ITC to tickle local taste buds with new offerings

FMCG major ITC is planning to tickle local taste buds with region-specific offerings.

This means that the company will launch traditional foods — popular to a specific region or State — targeting that particular area.

According to VL Rajesh, Divisional Chief Executive, Food Division, ITC, the idea is to “offer to the consumer” the food of his choice, even if it means going regional.

“Our regional (food) preferences are very strong. It is an opportunity for national players like us to explore,” he told BusinessLine during an interview.

“The strategy is simple. Given an economically viable size (volumes), we will manufacture and supply products which are relevant to the local area. Both in terms of taste and history-of-use,” Rajesh added.

Going local will also create a set of new markets.

“It is not just about the Indian market. Each market — say a Gujarat or a West Bengal — becomes an area of play now,” he added.

Roll out of the strategy has already happened.

For example, ITC launched ‘Punjab da Kinnow’ — a fruit juice under its ‘BNatural’ brand — targeting States such as Punjab, Delhi and UP.

(Kinnow is an orange variant native of Punjab.) It has also launched spices in Andhra Pradesh and Telengana specifically suiting the regions’ taste preferences.

Other regional products are under development stage.

“This is about taking an Indian agri-produce and creating a market amongst the Indian population with an Indian brand,” he explained.

But, does that mean, ITC will go national with these region-specific launches?

According to Rajesh, there is no history of usage of most of these local products outside their home markets.

“By taking the product national, I violate the principle on which it (localised product) was created,” he said.

Rajesh further added that by going local he has treated each consumer/ region as unique. So if the same product now goes national, it will be like restricting options for “other consumers.”

However, there is an exception. If the product has a national demand then ITC can experiment with it, by taking the same outside its core zone.

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