![Amedeo Aragona, regional marketing head—Indian subcontinent, Kinder Brands.](https://cdn.i.haymarketmedia.asia/?n=campaign-india%2fcontent%2f20240820063912_Untitled+design.jpg&h=570&w=855&q=100&v=20170226&c=1)
Some things about India continue to amaze Amedeo Aragona, regional marketing head—Indian subcontinent at Kinder Brands, since he moved to the country a couple of years ago. The first is its vastness and varied cultural, visual and dietary expansiveness, which change every few kilometers.
He also noticed that Indians’ proverbial sweet tooth is much sharper than that of Europeans. This came as a huge learning to him, especially after he binged on local desserts during Diwali and later visited modern retail trade stores to understand how Kinder Joy could be positioned in the country, two decades after its foray.
Entering India with small, cautious steps—starting with the kid-focused Kinder Joy and mouth freshener Tic Tac—Ferrero slowly built up its portfolio in the country. Kinder Joy became synonymous for toys hidden inside the plastic egg, while Tic Tac started incorporating Indian flavours. Soon, the Italian chocolate company’s flagship product, Ferrero Rocher, tried building a market for luxury chocolates, promoting itself as a replacement for traditional Indian mithai (sweets).
Aragona is now the self-confessed Willy Wonka in his Pune neighbourhood where children and adults alike make a beeline to this house at every given chance. This corresponds to his overarching marketing strategy for Kinder Joy, as he wants the brand to be part of every occasion, and not just special moments. And this hinges on localisation.
He discusses with Campaign how India has emerged as the largest market for the brand, globally, and how using mom influencers for its marketing campaigns is paying sweet dividends for Kinder Joy.
Edited excerpts:
Kinder Joy rolled out larger toys featuring Mattel’s Barbie and Hot Wheels for the first time in India. What drove the decision to upsize and bring these iconic characters into the mix?
While we did not research on the toys’ size or these two brands specifically, there was general research some about its likeability. We used that to make this collection a good value proposition to our consumers, which comprises young children.
We annually research our entire collection of 40-odd toys to see which ones our buyers liked and didn’t to shape our toys strategy. Coming to the size, we have started the process of increasing it with these two Mattel variants and will slowly do it for all others.
While children are your core customers, people in the 20–50-year range also buy your products, especially collectibles like the limited-edition Harry Potter range. How will you grow this clientele?
You are right. Since Kinder Joy is perceived as young child’s product, toys within the egg are a core part of our brand strategy; many kids will buy it if the toy justifies the purchase. Now, we are moving towards Harry Potter and other licences that will make it an attractive buy for older kids and adults too.
Once or twice a year, we try to introduce new collectibles in collaboration with our global partners like Mattel, Warner Brothers or Disney. Here too, we work with the same price point to value proposition and it is aimed at keeping the excitement high for this customer base.
Are these toys manufactured at your Baramati factory?
Yes, we produce everything in the Baramati plant. This is to ensure stronger quality control and safety, since we are very particular about, as these toys will ultimately land in the hands of children.
Given the manufacturing capacity, does this facility produce for export too?
Yes, we export to the Gulf and Southeast Asian countries like Indonesia and Thailand as well as Brazil, which are big markets for Kinder Joy.
Kinder Joy swaps out its toys every three months, but how does the team decide what clicks in India? Do they lean more towards licensed toys like Mattel, which you have been associated with for long, or Ferrero’s in-house creations?
Basically, there are two processes. There are some toys that we internally call as mainstream or regular products, where we test the entire range. For instance, this September we will launch a range of dinosaurs. We ran a test with to check whether Indian children would like to play with dinosaurs, and only after getting an affirmative reply, we create the toys.
We also test the toys for our licensed partners, like Mattel, in India, including how many of these were purchased during a specific time frame. Our global team analyses this data and based on their recommendations; we finalise the product.
Have there been instances where suggestions about toys that can work in India, for e.g. Barbie in a saree, were shot down by the global team?
I'm not personally involved in the creation of the toys; I can influence the decision of the partner since I understand the market better. For example, I Barbie is stronger than Peppa Pig in India. I can also give recommendations about toy’s size, and accompanying accessories, but not the kind of details that you have suggested; though I would love to do that!
Since entering India 20 years ago, how has Ferrero leaned towards localisation to make Kinder Joy more relatable to the Indian consumers?
Our global brands like Tic Tac and Ferrero are very strong brands, but when you get young consumers to start their journey with Kinder, the goal is to create a unique taste. The group is working on some other brands and products where we are trying to include some Indian taste and even flavours like fruit and nuts. We are at an early stage, but are exploring this for young adult customers.
