STRATEGY FORMULATION TO INCREASE SALES & MARKET SHARE OF

AASHIRVAAD ATTA IN DINDIGUL REGION

A Summer Internship report submitted in partial fulfillment of the Degree of Master of

Business Administration of Thiagarajar School of Management, Madurai

By

MUTHEESHWARAN S

Reg No – 1211074

Under the guidance of

Internal Guide: Dr. P. Mohan Suyamburaj, Professor,

Thiagarajar School of Management, Madurai

External Guide: Mr. John Martin– Area Manager,

ITC Limited, Coimbatore

(Affiliated to Madurai Kamaraj University)

Madurai – 625 005

May – July 2013

Page | 1
 CERTIFICATE

This is to certify that this internship on “Strategy Formulation To Increase Sales And Market
Share Of Aashirvaad Atta In Dindigul Region” is a bonafide work done by Mr. S.
Mutheeshwaran in partial fulfilment of the requirements for the award of the degree of the Master
of Business Administration, under my guidance. To the best of knowledge this is her original
effort and has not been submitted for the award of any degree, diploma or certificate of this
University or any other university.

Principal, Faculty Guide,

Dr. J. SATHYA KUMAR Dr. P. MOHAN SUYAMBURAJ

Thiagarajar School of Management Thiagarajar School of Management

Madurai - 625005. Madurai - 625005.

Place: Madurai

Date:

Page | 2
 DECLARATION BY THE CANDIDATE

Mutheeshwaran S

Reg No – 1211074

II MBA

Thiagarajar School of Management

Madurai – 625 005

I hereby state that the report entitled, “Strategy formulation to increase sales & market share
of Aashirvaad Atta in Dindigul region” was undertaken at ITC Limited in Dindigul submitted to
Thiagarajar School of Management, Madurai in partial fulfilment of Master of Business
Administration Degree is a record of original work done by me and no part of this internship
report has been submitted for the award of any other Degree, Diploma, Fellowship or other similar
studies.

Place: Madurai Signature of the Candidate

Date:

(Mutheeshwaran S)

Page | 3
LETTER OF AUTHORIZATION

Page | 4
 ACKNOWLEDGEMENT

I put forth my heart and soul to thank the management of ITC Limited, Coimbatore for giving
me the golden opportunity to pursue my summer internship with them.

I also extend my deep sense of gratitude to Mr. John Martin, Area Manager, ITC Limited for
giving me the opportunity to undertake my internship program. I am thankful to Mr. Imthias, Area
Executive, ITC Limited for the valuable suggestions, constant encouragement and constructive
criticism at every step of my internship.

I sincerely thank Dr. P. Mohan Suyamburaj, Professor, Thiagarajar School of Management for
providing guidance and valuable ideas and Dr. J. Sathya Kumar, Principal, Thiagarajar School of
Management for his encouragement which helped me to complete this study successfully.

Finally, I extend my heartfelt thanks to my friends and family members who have been a source
of inspiration and support during my internship.

Page | 5
 MUTHEESHWARAN S Ph no: 9894614699

Email id: mutheeshwaran@gmail.com

Highlights Career objective:

To acquire a challenging position in an organisation that promotes innovative

Area of Interest:
thinking and upgrades itself regularly and also it’s associates.
 Exploring new
techniques in Academic Qualification:
marketing Year
 Analysing Qualification of Institution Percentage
consumer Passing
behaviour
 Renewable Master of Thiagarajar School of 6.90(CGPA)*
energy Business 2014 Management, Madurai
resources Administration

About Me:- B.E.,

(Electrical and 2011 K.L.N. College of 70.45
 Determined Electronics Information Technology,
nature Engineering) Madurai
 Leadership Akshaya Vidyalaya Mat.
skills XII 2007 Hr. Sec school, 88.33
 Team-work Dindigul

Hobbies N.S.V.V. Mat. Hr. Sec.

X 2005 School, 81.32
Pattiveeranpatti
 Travelling
 Networking
*pursuing
References: Co-curricular activities:

Dr.J.Sathyakumar,  One of the initiators & Co-ordinators of Career Enhancement

Principal, TSM Programme (CEP) in TSM.

Prof. M. Subramanian  Participated in surveys of ITC’s MANGALDEEP incense sticks &

DAKSHA DAIRY.
Placement Officer,
TSM.  An active participant in CHANDAI – Marketing club of TSM.

 One of the primary co-ordinators & Master of Ceremony in TSM’s

festivals YUKTI & JUVENIS.

 Co-ordinator of Best CEO event in YUKTI-Management festival of

TSM.

Page | 6
MBA Summer Internship

Company: ITC Limited – Coimbatore branch Duration : 2 months(May 2013– June 2013)

Title: Strategy formulation to increase sales and market share of Aashirvaad atta

 The purpose of the study is to increase the sales of Aashirvaad atta in Dindigul region. The study
enables to find the market potential for Atta in the region and the shares of each brand in
this area. Best practices by various companies were taken into account for increasing the market
share.
 This study also paves way to increase the product length for ITC foods.
WORK EXPERIENCE:

Company: IIE Technologies Ltd, Chennai Duration: August 2011-May 2012.

Job Position: Junior Software Engineer

Description:

IIE is a product-based company, and the main product here is ‘TECH-NET’. All our works went in
and around promoting and enhancing our product ‘TECH-NET”. This product is a banking domain
product, which specializes in co-operative banking management system. It aims at providing complete
web-based portal for all operations of the co-operative societies and reducing its paper work. This is a
common product which is suitable for each and every Banking domain. It used Dot Net platform and well
developed Static Server.

Roles & Responsibilities:

1. As a Software implementation support Executive, involved in the process of providing

ONSITE SUPPORT in client location

2. As a member in Product designing & Testing team, has done detailed gap analysis in various
client locations, and also designed the process flow as well as designed the product according to
client’s need.

3. I was a part in User Manual Preparation- Content writing team, in which I prepared the whole
hard copy contents of our software product ‘TECH-NET’, which is still proved to be the greatest
support for clients on clearing the queries regarding our product ‘TECH-NET’.

4. As a Business Analyst, we promoted our product and also did a great strategy for implementing
our product in societies across Chennai city as well as in TN, within a span of 90 days.

5. As an associate in Marketing team, did works for promoting the product ‘TECH-NET’ and did a
detailed forecasting analysis of that product in India.

Page | 7
OTHER INTERNSHIPS

1) SMART Training Resources India Pvt Ltd, Chennai. Duration: May 2011 - July 2012
2) FACE, Coimbatore Duration: June 2012 - July 2012

Job Position: Trainer – Verbal and Soft Skills

As a verbal and soft skills trainer involved in the process of training engineering students for
their placement preparations & BEC examinations across TN.

Accolades:
 Received first prize in CASE – ANALYSIS held at DMS – Fatima College.
 School level 3rd highest mark in 12th std and received cash award
 RAJYA-PURASKAR state governor awardee ( scouts)

Personal Details:

 Date of Birth : 05 Jan 1990

 Parents Name : Mr. S.Subburaman, Mrs. N.Indra
 Residential Address : 3-3-111, Asari street,
Old Batlagundu post,
Dindigul-624202

I hereby declare that the above furnished information is true and I bear the responsibility for the
correctness of the above mentioned particulars.

Place:

Date: [S.Mutheeshwaran]

Page | 8
 EXECUTIVE SUMMARY

The purpose of the study is to formulate strategies to increase sales and market share of
Aashirvaad Atta in Dindigul region. The study enables to find the market potential for Atta in the
region and the shares of each brand in this area. The leading players in Atta market are also
compared under several criteria for finding the best practice. In this study, special preference is
given to Anil foods since, it is a direct company driven sales and distribution system. The study
also paves the way to increase the product length for ITC foods by finding the sales turnover of
products like Semia, Rava, Maida, Rice flour, Salt & Appalam. It also enables to identify the
leading players in those products. The study also aims to evaluate the basic operational activities
of Salesmen of ITC and relationship between the agency and its super stockists in Dindigul. The
consolidation of this is done through Microsoft Excel. These consolidations act as knowledge
source for increasing the market share and sales of Aashirvaad Atta.

