Founded in 2013 by Viraj Bahl was initially launched as a B2B supplier where it provided sauces, emulsions, and dessert toppings to major global fast-food chains like Domino’s, Burger King, and KFC.
Within just a few years, the company expanded into the retail market, introducing a unique range of products that are not only innovative but also health-conscious, with low-fat and vegetarian options. The brand has been able to stand out in an already crowded space.
Veeba’s approach combines a deep understanding of the Indian consumer’s evolving palate with strategic marketing to drive growth.
Market Context
When Veeba entered the Indian market in 2013, the condiments and sauces sector was on a steady rise, fueled by changing consumer preferences and a growing inclination towards global cuisines. This growth was driven by increasing urbanization, higher disposable incomes, and the youth eager to experiment with diverse flavors.
Major players like Nestlé, Kissan, and FunFoods dominated the market, offering a wide range of sauces, ketchups, and spreads. However, the market had ample room for innovation, particularly in health-conscious products and gourmet offerings.
Veeba started as a B2B supplier, focusing on providing high-quality sauces and dressings to fast-food giants like Domino’s, KFC, and Burger King. This not only helped Veeba establish a strong foundation but also gave the brand credibility in the food industry.
Leveraging this reputation, Veeba transitioned into the retail segment, where it differentiated itself by offering a wide range of sauces and dressings that catered to the health-conscious consumer. Veeba initially focused on modern trade channels, positioning its products in premium supermarkets and hypermarkets in urban areas.
Over time, Veeba expanded its distribution network to include general trade and e-commerce platforms, ensuring a wider reach across the country. The brand also capitalized on the rising trend of home cooking during the COVID-19 pandemic, which saw a surge in demand for sauces and dressings as consumers experimented with new recipes at home.
Veeba’s wide range of products, which included global flavors like Italian dressings and oriental sauces, allowed the brand to cater to this growing demand. Today, Veeba and FunFoods have a market share of 80% in the condiments and mayonnaise market in India.
STP Analysis
Segmentation:
Demographically, the brand targeted urban, middle to upper-middle-class households, particularly in metro cities where there was a higher disposable income and a willingness to spend on premium products. Psychographically, Veeba honed in on health-conscious consumers who were increasingly aware of the ingredients in their food and sought healthier alternatives to traditional condiments.
Behaviorally, Veeba identified a growing trend among Indian consumers who were exploring global cuisines and desired restaurant-quality products at home.
Targeting:
Veeba’s primary target audience consisted of urban, health-conscious consumers who valued quality and were willing to pay a premium for it. Veeba understood that this audience was not only health-conscious but also brand-conscious, and likely to be loyal if they found a product that met their specific needs.
By addressing this gap in the market, Veeba positioned itself as the go-to brand for quality and health-oriented condiments.
Positioning:
Veeba positioned itself as a health-conscious and premium brand that offered innovative products. Veeba’s products were also designed to cater to specific dietary preferences, including low-fat and vegetarian options which aligned with the growing consumer demand for healthier and more transparent food options.
The brand’s emphasis on innovation – introducing global flavors like Sriracha, Chipotle, and Wasabi to the Indian market – further strengthened its position as a leader in the premium condiment space.
Competitor Analysis
Veeba operates in a highly competitive condiment and sauce market in India, where it faces stiff competition from well-established brands like Kissan, Heinz, and Del Monte.
Kissan a brand owned by Hindustan Unilever, has been a household name for decades, particularly known for its ketchup and jams.
Heinz is another significant player, offering a range of ketchup, sauces, and condiments that have global appeal.
Del Monte provides a variety of products including ketchup, sauces, and pasta sauces, and has gained a loyal customer base in India.
While Kissan and Heinz predominantly market their products based on taste and tradition, often highlighting family values and nostalgia in their campaigns, Veeba’s marketing often centers around the absence of preservatives, artificial colors, and synthetic flavors, appealing to a growing segment of consumers who prioritize health and wellness in their food choices.
