The company's in-house research team of eight people travelled extensively across the country, studying typical home-made snacks such as bhel, khakras, golgappas and so on. The verdict: as many as 70 per cent of those surveyed confirmed that they would like to have snacks which are slightly familiar yet have variations in taste.To achieve this, the company turned to the chefs from its restaurant business to dish out new and tasty combinations of existing delicacies. They created 16 different varieties inspired from regular snacks such as potato chips, khakra and pakodas.
The Company has distributed more than 4 lakh large racks, to display the brand at all points of sale. The racks created so much impact that even competitors like market leader Frito-Lays introduced its own version of wafer racks. Within six months of the launch, Bingo was available in more than 2,50,000 retailers across the country. according to which all retail stores of Future group like Food Bazaar, Big Bazaar, and KishoreBiyani’s Fair Price etc will stock only ITC’s Bingo entire cigarette distribution network including betel shops are being used to distribute the product to a wide range of consumers
Brand recall along with 16 flavors in three SKUs helped ITC to capture 16% of market share in just 18 months.Thus, apart from what the flamingo has and lacks, a certain prof Sunder Raman talks about tangy lemon pickle and chips between Tamil-speaking lessons. Similarly, a spoof of tele-marketing ads dubbed in Hindi - complete with staccato voice and pretentious excitement about the product - talks about Mad Angles; two friends get confused between five liars and the company's "Live Wires"; and a CBI inspector clarifies the difference between the criminal Zango and Bingo Potato wafers.All this for better brand recall. "We are trying to play with similar sounding words to get the brand name Bingo to register in consumers' minds," says Ravi Naware, chief executive, foods division, ITC.ITC has big investment plans for the snacks project. Naware specifies, "In two years, we will invest Rs 150 crore; Rs. 60-70 crore has already been invested in the initial rollout." The target too, is aggressive. "We are eyeing a 25 per cent share of the Rs 2,000 croreorganised packaged snacks market in the next four-to-five years." demolishes many myths. With this launch, ITC Foods ended up blowing 30-40% of its media budget on new media campaigns—something unheard of in a market where the Internet is used mainly for lead generation and rarely, if ever, for brand-building.
The traditional conceptual model for creating any advertising or marketing communications message is the AIDA Model: get Attention, hold Interest, arouse Desire, and then obtain Action.The advertising strategy used humour to sell Bingo. Bingo!’s advertising follows the AIDA model (Attention, Interest, Desire, Action). The clutter-breaking ads with their slapstick humour and irrelevant themes garnered enough eyeballs to create awareness of the product and generate an interest towards the product in the minds of consumers. The ads are simply insane & nonsensical to the point of being bizarre & utter crap. And that is why they are so funny. This resulted in high product trials.What’s interesting is the fact that Lays uses a brand ambassador approach with the celebrities having mass appeal such as Saif Ali Khan, JuhiChawla & M S Dhoni whereas Bingo has managed to do well without one. It still doesn't have an ambassadorThe commercials were created by O&M, which was selected by ITC after the company called for a pitch in June 2006. "This being the first campaign for the product, we have focused on the products and the brand name to aid recognition. Also our tag line emphasises that we have many combinations to offer," says MalvikaMehra, senior creative director, O&M, who wrote the creatives along with colleague and senior creative director AmitAkali.Since the company's target audience is people in the age group of 20-35, the company began with Internet. It created a website www.bingeonbingo.com, which has free offers, games, downloads and even mobile games. The site has been advertised with banners