Customer Satisfaction Towards Bingo

A PROJECT REPORT ON CUSTOMER SATISFACTION TOWARDS BINGO SESSION: 2009-2010 Submitted To: MR VISHAL SHARMA

Submitted By: DURGESH KR.

GIRI FACULTY OF MANAGEMENT

BBA VI SEM

DEPARTMENT

ROLL NO.908017

Durgesh Kumar Giri, BBA IInd Year

CERTIFICATE

Durgesh Kumar Giri, BBA IInd Year

PREFACE According to a study by McKinsey & Co, the Indian food market will grow two fold by 2025 with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a big way to this growth. Quoting the study by McKinsey & Co, a report by the US Department of Agriculture stated "The market size for the food consumption category in India is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per cent." The Indian snacks market is worth around US$ 3 billion, with the organized segment taking half the market share, and has an annual growth rate of 15-20 per cent. The unorganized snacks market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year. There are approximately 1,000 types of snacks and another 300 types of savouries being sold in the Indian market today. Indians in the western regions eat the maximum amount of snacks, followed by the people in northern

region.

In this project I have discussed about customer satisfaction towards Bingo.

Durgesh Kumar Giri, BBA IInd Year

ACKNOWLEDGEMENT

I would like to take this opportunity to express my deep gratitude to all those who, directly or indirectly made this project possible. I have got considerable help and support in making this project report a reality from many people. I would like to thank Mr. Vishal Sharma

whose endeavor for perfection, under

fatigable zeal, innovation and dynamism contributed in a big way in completing this project. This work is the reflection of his thought, ideas, concept and above all his modest effort.

Durgesh Kumar Giri BBA – IV Sem

Durgesh Kumar Giri, BBA IInd Year

• INTRODUCTION.  Key Players of the industry  Two wheelers market size and growth  Demand drivers Market Characteristic Segmental Market Share  Supply • TRENDS IN TWO-WHEELERS INDUSTRY. • FACTOR WHICH ARE CHANGING TRENDS IN BAREILLY. • OBJECTIVES • RESEARCH METHADOLGY  Questionnaire Method  Data Collection • SAMPLE SIZE PLANNING. • QUESTIONAAIRE. • CONCLUSION • FINDINGS • LIMITATIONS

Durgesh Kumar Giri, BBA IInd Year

• BIBLIOGRAPHY

Durgesh Kumar Giri, BBA IInd Year

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 study the customer satisfaction towards Bingo.

Durgesh Kumar Giri, BBA IInd Year

INTRODUCTION

Durgesh Kumar Giri, BBA IInd Year

The Fast Moving Consumer Goods (FMCG) sector is the fourth largest sector in the economy with a total market size in excess of Rs 60,000 crore. This industry essentially comprises Consumer Non Durable (CND) products and caters to the everyday need of the population. Product Characteristics Products belonging to the FMCG segment generally have the following characteristics: •

They are used at least once a month

•

They are used directly by the end-consumer

•

They are non-durable

•

They are sold in packaged form

•

They are branded

Industry Segments The main segments of the FMCG sector are: •

Personal Care: oral care; hair care; skin care; personal wash (soaps); cosmetics and toiletries; deodorants; perfumes; paper products (tissues, diapers, sanitary); shoe care.

Major companies active in this segment include Hindustan Lever; Godrej Soaps, Colgate-Palmolive, Marico, Dabur and Procter & Gamble. •

Household Care: fabric wash (laundry soaps and synthetic detergents); household cleaners (dish/utensil cleaners, floor cleaners, toilet cleaners, air fresheners, insecticides and mosquito repellants, metal polish and furniture polish). Major companies active in this segment include Hindustan Lever, Nirma and Reckitt & Colman.

Durgesh Kumar Giri, BBA IInd Year

•

Branded and Packaged Food and Beverages: health beverages; soft drinks; staples/cereals; bakery products (biscuits, bread, cakes); snack food; chocolates; ice cream; tea; coffee; processed fruits, vegetables and meat; dairy products; bottled water; branded flour; branded rice; branded sugar; juices etc. Major companies active in this segment include Hindustan Lever, Nestle, Cadbury and Dabur.

•

Spirits and Tobacc Major companies active in this segment include ITC, Godfrey Philips, UB and Shaw Wallace.

