How is Kikkoman Planning to Mark its Presence in Indian Market
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How is Kikkoman Planning to Mark its Presence in Indian Market

India is one of the biggest emerging markets for global businesses and a key driver of growth in Asia. Now, a new brand called Kikkoman has decided to explore its potential in this market. Kikkoman Soy Sauce is a leading world-class soy sauce brand with users in over 100 countries.

Reports from FICCI indicated that the foodservice industry would grow to Rs 5 lakh crore by 2022. The Covid-19 pandemic may have affected the momentum, but technology, innovations, and retained interest from consumers could help the industry grow. India’s table sauce market also provides a healthy outlook with a predicted market increase at a CAGR of 18 percent over the next six years.

“In our long history of the global expansion of Kikkoman Soy Sauce to foreign markets, we are now certain that Kikkoman Soy Sauce integrates well with all local cuisines wherever we introduce our product, assimilating well into the local food culture. India has a long and rich history, celebrated as one of the most complex and interesting food cultures in the world, and we are excited about how Kikkoman Soy Sauce will play a pivotal role in making all dishes served in India more delicious, inspiring a generation of chefs with new ways of enjoying food,” Osamu Mogi, Director, Senior Executive Corporate Officer, International Operations Division, Kikkoman said.

“Further, household cooking follows trends of foodservice restaurants, this is how cuisines develop and mature over time. In this respect, there is huge potential for both the foodservice and household market, as more customers will be able to experience Kikkoman in India as we progress our business,” he added.

India: An Important Growth Market

The Indian retail industry is one of the fastest-growing in the country and in the world. It has emerged as one of the most dynamic and fast-paced industries due to the entry of several new players. In anticipation of the next 100 years of Kikkoman, it is the most important market for the brand.

How is Kikkoman Planning to Mark its Presence in Indian Market

“The next few years for Kikkoman India, numbers are not as important, but rather the true development of human resources - our India subsidiary core team members - to create a solid management business foundation; what we do to develop the substance of the business is the most important,” Mogi stated.

“In the near future, India will be the nation that has the largest population in the world. As such its sheer scale makes it one of the most exciting markets in the world for Kikkoman. “If we think in terms of the next 50 years or 100 years, we believe sales from India will become one of the most important markets in the world, as we progress into the future,” he further asserted.

Marking Presence

Kikkoman Soy Sauce brand will be expanding through HoReCa in India. It will also accelerate its presence at both modern retail and general trade outlets in the country so as to heighten its presence in these channels. 

“There is no doubt that online presence is critical for our retail strategy. However, consumers are not yet aware of Kikkoman Soy Sauce which is naturally brewed and all-purpose, made with the traditional authentic Honjozo method. As such, physical presence is most important at retail store-level,” Mogi stated.

Brand Positioning

Kikkoman Soy Sauce is a versatile all-purpose seasoning that can be used for all cuisines, including cooking Asian, Western, and Indian dishes. Composed of only four ingredients – Soybeans, Wheat, Water, and Salt, Kikkoman’s naturally brewed soy sauce is brewed using the Honjozo method. “Our positioning is for consumers to understand that using Kikkoman Soy Sauce is key and necessary for preparing authentic Indian Chinese dishes. We shall introduce products in the retail market that encourages consumers to perceive this fact,” he said.

How is Kikkoman Planning to Mark its Presence in Indian Market

Currently, the brand has 4 SKUs of naturally brewed all-purpose Kikkoman Soy Sauce. It is soon planning to launch 2 SKUs of Kikkoman Oyster Flavoured Sauce.

“As we have seen in households worldwide, we believe many more people have started to challenge themselves to cook at home. Access to our recipes online is a testament to this trend. We shall therefore be developing not only more products here in India but work on “soft solutions” for our customers, which will be increasingly more important, such as recipe development which add value for all our customers,” Mogi noted.

READ MORE: QSRs Rule the Food Service Industry

Road Ahead

One of Kikkoman’s goals for India is to make soy sauce an important seasoning within Indian households, a vision successfully implemented in the US, and eventually become No.1 in the Asian sauces category by first becoming the No.1 choice of soy sauce brands in the country.

As Indian Chinese gathers pace in popularity in the foodservice sector, this shall further permeate into Indian households, and in this process, Kikkoman shall be the most preferred brand for consumers both at foodservice level and thus has direct appeal with end-customers in households - this is its India strategy.

For marketing, the brand is trying traditional methods, it is sampling its authentic soy sauce, and this year Kikkoman initiated two major plans. It introduced for the first time 100 multi-cuisine recipes in collaboration with India’s top chefs. Also, another unique concept of the “Meet Use Experience” activity for the HoReCa market, a first of its kind, is the largest sampling of Kikkoman Honjozo Authentic All-Purpose Soy Sauce in India. 15,000 bottles of Kikkoman Soy Sauce will be distributed to the largest Indian cities.

“We will focus on getting the basics right and shall continue to review our work accordingly. We believe what is important is to work to see our business steadily take shape based on following these basics,” Mogi concluded.

(To know more about what is happening in the retail, D2C, and e-commerce industry, please attend IReC.)  

