Comparative study between

LAYS & BINGO

PROJECT BY: SRIPRIYYA SOURABH ROLL.NO- 1026 ROOM.NO- 37 DEPT. OF MARKETING B.COM(EVE) ST.XAVIER‟S COLLEGE(AUTONOMOUS), KOLKATTAA •• To know which one is better, Lays or Bingo in terms of quality, price, availability and promotion.

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

•• To know whether lays is giving any heed to the presence of Bingo in market and designing its marketing strategy in such respect or is happy and satisfied with its market leadership and keep a neglected attitude towards Bingo.

•• To find out problems that Bingo is facing to establish and maintain its market share in the presence of a very much established and popular product lays and give personal recommendations in this regard.

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

•• To analyse reason for popularity of most preferred brand. •• According to the ministry of food processing, the snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume.

•• Though very large and diverse, the snacks industry is dominated by the unorganized sector. According to an Apeda survey almost 1,000 snack items and 300 types of savouries are sold across India. The branded snacks are sold at least 25% higher than the unbranded products. Savoury snacks have been a part of Indian food habit, since almost ages.

•• The industry has been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free). •• •• STRENGHT OPPORTUNITIES 1. Abundant availability of raw 1. Rising income level & changing material. consumption pattern. 2. Vast network of manufacturing 2. Favourable demographic profile. facilities all over country. 3. Development in contemporary 3. Vast domestic market. technology. 4. Urbanisation. 4. Opening of global markets.

•• •• WEAKNESS THREATS 1. Poor infrastructural facilities. 1. Affordability & cultural preference of fresh food. 2. Lack of adequate quality control. 2. High inventory carrying cost. 3. Insufficient supply chain. 3. High taxation. 4. High requirement of working capital. 4. Competition between National & regional players. (COMPANY PROFILE IN NUTSHELL)

•• ITC was incorporated on August 24, 1910 under the name Imperial Tobacco Company of India Limited., the name of the Company was changed from Imperial Tobacco Company of India Limited to India Tobacco Company Limited in 1970 and then to I.T.C. Limited in 1974. The full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited„„

•• ITC Ltd is one of India's premier private sector companies with diversified presence in businesses such as Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri- Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Greeting Cards, Safety Matches and other FMCG products.

•• Presently, ITC has a market capitalisation of nearly US $ 15 billion and a turnover of over US $ 4.75 billion. It employs over 21,000 people at more than 60 locations across India. ITC has been rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine. PEPSICO INDIA

(COMPANY PROFILE IN NUTSHELL)

•• PepsiCo entered India in 1989 and has grown to become the country‟s largest selling food and Beverage Company.

•• PepsiCo India‟s expansive portfolio includes iconic refreshment beverages , , and , in addition to low calorie options such as , hydrating and nutritional beverages such as drinking water, isotonic sports drinks - , Tropicana 100% fruit juices, etc.

•• PepsiCo‟s foods company, Frito-Lay, is the leader in the branded salty snack market and all Frito Lay products are free of trans-fat and MSG.

•• It manufactures Lay‟s Potato Chips, extruded snacks, Uncle Chipps and traditional snacks under the and Lehar brands and the recently launched „Aliva‟ savoury crackers. When we compare FRITO LAY and BINGO as a product they exhibit similarities in various ways: •• First and foremost both are available in potato chips form as well as other snacking form like KURKURE and CHEETOS of FRITO LAY and Bingo‟s MAD ANGLE and HATKE JHATKE. •• Secondly both FRITO Lay‟s product and Bingo‟s product are available in different packet sizes such as Rs 20 pack, Rs 10 pack, Rs 5 pack and so on. •• FRITO Lay‟s and Bingo‟s product are available in various flavours to suit the taste and

preferences of different consumers ..

In spite of various similarities there are a few differences which cannot be overlooked:

•• Bingo positioned itself as chips of Indian twist. The offerings under Finger snacks segment include pakora inspired „live wire‟ and Khakra inspired „mad angles‟. •• Bingo‟s MAD ANGLE has uniqueness in taste and in a way it cannibalizes other BINGO PRODUCTS. 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.

•• ITC enjoys cost advantage over competitors through its e-choupal initiative. This also facilitates timely supply of raw materials. ITC‟s printing and packaging business also leads to high quality, cost effective and innovative packaging.

•• Recently FRITO LAY launched 3 SKU for its KURKURE brand in a bid to compete more aggressively. 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, and recently launched ALIVA.

•• FRITO LAY boasts of reaching more than 1 million retail outlets countrywide covering 100 towns. The company with its manufacturing plants in Punjab and pune aims at investing 20 crores to extend distribution facilities to improve coverage and increase product shelf to 120 days.

•• ITC already had a well established distribution network through its cigarettes and tobacco related offerings which were leveraged in case of BINGO. Further company distributed 4 lakh racks across all retailers to display the brand at all point of sale.

•• A crucial alliance with FUTURE GROUP which lead to all Future GROUP retail outlets like Big Bazaar, Food Bazaar stocking only ITC‟s BINGO.HORECA (hotels, restaurants, and cafes”), Local Betel shops are all being used to distribute BINGO to a wide range of audience. When we talk about promotion strategies for LAYS and BINGO they show remarkable differences: •• Bingo was strategically launched at the time of world cup to cash in on the popularity of snacks among cricket lovers of country. •• The advertising strategy revolved around slapstick humour and irrelevant themes to hold eyeballs garner attention and interest and stand out from clutter. •• As the product is aimed at youth digital media was heavily used. For instance, the Bingo National Gaming championship across 4 cities with more than 25000 participants.BINGEONBINGO.COM and MADANGLE TWISTER application (FACEBOOK) were other initiatives in online media. •• Realizing the threat posed by BINGO to its market share. FRITO LAY revamped its branding strategy for all leading brands. For Lays, the company signed Saif Ali Khan and MS Dhoni.Indianized version of Lays were also launched after Bingo‟s success with Indian flavours.These include chaat street.. •• CHAI- TIME ACHIEVERS- A kurkure centric campaign promoted the idea of heavy audience interaction by sending recipes for new flavours. •• Other initiatives include posters at various unconventional retail plants, a tie up with south western Railways known as KURKURE-EXPRESS to increase brand visibility.