Group 4: AnkitDuggal Supriya.H.G Sushma.N SwatiBansal Utsav Shah
Indian Snacks INDUSTRY
Indian Snack food market is estimated to be worth US $3 billion
Organized sector is growing at 15 -20 per cent a year.
Unorganized sector is growing at 7-8 per cent.
The market in India is diverse with over 1,000 different snack products and some 300 types of savories.
Potato-based snacks, and in particular potato chips, are the largest product segment, holding an 85%-share of the salty snack market
Major players in this segment include Frito Lay, Haldiram’s & Balaji.
ITC Foods division
ITC Foods, which entered the market in 2001, is the smallest business in the Rs 23,000 Cr. ITC Group.
The launch represents ITC Foods' fifth major line of foods business after the highly successful Staples, Biscuits, Ready-to-Eat and Confectionery businesses.
The Bingo brand of chips was launched by ITC on 14th March 2007 with an aim to capture at least 25 percent market share of the Rs 2000 crore branded snack market within 5 years.
Bingo is ITC's challenge to the monopoly of Frito Lays
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/-
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.
Bingo! ~ Product Portfolio ITC Foods 7
Bingo! ~ Product Portfolio
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.
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
Market Share: Organized Sector After the launch of Bingo, Dec 08 Before the launch of Bingo, Mar 07
Segmentation 12 - 20 Years Conservative, reserved, shy 20-35 Years > 50 Years Segmentation: Age Group Attitude/Behavior Geography Taste Outgoing, Fun Loving, Bindaas 35-50 Years Psychographic (Attitude / Behavior) Demographic (Age Group) Plain Salted North Mustard Sting Nimbu flavor East West Spicy / Red Chilly South Indian Geography Taste
Targeting Outgoing, Fun Loving, Bindaas 20-35 Years West Demographic Age Group Attitude / Behavior Plain Salted East North Spicy / Red Chilly Mustard Sting Nimbu Spicy South Indian Geography & Taste
Positioning Bingo! is positioned as a youthful and innovative snack, offering the consumers with choice in terms of both formats and flavors including Local tastes. Crisp and Clear Punch line Lays is positioned as a very good quality snack with international taste. No one can eat just One..!
Competitors The major competitor of Bingo is Lays with a market share of 45% Haldiram with market share of 27% Bingo is holding 16% Regional players are holding rest of the share
14 What’s in my name ?? (brand name)
Who am i?? (Brand identity) Bring excitement to the lives of the customers. A brand which is for the whole country by providing the customers with tastes (flavors) from all around India. Bingo identifies itself as a brand which is youthful, fun and colorful The unique shapes in which it comes, which makes it easily recognizable amongst the consumers.
16 What do I possess?? (brand property)
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.
How do I look? (Brand Packaging)
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.
What do I portray? (Brand Personality) Stylish and Cool
ADVERTISEMENTS The advertising strategy used humour to sell Bingo. ITC used a 360 degree brand building effort to boost the new launch. Ogilvy & Mather (O&M), focused to position the brand as youth-centric. 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. Crowd sourcing which serves two purposes – it engages the end-consumer and the campaign is done at the lowest possible cost.
MERCHANDISING BINGO! Superior material (Moulded plastic) provides better aesthetics Increased Visibility of packs with amphi-theatrical tray design Slotting allows for standalone vertical stability of packs Modularity & Standardization Entry with 3 trays to avoid excessive inventory/empty space Whenever needed, 4th tray can be introduced Air Hanging Solutions Hangers Net Baskets
Bingo! Most of the advertisements were considered vague In initial stages about 70% of viewers could recall the brand. This helped in capturing 16% of market share in just 18 months. The Advertising was highly successful in creating Brand Awareness
Lays Frito Lays has revamped the product by reducing the saturated fat content by 40 per cent. Healthy snacks is the next buzzword. Frito Lays is expected to launch Rs 3 packs for higher penetration.
SUCCESS FACTORS High Decibel Advertising : Bingo was able to capture the Share of Noise through its heavy spend. Novelty Factor : The snack market is driven by impulse purchases Regional Flavors: Lays was the first to localize flavors but Bingo specialized on local flavors and the key differentiator was the Localized flavors. Distribution strength: The strong distribution has helped in terms of Shelf Space and retailer support.
Brand identity Prism Innovative, Experiment-ative ITC, Shapes, Games, Poing!!! Physique Personality Indian, Different Outgoing, Fun loving Culture Relationship Customer’s Reflection Customer’s Self-projection Cool, Young at heart I am Bindaas!!!
Survey Survey Questionnaire for Bingo!
Survey Analysis 1.1 Frequency of chips purchase
1.2 Awareness about brands
1.3 Knowledge about bingo! 1.4 Tried Bingo!
1.5 No. of flavours tried 1.6 Impact of Bingo commercials on buying decisions Did you buy bingo! After watching the commercial
1.7 Rating Bingo 1.7.1 Flavours 1.7.2 Packaging
1.7.3 Name Appeal 1.7.4 Availability
1.8 what describes bingo!?
1.9 Recallable properties
Nodal map For bingo!
38 bole to?????
I try Bingo because it stands apart, different from the crowd, almost edging on "weird" Differently shaped, cool and fun chips to have Good traditional Indian flavours but I love to consume those flavoured items as dishes in the restaurant
Too many flavours confuse me!!!! Not able to differentiate whether it is Indian or international Amazing taste!!!!
Problems Stagnant Market Share Brand Loyalty of Lays customer is posing threat to Bingo Many of the flavors of Bingo are having the same look and packaging Advertisements have failed in creating an urge among customers to go and buy a pack of Bingo Unawareness of the variety of flavours Threats of local players Taste and too many flavours
Bingo! ~ Product Portfolio ITC Foods 42
BRAND Packaging Bingo! can come up with different shapes of packaging. A triangular pack can be one of the options Benefits: Different packaging always attracts consumers Novelty sustains the consumers’ interest in the brand Usage of different colors for packaging different flavors, so that the customer is able to differentiate among various flavours available
BRAND PROMOTIONS Seasonal promotions Gift packs: Combo packs in festival season with 4-5 flavors Tie up with Coca Cola: At time of Diwali, Cricket Tournaments etc… Title sponsors for programs targeting the youth E.g. Splits Villa on MTV, Indian idol etc
Change in ADVERTISING 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. 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
Flavours Having too many flavours is causing some problems because customers can’t differentiate between. So many (16) variants is a good option to launch with so that people are tempted to try each of them But gradually they can reduce from their portfolio, the ones which they come to know are not doing well in the market So this would also reduce the problem of confusion amongst the consumers.
CONTESTS To launch a ‘send in your Bingo! Recipe’ contests.