DECLARATION

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

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

2) To study the trends in snacks industry.

3) To study the company profile of ITC Ltd the makers of BINGO.

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

5) To find conclusions to the project.

1.2: INDUSTRY PROFILE OF INDIAN FOOD

4
 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 favourable 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)

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  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, 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, 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%,

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%.

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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,

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.

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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.

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.

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

operates in Delhi, Nagpur and Kolkata.

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

reflection of consumer preference moving towards packaged goods.

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 &

Maharashtra, and Akash Namkeens & Prakash Namkeens in Madhya Pradesh.

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

product has been priced at a premium and is marketed to a micro-niche.

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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

sources estimate the market at far higher tonnage and value.

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

broken. They are comparatively costlier than other common snacks.

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-

automatic and only packaging is done using sophisticated equipment.

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

no particular time for snacks, normally they are consumed at teatime.

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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

equipment and packaging machinery.

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C) SWOT ANALYSIS OF INDIAN SNACKS INDUSTRY

STRENGTHS WEAKNESSES

 Abundant availability of raw  Low availability of adequate infrastructural

material. facilities.
 Vast network of manufacturing  Lack of adequate quality control & testing
facilities all over the country. methods as per international standards.
 Vast domestic market  Inefficient supply chain due to a large
 Urbanisation number of intermediaries.
 High requirement of working capital.
THREATS OPPORTUNITIES

 Affordability and cultural  Rising income levels and changing

preferences of fresh food. consumption patterns
 High inventory carrying cost.  Favourable demographic profile and
 High taxation. changing lifestyles
 High packaging cost.  Integration of development in contemporary
 Competition between national and technologies such as electronics, material
regional players. science, bio-technology etc. offer vast scope
for rapid improvement and progress
 Opening of global markets

1.3: NEW COMPETITORS

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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,

Australia and Middle-East.

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

tradition of celebrating joyous occasions with distribution of sweets possible, anywhere,

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-

15
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

of tradition and world-class technology. The frying of products is done on continuous

frying machines controlled through Programmable Logic Controllers (PLCs).

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

Murki etc. at ambient conditions to EU by the application of MAP (Modified Atmosphere

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

class testing facilities for Colorimetric, Chromatographic, Chemical, Bacteriological and

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-

16
free range of sweets for exports. The R&D division is equipped with the world's best

technologies for texture analyses and shelf life estimation.

B) BALAJI WAFERS PVT. LTD.

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

would be at Pune and Kolkata.

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

wafer market and 70% of namkeens Market in Gujarat.

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

fried chickpeas with sautéed spices.

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

available in packs of 40 gms, 75 gms, 100 gms, and 200 gms.

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

states in near future as part of ongoing expansion plans.

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.

C) NATRAJ COLD STORAGE AND FOODS

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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

more than 20% every year.

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

is available in 2 SKUs of Rs 5 & Rs 10 and 4 flavours such as Tingling 'Pepper Attack' to

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

consumers appreciating our product.

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

who eat branded potato chips.

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

Cinemax and Fame Adlabs.

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

doing tactical activities to maintain the buzz.

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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

Kolkata's most venerated landmarks.

The Company's ownership progressively Indianised, and the name of the Company was

changed to ITC Limited in 1974.

In recognition of the Company's multi-business portfolio encompassing a wide range of

businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging,

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

multiple internal competencies to create a new driver of business growth. It began in

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

rapidly growing market share and a solid market standing.

2.2: 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.

23
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers,

Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology,

Branded Apparel, Personal Care, Stationery, and Safety Matches and other FMCG (Fast

Moving Consumer Goods) 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.

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."

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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 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).

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.

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ITC employs over 21,000 people at more than 60 locations across India. The Company

continuously endeavours to enhance its wealth generating capabilities in a globalizing

environment to consistently reward more than 388000 shareholders, fulfil 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."

