REPORT ON

HEALTHY WORLD

MASTER OF BUSINESS ADMINISTRATION (IB)

SALES & DISTRIBUTION

SUBMITTED BY
M.U.N.Kartheek
REG NO: 1226114122

SUBMITTED TO
MR. VAMSI KRISHNA

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INTRODUCTION
Wheat has been a staple food with the high level of consumption largely unaffected
by changes in its price. India is 2nd largest producer of wheat producing 85-90 million metric
tons (MMT) every year, accounting 12.05% of the total world wheat production. 40 to 45
MMT of wheat is ground to produce whole wheat flour, locally known as atta in stone mills
known as chakkis. Indian market is largely dominated by local flour mills, but they are now
facing competition from branded packaged atta manufacturers who are campaigning for
hygiene and convenience factors. With the rise of modern retail formats, increasing
disposable incomes and health awareness, the category is undoubtedly evolving.
Wheat is one of the world's most important field crops and the third most produced
after maize (corn) and rice (1). It belongs to grass family, Gramineae, and the genus Triticum
(2). Globally wheat is grown in 122 countries producing nearly 700 million metric tons. India
is 2nd largest producer of wheat and is maintaining the position from last eight years (3).
India accounts for 12.05% of the total world wheat production, which is next to China
accounting 18.41%. The Indian packaged wheat flour market comprises few national players
and large number of regional and private label brands operating at pan India or restricted
geographic market based on their size and capacity.
Kernel of wheat is divided in three main parts viz. endosperm, bran and germ. The
endosperm, or, as, it is sometimes termed, the food bag of the grain of wheat, contains
approximately 82-85% by the weight of the grain, bran 14% and germ 2-3%. Endosperm
gives energy for plant growth and carbohydrates & protein for people. Bran protects seed and
is rich in fibre, B-vitamins, minerals; whereas germ nourishes seed, future wheat plant and is
excellent source of antioxidants, vitamin E and B-vitamins (5). Wheat consists of about 7.818% moisture, protein 8.3-19.3%, crude fibre about 1.2%, fat about 1.5% and ash content
1.17-2.96% (5, 6).The urban market dominates packaged wheat flour market in India. As per
IKONs estimate, urban market occupies more than 90% of the total market where as due to
penetration of packaged food in rural India, rural consumers willingness towards packaged
wheat flour increased.
The annual per capita consumption of packaged wheat flour in India remained nearly
at 1.85kg during fiscal 2014-15. However, urban market leads in per capita consumption of
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packaged wheat flour with almost 5.5kg, making the packaged wheat flour an urban
phenomenon.
Wheat is the second most important cereal in India after rice. Wheat provides more
than 50% of the calories to the people who mainly depend on it. India has witnessed a
significant increase in the wheat production over the years and has touched 93.9 MMT in
2012. There has been linear increase in the production from 44.3 MMT in 1987 to 86.87
MMT in 2011 with moderate growth rate of 2.27 (4).There were significant ups and downs
between 2001 and 2007 due to unfavourable weather conditions. However from 2007 there
has been a steady rise (3).
About 91% of the Indian wheat is produced in six states viz., Uttar Pradesh (34%),
Punjab (22%), Haryana(13%), Madhya Pradesh(10%), Rajasthan(9%) and Bihar(6%). Uttar
Pradesh, with 24.3 MMT is the highest producer of wheat followed by Punjab (14.7 MMT)
and Haryana (9.1MMT). Wheat productivity in India is 2.8 tons/hectare. Punjab (4.3t/ha) and
Haryana (4t/ha) have the highest productivity than other wheat producing states. Contribution
of Uttar Pradesh and Madhya Pradesh is due to relatively large area (about 50% of total area)
sown to wheat (3).

Competition in India:
The Indian packaged wheat flour market consist of plenty of brands 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. ITCs 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. 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 percent.

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Atta Production:

However, with the entry of large number of market players having better quality, fresh and
convenience-packaged flour; the wheat flour consumption trends have been shifting towards
the branded packaged Atta. The rigorous advertising in print and visual media campaigning
on quality, hygiene, health, convenience factors by the players are helping to heighten the
sales

Challenges:
In India, a majority of the big atta mills use the roller processing. Some like Golden
Seal, Annapurna and Captain Cook use the stone milling technology. Interestingly, the starch
damage percentage in the stone milling technology is much higher than the roller mills - 15
per cent against 5 to 9 per cent in rolling mills. This makes it suitable for the dough making,
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and at the same time the protein percentage hovers between 10-11 percent, almost equal or
higher than the roller mills. Many of the roller mills in India use three rollers to crack wheat
grains and grind the atta and therefore find nothing novel in the patent. More than 70%,
particularly health and quality conscious consumers prefer to buy specific brands of packaged
wheat flour showing the brand loyalty. Due to varied geographical taste 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.

