Brand Audit On Itc Limited.docx

Brand audit on Aashirvaad Atta, an ITC’s product.

Introduction I will be providing an in depth look into Aashirvaad Atta and making strategic recommendations based on the relevant information I have found. I will be using secondary research to gain an insight into Aashirvaad’s brand exploratory which will cover consumer perceptions of Aashirvaad Atta and their competitors. Following this I will be conducting a SWOT analysis and providing the key brand challenges that Aashirvaad faces. The brand inventory will focus on Aashirvaad’s current brand strategy, tactics and overall performance. From this analysis I will be presenting recommendations that Aashirvaad could undertake to sustain and grow their brand equity.

Brand Exploratory Consumer Perceptions Aashirvaad atta is a brand of ITC Limited. ITC launched Aashirvaad packaged wheat flour in 2002. ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited. The name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974 (ITC Limited, 2018). ‘ITC is one of the India`s foremost private sector companies, rated among the World`s Leading Companies by Forbes magazine’ (Vaidyanath, 2014). ‘Atta is an emotional subject with Indian consumers and the quality of chapattis determines the mood around the dining table’ (Vijayraghavan, 2007). Aashirvaad has consistently innovated with taste, form and marketing methods and has successfully straddled the premium and mass market. ‘The special blends and granulations that the team has crafted, since the launch, for different markets have contributed to its success where the product is customized for different sets of consumers across regions where, in the North, atta is consumed daily’ (Narasimhan, 2015). Likewise, North Central region is the major consumer of the packaged wheat flour in India. According to IKON’s estimation for fiscal 2014-15, in terms of value, the North-Central region comprises almost 44% of the overall India’s packaged wheat flour market (Nuffoods Spectrum, 2015). ITC’s FMCG brands have achieved impressive market standing in a relatively short span of time. ‘Today, many of ITC’s products have assumed market leadership – Aashirvaad is No. 1 in branded Atta’ (Vaidyanath, 2014). On the other hand, many consumers have reported that it contains more than 50% rubber on it. Similarly, many customers have found insects and hazardous substances which are harmful for health inside the packet (Complaint Board,

2018). Many videos on social media alleged that because the dough stretches and holds it shape in spite of being run under water, it must contain plastic (Consumer Complaints, 2018) ITC, the maker of “Aashirvaad Atta” has been on a war-footing to curb the spread of misinformation surrounding its product. The first video claiming presence of plastic appeared in July 2017 on a local TV channel in Siliguri, West Bengal (Kale, 2018). The customer is bombarded by the advertisements of hundreds of brands on a daily basis, with each brand jostling for a share of the customer’s mind (Nair, 2013). The company has recently created print and television advertorials to reassure consumers that its product is safe for consumption.

Wide variants

Fresh Urban market

Hygienic

Modern packaging

Aashirvaad Atta

Expensive

Retained nutrition Availability Premium quality

Light & crisp

Competitor Analysis The Indian packaged wheat flour market consists plenty of brand, where each one is trying to distinguish themselves with origin of wheat, manufacturing process, quality, taste, textures and price to attract customers. Besides leading brands, there are more than 500 regional brands in India. Each flourmill has its own brand, sometimes even more than 2 brands of packaged wheat flour (Nuffoods Spectrum, 2015). ‘ITC’s ‘Aashirvaad’ is the clear market leader among the national players in branded packaged wheat flour market in India with occupying more than 35% market share where as several regional brands (produced by flourmills serving region specific market) together occupy major 40% share of market’ (Narasimhan, 2015). ‘Shakti Bhog with wider penetration holds almost 12% market share where as other national players such as Pillsbury, Nature Fresh and Annapurna occupies below 10% market share’ (ibid). ITC is hoping to follow the path that Aashirvaad took to get to the top spot for the rest of its branded foods business. Equally important, Aashirvaad promises the Indian housewife the joy of providing her family with the most delightful home-made rotis, made from the finest quality atta (ITC Limited, 2018). To the uninitiated, an ITC e-Choupal is an internet kiosk in the home of a fellow villager. An innovative model embedded with social goals, the ITC e-Choupal empowers farmers and hopes to trigger higher productivity and income through a host of services related to knowhow, best practices, timely and relevant weather information, a transparent discovery of prices, access to quality agri-inputs at competitive prices and so on (ITC Limited, 2018). This initiative has enabled farmers to make better choices and offered insights on better farm

practices. Also, these farmers now have better access to other markets, besides the organized mandated by governments, and quality inputs, resulting in higher yields (TBI Team, 2018). Unlike its competitors’, There is a strategic element to this initiative. By operating across the agri-value chain, ITC is able to source raw materials directly from farmers, thereby ensuring safe and quality food products for its FMCG consumers. Yet the farmers are free to sell to anybody and are not tied down to ITC with any written contracts (TBI Team, 2018).