An exact product-wise sales break up for each of the items is difficult. 1) The Indian FMCG sector is the fourth largest sector in the economy with a total market size in excess of US$ 13.1 billion. 2) It has a strong MNC presence and is characterised by a well-established distribution network, intense competition between the organised and unorganised segments and low operational cost. 3) Availability of key raw materials, cheaper labour costs and presence across the entire value chain gives India a competitive advantage. 4) The FMCG market is set to treble from US$ 11.6 billion in 2003to US$ 33.4 billion in 2015. Penetration level as well as per capita consumption in most product categories like jams, toothpaste, skincare, hair wash etc in India is low indicating the untapped market Durgesh Kumar Giri, BBA IInd Year

potential. 5) Burgeoning Indian population, particularly the middle class and the rural segments, presents an opportunity to makers of branded products to convert consumers to branded products. 6) Growth is also likely to come from consumer 'upgrading' in the matured product categories. With 200 million people expected to shift to processed and packaged food by 2010. 7) India needs around US$ 28 billion of investment in the food-processing industry.

8)

Major Global Players – HUL, Procter and Gamble, Colgate – Palmolive

9)

Major Players in India – HUL, ITC, Procter & Gamble, Dabur India.

Durgesh Kumar Giri, BBA IInd Year

OVERVIEW According to a study by McKinsey & Co, the Indian food market will grow two fold by 2025 with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a big way to this growth. Quoting the study by McKinsey & Co, a report by the US Department of Agriculture stated "The market size for the food consumption category in India is expected to grow from US$ 155 billion in 2005 to US$ 344 billion in 2025 at a compound annual growth rate of 4.1 per cent." The Indian snacks market is worth around US$ 3 billion, with the organized segment taking half the market share, and has an annual growth rate of 15-20 per cent. The unorganized snacks market is worth US$ 1.56 billion, with a growth rate of 7-8 per cent per year. There are approximately 1,000 types of snacks and another 300 types of savouries being sold in the Indian market today. Indians in the western regions eat the maximum amount of snacks, followed by the people in northern

region.

"Consumers are willing to pay a premium for both value-added private and branded products, creating immense opportunities for manufacturers and retailers,' the report stated. Potato chips and potato-based items are the most popular products with more than 85 per cent share of the salty snack market, the report said. In the organized potato chips market, some of the leading players are Pepsi, Haldiram's, ITC, Britannia, Bikano, Balaji, Marico, Dabur etc.

Durgesh Kumar Giri, BBA IInd Year

INTRODUCTION

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GENERAL INTRODUCTION Basically we intend to find out the most popular flavor 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 unorganized. Here we will also look into the market trends in snacks over the years. The project purports to decipher the satisfaction level as well as the preferences of consumers pertaining to the various flavors of BINGO- a new range of savory snacks launched by ITC. We aim to analyze the success, marketability and future growth prospects of BINGO. We also intend to study the spending habits and motivation of consumers for buying snacks. For this a survey was conducted in Delhi where respondents were asked to fill a questionnaire. The data was collected and analyzed 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.

Durgesh Kumar Giri, BBA IInd Year

7. 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

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•

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

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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

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

PROFILE OF THE ORGANIZATION: ITC Ltd.

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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

Durgesh Kumar Giri, BBA IInd Year

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. Durgesh Kumar Giri, BBA IInd Year

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 overarching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value. For the nation, For the Shareholder

Durgesh Kumar Giri, BBA IInd Year

RESEARCH METHODOLOGY

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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 flavors 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 flavor 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 flavor of Bingo is most preferred.  To analyze 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.

Durgesh Kumar Giri, BBA IInd Year

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.

Durgesh Kumar Giri, BBA IInd Year

DATA ANALYSIS 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 chart given below is clear on the percentage of people who like to eat snacks.

Ques 1:- Do you eat snacks?

Comments: -The primary and the secondary form of data collection, says that nearly 100 percent of the people love to eat snacks. The snacks are the compliment for the Hot and Cold Beverages Company. People always consume it with Tea, Coffee or with Cold Drinks.

Durgesh Kumar Giri, BBA IInd Year

Ques 2:- Have you Heard of ITC Bingo?

Comments: -As per the survey done, the 90% people know about the ITC Bingo. The Bingo has a good image over the students (Less than 25 years) and male (25-35years) but the females (25-35 years) are not much aware about the product. The Kurkure is more popular in Female segment. There is a need to advertise in such a manner, so that the product can target females too.

Durgesh Kumar Giri, BBA IInd Year

Ques3:- Have you ever Tried Bingo?

