The document provides an overview of the Indian wafer snacks market. It discusses the market size of approximately Rs. 4,500-5,000 crores annually and growth rate of 30%. Major players include Frito-Lay, Bingo, Haldiram, and Balaji. Frito-Lay commands 45% market share. The document then analyzes the industry attractiveness using Porter's 5 forces model, finding the threat of new entrants and competitive rivalry to be moderate and high respectively. Finally, it summarizes the marketing strategies of leaders Frito-Lay and Bingo, and challenger Smart Chips.

1. Wafer WarfareA project aimed at understanding the Indian Wafer Snacks Market with special emphasis on Market Size, Market Structure, Competitors and their Strategies.Submitted To:-Prof. Dr. Amit RangnekarBy:-Rahul VaswaniChetana’s R.K Institute of Management & ResearchRoll No:116 (M3, MMS Marketing)

2. Introduction to the Indian Wafer Snacks Segment The size of the Wafer Snacks Segment in India is estimated to be 4,500 – 5000 crores

3. The market is growing at 30 percent annually

4. The branded players account for 2,000 croresof the market size

5. Major branded players include Frito-Lay, Bingo, Haldiram, Balaji, Parle

6. Potato Chips and Potato based items account for 85 percent of the total snacks segment.

7. As per Nielsen’s Retail Audit, Frito-Lay commands 45% market share, followed by Haldiram at 27% and Bingo at 16%

8. The rest is divided between new players such as Smart Chips, regional players such as Balaji and handful of unorganized playersProminent Brands and their offerings

9. Analyzing Segment Attractiveness(Porter’s 5 forces)

10. Industry Attractiveness (Porter’s 5 forces)Threat of new entry: As the market is growing at 30 percent annually, new entrants may consider it a profitable venture

11. As branded players are priced similarly, new players might penetrate by adopting a lower price or by offering more grammage at the same price (Balaji-strategy)

12. New players with a distinct USP and marketing strategy may find it easier to enter the market (Bingo Strategy)

13. Unorganized players still account for half of the total wafer segment, thereby discouraging market entry

14. Veteran players such as Fritolay, Haldiram etc enjoy economies of scale, well-established distribution and good distributor relations.Hence, the threat of new entrants is moderate.

15. Industry Attractiveness (Porter’s 5 forces)Competitive Rivalry High Competition – Branded Players involved in cut-throat competition to increase market share, entice new consumers, find new markets

16. Low Quality differences among branded players.

17. Quality difference between branded and unbranded offerings is offset by low price offered by unbranded players

18. Cost of switching is low as all players have a similar pricing strategy

19. Brand Loyalty is high for branded playersHence, the threat of competitive rivalry is high.

20. Industry Attractiveness (Porter’s 5 forces)Bargaining power of suppliersSuppliers provide raw materials such as potatoes, spices and other ingredients. Their ability to raise input costs is high.

21. Higher cost of input commodities leads to lower margins, making the market unattractive for distributors and retailers (in an already low-margin, high-volume market)

22. Shortage of any input material may also affect production and thereby impact distribution.

23. Veteran players like Fritolay and ITC already have a well-established network of suppliers. ITC’s e-choupal venture permits a steady supply of raw materials at the lowest price. Hence, the bargaining power of suppliers is high.

24. Industry Attractiveness (Porter’s 5 forces)Bargaining power of consumers Frito-Lay enjoys a healthy lead with a 45 percent market share for it’s portfolio of products

25. Competitor differentiation is in terms of variants and communication.

26. Ability to substitute is high as brands are priced similarly and distribution problems for one brand promote sales for the other.

27. Price Sensitivity is high. An increase in the price of Lays may promote a switch to Bingo for most buyers (except for loyalists)Hence, bargaining power of consumers is high.

28. Industry Attractiveness (Porter’s 5 forces)Threat of substitutes. Indian Snack Segment is high-volume, low-involvement driven (thrives on impulse buy)

29. All snacks are considered to be substitutes of each otherBiscuits, Wafers and local snacks like Chakli, banana chips, farsan etc are all substitutes of one anotherHence, the threat of substitutes is high.

30. Industry Attractiveness (Porter’s 5 forces)Final VerdictThe market is unattractive for players who: Aim to be a me-too product with no significant differentiation

31. Do not have a well-established distribution network

32. Do not have good supplier and dealer relationships However, if one can “Pull” a bingo or carve out a “Smart” Niche ala Smart Chips, the entry to this market may be profitable.

33. UnderstandingTheMarketStructure

34. MARKET STRUCTURE

35. Stages in the Lifecycle of the Category