Bingo_Marketing

Marketing project on

Submitted By

PGDM(Executive) Abhas Desai Bharat Dalvi Sanjay Vora Sakshi Vivek Misra To Dr. Vandana Khanna Faculty : Marketing Management

On 26th Sept 2007

CONTENTS 1. 2. 3. 4.

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Acknowledgement ent Executive Summary Mark Market etiing Object jectiives ves Segm Segmen enta tati tion on , Targe argeti tin ng & posi positi tion onin ing g I. Segm egmenta entati tio on of Bi Bin ngo Pro Product A. Geographic B. Demographic C. Psychographic D. Behavioral II. Targe argett Mark Market et for for Bi Bin ngo III. III. Posi Positi tio oning ing A. Per Percep ceptua tual Map Mapping ing Situa tuatio tional Analy alysis sis I. Company: ITC A. Establishment B. Growth an and Div Diver ersi sifi fica cattion C. ITC BCG Matrix II. Customers A. The So Socialites B. The Conservation ionists C. The Working Wo Women D. India’s Rich E. The Super Rich F. The Ultra Rich G. The Sheer Rich H. The Ob Obscenely Ri Rich I. Rural cu customers. III. III. Com Competit etito ors A. Porter’s r’s 5 For Forces Mo Model IV. IV. Coll Collab abo orato rator’ r’ss Anal Analys ysis is

Marketing Group 2: abhasDESAI bhaartDALVI bhaartDALVI sakshiT sanjayVORA vivekMISRA vivekMISRA

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CONTENTS 1. 2. 3. 4.

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Acknowledgement ent Executive Summary Mark Market etiing Object jectiives ves Segm Segmen enta tati tion on , Targe argeti tin ng & posi positi tion onin ing g I. Segm egmenta entati tio on of Bi Bin ngo Pro Product A. Geographic B. Demographic C. Psychographic D. Behavioral II. Targe argett Mark Market et for for Bi Bin ngo III. III. Posi Positi tio oning ing A. Per Percep ceptua tual Map Mapping ing Situa tuatio tional Analy alysis sis I. Company: ITC A. Establishment B. Growth an and Div Diver ersi sifi fica cattion C. ITC BCG Matrix II. Customers A. The So Socialites B. The Conservation ionists C. The Working Wo Women D. India’s Rich E. The Super Rich F. The Ultra Rich G. The Sheer Rich H. The Ob Obscenely Ri Rich I. Rural cu customers. III. III. Com Competit etito ors A. Porter’s r’s 5 For Forces Mo Model IV. IV. Coll Collab abo orato rator’ r’ss Anal Analys ysis is


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Climate Analysis : A. Macro Analysis i. PEST Analysis ii. Pol Political En Environment ent iii. Economical iv. Social v. Technological B. Micro Analysis i. Consumer Profile 6. Marketing Strategies I. 4P’s Analysis A. Product B. Price C. Place D. Promotion 7. Research Methodology I. Research Paradigm II. Data Collection III. III. Samp Sample le Des Descr crip ipti tio on IV. Data An Analysis sis V. Resp Respo onse of Pa Parti rticip cipants VI. VI. Part Partic icip ipan antt Descr Descrip ipti tio on VII. VII. Con Conclu clusion sion VIII.Survey Results 8. Recommendations I. Tech echniqu iques to to im impr pro ove mark market et sh shar aree A. Segm egment ent by Segme egmen nt In Invasi vasio on B. Segment Acid Test C. Conversion Model II. II. Sh Sho ort Ter Term m Rec Reco omm mmen enda dati tion onss III. Long Long Term Recom Recommen menda dation tionss 9. Limitations 10. Conclusion


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ACKNOWLEDGEMENT

We want to acknowledge how much we have learnt from working with our colleagues of versatile backgrounds in completion of this project. We would also want to thank our coach and mentor Dr. Vandana T. Khanna for giving us the opportunity to work on this assignment. We have worked as a team to analyze and explore different horizons of the marketing process via the study of ITC Bingo as a popular brand in FMCG sector.

Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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Executive summary : ‘Love me, hate me, but you can never ignore/forget me…’ This is exactly the philosophy with which Indian Tobacco Corporation forayed into the Indian salty savories market with its ‘ No Confusion, Great Combination’ potato chips brand ‘Bingo’ on March 14, 2007. Right from an advertisement campaign that generated responses from ‘One of the best campaigns to be floated in recent times’ to ‘Was that even an advertisement!’, to taking on the only national player having a decade-long supremacy, in the low-cost branded potato chips market, Pepsi Co, by the horns, Bingo was up against the odds. But just as the very World Cup campaign that it was banking on (ITC was an associate sponsor for the Cricket World Cup 2007) to provide it an initial thrust in the Indian markets, went awry, Bingo hit a green patch in the Indian markets. Within ten months of launching, the wafer snack brand went on to capture 16 per cent market share branded snack market. The company leveraged its existing distribution network and easy access to the supply chain (farmers), to attain such rapid growth in such a short time. However, 30 months after Bingo’s launch, Frito-Lay continues to be top brand in this segment. With the increasing stress on Health-Conscious snacks, and launch of Aliva in June 2009, Frito-Lay is taking the battle in this Rs 2,000 crore branded snack market to the next level. In this project, we with the help of a consumer survey and a retailer survey have analyzed the branded snack segment and devised a marketing plan for Bingo, as it strives to capture 50 per cent market share and emerge as the Numero Uno player in this segment.

W hy w e chose Bingo!!! Existing

successful m arketing plan/ Strat egy of FM CG product.(Allow s us to get insight of import ance of prom otion, distribut ion etc). It's success prod uct in M ulti prod uct/ disciplinary organizatio n ITC (Syne rgy). Innovative/Creative prom otion. Highly com pet itive success. Secon dary research d ata availability. Creative strategies to achieve m arket share (4Ps) Scope for higher m arket share & applicability o f project work.. Easy to stu dy B t o C product. Possible small experimentation.(Eg.Packaging) Team likes it  Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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Marketing objectives: Major

objective of this project is to track the existing marketing strategies and brand positioning of Bingo. To detect target group of customer/s for the Bingo.  To identify market segmentation for Bingo. To determine current positioning strategy of Bingo and to explore different innovative ideas to promote it. To study different branding, pricing, retailing, distribution, advertising strategies for Bingo. To recommend future strategies for the long term success of Bingo by analyzing PLC, STP Ansoff matrix etc

Challenges : Bingo is one the main success stories in Indian marketing of recent times. A well crafted brand arising on the basis of an extensive market research followed by a great channel to distribute is a sure recipe for success. In year 2007, ITC on the backdrop of Cricket World Cup marked its presence in snack market by Bingo campaigns and it turned out to be such a success that even the failure of it launch vehicle( Indian team in World Cup) failed to make any dent in the Bingo success. No Confusion, Just Great combination – The punch line of Bingo looks like serving well even the clear cut strategy adopted by ITC to serve the market right. Available in different local tastes on the basis of regional preferences this snack turned out to be major market scooper even if initially some people perceived it to be less preferred cousin of market leader Frito Lays. In a country where local snacks are loved by one and all Bingo filled the void between tasty and elegant snack option available. The untapped demand of branded version of local tastes was so well captured by Bingo that it became the case study in major B schools across the world. The combination of push and pull strategy created by solid media campaign and colorful racks on the retails stores across India is living example of crafting a well needed product and serving it best manner. The reason that Bingo has so much to offer to learn the concepts of marketing makes it an ideal choice even for us to take it up as our case study.


