A PROJECT REPORT

ON

‘BINGO’
(A COMPARATIVE STUDY)
A Project Report submitted in partial fulfilment of the requirements for the
awards of the degree of

MASTER OF BUSINESS ADMINISTRATION

TO
G.G.S. INDRAPRASTHA UNIVERSITY, NEW DELHI

By
VIPUL
Enrollment NO. -
Under the guidance of
Dr. Amit Gupta
 esha

STUDENT’S DECLARATION

I here by declare that the Project Report conducted on

‘BINGO’

(A COMPARATIVE STUDY)

Under the guidance of

Dr. Amit Gupta
Submitted in Partial fulfilment of the requirements for the Degree of

MASTER OF BUSINESS ADMINISTRATION

TO
G.G.S. INDRAPRASTHA UNIVERSTY, NEW DELHI

This is my original work and the same has not been submitted for the award of
any other Degree/Diploma/Fellowship or other similar titles or prizes.

Place: VIPUL
Date: Enrollment No.-
 CERTIFICATE
This is to certify that the Project Report on

‘BINGO’
(A COMPARATIVE STUDY)
Submitted in partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

TO
G.G.S. INDRAPRASTHA UNIVERSITY, NEW DELHI

Is a record of work carried out by

VIPUL

Under my supervision and guidance and that no part of this report has been
submitted for the award of any other degree/diploma/fellowship or similar titles or
prizes.

FACULTY GUIDE
Signature :

Name : Dr. Amit Gupta

Qualification: (Signature & Seal of Learning centre.)

Contents

1. INTRODUCTION

1.1 General Introduction

1.2 Objectives of Project
1.3 Industry Profile of Food Processing Industry
A) Indian Food Processing Industry
B) Indian Snacks Industry: An Overview
C) SWOT analysis of Indian Snacks Industry

2. PROFILE OF THE ORGANISATION: ITC Ltd.

A) Establishment
B) Growth and Diversification

3. STUDY OF SELECTED RESEARCH PROBLEM

3.1 Statement of Research Problem

3.2 Statement of Research Objectives
3.3 Research Design & Methodology
3.4 Analysis of Data
3.5 Summary of Other Findings
3.6 Recommendations and Conclusions

APPENDIX
A) Questionnaire Sample
B) Bibliography
 CHAPTER.1

INTRODUCTION
 CHAPTER.1 INTRODUCTION

1.1 GENERAL INTRODUCTION

The project purports to decipher the satisfaction level as well as the preferences

of consumers pertaining to the various flavours of BINGO- a new range of

savoury snacks launched by ITC. We aim to analyse the success, marketability

and future growth prospects of BINGO. We also intend to study the spending

habits and motivation of consumers for buying snacks.

Basically we intend to find out the most popular flavour of BINGO in the market

from our sample. Snacks as such are a very minor part of the food processing

industry because snacks sector is largely unorganised. Here we will also look

into the market trends in snacks over the years.

For this a survey was conducted in Delhi where respondents were asked to fill a

questionnaire. The data was collected and analysed to obtain conclusions.

This report carries an introduction of the company profile, detail of the

methodology followed detailed data analysis and the results so obtained with the

variety of graphs along with given.

1.2 OBJECTIVES OF THE STUDY

1. To study the snacks industry as a part of food processing industry.

2. To study the company profile of ITC Ltd the makers of BINGO.

3. To study the trends in snacks industry.

4. To analyse and interpret the results of sample collected.

 5. To determine the future course of action by ITC.

6. To find conclusions to our project.

1.3 INDUSTRY PROFILE OF INDIAN FOOD PROCESSING

INDUSTRY

A) Indian Food Processing Industry

Food processing industry in India is a sunrise sector that has gained prominence

in the recent years. Availability of raw materials, changing lifestyles and

relaxation in policies has given a considerable push to the industry’s growth.

This sector is among the few that serves as a vital link between the agriculture

and industrial segments of the economy. Strengthening this link is of critical

importance to improve the value of agricultural produce; ensure remunerative

prices to farmers and at the same time create favorable demand for Indian

agricultural products in the world market. A thrust to the food processing sector

implies significant development of the agriculture sector and ensures value

addition to it.