Comments: -The Bingo is almost consumed by almost 80 percent of the people. The student inspired by the advertisement and buy to try the new flavor of bingo where are the Male consumed it with the beverage in party or with friends. The important segment of Females (25 – 35 years) are less aware about and are happy with their existing product, so they less tried it.  Our second objective is concerned with finding out which flavor of Bingo is most preferred.

Durgesh Kumar Giri, BBA IInd Year

Ques 4:- Which flavor do you like most?

Comments: -The most popular flavor of Bingo is Tedhe Medhe and Mad Angles in the student group. The Males prefer Tomato Potato Chips and the Females prefers Masala Potato chips and Nimbu achar flavor. The reason of Bingo popularity is due to different flavors.

Durgesh Kumar Giri, BBA IInd Year

Ques 5:- How many times do you consume BINGO?

Comments: -Although ITC Bingo is very popular but the everyday consumption of BINGO product is very less in compare to other snacks. In the question all the 3 segments (Students, Males, Females) are not consuming it on the daily basis, Most people consume it on the once in a week or less basis.

Durgesh Kumar Giri, BBA IInd Year

Ques 6:-How much do you weekly spend on snacks?

Comments: -This is the most important and interesting area of the survey, The student group who consume Bingo only are spending less than 50 Rs. Weekly on snacks where as the males and females are spend 50-100 Rs per week on their snacks consumption. The married couple are spending more than 100 Rs on snacks, but they also prefer the other brands too (like Kurkure, Lays etc)  Thirdobjective was to find out how much people are satisfied with Bingo. Following pie chart shows the satisfaction level of people

Durgesh Kumar Giri, BBA IInd Year

Ques 7:-How much satisfied are you with Bingo?

Comments: -The Males are very satisfied with the Bingo product as it is the ITC product. Whereas flavor conscious students are satisfied or unsatisfied with the Bingo product and the health conscious Females are very unsatisfied with the bingo product.  The Fourth objective was to analyze the reasons for the popularity of the most preferred flavor. For this the respondents were asked what do they like most about Bingo. Following pie chart shows their responses.

Durgesh Kumar Giri, BBA IInd Year

Ques 8:-What do you like about Bingo?

Comments: -The majority of males and females like the taste of the bingo product but the student segment like BINGO because it offers a lot of verity and flavor. As it is the ITC product so, it has a good image in the public eyes in terms of quality.

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Ques 9:-Is the price of Bingo is satisfactory?

Comments: -Nearly all the snacks available in the market is about the same price so all the 3 segments are satisfy with the price, where as few people wants that the price must be according to flavor. The price must be competitive so the people can switch on with the Bingo product.

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Ques 10:-Compare to other snacks (such as Kurkure, Lays, Haldiram etc) that are available, would you say that Bingo is?

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Ques 11:-How likely are you to recommend BINGO to others?

Comments: -The majority of the people are in favor to recommend the bingo product. The main advantage of bingo product is it available in a lot of Varity.

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Ques 12:-How did you first discover BINGO?

Comments: -The bingo advertisements make it popular in all segment and few people first tried bingo when offered by friends/family member with beverages.

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Ques 13:-Before switching on to BINGO, which snack did you prefer?

Comments: -As the price of bingo is not very much competitive so the people are still consuming the other snacks like kurkure and lays, even haldiram Namkeens are also preferred by consumers to serve the hot and cold beverages.

Durgesh Kumar Giri, BBA IInd Year

Ques 14:-What do you considered while buying Bingo?

Comments: -The student and the Males segment buy the snacks on the basis of their flavor whereas females (health conscious segment) are buying it because of the quality. The availability and brand ambassador are not very much preferred by any of the segment.

Durgesh Kumar Giri, BBA IInd Year

FINDINGS

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FINDING

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.

CONCLUSIONS Durgesh Kumar Giri, BBA IInd Year

ITC is a conglomerate with diversified product lines. Approximately 100 years old company has a different impact on its consumers. This company enjoys its brand image in the market while introducing new products. ITC has extended its production units across the country.

ITC pays equal attention to all its products. Keep a sincere check on Bingo. This is the reason why Bingo provides good quality products at affordable prices. Though this company has many rivals in the market, yet it has good market share. It also gives tough competition to its rival companies. Its promotion techniques have started taking participation in the race of advertisements. Proper heed is given to all the factors of marketing mix.

RECOMMENDATION Durgesh Kumar Giri, BBA IInd Year

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. ITC should take more care for Bingo. ITC should give more advertisement in TV and New paper. Company should give some free offers to customers.

