Team Ten:

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

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
CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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
CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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


CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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

CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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
CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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 Familys Heart
LOCAL PLAYERS
Biggest threat
Give tough fight on price factor



CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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 2
The 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

CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
Consumer Survey
Yes
62%
No
38%
Do you buy branded atta?
17%
53%
17%
6%
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
0 10 20 30
Trust
Quality
Price
Availability
Better advertisement than others
Nutritional Value
Other
Reasons for buying the Brand
Distribution Channel
Traditional Channel

CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
Distribution Channel
Modern Wholesale Channel

CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
Channel
MODERN RETAILERS



ONLINE SHOPPING
Distributors 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
r
a
d
e
r
s



Small Kirana
Shops
Food Retailers
H
o
R
e
C
a



Hotels
Restaurants
Caterers
S
C
O
s

Small and
Large
business
Offices and
Companies
Institutions
Entrepreneurs
CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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
Retailers 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
Walmarts Best Price and Metro Cash and Carry
Competition forcing to sell far below MRP(Rs 380)
Reconfirmed that consumers more aware
CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
ITCs Focus On Premiumization
Fiama Di Wills
Choco Fills Dark Fantasy
Paperkraft
Aashirvaad Select
Madhya Pradeshs Sharbati wheat
All ads focusing on the premium brand
CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
Aashirvaads Presence On Social Media
CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY
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.

CONTEXT CHANNEL CONSUMER COMPETITOR COMPANY