In June 2024, Mondelēz and Lotus Biscoff announced a strategic partnership to expand the company’s biscuit market presence in India.
The partnership intends to have a premium positioning to align with Indian consumers’ indulgent expectations.
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The companies also plan to develop co-branded chocolate products such as Lotus with Cadbury and Milka.
These co-branded products are expected to launch in the UK and Europe in early 2025.
Co-branding is a powerful strategy when a partnership comprises two well-known brands, as both brands have loyal customers and present a trustworthy image.
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Interestingly, when consumers try new flavours, Indian consumers (47%) are considerably more likely than the global average (29%) to be motivated by brand trust and familiarity.
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By GlobalDataThus, the use of Mondelēz’s established brand portfolio will be a competitive advantage in a consumer market driven by brand loyalty.
Premium indulgence is often aligned with celebratory or special occasions, so novel snacks can add an extra element of excitement and uniqueness to these moments, making the indulgence feel more special and memorable.
Indian consumers will be willing to pay a premium for snacks that are perceived as high quality or luxurious.
The co-branded partnership between Mondelēz and Lotus falls into this category; the brands should not find it a challenge to justify a higher price point.
In the coming years, the partnership will expect to witness success in revenue, as consumers in India associate international brands such as Mondelēz with high-quality product ranges.
In the long term, the partnership will need to look into a local flavour profile to maximise profitability.
In India, local cuisine is a key driver for trying new products.
The partnership will also have to deal with a market that continues to be influenced by rising prices and inflation.
International brands such as Mondelēz and Lotus will need to ensure that they have an affordable pricing strategy to compete with local players.
If Lotus finds a balance between high-quality experiences and affordable pricing, the chocolate brand will witness rapid revenue growth.
