ITC Aashirvaad Atta

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1. Tie up with the government to sell Asshirvaad aata at military canteens at

subsidized rate.
2. Informative advertising will be used for our new variant we are launching.
Newspaper would be the most effective media targeting industrial buyers.
3. Using scientific evidence as our message execution style.

Sales Promotion

Objective:- Promotion initiatives to increase thr brand visibility and win

customer preferance.

Method
1. Free 1kg packs of Asshirvaad can be in regions where the penetration of
branded aata is low.
2. Free Packs of Asshirvaad salt to be bundled with Asshirvaad 1kg aata per
pack
3. The company can collaborate with all the fast food retail chains,
restaurants. A discount coupon for those fast food chains can be given along
with Asshirvaad aata pack.
4. Free samples through distribution at posh public area such as Malls and
Multiplexes.
5. Contest for house wives (Chatur-Grihini)

CLASSIFICATION OF DIFFERENT PROMOTIONS

Nature of promotion

Price promotions Non- price promotions

Offer Definition Offer Definition

Price-off Offers a discount to the Extra product Offers an increased

normal selling price of a quantity of the product
product without an increase in
normal retail price
 Coupon Offers a certificate that Premium Offers a free gift in
provides a price addition to the main
reduction at point of the purchase
purchase
Rebate Offers cash back from Contest Provides a chance to win
the manufacturer on a a large prize through
purchase skill
Sweepstake Provides a chance to win
a large prize based on
chance

Details about Different Types of Promotions

The specific details about the different types of promotions – price off, free
gift offers, sweepstakes, extra product offers, contests, exchange offers and
buy-more-and-save / get offers-are discussed in the following section.

(i) Price off or discount

Price probably is the most commonly used promotional techniques. The

concession or reduction in price is given to the customers and they save the
money in the purchase. The customers get the products in lower price. The
same features of the products are offered to the customers at lower price.
The value of the money among customers is increased. The concession is
given in net amount then it is called price off and if it is given in percentage
then it is called discount. These methods can be communicated through POP
advertising, window displays, sales men, advertising, packaging etc. Such
promotion methods work very well in gaining the attention of consumers,
particularly at the point of purchase among similar brands. For example, the
price of Colgate Total tooth paste is marked MRP as Rs. 100. When it is
marked Rs.10 off, then it means the customer has to pay Rs. 90 only. When it
is mentioned on package 15 % discount then the percentage on MRP is to be
calculated and deducted. Rs. 100-15= Rs. 85 is to be paid.

(ii) Premium

When the product is purchased the customers get additional items with the
purchased item free of cost. This provides extra benefit or value to the
customers. The customers save money through this. Sometimes when extra
item with the purchased item is given to the customers and they may not be
in need of that item. It may not be motivated much more customers in
comparison with price off or discount. The premium may be of different types
such as over the counter, packed premium, banded premium and loyalty
premium.
When a customer is purchasing items and on the counter itself an extra item is
given that is called over the counter premium. For example a customer
purchased one pen and with pen a pencil is given free of cost on the counter
itself it is an example of over the counter premium.

When a product is packed inside the pack of the product purchased then it is
called packed premium. For example a packet of pencils is purchased and
inside the pack a scale and cutter are enclosed. This is called packed premium.

When a product is banded with the tape or strip with the main product and
sold to the customers. It is an example of banded premium.

When a customer repeatedly bought the products in past and giving proof of
the purchase, then it is called loyalty premium. By producing evidence of the
purchase the customers get additional item an example of loyalty premium.

(iii) Quantity off

Under this sales promotion method the additional benefit is given through the
quantity of the product bought. Without payment an extra quantity of the
product is packed in the pack itself or separately. It is called quantity off
method. For example, in a pack of Rin detergent cake of 100 gms extra
quantity of 20 gms is included and in total 120 gms is packed. The price of the
packet is not changed but it is marketed on the package as 20 gms extra.

(iv) Free samples

In this sales promotion method small packs of the products are distributed to
the customers during buying or without buying free of cost. In market the
samples of shampoo, washing powder, tea and coffee powder medicines, etc.
while purchasing various items from the market. Sometimes these free
samples are distributed by the shopkeeper even without purchasing any item
from his shop. The main objective of this method is to attract consumers to try
out a new product and thereby create new customers. Some businessmen
distribute samples among selected persons in order to popularize the product.
For example, in the case of medicine free samples are distributed among
physicians, in the case of textbooks, specimen copies are distributed among
lecturers and teachers in schools and colleges.

