Marketing Plan for Aashirvaad (ITC)

Submitted by: Group-4

Team Members
Amit Anshu | Roll No: 5B
Ammrita Sharma | Roll No. 6B
Danendra Bhatnagar | Roll No. 13B
Siddharth Sood | Roll No. 47B
Sunil Tripathi |Roll No. 49B
Rachna Khurana | Roll No. 53B
 Executive Summary
ITC’s Aashirvaad portfolio,

▪ Has 45 value added products, appeals to changing consumer preferences,

▪ ITC Aashirvaad has already established leadership as the number one branded atta among national branded players within barely
two years of launch.

▪ ITC Aashirvaad is offering customised atta blends in wheat flour category in accordance with regional preferences;

▪ Has entered in health segment with its has sugar release control atta, and multi grains etc

▪ Aashirvaad has also extended brand into cow ghee and also launched Aashirvaad milk in march’18.

▪ Per capita consumption and penetration lines of most FMCG categories in India are relatively low as compared to other south
Asian countries.

▪ The brand has been growing at the rate of 16-17 per cent CAGR over the last many years with Pre-tax Profit increased by 15.3%.

▪ Currently Aashirvaad has market value of 4200 crores and plans to make it 10000 crores.

▪ The company is also evaluating some other segments like maida, suji, besan for expansion of Aashirvaad brand. 45 value added
products,
 Mission and Vision
▪ Strengthening Aashirvaad's position as one of India's most valuable brand.

▪ Achieving leadership in each of the product segments within a reasonable time frame.

▪ Achieving a Return on Capital Employed (ROCE) in excess of the Company's cost of capital, at all times.

▪ To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable
stakeholder value.

▪ Sustain ITC's position as one of India's most valuable corporations through world class performance, creating growing value for
the Indian economy and the Company's stakeholders
 Standard of Performance

- FMCG Revenue gross – Non Cigarette

Segment 2018 2017 Goly(%)

Revenue 11329 10512 7.8

Capital Employed 6711 6508 3.1

Reported Gross Revenue for FY18 not comparable a/c

GST transition; Comparable FMCG

Business growth for FY18 at 11.3% as compared to

reported growth of 7.8%
Rapid scale up of FMCG businesses
 Marketing Objective

▪ To generate around Rs 65,000 crore from packaged foods through Aashirvaad brand by 2030 to reach its
target of Rs 1 trillion revenue from non-cigarette packaged goods by that time,

▪ ITC sets goal of generating Rs 10,000 crore from the Aashirvaad brand annually over next five years.

▪ Penetrate ITC products at micro-regional regional level – having product for a particular town, state,
community or a socioeconomic class
Situational Analysis
 Marketing Strategy
Marketing Mix
Products

ITC

Information Paperboard &

Technology FMCG Agri-Business Hotel
Packaging

Cigarette Stationary Food Personal Care Lifestyle Retailing

 Food Business
Brands as per different categories --

Ready to
eat
Conf
Snac
ect-
Food k Snack
ioner
Staples Business Food
Foods
y
s
Confection
ery

May 2002
Aashirvaad Whole Wheat Atta has
become the number one in branded
packaged atta across the country.
Journey of Aashirvaad
March 2005 May 2005 March 2006
ITC then forayed into the With a range of 4 dishes,
Aashirvaad Select, a
branded spices market with Aashirvaad introduced its
premium quality atta
the launch of Aashirvaad Instant Mix products.
made from the King of
Spices in North India.
Wheat was launched. It
is 100% MP Sharbati
wheat
 Journey of Aashirvaad contd…

March 2007 May 2010 March 2016

Aashirvaad then entered the branded
salt market with Aashirvaad Salt
and ensured that only the most
hygienic iodized salt reached the
kitchens of the Indian household.
Aashirvaad Atta with Multigrains gives Aashirvaad launched Aashirvaad
you the wholesome goodness of six Sugar Release Control Atta, which
different grains – wheat, soya, channa, is clinically tested to have a GI
oat, maize and psyllium husk. value lesser than 55.
Place - Distribution Channel

