Marketing PPT

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

SWOT Analysis – ITC (Packaged Food Industry)

STRENGTHS:Wide Distribution NetworkPresence in Varied SectorsE-ChoupalQuality

WEAKNESSES:Negative Tobacco InfluenceRevenue Dependency on Tobacco Products

OPPORTUNITIES:Emergence of Hyper-MarketsLow per Capita Consumption of Packaged Food Product

THREATS:Domestic CompetitorsInternational CompetitorsGovernment Restriction on Tobacco Industry

ITC

SWOT Analysis – Aashirvaad Atta

STRENGTHS:Market LeaderQuality FocusUtilization of E-ChoupalWide Range of ProductPackaging

WEAKNESSES:Premium Priced ProductNo Rural Market FocusLack of Advertisement

OPPORTUNITIES:Growing MarketSouth Indian MarketsCollaborate with fast food chains

THREATS:Local Chakki AttaDomestic CompetitorsInternational Competitors

Aashirvaad Atta

Competitor 4P’s Analysis – HUL’s 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 marketPrice• Presence is restricted to a few south Indian

cities• Withdrew from the north Indian markets due to

low-margins and increasing competitionPlace• Main promotion through Television, Print

Media, Cinema and Hoarding• Coupons issued by manufacturers to increase

the salePromotion

Competitor 4P’s 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 publicityPromotion

Competitor 4P’s 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 brandPrice• 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 lowPromotion

Competitor 4P’s Analysis – Nature Fresh

• Boasts of six product categories• Nature Fresh Gold, the new product is made

out of pure desi wheatProduct• 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 4P’s Analysis – Shakti Bhog

• Wide variety of food products• Produces three kinds of FlourProduct• 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 AttaPrice• 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 packPromotion

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