Abstract 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 ITCs Foray into Convenience Food Market examines ITCs launch and pricing strategy for these products in the country. The caselet also gives an overview of the processed food industry in India. ITCs use of retorting technology to ensure a long shelf life for their processed food products is also touched upon.
Issues: The emergence of the convenience food industry in IndiaMarket segmentation for convenience food Use of technology to ensure long shelf life for convenience food productsITC 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...
INTRODUCTIONITC was a dominant player in its traditional business ofcigarettes, hotels, paperboards, packaging and agri-export.ITC ventured into the branded and packaged foods businesswith the launch of the „kitchens of India‟ (KOI) brand inaugust 2001 and „Aashirvaad‟ brand in 2002.
CONT…..In June 2003 ,ITC entered the convenience food market, launching ready- to-meal(RTEM), under the „kitchens ofIndia‟ brand name.The USP of these product is that absolutely no preservativeshave been added, but the self- life of these food is close to ayear.
SEGMENTATION OF KOIGeographic – Urban AreaDemographic- Age: 25+, upper class, Tourists, NRIs, Timepressed familyPsychographic – Lifestyle-Personality: Extroverts, low dogmatismBehavioral -Benefit: Less time consume -User rate: Medium users
SEGMENTATION OF AASHIRVAADGeographic – Urban AreaDemographic- Age: 25+, upper class, meddle class, Time pressedfamilyPsychographic – Lifestyle-Personality: Extroverts, low dogmatismBehavioral -Benefit: Less time consume -User rate: High users
MOTIVATION & GOALPositive Motivation: Ready –to-eat meals, „Quick toheat, Delight to eat‟Rational Motives: Benefit to saving time
PERSONALITYTRAIT THEORY Innovativeness: High Dogmatism: Low Social Character: Inner directed Need for cognition : High NC Optimum Stimulation Level : High
Analysing Positioning StrategyLOGO:The logo of the brand has a wooden plank with Kitchens of India written on it in a stylized fontStylized 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.
Cont.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
Perceptual map Easy to use Multi-purpose cooking paste Ready to eat food(masala)High price Low price Staples(Atta &salt) Hard to use