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How Sweet Karam Coffee became a market leader?

From ā‚¹2000 investment to ā‚¹20 Cr in revenue

I wake up every day to the strong coffee aroma. I put on weight because of the snacks I munch on daily, and do not even get me started about the sweets I give my friends. They love it šŸ˜ But I miss all that as I enter the city :(

I miss those homemade snacks, sweets, and coffee, no matter how fancy food I get to eat in restaurants and hotels. And that's the life of todayā€™s most young Indians.

Right at the needed moment, Sweet Karam Coffee entered the market with a Unique Selling Proposition šŸ¤— selling Indian snacks in the homemade style without preservatives.

All our products are made of premium quality ingredients exactly how our own mothers or grandmothers would do this in their own kitchens. Palm oil is cheap, it has extended shelf life, but if we if we wouldnā€™t use it in cooking for our own families, why should we use it in the business?

Says the co-founder Nalini Pratiban.

So sweet, right? Once started with a ā‚¹2,000 investment, now owns the authentic snack space globally. But how and what did it do to become so popular?

Let's see...

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Sweet Karam Coffee is a brand that brings authentic Indian snacks and sweets to the modern consumer. Known for regional delicacies free from preservatives, Sweet Karam Coffee stands out by staying true to traditional recipes.

It all started on a 2015 rainy Diwali day when a family of foodies missed their grandma's signature traditional Indian snack, bakshanams. Their efforts were in vain, even after hunting several shops for palm oil-free snacks. And, this formed the root for today's SKC.

Started by wife and husband Anand Bharadwaj and Nalini Parthiban and managed by Srivatsan Sundararaman and Veera Raghavan, SKC delivers its products in 36 countries today, making more than ā‚¹8.5 crore.

They also raised funding of ā‚¹12 crore from VC firm Fireside Ventures for expansion. It targets customers looking for nostalgia and quality, making it a leader in the niche market of preservative-free snacks.

Customer Understanding

Sweet Karam Coffee understands its core customers better - people who crave traditional, preservative-free snacks with an authentic touch.

These customers are often health-conscious individuals, families, and older generations who have fond memories of homemade snacks.

However, their target audience is not limited to just one demographic. The brand addresses consumers with different needs and preferences.

1. Health-conscious consumers

One segment of Sweet Karam Coffeeā€™s customers includes individuals who choose healthier options than mass-produced snacks.

These customers are highly selective about what they eat as they prefer products free from preservatives, artificial flavors, and chemicals. Since they want more organic, they value traditional snacks, which they think are more natural, wholesome, and homemade.

Do you know that 64% of urban consumers in India preferred natural, preservative-free snacks, according to a 2023 survey? It perfectly aligns with Sweet Karam Coffeeā€™s focus on authentic products.

2. Nostalgic snack lovers

A chunk of the customer base for Sweet Karam Coffee includes those who seek the nostalgic flavors of regional delicacies.

These people may have grown up in traditional Indian households, where snacks like murukku, athirasam, or mysore pak were homemade and enjoyed with family.

As urbanization and modern lifestyles have reduced the availability of these snacks, Sweet Karam Coffee bridges that gap by providing the same homemade taste that people miss.

And you can check their motivation and inspiration on their Our Story page here.

Sweet Karam Coffee has received feedback from multiple NRI customers, who describe the brandā€™s snacks as ā€œa taste of home,ā€ making it a popular choice for everybody.

You can check out testimonials in the highlighted section on their IG profile.

3. Busy urban families

Many families are looking for convenient yet healthy snacking options with quality and authenticity but are too busy to prepare from scratch.

Sweet Karam Coffee provides a perfect solution for these consumers by delivering traditional homemade-style snacks with the click of a button.

In a customer feedback survey conducted in 2023, 72% of respondents said convenience was a primary reason for choosing Sweet Karam Coffee.

Product-Led Strategy

Sweet Karam Coffee's product-led strategy has been the cornerstone of its growth and success. By focusing on high-quality, traditional Indian snacks, the brand stood differentiated in the competitive snacks market.

Their approach is rooted in selling a product that solves consumer problems - finding preservative-free, authentic, and traditional Indian snacks, which are otherwise difficult to source in modern retail stores.

Unique product differentiation

Sweet Karam Coffee has carved out a unique niche with several traditional Indian snacks and sweets using age-old recipes. This focus on authentic, regional dainties helps the brand stand out from mass-produced snacks that dominate the market.

Their products focus on South Indian snacks like murukku, seedai, thattai, and athirasam, along with popular sweets like mysore pak, laddu, and halwa.

These snacks are made without artificial preservatives to ensure consumers receive a product as close to homemade as possible. Check out this YouTube video: Did you ever have such a conversation with your grandparents?

