ITC’s Hyperlocal Strategy Targets Region-Based Food Products
ITC’s strategy to hit its target of Rs. 10,000 crore mark in its food business has led to the conglomerate to target region specific food products to help boost its ever growing portfolio. The company’s aim to extend its footprint in the packaged foods business in India has directly contributed to launching new products based on adhering to the local taste of the people living in a specific city or a town. ITC also plans to move the launch of these specific products nationwide based on the response from these regions.
New Product Launches
ITC has already launched several products over the past few months which suits the palette of the local crowd. Punjab da Kinnow, a fruit juice brand under the company’s food division, was launched targeting Punjab, where the the variant of the orange used in the juice is grown, and other Northern states, including Delhi. The company also launched spices under it MasterChef brand in Andhra Pradesh and Telengana. Speaking about the new product region-specific product launches, V.L. Rajesh, Divisional Chief Executive, ITC Foods Division, said, “The idea is simple. Identify popular mass-segment products that are only available in a particular market. Develop those into a packaged product under the ITC brand to be sold in that particular market.”
Targeting Local Crowd
With the launch of these products, the company is piloting a new method to reach people in specific cities and boosting its brand image in those cities. The company plans to target each state with products that are suitable for its local customers. “We are working on a few. Over a period, we’ll have specific products for each state. We may even look at products that would only be relevant for a market covering an area of just a couple of hundreds kilometres. Some of these will become large revenue contributors in the longer term, ” added Rajesh.
Taking It National
The company also has plans to take these local products nationwide based on the response level from the local crowd. According to Rajesh, expanding the footprint of an existing product which has support is far more cost-efficient than launching a new product, which requires careful research and development, that does not suit the consumer’s needs. The strategy to launch existing products with an established market share will lead to higher revenue from a nationwide release. “Some would work, some may not. But over a period we’ll have a larger kitty,” added Rajesh.