LAYS VS BINGO

Marketing Management-II Assignment

Introduction to Indian Wafer Snacks

Segment

The size of the Wafer Snacks Segment in India is estimated to

be 4,500 5000 crores
The market is growing at 30 percent annually

The branded players account for 2,000 crores of the market

size

Major branded players include Frito-Lay, Bingo, Haldiram,

Balaji, Parle

Contd.

Potato Chips and Potato based items account for 85 percent of

the total snacks segment.

As per Nielsens Retail Audit, Frito-Lay commands 45%

market share, followed by Haldiram at 27% and Bingo at 16%

The rest is divided between new players such as Smart Chips,

regional players such as Balaji and handful of unorganized
players
(source:moneycontrol.com)

The organized snacks category is subdivided into the

Traditional segment (Bhujia,Chana etc) dominated by
Haldiram.

The second category is the Western segment(potato chips,cheese

balls,puffs etc) and the Finger snacks segment which is an
adaptation of traditional snacks to the western format. These
are dominated by the Frito Lay group.

Lays

Lays, the worlds largest and favourite snack food brand, has
steadily established itself as an indispensable part of Indias
snacking culture since its launch in 1995.

Being first in the market through its acquisition of Uncle

Chips, Frito-lay already has a well-established network of
distributors and retailers pan-India.

Lays has a reach of more than 1m retail outlets countrywide

covering 100 towns.

Bingo

Launched on 14th March 2007

The range includes multiple flavours of Potato Chips & Finger

Snacks.

The brand is associated with youth, fun and excitement. It

fulfils the consumers need for variety and novelty in snacks.

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

About Bingo

PRICING STRATEGY

Lays

The pricing strategy for Lays is consistent with other competing

players.

As this market is driven by high-impulsive buyers of snack

foods, there is very little dichotomy in the pricing strategies of
all major players.

Lays and Kurkure, the two popular choices, come in different

SKUs priced at Rs.5, Rs, 10 and Rs. 20, similar to Bingo and
Haldiram.

Bingo

The main objective for ITC was to compete effectively with

players who were already there. Hence, it launched a direct
frontal attack by introducing similar priced SKUs.

ITC already enjoyed cost advantage over competitors through

its e-choupal initiative. This also facilitated timely supply of
raw materials.

ITCs printing and packaging business also lead to high-quality,

cost-effective and innovative packaging.

PROMOTIONAL STRATEGY

Lays

Realizing the direct threat posed by Bingo to its market share,

Fritolay revamped its branding strategy for all leading brands.

Indianized versions of Lays were also launched after Bingos

success with Indian flavors.

Chala Change Ka Chakkar the largest ever brand promotional

strategy undertaken by Fritolay aimed at bringing all its flagship
brands under one roof. This massive umbrella campaign would
allow chosen customers to live the life of a Bollywood Indian
celebrity for a day.

Advertisement strategies of Lays

In 2008, Lays launched the Fight for Your Flavour allowing

consumers to vote for the flavour of their choice.

The flavour with the maximum votes would continue in the

market.

The advertisements were by the Lays brand ambassadors Saif

Ali Khan and M.S. Dhoni with each celebrity rooting for the
flavour of their choice.

Contd.

Flavours of Lays chips have seen changes in India and across

the world from popularizing the Classic salted variety and
foreign flavours like BBQ and American Cream & Onion in
India.

Lays has also introduced Indian flavours such as Curry in

countries like Canada.

Commonly available flavours

Commonly available flavours

Baked Chips

Recent Advertisements by Lays

Frito-Lay has announced plans to go local, "Lay's Local

campaign focuses on the 80 farms (scattered across 27 states)
that grow the potatoes used to make the chips.

Knowing where food is made and grown is important to

consumers. Sharing with consumers how regional we are is
relevant and compelling.

A Chip Tracker on Lays.com allows consumers to find out where

a bag of chips is made.

Bingo

Bingos launch was strategically timed around the World Cup to

cash in on the tremendous popularity of snacks among cricket
lovers in the country.

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

While its competitor Fritolay focuses on celebrity endorsements,

Bingo chose not to have an ambassador!

Contd.

As the product is aimed at youth, digital media was heavily

used. For instance, the Bingo National Gaming Championship
was held across 4 cities with more than 25,000 participants.

Bingeonbingo.com and Mad Angles Twister Application

(Facebook) were other initiatives on online media.

This sudden media blitzkrieg of ads left a mark in the

audiences minds . In certain areas, Bingos market share
touched 50%

Contd.

Further, the company distributed 4 lakh racks across all

retailers to display the brand at all Points-of-sale.

Within 6 months, Bingo was available across 2,50,000

retailers across the country.

A crucial alliance with Future group which lead to all

future group retail outlets like Big Bazaar, Food Bazaar
stocking only ITCs Bingo.

Bingo Strategy

The success of Bingos marketing strategy can be attributed to:1. T.V. Ad Campaign
2. Assortment of flavours and eye catching packaging
3. High availability at big and small retailers across the
country.
4. Pricing Strategy
Before Launch, it developed a cross-sectional team of 8 individuals
who travelled across 14 cities to identify the snacking habits of the
Indian Consumer. The team found out that local-tasty snacks like
khakra, vada pav, samosas etc were popular choices among the
Indian audience. Based on this info, it decided to develop flavors
with an Indian taste.

Bingo! Yumitos - 'Take a Yumitos Break'

Bingo! Yumitos is very tempting and yummy account the full

bodied flavours.

These flavours range from traditional favourites like Salted to

innovative ones such as Red Chilli. There are in total 7 exciting
flavours.

Bingo! Mad Angles - "Har Angle se

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

Bingo! Tedhe Medhe -"Har Stick mein alag

twist."

Bingo! Tedhe Medhe is the popular spindle shaped format from

Bingo! that is a delicious blend of handpicked spices with an
aroma that makes one crave for more.

Bingo! Tangles - "Khaoge to Khilaoge..."

Each piece of this innovative crunchy snack is made out of

strands loaded with lip smacking masala or tantalizing tomato
or simply salted flavours.

COMPARISON OF MARGINS

ITC BINGO v/s FRITOLAYS

Basis

ITC Bingo

Frito Lay Lays

Margin distributor

3%

5.5%

Margin retailer

12%

10%

Margin wholesaler

12%

10%

Customer survey- Snapshot

WEB-BASED REFERENCES
1)
2)
3)
4)
5)
6)
7)

http://www.imagesretail.com/support_jan_suplychain.htm
http://www.televisionpoint.com/news2009/newsfullstory.ph
p?id=1244814371
http://www.afaqs.com/perl/news/story.html?sid=20324
http://www.moneycontrol.com/news/business/frito-lay-losessnack-mkt-share-to-itcs-bingo_300325.html
http://www.bizdewz.com/parle-monaco-smart-chips-vs-laysor-aliva/
http://www.afaqs.com/perl/news/story.html?sid=25651
http://economictimes.indiatimes.com/news/news-byindustry/cons-products/food/Balaji-Wafers-a-name-toreckon-with-in-Gujarat-snacksmarket/articleshow/5367599.cms

THANK YOU