Durgesh Kumar Giri, BBA IInd Year

APPENDIX

Questionnaire on Durgesh Kumar Giri, BBA IInd Year

Name: _______________________ Contact No. _________________

Age : ___________ (DD/MM/YY) Email : ______________________

Q1. 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 Q2. How often do you have BINGO? Once a week or more often

Everyday

2 to 3 times a month

2 or more per day

Q3. How much do you spend weekly on snacks? Below Rs. 50

Rs. 50-100

More than Rs. 100

Q4. Overall, how much satisfied are you with BINGO? Very satisfied

Somewhat satisfied

Unsatisfied

Q5. What do you like about BINGO? Taste

Variety

Quality

Price

Quantity

Packaging

Q6. Is the price of bingo is satisfactory? Yes

No

If No (Please specify price, according to you) ___________________________ Q7. Compared to other snacks (such as Kurkure, Lays, Haldiram etc.) that are available, would you say that BINGO is? Much better

Somewhat Better

Durgesh Kumar Giri, BBA IInd Year

About the same

Somewhat Worse

Much Worse Q8. 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 Q9. How did you first discover BINGO? Advertising- T.V, Newspaper, Radio

Friends/ Family

Saw it in store

Other

Q10. Before switching on to BINGO, which snack did you prefer? Lays

Kurkure

Uncle chips

Haldiram Namkeens

Q11. What do you considered while buying your brand? Flavour

Product quality

Availability

Brand ambassador

Other (please specify) _____________________________________________

BIBLOGRAPHY Durgesh Kumar Giri, BBA IInd Year

SME rating agency of India ltd. www.allbusiness.com http://www.financialexpress.com www.itcportal.com www.researchmarketer.com

Durgesh Kumar Giri, BBA IInd Year

Overview of Firto-Lay (PepsiCo) Frito-Lay North America (FLNA) is a division of PepsiCo, Inc. which manufactures markets and sells a variety of corn chips, potato chips and other snack foods. FLNA is headquartered in Plano, Texas, a suburb of Dallas. The company's current form is the result of a 1965 merger of Frito-Lay, Inc. and the Pepsi-Cola Company, which resulted in the formation of PepsiCo, Inc. Products sold under the Frito-Lay name are now recorded by two PepsiCo divisions: Frito-Lay North America (North American sales) and PepsiCo International (international sales) On June 8, 1965, the merger of Frito-Lay and Pepsi-Cola Company. Today, PepsiCo is organized into four divisions:

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1) Frito-Lay North America. 2) PepsiCo Beverages North America, 3) PepsiCo International and 4) Quaker Foods North America.

Although products sold in the United States under the Frito-Lay brand name are also sold internationally, international sales are reported by the PepsiCo International division.

Overview of Bingo (ITC) The launch of Bingo represents ITC Foods’ fifth major line of business after the highly successful staples, biscuits, ready-to-eat and confectionery products. Introduced in the market in March 2007.

MARKETING WARFARE B/W FIRTOLAY (PEPSICO) AND BINGO (ITC)

Durgesh Kumar Giri, BBA IInd Year

Currently, the size of the snack food market is estimated to be Rs 4,500-5,000 crore of which branded players account for Rs 2,000 crore. The snack food market is growing at 30 per cent annually and foods and beverage giant Pepsico’s Frito Lays is the dominant market leader with a market share in excess of 80 per cent. Summary of PepsiCo First Quarter 2007 Results % Growth Rate Volume (Servings) Revenue

4 9

Division Operating Profit Net Income Earnings Per Share

9 16 17

Bingo was launched in India on Mar 14, 2007 during the world cup time. Main aim of ITC Bingo advertisements was to create buzz among customers. Most of the advertisements of Bingo were considered vague and stupid but I feel that was the best form of communication any marketing company has ever done. Within a month of launch of initial advertisements, 70% of the viewers could recall the brand and that was their main aim. Brand recall along with 16 flavors in three SKUs helped ITC to capture 16% of market share in just 18 months. The initial offerings from Bingo include an array of products in both Potato Chips & Finger Snacks segment. The Potato Chips offerings comprise of four innovative variants inspired by the snacking habits of different parts of the country as well as Masala, Salted and Tomato flavours. Additionally a south-inspired dairy option has also been introduced under the potato chips offering. The offerings under the Finger Snacks segment are equally unique presentations with innovative finger foods like the pakoda inspired Live Wires, Khakra inspired Mad Angles and the specially developed time pass snack in the form of Tedhe Medhe. Each offering under this segment is available in two variants making it a total of 6 products in the Finger Snacks portfolio.

