Do you remember the famous Campa bottle, the Fatafat Goli with orange packaging, the red-coloured Parle Kismi bar and the legendary Funflips and Crax? Even though they were simple snacking items one can never wash them out from our childhood memories. There must have been great minds behind designing the products that existed and still do if not on shelves but definitely in our thoughts.
Traditionally, consumer goods were marketed to broad demographic segments based on age, gender, or location assuming one size and colour will fit all. For some industries and product categories, this still holds true and works irrespective of the change in consumer behaviours and market scenarios.
However, with advancements in data analytics, artificial intelligence (AI), and machine learning (ML) there has been a shift in marketing strategies. Brands now have unprecedented access to consumer behaviour data, preferences, and purchase histories that has led to the adoption of various techniques and strategies. This wealth of information enables them to create highly personalised experiences that resonate with individual tastes and lifestyles.
Having grown up in the age of social media apps and AI, young consumers expect and appreciate personalisation even from traditional products like food and beverage brands. In the digital age, personalisation has become a cornerstone of consumer experience across various sectors, including the increasingly popular realm of snack and beverage customisation in India. This evolution represents a shift from traditional mass production to tailored, individualised offerings that cater to the unique preferences and lifestyles of consumers.
But the real catch is, that even after these advancements and understanding of new consumer patterns, the level of personalisation is not applicable and successful for brands that are not D2C. In the case of retail stores, there are hurdles and challenges at every step when it comes to making the products fly in the market. Brands are forced to limit themselves even after understanding and realising the consumer demand due to limitations of the display space. For online businesses, personalisation is a boon that caters to the requirement well and is acknowledged well with brand loyalty once you have won hearts by delivering a quality product that meets the expectations of your end user.
Understanding Personalisation in the Digital Age
1. Consumer-Centric Approach: Personalisation in snacks and beverages goes beyond mere product customisation; it embodies a consumer-centric philosophy. Brands leverage data analytics, AI algorithms, and consumer insights to understand preferences deeply. For instance, companies analyse purchase history, social media interactions, and demographic data to anticipate what customers might want next. Brands are also connecting with customers through sampling in stores and at events to get consumer feedback and be able to talk about the product.
2. Customisation Options: The digital age has ushered in a plethora of customisation options. From choosing ingredients to determining nutritional content and portion sizes to flavour/taste customisation, e.g. regional flavours like kokum for beverages, kaccha aam for cotton candy, garlic pickle for chips, etc. Using AI to identify consumer trends and viral tastes for product taste innovation and marketing campaigns, consumers now have unprecedented control over their snack and beverage choices. This level of customisation not only enhances consumer satisfaction but also fosters a sense of ownership and identity. To add to this, I must say that the special and limited edition products are a big hit in the market due to a stipulated timeline and the need and rush to buy them now.
3. Technology Integration: Technology plays a pivotal role in enabling personalised experiences paving the way for brand familiarisation to customer loyalty. Mobile apps and online platforms allow consumers to create bespoke snack and beverage combinations effortlessly. AI-driven recommendations based on past purchase behaviours and trends further enhance this process, offering suggestions that align closely with individual preferences. At the same time, the brands need to keep in mind the distribution channels and the limitations before experimenting with any new product category to be successful in the game.
4. Cultural Relevance: In India, where cultural diversity influences culinary tastes significantly, personalisation takes on a nuanced dimension. Brands recognise regional preferences, dietary habits, and festive traditions to tailor offerings that resonate deeply with local consumers. For example, customisable chai blends or snacks flavoured with regional spices cater to diverse palates across the country and occasion-wise packaging never fails to win hearts.
5. Enhanced Customer Engagement: Personalisation fosters stronger customer relationships by making interactions more meaningful and relevant. By offering personalised recommendations and exclusive deals based on consumer behaviour, brands deepen their connection with customers, driving loyalty and repeat business.
6. Ethical Considerations: While personalisation enhances convenience and satisfaction, it also raises ethical considerations. Ensuring consumer privacy and data security is paramount. Transparent policies regarding data usage and opt-in mechanisms for personalised services are essential to build trust and mitigate concerns about data misuse.
The Future Landscape
Looking ahead, the evolution of personalisation in snacks and beverages is poised to continue and attain new heights. Advancements in machine learning and IoT (Internet of Things) will likely refine predictive analytics, making recommendations even more precise. Furthermore, sustainable practices and health-conscious choices are expected to influence customisation options, reflecting broader societal trends towards wellness and environmental stewardship.
In conclusion, personalisation in the digital age is transforming the way consumers engage with snacks and beverages in India and globally. By leveraging technology and consumer insights, brands can create tailored experiences that not only meet but anticipate individual preferences, fostering a deeper connection and enhancing overall satisfaction in an increasingly personalised marketplace.
(The author of this article is Rahul Johar, Founder & CEO, Oxbow Brands.)