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Segmentation , Targeting & Positioning


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Segmentation for Bingo! The segmentation for the branded snack market is done on the following grounds:

Geographic: Region wise: North, south, west, east, central, north east Category: Metros, major cities and towns Geographic segmentation are employed by the company to develop different variants (flavors) for different regions based on the local tastes and preferences of that region. The company further segments these regions into metros, cities • and towns. Brand advertising firm Ogilvy and Mather, claimed that Bingo had • achieved its maximum market share in cities, with it being as high as 66 per cent in a few cities. This clearly indicates, that the brand has been a huge success in a few • geographical locations and lesser so in others. •


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Demographic: Age: <18, 18-24, 25-35, >35 Income levels : middle-income and high-income groups

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Bingo through it’s advertising that talk of “Think Hatke” has from the very onset been clear that it’s target segment is the 18-24 years and 25-35 years category. The lifestyle and eating habits • of this category make it the most lucrative for branded snacks. The products are targeting the • middle income segment which have food habits conducive for packaged snacks and yet would be cost-conscious & would opt for lower-end of cost–spectrum.


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Psychographic: Features: Taste, quality, • quantity, price and packaging. • Awareness: Brand consciousness, movement towards health-conscious brands.

Behavioral: •

•

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Time of consumption :

Morning, afternoon, evening, night, all through the day. Weekly expenditure : >Rs 200, Rs 100-200, Rs 50-100,

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Target market for Bingo Age8-15 Age15-30 Year 30+

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Chips 

Tedhe Medhe

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Tangles   

Bingo follows the Selective Specialization Type of Marketing. It has specialized product flavors for different regions in India. A single product is available specially for a particular region of the country. As seen in the diagram, each product is assigned specially for each market.

With it's advertising during the launch phase that focused on the cultural diversity of the country, Bingo has targeted each of the geographical segments separately. Special tastes have been developed for different regions of the country. o Within the market segment of less than 35 years, Bingo targeted the teens whose snacking habits along with their spending capacity was ideal for Bingo . o Having unique shapes for it's chips, attractive packaging, a large variety of tastes to choose from and an attractive price, Bingo has targeted the innovative tastes of teens . o

Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORAvivekMISRA

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Positioning: Considering kind of product ,we utilized Perceptual mapping for positioning in market. Perceptual mapping: For perceptual mapping of brand bingo, we have chosen 2 parameters: •Dimension 1 is Taste •Dimension 2 is Awareness

Individual Analysis: 1. Soyapuff’s are in first quarter. It shows that customers like the taste of soyapuff’s but in general there is lack of awareness for these snacks. 2. Bingo and Lays lies in second quarter. It shows that customers like the tastes of both Bingo and Lays and they have complete awareness regarding these snacks. Both bingo and Lays are closely related as shown in the matrix, this suggests that both brands are very close competitors. 3. Kurkure and uncle chips lie in 3rd quarter. It shows that customers have equal awareness of both brands but they like the taste of uncle chips more than kurkure. As shown in the matrix, both brands are closely related that shows kurkure is trying to reach at the position near to the uncle chips. 4. Other chips are in the 4th quarter. It shows that customer is neither aware of these brands nor like the taste of these chips. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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Situational Analysis


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Company : ITC Establishment: Incorporated on 24 August 1910 as the Imperial Tobacco Company of India Limited, the company's name was changed to ITC Limited in 1974. Rated among the 'World's Best Big Companies' by Forbes magazine, ITC ranks third on all major profit parameters among India's private sector corporations. ITC employs over 20,000 people at more than60 locations across India. It has a turnover of $3b. Growth and Diversification: ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 18 billion and a turnover of over US $ 4.75 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10 `Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times.ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, its rapidly gaining market share even in its nascent businesses of Packaged Foods &Confectionery, Branded Apparel and Stationery. As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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shareholder value."ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brand-building capabilities, effective supply chain management and acknowledged service skills in hoteliering. ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 2.8 billion in the last decade). The Company's 'e-Choupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating.ITC employs over 21,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 88,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement:"Enduring Value. For the nation. For the Shareholder." Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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ITC BCG M atrix


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Product : The product offered is available in a wide array of flavors, shapes and sizes. Mainly there are two categories of products-Potato Chips and Finger Snacks The potato chips are available in many flavors inspired by the snacking habits of different parts of the country like Masala Chaas, Chatpata Nimbu and Paneer Tikka. In addition to these 4 flavours, the classic flavours of Masala, Tomato and Salted are also available. The offerings under the finger snacks segment are equally unique and consist of pakoda inspired chips like Live Wires, Khakra inspired Mad Angles, and corn based chips like Tedhe Medhe.In all there are 16 variants of Bingo. Bingo ensured the quality of its products due to the strong farm linkages of ITC which ensures only the selected grade of raw material goes into making Bingo chips. The packaging of the product has been slick and eye catching. Bingo is available in packets in a myriad colors like orange, blue, red, yellow, green, purple. Not only do bright colors attract the attention of little children but also of adults. Snack food is an impulse buy. The brightly coloured stands with the Bingo label on top make it stand out in a shop. Bingo therefore is the most seen brand when you look for snacks, greatly increasing the chances of it being bought. Since variety is the core of a snacks brand to retain consumers’ interest, the company asked the chefs at its hotels to suggest 16 flavours with twists like bindaas masti chaas, chatkila nimbu achar and tandoori paneer tikka-flavoured potato chips, chilli and tomato-flavoured mad angles - inspired by khakras and other snacks.

Packaging and Production The packaging of the product has been slick and eye catching. Bingo is available in packets in myriad colours like orange, blue, red, yellow, green and purple. Not only do bright colours attract the attention of little children but also of adults. Snack food is an impulse buy. The bright coloured stands with the Bingo label on top make it more visible in a shop. Bingo is the most seen brand in snacks and thus increasing its chances of being bought. On the production front, the strong farm linkages of ITC (e-Choupal) ensure that only the selected grades of raw materials are used for Bingo. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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Product Life cycle :

Typical product lifecycle stages: Development Introduction Growth Maturity Decline Since Bingo’s launch in 2007 product has gone through various stages of lifecycles & with managed to maintain it’s market share around 16%. Cycle-Recycle pattern of product lifecycle. During study we found Bingo is adopting Cycle-recycle pattern of lifecycle. ITC has launched variants of Bingo in form chips, Mad angles,Tangles,Tedhe Medhe over the period to maintain & increase it’s market share.


