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Pillsburry leads in branded atta business
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Wednesday, 01 December, 2004, 08 : 00 AM [IST]
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Our Bureau, Mumbai
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"Dil se khao-Good for your family's heart ," reads the slogan on Pillsbury's Chakki-fresh Atta pack. Riding on the health wave, General Mills India has moved the flagship brand of Pillsbury flour onto the health platform and also shifted the focus from softness to wellness. Piillsbury, in spite of sounding foreign, has been trying to crack the market with its chakki-fresh offering to equate it with freshly ground flour, which most Indians continue to consume.
Says Gayatri Yadav, Marketing Director at General Mills, " In spite of being a global brand, we have completely adapted to the Indian market's needs." In fact, the concept of chakki-fresh atta was introduced as the first step towards bringing consumers closer to what they are already used to - that of buying grain and then grinding it to get fresh flour.
When the brand was launched in 1998, it was the first time anyone had offered the Indian consumer rotis that retained their softness over six hours. This was backed by double-layered packaging to keep the product chakki-fresh. Pillsbury is today the top three wheat brands and enjoys a 7.5 % value share as per the ACNeilsen urban data. Besides, it has recorded the highest share in the southern markets, registering a 20% share in the region. Although the southern states have been traditionally rice-eating states, they are making a transition to wheat.
According to company estimates, the branded atta market stands at about 8 lakh tonnes, which comprises about 2% of the total atta market. The branded segment is growing at 20-25 % and General Mills claims Pillsbury has been growing ahead of the market.
Perceived globally as a flour and dough-making company, Pillsbury's challenges in the Indian market have been primarily to break tradition and make consumers more aware of the convenience and hygiene in using branded products. At the same time, it has made efforts to build the brand and believes in charging a premium for its products considering the value it offers consumers.
Distribution had not been an issue since General Mills had the advantage of owing a vast network. For efficient logistics, the company does not have a centralized manufacturing facility. Instead it has spread out its manufacturing structure whereby it sources the flour from the local chakkis across the country.
More than an extensive distribution network, brand building or gaining market share, the biggest challenge has been in terms of creating demand. Says Yadav, " Food being a sensitive market, satisfying regional taste buds is a daunting task, which almost every food marketer faces. You cannot have a 'same size fits all' approach in the foods market."
Pillsburry is not relying on its flagship atta brand alone and has been steadily bringing in a basket of products, which may seem niche at present. Its portfolio now comprises Pillsburry non-sticky semiya, Pillsburry pan fresh pizza, Pillsburry oven cake mixes, Pillsburry custard powder and even imported brands such as Green Giant canned vegetables.
Besides, General Mills has also made India its export hub by setting up a manufacturing base at Nashik. It currently exports atta and frozen flat breads to over six countries. The Pillsburry frozen flat breads include products such as ready-to-puff rotis, stuffed paratha and flavoured paratha. It also supplies the Betty Crocker range of dessert mixes to Europe.
Says Jagdeep Kapoor, MD, Samsika Marketing Consultants, "From an evolutionary phase, General Mills should get into a revolutionary mode."
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