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 TABLE OF CONTENTS

CHAPTER CONTENT PAGES

1 Introduction 13 - 16
1.1.Nature and scope of study
1.2.Basic details of the study
1.3.Objective of the study
1.4.Sampling design
1.5.Implications of the study

2 Organization profile, Review of Literature & Domain 17 – 27

information
2.1. Organization profile
2.2. Review of literature
2.3. Domain information

3 Findings & Discussion 28 – 44

3.1. Introduction
3.2. Market Share & Market Potential of branded Atta
3.3. Evaluation of leading Players of Atta under Various Criteria
3.4. Anil Food’s Sales and Distribution Model
3.5. Sales turnover of Various Products like Rava, Maida, Rice
flour, Appalam, Coarse Salt & leading players in these
products.
3.6. Basic operational effectiveness of salesmen & relationship
between the agency and stockist

4 Analysis & Interpretation 45 - 51

4.1. Dindigul urban
4.2. Dindigul rural
4.3. Availability
4.4 Various criteria
4.5 General

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5 Recommendations & Conclusion 52 – 57
5.1. Introduction – Recommendations
5.2. General recommendations
5.3. Specific recommendations
5.4. Limitations
5.5. Conclusion

6 Appendix 58 – 63
6.1. Work diary
6.2. References
6.3. Questionnaire

List of charts

Chart No. Title Page

1 Dindigul region – Total market potential 30
2 Dindigul urban – Total market size 31
3 Dindigul urban – Total secondary wholesale 32
4 Dindigul urban –Secondary Wholesale - 1/2 Kg 32
market
5 Dindigul Urban - Retail - 1/2 Kg market 34
6 Dindigul rural - Total market Size 35
7 Dindigul rural – Secondary wholesale total atta 35
market
8 Dindigul rural – Secondary wholesale - 1/2 Kg 36
market
9 Dindigul rural - Retail – Total market 37
10 Dindigul rural - Retail - 1/2 Kg market 37
11 Dindigul urban – Retail penetration of atta 46
12 Dindigul rural – retail penetration of atta 47
13 Dindigul urban – Outlet sales scenario 48
14 Dindigul rural – Outlet sales scenario 48

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 List of tables

Table No. Title Page

1 Profitability given by various atta brands 38
2 Sales turnover of various products like semia, rava, 42
rice flour, maida, appalam, salt and leading players
in these products
3 Analysis table on various criteria 49 - 50

Chapter Scheme

Chapter 1:

This chapter deals with introduction about the study which includes the Nature & scope and
implication of the study

Chapter 2:

This chapter deals with organization profile, review of literature and domain information

Chapter 3:

This chapter deals with the findings and the discussion of the basic study work done in the market.

Chapter 4:

This chapter deals with the analysis and the interpretations of the research work.

Chapter 5:

This chapter contains recommendations, limitations and the conclusion.

Chapter 6:

This chapter contains the work diary, references and the questionnaires used for collecting data.

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 CHAPTER 1

INTRODUCTION

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1.1 Nature and Scope of the Study

This internship study attempts to formulate strategies for increasing the sales and market share of
Aashirvaad Atta in Dindigul region. All leading players in Atta industry are compared under
various criteria to find the best practice among them, which gives maximum advantage and profit
to the manufacturer, customers and the consumers of Aashirvaad Atta. The study also focuses on
putting a basic platform for new product development strategies to increase Aashirvaad’s product
length. The operational activities of Salesmen of ITC and relationship between the agency and its
super stockists in Dindigul are also studied..

1.2 Basic Details of the Study

The study was done in Dindigul region with the help of agencies of ITC in this region. The
duration of the Internship study is around 8 weeks. The Internship started from May 6, 2013 and
extended till July 3, 2013. The internship mainly goes through the survey among the retail outlets
in this region and also by spending time with the salesmen of ITC Limited. During Internship
study, entire retail community falling under these agencies’ is covered with the help of the
salesmen and quantitative survey was done for every retailer. Their open comments are also taken
into consideration for the improvement and welfare of ITC Limited. The study is done with the
help of main agency called M.S.P. agency at Dindigul town and with the help of super stockists at
Vadamadurai and Gandhigram. The market was mainly divided into 8 different categories.

Dindigul Urban

 Dindigul Urban – Secondary Wholesale – ½ Kg Market

 Dindigul Urban – Secondary Wholesale – Other SKU
 Dindigul Urban – Retail – ½ Kg Market
 Dindigul Urban – Retail – Other SKU

Dindigul Rural

 Dindigul Rural – Secondary Wholesale – ½ Kg Market

 Dindigul Rural – Secondary Wholesale – Other SKU
 Dindigul Rural – Retail – ½ Kg Market
 Dindigul Rural – Retail – Other SKU

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1.3 Objective of the Study

To understand the entire branded Atta market potential (by finding potential of every individual
retail outlet) & the leading players in Atta market in Dindigul. (Market mapping – Quantitative
undisguised survey)

1) To evaluate the competitors in Atta market & compare it with Aashirvaad based on the
following criteria (Quantitative disguised & undisguised survey)
a) Market profitability
b) Marketing assistance
c) Consumer demand
d) Customer demand
e) Schemes & Offers
f) Quality
g) Sales team service & delivery

2) To understand Anil food’s sales and distribution model since it is a direct company driven
model. (disguised survey)

3) To understand the sales turnover of products like Semia, Rava, Maida, Rice flour, Salt &
Appalam & to find the leading players in these products for increasing the product length
of ITC foods (Quantitative undisguised survey)

4) To understand basic operational activities of Salesmen of ITC and relationship between

the agency and its super stockists in Dindigul. (Disguised interview)

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1.4. Sampling Design

Total Number of Retail Outlets visited: 756

Number of Outlets with Staples items: 497

Actual Sample size: 497

Sampling technique: Cluster Sampling

Method of collection of data: Primary data

Tool used: MS - Excel

Sampling area: 1) Dindigul urban

2) Dindigul rural*

*Areas in and around Kodai Road, Sempatti, Oddanchatram, Vedasanthur, Vadamadurai, Natham,
Gandhigram.

1.5 Implications of the Study

This study gives the detailed analysis of Atta market in Dindigul and Aashirvaad’s position in
Dindigul region. The study also emphasizes to notice the barriers for the improvement of
Aashirvaad’s sales. It helps to improve the sales of Aashirvaad Atta in this region. It also gives a
glimpse of sales of products like semia, rava, maida, appalam and salt which may increase the
product length of Aashirvaad.

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 CHAPTER 2

ORGANIZATION PROFILE

REVIEW OF LITERATURE &

DOMAIN INFORMATION

Page | 17
2.1. Organization Profile [7]

2.1.1 History of company:

ITC Limited is an Indian public conglomerate company headquartered in Kolkata, West Bengal,
India. Its diversified business includes: Fast Moving Consumer Goods (FMCG), Hotels, Paper
boards, Paper & Packaging and Agri Business and Information technology. ITC's annual turnover
stood at $7 billion and market capitalization of over $34 billion. The company has its registered
office in Kolkata. It started off as the Imperial Tobacco Company of India and was rechristened
to India Tobacco Company in 1970, I.T.C. Limited in 1974 and finally ITC Limited in 2001.

The company is headed by Y.C. Deveshwar. It employs over 29,000 people at more than 60
locations across India. ITC Limited completed 100 years on 24 August 2010.

2.1.2 Vision:

Sustain ITC’s position as one of India’s most valuable corporations through world class
performance, creating growing value for the Indian economy and the company’s stakeholders.

2.1.3 Mission:

To enhance the wealth generating capability of the enterprise in a globalizing environment,

delivering superior and sustainable stakeholder value.

ITC is a board-managed professional company, committed to creating enduring value for the
shareholder and for the nation. It has a rich organisational culture rooted in its core values of
respect for people and belief in empowerment. Its philosophy of all-round value creation is backed
by strong corporate governance policies and systems.

Page | 18
2.1.4 Corporate strategies:

ITC’s corporate strategies are:

 Create multiple drivers of growth by developing a portfolio of world class businesses that
best matches organisational capability with opportunities in domestic and export markets.

 Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards &
Packaging, Agri Business and Information Technology.

 Benchmark the health of each business comprehensively across the criteria of Market
Standing, Profitability and Internal Vitality.

 Ensure that each of its businesses is world class and internationally competitive.

 Enhance the competitive power of the portfolio through synergies derived by blending the
diverse skills and capabilities residing in ITC are various businesses.

 Create distributed leadership within the organisation by nurturing talented and focused top
management teams for each of the businesses.

 Continuously strengthen and refine Corporate Governance processes and systems to

catalyse the entrepreneurial energies of management by striking the golden balance
between executive freedom and the need for effective control and accountability.

