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LAYS VS BINGOMarketing Management-II AssignmentIntroduction to Indian Wafer Snacks Segment The size of the Wafer Snacks Segment in India is estimated to be 4,500 5000 crores The market is growing at 30 percent annually The branded players account for 2,000 crores of the market size Major branded players include Frito-Lay, Bingo, Haldiram, Balaji, Parle

Contd.Potato Chips and Potato based items account for 85 percent of the total snacks segment. As per Nielsens Retail Audit, Frito-Lay commands 45% market share, followed by Haldiram at 27% and Bingo at 16% The rest is divided between new players such as Smart Chips, regional players such as Balaji and handful of unorganized players(source:moneycontrol.com)The organized snacks category is subdivided into the Traditional segment (Bhujia,Chana etc) dominated by Haldiram.

The second category is the Western segment(potato chips,cheese balls,puffs etc) and the Finger snacks segment which is an adaptation of traditional snacks to the western format. These are dominated by the Frito Lay group.LaysLays, the worlds largest and favourite snack food brand, has steadily established itself as an indispensable part of Indias snacking culture since its launch in 1995.

Being first in the market through its acquisition of Uncle Chips, Frito-lay already has a well-established network of distributors and retailers pan-India.

Lays has a reach of more than 1m retail outlets countrywide covering 100 towns.

Lays with manufacturing plants in Punjab and Pune, aims at investing 20 crores to extend distribution facilities to improve coverage

5BingoLaunched on 14th March 2007

The range includes multiple flavours of Potato Chips & Finger Snacks.

The brand is associated with youth, fun and excitement. It fulfils the consumers need for variety and novelty in snacks.

At present Bingo! has 4 sub-brands in its portfolio.

About Bingo

Pricing StrategyLaysThe pricing strategy for Lays is consistent with other competing 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.

Lays and Kurkure, the two popular choices, come in different SKUs priced at Rs.5, Rs, 10 and Rs. 20, similar to Bingo and Haldiram.BingoThe main objective for ITC was to compete effectively with players who were already there. Hence, it launched a direct frontal attack by introducing similar priced SKUs.

ITC already enjoyed cost advantage over competitors through its e-choupal initiative. This also facilitated timely supply of raw materials.

ITCs printing and packaging business also lead to high-quality, cost-effective and innovative packaging.Promotional StrategyLaysRealizing the direct threat posed by Bingo to its market share, Fritolay revamped its branding strategy for all leading brands.

Indianized versions of Lays were also launched after Bingos success with Indian flavors.

Chala Change Ka Chakkar the largest ever brand promotional strategy undertaken by Fritolay aimed at bringing all its flagship brands under one roof. This massive umbrella campaign would allow chosen customers to live the life of a Bollywood Indian celebrity for a day.Advertisement strategies of LaysIn 2008, Lays launched the Fight for Your Flavour allowing consumers to vote for the flavour of their choice.

The flavour with the maximum votes would continue in the market.

The advertisements were by the Lays brand ambassadors Saif Ali Khan and M.S. Dhoni with each celebrity rooting for the flavour of their choice.Contd.Flavours of Lays chips have seen changes in India and across the world from popularizing the Classic salted variety and foreign flavours like BBQ and American Cream & Onion in India.

Lays has also introduced Indian flavours such as Curry in countries like Canada.Commonly available flavours

Commonly available flavours

Baked Chips

Recent Advertisements by LaysFrito-Lay has announced plans to go local,"Lay's Local campaign focuses on the 80 farms (scattered across 27 states) that grow the potatoes used to make the chips.

Knowing where food is made and grown is important to consumers. Sharing with consumers how regional we are is relevant and compelling.

A Chip Tracker on Lays.com allows consumers to find out where a bag of chips is made.

BingoBingos launch was strategically timed around the World Cup to cash in on the tremendous popularity of snacks among cricket lovers in the country.

ITC booked 10-15 spots per channel per day,20 on radio stations supported by 1000s of hoardings advertisement.Acc. to industry estimates, total advt. spend in initial 6 months were 100 crores.

While its competitor Fritolay focuses on celebrity endorsements, Bingo chose not to have an ambassador!Contd.As the product is aimed at youth, digital media was heavily used. For instance, the Bingo National Gaming Championship was held across 4 cities with more than 25,000 participants.

Bingeonbingo.com and Mad Angles Twister Application (Facebook) were other initiatives on online media.

This sudden media blitzkrieg of ads left a mark in the audiences minds . In certain areas, Bingos market share touched 50%Further, the company distributed 4 lakh racks across all retailers to display the brand at all Points-of-sale.

Within 6 months, Bingo was available across 2,50,000 retailers across the country.

A crucial alliance with Future group which lead to all future group retail outlets like Big Bazaar, Food Bazaar stocking only ITCs Bingo.

Contd.ITC already had a well-established distribution network through its cigarette and tobacco-related offerings which was leveraged in case of Bingo.

21Bingo StrategyThe success of Bingos marketing strategy can be attributed to:-1. T.V. Ad Campaign2. Assortment of flavours and eye catching packaging3. High availability at big and small retailers across the country.4. Pricing Strategy

Before Launch, it developed a cross-sectional team of 8 individuals who travelled across 14 cities to identify the snacking habits of the Indian Consumer. The team found out that local-tasty snacks like khakra, vada pav, samosas etc were popular choices among the Indian audience. Based on this info, it decided to develop flavors with an Indian taste.Bingo! Yumitos - 'Take a Yumitos Break'Bingo! Yumitos is very tempting and yummy account the full bodied flavours.

These flavours range from traditional favourites like Salted to innovative ones such as Red Chilli. There are in total 7 exciting flavours.

Bingo! Mad Angles - "Har Angle se Mmmm..."Bingo! Mad Angles is synonymous with the perfect triangular snack.A combination of innovative flavours on a traditional khakra base, Mad Angles is a snack that is true to taste with perfect flavour delivery as well as shape, making it a snack that's truly "Har Angle se Mmmm ..."

Bingo! Tedhe Medhe -"Har Stick mein alag twist."Bingo! Tedhe Medhe is the popular spindle shaped format from Bingo! that is a delicious blend of handpicked spices with an aroma that makes one crave for more.

Bingo! Tangles - "Khaoge to Khilaoge..."Each piece of this innovative crunchy snack is made out of strands loaded with lip smacking masala or tantalizing tomato or simply salted flavours.

ITC BINGO v/s FRITOLAYSBasisITC BingoFrito Lay LaysMargin distributor3%5.5%Margin retailer12%10%Margin wholesaler12%10%COMPARISON OF MARGINSCustomer survey- Snapshot

WEB-BASED REFERENCEShttp://www.imagesretail.com/support_jan_suplychain.htmhttp://www.televisionpoint.com/news2009/newsfullstory.php?id=1244814371http://www.afaqs.com/perl/news/story.html?sid=20324http://www.moneycontrol.com/news/business/frito-lay-loses-snack-mkt-share-to-itcs-bingo_300325.htmlhttp://www.bizdewz.com/parle-monaco-smart-chips-vs-lays-or-aliva/http://www.afaqs.com/perl/news/story.html?sid=25651http://economictimes.indiatimes.com/news/news-by-industry/cons-products/food/Balaji-Wafers-a-name-to-reckon-with-in-Gujarat-snacks-market/articleshow/5367599.cmsTHANK YOU