Veeba also has a strong presence in premium supermarkets and online platforms, targeting urban consumers who are more likely to purchase products online or in high-end stores. This contrasts with Kissan and Heinz, which have a more widespread presence in general trade and traditional retail outlets across both urban and rural areas.
While Kissan remains a market leader with a significant share in the ketchup and sauces segment, Veeba has steadily grown its presence, particularly in the urban centers. This growing consumer base has contributed to Veeba’s increasing presence in the market, though it still has a way to go before challenging the established dominance of Kissan or Heinz on a broader scale.
Marketing Mix
Product:
Veeba has built its brand on a diverse and innovative product range that caters to modern consumer tastes. The company offers over 75 different products, including sauces, dressings, and spreads. What sets Veeba apart is its commitment to quality and health-conscious ingredients.
One of Veeba’s standout products is its range of salad dressings, which includes flavors like Caesar, Thousand Island, and Vinaigrette. These dressings have become popular, especially in urban areas, where consumers are looking for convenient, healthy meal options.
The brand has also introduced global flavors like Chipotle Southwest and Sweet Onion, which are relatively unique in the Indian market. Veeba’s packaging is also designed to be practical and attractive, with easy-to-use squeeze bottles that emphasize freshness and convenience.
Price:
Veeba’s pricing strategy is positioned at the premium end of the market, reflecting the quality and health benefits of its products. It justifies this by offering products that cater to health-conscious consumers who are willing to pay more for better ingredients.
Over time, Veeba has occasionally adjusted its pricing to respond to market dynamics and competition. For example, during the pandemic, the brand introduced smaller, more affordable pack sizes to attract cost-conscious consumers.
This also helped to penetrate a wider audience segment, enabling them to try out the products and potentially come back for more.
Place:
Veeba’s distribution strategy includes both online and offline channels. The brand is widely available in premium supermarkets and grocery stores across urban India in 700+ cities.
It has also formed strategic partnerships with leading e-commerce platforms like Amazon and BigBasket, making its products easily accessible to a tech-savvy, urban consumer base. The brand’s presence is particularly strong in metro cities, where there is a higher concentration of health-conscious consumers.
Veeba has also made its products available through direct-to-consumer channels via its own website, offering special deals and subscription services that further enhance customer convenience. Though it started as a B2B company, currently, only 8% of its revenue comes from that, with 92% of the money earned through retail of its products.
Promotion:
Veeba employs a multifaceted promotional strategy that includes traditional advertising, digital marketing, and influencer collaborations. In 2023, Veeba was the co-presenting sponsor for MasterChef India, giving the brand increased credibility and reach.
The ‘Aaj Kya Khaoge’ campaign has a series of ad films that show the variety of ways in which Veeba products can be used:
Encouraging the audience to innovate their food, Veeba created this ad film, which was aired throughout ICC Men’s Cricket World Cup:
Regarding this campaign, the founder says –
| What we’ve tried to do here is marry India’s first love, which is food, with India’s second love, which is cricket. – Viraj Bahl |
The brand also has a strong social media presence. veeba_in currently has 64.2K followers on Instagram. Around festivals, they post content that connects emotionally. For example:
They also share innovative recipes with their sauces. For instance, have you ever imagined pineapple with peri-peri sauce?
These strategies have helped to appeal to urban Gen Z and millennials, who are more likely to engage with the brand and buy their products.
In a Nutshell
Veeba has made a significant impact on the Indian condiment and sauce market, establishing itself as a premium brand with a loyal customer base. As Veeba continues to expand its product line and reach new markets, it has the potential to become a market leader, challenging even the most established players in the industry.
Key Takeaways from Veeba’s Marketing
Video teasers before film shooting help to keep the audience interested and curious about the upcoming film.
Influencer marketing can be effective if done creatively and strategically.
The hook steps challenge is a fun way to promote the film songs and engage the audience.
In this age of “‘Netflix and chill”, films need to live up to the audience’s expectations to earn profits on the big screens.