on websites such as Yahoo, rediff and Sify. It's betting big on television, too.The company has booked 10 to 15 spots per channel per day on youth channels such as MTV and Star World, mass Hindi channels like Zee and Star TV, and news channels. Meanwhile, the company's radio commercials can be heard between 8 and 10 a.m. and between 6 and 8 p.m. as research revealed that most youngsters travel during these hours and listen to the radio then.That's not all. In top 30 cities, over 1,000 outdoor hoardings have been booked to carry images of the product. Like Frito-Lay, ITC, too, has designed a merchandise rack for its products. The company plans to distribute this to 500-600 thousand retail shops to ensure visibility at the point of sale.Then, we blended them—based on feedback on regional tastes from our chefs—using our tobacco blending skills. Result: what we sell in the west is not what we sell in the north. We created mass customisation in a commodity,” says Deveshwar. Explans S. Sivakumar, Chief Executive, Agri Business, ITC: “The e-choupal network gives us two distinct advantages. We can buy identity-preserved products directly from farmers.This allows us to blend various grades of atta to suit regional tastes and preferences. Then, our transaction costs are lower than those of others who buy from the mandis.” Typically, various grades of wheat are mixed up and stacked at mandis, making it impossible to identify individual types.In less than five years since launch, Aashirvaad has emerged as a Rs 500-crore-plus brand. It followed the same formula with Mint-o Fresh, which is a blend of mint, spearmint and fresh mint in Uttar Pradesh, Bihar and West Bengal and eucalyptus in the rest of the country. John Caples, one of the greatest copywriters of all time, provides us the following principles (although he was talking about direct response marketing--more about that later--the wisdom is directly relevant to all forms advertising) when it comes to communicating an advertising message:Caples' Principles:Get attentionHold attentionCreate desireMake it believableProve it’s a bargainMake it easy to buyGive a reason to buy nowAn even newer paradigm, according to some, is Interrupt, Engage, Educate and then Offer. In any of these models, the first step is to somehow get a person's attention.It should be noted, however, that there is a growing trend of consumers being more resistent to advertising messages and less open to marketers communicating with them without their expressed permission. As such, advertising models are continuously evolving due to an explosion in media outlets and shifting public opinion. As new communications channels expand at a fast rate, advertisers are exploring the new media options at a rapid pace and exploring new ways to reach an often fickle target audience.
Introduction of new brand<br />Making of a new Brand: Bingo<br />By: Group-5<br />
Group 5:<br />
Objective of the Project<br />To find, Study and evaluate the process followed by company in Introduction of NEW BRAND: Taking example of ITC Bingo.<br />
About <br /><ul><li>The launch is symbolic of ITC Foods' distinct approach of introducing innovative and differentiated products in a largely undifferentiated market place.
Bingo’s launch was strategically timed around the World Cup.
The idea was to get the consumer to take that first bite.
The company has positioned this brand as a fun brand targeting at the youth.
The snacks are available in packs priced at Rs. 5/- & 10/-</li></li></ul><li>flavours<br /><ul><li>Bingo’s portfolio includes an array of products in both Potato Chips & Finger Snacks segment.
The Potato Chips offerings comprise of 4 innovative variants inspired by the snacking habits of different parts of the country as well as Masalas, Salted and Tomato flavours.</li></li></ul><li>Bingo! ~ Product Portfolio<br />ITC Foods<br />6<br />
Bingo! ~ Product Portfolio<br /><ul><li>Bingo provides innovative finger foods like the pakoda inspired Live Wires,
Khakra inspired Mad Angles and time pass snack in the form of TedheMedhe.
The Potato Chips offerings include Salted, Masala and Tomato flavours, ChatkilaNimbuAchaar, etc.