 
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Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
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Subway India's Rapid Expansion: 100 New Stores in 2024 and a Bold Vision for the Future
 

Subway, the global leader in freshly made, customizable sandwiches, has achieved a significant milestone in India by opening 100 new stores in 2024. This expansion underscores the brand’s rapid growth trajectory in one of its fastest-growing international markets. With a renewed focus on modernization, localization, and customer-centric innovations, the brand is strengthening its position in India’s highly competitive Quick Service Restaurant (QSR) industry.

A Landmark Achievement in India's Growth Journey

India’s dynamic and evolving food industry has presented a lucrative opportunity for Subway to expand its footprint. With the opening of its 100th store in Lokhandwala, Mumbai, Subway now boasts a formidable presence of over 900 stores in more than 160 cities across India.

“Reaching this milestone of 100 new stores in a year is a testament to our customers’ trust in the Subway brand. This marks a significant chapter in Subway India’s growth journey, reflecting our unwavering commitment to delivering fresh, high-quality, and made-to-order sandwiches to our discerning customers,” said Tarun Bhasin, CEO of Culinary Brands, the exclusive master franchisee for Subway in India, Bangladesh, Sri Lanka, and other countries.

The brand’s aggressive expansion in 2024 is driven by the increasing consumer demand for freshly made, healthy, and convenient food options. As lifestyles change and urbanization accelerates, Subway is strategically positioning itself as a preferred choice among India’s young and working population.

Strategies Driving Rapid Expansion

The remarkable success of Subway’s expansion in India can be attributed to multiple key strategies:

  1. Leveraging Market Trends: Consumers today are more health-conscious and seek fresh, nutritious, and made-to-order food. Subway’s offering of fresh ingredients and customization aligns perfectly with this trend.
  2. Penetrating Tier II and III Cities: Recognizing the potential of India’s smaller cities, Subway has expanded beyond metropolitan areas. “Our innovation team closely follows local and international trends to offer an exciting menu to consumers. Our current menu already features multiple localized options, such as Paneer Tikka and Tandoori Chicken, which are very popular as they offer familiar tastes while maintaining Subway’s global sandwich-making approach,” Bhasin stated.
  3. Modernized Store Design: To enhance customer experience, Subway has introduced a refreshed store design that is more inviting, convenient, and modern. The response from customers has been overwhelmingly positive. “The new look aligns with what today’s new-age consumers seek – a smart and inviting ambiance that reinforces the freshness associated with Subway,” added Bhasin.

Subway’s Focus on Tier II and III Markets

While Tier I cities remain key markets, Subway is aggressively expanding into smaller cities to tap into their growing disposable income and rising demand for global QSR brands. Establishing outlets in high-footfall locations such as malls, airports, and highways ensures greater brand visibility and accessibility.

“At Subway, we recognize that every market has unique preferences and challenges. That’s why our menu innovation team continuously researches and adapts offerings to suit regional tastes while maintaining our global standards,” Bhasin explained.

Menu Innovations Catering to Evolving Preferences

The brand has also introduced new product lines to cater to India’s evolving taste preferences. Recent additions include the Hot & Cheesy Signature Subs and Breakfast Specials.

“Consumers love our Hot and Cheesy Signature Subs. They are the perfect indulgence during winters, offering 1.5x filling, extra cheese, and served piping hot. Options include Cheesy Paneer Tikka, Mexican, American Barbecue, Chicken Tikka, and Lamb Pepperoni,” said Bhasin.

Subway’s Breakfast Specials are another hit, offering fresh, made-to-order sandwiches that cater to professionals and early risers. “It’s a perfect fit for morning meals, and customers can walk in or order online in metros and mini-metros to relish these sandwiches, best paired with hot coffee,” he added.

Technology-Driven Growth and Customer Engagement

Subway is harnessing technology to enhance customer experience, streamline operations, and support its rapid expansion. Key tech initiatives include:

  • Customer Engagement: Tools like Net Promoter Score (NPS), Online Reputation Management (ORM), and Customer Relationship Management (CRM) are used to interact with customers and gather insights.
  • Retail Expansion Support: Specialized technology tools aid in identifying potential store locations, ensuring efficient supply chain management, and optimizing operations.
  • Digital Transformation: Enhanced online ordering, loyalty programs, and AI-driven recommendations are being integrated to provide seamless customer experiences.

“Technology has been an anchor for multiple departments at Subway. Various specialized tech tools are leveraged to support retail expansion and drive decision-making in the supply chain, quality, and operations,” Bhasin noted.

The Road Ahead: Making Subway India’s Largest QSR Chain

Looking forward, Subway has set an ambitious goal of becoming India’s largest QSR chain over the next decade. This vision is built on key pillars:

  1. Fresh, Customizable Offerings: Subway remains committed to delivering high-quality, made-to-order food that aligns with consumer health trends.
  2. Localized Menu Innovation: Expanding its menu to include more regional flavors and healthier options will be central to sustaining growth.
  3. Wider Retail Presence: Strengthening its footprint in metros and Tier II and III cities will ensure greater accessibility.
  4. Digital and Technological Integration: Embracing digital platforms for seamless ordering, loyalty programs, and data-driven decision-making will be critical to scaling operations.
  5. Overcoming Challenges: While competition, supply chain complexities, and shifting consumer preferences pose challenges, Subway’s strategic focus and adaptability will be key to its continued success.

“We recognize that achieving our goal requires strategic planning and agility. However, our unwavering commitment to fresh, high-quality food and a robust expansion plan will drive Subway’s growth and success in India,” Bhasin concluded.

 

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