Aashirvaad Atta Grp10

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Team Ten: Rahul Saraf Saurabh Awasthi Gitanshu Arora Preet Bani Alagh Mukul Chandola Tapabrata Ghosh

description

A class presentation for a project on aashirvaad atta

Transcript of Aashirvaad Atta Grp10

Page 1: Aashirvaad Atta Grp10

Team Ten:Rahul Saraf

Saurabh AwasthiGitanshu Arora

Preet Bani AlaghMukul Chandola

Tapabrata Ghosh

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Objective

• Analysing the status of Aashirvaad with respect to its competitors

• Carrying market research on perception of customers about the product and analyzing the findings

• Carrying out market research on the perception of distributors, wholesalers about the product and analyzing the findings

• Providing recommendations based on the study

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Methodology

• Primary survey of consumers • Primary survey of retailers, distributor and sales

people• Primary research on alternates of branded atta• Secondary research from online sources• Primary research on buying options available to

consumer, both in terms of brand and place

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Introduction

1910 •Established as imperial tobacco company of India•Focused on cigarettes and leaf tobacco businesses

1975•Made forays in hospitality sector•Runs 100+ hotels under brand names- Luxury Collections, Welcomhotels,

Fortune Hotels, Welcomheritage

1979•Entered paperboard business•Aimed to develop backward areas by providing education, environment

protection and community development

2000+•Started E-Choupal initiative in favor of small and poor farmers •Entered garment industry by wills lifestyle •Entered branded packaged food and launched ‘Kitchens Of India’ in 2001 •Launched Aashirvaad Atta, Sunfeast and Bingo

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ITC Limited• Annual turnover of US$ 8.31bn with market capitalization of

US$ 45bn• Employees over 25000 employees at more than 60 locations• Among the top 10 valuables companies in India, Fab 50

companies in Asia and part of Forbes 2000• Highly carbon positive, water positive and waste recycle

positive• Businesses include Cigarettes, Foods, Lifestyle Apparel,

Personal Care, Stationery, Safety Matches And Aggarbattis, Hotels, Paperboard, Packaging Printing And Infotech

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AASHIRVAAD ATTA• Introduced by ITC in May 2002 in Jaipur and Chandigarh• Initial promotion by giving atta pouches for free• Holds 56% market share• Buys directly from farmers through E-Choupal• Product range- whole wheat atta, multigrain atta and select

atta• Got world star award for excellence in the consumer pack

category for Aashirvaad Select

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Competitors• SHAKTI BHOG

– Introduced in 1970– Presence in 60 counties including USA, AUSTRALIA, NEWZEALAND, QATAR

• ANNAPURNA– Launched in 1998 by HUL– Atta range-farm fresh, multigrain and special– Tagline- ”EXTRA JO KISI BHI AUR ATTE MEIN NAHI”

• PILLSBURY– Launched by general mills in 1998– Product range-chakki fresh, gold and multigrain– Tagline-”Dil Se Khao-good For Your Family’s Heart”

• LOCAL PLAYERS– Biggest threat– Give tough fight on price factor

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Financial Analysis

• On buying wheat and getting it grinded– Cost of wheat/Kg : Rs 22– Cost of Grinding/Kg : Rs 3– Cost of labour and transportation/Kg : Rs 2The total cost/kg of flour

• Getting it grinded is Rs 27/Kg• Grinded by themselves is Rs 25/Kg

• On Buying Branded Flour from the market– The cost of buying from retailers is Rs 28/Kg

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Consumer Survey

Yes62%

No38%

Do you buy branded atta?

17%

53%

17%

7%

7%

Current Brand used

Annapurna

Aashirvaad

Shakti Bhog

Pillsbury

Other

44%

24%

28%

4%

Reasons for Buying Non-Branded Atta

Do not trust the purity of the packaged flour

Cheaper to get it grinded

Believe in traditional ways

Other

Trust

Quality

Price

Availability

Better advertisement than others

Nutritional Value

Other

0 5 10 15 20 25

Reasons for buying the Brand

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Distribution Channel

• Traditional Channel

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Distribution Channel

• Modern Wholesale Channel

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Channel• MODERN RETAILERS

• ONLINE SHOPPING

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Distributor’s Views• Not an exclusive distributor of Aashirvaad• Margin 2.85%• Gives credit period of 15 days• Requires minimum capital, Area and FMCG knowledge• Verticals T

raders

Small Kirana ShopsFood Retailers

HoReCa

HotelsRestaurantsCaterers

SCOs

Small and Large businessOffices and CompaniesInstitutions Entrepreneurs

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Sales Team• AC Nielson Survey• 110 retail outlets for branded atta /1lac population• 40 retailer visits/day by a DSM

National Sales Manager/ Vice President(Sales)

Regional Sales Manager/ Zonal Sales Manager

Assistant Sales Manager

Sales Officer

Distributor Sales Person

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Retailer’s Voice

• Margin in local Atta is much higher (Rs 15 to 20) than that in branded ones

• Extra Profit in case of modern wholesalers like Walmart’s Best Price and Metro Cash and Carry

• Competition forcing to sell far below MRP(Rs 380)• Reconfirmed that consumers more aware

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ITC’s Focus On Premiumization

• Fiama Di Wills• Choco Fills Dark Fantasy• Paperkraft• Aashirvaad Select– Madhya Pradesh’s Sharbati wheat– All ads focusing on the premium brand

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Aashirvaad’s Presence On Social Media

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Recommendations

• More stringent packaging laws – complaints of rodents and insects are avoided

• Advertise more in the rural areas – Educate the masses there about the purity of the product. – Huge opportunity ,first mover.

• Different offers for rural areas – Boost sales.

• Increase the incentive for distributors and retailers.– Motive to push the product higher margins than local

brands.

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THANK YOU