Ministry of Food Processing Industries

The Ministry was set up in 1998 and the industry segments that come under its

purview are:

• Fruit & Vegetable processing (including freezing and dehydration)

• Grain Processing

• Processing of Fish (including canning and freezing)

 • Processing and refrigeration of certain agricultural products, dairy

products, poultry and eggs, meat and meat products

• Industries related to bread, oilseeds, meals (edible), breakfast

foods, biscuits, confectionery, savory snacks, malt extract, protein isolate,

high protein food, weaning food and extruded food products (including

other ready-to-eat foods)

• Beer, including non-alcoholic beer

• Alcoholic drinks from non-molasses base

• Aerated water and soft drinks

• Specialized packaging for food processing industries.

The Ministry of Food Processing Industries, GoI, has estimated the size of the

Indian food market at US$ 191 bn (Rs 8,600 bn). The processed food market is

projected to be over US$ 100 bn, of which the primarily processed food market

accounts for 60%, while the value-added processed food market is around 40%.

The average annual growth of the food processing industry has been around 8%

between FY01-FY06. The segments that have driven the growth are the

beverages and meat & meat products and processed fish sectors. The food

processing industry in India has a share of 1.5% in the total GDP of the country,

and as part of total manufacturing accounts for 9%. India’s share in world trade

in respect of processed food is about 1.6%.

An extensive and highly fragmented industry, the food processing sector largely

comprises of the following sub-segments: fruits & vegetables, milk and milk
products, beer & alcoholic beverages, meat and poultry, marine products, grain

processing, packaged/convenience food and packaged drinks. A large number of

players in this industry are small sized companies, and are largely concentrated

in the unorganized segment. This segment accounts for more than 70% of the

output in volume terms and 50% in value terms. However, though the organized

sector is comparatively small, it is growing at a much faster pace

B) INDIAN SNACKS INDUSTRY: An Overview

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack

is described as a small quantity of food eaten between meals or in place of a

meal. Snack food generally comprises bakery products, ready-to-eat mixes,

chips, namkeen and other light processed foods 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. Though there is no particular time

for snacks, normally they are consumed at teatime. The variety is almost mind-

boggling with specialties from all regions, which have gained national

acceptance.

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). AC Nielsen's

retail audit shows that the large sales volumes are due to a marked preference

for ethnic foods, regional bias towards indigenous snacks and good value-for-

money perception. Of course the branded segment is much smaller at Rs 2,200

crore, which is what makes it so attractive to food Companies that are looking at

bigger shares. In the branded snacks market, to get down to basics, Frito Lay

commands a share of 45%, followed by Haldiram’s at 27% and ITC at 16%. The

rest is divided between a handful of new entrants, wannabes and many regional

players.

Of the wide range of snacks available, potato chips constitute a sizeable

segment of the Indian snack food industry, according to India Infoline. The potato

chip market is generally an unorganized industry. Nearly all potato chip snack

products are manufactured and sold locally. There is also no uniform standard for

packaging, as there is in Europe, the United States and other more developed
regions. Many snack foods are sold loose or packaged in poly-pouches, which

may only be folded, or in some cases, stapled closed. As the Indian economy

continues to grow, and production standards improve, many snack food

companies are making significant investments into plant equipment and

packaging machinery.

Pepsi Foods Ltd., now known as Frito-Lay India Ltd., produces India's largest

snack food manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle

Chips. Frito Lay's story is an example of how American recipes were adjusted to

satisfy local tastes. Procter & Gamble's Pringles brand of potato crisp was

launched in Delhi in 1999. Pringles is also a baked potato crisp, unlike many

other potato based Indian snack foods that are fried. P&G currently imports the

Pringles product and therefore the product has been priced at a premium and is

marketed to a micro-niche.

C) SWOT Analysis of Snacks Industry

Strengths

• Abundant availability of raw material

• Vast network of manufacturing facilities all over the country
• Vast domestic market
• Urbanisation

Weaknesses

• Low availability of adequate infrastructural facilities

• Lack of adequate quality control & testing methods as per international
standards
• Inefficient supply chain due to a large number of intermediaries

• High requirement of working capital

Opportunities

• Rising income levels and changing consumption patterns

• Favourable demographic profile and changing lifestyles
• Integration of development in contemporary technologies such as
electronics, material science, bio-technology etc. offer vast scope for rapid
improvement and progress
• Opening of global markets

Threats

• Affordability and cultural preferences of fresh food

• High inventory carrying cost
• High taxation
• High packaging cost
• Competition between national and regional players
 CHAPTER.2

PROFILE OF THE
ORGANIZATION:

ITC Ltd.

CHAPTER.2 PROFILE OF THE ORGANISATION

 ITC LIMITED
A) 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 than 60 locations across India. It has a

turnover of $3 billion.

