Bingo!

The launch of Bingo! in March 2007 marked ITC's foray into the fast growing branded snack
foods segment. Bingo’s portfolio includes an array of products in both Potato Chips & Finger
Snacks segment.Bingo! is positioned as a youthful and innovative snack, offering the consumers
a choice of flavours that are fast becoming popular.The Potato Chips offerings comprise the ever-
popular Salted, Masala and Tomato flavours, as well as some innovative variants inspired by the
snacking habits of different parts of the country like Chatkila Nimbu Achaar. Bingo! –
International Cream & Onion is the brand’s latest addition to its existing unique and exciting
range. Keeping in sync with the Bingo! philosophy, this variant brings with it a unique combination
of cheese, cream and spring onions, giving it a truly international flavour.

The Finger Snacks segment, the innovative 'khakra inspired' Mad Angles has become an instant
hit among consumers and is available in 3 flavours - Tomato Mischief, Chilli Dhamaka and
Achaari Masti.Finger Snack ‘Hatke Jhatke’, appropriately shaped like a wave, takes Bingo!’s
philosophy of ‘combinations’ forward with two exciting flavours - Funky Masala & Tomato Twist.

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Parle

June 27 Parle Products, which recently launched ‘Musst’ chips and sticks in Maharashtra, hopes
to corner a 5-7 per cent share of the branded snacks market in the first year of operation. It plans
to go national with its snacks within six months.

Parle’s launch is in competition to Pepsi’s ‘Lays’ and ‘Kurkure’ and ITC’s ‘Bingo.’

Organised retail of chips and sticks is estimated at Rs 2,500-3,000 crore. And Parle is looking at a
5-7 per cent share (in value terms) in the first year, says Mr Pravin Kulkarnii, General Manager
(Marketing), Parle Products.

Pepsi’s Frito Lays division is a clear leader in the snacks segment, with a 75-80 per cent share in
both volume and value terms. Parle will also have to contend with ITC, which entered the snacks
category recently. So, how does Parle propose to tackle competition?

“We are giving more volume for the same price compared to competition. While we give about
75 grams for a Rs 10 pack of sticks, competition offers about 55 grams. In chips, our Rs 10 pack
gives 60 grams, compared to 35 grams from competition,” says Mr Kulkarnii. “We are also
looking at new categories and other innovations,” he adds.

In July, the company plans to enter the markets of Gujarat and Madhya Pradesh. A national
rollout of its chips and sticks is planned within six months — starting with metros and mini-
metros. Parle also has plans to take its snacks abroad. “We are talking to a few players in Africa.
But it is still in the nascent stage,” he said.

(The company’s biscuits and confectionery are available globally in the markets of US, Gulf,
West Asia, Korea, Africa and Australia.)

Parle has totally invested about Rs 20 crore on Musst Chips and Stix, which are currently being
manufactured at the company’s own facility in Nasik.

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Parle Musst Stix is available in four flavours — Masala Munch, Sweet Chilly, Chatpata Chat and
Saambar, priced at Rs 5 for a 35 g pack and Rs 10 for a 75 g pack. Parle Musst Chips is available
in Aloo Chat, Sweet and Spicy Chutney, Classic Salted and Red Chilly Achar flavours, priced at
Rs 5 for 25 g and Rs 10 for 60 g.

The biscuits and confectionery maker already has a presence in the snacks category with Musst
Bite (flavoured cheeselings). But the category hasn’t really taken off in the country, says Mr
Kulkarnii. “India is not really ready for a product like cheeslings. It hasn’t yet developed a taste
for it. As a category, it is still small in the country,” he said.

But Mr Kulkarnii hopes Parle can make it work with chips and sticks, although he admits
competition will be fierce. “For instance, Lays has built brand equity for almost 10-15 years. It
will be tough. And there is also competition from regional players.”

Challenge

As young and vibrant establishment, we are instrumental in offering a mouth watering and
qualitative range of potato wafers, plain potato chips, crispy potato wafers, Indian potato chips
like kurkure and chips. Our food items are offered in several flavors that include Green Chatni
Kurkure, Magic Masala Kurkure, Red Chatni Kurkure, Tango Tomato Kurkure, Cream Onion
Chips, Magic Masala Chips, Plain Salted Chips, Pudina Punch Chips and Tango Tomato Chips.

Our range is prepared by using top grade quality and carefully selected potatoes, palm oil, spices,
rice, corn and other ingredients, under hygienic conditions. Our range is packed and sealed in
food grade packaging which can be printed with different brand names, as desired by our clients.
All such factors have made us a reputed name in the domestic market and made us cater to the
markets of M.P, U.P, Rajasthan, Gujarat, New Delhi, Assam, Haryana, West Bengal and others

Mr Gupte is interested in developing marketing strategy for his brand of chips. He has collected
some information as given above about the present brands. He has asked his junior Mr Vivek to
find out some of the common aspects present in the marketing of chips of all the brands by like
Bingo, Uncle chips, Lays and now Musst Chips. He wants cull out marketing lessons from these
campaigns which can be used for his brand of chips. Specifically he wants to find out answers to
the following questions:

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What should be the brand name?
What should be the nature of brand promotions?
How much should be spent on sales promotions?
How to differentiate the brand from others in the industry?
What customer looks for when buying wafers?
What is the most critical aspect involved in marketing of a product like wafers?

He wants to approach the strategy making not top down and does not want to impose his
perspective to prevail upon the strategy? He understands that strategy must reflect customer
reality? What role does a pack of chips play in customer’s life? Even if it comes to copying the
strategy followed by others in the market he wants to know whys of different aspects of
marketing?