ITC's Foray into Convenience Food Market*



Case Code : CLCB054
Publication date : 2005
Subject : Consumer Behavior
Industry : -
Length : 06 Pages
Price : Rs. 100

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Key words:

ITC, Kitchens of India (KOI), Aashirvaad, Processed food, Convenience food, Retorting technology, Bukhara, Dakshin and Dum Pukht


* This caselet is intended for use only in class discussions.
** More comprehensive case studies are priced at Rs.200 to Rs.700 (US $5 to US $16) per copy.


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ITC Ltd. entered the convenience food market in India in 2003. It introduced its convenience food products under two brand names, 'Kitchens of India' and 'Aashirvaad', for the upmarket and middle-class segment respectively. The caselet titled 'ITC's Foray into Convenience Food Market' examines ITC's launch and pricing strategy for these products in the country. The caselet also gives an overview of the processed food industry in India. ITC's use of retorting technology to ensure a long shelf life for their processed food products is also touched upon.


The emergence of the convenience food industry in India
Market segmentation for convenience food
Use of technology to ensure long shelf life for convenience food products

Imperial Tobacco Company of India Limited (ITC), incorporated on August 24, 1910, was one of India's premier private sector companies with a turnover of US $ 3 billion and a market capitalization of nearly US $ 10 billion in 2004. ITC was a dominant player in its traditional businesses of cigarettes, hotels, paperboards, packaging and agri-exports.

ITC ventured into the branded and packaged foods business with the launch of the 'Kitchens of India' (KOI) brand in August 2001 and the 'Aashirvaad' brand in 2002. By entering the food business, ITC aimed at leveraging on its proven strength in the hospitality industry, packaging, and sourcing of agricultural products...

Questions for Discussion:

1. What are the factors which have prompted ITC to enter the convenience food market? How did they segment their target market?

2. How did ITC ensure long shelf life for its convenience food products?