Comparative study between

LAYS & BINGOBY ROHIT VINOD NILAWAR

INDIRA INSTITUTE OF MANAGEMENT,PUNE

RESEARCH OBJECTIVE• To Study which one is better, Lays or Bingo in terms of quality, price, availability and

promotion.

• To Study whether Bingo is giving a tough competition to lays.

• To find out problems that Bingo is facing to establish and maintain its market.

• To find out which flavour of Bingo and lays is most preferred.

• To analyse reason for popularity of most preferred brand.

PRICE COMPARISION• The price of LAYS and BINGO is competitive in nature. Both charges same

price for same packet sizes. However they have advantage over one another in following ways:

• The main objective of ITC was to compete effectively with players who were already there. Hence it launched direct frontal attack by introducing similar priced SKU’s.

• Similarly the pricing strategy for LAYS is consistent with other competiting players. As this market is driven by high impulsive buyers of snack foods there is very little dichotomy in the pricing strategies of all major players.

PROFIT MRARGIN

LINE OF VISIBILITY

SALE

PLACE COMPARISION Let us discuss step by step the advantages FRITO LAY have over

ITC with regard to distribution channel and vice versa:• Being first in the market through its acquisition of UNCLE

CHIPPS, FRITO LAY already has a well established network of distribution and retailers. The brand loyalty enjoyed by LAYS leveraged during the launch of KURKURE, CHEETOS.

• ITC already had a well established distribution network through its Biscuits and ready to eat related offerings which were leveraged in case of BINGO. Further company distributed racks across all retailers to display the brand at all point of sale.

Delivery Issue Of Bingo

Delivery Timing Response

Distribution Process Rating

READY TO STACK

SWOT ANALYSIS• STRENGHT 1. availability of already existed market. 2. Vast network of manufacturing

facilities . 3. Vast domestic market. 4. Urbanisation.

• WEAKNESS 1. Poor Communication facilities. . 2. Poor Delivery.

• OPPORTUNITIES 1. Rising income level & changing

consumption pattern. 2. Favourable demographic profile. 3. Opening of global markets.

• THREATS 1. Affordability & cultural preference

of fresh food. 2. High taxation. 3. Competition between National & regional players.

SURVEY RESULT(FOR CONSUMER)

SAMPLE SIZE- 100

Ques 1: Do you like to have Potato chips?

PIE GRAPH SHOWING LIKING OF POTATO CHIPS

94%

6%

YES NO

• Out of 100 respondents 94 likes to have Potato chips.

• This shows that there is large potential for potato chips market.

Ques 2: Which is your favourite brand in Potato chips?

• Majority of respondents 38% voted for BALAJI as their favourite brand of Potato chips.

• Bingo is way behind only 14% voted bingo as their favourite brand.

• Haldirams is favourite for 32% of them whereas 16 % respondents like other brands & is their favourite.

Ques 3: What makes a particular Potato chips brand your favourite?

PIE GRAPH SHOWING WHAT MAKES RESPONDENTS SELECTED BRAND FAVOURITE

62%23%

10% 5%

QUALITY AVAILABILITY PROMOTION BRAND LOYALTY

• USP of food is it’s quality.

• When respondents were asked the reason to vote a brand their favourite, they answered:

- 62% respondents says Quality is what distinguish their favourite brand from

others. - According to 23% respondents

Availability is another major factor. - Whereas 10% respondents because of

promotion done by brands - 5% vote goes due to Brand Loyalty.

Ques 4: How do you rank BINGO Chips…

PIE GRAPH SHOWING RANK ORDER OF BINGO CHIPS

16%

34%41%

9%

TOP NEXT BEST AVERAGE POOR

• 16% respondents rank Bingo chips on top.

• 2nd place is given to bingo by 34% respondents.

• 41% respondents ranks Bingo as an average potato chips.

• 8% respondents rank it poor.

• Overall Bingo holds a decent position in eyes of respondents.

Ques 5: Do you think Bingo is giving tough competition to Lays?

PIE GRAPH SHOWING RESPONSE ON ''BINGO GIVING COMPETITION TO LAYS''

49%

51%

YES NO

• New still good enough to compete with old & well established.

