Brand management pgp30127

Overview of Brand Extension

ITC Aashirvaad Atta

Submitted By:Arti YadavPgp30127

ITC ITC entered the branded Atta market

with the launch of Aashirvaad Atta in May 2002

ITC was incorporated in 1910 as a tobacco firm

ITC has established vital brands in the Branded Foods spacePersonal Care products segment Education & Stationery productsLifestyle Apparel business Agarbattis and Safety Matches segment.

Category: Branded Atta Market in India

2013 2014 20150

2000

4000

6000

8000

3000

4500

7500

Packaged Atta Market in India

Sales(in...

• Packaged wheat flour market in India is growing at a CAGR of 19% over the past three years

• It is expected to grow more than Rs. 7,500 Cr in current fiscal (2015-16)

Product: AASHIRVAAD ATTA

ITC launched its brand extension Aashirvaad Atta in 2002

It become the number one in branded packaged atta industry

The other variants such as Select atta, Multigrain atta were also launched later

Growth of Aashirvaad atta in Indian Market

2013 2014 20150%

10%

20%

30%

40%

30%(900cr. )

26% (1170 cr.)

35% (2625 cr.)

Market Share(%)

Market Share(%)

There has been a consistent increase in the market share of Aashirvaad atta even after a dip in the % value

SEGMENTATION & TARGETING Geographic:Urban

Demographic(income):Higher income groupUpper middle income groupMiddle income group

Demographic(Occupation):HomemakersTargets the "Woman" of the Indian household

POSITIONING Central idea is to offer consistency in quality

and healthy variants over competitors Aashirvaad Whole Wheat Atta - 0% maida

and 100% Atta Aashirvaad Select Atta: ‘100% MP Sharbati

Wheat’ Aashirvaad Atta with Multigrains: integrated

mix of six different grains – wheat, soya, channa, oat, maize & psyllium husk which gives a healthy option for the consumers

Marketing Mix – 4Ps

Packaging: superior and innovative packaging PET Poly, Madhubani painting design showcasing the farming process

Aashirvad select Atta (5 kg pack) was awarded the World Star Award for Excellence in Packaging in the Consumer Pack Category

Variants: Aashirvaad Whole Wheat Atta, Aashirvaad Select Atta, Aashirvaad Atta with Multigrains

SKUs:Aashirvaad Whole Wheat Atta: 500 gms, 1 kg, 2 kg, 5 kg, 10 kgAashirvaad Select Atta: 1 kg, 5 kgAashirvaad Atta with Multigrains: 5 kg, 10 kg

ProductProduct

Marketing Mix – 4Ps

Currently follows going rate pricing Prices are kept so as to match

competitors price like Pillsbury, shaktibhog etc.

PricePrice

Marketing Mix – 4Ps

Direct sourcing model: e-Choupals network to buy wheat directly from the farmers - Khush iyaan Chun Chunke

Distributed by wholesalers to retailers, and malls

Widely present in Urban market ITC has extensively used its

distribution channel in order to mark

PlacePlace

Marketing Mix – 4Ps

 Aggressive advertisements through print media, television etc.

Use of digital marketing

Emotional connect

PromotionPromotion

Competitor Analysis

Current Market Share Current size of branded atta category: more than

5,500-crore(forecasted 7500 cr FY 15) In FY 14, industry size was 4500 crore Aashirvaad held the Strongest market share(35%) Competitors: Shakti Bhog, Pillsbury, Nature

Fresh and Annapurna 

35%

12%

10%

43%

Market ShareAashirvaad

Shakti Bhog

Pillsbury, Nature Fresh, and Annapurna

Other Several Regional

Points of Parity Prices are kept so as to match that of

competitors Similar SKUs Similar packaging styles & variants of

atta Stress on health and wellness

Points of Difference  Direct sourcing model:

to ensure consistent quality 

Better pet poly material and design for packaging

References GMID database http://www.fnbnews.com/article/detnews.asp?articleid=

37433&sectionid=1 http://www.aashirvaad.com/products.aspx http://www.indiaretailing.com/7/42/43/13573/Packaged-

wheat-flour-category-witnessing-double-digit-growth-IKON

http://businesstoday.intoday.in/story/how-itc-foods-chitranjan-dar/1/206328.html

http://archive.financialexpress.com/news/itc-s-diet-plan/1043344

http://www.decisionanalyst.com/publ_art/marketsegmentation.dai

http://www.itcportal.com/media-centre/press-reports-content.aspx?id=383&type=C&news=Atta-emotional-subject-Indians

http://theglobaljournals.com/gra/file.php?val=April_2013_1366188940_56e88_09.pdf

THANK YOU!!!