B) 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, it is 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 shareholder value. ITC practises this philosophy

by not only driving each of its businesses towards international competitiveness

but by also consciously contributing to enhancing the competitiveness of the

larger value chain of which it is a part."

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. Over

time, the strategic forays into new businesses are expected to garner a

significant share of these emerging high-growth markets in India.

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 wholly owned Information Technology subsidiary, ITC Infotech India

Limited, is aggressively pursuing emerging opportunities in providing end-to-end

IT solutions, including e-enabled services and business process outsourcing.

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."
 CHAPTER.3

STUDY OF SELECTED
RESEARCH PROBLEM
 STUDY OF SELECTED RESEARCH PROBLEM

3.1 STATEMENT OF RESEARCH PROBLEM

In the branded snacks market, to get down to basics, Frito Lay commands a

share of 45%, followed by Haldiram’s at 27% and ITC at 16%. The

rest is divided between a handful of new entrants, wannabes and many regional

players. Out of these ITC’s Bingo is a new entrant in the market, which was

launched in 2007. ITC has launched Bingo in a wide variety of flavours and

formats, ranging from potato chips to finger snacks. Because of its different and

catchy advertisements Bingo has created a buzz in the market.

Therefore, our aim was to find out the most popular flavour of Bingo among all

the offerings.

We began our analysis by dividing people into those who like to eat snacks and

those who don’t. We based our study on the survey of people who like to eat

snacks. This survey was conducted in Delhi. To collect the data we designed a

questionnaire.

3.2 STATEMENT OF RESEARCH OBJECTIVES

The main objectives of our research were as follows:

 To find out what percentage of population likes to eat snacks.

 To find out which flavour of Bingo is most preferred.

  To analyse the reason for the popularity of the most preferred snack.

 To know the satisfaction level of people who eat Bingo.

 To find out how much people spend on snacks weekly.

 To find out the preferences of people for different brands.

3.3 RESEARCH DESIGN & METHODOLOGY

Research design is the basic framework which provides guidelines for the rest

of research process. It specifies the methods for data collection and data

analysis .In this research project we have used the survey method of data

collection, to be more specific questionnaire method. We conducted a survey in

Delhi. Out of the universe of 500 our sample size is 50. Respondents in the

sample size were asked to fill the questionnaires to gather the data.

3.4 ANALYSIS OF DATA

In order to extract the meaningful information from the data collected an analysis

of data is done using pie charts, bar graphs etc.

 The first objective of the research project is concerned with finding

out what percentage of people likes to eat snacks. The pie chart

given below is clear on the percentage of people who like to eat

snacks. Out of 50 respondents 36 like to eat snacks while 14 don’t.

 no, 14, 28%

yes, 36, 72%

 Our second objective is concerned with finding out which flavour of

Bingo is most preferred.

Table showing the responses of people:

Flavours Respondents Respondents

(value) (percentage)
Masala Potato chips 3 8%
Salted Potato chips 1 3%
Tomato Potato chips 3 8%
Chatkila Nimbu Achar Potato chips 1 3%
Tandoori Paneer Tikka Potato chips 3 8%
Mad Angles 22 61%
Tedhe Medhe 1 3%
Livewires 2 6%
 6% 8%
3% Masala Potato chips
3%
Salted Potato Chips
8%
Tomato Potato chips
3%
Chatkila Nimbu Achar Potato
Chips
8% Tandoori Paneer Tikka potato
chips
Mad Angels

Tedhe Medhe

61% Livewires

The above table and pie chart shows the responses of the people. It is clear that

Bingo’s Mad Angles dominates the market for Bingo. The second spot is shared

by two flavours equally—Masala potato chips and Tandoori Paneer Tikka potato

chips. Third most popular format of Bingo is Livewires and the fourth spot is

shared by Salted Potato Chips, Chatkila Nimbu Achar potato chips and Tedhe

Medhe.

 The third objective was to analyse the reasons for the popularity of

the most preferred flavour. For this the respondents were asked

what do they like most about Bingo. Following pie chart shows their

responses.
 5%
Taste
13%
Variety
Quality
Price
8% 47% Quantity
Packaging

16%

11%

From the above pie chart we can see that people like the taste of Bingo the

most i.e. they like to eat Mad Angles Because of its unique format and

flavour.