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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

My research is a blend of both descriptive and quantitative research. Descriptive research

includes surveys and fact finding inquirer of different kinds. The major purpose of

descriptive research is descriptive of the state of affairs as it exists at present. Quantitative

research is based on the measurement of quantity or amount. It is applicable to

phenomenon that can be explained in terms of quantity.

Both Primary and secondary data have been used to collect data for the study.

Three general ways of obtaining primary data were:-

 Survey of Customers through questionnaire method. A questionnaire was prepared to

get a view on the consumer perception about ITC Bingo.

 Interviews with the distributors.

The secondary data sources were:-

 Through various web-sites on Internet where relevant data could be extracted.

 Trade Magazines and News Articles

Sample Size:

The Sample size for the questionnaire survey will be 50 Consumers.

Data Analysis:

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The results of the survey are tabulated and presented in form of bars and pie charts.

Finally the results are analyzed and used to draw conclusions.

Scope of the sample:

The scope of the survey was limited to Delhi and Faridabad.

Questionnaire design:

 The questionnaire is designed in such a manner so that it is easy to understand and

answer.

 The questionnaire will consist of 10 questions, with options clearly stated.

Respondents that were targeted:

 Students

 House wives

 Unmarried working men and women

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3.3: 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 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

about the product.

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Third objective was to know how the respondents who were aware about Bingo got to

know about it.

Of these 37 had seen the TV commercial of Bingo, 2 had heard it from their friends while

8 of them had seen it for the first time in stores.

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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

35
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

before switching to Bingo.

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.

36
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

37
format of Bingo are shared by Tomato Potato Chips, Chatkila Nimbu Achar potato chips

and Masala Chips.

Eighth objective is to determine the consumption of Bingo.

6 respondents had Bingo more than once in a week while 3 had once a week and 3 had it

two to three times a month.

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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.

39
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

chart shows their responses.

From the above pie charts we can see that people like the taste of Bingo the most. It is

followed by the quality of chips and then the quantity.

40
3.6: CONCLUSION

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.

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

reasons for its success -

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

excitement in existing snacks.

41
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

by khakras — and other snacks.

3) Targeting:

The Company decided that youngsters in the age group of 16-30 are the most

experimental and hence they would be the primary target audience.

4) Marketing & Advertising:

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

advertised the product. It also created a website www.bingeonbingo.com with offers,

online games, downloads and even mobile games. According to industry estimates, ITC

spent close to Rs 100 crore on marketing.

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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

brand lost its focus.

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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:

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?

a) Yes

b) No

Q2. Have you heard of ITC’s BINGO?

a) Yes

b) No

Q3. How did you first discover BINGO?

a) Advertising- TV, Newspaper, Radio

b) Friends/ Family

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 c) Saw it in store

d) Other

Q4. Have you ever tried BINGO?

a) Yes

b) No

Q5. Which of the following brands would you prefer?

a) Lays

b) Kurkure

c) Uncle Chips

d) Bingo

e) Haldiram Nmakeens

Q6. Before switching on to BINGO, which snack did you prefer?

a) Lays

b) Kurkure

c) Uncle chips

d) Haldiram Namkeens

Q7. Which flavours do you like the most?

a) Masala Potato Chip

b) Salted Potato Chip

c) Tomato Potato Chip

d) Chatkila Nimbu Achar Potato Chip

e) Tandoori Paneer Tikka Potato Chip

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 f) Mad Angles

g) Tedhe Medhe

h) Livewires

Q8. How often do you have BINGO?

a) Once a week

b) More than once a week

c) 2 to 3 times a month

Q9. How much do you spend weekly on snacks?

a) Below Rs. 50

b) Rs. 50-100

c) More than Rs. 100

Q10. What do you like about BINGO?

a) Taste

b) Variety

c) Quality

d) Price

e) Quantity

f) Packaging

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 BIBLIOGRAPHY

1) SME rating agency of India ltd.

2) www.allbusiness.com
3) http://www.financialexpress.com/ne ws/Just-munch-it/271873/0
4) www.itcportal.com
5) http://www.fnbnews.com/specials/SnackFoods2006.asp

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