(v) Exchange schemes:

When the customers are going for purchasing the product they are offered to
get exchanged their old item at a reasonable price. It refers the offering
exchange of old products for a new product at a price less than the original
price of the product. This is useful for drawing attention to the product
improvement. This is more suitable for the durable goods mainly. For example
a colour TV set price is Rs 10,000 and exchange offer is giving for black and
while set of Rs 1000. It means the old set is to be given to the dealer and it
price would be counted Rs. 1000. Balance Rs. 9000 is to be paid. This
motivates the person those who are having less amount but want to purchase
the costly item.

(vi) Coupons

Sometimes, the company issues coupons either in the packet of a product or

through an advertisement printed in the newspaper or magazine or through
mail. The presentation of the coupon accepts the benefits to the customers. A
coupon authorizes the holders to get the discount of printed amount of
coupon. These coupons can be presented to the retailer while buying the
product. The holder of the coupon gets the product at a discounted price. For
example, if a packet of biscuit is purchased and inside its pack a coupon of Rs.
3 is found.The customer presents it to the retailer and get discount of Rs 3
when he buys another packet of biscuit.

(vii) Fairs and exhibitions

This is one of the promotion methods for creating awareness of the new
products and mainly durable and high price products. Fairs and exhibitions
may be organized at local, regional, national or international level to introduce
new products, demonstrate the products and to explain special features and
the usefulness of the products. Goods are displayed and demonstrated and
their sale is also conducted at a reasonable discount. The fairs are conducted
mainly for IT, engineering goods, automobiles, industrial goods etc.

(viii) Trading stamps

Another method of inducing the customers to buy the product is the issue of
trading stamps. In case of some specific products trading stamps are
distributed by the companies as per the value of their purchase. The
customers those who have collected and produced these stamps of sufficient
value within a particular period gets benefits from the company. This method
induces customers to purchase the products more and get benefits by
collecting trading stamps.

(ix) Scratch and win offer

In this method the company provides the scratch facility on the pack itself.
Those who buy the product can scratch the card and win the prize. In this way
customers may get the benefits as per the scratching scheme whatever is
mentioned on the scratch mark. This method also motivates the people to
some extent but not very high.

(x) Money back offer

When the product is not known to the customer in the market. The customers
are not sure about the benefits of the customers especially in case of new
products. Under this scheme customers are given assurance that full value of
the product will be returned to them if they are not satisfied after using the
product. This creates confidence among the customers with regard to the
quality of the product. Under assurance only the customers are taken chance
to buy the new products.

(xi) Easy finance scheme

This scheme is offered by the company when the product is of high price and
customers may not have that much amount to buy the products. The easy
finance schemes are arranged by the company with the banks and finance
companies. The loan facility is given at lower rate of interest subject to certain
terms and conditions. This motivates the customers to buy products like cars,
laptops, refrigerators etc.

(xii) Contest or sweepstake

To motivate the customers for the purchase of the product of another method
of contest or sweepstakes can be used by the company. In contest for entry
certain skills are needed but in sweepstakes no skill is required to participate.
It may also motivate the customers in some of the cases also.

(Xiii) Other Offers

A variety of promotions are seen in ‘Any other’ category. One frequent
promotion in the consumer durable category is the zero per cent finance
scheme for purchase of two wheelers, notebook/PCs, refrigerator, music
system, television, microwave oven, two wheeler.
A different kinds of promotions requires the consumers to invest money in
order to avail of the promotional benefit. In case of fans, this sort of
promotion requires the consumers to purchase 3 fans and pay Rs.90 to get a
wristwatch worth Rs.480. Another such promotion requires the consumer to
buy a fan, pay Rs.40 and get a free camera worth Rs.300. In case of health
drinks, the promotion requires the consumers to pay Rs.7/ more and get a
badminton racket free.

A variant of this promotion is another promotion, which requires an

investment of effort rather than money from the consumers. For example, in
case of tea, the consumers are required to pay Rs.1 and get a Britannia biscuit
pack free along with the tea pack. In case of salt, the consumers are required
to collect a newspaper coupon and pay Re.1 to get a pack of salt.

