Mona Mehta
ITC Ltd has charted out aggressive
marketing plans to promote its entire agarbathi range in India and in the
international market as well.
As for the Indian market, the company is
planning to expand its existing number of retailers from 25,000 to two million across the
country within a year. At present, the company’s 25,000 retailers cater to
Maharashtra, Tamil Nadu, and Bangalore, ITC Ltd’s ITC Agarbathi Business CEO VM
Rajasekharan told FE.
On the company’s new plans, Mr.
Rajasekharan said: "Our objective is to increase points of our product availability
in the market by targeting small convenience shops, including tobacco retailers."
In order to create awareness about its agarbathi
range, the company is for the first time planning to launch new mass media advertising
campaigns which will include radio, television and print ad campaigns during the second
quarter of 2003, Mr. Rajasekharan said.
"With the move, we hope to achieve a
market share of around five per cent in the Rs 1,000-crore agarbathi market in
India within a year," he added.
At present, ITC’s agarbathi
brand competes with regional brands such as ‘Cycle’, ‘Padmini’ and
‘Vasu’. "To gain an edge over competitors, we have agarbathis
catering to all the three segments. The ‘Spriha’ range, targeted at the top-end
of the market, is priced at Rs 20 for 20 sticks in nagachampa and gugool fragrance.
Spriha is made by the Aurobindo Ashram in Pondicherry. The company has also
launched ‘Nivedan’, made by small-scale companies in Bangalore, targeted at the
middle-end of the market priced at Rs 10 for 20 sticks in sandalwood fragrance. The
lower-end ‘Ashageet’ agarbathi in jasmine and rose fragrance is priced at
Rs 4 for 10 sticks and Rs 7.50 for 20 sticks," he added.
Once the company meets up the target of
expanding its distribution network, it will foray into the international market within a
year, he said. As part of its exports thrust, the company is also looking at the
possibilities of foraying into countries such as the US, Europe and South-East Asia to
export its entire range of agarbathis there. "If required, we may also set up
a distribution hub there," he added.