Brand Inventory Brand portfolio Due to Aashirvaad Atta constantly gaining popularity, ITC has forayed into making different types of customized wheat flour attas which are good for health and suit the regional preferences of people (Pricilla, 2018). Aashirvaad Atta has now developed varieties in Atta. For instance, customers can choose from wide varieties of atta from Whole Wheat Atta, Sugar Release Control Atta, Select Atta, Fortified Chakki Atta and with multigrain (ITTISA, 2017).

Whole Wheat Atta

Sugar Release Control

Fortified Chakki

Select

Multigrains

Aashirvaad Sugar Release Control Atta consists of ingredients like oats and methi to ensure that this Atta is high in protein and fibre with a Low Glycemic Index (ITTISA, 2017). It releases its sugar slowly in the body and thus helps in preventing sugar level spikes. Aashirvaad Select is a premium quality atta made from the King of Wheat. The rotis made from Aashirvaad Select Atta have a delightful aroma and stay softer for longer (ITTISA, 2017). Fortification of flour is a cost effective method to help eradicate nutritional anaemia, vitamin and mineral deficiencies that impact children and adults alike (ITTISA, 2017). Also, appropriate intake of iron helps children develop physically and mentally, and improves the health of pregnant women.

Aashirvaad Atta with Multigrain gives the wholesome goodness of six different grains. These ingredients infuse proteins, vitamins, minerals and fibre into your diet. So one’s family can stay active, healthy and energetic, everyday (ITTISA, 2017).

Brand Tactics MARKETING MIX PRODUCT Whole Wheat, Sugar Release Control, Select, Fortified Chakki and Multigrain PLACE Present in retail stores and supermarkets PRICE INR 65-140

PROMOTION

STRENGTHS  Variety of nutrients and taste

WEAKNESSES 

Cluttered product information making it tough to understand



No wide sales through online portal



Costly in comparison with unpacked local attas



Less effective promotion for new variants

 Healthy and hygienic  Wide distribution network

 Targeted middle class Indians  Penetrative pricing policy

 E-choupal  Campaign of ‘Spread the smile’  Appeals to Indian housewives

Visual Identity ‘The symbols and graphical elements express the essence of an organization’ (Van den Bosch et al., 2005). This logo is an important part of this brand, as it makes a significant impact on a company's public perception. In fact, a logo is one of the most important branding investments a business can make. The logo of Aashirvaad depicts several meaning whereas it consists of wheat plant which symbolizes nature and farmers are interrelated with each other. Similarly, the term “Aashirvaad” means to give blessings to their loved or cared ones. It is realistic and feasible when organizations use a Corporate Visual Identity (CVI) change to improve their visual self-presentation as well as their identity and image (Müller et al., 2013).

SWOT Analysis Strength: i.

ITC offers a wide range of Aashirvaad Atta products to cater to different consumer demands. Apart from the basic brands, there are two high-end brands with some special ingredients.

ii.

ITC has its own packaging business and it utilizes its packaging business to come out with really superior and innovative packaging. The material used for packaging the Aashirvaad Atta is “PET Poly” which keeps the Atta fresh. Further, it also offers carton packaging and vacuum sealing for its premium packs.

iii.

Although ITC already had excellent distribution network for its cigarette products, it needed to develop new and different distribution infrastructure for its Aashirvaad Atta product. However, in the last 8 years it had really developed its distribution network and with its strong E-Choupal network it can compete with its competitors on the distribution front.

Weakness: i.

Aashirvaad Atta can be considered as a premium priced product, as it is very costly when compared to unpackaged Atta sector.

ii.

