are preparing for aggressive marketing in terms of distribution efforts, leveraging technology to track and reach various retail outlets.”

Elaborating on aggressive marketing and leveraging technology, Reddy stated, “Our strategy includes ramping up brand-building activities and leveraging consumer engagement through promotions and offers.”

As for AI, Reddy said, “We are still in the early stages of its implementation. AI is being used in research to measure consumer emotions and feedback. Although we haven't yet incorporated AI into ad film production, it's an area we're exploring.”

He also highlighted that the brand is planning to use AI more extensively in the next few years to outbid the competition and enhance consumer engagement activities. 

Elaborating on the distribution network of Freedom Healthy Cooking Oil in terms of media and marketing. Taking back to the inception of the brand, Reddy stated that in the Telugu states, sunflower oil is a well-known oil, but only a few brands offer high-quality oil or ensure equal distribution across the state.

Brands would occasionally advertise, mostly around festivals or special sales events, focusing on short-term gains rather than sustained brand building, he added. 

"Therefore, we decided to break this pattern. From the day we launched, our focus has been on equal distribution,” Reddy opined. 

The brand recently launched a campaign called ‘Are You Buying Right?’ to spread awareness among consumers and check the quantity of edible oil in the 1-litre pouch being purchased.  

Speaking about the campaign, Reddy highlighted that the objective of the campaign is to raise awareness and encourage consumers to check the weight and volume of oil packs. To ensure consumers are not misled by packs that appear to be 1 litre but contain less.

“Through advertisements and press campaigns, we wanted to demonstrate how consumers can be misled and stress the importance of checking the volume and weight to get the right quantity at the right price,” he added.

Regarding marketing and consumer awareness, he said, "Our competitors typically advertise only when necessary. In contrast, we chose to advertise daily. During festivals, we might run specific consumer offers or tactical promotions, but our everyday advertising sets us apart."

“By maintaining consistent advertising and distribution, our brand quickly became the top choice in our primary states,” Reddy said.  

“By 2020 or 2021, we had the largest market share in sunflower oil, holding 22% and operating in 5–7 states,” he added.  
When discussing marketing strategies with BestMediaInfo, Reddy explained the prioritisation between digital marketing and on-ground consumer activation: "Our priority comes from understanding where our consumers are."

While digital engagement is increasing, most of our target audience, particularly those aged 22 and above, still watches TV. The way content is consumed has changed; ten years ago, it was all on traditional TV, but today, we also have connected TVs and internet TVs.

Highlighting the budget allocation, he said, "Our budget for TV includes traditional TV, connected TV, and related apps. A significant portion, around 75%–80%, still goes to CTV and related apps. The rest is going to digital print, consumer offers, etc.," he added. "However, we are gradually increasing our digital budget as well." 

"In the past, most of our digital spending was on Facebook and YouTube, but over the last two years, we've seen platforms like Instagram and various e-commerce options emerge. As the number of digital options and mobile usage increases, we're adjusting our budget to match these trends," Reddy emphasised.

Considering the competitive nature of the edible oil market, Reddy mentioned, “Our company faces several challenges.”One of the primary challenges is operating in a price-sensitive market, he highlighted. “We don't have the luxury of offering very low prices because of our significant expenditures and the need for ongoing investment. To grow, you need to invest and to invest, you need money, which means we have to make a profit. However, we can't overcharge due to competition.”

He said that maintaining cost efficiency while managing the workforce is a significant challenge. Additionally, the demand for edible oil fluctuates with price changes. Navigating these fluctuations in demand and maintaining the right pricing is another constant challenge, he added.

Despite these challenges, Reddy said, “We've been able to overcome them due to our volume and strong brand presence. Our brand salience helps us maintain a steady market position.”

When discussing the future trends in the edible oil market and how the brand is preparing for them, Reddy said that one significant future trend is the decline of loose oil consumption, which currently accounts for about 20% of the market.

He said that as consumers are moving towards healthier options, there is also a shift from oils perceived as less healthy to those considered better for digestion and overall health. With emerging trends, consumer preferences will continue to evolve.

Technological innovation, including AI-driven processes and advanced digital marketing strategies, enhances efficiency and customer engagement in the industry. Reddy stated, "Our preparation involves adapting our marketing strategies and expanding our distribution channels to meet these changing consumer preferences."