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Bingo SWOT Analysis

S O W T INTERNAL ANALYSIS

EXTERNAL ANALYSIS

People

Innovation

Reputation (Or Brand)

Competition

Intellectual Properties

Economics

Market Information

Demographics

Ethos (values & culture)

Regulations

Finances

Infrastructure

Agility (or change-ability)

Partners

Collaborators

Social Trends

Talents (or skills) Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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PRIMEFACT : ( INTERNAL FACTORS) People: (STRENGTH) Skilled, Industry experienced human resources & fast decision making process Reputation or Brand: ITC as a brand is strength but Bingo as a brand is an opportunity. Intellectual Properties: (WEAKNESS): Not able to develop as per the market & non – control over the quality and testing process compared to Top International market leaders. Ethos & Values: (OPPORTUNITY): Since ITC is well diverse group from Cigarettes to FMCG to Hotels to Technology, in 100 years, so culture & values are well maintained for the progress of the group. Market Information: (OPPORTUNITY): Bingo’s marketing team is very good & marketing information can be very well opportunity for any decision making. Finances: (WEAKNESS): Bingo is in very high threat group of industry as per the Porter’s 5 forces, High working capital requirement for the low profit margin product. Agility or Changeability: (OPPORTUNITY): As the group is well diversified & Bingo has got 16 flavors keeping pan India into STP. Collaborators: (OPPORTUNITY): Well diversified employees all over group, with ITC Tech & ITC – E Choupal & ITC Agro which assist Bingo to procure raw materials at reasonable price and in turn will increase the bottom line of the product. Talents:(STRENGTH) skilled People, with respected values & cultures, retaining of talents is strength and get a strong ability to attract new talents as per the market requirements.


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ICEDRIPS: ( EXTERNAL FACTORS) Innovation: (THREATS): Since ITC – FMCG is not an innovator, it is incumbent follower, so innovations in process or product are threats for e.g.: Lays – Backed wafers. Competition : (THREATS):As per 5 forces of Porter, it is identified that the snacks industry is highly competitive in all the aspects of buyers, suppliers, new entrants, existing competitors Branded and Non Branded and with availability of numerous substitutes either in the same sector or in another sector of snacks such as vada-pav or dry snacks like chukly, biscuits etc. Economics: (WEAKNESS): the same as Finances. Demography: (OPPORTUNITY): as we have seen STP, the demography structure of India, each person, each product, so there is a very big market available. Regulations: (THREATS)In case if there is any regulations change in FDC act or at material usage level, then it is a threat, there may be complete process change. Infrastructure: (OPPORTUNITY): As demography, infrastructure is an opportunity for any industry. Partners: (STRENGTH): Partners in Progress, the best examples are farmers for raw materials, well distributors channels & good advertise agnecies. Social Threats: (THREATS): If there is any change is social habits of snacks, like health consciousness or difference in food habits of the consumers, then it will be threats in case innovation & technology does not support.


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Customers : The Socialites : belong to the upper class. They prefer to shop in specialty stores, go to clubs on weekends, and spend a good amount on luxury goods. They are always looking for something different. They are the darlings of exclusive establishments. They go for high value, exclusive products. Socialites are also very brand conscious and would go only for the best known in the market. The Conservatives :belong to the middle class. The conservative segment is the reflection of the true Indian culture. They are traditional in their outlook, cautious in their approach towards purchases; spend more time with family than in partying and focus more on savings than pending. Slow in decision making, they seek a lot of information before making any purchase. They look for durability and functionality but at the same time is also image conscious. They prefer high value consumer products, but often have to settle for the more affordable one. These habits in turn affect their purchasing habits where they are trying to go for the middle and upper middle level priced products. The Working Women :segment is the one, which has seen a tremendous growth in the late nineties. This segment has opened the floodgates for the Indian retailers. The working woman today has grown out of her long-standing image of being the homemaker. Today, she is rubbing shoulders with men, proving herself to be equally good, if not better. Working women have their own and in decision to purchase the products that appeal to them India’s Rich: have income greater than US$11,000/- p.a. Total household having such incomes are 1,058,961. These people are upwardly mobile. Some of them in this category are Double Income No Kids (DINK) households. They spend more on leisure and entertainment-activities than on future looking investments. Across the category, backgrounds are distinctly middle class. They aspire, therefore, to attain the super-rich status. The Super Rich : have income greater than US$22,000/- p.a. Total number of households is 320,900. There are less DINK families here than in the rich category. The Super Rich are mainly professionals and devoted to consumerism. They buy many durables and are status conscious. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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The Ultra Rich: have income greater than US$44,000/- p.a. The number of households in this category is 98,289. There is no typical profile of the ultrarich. There are some DINK households of middle-level executives. Some single earning households are of first generation entrepreneurs. Some rich farmers, who have been rich for a long time, belong to this category. The Sheer Rich: is made up by households having income exceeding US$110,000/- p.a. Such households are 20,863. They do not have a homogenous profile. There are joint families as well as nuclear families in this category. They consume services greatly. They own multiple cars and houses. They aspire to social status and power. The Obscenely Rich: is made up of households having income exceeding US$222,000/- p.a. There are hardly 6,515 such households in India. They are first-generation entrepreneurs who have made it big. Some of them are techies. A variety of people belong to this category. They are just equivalent to the rich in the developed countries. They crave for exclusivity in what they buy. Most premium brands are relevant to them. Rural Consumer: About three quarters of the Indian population are in the rural areas and with the growing middle class, especially in the Indian cities; the spill over effect of the growing urban middle class is also felt in the rural areas.


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Competitors :

Porter's 5 forces model Threat of new entry: (Moderate) As the market is growing at 30 percent annually, new entrants may consider it a profitable venture. As branded players are priced similarly, new players might penetrate by adopting a lower price or by offering more grams at the same price (Balaji-strategy). New players with a distinct USP and marketing strategy may find it easier to enter the market (Bingo Strategy).Unorganized players still account for half of the total wafer segment, thereby discouraging market entry. Veteran players such as Fritolay, Haldiram etc enjoy economies of scale, wellestablished distribution and good distributor relations. Competitive Rivalry : (High) High Competition – Branded Players involved in cut-throat competition to increase market share, entice new consumers, find new markets Low Quality differences among branded players. Quality difference between branded and unbranded offerings is offset by low price offered by unbranded players Cost of switching is low as all players have a similar pricing strategy. Brand Loyalty is high for branded players .


