Marketing Planning Project

ITCs Aashirvaad Atta

Prakhar Dadhich (10P158)
Rahul Kumar (10P162)
Sandeep Mohanty (10P168)
Sharad Deep (10P170)
Sumitra Sridharan (10P175)
Vineet Singh (10P180)
Submitted By
Group 7, Section C
Submitted to
Dr. Avinash Kapoor
MDI Gurgaon
Introduction
Indian Packaged Food Market
Estimated to be US$
10 million
Expected to reach
US$ 20 million by the
year 2014
4 percent of the
overall F&G market
Expected to reach 5
per cent of F&G
market by 2014
Source: http://www.technopak.com/Perspective/vol3/Opportunities%20in%20the%20Packaged%20Food%20Market%20in%20India.pdf
Launched on 27th May 2002
Number one branded packaged Atta across the country (Market
Share of 55%)
ITCs Aashirvaad Atta
Objective & Methodology
Company and product analysis
SWOT analysis of both ITC and Aashirvaad Atta
Competitor Analysis
Marketing Mix (4Ps) analysis of all major competitors of
Aashirvaad Atta
Marketing survey
Understanding consumer behavior, preferences and buying
pattern
Methodology
Objective
To understand the factors which has put Aashirvaad Atta at the top
To identify future challenges to retain top position
SWOT Analysis ITC (Packaged Food Industry)
STRENGTHS:
Wide Distribution Network
Presence in Varied Sectors
E-Choupal
Quality
WEAKNESSES:
Negative Tobacco Influence
Revenue Dependency on Tobacco
Products
OPPORTUNITIES:
Emergence of Hyper-Markets
Low per Capita Consumption of
Packaged Food Product
THREATS:
Domestic Competitors
International Competitors
Government Restriction on
Tobacco Industry
ITC
SWOT Analysis Aashirvaad Atta
STRENGTHS:
Market Leader
Quality Focus
Utilization of E-Choupal
Wide Range of Product
Packaging
WEAKNESSES:
Premium Priced Product
No Rural Market Focus
Lack of Advertisement
OPPORTUNITIES:
Growing Market
South Indian Markets
Collaborate with fast food chains
THREATS:
Local Chakki Atta
Domestic Competitors
International Competitors
Aashirvaad
Atta
Competitor 4Ps Analysis HULs Annapurna Atta
Made from premium quality wheat grains
Grains are grounded using advanced technology so
that the Atta absorbs more water while kneading
Product
Price of 10 kg Annapurna Atta is Rs 274
Very high compared to that of Aashirvaad Atta and
other brands in market
Price
Presence is restricted to a few south Indian cities
Withdrew from the north Indian markets due to low-
margins and increasing competition
Place
Main promotion through Television, Print Media,
Cinema and Hoarding
Coupons issued by manufacturers to increase the
sale
Promotion
Competitor 4Ps Analysis Local Chakki Atta
100% guarantee of freshness of Atta
Also sold in packets by local kirana stores to
provide the essence of hygiene and convenience
Product
price is combination of the price of wheat and the
cost of getting it ground
The price of depends on the type of wheat bought. It
may vary from Rs.16 to Rs. 30 per kg.
Price
Present at specific locations within cities and their
location and availability is known
Also available in rural market abundantly
Place
Unorganized sector; does not use any promotion
strategy
Depends on word-of-mouth publicity
Promotion
Competitor 4Ps Analysis Pillsbury Atta
Differentially positioned on the softness factor. softness for over 6
hours
Started offering healthier Atta than refined wheat flour
Launched products keeping in mind regional preferences
Product
Price is kept at a little lower value than its main competitors branded
Atta
But higher than local Chakki Atta and local brand
Price
Distribution channel with its products distributed in more than 500
towns and around 1 lakh outlets
Presence is stronger in supermarket stores but weaker in kirana
store outlets.
Also available in rural market abundantly
Place
Advertisement has been very influential and successful
Promotion mainly focuses on housewives and mothers
Retail and point-of-sale space its visibility is very low
Promotion
Competitor 4Ps Analysis Nature Fresh
Boasts of six product categories
Nature Fresh Gold, the new product is made out of
pure desi wheat
Product
price is comparable to its competitors price
Nature Fresh Gold (Premier Atta) is available at Rs
92 for a 5 kg pack; almost double the price
Price
Available across 1.1 lakh retail outlets in about 600
towns and cities
Available both at the small retail shops as well as
big chains such as Big Bazaar and Reliance fresh
Place
promotes through extensive advertising; use of
celebrities such as Soha Ali Khan
Gives freebies along with its products such as Tata
tea.
