Scent of success

In early 1980s, the Aroras went against the grain. Though the Gurgaon-based family had been in the business of rice since 70s, the product was nothing more than a commodity—much like masalas, salt and cooking oil—that could be bought by consumers from a nearby mom and pop store. For traders too, branded rice was still not grist for the mill.

Things, however, started changing in 1985. “We were the first in India to launch branded rice in 1 kg and 5 kg packs,” recounts Ashwani Arora, managing director and CEO of LT Foods, the makers of Daawat brand of basmati rice that hit the market in 1985.

Three decades down the line, the move to toe the branded route is what separated wheat from the chaff, men from the boys, and Daawat from the rest. It has turned out to be one of the biggest basmati brands in India, is available across 65 countries, and the business of branded rice now contributes over 70% of revenue to LT Foods.

From first rice brand to go on television to the first in the segment to rope in celebrities such as chef Sanjeev Kapoor and megastar Amitabh Bachchan, Daawat transformed itself into one of the few homegrown brands that grabbed humongous mindshare.

The going though was not easy. The fickle nature of the commodity business cluttered with hundreds of unorganised players, inconsistent quality of rice available in the market and unpredictable nature of consumer behaviour were the major deterrents. The Aroras, however, took a huge leap of faith. “We were confident that Indian consumers wanted a brand that could offer finest quality of basmati rice,” recalls Arora. From longest grain for Biryani to pearly white grain for pulav to sizeable varieties for chefs, Daawat enjoys the highest level of trust among all kinds of consumers, he asserts.

LT Foods, reckon marketing experts, cooked rice into a brand. All brands and super-brands, once upon a time, were commodities. Rice, to that extent, is a commodity. It then morphs to be a quasi-brand, when there is a distinct and yet faint recognition of different kinds of rice such as Sona-masoori, Ponni, Basmati and 116 different varieties consumed in India.

“Daawat has emerged out of the clutter of basmati varieties as a brand,” contends brand strategist Harish Bijoor. Today, he lets on, it is most certainly the lead brand of recognition in this space. “Think premium rice today, and you think Daawat. That is the power of brand-building,” avers Bijoor.

While Daawat has maintained its brand positioning and perception of being a leader since the beginning, Bijoor reckons that there might be others offering arguably superior quality offerings of basmati in the country. But they survive in niche pockets and couldn’t build a brand. “That’s the difference between a rival and Daawat,” he says.

Bijoor, however, sounds a word of caution for Daawat. The brand has rolled out multiple offerings in different price ranges, in an attempt to expand its appeal and lure new consumers. “There lies the danger,” he says. Reason: Basmati is the grain for the rich. There is really no democratising that. “If you democratise, you do it at the peril of the mother brand,” he opines. While Daawat has been broad-basing its appeals with different colour codes and sub-brands, it still remains the mother brand that is recognized and trusted as Basmati. As it adopts different avatars under one brand, it is important to distinguish each clearly. Every sub-brand needs to position itself clearly. “If that is messed up, then Daawat takes a beating of confusion,” he says.

Arora, for his part, believes that the only way ahead for the brand is to have as many eaters as possible, something which can be achieved by offering different-priced sub-brands with innovative features for various strata of population. Take, for instance, Eco-life brand which is organic with international certification. Then there is Daawat Quick Cooking Brown Rice, which Arora claims to be enriched with natural fibres, vitamins and minerals. There’s also ‘Rozana Gold Plus’ that offers a mix of 80% basmati rice and 20% quick cooking brown rice. “There are many more innovations in the pipeline,” says Arora as he savours the scent of success.