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I hereby declare that summerv training report entitled to study “An Empirical
Study on Consumer Perception towards ITC Bingo” unit in order to carry out the
business is based on my original study and has not been submitted earlier for any
degree or diploma of any institute/ university.
The work of other author ,whenever used has been acknowledged at appropriate
place.
New Delhi,India
Himanshu chopra
(05712401709)
Ms pooja sharma
Supervisor
DIRD
“An Empirical
Study on
Consumer
Perception
towards ITC
Bingo”
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1.1: OBJECTIVES OF THE STUDY
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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
This sector is among the few that serves as a vital link between the agriculture and
improve the value of agricultural produce; ensure remunerative prices to farmers and at
the same time create favourable demand for Indian agricultural products in the world
market. A thrust to the food processing sector implies significant development of the
The Ministry was set up in 1998 and the industry segments that come under its purview
are:
Grain Processing
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Processing and refrigeration of certain agricultural products, dairy products,
confectionery, malt extract, protein isolate, high protein food, weaning food and
The Ministry of Food Processing Industries, has estimated the size of the Indian food
market at US$ 191 billion (Rs 8,600 billion). The processed food market is projected to
be over US$ 100 billion, of which the primarily processed food market accounts for 60%,
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%.
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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,
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
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B) INDIAN SNACKS INDUSTRY: An Overview
Indian cuisine has a rich array of appetisers, snacks. Many of these are comparatively
lower in fat than most western appetisers which are heavy on butter and cheese. 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 specialities from all regions, which have gained national acceptance.
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.
The industry has been growing around 10% for the last three years, while the branded
segment is growing around 25% per annum. Major players are PepsiCo's Frito Lays and
Haldiram's, the Delhi-based Bikanervala Foods and the latest entrants Mother Dairy with
the launch of namkeens under the brand name of "Aa Ja Kha Ja" and Satnam Overseas
Ltd, the country's largest Basmati rice exporters and owner of 'Kohinoor brand, which has
forayed into the packaged snack food market with the launch of Kohinoor Namkeenz.
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From selling bhajias some 70 years ago in Bikaner, Haldiram's was the first to lay
emphasis on packaging and presentation of its ready-to-eat snacks. The group now
For potato wafers, it is primarily the case of a commodity market largely turning
packaged. The retail audit suggests that growth in this segment is seen largely as a
Besides Balaji Wafers, competitors in the local potato chips market include brands like
Frito Lay's, Peppy, Uncle Chips, with high visibility advertising and trade promotions.
Then there are some other well-known brands like Hostage, Binnie's, Funmunch, Hello,
Twinkle, Marvel, Ok, Garden, Mota Chips, Monginis, Brijwasi and Chedda. There
are some regional players like Samrat Namkeens in Gujarat, Garden Foods in Mumbai &
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. Procter & Gamble currently imports the Pringles product and therefore the
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Banana chips are a sub-segment that's also fast catching on. A predominantly southern
phenomenon, banana chips now contribute approximately 3.1% to total branded sales of
namkeens, up from 2.7% in 2001, while volume contribution was 3.6% in 2002. Industry
There are also several snacks made of rice flour, wheat flour and pulses like Bengal gram
(moong), moth gram etc. These are also basically fried product, but the fat content is less
ranging from 20-30%. While in the south rice flour and urid are used, wheat flour, Bengal
gram and green gram are used in the north and western regions. In addition, there are
snacks made of nuts. Under this category are mainly roasted/fried nuts, either whole or
One of the drawbacks of snack food health wise is the high fat content, which ranges
from 35-50%. The unbranded snacks manufacturers use cheap oil and are priced low
when compared to the branded snacks. The manufacturing process is mainly semi-
Though very large and diverse, the snacks industry is dominated by the unorganized
sector. There are 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
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The variety is almost mindboggling 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). 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.
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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
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C) SWOT ANALYSIS OF INDIAN SNACKS INDUSTRY
STRENGTHS WEAKNESSES
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A) BIKANERVALA FOODS
Bikanervala Foods, the snack foods major in the country marketing under the brand name
BIKANO, has achieved a remarkable export growth rate of more than 200% for the past
two years. BIKANO products have found its place in USA, Canada, UK, Germany,
The company has successfully combined traditional knowledge with modern technology
and is fast emerging as a global player catering not only to the overseas Indian
community but also developing new recipes to suit the world markets.
