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Case Study:

After introducing popcorn and Sundrop cooking oil, ITC Agrotech launched wheat flour (atta) under the brand name Healthy World. US-based, food products firm, Conagra, has 51 % stake in ITC Agrotech. The vice president says, ‘We took an Indian. Perspective out of the Conagra portfolio, with relevance to, the local palate.... Healthy World marks our entry into mass market products’.

Priced at Rs 18.50 for a 1 kg pack, Healthy World in packs ranging from 500 gm to 5 kg. ITC Agrotech claims which it spent nearly one year on R&D before launching Healthy. World, benchmarking it against national players in the branded atta category, players such as Hindustan Lever Limited (Annapurna) and Pillsbury. There are some regional brands too. Parameters like softness, taste, color and texture preferences are said to have, been looked into in detail before finalizing the variant. “Our research revealed that the preferences in the North and South of India differ distinctly across almost all parameters of atta. While creamish to white color and finer size is favored in the South, the North consumer is more discerning as far as taste goes,” informs the marketing manager.
Consumers in the South are more receptive to branded atta, however the North leads in consumption, where average monthly household consumption is 27 kg as against just 3 kg in the South.

Conagra claims- to be the largest miller in the US. ITC Agro took over the atta manufacturing part of a partner in Chennai to streamline it in line with its parent company’s manufacturing process. What will as well help ITC Agro is the fact that it has established itself as a health conscious manufacturer with sundrop. The distribution network is already in place. However, the Healthy World packs too leverage this with the image of the boy somersaulting (The Sundrop trademark) with the proclamation “from the makers of Sundrop”.

The branded atta market is estimated to be in excess of Rs. 350 crore, with category advertising spend of around Rs. 20-25 crore. The theme line of Healthy World says, “More health. More Energy”.

problem 1: Develop a sales promotion plan to promote continued consumption of Healthy World in North India.

problem 2: How would you make your sales promotion competition proof?

problem 3: How would you assess the results of this promotion?

Management Theories, Management Studies

  • Category:- Management Theories
  • Reference No.:- M95155
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