Durgesh Kumar Giri, BBA IInd Year

FIRTOLAY (PEPSICO) AND BINGO (ITC) The segmentation was mainly done on basis of the age of the people. The primary target for Bingo is 18-30 year old people, who are willing to try out new flavours more easily than the small kids. Bingo is positioned as a youthful and innovative snack. In a survey done by ITC, it has been found that 70% of respondents liked Indian flavors like bhel, golgappas etc. Initial pricing of ITC bingo is directly with pricing of Rs 5,

frontal attack on Frito lays

10 and 20.

Now Frito Lays has launched small packs of Rs 3. Let us see whether ITC can leverage upon its huge distribution network covering panwaalas to small kiryana shops with a similar small pack of Rs 3. 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. Within six months of launch Bingo was available in more than 2, 50, 000 retailers across the country. ITC made a strategic alliance with Future group according to which all retail stores of Future group like Food Bazaar, Big Bazaar, and Kishore Biyani’s Fair Price etc will store only ITC Bingo. HORECA (hotels, restaurants and cafes), entire cigarette distribution network including pan shops. Retail tie-ups, regional flavours and distribution muscle, have helped ITC hit a bull’s eye with its snack Bingo. In less than 6 months, ITC's Bingo has managed to grab 16% market share and it hopes to touch 50% in a year Bingo site (www.bingeonbingo.com) is a very different site with information about Bingo and its flavors. Even initially Bingo sponsored many Bingo Remix nights in various clubs. ITC with bingo adopted a Market Challenger strategy and chose a combination of flank and

frontal attack against the market leader Frito Lay’s. Bingo Tick Tock Boing!’ mean? Y FM radio channel. It’s an interactive game, wherein before a buzzer gets sounded, if you say ‘Bingo Tick Tock Boing!” you win a pot of money! Play it, its loads of fun! This game has

Durgesh Kumar Giri, BBA IInd Year

attracted high participation (running into a few million) in Delhi and Mumbai and now we are running it in Bangalore. With the rise of ITC bingo in no time.

FIRTOLAY (PEPSICO) AND BINGO (ITC) Lays has revamped its branding strategy with new promotions featuring actress like Juhi Chawla, Kareena Kapoor etc. About 35 AC BEST buses in Mumbai and metro in Kolkata are now branded by Kurkure. Frito Lays again launched a new consumer promotion campaign, Chai Time Achievers campaign in which consumers could send their recipes using Kurkure. Lays has launched Indian flavors like Lay’s 1) Chat Street, 2) India’s Mint Mischief, 3) Wafer Style etc.

Promotional Wars The objective was to capture the consumers’ mind first and the market later. They also had a long term ambition to overtake FritoLay’s sales and be the market leader. For the short term, they wanted to gain at least 8 per cent market share nationally, create a buzz around the brand and create a youthful brand personality. The agency wanted to base the campaign on the three pillars of Product, Placement and Personality. After a few brainstorming sessions, the team realized that people in India still prefer traditional snacks, such as banana chips and biscuits. To counter that, they

Durgesh Kumar Giri, BBA IInd Year

decided to use the familiar tastes and come up with an irresistible combination of flavours. Strategic placement of the product was also an important factor, as the aim was to widen Bingo’s reach and impact. Bingo was available in more that 250,000 stores in the first six months of its launch. Brand awareness was also built by placing the Bingo racks in local grocery stores as well as supermarkets. In most cases, a TVC is the main source of awareness for a brand, while in Bingo’s case, it was the Bingo rack. Another thing that had to be taken into consideration was the fact that snacking is a mindless activity .They wanted to promote a brand that would be deliberately mad, spontaneous and mindless.