Currently, Bikanervala Foods is the contract manufacturer for major Indian namkeen
brands such as Lehar of PepsiCo's Frito-Lay India and Aa Jaa Khaa Jaa of Mother Dairy
Foods.
The company has ready-to-eat products under its fold like wide range of crisp, salty,
anytime snacks, popularly known in India as 'Namkeens' that are always a favourite at
cocktails and a must at tea times. BIKANO packaged sweets make the great Indian
anytime.
There are wide range of Papads made from the choicest of pulses and developed by the
womenfolk of Rajasthan and Gujarat. Papad can be enjoyed with meals or served as any-
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time snacks too. Bikano Papad can be roasted or fried as per individual taste and
preference.
It has three modern manufacturing plants located in India are state-of-art amalgamation
The R&D division has suitably modified traditional recipes of Indian sweets making us
pioneers in exporting perishable sweets like Kaju Burfi, Khoya Burfi, Patisa, and Chhena
Packaging). The canned sweets like Gulab Jamun, Rasogolla, Raj bhog and Petha have
captured the taste buds of most of our customers abroad. There are post-production
checks to ensure that every batch conforms to laid down standards of quality.
Also the quality could be defined as the state of Zero Defect. The R&D strives towards
perfection through Total Quality Management. Their state-of-art quality system has been
awarded ISO 9001: 2000 by UL India Ltd. The Quality Assurance Department has world
Physical analyses.
Currently, the R&D division is working on functional foods and foods that can be helpful
in special nutritional disorders like diabetes and geriatrics. Soon they shall have a sugar-
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free range of sweets for exports. The R&D division is equipped with the world's best
Balaji Wafers Pvt. Ltd, Gujarat-based leading potato chips and namkeen manufacturing
company is planning to set up three new plants, two within the country and one in Europe
to meet the increasing demand from foreign countries. The two plants in the country
Balaji manufactures and supplies potato chips plus a variety of mixed fried snacks called
namkeens to the populace in Gujarat. The company claims to have a presence in 90% of
This family-owned enterprise, now in its 20th year of operation, has 19 product lines to
offer the snack hungry population in Gujarat, from potato chips to banana chips and even
It produces some 5 tonnes of these products per day (approximately 19,000 tonnes per
year), raking in around US$15 million per year. Situated in Rajkot, the ethnic snack
producer finds immense opportunity for the quality and branded snack items as a
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reflection of changing consumer preference towards packaged goods.
The range of products includes potato wafers in four flavours, banana wafers in two
flavours, Chanadal, Mug Dal, Vatana, Tikha Mitha Mix, Khatta Mitha Mix, Aloo Sev,
Ratlami Sev, Sing Bhujia, Farali Chevdo and Masala Sing (extruded snack) which are
The company has also developed sizeable market in Maharashtra (30%) and Rajasthan
(10%). Due to limited production capacity they still have not expanded to other states, but
after the full set up they hope to gradually replicate the success of Gujarat throughout the
country. The company is willing to install high production capacity units in the other
In the year 2003, Balaji started a new factory of 25,000 sq m in Rajkot where they
installed FMC Potato Processing Machinery (PPM) Chips Line, which can process nearly
5000 kg potatoes per hour to manufacture 1200 kg potato wafers per hour. In the presence
of multinationals like Frito Lays, it becomes interesting to find out the reason for Balaji's
success in Gujarat.
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From being a mere supplier of potatoes for various food chains, Natraj Cold Storage and
Foods has made a foray into retail with Lip Chip potato chips in Western India.
They were one of the largest suppliers of potatoes to some of the biggest chips brands in
India for more than 8 years. They have seen the demand for raw material grow at more at
The USP of Lip Chip is its flavours that cater to the Indian taste, like Achaar, chilly, lime
and pepper. Lip Chip is made from the finest potato available in western India. Lip Chip
blow your mind, Exotic 'Tomato Fire' to put you on fire, smashing freshness of 'Lime N
Mint Jhatka' and 'Sizzling Chilly Achaar' to scorch your taste buds.