Bingo! – International Cream & Onion is the brand’s latest addition to its existing unique and exciting range. </li></li></ul><li>research<br />Company’s in house research team of eight members<br />Studying home made snacks;- bhel, golgappas<br />70% of those survey conformed<br />Chef to dish out new and testy combination of existing delicacies<br />
Purpose of Research<br />To find the position and perception of Bingo as a brand in Consumers Mind.<br />To understand launching strategy of a new brand (Bingo) and its effect on consumers perception and Brand positioning. <br />
Research Design<br />Category of research:<br />Descriptive.<br />Exploratory. <br />Data Collection Method<br />Primary Data: From Consumer of Bingo and Frito lays.<br />Questionnaire- Respondents were asked open and close ended questions to prospects.<br />Secondary Data : To understand the launching strategy of Bingo.<br />From various journals and research papers and sites.<br />
Research Design Cont….<br />Sampling Design<br />Target Population: Consumers of Snacks like Bingo and Frito Lays etc.<br />Sampling Technique: <br />Convenient and Judgmental Sampling Technique.<br />Sample Size = 20<br />
Abstract: Strategy followed by ITC in Brand Creation Bingo !<br />Research on Consumption Habit and consumer behavior by ITC<br />Need Recognition<br />Field research by interviewing 1000 respondents<br />Need and availability GAP analysis<br />Segmentation of Target audience<br />Demographics (age 18-30)<br />Product creation<br />With consumers preferred flavors. <br />Positioning<br />High frequency promotion.<br />Vast distribution.<br />
Strategy based on 4ps<br />
Product<br />Bingo! positioned itself with its Indian flavors such as TandooriPaneer, Tikka, Spice Paneer etc.<br />The segmentation was mainly done on basis of the age of the people.<br />The offerings under the Finger Snacks segment are unique and innovative<br />
Packaging<br />ITC has done the packaging such that the product attracts the buyer.<br /> It launched packs with different quantity keeping in mind the specific consumer demand.<br />Product (Cont…)<br />
Initial pricing of ITC bingo is a direct frontal attack on Frito Lays with pricing of Rs 5, 10 and 20.<br />Frito Lays has launched small packs of Rs 3 each. It needs to be seen whether ITC can leverage upon its huge distribution network to counter this.<br />Price<br />
ITC has adopted a Market Challenger strategy with the launch of Bingo<br />It has chosen a combination of flank and frontal attack against the market leader Frito Lay’s. <br />ITC has made a strategic alliance with Future group <br />Place<br />
Place (Cont…)<br /> HORECA<br /> entire cigarette distribution network including.<br /> Initially Bingo sponsored many Bingo Remix nights in various clubs as well. <br />
Bingo’s launch was strategically timed around the World Cup<br />Within a month of the launch of the initial advertisements, 70% of the viewers could recall the brand thus capturing a share of the mind of the consumers<br />Promotion<br />
Bingo's advertising follows the AIDA model <br />No Brand Ambassador<br />Comes in unique shapes for better recognition<br /> Brand recall along with 16 flavors<br />Promotion (Cont…)<br />
Value ProPosition<br /><ul><li>Variety & innovation in a largely undifferentiated market
Foray into the “Health Snacks” segment by introducing Bingo as baked-chips
ITC launched BINGO in 16 flavors to cater to tastes of the country
Leveraged the retail and marketing expertise of ITC Foods</li></ul>Market Share: Organized Sector<br />After the launch of Bingo, Dec 08<br />Before the launch of Bingo, Mar 07<br />
Positioning<br /> Bingo! is positioned as a youthful and innovative <br />snack, offering the consumers with choice in terms <br />of both formats and flavors including Local tastes.<br />Crisp and Clear Punch line<br />Lays is positioned as a very good quality snack with international taste.<br />No one can eat just One..!<br />
Competitors<br />The major competitor of Bingo is Lays with a market share of 45%<br />Haldiram with market share of 27% <br />Bingo is holding 16% <br />Regional players are holding rest of the share<br />
28<br />What’s in my name ?? (brand name)<br />
Who am i?? (Brand identity)<br />Bring excitement to the lives of the customers. <br />A brand which is for the whole country by providing the customers with tastes (flavors) from all around India.<br />Bingo identifies itself as a brand which is youthful, fun and colorful <br />The unique shapes in which it comes, which makes it easily recognizable amongst the consumers. <br />
30<br />What do I possess?? (brand property)<br /><ul><li>Bingo has a unique musical sound that is loved by everyone.
It is one of the properties that is remembered by everyone and it is used to recall the brand by every age group.</li></li></ul><li>How do I look? (Brand Packaging)<br /><ul><li>The packaging is very attractive with dominant variant color, crimp border colors and a pictorial view of the flavor.
This property of flavor depiction is very informative for consumers and a layman can also associate with it.