FIRTOLAY (PEPSICO) AND BINGO (ITC) The product launch was preceded by an online viral campaign, ‘Wait or Suffer’. The product was introduced with a television, print and outdoor campaign. The madness was also taken offline with mall activities in nine cities across India. Customer interest was retained with interactive games and product tasting sessions. This activity saw participation from 2,500 people and experienced close to 250,000 footfalls in the first four months. Various radio activities were done in Delhi, Mumbai and Bangalore to increase brand awareness. Bingo also ran a contest when Aerosmith was on their official tour to India. Contestants were supposed to record their favourite Aerosmith song in a local Indian language and submit their entries. Since it was a youth brand, digital media was used heavily for promotions. The Bingo National Gaming Championship was one such example. The event was held in four cities and saw participation from 25,000 contenders. Bingo Remix Nights were held in clubs across the country. A fun website, bingeonbingo.com was created to increase awareness about the brand. Durgesh Kumar Giri, BBA IInd Year

O&M claimed that the 360 degree campaign helped Bingo gain 12 per cent market share nationally, as opposed to their initial target of 8 percent. Bingo had 16 per cent market share in metros and a market share as high as 66 per cent in certain cities

To pump up volumes, FritoLay is in the process of rolling out an aggressive marketing campaign led by its star endorsers, Saif Ali Khan, MS Dhoni and

Juhi Chawla In order to add further zing to its product portfolio, in January 2008, the company launched Kurkure Xtreme, a limited edition variant in two flavors—Risky Chilli and Electric Nimbu (lime). This was perhaps a move to outdo competition from ITC’s snack brand Bingo, which was launched in March 2007, in Indianized flavors like Tandoori Paneer Tikka (spiced cottage cheese) and Chatkila Nimbu Achaar (tangy lime pickle). Bingo’s success in the market is backed by ITC’s strong distribution network, which allows it to stock its products in shops that previously did not sell snack food. Additionally, ITC Foods provides shopkeepers with plastic molded shelves that allow local vendors a convenient way to stock their product, and the company benefits by increased visibility for its brand. Taking a cue from its competition, Frito Lay India is focusing on unconventional retail points like cyber cafes and telephone booths, in order to increase brand visibility and product reach. To maintain top of the mind recall among its customers the brand has undertaken several unique communication initiatives. The most recent, for example, is called "Chala Change ka Chakkar," which is an umbrella campaign for Frito Lay India’s entire product portfolio (Lay’s, Kurkure, Cheetos, Uncle Chipps, and Lehar). This promotion will allow chosen consumers to live a day in the life of an Indian Bollywood celebrity (who are the brand endorsers) like Juhi Chawla or Saif Ali Khan. The idea is to generate excitement around the brand and have it stand out in the clutter of existing brands.

Durgesh Kumar Giri, BBA IInd Year

The brand has undertaken similar promotions in the past. For instance, in 2004 it launched the "Kahani mein Kurkure" ("Crispiness in the Story") campaign, which was a take on Indian popular culture. The advertising campaign spoofed popular Indian TV shows like Jassi Jaissi Koi Nahin (Indian adaptation of American sitcom "Ugly Betty") to appeal to Indian housewives, the largest target audience to watch these programs. In addition to targeting housewives, who play a significant role in making purchase decisions, the brand appeals to the Indian family as a whole. The "Kurkure Chai Time Achiever’s Award" was a contest launched by the brand where families were invited to submit interesting recipes made with Kurkure. The winning family would have the opportunity to be famous and have their photograph featured on one million Kurkure packs. This direct marketing campaign was supported through television advertising, where Indian celebrity Juhi Chawla, Kurkure’s brand ambassador, announced the winners of the competition. The contest was also publicized through the website http://kurkure.co.in, specifically designed to promote the contest. Using the website as a strategic tool for promotion helped the brand appeal to a young audience that spends a considerable amount of time surfing the web. Another novel branding initiative was a tie-up with South Western Railways in India to have trains called the "Kurkure Express." These were special trains that operated only during the holiday season. The brand was featured on reservation charts, coach indication slips, and during any announcements about the train. This outdoor media was a unique way to target families who travel by train during the holidays.

Conclusion: As of now Indian snack industry = 2500 crore. Frito Lays =

48%,

Haldiram = 25% market share and ITC bingo = 16% share. Rest of the market is dominated by few regional players like Balaji.

Recommendation for lays:

Durgesh Kumar Giri, BBA IInd Year

1) They can even target the old one and the children. 2) Firtolays also target to the disks and pups and even in various college canteens.

3) Should be focused on 3 marketing parameters:a) Undifferentiated marketing. b) Differentiated marketing.

c) Concentrated marketing. 4) Improve Loop holes (distribution channel) in Frito-Lay. 5) Lays have to change their positioning.( comes as sweet flavor).

Recommendation for Bingo: 1) Tie-up with coke brand for promotional offer(coke + bingo).

2) Tie –up with haldiram. 3) it can launch new flavor as in non veg.(roasted chicken chips)

Durgesh Kumar Giri, BBA IInd Year