Within a month of launch they are already present in more than 20,000 outlets in the
markets that we have launched i.e. Mumbai-Maharashtra-Goa. The off takes have been
overwhelming with almost all 75 stockists placing repeat orders, which is an indication of
They will be launching in three more markets within next two months. They want to
achieve national presence within the next one year. They are targeting young consumers
They will create awareness about Lip Chip through advertising in mass media such as
print, radio [television in the near future] and taking the equity of 'Taste Ka Tight Slap'
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forward across various below the line platforms.
The thrust so far has been on generating trials through promo offer. They are running 'Lip
Chip' Adventure ka Naya Taste contest where consumers can sms 'Lipchip' to 8558 and
win exciting prizes such as Yamaha Raptor, Dive with sharks holiday in South Africa and
many other prizes. Consumers are asked product related questions which one can answer
only post buying the product. They have also tied up with movie theatres such as
Creating a successful brand is a long process. Each brand goes through certain life cycle
stages. Post launching Lip Chip the whole focus is now on generating trials and making
consumers taste our unique flavours. This will keep launching the brand in other markets.
So our immediate task is to achieve national presence. Creating awareness and making
people try and then get repeat purchase is a big challenge. This involves achieving
enough visibility at retail, putting Lip Chip in the consideration set of the TG and keep
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2.1: ESTABLISHMENT
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company
of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane,
Kolkata, was the centre of the Company's existence. The Company celebrated its 16th
birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee,
(now renamed JL. Nehru Road) Kolkata, for the sum of Rs 310,000. This decision of the
Company was historic in more ways than one. It was to mark the beginning of a long and
eventful journey into India's future. The Company's headquarter building, 'Virginia
House', which came up on that plot of land two years later, would go on to become one of
The Company's ownership progressively Indianised, and the name of the Company was
Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting
Gifting & Stationery - the full stops in the Company's name were removed effective
September 18, 2001. The Company now stands rechristened 'ITC Limited'.
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ITC's foray into the Foods business is an outstanding example of successfully blending
August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet
dishes. In 2002, ITC entered the confectionery and staples segments with the launch of
the brands mint-o and Candyman confectionery and Aashirvaad Aatta (wheat flour).
2003 witnessed the introduction of Sunfeast as the Company entered the biscuits
segment. ITC's entered the fast growing branded snacks category with Bingo in 2007. In
just seven years, the Foods business has grown to a significant size with over 200
differentiated products under six distinctive brands, with an enviable distribution reach, a
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
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ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,
Branded Apparel, Personal Care, Stationery, and Safety Matches and other FMCG (Fast
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.
One of India's most valuable and respected corporations, ITC is widely perceived to be
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
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ITC's diversified status originates from its corporate strategy aimed at creating multiple
acknowledged service skills in hotels. 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).
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
ITC's wholly owned Information Technology subsidiary, ITC InfoTech India Limited, is
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
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ITC employs over 21,000 people at more than 60 locations across India. The Company
environment to consistently reward more than 388000 shareholders, fulfil the aspirations
of its stakeholders and meet societal expectations. This over-arching vision of the
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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.
I began my analysis by dividing people into those who like to eat snacks and those who
don’t. I have based my study on the survey of people who like to eat snacks. This
survey was conducted in Faridabad and Delhi. To collect the data we designed a
questionnaire.
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3.2: RESEARCH METHODOLOGY
includes surveys and fact finding inquirer of different kinds. The major purpose of
Both Primary and secondary data have been used to collect data for the study.
Sample Size:
Data Analysis:
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The results of the survey are tabulated and presented in form of bars and pie charts.
Questionnaire design:
answer.
Students
House wives
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3.3: ANALYSIS OF DATA
In order to extract the meaningful information from the data collected an analysis of data
The first objective of the research project is concerned with finding out what
percentage of people like to eat snacks. The pie chart given below is clear on the
percentage of people who like to eat snacks. Out of 50 respondents 46 like to eat snacks
while 4 don’t.
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Secondly I found out what percentages of the respondents were aware about Bingos.
