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Brand Audit On ITC Limited
Brand Audit On ITC Limited
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
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
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
The company has recently created print and television advertorials to reassure consumers that
Wide Fresh
variants
Hygienic Urban
market
Modern
packaging Expensive
Aashirvaad Atta
Retained
nutrition
Availability
Premium Light &
quality 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
‘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 know-
how, 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
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
Brand Tactics
PRICE
INR 65-140 Targeted middle class Indians Costly in comparison with
Penetrative pricing policy unpacked local attas
PROMOTION
E-choupal
Campaign of ‘Spread the Less effective promotion
smile’ for new variants
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:
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
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
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.
-
References
at: https://www.complaintboard.in/complaints-reviews/aashirvaad-atta-l130766.html.
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].
Kale, K. (2018) Plastic In Aashirvaad Atta? No, It's Gluten: A FactCheck | | BoomLive.
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
Müller, B., B. Kocher, and A. Crettaz. (2013) The Effects of Visual Rejuvenation through
Nair, S. (2013) Brand Awareness and Retailer Perception of the Packaged Flour Brands.
Narasimhan, T. E. (2015) ITC follows the Aashirvaad trail | Business Standard News.
Nuffoods Spectrum (2015) Indian packaged wheat flour market growing at 19% to touch Rs
TBI Team (2018) How ITC e-Choupal Connects Corporate Giants, Farmers & Consumers.
Vaidyanath, K. (2014) 100 years of ITC: Corporate India's big success story - Rediff.com
2018].
Van den Bosch, A.L.M., de Jong, M.D.T. and Elving, W.J.L. (2005) How corporate
Vijayraghavan, K. (2007) Atta is emotional subject with Indians - The Economic Times.
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-atta-
presentation