MUMBAI: ITC Foods is betting on a consumer cohort that has the money to spend but is often overlooked by companies while devising their product strategies – thanks to all the buzz around the gen Z and millennial cohorts.
The maker of Aashirvaad atta and Sunfeast biscuits is now targeting consumers in the 45+ age bracket who look for healthier food choices in the retail shelves but may not always find the right product mix.The company is pushing a whole new range of items including upma, oats, cookies and atta packed with natural ingredients for the segment and has branded the range as the ‘right shift.’ The market opportunity is big – nearly 10 million households – and the idea is to eventually add this offering to every food category that the company is present in.
“According to experts, by 2050, 40% of India will be 45+ (consumers more than 45 years of age). Due to the bodily changes happening with age, people are consciously looking to make shifts in their food choices but often don’t know what the right option is. This consumer segment has the propensity to spend, and food accounts for the bulk of the share of their discretionary spends. They are discussing and debating options they should be adding to their diet to remain healthy and active,” Hemant Malik, executive director at ITC told TOI.
FMCG brands are trying to identify untapped market opportunities and gain a larger share of the consumer wallet. “We are looking to gain market share in several categories through a robust portfolio strategy and innovation across segments. Creating relevant differentiations across portfolios that cater to various consumer segments and their evolving needs will be key to achieve this,” said Malik.
The strategy to cater to the 45+ years age group also fits in well with the tobacco-to-FMCG conglomerate’s broader game plan of building a future ready portfolio, something it has internally dubbed as ITC Next. Under the Next strategy, the FMCG business has been tasked with crafting categories of the future and building a product portfolio that addresses adjacencies.
Besides, the new offering will also help ITC drive premiumisation, a trend the FMCG sector has been tapping into, as rising disposable incomes nudge affluent consumers to upgrade their purchases and move to premium brands.
The maker of Aashirvaad atta and Sunfeast biscuits is now targeting consumers in the 45+ age bracket who look for healthier food choices in the retail shelves but may not always find the right product mix.The company is pushing a whole new range of items including upma, oats, cookies and atta packed with natural ingredients for the segment and has branded the range as the ‘right shift.’ The market opportunity is big – nearly 10 million households – and the idea is to eventually add this offering to every food category that the company is present in.
“According to experts, by 2050, 40% of India will be 45+ (consumers more than 45 years of age). Due to the bodily changes happening with age, people are consciously looking to make shifts in their food choices but often don’t know what the right option is. This consumer segment has the propensity to spend, and food accounts for the bulk of the share of their discretionary spends. They are discussing and debating options they should be adding to their diet to remain healthy and active,” Hemant Malik, executive director at ITC told TOI.
FMCG brands are trying to identify untapped market opportunities and gain a larger share of the consumer wallet. “We are looking to gain market share in several categories through a robust portfolio strategy and innovation across segments. Creating relevant differentiations across portfolios that cater to various consumer segments and their evolving needs will be key to achieve this,” said Malik.
The strategy to cater to the 45+ years age group also fits in well with the tobacco-to-FMCG conglomerate’s broader game plan of building a future ready portfolio, something it has internally dubbed as ITC Next. Under the Next strategy, the FMCG business has been tasked with crafting categories of the future and building a product portfolio that addresses adjacencies.
Besides, the new offering will also help ITC drive premiumisation, a trend the FMCG sector has been tapping into, as rising disposable incomes nudge affluent consumers to upgrade their purchases and move to premium brands.