The focus of ITC is on urban market with respect to packaged Atta sector and with packaged Atta sector still being less than of the total Atta market; ITC can focus on rural market to capture more of the unpackaged Atta market.

iii.

ITC has focused more on the retail shop based promotion strategy. However, to attract more and more customers, ITC needs to promote it more using TV and other media promotion strategies.

Opportunities: i.

With the rise of modern retail formats, increasing disposable incomes and health awareness, the category is undoubtedly evolving. With the branded Atta market in India being very attractive in terms of size and consumption patterns, growth has also picked up pace with the Government’s proactive approach with the formulation of national food policy, reservation of select segments.

ii.

Apart from North India, which has always been very high in wheat consumption, ITC can concentrate in rice dominant regions such as Andhra Pradesh. Atta is used for making puri, which is a popular breakfast item for South Indians.

iii.

ITC can collaborate with fast food chains such as McDonalds, Pizza Hut and Subway. This has been an untapped market until now and tying up with these chains as their main flour supplier can open up a new window for ITC.

Threats: i.

Indian market is largely dominated by innumerable local flourmills and ‘Chakki Atta’, which are the biggest threat to Aashirvaad atta. Chakki Atta is still perceived as the best quality Atta and it is cheaper as compared to branded packaged Atta.

ii.

Obvious threat is the domestic competition. Competitors such as Annapurna and Pillsbury are doing their best to increase their market share.

iii.

Until now, the competition is mainly domestic. In future when Western companies will see India as an exciting opportunity for packaged atta, then the competition will get intense.

Key Brand Challenges Challenge: Perception of customers that unpacked atta is healthier than packaged one. Strategy: In fact, wheat contains essential nutrients such as carbohydrate, minerals, fats and proteins which may aid proliferation of microorganisms in products made from cereal grains and kept under improper storage condition (Khanom et al., 2016). As atta is most commonly used for preparation of various food products, their microbiological quality is important to consumer’s health. Due to varied geographical preferences and beliefs, to satisfy Indian consumer with standard offering remain the biggest challenge for marketers and so as the case with packaged wheat flour (Nuffoods Spectrum, 2015). It is the prime duty of ITC to aware the consumers about health knowledge and quality of the atta, so they would prefer to buy specific brands of packaged wheat flour showing the brand loyalty. In the case of branded products such as Aashirvaad, the consumer associates the brand name with trust and quality. Brands simplify the purchase decision thereby providing the consumer a shorthand device for making purchase decisions. Challenge: Sales of Multigrain variant is relatively less The challenge in the atta market is to offer variety, consistency and quality. Nowadays, launching a new variant isn’t difficult however; maximizing its sales and promotion is a delicate task. So, to gain success in the multigrain variant, ITC should provide information that it is a more improvised wheat atta than the other variants and acts as nourishment for consumer of all age groups.

Table 1 Appendix 1 Brand Plan Summary SITUATION ANALYSIS

AIMS AND OBJECTIVES

VISION: “Sustain ITC’s position as one the most valuable corporations in Indian business” Create growing value for the Indian economy and the company’s stakeholders

STRATEGIES Target women and young family members. Focus on growing middle class customers Maximizing the production to reach the economies of scale OBJECTIVES Increase volume of sales through wider distribution network Increasing brand visibility and customer perceived value of atta variants

STRENGTHS: Wide range of atta products as per demand. Superior packaging named PET Poly. Strong wheat procurement network i.e. E-choupal Generation of strong cash flow WEAKNESSES: Costly if compared with unpackaged attas. Only focus is on urban market. Lack in effective promotional strategies. OPPORTUNITIES: Food awareness is evolving in atta sector. Concentration in other states of India Supply flour to fast food chains like McDonalds, Subway, etc. THREATS: Aggressive competition of unpackaged, Chakki atta. Competitors are increasing their market share. Slow down in economy.

BRAND CHALLENGES: Not able to maximize the sale of multigrain variant. -

MARKETING MIX: PRODUCT Concentrate on niche variant like multigrain atta with psychological pricing. PLACE Exclusive atta stores. PRICE Decrease the price size in each pack by 5%. PROMOTION Aggressive advertisements focusing Indian housewives Informative advertisements for the launch of new variants.

