tuuiiiinnnnnnnnnnn!!!

Submitted By:Ankit Gupta 91006Darrick Arora 91015Kuldeep Indeevar 91027Laksmi Saravni 91028Manish Kumar Verma 91030

Bingo is ITC’s ready-to-eat snacks that hit the market in 14 March, 2007. ITC announced its foray into the Rs 2,000-crore (Rs 20 billion) fast-moving branded snack market that has one major competitor - Frito-Lay. After biscuits and pasta, the company forayed into this segment which at the time of launch was growing at the rate of 30 percent every year.

Before Launching the Bingo! ITC researched heavily on the consumption habits and consumer behaviour. ITC then based their campaign on solid research insights - like it had done earlier when it entered biscuits.

The company's in-house research team of eight people travelled extensively across the country, studying typical home-made snacks such as bhel, khakras, gol gappas 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.

Bingo after the launch was able to capture the share of noise due to its heavy spending, and was able to eat into the market share of others due to impulse purchase nature of snack market.

ITC leveraged its distribution strength to gain shelf space and retailers support and capture 25% market share in a span of one year. Bingo’s launch was also strategically time around the 2007 cricket world cup, when consumption of snacks was to be increased.

2

History

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Points of Parity:

Pricing.Quality and Quantity.High Consumer awareness.Wide product portfolio.

Point of Difference

Distribution channel of ITC.Name and packaging of Bingo!Emphasis on local taste.Innovation in advertising.

Points of Parity and Points of Difference of Bingo!

Bingo!’s product portfolio consists of wide variety of products catering to two main snacks segments i.e., potato chips and finger snacks segment.

The chefs of ITC Hotels played a prominent role in the formulation and finalization of different products based on the research conducted by ITC. The Potato Chips offerings comprise of four innovative variants inspired by the snacking habits of different parts of the country as well as Masala, Salted and Tomato flavours. Additionally a south-inspired dairy option has also been introduced under the potato chips offering. Finally 16 flavours with innovative twists like live wires inspired by Pakoras, bindaas masti chaas, chatkila nimbu achar and tandoori paneer tikka-flavoured potato chips, chilli and tomato-flavored mad angles inspired by khakras, a different timepass snack Tedhe Medhe and other snacks came out of Bingo!. Since its introduction Bingo! has been also continuously adding variants according to the changing consumer tastes. Bingo! – International Cream & Onion is the brand’s latest addition to its existing unique and exciting range.

Bingo! Is available in various sizes also which ranges from Rs 5 to Rs 20, the idea is to cater all segments and with this price Bingo! targeted rural population also.

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Product Related Attributes and Brand Portfolio

Snack industry is largely an unorganized market with more than 1000 snack items and hundreds of players. Organized market accounts to 25% of the total snacks industry.

Organised Snack Market

25%

65%

10%

HaldiramLaysOthers

27%

16%45%

12%HaldiramBingoLaysOthers

Before launch of Bingo! After launch of Bingo!

FritoLay of Pepsi is the market leader in the organized snacks industry with a huge 45% market share. And the product portfolio of Fritolay consists of brands like Lays, Kurkure, Uncle chips, Cheetos and Leher. One of the most powerful brands of FritoLays is Lays. Though Lays started as chips in the western flavors like Tangy Tomato, Creamy Onion etc,.taking a cue from its competition Lays has been continuously revamping its brand with different Indian flavors like ChatStreet, Indian MintMischief etc,.

Kurkure symbolizes the spirits of India with its various Indian flavors in snacks. Cheetos operates in cheese puffs and masala balls segment which is mainly considered to be a western snack and

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Competition

targeted to children. The product is clearly differentiated in terms of taste, shape and design. Leher namkeen is a direct alternative to traditional Indian snacks which is mainly dominated by the unorganized players.

For the promotion of the brands, FritoLays has celebrities like Saif Ali khan, Juhi Chawla, Kareena Kapoor M.S Dhoni endorsing different brands. Also Frito Lays keeps its alive with various events like “Chala Change ka Chakkar”, “Chai Time Achievers” etc.,.Kurkure also has a tie-up with South-western railways known as Kurkure Express to increase its brand Visibilty.

