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 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

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 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

Sugar Release Control Select

Fortified Chakki 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 STRENGTHS WEAKNESSES

PRODUCT
Whole Wheat, Sugar Release  Variety of nutrients and taste  Cluttered product
Control, Select, Fortified Chakki information making it
and Multigrain  Healthy and hygienic tough to understand

PLACE  No wide sales through

Present in retail stores and  Wide distribution network online portal
supermarkets

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:

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
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
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.
-
AIMS AND OBJECTIVES IMPLEMENTATION PLAN
STRATEGIES MARKETING BUDGET
- Target women and young
family members. Brand web design
- Focus on growing middle class Game:
customers Specialist Magazines/
- Maximizing the production to publishing:
reach the economies of scale Exhibitions
OBJECTIVES Social Media:
- Increase volume of sales National TV ads:
through wider distribution Billboards:
network
- Increasing brand visibility and Total (£Million):
customer perceived value of atta
variants
MARKETING MIX:
PRODUCT CONTROL
- 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.
References

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