Itc’s foray into convenience food market
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Transcript of Itc’s foray into convenience food market
ITC Ltd. entered the convenience food market in India in 2003.
It introduced its convenience food products under two brand names,
'Kitchens of India' and 'Aashirvad', for the upmarket and middle-class
segment respectively.
The caselet titled 'ITC's Foray into Convenience Food Market'
examines ITC's launch and pricing strategy for these products in the
country.
The caselet also gives an overview of the processed food industry in
India.
ITC's use of retorting technology to ensure a long shelf life for their
processed food products is also touched upon.
Abstract
The emergence of the convenience food industry in IndiaMarket segmentation for convenience food Use of technology to ensure long shelf life for convenience food products
ITC was a dominant player in its traditional businesses of cigarettes, hotels, paperboards, packaging and agri-exports.
ITC ventured into the branded and packaged foods business with the launch of the 'Kitchens of India' (KOI) brand in August 2001 and the 'Aashirvaad' brand in 2002.
By entering the food business, ITC aimed at leveraging on its proven strength in the hospitality industry, packaging, and sourcing of agricultural products...
Issues:
ITC was a dominant player in its traditional business of cigarettes, hotels, paperboards, packaging and agri-export.
ITC ventured into the branded and packaged foods business with the launch of the ‘kitchens of India’ (KOI) brand in august 2001 and ‘Aashirvaad’ brand in 2002.
INTRODUCTION
In June 2003 ,ITC entered the convenience food market , launching ready- to-meal(RTEM), under the ‘kitchens of India’ brand name.
The USP of these product is that absolutely no preservatives have been added, but the self- life of these food is close to a year.
CONT…..
Geographic – Urban Area
Demographic- Age: 25+, upper class, Tourists, NRIs, Time pressed family
Psychographic – Lifestyle
-Personality: Extroverts, low dogmatism
Behavioral
-Benefit: Less time consume
-User rate: Medium users
SEGMENTATION OF KOI
Geographic – Urban Area
Demographic- Age: 25+, upper class, meddle class, Time pressed family
Psychographic – Lifestyle
-Personality: Extroverts, low dogmatism
Behavioral
-Benefit: Less time consume
-User rate: High users
SEGMENTATION OF AASHIRVAAD
Positive Motivation: Ready –to-eat meals, ‘Quick to heat, Delight to eat’
Rational Motives: Benefit to saving time
MOTIVATION & GOAL
TRAIT THEORY
Innovativeness: High
Dogmatism: Low
Social Character: Inner directed
Need for cognition : High NC
Optimum Stimulation Level : High
PERSONALITY
LOGO:The logo of the brand has a wooden plank with Kitchens of India
written on it in a stylized font Stylized India map in black and golden borders in the corner of the
plank, it has also got Kitchens of India written on it. These elements together give a royal , exclusive and warm feeling to
the brand. The main reason behind this may be that the product was initially
developed keeping in mind the export markets, where evoking India and royalty centric emotions would have been necessary.
Analysing Positioning Strategy
COLOUR – Mainly light golden colour is used to give a royal Indian feel to the
brand.
IMAGES – The images used are very high quality images of Tasty food in
precious/exquisite looking utensils.
GRAPHICS – The graphics used are those which can be described as traditional
Indian art used for crafting sides and borders, usually found in Indian palaces and forts. This is also done to provide an India centric identity.
Cont.
FONTS –
Stylised fonts which add to the India centric appeal. Moreover they also evoke association with ITC.
PACKAGING
The outer packaging has been done In good quality hard paper to
preserve that “authentic” touch prominent with the brand.
Cont..
NAMES
The names of the dishes have also been wisely chosen to reflect the
positioning which is “Authentic ,Tasty Indian Cuisines” .
Names are also chosen to reflect the association with ITC’s restaurants like
Bukhara Dumpukht etc. in its welcome group hotels.
ADVERTISEMENT
The advertisements reflect the positioning well while sending strong visual
stimuli to stimulate the senses and create favourable perception.
The brand has come out with a range of classical music albums to appeal to
consumers hearing tastes
Cont.
Perceptual map Easy to use
Hard to use
Staples(Atta &salt)
High price Low price
Multi-purpose cooking paste
Ready to eat food(masala)