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Brand WAR (Lays and Bingo Case Study by PGCBM, XLRi)

Brand WAR (Lays and Bingo Case Study by PGCBM, XLRi)

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Published by Vadan Mehta

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Published by: Vadan Mehta on May 15, 2011
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08/18/2013

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INTRODUCTION ................................................................................................... 2OVERVIEW OF SNAKE INDUSTRY IN INDIA ............................................................... 3Consumer behavior .............................................................................................. 5Indian consumer buying behavior analysis ............................................................. 6Market Universe ................................................................................................... 7MARKET PROFILE ............................................................................................... 7MARKETING ENVIORNMENT : Bingo ........................................................................ 9SWOT Analysis: Bingo ...................................................................................... 10MARKETING ENVIORNMENT : Pepsi Co ................................................................... 14SWOT Analysis: Lay’s/Kurkure ........................................................................... 14Market Segmentation .......................................................................................... 17Segmentation and Marketing strategies ............................................................... 19MARKETING POSITIONING FOR Pepsi Co products ................................................... 21Brand Management: Lay’s ................................................................................ 21Brand Management: Kurkure ............................................................................ 22Competitor Analysis: ........................................................................................ 23MARKETING POSITIONING FOR Bingo (ITC) ............................................................ 27Brand Management for Bingo: ............................................................................ 28CONCLUSION ..................................................................................................... 30- 1 -
 
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INTRODUCTION
I , as student of XLRI’s satellite course PGCBM-17, had prepared thisreport as part of our term assignment for subject of Principles of Marketing (POM). This document explains the brand differentiation between PepsiCo’slay’s/kurkure and ITC’s Bingo.While completing the assignment, we have analyzed consumerbehavior, particularly in snack industry segment, , SWOT analysis, andmarketing positioning.As assignment is as per condition, we need to compare two brands,falling under same product category. There two brands should belongto local and international companies, respectively. Hence, we haveexplored brands as, Videocon and Philips( Electronics),Tital and Swatz(Watches), TATA Indica and Hyudai Santro (Car) and finally zeroed ourchoice in Pepsico /s Lay’s/Kurkure as International brand, competingwith Bingo (ITC) as Indian brand.Reason for this selection, is that launch of Bingo has triggeredcompetition in Tea time snack industry, which was dominated byPepsico. Within 2 years of product launch, Bingo has captured around16% of marker share, posing big challenge to already establishedmarket leader Pepsi Co. Bingo’s marketing strategies are being studiedin B-schools to study the consumer behavior and market positioningtechniques in Indian FMCG market.We want to capture the techniques used by both brands to promotetheir product in highly uncertain market as ready made snack industry.We have analyzed market reports, studied advertisement campaignsand brain stormed heavily within group members and outside marketpeople to prepare this report.We hope that our effort reaches to fruitful conclusion and readerperceive each word of the report.
RegdsVadan Mehta
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OVERVIEW OF SNAKE INDUSTRY IN INDIA
Snacks are a part of Consumer Convenience/ Packaged Foodssegment. Snack is described as a small quantity of food eaten betweenmeals or in place of a meal. Snack food generally comprises bakeryproducts, ready-to-eat mixes, chips,
namkeen
and other lightprocessed foods According to the ministry of food processing, thesnack food industry is worth Rs 100 billion in value and over 4,00,000tonnes in terms of volume. Though very large and diverse, the snacks industry is dominated bythe unorganized sector. According to an Apeda survey almost 1,000snack items and 300 types of savouries are sold across India. Thebranded snacks are sold at least 25% higher than the unbrandedproducts. Savoury snacks have been a part of Indian food habit, sincealmost ages. Though there is no particular time for snacks, normallythey are consumed at teatime. The variety is almost mind-bogglingwith specialties from all regions, which have gained nationalacceptance. The industry has been growing around 10% for the last three years,while the branded segment is growing around 25% per annum to standat Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplexculture, snacking at home while watching TV, pubs and bars (wherethey are served free). AC Nielsen's retail audit shows that the largesales volumes are due to a marked preference for ethnic foods,regional bias towards indigenous snacks and good value-for-moneyperception. Of course the branded segment is much smaller at Rs2,200 crore, which is what makes it so attractive to food Companiesthat are looking at bigger shares.Growth rate of ready made snack (Potato chips/Namkeens) industry 
 Year Potato Chips/Namkeens Growthrate
1990-91 to 1996-975.21996-97 to 2001-027.92001-02 to 2006-076.32004-05 to 2009-106.52009-10 to 2014-157
Source: Ministry of Food 
Processing Industries,GOI(www.CommodityIndia.com)
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