2.1.5 Various businesses and its nature:

 FMCG – Cigarettes, Foods, Lifestyle retailing, Personal care, Stationery, Agarbatties,

Safety matches
 Hotels
 Paper boards & Specialty papers
 Packaging
 Agri business
 InformationTechnology
 ITC group companies

Page | 19
2.1.6 Aashirvaad [8]:

The products under the brand Aashirvaad are

1) Atta
2) Salt
3) Spices
4) Instant mixes
5) Ready meals

Aashirvaad Atta was launched on 27th May 2002 and within a short span has become the number
one in branded packaged atta across the country.

Totally there are 7 SKU’s in Aashirvaad atta with 3 different types of atta.

They are:

1) Aashirvaad Superior MP atta – (½ Kg, 1Kg, 5Kg, 10Kg)

2) Aashirvaad select MP Sharbati atta – 1 Kg
3) Aashirvaad Multigrain atta – ( ½ Kg, 1Kg)

Aashirvaad atta is coming under ITC foods division, whose headquarters is at Bengaluru.
Aashirvaad is utilising its e – Choupal initiative to procure wheat from farmers. Madhya Pradesh
is the major source of raw material for Aashirvaad atta. It has nearly 6 processing units across the
country.

Page | 20
2.2 Review of Literature

FMCG (Staple sector):

The Indian FMCG industry is over INR 1300 billion in size. The industry has tripled in size over
the last 10 years, growing much faster than in past decades. It accounts for 2.2 per cent of the
GDP of the country. It is estimated that this will be an INR 4000 billion industry by 2020. There
are so many players in this international FMCG sector. It is the fourth largest in Indian economy
[1]

Some of them are:

 Hindustan Unilever
 P&G
 ITC
 Colgate Palmolive
 Nestle India
 Wadia Groups
 Dabur
 Reckitt Benckiser
 Cavin Kare
 Heinz
 General Mills

Apart from the international giants, there are so many local and regional players in this sector.
Maximum of the retail outlets in this country depends on these types of companies.

Staples are one important category in FMCG sector. Products found within a staple industry
represent a stable and continuous required product used by the general public. Food and personal
hygiene items are two examples considered part of a staple industry whether in manufacturing or
retail sales. People need food to survive, so this staple is one that will never disappear. Beverages
go along with food as being a necessity. Personal hygiene products such as soap, toothpaste,
deodorant and shampoo are purchased as regularly as food and are an important staple. Food
items are considered to be more important staple item. These kinds of products require fewer
amounts of promotional activities and the sales of these items will be continuous for all the period.
Page | 21
Of more than 50 000 edible plant species in the world, only a few hundred contribute significantly
to food supplies. Just 15 crop plants provide 90 percent of the world's food energy intake, with
three rice, maize and wheat - making up two-thirds of this. These three are the staples of over 4
000 million people. Wheat and rice are considered to be important food items for Indian people.
This wheat and rice constitutes for major part of food business in today’s world. Atta is one such
food product which is an outcome of wheat [2].

2.2.1 Atta:

Atta is the Hindi or Urdu word for dough; it is used in the meaning of "flour used for baking".
Atta refers to the pulverized whole wheat with brownish white color. In India and Pakistan a
common term used for atta is "chakki atta" which is mostly used in rural areas. Chakki atta is
ground wheat without any additions or subtractions, and is thus in more natural form. In India and
Pakistan wheat products like 'wheat powder' or 'wheat flour', 'atta flour', 'maida flour' and
'sooji'(semolina) (also known as 'rava') are available in the market.

The wheat can be classified into various classifications as

 Wheat Powder/Flour - 'Whole Grain' (Mixture of Germ, Endosperm and Bran)

 Atta Flour – Mixture of Endosperm and Bran
 Maida Flour – Endosperm
 Sooji @ Rava – Coarse Endosperm

2.2.2 Branded Atta:

In the Atta market, customers can be classified based on their usage.

1) Branded Atta customers

2) Chakki Atta (directly from flour mills)
3) Home flour mill

The total branded atta constitutes only about 3 % of the total atta market in India. Branded Atta
has a market capitalization around Rs. 800 crores in India [3].

The domestic branded Atta market, estimated at 35,000-40,000 tons per month, is currently
growing by around 25 per cent annually. The packaged and branded segment is largely dominated
by multinationals, although there are also a few big domestic brands such as Shaktibhog, Lal Qila,
Anil, Naga etc [4].

Page | 22
India has always been an attractive market because of its size; several factors have fuelled the Big
guns enthusiasm to enter the food industry now. The developments on the foreign direct
investment front allowing companies to own 100 per cent in the food processing sector, the
removal of the dividend balancing norms, the reservation of select segments in the food
processing sector, has made a presence in the Indian market a feasible proposition. INDIA is one
of the world's largest food producers, yet branded foods account for an inconsequential
proportion. Among the various food industry segments, the largest is wheat [5].

Considering the industry's size and low brand penetration, international giants have set their sights
on the nascent Indian market for branded wheat products -- biscuits, breads, packaged Atta.

2.3 Domain Information:

Strategy means uniqueness or the game plan set by any company to become the market leader and
to defeat its competitors.

The strategic planning gap for growth of any company generally has three stages.

They are:

a. Intensive growth strategy

b. Integrative growth strategy
c. Diversification growth strategy

This figure depicts the strategic planning gap for any organization

Page | 23
This Ansoff Matrix effectively explains the strategies that can be followed to have a better
understanding the strategic planning gap.

Ansoff Matrix has four different types of strategies as depicted in the diagram.

1) Intensive growth strategy:

In this strategic level, an organization can have two levels of strategies.

They are:
i. Market penetration
ii. Market development

Here the main objective is to concentrate with current products in the current market.
In the market penetration strategy level the product or the service rendered must be
available to all sorts of customers and consumers. This may include B2B or B2C or any
mode. For example, if a company is delivering only to retail outlets in the city, then it can
more aggressively push its products into rural area also.
In the market development strategy, the companies can find new potential
customers/consumers for increasing their sales. This is one of the major ways of increasing
the sales and market share of any product. For example, consider Tata Docomo Telecom
Company. This organization now concentrates majorly on B2B customers. It is also having
market in B2C, but it has developed a new market exclusively for B2B more effectively
than other telecom giants. This is one of the best examples for market development. In
Atta industry, if a company is servicing only for retail outlets, then it can also concentrate
on hotels, caterers and also the hostels in the city.

Page | 24
2) Integrative growth strategy: (Product development)

In this type of growth strategy, the organization can step into product development
stage in which the company can develop products related to the existing products. For
example, consider Atta in FMCG sector. A company selling Atta can easily develop
products such as Rava@Sooji and Maida. The main reason is all these products are made
from single raw material wheat. This may give a competitive advantage over other
companies. For example consider Naga foods, which is supplying all staple items under a
single umbrella, which makes the customers to purchase at ease.

3) Diversification growth strategy:

In this growth level, the company can diversify their product portfolio into various products
of the same business or other business. If a company is into foods business, it can step into
other food products also or it can diversify its business into some other industry like skincare,
retail etc.

These are all the three different types of growth strategies for a company’s success, and
Porters generic strategy gives us another view which can be blended with this growth level. There
are three different in Porters model and it is based on the product quality and specifications and
differentiation.

Porter’s generic differentiation Strategy:

The three different strategies are:

1) Overall Cost strategy

2) Product differentiation strategy
3) Focus strategy

These strategies mainly focus on the product strength and quality and also to the type of
consumer and customer the product or service is rendered.

Page | 25
1) Overall cost strategy:

In this type, the companies try to achieve the lowest cost possible at the entire industry. There
are some classical examples like Southwest airlines, Big Bazaar which proves to be cost –
efficient than any other products in their respective industries. Anil foods prove to be the best
example for overall cost strategy

2) Product differentiation strategy:

Here the company tries to differentiate their products or services from other competitors
by any mean. They try indirectly to create an image that their product is of higher quality in
some aspects or specifications. For example, Consider Aashirvaad Atta, which created an
image that it is softer than any other Atta. They try to make this softness as a criterion for
quality.

3) Focus strategy:

Here the product is specially designed to serve a specific type of need or community, which
may be called as niche market. Specific products for diabetes and some luxurious products
will fall under this category. In Aashirvaad, there is a special variety called Select atta, which
is type of focus strategy.
These are three different kinds of strategies as stated by Porter.

While formulating strategies there are certain other things, which must be taken into
account. They are
1) Strength
2) Weakness
3) Opportunities
4) Threats

These are the four import dimensions which plays major role in deciding the strategy of any
concern.