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Bargaining power of suppliers : (High) Suppliers provide raw materials such as potatoes, spices and other ingredients. Their ability to raise input costs is high. 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).Shortage of any input material may also affect production and thereby impact distribution. 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. Bargaining power of consumers : (High) Frito-Lay enjoys a healthy lead with a 45 percent market share for it’s portfolio of products. Competitor differentiation is in terms of variants and communication. Ability to substitute is high as brands are priced similarly and distribution problems for one brand promote sales for the other. Price Sensitivity is high. An increase in the price of Lays may promote a switch to Bingo for most buyers (except for loyalists). Threat of substitutes : (High) Indian Snack Segment is high-volume, low-involvement driven (thrives on impulse buy). All snacks are considered to be substitutes of each other.Biscuits,Vada,Samosa, Wafers and local snacks like Chakli, banana chips, farsan etc are all substitutes of one another.


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Collaborators’ Analysis: Established

distribution channel for cigarettes, HORECA, most pan shops, Retail tie-ups, Biyani's Future Group – Big Bazaar ,Local retail shops, kirana stores. Chefs from ITC hotels called upon to dish out different flavors and delicacies different flavors. Suppliers of raw materials, ITC FMCG, - ITC – E chopal, Promotion Agency - Ogilvy & Mather (O&M) CFA, Retailers & Retail outlets.

Climate Analysis: Macro analysis

Pest analysis: is a useful strategic tool for understanding market growth, business position, potential and its directions. Major dimensions of pest analysis are as follows: Political environment: ITC is a major brand in India. Political scenario in India is such that there is an open invitation to the MNC’s to be a part of Indian snack industry and on the other hand government is conservative in Indian brands. Economical: ITC introduced bingo in the market at that time when there was very less supply of Lays in the market. In this way they developed this bingo brand and for their promotions manufacturers were too keen for advertisements. Same worked when Mom and Pop stores gave their consent for trendy display of bingo. Social: To satisfy the Indian customers in their taste and demography, bingo offers 16 variants with special emphasis on tastes with respect to different demographics. Technological: Bingo is scoring high on the grounds of innovation then its competitor Lays. Bingo has special variants which offers baked and non fried chips that can prove to be against trans fat. This innovation will be able to attract health conscious people also. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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e-Choupal is an init iative of ITC Lim ited , a large m ulti bu siness con glom erate in India, to link d irectly w ith rural farm ers via t h e I nt e r n e t f o r p r o c u r em e n t o f agricultural and aqu aculture pro ducts like soybean s, wh eat, coffee, and p raw ns. eCho upal w as conceived to t ackle th e challenges po sed by the u nique features of Indian agriculture, characterized by fragmented farms, weak infrastructure a n d t h e i nv o lv em e n t o f n u m e r o u s interm ediaries. The program m e involves the installation of com puters with Internet access in r ural areas of Ind ia to offer farmers up-to-date marketing and agricultural inform ation. Effects of e -Cho up al: 1 . e lim i nat io n o f n o n valu e ad d ed activities 2 . d if fe re nt iat ed p ro d uct t hro u gh identit y preserved supp ly chains 3 . valu e a dd ed p ro d u ct s t r ace ab le t o farm practices 4 . e -m a r ke t p la ce fo r sp o t t ra nsact io n s and supp ort services to fu tures exchange There are present ly 6,500 e-Cho up als in op eratio n. ITC Lim ited plans to scale up t o 20,000 e-Cho upals by 2012 covering 100,000 villages in 15 states, servicing 15 m illion farmers. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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Micro Analysis : Market universe defines the targeted audience for the product. It is very essential for marketer to target specified audience/consumers for the product to keep the product away from picking buying behaviour. For this product should be positioned as brand differentiator to it’s competitors. Product should bring some kind of functional/technical/others advantage to consumer then it’s competitors. In our example , following are the attributes that have impact on consumer decision-making process, while buying snack product. ITC and Pepsi Co have to study each of these attributes 1. Free from pesticides 2.Freshness 3. Good for health 4. Clean place of sale 5. Value for Money 6. Overall quality 7. Taste 8. Variety Products availability at same place 9. Seasonality 10. Flavour 11. Good display of products 12. Nearby Availability 13. Good ambience 14. Locally Produced 15. Packaging 16. Advertising 17. Personally known by shopkeeper 18. Shape 19. Promotional offer 20. Country of Production Snack foods are impulse purchase products, and there is an element of indulgence associated with them. It does not figure very high on the shopping list. A consumer buys it only if it catches his eye at the outlet or is accompanied by a child who finds potato chips a fun snack. So leading players have stressed on attractive packaging and promotion targeted at children to increase consumption. As these products are general fun eat, brand loyalties are not strong and consumers look for novelty and new flavours. There is no notable difference in consumption pattern across various age groups. One of the major issues while defining taste parameter in India is its huge geographical spread and culture diversity. Taste varies widely across the regions. For instance in south India, banana chips are extremely popular which do not find many acceptances in other parts of the country. In north, Paaprichaat is very successful whereas in Mumbai, Batata Vada/Vada Pao has been a runaway success. Snacks like Chips, Namkeens are others are generally preferred for the daily consumption whereas fun-foods like Cheeseballs and Twistys are sold more in schools, Colleges, Railway Platforms and Movie Theatres. Kids generally prefer Fun-Foods whereas all age groups generally prefer Wafers and other snacks. Snacks are mostly consumed during evening. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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CONSUMER PROFILE : The Indian consumers are noted for the high degree of value orientation. Such orientation to value has labelled Indians as one of the most discerning consumers in the world. Even, luxury brands have to design a unique pricing strategy in order to get a foothold in the Indian market. Indian consumers have a high degree of family orientation. . This orientation in fact, extends to the extended family and friends as well. Brands with identities that support family values tend to be popular and accepted easily in the Indian market. Indian consumers are also associated with values of nurturing, care and affection . These values are far more dominant that values of ambition and achievement. Product which communicate feelings and emotions gel with the Indian consumers. Apart from psychology and economics, the role of history and tradition in shaping the Indian consumer behaviour is quite unique. Perhaps, only in India, one sees traditional products along side modern products. For example, hair oils and tooth powder existing with shampoos and toothpastes


29

Marketing Strategies


30

Following marketing strategies are applied for Bingo!

