Market Analysis

The branded snacks market in India is valued at INR 3000 Crore (as of 2011), the industry grew at an CAGR of 19.2% which was more than the growth observed in Chinese and other South Asian markets. The market leader Pepsi Co. was one of the earliest MNCs to make their presence felt in the FMCG industry in India. In the savory snacks industry, it is competing under the brand name of Frito Lays and has captured 45% of the market share. Some of the best known brands are Lays (potato chips) and Kurkure (finger snacks). In 2007, ITC known for its tobacco products ventured into the snacks domain to make inroads in the lucrative FMCG industry and at the same time to diversify its business interests from tobacco to other products. Through Bingo finger snacks and potato chips the company has made steady stride in the industry and has emerged as a top notch contender to Pepsi Cos dominance. Also significant is the share of Discount players like Haldiram, Balaji, etc., who are quite popular in western India and dont spend huge budgets on advertising and marketing but rely on giving more grammage and Indianised taste to their patrons.

Marketing Strategies and Positioning Adopted:

Bingo launched Mad Angles, a unique snacking product that was different in its taste, texture, and shape as compared to traditional potato chips and finger snacks. The company accordingly marketed the product as unique, humorous, and a Hatke product that goes well with the image of Indian youth. Frito Lay on the other hand has always been clear from day one that it strives to bring its best international flavors to satisfy the appetite of Indian consumer. It has positioned itself as a premium, above the rest, and a high quality product for the consumer. In an attempt to establish more connect with the consumers it has introduced local flavors in various categories of its products. Its product Kurkure relies heavily on the DESI or rural vibe to make inroads into the psyche of the rural as well as urban consumer. Additionally it has launched campaigns that aim to engage consumers in designing new flavors so as to maintain loyalty of consumers. Frito also has intelligently positioned its chips in the regular timepass something to munch on category whereas Kurkure as an alternative to biscuits for tea time snacks. Discount players really did not have to do much about positioning themselves. Due to their aggressive push strategy in local kiryana shops, more grammage per pack, and introduction of local flavors, they have positioned themselves as a no non sense hunger satisfying product with more value for money.

Positioning Bingo with respect to competition:

Bingo is facing a two pronged attack from not only an MNC which is quite aggressive when it comes to marketing but also the discount players who are just banking on their economies of scale to drive down the prices. In such a scenario Bingo needs to position its product so that it caters to both the challenges, i.e., become popular in the youth category and emerge as a high quality snack of popular choice as well as worth the money buy for a household as perceived by the decision maker Lady of the house. In marketing parlance, the stress should be on differentiated marketing. To cater to youth, the brand should position itself as a product that is known for its uniqueness and ingenuity. Indian youth needs to be celebrated for its intelligence and unique problem solving abilities. Based on these lines a campaign, which celebrates the famous Indian Jugaad and highlights the qualities of a smart young individual of India. Such a campaign is both funny and says its message and proposition loud and clear against the competitors like Pepsico. To counter the threat from local discount players, Bingo should position itself as a necessary snack that replaces the traditional snacks like Khakra and gives a perfect blend of east meets west. The product can be marketed in bigger packaging so that it finds a place in the weekly grocery lists of the households.