All the advertisements of FritoLays are tailor-made as per the segment targeted by each brand. Like Lays funny commercials with Saif Ali Khan and Kareena Kapoor targeting Indian youth. Kurkure family ads with Juhi Chawla targeting typical Indian families etc.,

To counter its competition, Frito Lay India is also focusing on unconventional retail points like cyber cafes and telephone booths, in order to increase brand visibility and product reach.

Haldirams market share is around 27 % and mainly plays in the traditional snacks segment. Haldirams was the first company to focus on the importance of packaging and presentation of the ready-to-eat snacks segment. Haldirams is famous for its traditional

Indian taste of namkeens and has a first mover advantage being the first company to brand namkeens. Haldirams is also continuously introducing new variants in its product portfolio according to changing consumer tastes and local tastes. The communication of Haldirams to its customers is mainly through posters, mailers, hoardings, signage, POP displays and the brand enjoys huge brand awareness with its long presence in the market.

Smart Chips

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Parle’s Monacco entered the chips market as a niche player targeting health conscious segment with its Smartchips, a baked variant of chips. Its directly competing with Aliva of Lays which is also a baked variant of chips. Parle roped in AamirKhan, who is currently endorsing Monaco Biscuits, for Smart Chips to create brand awareness for Smart Chips. The ad features Aamir Khan running around obese people telling them “You will need it”. With its positioning of healthy chips Smart Chips is likely to fill the gaps in the Indian snacks market.

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CommunicationFor the communication Bingo adopted vague advertising strategy, where all emphasis was on to register the brand name in mind of consumers. It was supported by some out of box advertising with the help of O&M. All the communication was vague in nature, which consumers were able to comprehend easily, not much stress was given to the product category.

PricingITC has the advantage of backward integration for Bingo! with its alliances with famers for raw materials through its e-choupal initiative. Also there is ITC’s paper and packaging division for the packaging of Bingo!. This lead to huge cost savings for the company and enabled ITC to aggressively price Bingo! launching a frontal attack against its competitors.

Initial pricing of ITC bingo is a direct frontal attack on Frito Lays with pricing of Rs 5, 10 and 20 to cater the consumers in rural areas also. This worked very well for Bingo! And within one year Bingo! Was a major brand in market.

DistributionITC already has a well established distribution network for its tobacco business which it leveraged for Bingo. Through the well established distribution network, Bingo! was present with 2,50,000 retailers within six months of its launch. The availability and visibility created a huge brand awareness for its target customers. ITC also distributed 4 lakh racks to all its retailers across the country to increase its visibility across the points of sale. The distribution network of Bingo! included organized retail like BigBaazar and also HORECA (hotels, restaurents and cafes) and betel and pan shops across the country.

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Communication, Pricing and Distribution

Customer KnowledgeBingo has successfully used new advertising ideas to create the Bingo brand. It has differentiated itself in a already crowded market by introducing a element of fun and carelessness. Brand association for the bingo are Energetic, cool, Fun, hot, Sweet, youthful, mischievous.

Sources of Brand EquityBingo is offering snacks which encompass various food habits of Indian consumers. So it is able to fulfill the desires of people for various tastes and also by this Bingo has created a unique offering and same has been communicated very well, which establishes primary source of equity for Bingo.

ITC has leveraged its distribution network of cigarettes to sell Bingo. It has ensured visibility and availability of Bingo. In small town and villages one may not find Lays or Uncle Chips but Bingo is easily available. ITC pays 4-5% more margin than competitors to retailers, and pays more if the display is better. ITC Food’s target is largely to catch up with Lays in the National reach.

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Customer Knowledge and Sources of Brand Equity

Fun filled, Remembered by Everyone

10

Bingo!!

Indian flavours

Senseless ads

New Shapes

Poing!

ITC Foods

Weird and wacky adsParty time

Lays is better

Humour

Bad taste

Timepass

Brand Mantra

The Customer based brand equity pyramid of Bingo! Is reflecting a element of differentiation from what snacks were perceived to be. ITC has successfully implemented its communication and same is being reflected in the above pyramid.

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High awareness which is comparable to the market leader Lays and Kurkuree

Youthful and Mischievous.

Tasty, Cheap and Easily Available.

Tasty, innovative and unique

Fun, Excitement

Exciting and Youthful – For people who are adventurous

CBBE Pyramid for Bingo!

Brand Identity Prism for Bingo!