M c Carthy’s M arketing M ix( 4P’s) Product: Assort m ent of flavours & eyecatchy packaging Price: Competitive pricing Place : W idespread availability at Big & sm aller retailers across cou nt ry Promotions : Use of creative –inn ovative advertising Product : Bingo! positioned itself with its Indian flavors such as TandooriPaneer, Tikka, Spice Paneer etc.The segmentation was mainly done on basis of the age of the people. The offerings under the Finger Snacks segment are unique and innovative Packaging. It launched packs with different quantity keeping in mind the specific consumer demand. The initial offerings from Bingo include an array of products in both Potato Chips & Finger Snacks segment. 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 flavors. Additionally a dairy option has also been introduced under the potato chips offering. The offerings under the Finger Snacks segment are equally unique presentations with innovative finger foods like the pakoda inspired Live Wires, Khakra inspired Mad Angles and the specially developed time pass snack in the form of Tedhe Medhe. Each offering under this segment is available in two variants making it a total of 6 products in the Finger Snacks portfolio. Packaging- ITC has done the packaging such that the product attracts the buyer. Apart from it has also launched packs with different quantity keeping in mind the specific consumer demand. Exclamation Mark Recallable Easy to pronounce

Trendy and Fun

BINGO

Catchy


31

2.Price When ITC launched Bingo, its main challenge was to compete with the players who were already there. To overcome this challenge, ITC realized that they have to offer products ata price which is either equal or less than what the competitors are offering. To do this, they planned to capitalize by leveraging the strength of the group’s other businesses . ITC’s printing and packaging business provided highquality, cost-effective, and innovative packaging. ITC also enjoyed cost advantages over its competitors owing to its electronic procurement system called eChoupal. This helped ITC to compete with the best. Initial pricing of ITC bingo is a direct frontal attack on Frito Lays with pricing of Rs 5, 10and 20 3. Place ITC has adopted a Market Challenger strategy with the launch of Bingo! and has chosen a combination of flank and frontal attack against the market leader Frito Lay’s. 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.ITC has made a strategic alliance with Future group according to which all retail stores of Future group like Food Bazaar, Big Bazaar, and Kishore Biyani’s Fair Price etc will stock only ITC’s Bingo. HORECA (hotels, restaurants and cafes), entire cigarette distribution network including betel shops are being used to distribute the product to a wide range of consumers. Initially Bingo sponsored many Bingo Remix nights in various clubs as well. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

32

4.Promotion: T.V. AD Campaign: Bingo’s launch was strategically timed around the World Cup to cash in on the tremendous popularity that such leisure and cocktail snacks would find among cricket lovers in the country. The idea was to get the consumer to take that first bite. Not only the flavours but also the advertising was supposed to have an Indian touch.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. Brand recall along with 16 flavors in three SKUs helped ITC to capture 16% of market share in just 18months.The advertising strategy used humor to sell Bingo. Bingo!’s advertising follows theAIDA 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. Theads are simply insane & nonsensical to the point of being bizarre & utter crap. And that iswhy they are so funny. This resulted in high product trials.What’s interesting is the fact that Lays uses a brand ambassador approach with thecelebrities having mass appeal such as Saif Ali Khan, Juhi Chawla & M S Dhoni whereas Bingo has managed to do well without one. It still doesn't have an ambassador. Bingo! Mad Angles Twister is a crazy application with which can turn the status messages upside down on facebook which can make the users and viewers go crazy trying to figure out your secret of that twisted message. So this was another kind of strategy being used for promotional purposes apart from advertisements , ringtones and videos promoting the same.


33

On television, the company 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. It also had around 20 spots on a variety of radio channels and advertised in most leading national dailies. In the top-30 cities, over 1,000 outdoor hoardings advertised the product. According to industry estimates, ITC spent close to Rs 100 crore on marketing Bingo has managed to do a dent inlays market share. Is the fact ITC spent 3 years researching, finding & analyzing the finger snack segment to come up with it’s own indigenous variety responsible for Bingo’s success. The insanity in Bingo’s promotion is a carefully knitted strategy that was instrumental in Bingo’s instant success. Marketing Gurus call it “Disruptive Advertisement". This is one those cases where advertisement/promotion has been the biggest factor in success of brand. The fact that ITC has a well established distribution network has also helped it increase consumer interaction points. The adverts which were full of humor, cheesy ,non-sense jokes & relevancy with brand helped in establishing Bingo. While we agree the theme of adverts were irrelevant from product ,they were associated with brand image(TaglineNo Confusion, Only great combinations). With help of all above strategies ITC finally Tested success of Bingo since 2008 when it Became profitable since launch in 2007

AT Railw ay St at io n

Rot ating Hoarding


34

Viral Marketing : Content that encourages people to pass on the message is referred as ‘Viral’ and the strategy is called as ‘Viral marketing’. Induces Web sites or users to pass on a marketing message to other sites or users. It can be done through buzzwords, word of mouth and viral video etc. Principles: 1. Giving away products or services. 2.

Making people feel something.

3.

Doing something unexpected.

4.

Using existing communication networks.

5.

Allowing effortless transfers and never to restrict access.

Methods : 1. Internet Search Engines & Blogs. 2. Social Media Interconnectivity 3. Television & Radio 4. Multiple forms of Print and Direct Marketing 5. Customer Participation & Polling services 6. SMS Viral Marketing for BINGO! 1. ITC's Bingo has always been known for their adoption of different kind of advertising strategy. 2. They have launched a new viral developed by Contests2win. It is in essence a spoof on the long winding saas bahu soaps on T.V.


35

Research Methodology


36

Research Methodology: In this section we are presenting research methodology of study. Major aim of this empirical investigation was the exploration of various factors that affect consumption of bingo in the market. Research ParadigmsMainly quantitative research methodology has been utilized in this project work. Data collected through the quantitative research methodology is basically objective in nature. Objective nature of the gathered data is responsible for the higher degree of validity and reliability in the outcomes of the study. Questionnaires were designed and distributed among volunteers to gather thorough information. These open – ended questionnaire questions were helpful in assembling detailed information in this context. Data gathered through quantitative techniques is more meaningful than any other mode of data collection because it comprises all the relevant information required and provides a better in – depth knowledge of the participants’ own experience. Research Design: Research design adopted by the investigators for this study is descriptive in nature. Quantitative mode of data collection was adopted by the author for the field survey. Data collection – The Data collection method is a questionnaire. Following information is collected from the questionnaire: 1. Preference for the packaged snacks. 2. Age group of customers consuming packaged snacks. 3. Frequency of using packaged snacks in their daily routine. 4. Preferred snacks from the available different brands in the market. 5. Types of drinks preferred along with the snacks. 6. Preferred spending amount for snacks purchase. 7. Which flavor is mostly in use among the customers? 8. Availability of preferred snacks 9. Where do the customers stay (To determine their accessibility to the market)?


37

Questionnaire included in this study has been designed by the author particularly to encourage patients’ feedback and remarks. Ethical problems have been taken into consideration in this questionnaire. Any other questionnaire is not published in similar shape in the past and this is the original work performed by our team. Formulation and execution of this questionnaire on the different participants has been done. We also emphasize that we will never depersonalize the feedback and withhold the identity of any individual contributing to the questionnaire, with exception to persons who particularly request the disclosure of their identity .

Sample descriptionWe included 25 people in this survey. This sample has a mix of male and female participants, and there is a good representation of both genders in the sample. Data AnalysisBefore analyzing the data, validation of gathered data was undertaken. It was then edited and coded. During validation, questionnaires were checked for any discrepancies, completeness and whether enough samples were obtained for proper analysis. The ones containing errors, incomplete information were removed as were the ones that were not legible. Responses of each participant were positive and they showed co-operative attitude. They submitted completely filled questionnaire sheets and all relevant information was present in the questionnaires.