In case of strength, the company’s strength may be with either product specialization or
market specialization. The same thing also is weakness for some other companies. There
may be so many opportunities for the companies, through which they can develop their
business.

Page | 26
SWOT for Aashirvaad in Dindigul region

STRENGTH WEAKNESS
Product Specialization, Quality, Brand Poor Commitment from stockist, Lack of
Value, Highly committed W.D point. interest from salesmen, Lack of availability.
OPPORTUNITIES THREATS
New B2B channels, Conversion of Stockist Has been defined separately.
into separate W.D Points, rural market

The last important thing is the threats.

These threats may be from

1) Competitors – For Aashirvaad the main competitors are Anil, Pillsbury, and Annapurna.
2) Substitutes – It takes the form of PDS by the government.
3) New entrants – There are competitors like Apoorva, Aachies, Naga etc
4) Bargaining power of suppliers – Dependence on the farmers from Madhya Pradesh.
5) Bargaining power of buyers – Schemes, offers plays a major role in bargaining with
buyers.

These five threats play a major role in formulating a winning strategy. These strategies must
be modified accordingly with the changes in the external environment.

Page | 27
 CHAPTER 3

FINDINGS & DISCUSSION

Page | 28
3.1 Introduction

This analysis mainly focuses on formulating the strategies for increasing the sales and market
share of Aashirvaad atta with special reference to Dindigul town and also the interior parts in
Dindigul district

Dindigul Urban:

 Dindigul Urban – Secondary Wholesale – ½ Kg Market

 Dindigul Urban – Secondary Wholesale – Other SKU
 Dindigul Urban – Retail – ½ Kg Market
 Dindigul Urban – Retail – Other SKU

Dindigul Rural:

 Dindigul Rural – Secondary Wholesale – ½ Kg Market

 Dindigul Rural – Secondary Wholesale – Other SKU
 Dindigul Rural – Retail – ½ Kg Market
 Dindigul Rural – Retail – Other SKU

Page | 29
 3.2 Objective 1: Market Potential And Market Share Of The Branded Players In Atta
Market With Reference To Dindigul

1. DGL REGION - TOTAL MARKET POTENTIAL

Pillsbury, 12582, Others, 2045, 2% Total Mkt - 129645 KGs
10%
Total Mkt - Rs. 4447814
Anil - Rs. 1422688
Aashirvaad - Rs. 2504845
Pillsbury - Rs. 446661
Anil, 44459, Others - Rs. 73620
34%
Aashirvaad,
70559, 54%

The total market potential in Dindigul is around Rs. 44 Lakhs and Aashirvaad is the market leader
with 54 % of the total share. Anil stands in the second position with 34 %, which is followed by
Pillsbury with 10 %. The other players in this product are Naga, Annapurna, Aachis, Vaalis and
Apoorva. Annapurna by HUL does not lead the market at any place in Dindigul region. It clearly
states that the market share is mainly held by three brands namely, Aashirvaad, Anil and
Pillsbury. For making the data into more analysable, the data were divided into four major areas
namely and analysed separately for ½ kg market and other SKU’s.

DINDIGUL REGION

DINDIGUL
DINDIGUL
URBAN
RURAL
S.W
S.W

DINDIGUL DINDIGUL
URBAN RURAL
RETAIL RETAIL

½ KG MARKET
& Other SKU
(in all the above 4 area)
*S.W – Secondary wholesale.

Dindigul Urban holds nearly 70 % (93000 KG) of the total market potential in Dindigul. It
clearly says that due importance must be given to urban because of its market capitalization.
Page | 30
3.2.1Dindigul urban:

2. DGL URBAN - TOTAL MARKET SIZE

Others, 2000, 2% Pillsbury, 10590,
Total - 92458 KGs 12%
Total - Rs. 3182904
Anil - 917536
Aashirvaad - 1817423
Pillsbury - 375945
Others - 72000(app) Anil,
28673,
Aashirvaad, 31%
51195, 55%

In urban too, Aashirvaad is leading with a market capitalization of around 18 Lakhs. Anil has
market capitalization of around 9 lakhs. In urban the secondary wholesale and the retail market
have equal strength. In Dindigul around 390 outlets were taken into account for calculating the
market potential. In Dindigul urban market there are around 77 retail outlets exclusively for
secondary wholesale. Remaining outlets are located in the residential area which focuses mainly
on retail sales. There are 12 beats for ITC’s Aashirvaad in Dindigul urban out of which 3
exclusive beats are there for secondary wholesale. In Dindigul urban Pillsbury also holds double
digit market share, which makes to understand that Pillsbury still proves to be an eminent
competitor in urban area. Anil is having such a huge market share mainly because of its local
presence and it was found that there is some loyalty prevailing for this brand in this area. Some
retailers have changed their mindset and welcomed new brands like Apoorva, Aachies, Vaalis etc.
On interacting with customers it was found that still people are getting wheat by PDS and
grinding it on their own, which is very economical when compared to branded items. On buying it
from PDS and grinding on their own the total charge is coming around Rs. 20 /Kg. The main
reason for Aashirvaad’s leadership is because of its quality. There are so many brand conscious
consumers which also makes Aashirvaad a successful brand in this region.

Page | 31
3.2.1.1 Dindigul urban – secondary wholesale:

3. DGL URBAN - Total Secondary Wholesale

Pillsbury; 4395; 8% Others; 1045; 2% Total Mkt - 56737 KGs
Total Mkt - Rs. 1933724
Anil
- Rs. 740224
Anil; Aashirvaad
23132; - Rs. 999858
41% Pillsbury
- Rs. 156022
Others
- Rs. 37620
Aashirvaad; 28165;
49%

In the secondary wholesale market Aashirvaad leads with 49 % market share, whereas here also
Anil holds second place with 41 %. In this secondary wholesale market, 1/2 Kg - Rs. 1476772
(43217 Kg– 76 %), other SKU – Rs. 456952(13520 Kg) – 24 % is the market split up.

Dindigul urban - secondary wholesale – ½ kg market:

4. DGL URBAN -S.W - 1/2 KG Mkt Share

Others, 500, 1%
Pillsbury, 3165, 7%
Total 1/2 Kg Mkt - 43717 Kgs
Total 1/2 Kg Mkt - Rs. 1476772
Anil -Rs. 689664
Aashirvaad -Rs. 656750
Pillsbury -Rs. 112357
Anil, 21552,
49%
Aashirvaad,
18500, 43%

In the ½ Kg market, Anil is leading with 49 % market share and Aashirvaad has been pushed to
2nd place. Aashirvaad’s sales is lagging around Rs. 35000 behind Anil. Pillsbury holds nearly 7 %
of the market share. The main reason for Aashirvaad’s position is that most of the consumers are
from villages in and around Dindigul and also those customers are more proce conscious rather
than quality conscious. This is one of the major reasons that make Anil a leader in ½ kg market of
secondary wholesale in Dindigul urban.
Page | 32
Dindigul urban - secondary wholesale – other SKU market:

In this other SKU the total market is around 13020 which is Rs. 451736.
Anil - Rs. 50560(12% - 1580 Kg),
Aashirvaad - Rs. 343108(74% - 9665 Kg),
Pillsbury - Rs. 43665(10% - 1230 Kg),
Others -Rs. 14400(4% - 545 Kg).

Here Aashirvaad holds the leader position with around 74 % market share.

3.2.1.2 Dindigul urban – retail:

Total market - 35721 Kgs, total Market - Rs. 1249237

Anil - Rs. 176992(5531 Kg, 16 %)

Aashirvaad - Rs. 817565(23030, 64%)

Pillsbury - Rs. 218680(6160, 17%)

Others - Rs. 36000(1000Kg, 3%)

In the retail market of Dindigul urban, Aashirvaad holds nearly 64 % and Pillsbury holds nearly
17 % of the total market. Here Pillsbury and Anil gives Aashirvaad equal competition. Other
brand like Annapurna holds nearly 500 Kg of the total amount. Here the quality of Aashirvaad
made itself to stand as the topper among the crowd. Here 1/2 KG market holds nearly 72 % which
is around Rs. 897758 and other SKU holds Rs. 351479 (28%)

Page | 33
Dindigul urban – retail – ½ kg market:

5. Dindigul Urban - Retail - 1/2 Kg Market

Others, 800, 3%

Total 1/2 kg Mkt - 25822 KGs

Total 1/2 Kg Mkt - Rs.
Pillsbury, 897758
4131, 16% Anil - Rs. 176672
Anil, 5521, 21% Aashirvaad - Rs. 545635
Pillsbury - Rs. 146651
Others - Rs. 28800

Aashirvaad, 15370,
60%

In Dindigul urban – retail Aashirvaad holds nearly 60 % market share and Anil is at 2nd place with
21% market share.