 Fourth objective was to find out how much people are satisfied with

Bingo. Following pie chart shows the satisfaction level of people:

unsatisfied
17%

very
satisfied
44%

somewhat
satisfied
39%
  The fifth objective was to find out how much people spend weekly

on snacks.

No.of people 25
20
20

15 Below 50
11 50-100
10
Above 100
5
5

0
Money Spent

From the above diagram it is clear that most people spend below Rs.50 on

Snacks. And very small part of the sample spends more than Rs.100 on

snacks weekly.

 Our sixth and last objective was to find out the preferences of people

for different brands. Here, we aim to find out the most popular brand

of snacks excluding Bingo.

14 13
Lays
12
10 9 Kurkure
No. of 8 7
people 6 Uncle chips
5
4
Pringles
2
2
0 Haldirams
Snacks Brands namkeens
 In the above graph we can see that Frito Lays is the most popular brand

among people followed by Uncle Chips and Kurkure. Next is Haldiram’s

Namkeens. The least popular brand appears to be Pringles. It may be

because Pringle is based on American recepies and tastes and the Indian

public has not been able to warm up to the American tastes. Also, Pringles is

imported which makes it a little more expensive than Indian snacks.

3.5 SUMMARY OF OTHER FINDINGS

16 people out of 36 people who like to eat snacks feel that as compared to

other brands Bingo is much better. Other 12 feel that Bingo is somewhat

better and 8 feel that Bingo is about the same as other brands. None feel that

Bingo is somewhat worse or much worse than other brands.

When asked how often they eat Bingo 22 people said once a week or more

often, 11 people said everyday and 3 people said 2-3 times a month.

3.6 RECOMMENDATIONS AND CONCLUSIONS

After conducting the survey we are in a position to say that ever since its

launch Bingo as a preferred brand is on a rise. Although Frito Lays is the

most popular brand Bingo has carved a niche for itself. Bingo is in the growth

stage of its life cycle. Given more time it is capable of capturing a larger

market share and giving tough competition to other brands.

Overall people seem to be satisfied with Bingo.

APPENDIX
 RESEARCH PROJECT ON THE STUDY OF BINGO

This is survey on Bingo by Esha Goel for the partial fulfilment of the
requirements for the awards the degree of MASTER OF BUSINESS
ADMINISTRATION. So kindly give your response to these questions:-

QUESTIONNAIRE on
Name: _______________________

Age : ________

Signature: ___________________

General Instructions:
1. Answer all questions.
2. Indicate your answer by marking a tick against an appropriate option.
3. Mark only one option in all questions.

Q1. Do you like to eat snacks?

Yes ___
No ___

Q2. Have you heard of ITC’s BINGO?

Yes ___
No ___

Q3. Have you ever tried BINGO?

Yes ___
No ___

Q4. Which flavour do you like the most?

1. Masala Potato Chip ___
2. Salted Potato Chip ___
3. Tomato Potato Chip ___
4. Chatkila Nimbu Achar Potato Chip ___
5. Tandoori Paneer Tikka Potato Chip ___
6. Mad Angles ___
7. Tedhe Medhe ___
8. Livewires ___

Q5. How often do you have BINGO?

Once a week or more often ___
Everyday ___
2 to 3 times a month ___
Q6. How much do you spend weekly on snacks?
Below Rs. 50 ___
Rs. 50-100 ___
More than Rs. 100 ___

Q7. Overall, how satisfied are you with BINGO?

Very satisfied ___
Somewhat satisfied ___
Unsatisfied ___

Q8. What do you like about BINGO?

Taste ___
Variety ___
Quality ___
Price ___
Quantity ___
Packaging ___

Q9. Compared to other snacks (such as Kurkure, Lays, Pringles

etc.) that are available, would you say that BINGO is?
Much better ___
Somewhat Better ___
About the same ___
Somewhat Worse ___
Much Worse ___

Q10. How likely are you to recommend BINGO to others?

Definitely will recommend ___
Probably will recommend ___
Not sure ___
Probably will not recommend ___
Definitely will not recommend ___

Q11. How did you first discover BINGO?

Advertising- T.V, Newspaper, Radio ___
Friends/ Family ___
Saw it in store ___
Other ___

Q12. Before switching on to BINGO, which snack did you prefer?

Lays _____
Kurkure _____
Uncle chips _____
Pringles _____
Haldiram Namkeens _____

BIBLOGRAPHY
SME rating agency of India ltd.
www.allbusiness.com

http://www.financialexpress.com/news/Just-munch-it/271873/0

www.itcportal.com