38

Response of Participants: Pa r t i c i p a n t s

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

1 2

Packaged Snacks Pr e f e r e n c e A g e Gr o u p

2 2

1 1

1 1

1 1

1 1

1 1

1 1

1 1

1 1

2 1

2 1

1 1

1 1

1 1

1 1

1 1

1 1

1 1

1 1

1 1

1 1

3

Frequency of p u r c h a se

1

1

1

1

1

1

1

3

1

1

1

1

1

1

1

1

1

1

2

3

1

4 5 6

Br Br a n d p r e f e r e n c e Co m p l e m e n t s Co s t A n a l y s i s

2 3 4

2 2 1

2 3 2

2 1 1

2 2 1

1 1 3

2 1 1

2 1 2

2 2 2

4 4 1

2 3 1

2 1 1

2 1 1

1 3 2

2 2 1

2 3 1

4 3 1

3 1 1

1 2 4

2 2 1

2 2 2

7 8

Pr Pr e f e r r e d Fl a v o r A v a i l ab i l i t y

1 2

3 1

4 1

3 1

3 1

3 1

3 1

3 1

2 1

3 1

2 1

4 1

4 1

3 1

4 1

3 1

3 1

4 1

4 1

3 1

3 1

9

C Cuu st o m e r r e si d e n c y

4

4

3

3

3

4

4

4

1

2

4

4

4

4

4

4

3

4

4

4

4

Cumulative response : 1 2

Packaged Snacks Pr e f e r e n c e Ag Ag e G r o u p

3 4

Fr e qu qu en en cy cy of of pu pu r ch ch as ase Br a n d p r e f e r e n ce

Ye s 2 2 -3 5 once in a few days Bi n g o

5

Co m p l e m e n t s

H o t b ev er ag e

6

Co s t A n a l y s i s

U p t o Rs 1 0

7

8 9

Pr e f e r r e d F l a v o r

Av ai l a b i l i t y Cu s t o m e r r e s i d e n c y

Sw e e t

Ea si l y a v a i l a b l e V i l l ag e

18 20

No 35 35 - 4 5

18 3

O n ce a d ay La y s

1 15

7

Co l d D r i n k

7

13

U p t o Rs 2 0

1

20 1

3 1

45 4 5 -6 5

0

Tw i c e a d a y Br i t a n n i a

2 1

M ore O t h er s

0 2

6

1

1

O t h er s M o r e t h an an 50

2

12

Spicy an d sw e e t

6

Fr u i t Ju i c e M o r e t h an an 5 20

Sa v o r y

2

Spicy an d sa v o r y

Not easily av ai l a b l e To w n

1

Ci t y

1 4

M et r o

15

Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA 39

Modal value for each characteristic analyzed is as followsParticipant no .

mode

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

2 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

According to t he analyses analyses of m od e, results results are as follow s:

mode 2.50 2.00 2.00 1.50 1.001.00 1.00 1.001.00 1.00 1.001.00 1.00 1.00 1.001.00 1.00 1.00 1.001.00 1.00 1.00 1.001.00 1.00 1.00 1.001.00 1.00 1.001.00 1.001.00 1.001.00 1.00 1.001.00 1.00 1.00 1.001.00 1.00 1.00 1.00

mode

0.50 0.00 1

2

3

4

5

6

7

8

9

10 11 12 13 14 15 16 17 18 19 20 21


40

Respondent Respondents’ s’ss Analysis Analysis First

participant participant does not prefer p refer packaged snacks, she s he is in between 35-45 age groups, and she buys lays once in a few days along with fruit juice. She can spend more than 50 Rs for sweet flavor. She lives in metro and does not find her favorite snacks readily in the market. participant prefers packaged snacks; he is in between 22-35 2 2-35 age Second participant groups. He buys lays once in a few days with cold drink. He can spend up to 10 Rs on spice and savory flavor. He lives in metro and can easily access lays. Third participant participant prefers p refers packaged snacks; he is in between 22-35 age groups. He buys lays once in a few days with fruit juice. He can spend up to 20 Rs on spice and sweet flavor. He lives in city and can easily access lays. participant prefers packaged snacks; he is in between 22-35 age Fourth participant groups. He buys lays once in a few days with hot beverage. He can spend up to 10 Rs on spice and savory flavor. He lives in city and can easily access lays. Fifth participant prefers packaged p ackaged snacks; he is in between 22-35 age Fifth groups. He buys lays once in a few days with cold drink. He can spend up to 10 Rs on spice and savory flavor. He lives in city and can easily access lays. Sixth participant participant prefers packaged snacks; he is in between 22-35 22 -35 age groups. He buys bingo once in a few days with hot beverage. He can spend more than 20 Rs on spice and savory flavor. He lives in metro and can easily access bing b ingo. o. Seventh participant participant prefers packaged snacks; he is in between 22-35 22 -35 age groups. He buys lays once in a few days with hot beverage. He can spend up to 10 Rs on spice and savory flavor. He lives in metro and can easily access lays. Eighth partici p articipant pant prefers p refers packaged snacks; he is in between 22-35 age Eighth groups. He buys lays twice a day with hot beverage. He can spend more than 20 Rs on spice and savory flavor. He lives in metro and can easily access lays. participant prefers packaged snacks; he is in between 22-35 age Ninth participant groups. He buys lays once in a few days with cold drinks. He can spend more than 20 Rs on savory flavor. He lives in metro and can easily access lays.


41

Tenth

participant did not prefer packaged snacks; he is in between 22-35 age groups. He buys other snacks once in a few days with other drinks. He can spend up to 10 Rs on spicy and savory flavor. He lives in town and can easily access other chips. Eleventh participant did not prefer packaged snacks; he is in between 22-35 age groups. He buys lays snacks once in a few days with fruit juices. He can spend up to 10 Rs on savory flavor. He lives in metro and can easily access lays chips. Twelfth participant preferred packaged snacks; he is in between 22-35 age groups. He buys lays snacks once in a few days with hot beverage. He can spend up to 10 Rs on spicy and sweet flavor. He lives in metro and can easily access lays chips. Twelfth participant preferred packaged snacks; he is in between 22-35 age groups. He buys lays snacks once in a few days with hot beverage. He can spend up to 10 Rs on spicy and sweet flavor. He lives in metro and can easily access lays chips. Fourteenth participant preferred packaged snacks; he is in between 22-35 age groups. He buys bingo snacks once in a few days with fruit juice. He can spend up to 20 Rs on spicy and savory flavor. He lives in metro and can easily access bingo chips. Fifteenth participant preferred packaged snacks; he is in between 22-35 age groups. He buys lays snacks once in a few days with cold drink. He can spend up to 10 Rs on spicy and sweet flavor. He lives in metro and can easily access lays chips. Sixteenth participant preferred packaged snacks; he is in between 22-35 age groups. He buys lays snacks once in a few days with fruit juice. He can spend up to 10 Rs on spicy and savory flavor. He lives in metro and can easily access lays chips. Seventeenth participant preferred packaged snacks; he is in between 22-35 age groups. He buys others snacks once in a few days with fruit juice. He can spend up to 10 Rs on spicy and savory flavor. He lives in city and can easily access others chips. Eighteenth participant preferred packaged snacks; he is in between 22-35 age groups. He buys Britannia snacks once in a few days with hot beverages. He can spend up to 10 Rs on spicy and sweet flavor. He lives in metro and can easily access Britannia snacks. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