Dindigul urban – retail – other SKU market:

Total other market - 9899 Kgs, Total market - Rs. 351479

Anil - Rs. 320

Aashirvaad - Rs. 271930(7660 Kg, 77%)
Pillsbury - Rs. 72030(2029 Kg, 21%)
Others - Rs. 7200(200 Kg, 2%)

In this market it is clear that Pillsbury is the potential competitor rather than any other player.

Page | 34
3.2.2 Dindigul rural – total market share:

6. DGL rural - Total Market Size

Pillsbury, 1992, 5%

Anil, 15786,
43% Total Mkt - 37142 KGs
Total Mkt - Rs. 1264490
Aashirvaad, 19364, Anil - Rs. 495552
52% Aashirvaad - Rs. 687422
Pillsbury - Rs. 70716

In Dindigul rural, Aashirvaad is in 1st place with 52 % market share and Anil leads with 43 %.

Here In the total market at Dindigul rural, ½ Kg market possesses 75 % of the total market and the
remaining 25 % is held by other SKU market.

3.2.2.1 Dindigul rural – Total secondary wholesale:

7. DGL RURAL - S.W - TOTAL ATTA

MARKET
Pillsbury, 860, 5%

Anil, 8360,
48%
Aashirvaad,
Total Mkt - 17240 KGs 8020, 47%
Total Mkt - Rs. 582760
Anil - Rs. 267520
Aashirvaad - Rs. 284710
Pillsbury - Rs. 30530

In Dindigul rural – secondary wholesale market it is very clear that Anil leads the market with 48
% and Aashirvaad also has nearly the same market share as like Anil. In terms of currency
Aashirvaad is standing at No.1, when compared to Anil.

Page | 35
Dindigul – rural – secondary wholesale – ½ kg market:

8. DGL RURAL - S.W - 1/2 KG Mkt

Pillsbury, 860, 7%

Aashirvaad,
4000, 31%

Anil, 8060,
62%
Total 1/2 Kg Mkt - 12920 KGs
Total 1/2 Kg Mkt - Rs. 430450
Anil - Rs. 257920
Aashirvaad - Rs. 142000
Pillsbury - Rs. 30530

In the ½ kg market Anil is leading with almost 62 % market share and Aashirvaad very low when
compared to Anil. Aashirvaad is having only 50 % market share of Anil in this market.

Dindigul – rural – S.W. – other SKU market:

Total other SKU market - 4320 Kgs, total other SKU market - Rs. 152310

Anil - Rs. 9600(300 Kg, 7%)

Aashirvaad - Rs. 142710(4020 Kg, 93%)
Pillsbury - Nil (It is clear that Aashirvaad is almost monopoly in this other SKU market.)

Page | 36
3.2.2.2 Dindigul rural – retail:

9. DGL RURAL - RETAIL - TOTAL MKT

Pillsbury, 1132, 6%

Anil, 7426, 37%

Aashirvaad,
Total mkt - 19902 kgs 11344, 57%
Total Mkt - Rs. 680530
Anil - Rs. 237632
Aashirvaad - Rs. 402712
Pillsbury - Rs. 40186
Others - Rs. 10000

In the rural retail market, Aashirvaad is the leader in this market with market share of 57 %,
whereas Anil holds 37 % and Pillsbury is having 6 %. In this market 1/2 Kg holds around Rs.
583438(17167 Kg, 86%) and the share of Other SKU is Rs. 97092(2735 Kg, 14%).

Dindigul – rural – retail – ½ kg market:

10. DGL RURAL - RETAIL - 1/2 KG MKT

Pillsbury, 1132, 7% Total Mkt - 17167 KGs
Total Mkt - Rs. 58438
Anil - Rs. 237632
Aashirvaad - Rs. 305620
Anil, 7426, 43%

Aashirvaad,
8609, 50%

In Other SKU market of rural – retail, Aashirvaad holds 100 % of the market share.

Page | 37
 3.3. Objective 2: To Evaluate the Competitors in Atta Market & Compare It with
Aashirvaad Based On the Various Criteria

3.3.1. Profitability:

In this criteria, almost all the retail outlets in rural as well as urban has responded that Anil gives
them more profitability when compared to all other brands. 14 respondents have told that
Aashirvaad also gives them a good profit if sold at M.R.P.

Table 1:

½ Kg 1 Kg 5 Kg 10 Kg
Brand C.P M.R.P Prft C.P M.R.P Prft C.P M.R.P Prft C.P M.R.P Prft
Anil 14.5 16.5 2 30 36 6 158 180 22 296 315 19
& & &
15 18 3
Aashirvaad 17.5 18 0.5 35.5 40 4.5 170 195 25 303 340 37
& & &
17.75 20 2.25
Pillsbury 17.5 18 0.5 35.5 40 4.5 166 195 29 302 340 38
& & &
17.75 20 2.25
Annapurna 18.5 19.4 .90 36.5 41 4.5 175 198 25 310 350 40
& & &
19.2 21 1.8
Naga 18 20 2 - - - - - - - - -
Aachie’s 15.5 18 2.5 - - - - - - - - -
Vaalis 15 18 3 - - - - - - - - -
Apoorva’s 16.75 20 3.25 - - - - - - - - -
*Prft - Profitability, All are in Rs. (Price status at the time of survey), C.P – Customer Price.

From government PDS:

Rs. 9.5/Kg of wheat (5 Kg for a ration card)

Grinding charges – Rs. 3/Kg

5 Kg of wheat gives around 3 Kg of atta.

1 Kg of atta from PDS – Rs. 20

Page | 38
Is this profitability a deciding factor?

In Dindigul Urban more than 30 respondents have responded that it is not a major deciding
criterion, whereas in rural area only respondent has told it is not very important.

3.3.2. Marketing assistance:

In marketing assistance such as poster, banners, board in urban area all the respondents have
unanimously told that Aashirvaad is the best, whereas in rural area nearly 40 respondents have
told that none of the company is giving that much marketing assistance and some 20 people have
told that Aashirvaad is giving them good marketing assistance.

3.3.3 Consumer demand:

In this criterion Aashirvaad leads in urban area. In the secondary wholesale market all brands have
equal demand. In the rural secondary market Anil is the leader.

Driving force for Aashirvaad’s sales:

In urban area, the consumers are the main driving force for Aashirvaad’s sales, whereas in rural
customers also play major role in Aashirvaad’s sales.

Is replacement of brand possible at the absence of required brand by consumer?

In urban area it is not at all possible, it indicates that most of the consumers are brand conscious,
whereas in rural it is possible to great extent, the consumers are ready to get other brands.

3.3.4. Customer consumption pattern:

Most of the customers consumer only Aashirvaad and in rural area nearly 10 customers are using
other brands.

3.3.5. Quality:

In terms of quality Aashirvaad stands at number 1, when compared to all other brands. In rural
some customers have told that Anil is also having quality. They believe that husk in Anil atta is
really good for health.

Page | 39
3.3.6. Schemes & offers:

Anil is leading in this criterion with more offers. Some customers have also told that Annapurna
and Pillsbury also gives/gave them some good offers.

Some of the schemes offered in the past/present by various companies:

 Annapurna – Bulk purchase (10Kg) – 1 Kg atta free. (Most of the customers in rural and
urban area have bought this mainly for this scheme). It also gives 1% C.D for spot
payment.
 Pillsbury – Pillsbury is giving 1 Kg of rava worth Rs.35 for above 30 Kg at present.
 Anil – This Company gives schemes and offers to customers only at surprise. They are not
giving any prior announcement about the offers. In the package itself they are adding
offers at times. If a customer is regularly buying above 30 Kgs means they are giving T-
shirt as a compliment. They have also given ½ Kg atta packet free for 30 Kg.
 For small size customers (below 30 Kg) they are giving semia packets free at times.
 Naga – It is also giving 1 Kg atta free for every 30 Kg of purchase.

Are schemes playing major role in buying that product?

Most of the customers have responded positively for this query. In spite of the quality, price, if it
is giving them good offer, then the customers are ready to buy that brand.

3.3.7. Sales team delivery & service:

Regarding this criterion, Aashirvaad is leading in urban – retail and rural – secondary wholesale,
whereas in urban – secondary wholesale, Anil is the leader. Since Anil is going daily into this
market, the customers have told Anil. Anil and Aashirvaad is at equal strength in rural – retail.

