Marketing Planning ProjectITC’s Aashirvaad Atta

Prakhar Dadhich (10P158)Rahul Kumar (10P162) Sandeep Mohanty (10P168) Sharad Deep (10P170) Sumitra Sridharan (10P175) Vineet Singh (10P180)

Submitted ByGroup 7, Section C

Submitted toDr. Avinash KapoorMDI 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%)

ITC’s 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)

SWOT Analysis – Aashirvaad Atta

Competitor 4P’s Analysis – HUL’s Annapurna Atta

Competitor 4P’s Analysis – Local Chakki Atta

Competitor 4P’s Analysis – Pillsbury Atta

Competitor 4P’s Analysis – Nature Fresh

Competitor 4P’s Analysis – Shakti Bhog

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 Aashirvaad’s market share

• Local Chakki Atta, having a strong foothold in Tier2 and Tier3 cities is a major threat to Aashirvaad Atta’s 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 customer’s 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 Customer’s 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)

Customer’s 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

• ITC’s 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