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ITC, Shapes,Games,

Poing!!!

Innovative,

Experiment-ative

Indian, Differe

nt

I am Bindaa

s!!!

Cool, Young

at heart

Outgoing, Fun

loving

Relationship C

ultu

re

Recommendations

Packaging There are many brands on the same shelf, so Bingo need to come up with different

packaging in terms of shape to differentiate itself and catch the eyes of consumers. Due to it novelty will sustain the consumers’ interest in the brand

There should also be high differentiation in packaging for different tastes, so that consumer is able to recall different tastes.

Brand Promotions Seasonal promotions

o Gift packs: Combo packs in festival season with 4-5 flavors, market is growing in this aspect as consumer are shifting from gifting traditional sweets to the

o Tie up with Coca Cola: At time of Diwali, Cricket Tournaments etc…

Title sponsors for programs targeting the youth

o E.g. Splits Villa on MTV, Indian idol etc

Change in Advertising Exciting advertising of Bingo! Has been able to create the buzz in mind of consumers

and also brand recall in mind of consumers in high. Now it is time to focus on new advertisements to make people aware about product quality, taste and other benefits that are coming with it.

There is need to create a character which will help in further differentiation of the product and will help to increase the brand recall.

It was great strategy to launch as many variant as possible but finally there is need to kill some variant which are not doing well in market. It will also help consumers to remember different tastes easily as number will be less.

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Appendix

QuestionnaireNo. of Respondents: 87

Q.1) How frequently do you purchase snacks?( like namkeens, biscuits, chips etc.)

a) Everydayb) 5 times in a weekc) 3 times in a weekd) Once in a week

Q.2) Which of the following brands have you heard of?

a) Uncle Chipsb) Pringlesc) Laysd) Haldiram’s Namkeene) Desi Beatsf) Kurkureg) Bingo

Q.3) Where do you get to know about Bingo?

a) Friendsb) Postersc) TV Commercialsd) Retailerse) Others

Q.4) Have you ever tried Bingo?

a) Yesb) No

Q.5) How many flavours of Bingo have you tried?

a) 1-2 flavoursb) 3-5 flavoursc) 5-6 flavours

Q.6) Did you buy Bingo after watching the TV commercial?

a) Yesb) No

Q.7) Rate Bingo on the following parameters

a) Flavours ------ Not good 1 2 3 Very good

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b) Packaging ------ Not good 1 2 3 Very good

c) Name Appeal ------ Not good 1 2 3 Very good

d) Availability ------ Not good 1 2 3 Very good

e) Taste ------ Not good 1 2 3 Very good

Q,8) Are you satisfied with Bingo?

a) Yesb) No

Q,9) What describes Bingo?

a) Coolb) Func) Energeticd) Mischviouse) Youthfulf) None

Insights from Questionnaire

Frequency of Snacks Purchase by consumers

Everyday Five times in a week

Three times in a weeks

Once in a week

0

5

10

15

20

25

30

35 31

2117 18

How frequently do you purchase snacks?

15

Lays Kurkure Uncle Chips

Pringles Bingo Desi Beats

Haldiram's

Nam-keen

Others0

102030405060708090

85 81

65

44

77

44

69

13

Brand Awareness

79%

21%

Have you ever tried Bingo?

YesNo

1-2 flavours75%

3-5 flavours22%

5-6 flavours3%

No. of Flavours of Bingo tried

1-2 flavours

3-5 flavours

5-6 flavours

16

yes47%no

53%

Advertisements of Bingo affecting the purchase

yesno

not good good very good0

10

20

30

40

50

60

15

51

11

Taste

Very Sat-isfied43%

Satisfied39%

Not Satisfied18%

Are you satisfied with Bingo

Very SatisfiedSatisfiedNot Satisfied

17

Energetic Fun Cool Mis-chevious

Youthful None0

5

10

15

20

25

30

35

9

32

13

34

22

16

What describes Bingo

Friends TV Com-

mercials

Posters Retails Other0

102030405060708090

7

82

1

25

3

Knowledge About Bingo

Series1

Lays Kurkure

Uncle Chips

Pringles Bingo Desi Beats

Haldiram's

Nam-keen

Others0

102030405060708090

85 81

65

44

77

44

69

13

Brand Awareness

18

79%

21%

Have you ever tried Bingo?

YesNo

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