Yet other types of promotions require an investment of both money and

effort from the consumers in order to avail of the promotional benefit. For
example, a soft drink promotion requires the consumers to collect crowns and
put in some money to get a price discount on the soft drink. In case of ice
cream the consumers are required to collect three ice cream wrappers to get
a scratch card which gives them the opportunity to win lakhs of prizes. In case
of chocolates, the promotion requires a consumer to exchange empty
chocolate wrappers to get movie tickets or bunny stickers free.

Marketing Strategy for select wheat Flour Brand:

1. Pillsbury:
Pillsbury is a global food brand that is trying to replicate its success in Indian
market. The brand was launched in India in 1998 as a result of a joint
venture between Godrej and Selviac Nederland BV ( Pillsbury). Pillsbury has a
rich heritage dating back to 1869. It started as a flour milling company named
A Pillsbury and is now one of the largest brands in the food products market in
the world. In 2002, the company was taken over by General Mills.
When Pillsbury was launched, it had the option of coming with the
blockbuster global "ready to eat products". But it chose a contra approach
heeding to the advice given by Mckinsey “GO Basic”. So Pillsbury launched
Pillsbury Chakki fresh atta ( pounded wheat flour) in the Indian market. It was
a bold move because the atta market is a commodity market and the branded
atta market is only 3% of the total atta market in India estimated to be around
23,000 crore.

Pillsbury chakkifresh atta was launched in India on the platform of softness.

Since ordinary Roti’s lost their softness after some time, Pillsbury claimed that
its Roti’s retained the softness for over 6 hours. This appealed to the modern
homemakers since Rotis can be kept in tiffin boxes without worrying about
softness.

It was a tough task for Pillsbury to enter into Indian kitchens since the
households followed traditional way of buying wheat and giving them to flour
mills. Pillsbury realized that food products marketing are more of Repertoire
marketing where more variety is the key to success. Pillsbury decided to move
up the value chain by coming out with a range of products.
The first one was the launch of Oven cake mixes in 1999. The product failed in
the market because of poor penetration of microwave ovens. Taking a lesson
from this failure, came the successful launch of Cooker Cake mixes in 2000 ie
cakes can be made by using pressure cookers.
Despite these launches, Pillsbury was not happy with the way the atta brand
was moving. A marketing research showed that health was a leading attribute
that customers look for when they buy food products.

In 2004 the product was relaunched in the health platform with emphasis on “
good to heart” since heart problems are on a rise in Urban market. The idea is
to promote the idea that whole wheat atta is good for your family’s heart .The
latest positioning is “ Dil se Khao “ reinforces the health positioning. The brand
is endorsed by Healthcare foundation.

Using the innovative differentiation and positioning, Pillsbury is having a

market share of 8% in the branded Atta market.

2. Annapurna:
Launched nationally in 1998, Annapurna Atta was aimed at helping the
homemakers to provide wholesome tasty nutrition to their family. After its
successful launch, in a pursuit to stay ahead and cater to the changing
mindsets of the Indian consumer, Annapurna Atta was fortified with extra iron
and vitamins, which are essential for children during their formative years. It
was awarded the prestigious ‘Awaaz Consumer Award” for the most preferred
brand of atta for two successive years in 2006 and 2007. Annapurna atta
continues to promise soft tasty rotis as it is made from the choicest of grains,
brought fresh from the farms, cleaned three times and packed in the most
hygienic conditions.

Marketing Strategies for Annapurna:

1. Introduce the 100% Sharbati Atta for high class people. This is produced
from an exquisite, premium Sharbati wheat from the potash rich soil of
central India. Grown and nurtured in the most fertile black soil of Madhya
Pradesh it is a rare gift of nature.

2. Introduce Annapurna Multi Grain Atta is a healthy blend of six natural

grains like whole wheat, maize, oats, soy, Bengal gram and barley. It’s a good
source of fibers with proteins and essential nutrients. It contains essential
nutrients like iron, folic acid and zinc. Considering the current lifestyle
patterns, these nutrients are essential. Protein is needed for healthy growth &
development while a diet high in fibre helps to maintain a healthy digestive
system. Iron is an important nutrient for stamina and it has folic acid for the
healthy food formation. In all, a complete diet.

3. Due to vast the marketing network by Hindustan lever, push the sales
throughout the country.
4. Aggressive Advertisements in television targeting Indian Housewife.

5. Tie up with big malls and supermarkets.

6. Free gift for Annapurna salt along with Annapurna Atta for a specific
period.