42

Nineteenth

participant preferred packaged snacks; he is in between 22-35 age groups. He buys Britannia snacks once in a few days with hot beverages. He can spend more than 50 Rs on spicy and sweet flavor. He lives in metro and can easily access Britannia snacks.  Twentieth participant preferred packaged snacks; he is in between 22-35 age groups. He buys lays snacks twice a day with hot beverages. He can spend up to 10 Rs on spicy and savory flavor. He lives in metro and can easily access lays snacks. Twenty- first participant preferred packaged snacks; he is in between 22-35 age groups. He buys lays snacks once in a few days with hot beverages. He can spend up to 20 Rs on spicy and savory flavor. He lives in metro and can easily access lays snacks.

Conclusion: We can conclude from analysis that sample has uniformity regarding choice of snacks & related factors. People mostly preferred Lays over Bingo!.Thus we can provide project future strategies/recommendations for improving Bingo’s popularity & market share.


43

SURVEY RESULTS

Frequency of Purchase by Urban Youth Preference of Packaged Snacks in Metro cities Once in a day

Once in a few days

Once in a day 86%

Once in a few days

9% 95%

Twice a day 5%

5%

Com plem ent Preference Sam ple population be tw een Age 22-35 Com pleme nt Preference o f Sam ple Population

33 % Hot Beverage Cold Dr inks

Hot beverage

33 %

42 %

25 %

Fru it Juices

Cold Drin k 29 % 33%

Fruit Juice Others

5%


44

SURVEY RESULTS Correlation between Bingo Complements and Spending Habits of the Sample population

Hot Beverages Cold Drin ks Fru it Juices

Statistical techniques application suggests that there is a relation between the Frequency of purchase and the Spending habits of the Sample Population.

Others

Up t o Rs. 10Up to Rs. M 20ore than Rs. M ore 20 than Rs. 50

Correlation Between Frequency of Purchase and Complements

Ho t Beverages(Tea/Coffee) Cold Dr inks Fru it Juices Others

Once in a Few Days

O nce a day

Statistical techniques application on the sample population also suggests that there is a relationship between Frequency of purchase and complement preferences.

Tw i ce a day


45

Questionnaire : With response codes. 1.Preference for the packaged snacks. Yes 1 No 2 2.Age group of customers consuming packaged snacks. 1 22-35 Years 35-35 Years 2 45-65 Years 3 3.Frequency of using packaged snacks in their daily routine. 1 once in a few day once a day 2 twice a day 3 4 More 4.Preferred snacks from the available different brands in the market. Bingo Wafer 1 Lay wafers 2 3 Britannia Biscuits 4 Others 5.Types of drinks preferred along with the snacks. Hot beverage(tea Coffee) 1 2 Cold Drink 3 Fruit juice 4 Any other 6.Preferred spending amount for snacks purchase. 1 Upto Rs. 10 2 upto Rs. 20 3 more than Rs.20 4 more than Rs.50


46

7.Which flavor is mostly in use among the customers? 1 Sweet Savory 2 Spicy and Savory 3 Spicy and Sweet 4 8. Availability of preferred snacks. Easily available Not easily available

1 2

9.Where do the customers stay (To determine their accessibility to the market)? 1 Village Town 2 City 3 4 Metro


47

FUTURE PROJECTIONS


48

Recommendations


49

Projections

% Share of Sales of Potato Chips

Independent Retailers Convenience Stores Supermarkets / hypermarkets Others

The current market share of Potato wafers is exhibited in the graph indicates huge areas of opportunities. With the green signal given to the FDI in retail sector, it is clear that Supermarkets/hyper markets and others will have a major say in times to come. Therefore apart from the conventional channels, Bingo should focus on developing these evolving channels of sales and distribution.

De m and Forecast o f savory sna cks in m illion kg The demand is growing and will continue to grow. Bingo will have to up its production capability and be prepared for capturing greater market share by keeping a tab on the consumer demands. It can continue to utilize the same supply chain with greater efficiency to enhance market penetration.

35 0 30 0 25 0 20 0 m illion kg

15 0 10 0 50 0 2010

2011

2012

2013

2014

2015


50

Demand of Sweet Snack Multipacks in $ million 1600 1400 1200 1000 800

Demand of Sweet Snack Mulipacks in $ million

600 400 200 0 6 7 8 9 0 1 2 3 4 5 6 0 0 0 0 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 2 2 2 2 2 2 2 2 2 2 2

The above graph is an indicator that the Indian consumers are become more aware of the health hazards posed by fast food. Bingo should utilize its R&D facilities to ensure that they create healthier versions of their products to capture the urban markets.

The current market does not exhibit a lot of players who are into sweet snacks. IF at all, they are available in the form of chocolates and biscuits. Bingo can capitalize on this opportunity to create sweet/slightly sweet products to meet the upcoming market demand.

Low Potato Snack Demand Forecast 1000 800 600 400 200

India Market US $ mln

0


51

Techniques to improve market share Segment by Segment - Invasion Age 0 t o 15

Age 16 t o 30

Age 31 Plu s

y r o v a S

y c i p S d n a y r o v a S

y c i p S

Bingo should target different market segments subsequently without letting its competitors know about their marketing strategies. Mega Marketing Approach can also prove helpful in finding the way to break into different blocked markets.


52

SEGMENT ACID TEST For the future success of Bingo and to reach the pinnacle, Bingo should create segment Story board to test the attractiveness of each segment's positioning strategy CONVERSION MODEL To identify potential customers, Bingo should utilize the Conversion model of marketing as well. This model measures the strength of customers’ psychological commitment to brands and their openness to change. USERS can be divided into: 1. Convertible-Most likely to change 2. Shallow-Not committed to the brand and could switch. 3. Average- committed to the brand but not strongly. 4. Entrenched-Strongly Committed to the brand

NON USERS can be divided into: 1. Strongly unavailable- Unlikely to switch to the brand 2. Weakly Unavailable-Not available to the brand 3. Ambivalent- Attracted to the brand as much as they are to their current brand 4. Available- Most likely to be acquired in the short run.