CASE FACTS
ITC entered the branded Atta market with the launch of Aashirvaad Atta in May 2002
and within a short span became the number one in branded packaged atta across the
country.
In this case ITC which has been positioned as an health conscious manufacturer with
Sundrop cooking oil is now planning to launch wheat flour named Atta under the
name Healthy world.
This is benchmarking itself against national players such as Hindustan Lever
(Annapurna) and Pillsbury.
North and South have different preferences of wheat flour.
The consumption levels of north and south are also different.
The distribution for ITC network is also in place.

ANALYSIS
SOUTH

CUSTOME

CHANNE

COMPETITIO

PREFERENC

Smooth and soft

Distributors

All other packed flour

flour

Organised

industries

SOUTH

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PRICING

18.50/kg

2.85% (distributor
margin)

44-45/kg

Distributor

BENEFITS

More sales from

organised sector

To
Wholesaler
To

Price advantage,
More refined product

retailer

NORTH:

NORTH

CUSTOMER CHANNEL

COMPETITIO
N

Distributors

PREFERENC

More multi grains

and preferences

Organised and

All other packed flour

direct

industries and mainly

unorganised

unorganised sector

mills.
2.85%

PRICING
BENEFITS

18.50/kg

(distributor

10-12/kg

More sales from

margin)
Distributor

Price advantage,

organised sector

To

More refined product

Wholesaler
To
Retailer
(or)
Mills
To
Retailer
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To
Customers

Sales Promotion Plan in North India:

As north India mainly needs the flour with multigrain and prefer mostly to get
fresh Atta from the unorganised sector. There can be many strategies used to
penetrate the product into north Indian market. The preferences of the customers
in the north are unorganized sectors aata which they consider it to be fresh.
There is a specific judgement towards the taste.
Since the climatic conditions in the north are different which makes them
consume more aata which is an advantage for the companies provided they
position the products in the right way.

CONSUMER PROMOTIONS:
There can be different ways used such as
1. samples or sampling.
In this method there can be free samples given to the north Indian consumers when
they come to retail store by following In - Store Sampling. From which we can attract
and make aware of the product that is available in the store.
As most of the north customers purchase flour from unorganised sector. There can
also be direct sampling done. So that the customers who prefer from unorganised
sector may also shift.
2. Product Bundling
As Sundrop is an established and well known product as healthy. The ITC Atta can be
bundled with sun drop so that the customers may be aware of this and this can also be
positioned as an healthy product.

TRADE PROMOTIONS:
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 There can be trade allowances that can be given to the retailers as promotional
allowances which helps the promotion of the product.
Trade shows, trade fairs can also be arranged where there can be marketing of the
product.

BUSINESS PROMOTIONS
1.Seminars
There can be business meeting and seminars that can be conducted to make aware of
the product
2.Gifts
There can be Gifts that also can be given for business promotion and special offers
and special deals that can be given

SALES FORCE PROMOTION

Since ITC already has an intention to maintain strong connect with the mothers, as
it has an impact of tobacco and cigarettes of their company, to make it even
stronger the company can show that its contributing 1% of its sales to the under
nourished women in the state or country through some NGO or certain rupees
from each aata packet.

Since the world is getting into fat free and fitness world we can promote the
product keeping those factors into consideration.

There can be lot of sales contest that can be conducted so that there can be
encouragement within the sales force.

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 As this is new product there can be incentives that can be given to achieve the
sales target. There can be sales slab methodology that can be used here.

Sales Promotion Competition Proof:

Keeping two or three aatas in front of the customer and asking them to pick up the
best one.
Create the awareness of the packaged atta because it can give the customers the
freshness every time and for longer period of time.
For making any sales promotion competition proof there should be first mover
advantage with regard to the product
The product should have an unique marketing strategy. So that there can be no
comparison with the other product .
As the ITC have already developed intact distribution network which plays a crucial
role in the product availability and reach of the product.

Evaluation Of Results:
Looking at the test results we have implemented to promote the product and use of
alternatives.
We can also use any of the Qualitative and Quantitative techniques for the sales
forecasting and promoting the product.
Pre Testing:
How willing are the customers to take the product
In this Portfolio test is preferable as the ballot method will not be available in rural
areas.
Concurrent testing:
The sales data is collected from the retailers and wholesalers . From which the next
product strategy can be determined
Post testing:
Different data collection methods can be used here by collecting the data from calling,
mailing or personally contacting
In this personally contacting is preferable as the Atta is a FMCG and daily use product
and customers feedback would be more genuine when given personally in this kind of
product.
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CONCLUSION
From the above case we can conclude that
There should different promotional strategies that should be used for different region
customers as the taste and preference would be varying mainly in the type of food
they take.
We can also observe that the sales of wheat flour consumption in south and north is
different . As wheat is staple food in North but not in South.
The reach and an efficient distribution strategy is necessary for the product availabilty
and reach.
As it is a new product the display and the product placement is also is very important.

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