3.3.8. Top of Mind Awareness (TOMA):

In urban area, if a consumer asks generally atta, the shopkeepers are asking the required brand.
Still 23 people have responded that they will give Aashirvaad, if asked generally.

In rural the customers are giving either Aashirvaad or Anil, when asked generally. The customers
here are not questioning the brand if asked generally.

Page | 40
 3.4 Objective 3: To Understand Anil Food’s Sales And Distribution Model Since It Is
A Direct Company Driven Model.

 Anil foods sales and distribution in Dindigul region is done by its own agency namely Top
Anil Maarketing Company.
 Anil foods is having separate model for urban retail and urban secondary wholesale.
 Anil foods is giving daily coverage and a maximum of 2 weeks credit period for
Secondary Wholesale, whereas for retail, Anil foods is having cash and carry method.
They are going with the products and providing the required products by getting the cash.
 Anil is having separate telephone assistance for getting the orders at any time, and the
goods are delivered within 24 hours of the order.

3.4.1 Urban:

 Monday – Mengles road, B.S, Begampur - 29

 Tuesday –Aarthy theatre road, NGO colony - 43
 Wednesday – Chettinaikenpatty, Trichy road, Siluvathur road – 18(extending to Dindigul
rural)
 Thursday – Santhai road - 45
 Friday – Collectorate, Palani road – 4(extending to Dindigul rural)
 Saturday – Natham road – 21
 Daily – West Car Street, Big Bazaar street, Katcheri Street - 45

3.4.2. Rural:

 Monday – Vedasandur, Eriodu - 38

 Tuesday – Gandhigram, Thadicombu - 15
 Wednesday – Chinnalapatti, Sempatti – 30(Extending in the route of Oddanchatram)
 ThuRsday – Vadamadurai, Ayyalur & Gopalpatti - 48
 Friday – Ammanaikanur, Kodai Road – 10(extending upto Silukuvarpatti, Pallapatti,
Nilakottai)
 Saturday – Guziliamparai, Kovilur, Palayam – 15

*Numbers are the no. Of retail outlets visited by Anil foods.

This model states that Anil foods is having more than 4 sales team for its distribution in this
region.

Page | 41
 3.5 Objective 4: Sales Turnover Of Various Products Like Semia, Rava, Rice Flour,
Maida, Appalam, Salt And Leading Players In These Products

Table 2:

Product Sales Quantity Price/Kg Leading Favourable

turnover (Rs) (Rs) Players market to do
(Kg) more ground
study

Semia 12,70,160 25834 49.10 Anil, Thaai, Dindigul,

Savorit, Trichy
Arima, Roja,
Vaalis
Rice flour 5,91,640 17402 34 Private label, -
Kilimark, Anil
Rava 6,91,840 19218 35 Naga, Kili, Dindigul
Anil
Maida 6,29,720 18522 34 Naga, Kili, Dindigul
Anil
Appalam 8,54,260 14728 58 Baskaran, Madurai
Maan, Mayil,
JT, Sakthi,
Malli, Anil
Coarse Salt 5,23,572 87262 6 Local Tuticorin
Tuticorin
players,
Anil,
I – Kristal,
Annapurna.
* Blocked brands are the market leaders in the respective products.

Page | 42
 On finding the sales turnover of various products of Anil foods, it was found that
Anil is losing its market share in almost all the products and it is not the market
leader in most of the products.
 Regarding semia, Anil is the market leader but Thaai and Vaalis brand is more
aggressively overtaking Anil.
 In rice flour product none of the companies is the market leader. Maximum all the
retail outlet people, grind the flour on their own and they sell it in a loose manner
according to the consumer need. This product is also identified as a seasonal food,
which requires more demand in festival season.
 In Rava and Maida products Naga foods is the market leader and most of it are
consumed in a bulk manner (say 10 kgs) by the hotels, caterers etc. In consumer
market it is also sold majorly in a loose manner.
 Baskaran brand based on Madurai leads in appalam (papad) market. Most of the
retail outlets are showing warm welcome to this brand rather than Anil
 In coarse salt, local brands from Tuticorin plays a major role in all type of B2B as
well as B2C market. Regarding i –kristal, Annapurna and Anil all together holds
only around 30 – 40 % market.

Page | 43
 3.6 Objective 5: Basic Operational Effectiveness Of Salesmen Of ITC And The
Relationship Between The Agency And Its Super Stockists In Dindigul.

 The salesmen at M.S.P agency are initiating their core job daily around 11 to 11. 30 AM.
Both the salesmen needs proper motivation and also some persuading skills.
 The salesman at Thirupathi agency starts their work by 9.30 AM daily. These salesmen
may be guided properly for increasing Aashirvaad’s sales. Their self interest and proper
guidance may be appreciable.
 P.S.R may also be given additional task. As for from my observation on 5 days work with
him, it was found that he is majorly making note of only the availability of stocks at
various outlets and to transport some bills and papers.
 The relationship between M.S.P agency and Thirupathi stores at Vadamadurai is also not
appreciable.

Page | 44
 CHAPTER 4

ANALYSIS & INTERPRETATION

Page | 45
4.1. Dindigul Urban:

4.1.1. Dindigul – urban – S.W – ½ kg market:

In this market Anil is the leader with 49 % and Aashirvaad holds only 43 %. It clearly states that
Anil is the main competitor in this area. The consumers for the outlets in this market are from
rural areas in Dindigul. So the main problem may be with the rural market.

4.1.2. Dindigul – urban – S.W – Other SKU market:

Aashirvaad holds nearly 76 % of the market share. There are 2 shops in this area buying Anil atta.
These 2 outlets comprises of 12 % of the total share.

4.1.3. Dindigul – urban – retail – ½ Kg market:

Here Aashirvaad is with 61% and Anil holds 22 %, Pillsbury also holds a decent percentage.
Nearly 63 outlets in urban are buying Anil products from the secondary wholesalers not directly
from the agency.

Chart 11. Dindigul urban – Retail penetration of atta

350 330

300

246
250
210
200

150

100

50

0
Aashirvaad Anil Pillsbury

4.1.4. Dindigul – urban – retail – Other SKU market:

In other SKU market Aashirvaad holds nearly 77 %, and Pillsbury is with 21 %. So Pillsbury is
the main competitor in other SKU market of Dindigul – urban.

Page | 46
4.2. Dindigul Rural

Chart 12. Dindigul rural – retail penetration of atta

250
DGL RURAL - RETAIL PENETRATION (201)
193 188
200

150

100
55
50

0
Anil Aashirvaad Pillsbury

4.2.1. Dindigul – rural – S.W – ½ Kg market:

Anil leads with 62 % and Aashirvaad holds only 31%. The customers for these outlets are from
interior rural areas in Dindigul. Both the secondary wholesale ½ Kg market is led by Anil, mainly
because of its fame among rural population

4.2.2. Dindigul – rural – S.W – Other SKU market:

In this market, Aashirvaad holds nearly 93 %. Anil is having only meagre share.

4.2.3. Dindigul – rural – Retail – ½ Kg market:

Here Aashirvaad holds nearly 50% and Anil is having 43%. The cost caring customers are more in
rural area, which makes them to buy Anil.

4.2.4. Dindigul – rural – Retail – Other SKU market:

In this market, Aashirvaad holds 100% of the market.