Promotion
Competitor 4Ps Analysis Shakti Bhog
Wide variety of food products
Produces three kinds of Flour
Product
1 kg is priced around Rs. 18 while the 10 kg pack is
available at Rs 175; almost Rs 6 difference per kg of
Atta with Aashirvaad Atta
Lowest price in the branded packaged Atta
Price
Available at both the bigger cities as well as the
smaller towns
Available in most supermarkets and local grocery
stores
Place
Promotes through television and print media;
Karishma Kapoor is the brand ambassador
Free gifts such as packet of Besan free along with
the 10 kg Atta pack
Promotion
Key Findings of Competitor Analysis
Annapurna, being higher priced than Aashirvaad, is losing out
Local Chakki Atta, Pillsbury and Shakti Bhog have a lower market price and
pose a significant threat to Aashirvaads market share
Local Chakki Atta, having a strong foothold in Tier2 and Tier3 cities is a
major threat to Aashirvaad Attas market share since it comes cheaper and
guarantees freshness
Aashirvaad Atta needs to improve its promotional strategy; others have
signed brand ambassadors and advertise more
Focus of Aashirvaad Atta on quality through its E-choupal initiative, PET
Poly packaging and a strong distribution network have enabled it to capture
the Atta market
Marketing Survey (Online and Field)
41.8% of the people surveyed consume 5-10 kg of Atta on a monthly basis. The ratio
is divided amongst the other three categories almost equally.
69.2% of the people surveyed prefer buying 5kg or 10kg of Atta. This indicates that
consumers prefer buying in large quantities so that do not have to come back to
shop frequently.
Only 10.4% of the people surveyed prefer buying from a wholesaler, suggesting that
people are more inclined towards the more hygienic and comfortable shopping
destinations rather than the conventional wholesaler.
Buying pattern of Atta
Marketing Survey (Online and Field)
Quality is the most important
factor affecting customers
choice
Price and packaging are also
very important factor which
the customer takes into
account while purchasing
Atta
People usually stick to the
product which they have
found satisfactory in the past
Free gifts is the least
important factor
Factors Affecting Customers preference
Marketing Survey (Online and Field)
Aashirvaad Atta is the
preferred brand of forty-two
percent of the total
respondents
Local Chakki Atta is revealed
to be the biggest competitor
of Aashirvaad Atta with
twenty-two percent
preferences
Aashirvaad Atta is the
market leader and the most
trusted brand in packaged
Atta
Brand Preference
Marketing Survey (Online and Field)
Customers Perception of Aashirvaad Atta
58 % of the respondents
believe that Aashirvaad Atta
is of good quality
Only 25 % of respondents
are satisfied with its
promotion
Customers are also satisfied
with the packaging and
highly satisfied with the
availability
Around 20 % think that the
brand is highly priced
Marketing Survey (Online and Field)
Key Findings of the Survey
Quality and past experience are most important factors which affect the
decision of customers while buying Atta
Aashirvaad Atta is the preferred brand of customers. Local Chakki Atta
comes next followed by Pillsbury Atta and other packaged brands
The company can improve the awareness by more advertising campaigns to
reach a greater customer base, to get greater customer share and to ensure
higher repurchase
Limitations of the Survey
Around 70 % of the responses were through online survey
Most of the respondents belong to a limited age group of 20 to 30 years
Almost all respondents belong to the middle and high-income group
Conclusion
The general perception of consumers towards Aashirvaad Atta is positive
about quality, availability, and packaging and pricing
ITCs wide distribution network and e-choupal initiative is one of the major
reasons which have put Aashirvaad Atta at the top
Aashirvaad Atta has many competitors Pillsbury Atta, Annapurna Atta and
the unorganized local Chakki Atta provide the stiffest competition to the
brand
Advertisement for the Aashirvaad Atta is found to be infrequent and recall is
low. So, the company can step up its advertising campaign to increase
awareness
Aashirvaad Atta can collaborate with Retail food outlets, Restaurants and
Sweet Shops, which are bulk customers of Atta and directly supply them the
product at a discounted price.
THANK YOU