Distribution Strategy

Lays
Being first in the market through its acquisition of Uncle Chips, Fritolay already has a well-established network of distributors and retailers
pan-India.
The brand loyalty enjoyed by Lays was leveraged during the launch of
Kurkure, Cheetos and the recently launched Aliva
Frito-Lay has a distribution network of 30 CFAs and 2 RDCs who
service 800 distributors who sell to 4 lakhs retailers.
Lays has a reach of more than 1 million retail outlets countrywide
covering 100 towns. The Company, with its manufacturing plants in
Punjab and Pune, aims at investing 20 crores to extend distribution
facilities to improve coverage

Bingo
ITC already had a well-established distribution network through its
cigarette and tobacco-related offerings which was leveraged in case of
Bingo.
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

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 echoupal initiative. This also facilitated timely supply of raw materials.
ITCs printing and packaging business also lead to high-quality, costeffective 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.
For Lays, the company signed on ambassadors Saif Ali Khan & MS Dhoni.
Indianized versions of Lays were also launched after Bingos success with
Indian flavors. These included Chat Street,
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.

Contd.
Chai Time Achievers a Kurkure centric campaign was aimed at the
housewives in India. The Idea was to promote heavy audience interaction
by sending recipes for new flavors. The winning family would then have the
opportunity to have their photographs on one million Kurkure packs.
Aside from Juhi Chawla, the company also signed on Kareena Kapoor for
the Desi Beats version of Kurkure.
Other initiatives include posters at unconventional retail points such as
cyber cafes and telephone booths, a tie-up with South-Western Railways,
known as Kurkure Express to increase brand visibility.

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 to 15 spots per channel per day, 20 spots on radio stations
supported by 1000s of hoardings advertising the product. According to
industry estimates, the total advertising spend in the initial 6 months were
roughly 100 crores.
While its competitor Fritolay focuses on celebrity endorsements, Bingo
chose a different route. It didnt have an ambassador!

Contd.
As the product is aimed at the youth, digital media was heavily used.
For instance, the Bingo National Gaming Championship across 4 cities
with more than 25,000 participants.
Bingeonbingo.com and Mad Angles Twister Application (Facebook)
were other initiatives in online media.
This sudden media blitzkrieg of ads left a mark in the audiences
minds and it showed. In certain areas, Bingos market share touched
50 per cent; in no market is it less than 15 per cent.