The names provided to various variants are very traditional and Indian, so that people can easily understand the flavor.</li></li></ul><li>What do I portray? (Brand Personality)<br />Stylish and Cool <br /><ul><li>Innovative
Adventurous</li></li></ul><li>ADVERTISEMENTS <br />The advertising strategy used humour to sell Bingo. <br />ITC used a 360 degree brand building effort to boost the new launch. <br />Ogilvy & Mather (O&M), focused to position the brand as youth-centric. <br />The variety came through a series of fun campaigns — consumers were asked to design the ads for Bingo using the angular shape of the chips as the central theme. <br />Crowd sourcing which serves two purposes – it engages the end-consumer and the campaign is done at the lowest possible cost.<br />
MERCHANDISING BINGO!<br />Superior material (Moulded plastic) provides better aesthetics<br />Increased Visibility of packs with amphi-theatrical tray design <br />Slotting allows for standalone vertical stability of packs<br />Modularity & Standardization<br />Entry with 3 trays to avoid excessive inventory/empty space<br />Whenever needed, 4th tray can be introduced <br />Air Hanging Solutions<br />Hangers<br />Net Baskets<br />
MARKET WARFARE<br />
Bingo!<br />Most of the advertisements were considered vague <br />In initial stages about 70% of viewers could recall the brand.<br />This helped in capturing 16% of market share in just 18 months.<br />The Advertising was highly successful in creating Brand Awareness<br />
Lays<br />Frito Lays has revamped the product by reducing the saturated fat content by 40 per cent. <br />Healthy snacks is the next buzzword.<br />Frito Lays is expected to launch Rs 3 packs for higher penetration.<br />
SUCCESS FACTORS<br />High Decibel Advertising : Bingo was able to capture the Share of Noise through its heavy spend. <br />Novelty Factor : The snack market is driven by impulse purchases<br />Regional Flavors: Lays was the first to localize flavors but Bingo specialized on local flavors and the key differentiator was the Localized flavors.<br />Distribution strength: The strong distribution has helped in terms of Shelf Space and retailer support.<br />
I try Bingo because it stands apart, different from the crowd, almost edging on "weird" <br />Differently shaped, cool and fun chips to have<br />Good traditional Indian flavours but I love to consume those flavoured items as dishes in the restaurant <br />
Too many flavours confuse me!!!!<br />Not able to differentiate whether it is Indian or international <br />Amazing taste!!!!<br />
Problems<br />Stagnant Market Share<br />Brand Loyalty of Lays customer is posing threat to Bingo<br />Many of the flavors of Bingo are having the same look and packaging<br />Advertisements have failed in creating an urge among customers to go and buy a pack of Bingo<br />Unawareness of the variety of flavours<br />Threats of local players<br />Taste and too many flavours<br />
SUMMARY OF FINDINGS<br />From the respondents we can conclude that Indian consumers had a taste of INDIANNESS and DESIPAN while selecting the snacks with excitement and novelty in their hearts. Apart from shape, flavor and taste, satisfaction was high on their priority list which could not be compromised. <br />
BRAND Packaging<br />Bingo! can come up with different shapes of packaging. A triangular pack can be one of the options<br />Benefits: <br />Different packaging always attracts consumers<br />Novelty sustains the consumers’ interest in the brand<br />Usage of different colors for packaging different flavors, so that the customer is able to differentiate among various flavours available<br />
BRAND PROMOTIONS<br />Seasonal promotions<br />Gift packs: Combo packs in festival season with 4-5 flavors<br />Tie up with Coca Cola: At time of Diwali, Cricket Tournaments etc…<br />Title sponsors for programs targeting the youth<br />E.g. Splits Villa on MTV, Indian idol etc<br />
Change in ADVERTISING<br />Change in Advertising: The existing advertisements have been successful in creating brand awareness. The new advertisements will focus more on taste and variety of flavours available and tempting the consumers to purchase the product after seeing them. <br />Acontinuing character will be used in the advertisements. An animated potato will be used in the advertisements, where the tastes of the various flavors will be theme the advertisements<br />
Flavours<br />Having too many flavours is causing some problems because customers can’t differentiate between.<br />So many (16) variants is a good option to launch with so that people are tempted to try each of them<br />But gradually they can reduce from their portfolio, the ones which they come to know are not doing well in the market<br />So this would also reduce the problem of confusion amongst the consumers.<br />
CONTESTS<br />To launch a ‘send in your Bingo! Recipe’ contests.<br />