Unlike many brands focusing on a mass market with generic products, Sweet Karam Coffee takes pride in preserving culinary traditions. This authenticity attracts older generations and younger, health-conscious customers who value natural ingredients.

Innovative product variants

Sweet Karam Coffee innovates within its product range, offering limited-time products and festival-specific hampers. This strategy creates excitement and urgency among customers while tapping into people's emotional connection with Indian festivals.

For instance, during Diwali, the brand releases special snack hampers with sweets and savories traditionally eaten during the festival. Hereā€™s a screenshot of the sale now:

These personalized and seasonally relevant products address customersā€™ cultural and emotional needs, further strengthening brand loyalty. Seasonal things, such as Diwali and Pongal hampers, contributed to a 25% spike in sales during festive periods in 2023.

Digital product expansion

While Sweet Karam Coffee has always maintained its traditional roots, it has adopted modern digital strategies to expand its product reach.

By leveraging e-commerce platforms, the brand reached customers across India and even abroad. Their user-friendly website, with simplified online ordering, makes it easy for customers to access their favorite snacks without visiting physical stores.

Additionally, the brand uses personalized email marketing and social media to promote new products and limited-time offers, directly engaging with its audience in a personalized and authentic way.

In 2023, Sweet Karam Coffee saw a 40% increase in online orders, driven by its digital presence and product-led campaigns, particularly on Instagram and Facebook.

Right now, they have a massive following of 1,25,000 on Instagram, engaging with the audience in all possible ways. Wait? Did you see that granny? Isnā€™t she calming?

Customer-centric customization

Sweet Karam Coffee prioritizes customization to improve the customer experience.

They offer customizable hampers and personalized packaging for special occasions like weddings, corporate events, and festivals. This customization aligns with the brandā€™s focus on making its products a part of customersā€™ personal and cultural celebrations.

  • Sweet Karam Coffee introduced customizable snack boxes in response to customer feedback, allowing consumers to handpick their favorite snacks and sweets. All this increased overall sales by 18% in 2023.

Hereā€™s how they get customers to pick their options. You see that circled part?

A form on their website for customization.

The flexibility to create personalized snack boxes has been a unique selling point for the brand, enabling it to target various consumer preferences and tastes.

Execution

Sweet Karam Coffeeā€™s execution strategy blends traditional products with modern digital marketing tactics to drive growth. The brand uses its website to expand its reach across India and internationally. OMG, look at their menu. Is it not colorful (tasty)?

By offering a user-friendly online shopping experience, Sweet Karam Coffee has made it convenient for customers to access their authentic snacks, regardless of location.

Their digital marketing efforts are focused heavily on social media platforms like Instagram and Facebook, where they engage with a community of snack lovers by showing their product authenticity, sustainable practices, and customer stories.

For instance, hereā€™s a product release Instagram reel:

In addition to digital marketing, Sweet Karam Coffee uses a personalized approach to customer engagement. They offer customizable snack hampers for special occasions and festivals. This strategy meets individual preferences and boosts customer loyalty.

Their use of data analytics for tracking customer preferences and behaviors has allowed the brand to optimize its offerings and marketing efforts. These combined efforts have led to a 40% increase in online orders and higher customer retention rates in 2023.

Sweet Karam Coffeeā€™s product-led and customer-focused strategies produced impressive results, driving growth and brand loyalty. By blending traditional snacks with modern digital execution, the brand has seen a notable rise in customer engagement and orders.

Lessons from Sweet Karam Coffee

  • Digital channels are crucial for growth

The brandā€™s success in expanding through e-commerce and social media shows the importance of a strong digital presence.

By engaging customers online through personalized services, Sweet Karam Coffee created convenience and connection, leading to a 40% increase in online orders.

  • Authenticity drives loyalty

Authenticity is not just a trend today. It has become a sustainable way to build lasting brand loyalty, especially in niche markets.

Sweet Karam Coffee has tapped into a deep emotional connection with customers by staying true to their roots and offering traditional, preservative-free snacks.

Conclusion

Sweet Karam Coffee shows the power of authenticity, sustainability, and digital innovation in driving product-led growth. By focusing on traditional, preservative-free snacks and focusing on personalized products, the brand has engaged customers and built loyalty.

As they expand their reach and adapt to consumer preferences, Sweet Karam Coffee will be an inspiring example for other brands aiming to balance tradition with modernity in a competitive marketplace.

Did you decode why the brand is named Sweet Karam Coffee?
They named it strategically based on the product offerings:

Sweet: Mysore Pak
Karam: Chips, murukulu
Coffee: Coffee Powder

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