Out of the 50 respondents 47 are aware of Bingo while 3 had not heard of it. Hence, it
can be concluded that ITC has done well in promoting Bingo and spreading awareness
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Third objective was to know how the respondents who were aware about Bingo got to
Of these 37 had seen the TV commercial of Bingo, 2 had heard it from their friends while
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Fourthly, 35 respondents had tried Bingo while the remaining 12 had not tried it.
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The fifth objective was to find out the preferences of people for different brands.
In the above graph we can see that Frito Lays is the most popular brand among people
followed by Kurkure and Uncle Chips. The least popular brand appears to be Uncle
Chips. It may be because Uncle Chips in the recent times has not been able to match up
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to bigger brands such as Lays and Bingo due to their extensive branding and wide
distribution network.
Sixth objective is concerned with finding out which brand did the respondents prefer
6 respondents had liked lays, 4 Kurkure and 2 Uncle Chips before switching over to
Bingo. Hence, Bingo has affected the share of Lays the most.
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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—Livewire chips and Tandoori Paneer Tikka potato chips. Third most popular
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format of Bingo are shared by Tomato Potato Chips, Chatkila Nimbu Achar potato chips
6 respondents had Bingo more than once in a week while 3 had once a week and 3 had it
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The ninth objective was to find out how much people spend weekly on snacks.
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.
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The tenth and last objective was to analyse the reasons for the popularity of Bingo.
For this the respondents were asked what do they like most about Bingo. Following pie
From the above pie charts we can see that people like the taste of Bingo the most. It is
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3.6: CONCLUSION
After conducting the survey we are in a position to say that ever since its launch Bingo as
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
Apart from understanding the consumer perception following are some of the reasons
responsible for making Bingo a success in a very short period of time. Here are the
1) Research:
After making the decision to launch Bingo it started by sending a cross-functional team
of eight individuals were sent across the country to research the snacking habits of the
Indian consumer. After travelling to 14 cities and speaking to more than 1,000 people, the
team came back with an insight that Indian consumers were looking for novelty and
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2) Taste:
For the recipes, the company went to the chefs in its hotels. The chefs came back with
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
3) Targeting:
The Company decided that youngsters in the age group of 16-30 are the most
Bingo touched a chord with consumers through humour and irreverent advertising. 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
online games, downloads and even mobile games. According to industry estimates, ITC
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5) Distribution:
The Company 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-Lay's introduced its own version of wafer racks. This incredible leveraging of
distribution system is credited by many as major cause of Bingo's success. Now due to
this lays started doing re-branding exercise and has introduced Lay's Chaat street, India's
Mint Mischief and Wafer Style. Lays has relaunched itself in the health platform. This
December, Lays has launched the concept of Snack Smart which talks about a healthy
snack. Now Lays is with 40% less saturated fat. That means same taste and more healthy.
The latest launch is in line with the announcement made by PepsiCo’s Global Chief Ms
Indra Nooyi that the Company is moving towards a healthy platform. This initiative is
intended to silence the critics that Potato Wafers are junk food. Together with the re
launch, Lays has introduced new flavors: Lay's Chaat Street, Mint Mischief and Wafer
Style. The new variant which is Indian flavors is a result of the tough competition from
Bingo. It’s interesting to note that Bingo has forced Lays to relearn its own lessons. Lays
had captured the Indian consumer's mind through Indianisation but later somewhere the
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The latest health positioning is definitely going to give Lays some additional leverage in
the market. But Bingo is not sleeping either, if you have noticed the pack of Bingo, it
says "Baked, Not Fried” to remind the consumer that no oil is used.
APPENDIX
Questionnaire –
Name: _______________________
Age: ________
Signature: ___________________
General Instructions:
a) Yes
b) No
a) Yes
b) No
b) Friends/ Family
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c) Saw it in store
d) Other
a) Yes
b) No
a) Lays
b) Kurkure
c) Uncle Chips
d) Bingo
e) Haldiram Nmakeens
a) Lays
b) Kurkure
c) Uncle chips
d) Haldiram Namkeens
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f) Mad Angles
g) Tedhe Medhe
h) Livewires
a) Once a week
c) 2 to 3 times a month
a) Below Rs. 50
b) Rs. 50-100
a) Taste
b) Variety
c) Quality
d) Price
e) Quantity
f) Packaging
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BIBLIOGRAPHY
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