53

Short Term Recommendations Existing Produ ct

t e k r a M g n i t s i x E

t e k r a M

N ew Produ ct

Product Development

Market Development

Diversification

w e N

MARKET PENETRATION Bingo

should continue with its current market image of youthful trendy brand .

Bingo’s

current focus should be on increasing its penetration in the metros and cities, its strongholds. (As per the Market Penetration depicted in Ansoff Matrix. 

The Brand should increase penetration in the metro cities and rural areas., through discrete advertisements. Focus

should be on high visibility and availability in the smaller towns to help penetration in these markets. Bingo

can provide bigger packs in the form of Jars which can be reused.

Basis

the survey findings, Bingo must look deeper into associations of Consumer spending patterns with the choice of preferred beverage. There is a relationship between and the kind of beverages the consumers like to consume with their snacks. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

54

Short Term Recommendations Existing Produ ct


Market Penetration

t e k r a M

N ew Produ ct

Product Development

Diversification

w e N

MARKET To

DEVELOPMENT

enhance market share, Bingo should tie up with a sportsman/actor.

There

could be mixed products in one pack for Festive Seasons.

Bingo

could tie up with local retailers for cross selling their products with related complements(Beverages/Cold Drinks). Survey indicates that the snack is eaten along with beverages. Survey

indicates that consumers would be interested in different shapes of chips and snacks. Bingo can incorporate the idea in the existing products and also implement it in new ones. While

the competing brands would also to lower prices if Bingo does so, it can help the branded snacks industry to increase its share in the savories market and help develop a newer market. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

55

Long Term Recommendations Existing Produ ct


t e k r a M

N ew Produ ct

Market Penetration

Market Developmen t

Diversification

w e N

PRODUCT

DEVELOPMENT

Customers

are looking for appealing snack designs to allure kids. These could include letters, numbers and different shapes including triangle, wave and crescent shape. Variants

of snacks including sweet snacks and healthy snacks need to be developed. There is a growing market for both. Research Launch 

to arrive at a more widely accepted aftertaste.

different local flavours for different regions

Reduce the sharpness in the sour/sweet taste of the product.

Venture

into sweet products as the demand is quite high in coming times.


56

Long Term Recommendations Existing Produ ct

Market Penetration

t n e m p o l e v e D t e k r a M

N ew Produ ct

Market Development

Market Development



DIVERSIFICATION



Focus on maintaining visibility and availability at retail outlets across the country.



The could tie up with multiplexes to open Bingo stalls which would stock “innovative” snacks made using Bingo products



Move towards health-conscious products; make the consumers aware about the same. 

Continue with whacky advertisement campaigns to keep appealing to the city youth. Enhance

presence using social media. (Currently the Facebook page of bingo has more than 2 million likes) Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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Limitations: The

study was limited to urban customers and therefore the recommendations cited from the analysis do not offer insights of the rural market. While

relationship has been identified between different qualitative factors in the research, however more research is required to identify the exact nature of the relationship and how strong or weak it is. The opportunity for such a statistical analysis has been curtailed due to lack of resources including technological infrastructure and funds. The

representatives of ITC Bingo were not available for comment or any sort of interaction to shed more light on the issue. Numerous

issues were encountered during collation and completion of the assigned tasks due to the lack of availability of internet connectivity in the hostel and constraints in the working hours at the library.


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Conclusion : This study has helped evaluate the potential of Bingo as a brand and a product which entered the market 2007 with potency of an international brand. The market share increased to almost 18% from nothing over a period of one and a half years. However later on, with the changing market circumstances the share fell, though not immensely. With the above mentioned analysis, we have concluded that Indian consumers had a taste of Indianness and Desipan with excitement and novelty in their hearts. Taste and satisfaction from their purchases has invariably been high on the priority of the consumers. To meet this end, we have offered our suggestions and advice based on market analysis, brand analysis and sample statistical techniques. With current market projections, Bingo is expected to run neck in neck with the current market leader Lays and offer stiff competition in terms of variety in taste to its competitors.

Other recommendations : Product Bingo is currently available in eight variants, in addition to the rice-meal snacks. Based on the market research, the company can incorporate the following improvements in its product portfolio. (a) Taste, aftertaste and quality Bingo, inspite of its high penetration in a very short period of time, was perceived as less tasty and of a lower quality than Frito-Lay by a large section of the consumer sample. The following changes in the product were suggested · Reduce the sharpness in the sour/sweet taste of the product. Tone down the spices in the product. · Research and try to achieve a good aftertaste (similar to Pringles) for Bingo products · Work on reducing the oiliness and the amount of masala that sticks to the fingers during the process of eating. (b) Different flavors for different regions The company must look to target each of the regions based on the spices and tastes prevalent in the region. It should look to introduce specific flavours for each region.


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(c) Moving towards health-conscious sub-brands With competition slowly moving towards health-friendly brands (Aliva from FritoLay), it is imperative for Bingo too to move into cornmeal and baked wheat meal snacks categories. Pricing Bingo currently is among the lowest priced packaged snacks brands having a national presence. Bingo was the first brand to introduce, its snacks in Rs 5, Rs 10 and Rs 20 packets. Right now Bingo and its prime competitors, Frito-Lay, Kurkure and Cheetos are currently priced at the same levels. In this price range, the consumers’ preference for a brand has been found to be indifferent of the exact price of the product. Only 5 per cent of the population has suggested that its preference for Bingo over its rival brands could be on the basis of its pricing. However, share of the branded snacks in the total savouries market currently is about 20 per cent. While lowering of prices might cause all the competing brands also to lower prices, it can help the branded snacks industry to increase its share in the savories market. Placement Both the consumer and the retail surveys have affirmed that Bingo’s greatest strength lies in its strong distribution network. The brand, through its appeal to the youth with the help of its snazzy advertisements, has been able to secure a strong youth customer base in the cities. High visibility and availability with the help of ITC’s strong distribution network has helped it penetrate into the smaller towns. The company must continue to leverage its distribution network. Bingo must go local, within India and devise variants (flavours) specific to each region. The company can also collaborate with various food joints not associated with PepsiCo , such as McDonalds to market Bingo as the Indian snacks on offer. It had already entered into a similar tie up with Big Bazaar retail, last year. Promotion The company must continue to promote itself as a youth-centric brand. This has helped it grow at a substantial pace in the metros and cities.With the growing awareness about health-conscious products and Frito-Lay’s launching of Aliva and Kurkure (cornmeal and rice snacks, perceived to be healthier than potato chips), Bingo needs to get into these segments. It needs to promote the Mad Angles sub-brand as a health-sensitive product. While the whacky advertisements of the company still find a lot of takers, there is no need to follow Frito-Lay’s footsteps and acquire celebrity endorsements as consumer surveys reveal their relative insignificance. Marketing Group 2: abhasDESAI bhaartDALVI sakshiT sanjayVORA vivekMISRA

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Bingo_Marketing

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