When it entered India two decades ago, Kinder Joy was an aspirational product. Since then, how has it scaled its portfolio and also made the brand more accessible to the mass market?
Initially, Kinder Joy had a test run with a small base in the South before scaling operations nationally. Back then, the market was dominated by chocolates that came in the form of tablets or bars, while our product had chocolate, spoon and a toy inside an egg. While some would view this proposition as a challenge, we saw it as an opportunity.
We overcame this barrier of being an aspirational product by investing extensively in our quality and communicating the value proposition to the market. As the only brand dedicated to kids, we don’t just give a snack, but also a super quality toy that enhances a child’s creativity.
Slowly, we added specific nuances to the product. The original white egg changed colours to pink and blue and then, we introduced Natoons, which is a green-coloured egg with animal toys. Later, we launched the Applaydu app, where parents and children could play with these toys.
So, do you still have Kinder Magic app in addition to Applaydu?
No, we earlier used to have Kinder Magic app and now we have Applaydu. The logic remains the same. Users can scan the toy with their mobile phone or iPad to download the app and play on it. Its content was developed by Oxford University, so in addition to games, it also has educational matter. As part of our pledge to International Food and Beverage Alliance (IFBA) global policy, we don’t do any advertising on this app, and its goal is to promote creativity.
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What is the app’s monthly active user base?
I can't share that, but India is the number one country globally for us, in terms of users, which is unsurprising given its population. However, our user engagement has grown rapidly from 5% when we launched the app in India in 2019 to around 40% of active users currently.
Your target group has changed as Kinder Joy is no longer consumed only by school going children as a midday snack, but is also enjoyed by an older demography. How has your communication strategy changed accordingly?
Since Ferrero adheres to the IFBA policy on marketing to children worldwide, we refrain from promoting its food products via TV, print, or online platforms targeting primarily children under 12. Hence, we communicate with parents, especially mothers of children aged three to six years.
When Kinder Joy first launched as a premium-priced product amidst a market of standard chocolate bars, how did you shift consumer perception from viewing it as a small, costly item to highlighting its unique value and appeal?
The value proposition can be a challenge when one compares a big chocolate chunk (averaging 60 to 100 grams) with a 20 gram one. But we are overcoming it by assuring parents that they get a high-quality product for their kids. With Kinder Joy, they know that the child will not overconsume the chocolate and will also get a toy to play.
What are some standout brand collaborations that helped amplify your brand’s presence?
We have an ongoing collaboration with Kidzania, where the Kinder Joy factory in their Mumbai and Delhi outlets always has a long queue of children waiting to participate there. We also launched Natoons at Kidzania.
Moreover, we have lots of collaboration with global partners like Mattel and Disney and have partnered with Discovery for an edutainment association with Natoons since this product is about animals. We constantly try to come up with new engagements with various brands, including working with mom influencers.
How are you strengthening your marketing to retain existing customers and attract new ones amid increasing brand options and the rise of health-conscious snacking?
We continuously create communications and activities about what Kinder Joy stands for, so that our customers are aware about the efforts we undertake around portion control, the quality of our products and the recipe we use. This helps build a loyal customer base and also recruit new consumers because they will realise that Kinder offers something different for their children.
Your last campaign, which was in May 2023, featured mom influencers. Since Kinder comes up with new toys every quarter, are you working on a new campaign?
We will be launching a new campaign in September, though I can’t reveal much about it right now. It has been conceptualised locally, because India is the biggest country for the company in terms of volume sales and is the point of reference for other countries where the brand is present.
So, we have lots of creative freedom on how to position Kinder Joy, within the brand boundaries. And often, the global group listens to what India is doing and even replicates it.
When did India become the biggest market for Kinder Joy globally?
It was post 2020 when consumption of chocolate grew like crazy, and we exploited this trend. Before that, the USA and Russia were the top two countries worldwide.
How do you use marketing to gain the confidence of traditional trade partners, which is responsible for 90% of FMCG sales, and secure prominent shelf space in a cost-conscious, inventory-focused environment?
When I came to India the biggest learning for me was how to manage the retail channel. So, on one hand, we created a specific price sensitivity meter (PSM) to be visible in stores in the best possible way and on the other, we invest a lot in communicating the value proposition about Kinder Joy’s toys and quality.
Ultimately, the demand comes from the retailer, and they should be interested in putting the product on the front shelf, which will attract impulsive purchases. This is the pull strategy that we have adopted and it is really working for us.