IMPLEMENTATION PLAN MARKETING BUDGET Brand web design Game: Specialist Magazines/ publishing: Exhibitions Social Media: National TV ads: Billboards: Total (£Million):

CONTROL -

References Complaint Board (2018) AASHIRVAAD ATTA Complaints. [ONLINE] Available at: https://www.complaintboard.in/complaints-reviews/aashirvaad-atta-l130766.html. [Accessed 23 December 2018]. Consumer Complaints (2018) Aashirvaad Atta - Consumer Complaints Forum. [ONLINE] Available at: https://www.consumercomplaints.in/bycompany/aashirvaad-atta-a327874.html. [Accessed 30 December 2018]. ITC Limited (2018) ITC - History and Evolution. [ONLINE] Available at: https://www.itcportal.com/about-itc/profile/history-and-evolution.aspx. [Accessed 19 December 2018]. ITC Limited (2018) ITC Portal. ITC [online] Available from: https://www.itcportal.com/default.aspx [Accessed 24 December 2018]. ITTISA (2017) Aashirvaad. ITC [online] Available from: https://www.aashirvaad.com/ [Accessed 24 December 2018]. Kale, K. (2018) Plastic In Aashirvaad Atta? No, It's Gluten: A FactCheck | | BoomLive. [ONLINE] Available at: https://www.boomlive.in/plastic-in-aashirvaad-atta-no-its-gluten-afactcheck/. [Accessed 23 December 2018]. Khanom, A., Shammi, T. and Kabir, S. (2016) Determination of microbiological quality of packed and unpacked bread. Stamford Journal of Microbiology. Vol. 6(1). pp. 24-29.

Mitra, A., Naware, R., Dar, C., Sivakumar, S. and Grant, K. (2007) Business Today; New Delhi (Business And Economics), Dec 2, 2007, pp.1-72. Müller, B., B. Kocher, and A. Crettaz. (2013) The Effects of Visual Rejuvenation through Brand Logos. Journal of Business. Vol. 66,pp. 82–88. Nair, S. (2013) Brand Awareness and Retailer Perception of the Packaged Flour Brands. Journal of Business and Management. Vol. 13(1), pp.54-60. Narasimhan, T. E. (2015) ITC follows the Aashirvaad trail | Business Standard News. [ONLINE] Available at: https://www.business-standard.com/article/management/itc-followsthe-aashirvaad-trail-115122700595_1.html. [Accessed 23 December 2018]. Nuffoods Spectrum (2015) Indian packaged wheat flour market growing at 19% to touch Rs 15,500 crore by 2019-20. Bangalore: Nuffoods Spectrum. Pricilla, D. (2018) Aashirvaad Atta Review: A Comprehensive Look At Aashirvaad Atta. [ONLINE] Available at: https://www.smartwomanworld.com/aashirvaad-atta-review/. [Accessed 23 December 2018]. TBI Team (2018) How ITC e-Choupal Connects Corporate Giants, Farmers & Consumers. [ONLINE] Available at: https://www.thebetterindia.com/126690/connects-corporate-farmersconsumer-itc-e-choupal/. [Accessed 24 December 2018]. Vaidyanath, K. (2014) 100 years of ITC: Corporate India's big success story - Rediff.com Business. [ONLINE] Available at: https://www.rediff.com/money/report/pix-column-100years-of-itc--corporate-indias-big-success-story-/20141208.htm. [Accessed 19 December 2018].

Van den Bosch, A.L.M., de Jong, M.D.T. and Elving, W.J.L. (2005) How corporate visual identity supports reputation. Corporate Communications: An International Journal. Vol. 10 (2), pp. 108-116. Vijayraghavan, K. (2007) Atta is emotional subject with Indians - The Economic Times. [ONLINE] Available at: https://economictimes.indiatimes.com/opinion/interviews/atta-isemotional-subject-with-indians/articleshow/2247269.cms. [Accessed 30 December 2018]. https://www.slideshare.net/TarunShukla/marketing-strategy-for-itc-ltd-18358762 (For analysis) http://rahulkumarmdi.blogspot.com/2011/08/aashirvaad-atta-converting-commodity-to.html (SWOT Analysis) https://www.slideshare.net/aziz.razdan/marketing-management-project-itc-aashirvaad-attapresentation