Page | 47
4.3. Availability

Availability of various brands of atta in the retail outlets:

13. DGL URBAN - OUTLET SALES

SCENARIO

Only
Aashirvaad,
Aashirvaad & 35, 23%
Only Pillsbury, 0, 0%
Pillsbury, 66,
ALL THE THREE - 147 Only Anil, 0, 0%
44% Anil &
Aashirvaad, 48,
32%

Anil & Pillsbury, 1, 1%

14. DGL RURAL - OUTLET SALES

SCENARIO
Only Aashirvaad, 16, Aashirvaad &
Anil & Pillsbury, 2, 1%
10% Pillsbury, 2, 1%

Only Pillsbury, 0, 0%

Only Anil, 11, 7%

ALL THE THREE - 34

Anil &
Aashirvaad, 136,
81%

Dindigul urban:

 Number of retail outlets buying Anil Atta from Secondary wholesalers – 65 outlets
 Average Sales of Anil Atta in those outlets – 800 Kg
 Average sales of Aashirvaad Atta in those outlets – 3600 Kg
Page | 48
Dindigul rural:

 Number of retail outlets buying Anil Atta from secondary wholesalers – 27 outlets
 Average Sales of Anil Atta in those outlets – 800 Kg
 Average sales of Aashirvaad sales in those outlets – 900 Kg

4.4. Various criteria:

Among the 498 retail outlets in Dindigul region, a sum of 155 outlets was taken for this test. The
respondents were equally taken from Dindigul urban (S.W & Retail) and Dindigul rural (S.W &
Retail)

Table 3:

Criteria Location Status

Which Atta gives more Dindigul region Anil – 93%; Aashirvaad – 7%
Profitability?
Is profitability a deciding factor? Dindigul region Yes – 85%; No – 15%
Which company gives more Dindigul urban Aashirvaad – 100%
marketing assistance? Dindigul rural Aashirvaad – 43%; None – 57%
Dindigul urban - retail Aashirvaad – 80%; Anil – 15%;
Which brand is demanded mostly Pillsbury – 5%; Others - Rare
by consumers? Dindigul rural Aashirvaad – 54%; Anil – 46%;
Others - Rare
Dindigul region – All brands
Secondary Wholesale
Driving force for Aashirvaad’s Dindigul urban Consumer as well as
sales customer – 100%
Dindigul rural Customer – 28%; Consumer – 72%
Is replacement of a brand Dindigul urban Yes – 5%; No – 95%
possible? Dindigul rural Yes – 60%; No – 40%
Customer consumption Dindigul region Aashirvaad – 93%; Anil – 4%;
Pillsbury – 3%
Best in Quality Dindigul region Aashirvaad – 92%Anil – 7%;
Pillsbury – 1%

Page | 49
Best in Schemes and offers Dindigul region Aashirvaad – 0%; Anil –99%
Annapurna & Pillsbury – 1%
Are schemes a major factor in Dindigul region Yes – 98%; No – 2%
purchase?
Which company’s sales team Dindigul urban Aashirvaad – 71%; Anil – 29%
service and delivery is better? Dindigul rural Aashirvaad – 68%; Anil – 32%
Top of Mind Awareness(TOMA) Dindigul urban Aashirvaad – 35%; Anil – 9%;
Will ask – 56%
Dindigul rural Aashirvaad – 45%; Anil – 50%;
Will ask – 5%

4.5. General:

Some aggressive move by Anil foods:

1) Top Anil Maarketing company – a company owned distribution system

2) Special phone calls for getting order
3) Top Anil has visited all the retail outlets in the recent period, which was not previously
covered by that agency
4) Anil Chakki fresh Atta – with more quality (no husk)

Problems identified with the stockist:

1) Stockist at Vadamadurai has an audacious vision of becoming a separate W.D Point, but
not showing commitment towards ITC.
2) Relationship with the agency is not appreciable.
3) No proper surveillance of the salesmen. The salesmen are doing only the job of getting
orders, not pushing the product.
4) Thirupathi stores, which is a stockist at Vadamadurai sells nearly 200 Kg of Anil in a
week, whereas Aashirvaad sales is around only 60 Kg/week. This indirectly shows the
loyalty and the relationship of the stockist with the company.
5) Stockist at Chinnalapatti is not covering all the shops in Natham road beat.

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Some general reasons for the sales of

Anil:

 High margin
 Local influence
 Daily canvassing for the outlets
 Low price
 Along with more husk is easy for use & some like the hardness of that Atta
 Flexibility in credit for secondary wholesalers
 High loyalty among the rural and secondary wholesalers

Pillsbury & Annapurna:

 To compensate Aashirvaad’s absence

 Some loyal customers & quality
 Return claim availability

Aashirvaad:

 Quality
 Softness

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 CHAPTER 5

RECOMMENDATIONS

& CONCLUSION

Page | 52
5.1. Introduction

NEED OF THE HOUR: AGGRESSIVE & INTENSIVE GROWTH STRATEGY

Market development strategy – Dindigul Urban:

Since product specialization is the winning factor for Aashirvaad, it is necessary to follow
segment by segment invasion plan at this juncture. Aashirvaad has almost reached all the retail
outlets in the urban area. It is now essential to develop the market into other untapped market too.
It can be done by finding large individual bulk users like hotels, caterers, hostels etc.

Market penetration strategy – Dindigul Rural:

Aashirvaad is yet to penetrate in a full-fledged manner in rural areas. All retailers must be
covered by Aashirvaad’s availability. There is huge opportunity in this area. While penetrating
local marketing knowledge may help Aashirvaad in an easy manner. The brand Aashirvaad must
be inculcated in the rural people mind as their own brand. Frontal as well as flank attack against
competitor is necessary. Strategies must be formulated to achieve this objective. Aashirvaad may
use push strategy to increase its market share in rural area. Instead of informational message,
transformational message strategy may be used for promoting Aashirvaad more effectively in
rural area.

FUTURISTIC APPROACH: INTEGRATIVE GROWTH STRATEGY

Product development – General:

For product development, initially Aashirvaad may go with Rava and Maida, which is very
closely related to Atta. Aashirvaad may also go into coarse salt. In case of Rava and Maida, there
are so many bulk customers rather than individual ½ Kg users. It must be taken into account. In
coarse salt, there are several local players. Semia and Appalam are identified as seasonal foods,
but these products also have constant demand but it is of higher demand during rainy season and
during festival season.

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5.2. General Recommendations:

1) Instead of giving general target, the target may be changed to beat (area) target for gaining
full market share in each area. This will give more proper guidance to the salesmen of
ITC. This should be more vigorously followed in rural.
2) ITC can create a separate B2B channel for distribution exclusively for hotels and caterers
with the help of existing salesmen in the urban area. Since the salesmen are approximately
starting their core job around 11 AM. It will be easy to concentrate for these people.
3) Separate call centre based extra facility can be made for getting orders and supplying it
immediately. It may create good relationship and loyalty among customers for ITC.
4) Relationship between the agency and the super stockist must be taken into account. It may
imply indirectly in the sales of Aashirvaad.
5) Some situation like WIN (Company) – WIN (agency/stockist) – WIN (customers) – WIN
(consumers) may be created by taking care of customers to some more extent with some
more offers & schemes.
6) Apart from Pilot Sales Representatives, AE’s may also step into stockist market and rural
market more frequently to know the market status, since Aashirvaad is lagging in major
aspects in rural area.
7) The people selling cigars are also selling biscuits but not Aashirvaad. Since these outlets
are coming under cigar people, the stockists are also not taking care of these stores. This
problem must be solved to ensure the increase of Aashirvaad’s sales.
8) Policies & schemes must be given to the stockist salesmen at due time.(During my survey
period, till the June 10th, the salesmen are not aware of the month schemes)
9) Aashirvaad multigrain has not even reached in some places of stockist market. It must be
taken care.
10) Existing cigar channel can be more effectively used for finding untapped outlets in the
area.
11) If possible can go and test with a new SKU at Rs. 15 with 370 grams for penetrating more
aggressively into rural area.
12) Rural areas must be given special attention in terms of marketing assistance, Multigrain
Atta, penetration and sales team service and delivery for ensuring the earlier success of
Aashirvaad.
13) Some marketing assistance techniques that may be followed are
A) Select at least 3 retail outlets, which is having more visibility in each village and
provide them with the banners of Aashirvaad which comprises of that particular

Page | 54
 store’s name also. This should be placed at proper place which has more visibility.
This placement is not done properly in urban area too
B) All retail outlets in the rural area may be provided with the catchy posters of
Aashirvaad.

5.3. Specific Recommendations:

5.3.1. Dindigul – urban – S.W – ½ Kg market:

1) There are 65 outlets in Dindigul urban retail, which buys nearly 700 Kg of Anil atta in
S.W market. These 65 outlets may be concentrated first, since Aashirvaad is meeting these
outlets directly. This conversion will also reduce the Anil’s share up to 700 Kg in the retail
market too.
2) Some more aggressive marketing assistance in the rural area and in the stockist market
will reduce the share of Anil in this market.
3) Pillsbury is also having nearly 7 % market share. These outlets are also in Dindigul urban
– retail. These outlets should also be taken into account for converting it into Aashirvaad’s
share. Aashirvaad is reaching these customers directly, whereas Pillsbury does not.
4) Separate channels for caterers and hotels may also reduce Anil’s share. These people are
used to ½ Kg and 1 Kg by buying it regularly, since they don’t have the warehouse facility
for storing it properly by buying it in a bulk manner. Daily purchase is very easy for them
to make their payment.

