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ITC- NEW PRODUCT

Submitted By-
Akshay Pandita
Aditya Mahajan
Ankit Patel
Dinesh Yadav
Dipesh Shah
Briefing about the case
Multi-business conglomerate, ITC, as part of its strategy
plans enter one new category every quarter, plans to launch
vegetable and fruits later this year before moving on to
sauces, dips and condiments.

Currently, ITC in June 2017 waded into frozen food segment


launched Masterchef prawns which is available in
Hyderabad and New Delhi and will be available in 5 more
metro cities by October.

The price range for 200 gram packs will be between Rs 185
and Rs 350 and the product will also be available online.

Ahead ITC also plans to launch potato and potato based


value-added products, dehydrated onions, mango pulp,
tomato & tomato puree
Huge opportunity to convert consumers of unpackaged prawns to the frozen super-safe
prawns
Size of the packaged frozen prawns segment in India- Rs. 300 cr
Size of the unpackaged prawns segment in India- Rs. 7700 cr
prawns account for a majority of sea food exports from India valued at around Rs
22,000 crore
Frozen food segment India

In India, consumption of frozen food is very low

Despite the challenges being faced by the cold chain industry, the frozen food market is
expected to grow due to consumer demand and many new players and brands entering into
the industry. These new players will bring into new varieties of product to fulfil the consumer
demand. Frozen foods have also witnessed rapid growth with the evolution and growth in
modern retail. Today, modern trade/retail is a more favoured shopping destination as
consumers find greater variety, quality and convenient pack sizes here
Major factors driving the industry are growing customer craving, rising awareness and
acceptance, increase in selling points, rise in number of working women, changing
lifestyle, deeper penetration by organized retail players and increase in available freezer
space at the retail domain
Hence ITC looked upon an opportunity to penetrate frozen segment in India more
aggressively by launching one product in a quarter due to demand.

We are looking at setting up cold chains which will help us get into products like
branded shrimps, fish or even frozen vegetables
Steps ITC needs to take

The consumption diversity of food products in India is different across regions and
therefore the decision to launch any product must be assessed in detail to ascertain the
extent, and potential, of the market that can be targeted for high revenues
Indian consumers tend to prefer products which offer more value for the
corresponding price points. To attract them, manufacturers have to walk a tightrope in
matching product size and product price. As a result, smaller pack sizes, which can be
retailed at a lower cost, will become popular.
It is critical while introducing a product in this market to educate the customer and
raise awareness about the quality, value, and usage of the product. Hence on the
website http://www.itcmasterchef.com/prawns/ , ITC has mentioned many reciepes and
also come up with app which contains various reciepes for prawn dishes.
Also informative video was released
Despite the challenges faced by the industry, the frozen snacking market is expected to double in
the next 5 years largely due to consumer demand and many new market entrants both in terms of
the number of players and the variety of products offered to fulfill this demand. Innovation and
differentiation will be the key for brands vying for the market share; more glocal (Indian and
western) products will be offered in the market and find greater space in refrigerators. The
investment in developing distribution and supply chain capabilities, in not just the metros and mini
metros but in the Tier towns as well, will convert non-consumers to consumers, enhancing product
usage
From a B2C perspective, these products are positioned as saviors in a contingency, of either non-
planned get-togethers at home or as an easy alternative for city-dwelling commuters and office-
goers who prefer quick/instant food due to the paucity of time. In B2B terms, these products are
now finding a place in the menus of various restaurants, far from being considered fallbacks they
are now considered ready reckoners and standardized offerings by various F&B brands. With the
growth of Cafs and Quick Service Restaurants (QSRs) wherein shop floor kitchen skill levels are a
major challenge, these frozen foods ensure consistency, speed of service, and assured quality. This
creates a vast business opportunity for market players from institutional sales to QSRs and
HORECAs (Hotels, Restaurants, Caterers/ Canteens).
The changing Indian lifestyle is creating a multitude of opportunities for market players
across industries. For instance, the rise in the number of women in the workforce and
the resultant time-paucity along with the increase of at-home socializing, the preference
for nuclear families or that of young professionals living alone allows for the growing
acceptance of Western food and the need for on-the-move freshly-cooked foods.
The Indian market has witnessed the entry of many brands offering a host of products
across various processed food categories. One segment, which has evolved significantly
in the processed food section, is frozen convenience food. The increase in demand for
frozen food products is driven by modern retail chains and stand-alone grocery stores,
who are stocking more varieties of frozen products such as peas, corn and ready-to-cook
and heat-and-eat packaged products. As sales increase, the category is slated to witness
increased penetration and entry of more players and products.
The challenge however has been to preserve the raw meat and non-vegetable
products, the semi-cooked non-vegetable products and the various vegetarian
products that required the shape of the product to be maintained until it reaches the
end consumers. This is where frozen technology has gained prominence over the
ready-to-eat products.
Hence ITC is also looking to set up cold chains for products like shrimp, fish,
vegetables and fruits and asked the state government for additional land parcels
near its plant at Uluberia in Howrah
Conclusion

Though the frozen food segment in India is merely negligible as compared to fresh
food segment, but the upcoming opportunities in urban cities have ruled companies
like ITC to penetrate more in frozen food segment.
The strategy of launching product every quarter will help ITC to eye a turnover
of Rs.1 trillion from the fast-moving consumer goods segment, which requires it to
enter new product categories in next 15 years.
ITC have mission to reduce the entry to barriers in frozen food segments

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