Model 1: Large Cities, Metros, and Geographical Areas With High Demand

Company C&F Wholesaler Retailer Consumer

Model 2: Cities as compared to model 1, the distribution area is small

Company C&F Retailer Consumer

Model 3: Small Towns

Company C&F Semi-Wholesaler Consumer

Proposed Distribution System For Business Users

Agent /
Company Wholesaler Consumer
Broker
 PROMOTION STRATEGY

▪ Customization as per the target market region

▪ Aggressive advertisements in television targeting Indian housewife

▪ Exclusive Aashirvaad Stores

▪ Tie-up with Government to sell Aashirvaad atta at military canteens at a subsidized rate
▪ Informative Advertising used for new variant launches
▪ Newspapers the most effective media targeting Industrial Buyers
▪ Using scientific evidence as message execution style
▪ Magazine Ads
▪ Persuasive advertising
 Market Segmentation
Buyer Persona
▪ Demography- Income and Occupation
▪ Geography- Urban, Semi- Urban and Small
cities.
▪ Income- High Income and Middle class
▪ Occupation- Working women and Housewives.
▪ Age Group- >20 yrs.
▪ Concerns- Time crunch, Quality of wheat,
Freedom from non-productive work and
Convenience.
▪ Perceived Barriers- Cost, Availability and
False propaganda.
Target
▪ Growing Middle Class-Large no. of youth joining
work force.
▪ Women and Young Family Members- Changing
Family system and lifestyle changes , Nuclear
families becoming a trend of present.
▪ Housewife's- buying ready-made atta by a housewife
is an expression of the freedom she has now come to
enjoy.
▪ working Women-to express their contribution towards
the well-being of the family , availability of time for
family and convenience.
▪ Buy high quality wheat direct from Farmer-
scalability of production will help in reducing input
cost.
▪ Retailers- More inclined towards keeping local brands
due to high margins.
 Sales Promotion

• Free 1 Kg packs of Aashirvaad

• regions where the penetration of the branded atta is low
• Free packs of Aashirvaad salt to be bundled with Aashirvaad 1 kg atta packs
• The company can collaborate with all the fast food retail chains, restaurant A discount coupon for those
fast food chains can be given along with Aashirvaad atta packs
• Free Samples through distribution at post public areas such as malls and multiplexes
• Contests for house wives (Chatur-Grihni)
 PRICE STRATEGY

Company or business needs to review four factors to arrive at a price: Aashirvaad Atta Pack Size (gms) Price (Rs.)
Pricing objectives, cost competition and demand. Along with cost
Whole Wheat Atta 1000 50
and pricing objective emphasis should be given to the competitor’s
price while setting the price for entering a new market that too in a
retail sector and a new sector keeping the price in line with
Whole Wheat Atta 5000 175
competition or less is called the penetration marketing strategy.
Aashirvaad ataa should be considered the premier product as unpackaged
atta less priced compared to the packaged food. Other players in Whole Wheat Atta 10000 340
this segment are Pillsbury, Shakti bog etc. company decided to go
with going rate pricing strategy.
Multigrain Atta 1000 54
▪ Branded atta has 56% market share, out of which 28% market
captured by Aashirvaad ataa
Multigrain Atta 5000 185
▪ Company opted for the Going rate pricing strategy though offering
better quality as wheat is directly taken from farmers, they have
more cost advantage as compared to competitors
Multigrain Atta 10000 360
▪ Competitive pricing w.r.t players like Pillisbury, Shaktibog etc

Prices for different flavors

 Evaluation & Implementation

• Use psychological pricing (multi-grain-variant atta) in niche segment (high profit margin)

• Direct one to one relationship between price, value and quality-Going Rate Pricing.

• Follows the competitor's price to offer superior product and thus offer higher perceived value

• Higher Quality --- > High Price

• Same Price -- > Higher Customer perceived value

• Reduce distance to market (from factory) to ensure freshness

• Launch ready-to-bake roti (Indian bread), with a five-day shelf life, later this year, hopefully by winter

• Launch 7-8 variants of atta—produced with different blends of wheat—this year

Thank you !