5.3.2. Dindigul – urban – S.W – Other SKU market:

In this market there is only one outlet namely Samudra store which buys Anil Atta and Samudra
and Nayagam stores which buy Pillsbury. They may be concentrated separately for converting
them. These 2 stores comprises for nearly 20% of total market

5.3.3. Dindigul – urban – Retail – ½ Kg market:

1) Here Anil and Pillsbury jointly holds 43% share, which may be reduced fiRst by
converting the people buying these two brands in the S.W market not with the agencies
directly.
2) There is one outlet named Sakthi maligai in Dindigul, which is not buying Aashirvaad. It
must be taken into Aashirvaad account

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 3) There are nearly 66 outlets which sell only Aashirvaad and Pillsbury, which clearly
indicates that they are quality conscious. There is possibility for converting these people
into only Aashirvaad portfolio very easily. At present there are 35 outlets in the urban
which sells only Aashirvaad.
4) There are 48 outlets which sells only Anil and Aashirvaad but not Pillsbury. They may be
converted easily by giving some more schemes.

5.3.4. Dindigul – urban – Retail – Other SKU market:

Aashirvaad holds 77% and Pillsbury holds 21%. The same said method for ½ Kg market will be
more suitable.

5.3.5. Dindigul – rural – S.W – ½ Kg market:

1) Here Aashirvaad holds only 30% market share, which must be taken into account. The
main reason is because of Aashirvaad’s poor penetration in the very interior rural area.
Some local TV ad’s may increase the sales of Aashirvaad. Anil is giving more
advertisement in the interior area for keeping up its sales.
2) ITC may use the cigar channel to know the real potential of Atta in those areas.

5.3.6. Dindigul – rural – S.W – Other SKU market:

Here Aashirvaad holds 93% share and there is only one shop namely Vathiyar store, Kodai road
which buys Anil. It may be concentrated and converted into Aashirvaad account.

5.3.7. Dindigul – rural – Retail – ½ Kg market:

Sales team delivery and service’s improvement will increase the sales of Aashirvaad. Some more
marketing assistance in the rural stockist market will help to increase sales.

1) There are nearly 27 outlets with 800 Kg capitalization buy Anil Atta from Secondary
wholesalers not directly from the agency. Since Aashirvaad is reaching them directly, they
may be converted with more marketing assistance.
2) There are nearly 11 outlets which sell only Anil Atta and 2 outlets which sell Anil and
Pillsbury but not Aashirvaad. Aashirvaad must penetrate into these outlets.
3) The untapped outlets in Natham road, Guziliamparai, Kovilur must also be taken into
account.
4) There are 2 outlets which sells only Aashirvaad and Pillsbury but not Anil. They may be
converted into Aashirvaad by emphasizing the quality of Aashirvaad.

Page | 56
 5) There are 136 outlets which are quality and price conscious sells Anil and Aashirvaad.
Since it was found that replacement of brand is possible extensively in rural area, these
outlets can be encouraged with some more schemes.

5.3.8. Dindigul – rural – Retail – Other SKU market:

Here Aashirvaad holds 100% of the market. All retail outlets are loyal towards Anil and to
Aashirvaad. This may be maintained by properly servicing those outlets.

*Nearly 15 outlets have been identified with Annapurna 10 Kg Atta. The main reason is only
because of 1 Kg free Atta with the pack. Totally there are 181 outlets in Dindigul region,
which sells all the three brands

5.4. Limitations

This study is limited mainly to Dindigul region and it may not suit to other region more
effectively. The study is also limited only to customers. Consumers were not taken into account in
this study.

5.5. Conclusion:

This analysis and the findings and the recommendations of the study may effectively increase the
sales and the market share of Aashirvaad Atta in Dindigul region. This study may also help ITC to
diversify its product portfolio.

Page | 57
CHAPTER 6

APPENDIX

Page | 58
Page | 59
6.2. References

1) FMCG – CII – Road Map – 2020

2) www.fao.org docrep u 4 eu 4 e 7.htm
3) http://www.slideshare.net/aziz.razdan/marketing-management-project-itc-
aashirvaad-atta-presentation
4) info2myfriends.blog.com/files/.../packaged-atta-industry.doc
5) www.studymode.com essays Research-Findings-1 71 .html
6) http://www.google.co.in/#sclient=psy-
ab&q=annapurna+atta+market+share&oq=annapoorna+atta&gs_l=hp.1.2.0i10l4.0.
0.2.99796.0.0.0.0.0.0.0.0..0.0...0.0.0..1c..17.psy-
ab.mvweVSHYbXI&pbx=1&bav=on.2,or.r_qf.&bvm=bv.47883778,d.bmk&fp=fe
f76a32f21e5ea1&biw=1517&bih=693
7) www.itcportal.com
8) www.aashirvaad.com
9) http://www.google.co.in/#gs_rn=17&gs_ri=psy-
ab&suggest=p&cp=6&gs_id=p&xhr=t&q=pillsbury&es_nRs=true&pf=p&output=
search&sclient=psy-
ab&oq=pillsb&gs_l=&pbx=1&bav=on.2,or.r_qf.&bvm=bv.47883778,d.bmk&fp=f
ef76a32f21e5ea1&biw=1517&bih=693
10) http://www.google.co.in/#sclient=psy-
ab&q=market+share+of+branded+atta+%26+its+development+index+in+india&o
q=market+share+of+branded+atta+%26+its+development+index+in+india&gs_l=
hp.3...181767.195510.6.195848.26.25.0.0.0.20.1022.18674.5-
8j13j3.24.0...0.0.0..1c.1.17.psy-
ab.R7998lp0O9o&pbx=1&bav=on.2,or.r_qf.&bvm=bv.47883778,d.bmk&fp=fef76
a32f21e5ea1&biw=1517&bih=693
11) Marketing Management – Philip Kotler

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 6.3. Questionnaire:

QUESTIONNAIRE – 1 – MARKET POTENTIAL AND MARKET SHARE IN DINDIGUL

REGION.

Ssssl.
Retail
No Pillsbury Pillsbury Anil Anil Aashirvaad Aashirvaad – Anil S R M A S Rice A Other Posters/
Outlet Total ½ kg Total ½ kg Total ½ kg Service E A A P A flour V Atta Banners
Name day M V I P L F
I A D A T
A A L
A
M

10

11

12

13

14

15

16
17
18
19
20
21

22
23
24
25
Date: Day: Salesman name: Area: Start time: End time:

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QUESTIONNAIRE – 2 – VARIOUS CRITERIA No:

A COMPARATIVE STUDY OF VARIOUS PLAYERS IN ATTA INDUSTRY UNDER

SEVERAL CRITERIA FROM RETAILERS.

Market profitability

1) Which brand is giving you more profit on your Atta sales?

h) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others

2) Is this is a major criteria for buying this brand? A) Yes b) no

Marketing assistance

3) Which company is giving you more marketing assistance ( Ad’s, Signage, BanneRs etc)
a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others

Consumer demand

4) Which is the most preferred brand by the consumers?

a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others
Specific reason: (Quality, brand, Price, taste, Softness, package, availability, ad’s)
Other reasons:
Why not others? Why not Aashirvaad?
5) Which is the major driving factor for Aashirvaad’s sales?
a) Your (Customer) wish b) Consumer wish c) Both
6) Is consumer willing to take other brands when their required brand is not available or not
given?
a) Yes b) No

Customer demand

7) Which is your most preferred brand as a customer?

a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others
Specific reason: (Profitability, Schemes, Offers, delivery, Marketng asst, delivery)
Why not others? Why not Aashirvaad?

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 8) Which is your most preferred brand as a consumer?
a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others
Specific reason: (Quality, brand, Price, taste, Softness, package, availability, ad’s)
Other reasons:
Why not others? Why not Aashirvaad?
9) Which is better quality according to you?
a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others
Specific reason:
If not Aashirvaad, Why?

Schemes & Offers

10) Which company is giving you more margins via schemes?

a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others
11) Which company is giving you more offers?
a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others
12) Credit period given by other companies: a) Anil - b) Pillsburry - c) Annapoorna –

13) Will schemes influence your buying behaviour? A) yes b) no

Sales team service & delivery

14) Which companies sales team service & delivery is good?

a) Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others
Specific reason:
Why not Aashirvaad?

TOMA

15) If asked atta generally, which brand will you give?

a)Aashirvaad b) Annapoorna c) Anil d) Pillsburry e) Others

Problems with ITC foods & with the agencies:

Ideas for the improving the sales of Aashirvaad:

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