• 49% of consumers says that yes Bingo is giving tough competition to Lays.

• The rest 51% believe that Bingo has still a long way to go.

SURVEY RESULT OF RETAILER’S QUESTIONNAIRE- sample size : 50

PIE GRAPH SHOWING SNACKS BRAND WHICH RETAILERS STOCK

18%

11%

71%

0%

LAYS BINGO BOTH NIETHER OF THEM

• Most of the Retailers which constitute 71% prefer to stock both Lays & Bingo.

• They don’t want to lose any scope of earning profit.

• 18% of the retailers prefer to stock Lays

• 11% retailers stock only Bingo & that too because of agreement with ITC.

Ques 6: Which snacks brand do you stock?

Ques 7 : Brand which is purchased most by Consumer is?

• Consumer demand is the major tool for product’s success of failure.

• As per retailers Lays occupies 64% of total demand share.

• Rest 34% share is occupied by Bingo.

Ques 8: Which snacks brand provides you with better profit margin?

• It is very interesting to know that both brands- Lays & Bingo provide nearly profit margin to Retailers.

.

4852

MARGIN

LAYSBINGO

Ques 9: Which company is quick at making goods available to retailers when they run out of Stock?

PIE GRAPH SHOWING COMPANY WHICH IS QUICK AT MAKING CHIPS AVAILABLE TO RETAILERS

23%

15%58%

4%

FRITO LAYS ITC BOTH NONE

• According 58% respondents both companies are quick in making goods available to them.

• Whereas 23% respondents find Frito Lays a quicker company.

• The rest 15% voted for ITC.

• 4% retailers believe that both the companies are slow.

Ques 10: Do you think that after launch of Bingo in 2007 Lays is facing tough comnpetition?

PIE GRAPH SHOWING RETAILERS OPINION ON WHETHER LAYS IS FACING TOUGH COMPETITION OR NOT

60%

40%

YES NO

• The same question was asked from consumers & the answer was 50-50.

• But in case of Retailers the result is differrent.

• 60% of the retailers thinks that Lays is facing tough competition.

• Rest 40% respondents thinks that Bingo is far behind Lays.

FINDINGS • PEPSICOS Frito Lays is ITC Internetional Compititer, Balaji fallowed By Haldiram

gives tough comptition to Bingo, cover large Market Share.

• The packet size preferred by consumers for branded snacks is medium size RS 10 packet.

• Lays is the market leader in the branded snacks market followed by Bingo, however there is huge gap between them.

• The quality and availability is the major factor for consumers to prefer their favourite brand.

• Most preferred brand of Frito lay is Lays followed by Kurkure.

• Bingo’s Mad Angle is most preferred among offerings of Bingo and Achari masti is most liked flavour.

• Most of the people feel that Bingo is giving a tough competition to lays.

RECOMMENDATIONS• Bingo should effectively use pull and push promotion strategy to win and capture larger

market share

• Bingo should increase its delivery issue by mentaining proper communication between sales Person & Distribution channal.

• To motivate the Sales guys for increse the awarness of Bingo among retailers by demostating all the latest discounts.

LIMITATIONS• AREA OF OPERATION- I have conducted survey only in Pimpri Chichwad thereby

ignoring other major parts of India which is also a market for both Lays and Bingo.

• Time Limitation- Time was the major constraint for this research work as we had to complete our project in two months.

• Sample size- I surveyed 100 consumers 50 retailers which is very less in ratio to total consumers and retailers for Lays and Bingo.

• .

CONCLUSION• After conducting the survey it can be said that ever since its launch, Bingo as a preferred

brand is on a rise. Although Lays is the most popular brand Bingo has criate niche for itself..

• Bingo is in the growth stage of its life cycle. It has been taking the shelf space of popular brands like Frito Lays due to its strong distribution and marketing strategies. Given more time it is capable of capturing a larger market share and giving tough competition to other brands.

• Bingo has a long way to go in fighting strength to strength with Lays & Facing Tough

Comptition From Balaji, fallowed by Haldiram.

THANK YOU