Marketing Management Project: Submitted By: Derrick Vijayan

MARKETING MANAGEMENT PROJECT
Submitted By:
Derrick Vijayan
INDEX
Marketing Management Project: Bingo

Chapte
r
Topic
Page
ABOUT ITC AND BINGO
SITUATIONAL ANALYSIS
SWOT ANALYSIS OF BINGO
14
MARKETING OBJECTIVES
15
MARKETING RESEARCH
16
MARKETING STRATEGY
24
MARKETING ACTION PROGRAM
26
FINANCIAL OVERVIEW
28
RECOMMENDATIONS
32
10
REFERENCES
33
APPENDIX
34
ACKNOWLEDGEMENT
Indian Institute of Management, Kozhikode
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We take this opportunity to express our heartfelt appreciation and gratitude to our guide and
facilitator of the course, Dr G Shridhar.
We also thank the Library staff and the Computer Center Department at IIM Kozhikode for
providing us the facilities and infrastructure to proceed with and complete this project. We
also thank the countless respondents of the consumer and retail surveys conducted by our
group for the purpose of this project.
EXECUTIVE SUMMARY
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Love me, hate me, but you can never forget me This is exactly the philosophy
with which Indian Tobacco Corporation forayed into the Indian salty savories market with its
No Confusion, Great Combination potato chips brand Bingo on March 14, 2007. Right
from an advertisement campaign that generated responses from One of the best campaigns to
be floated in recent times to Was that even an advertisement!, to taking on the only national
player having a decade-long supremacy, in the low-cost branded potato chips market, Pepsi
Co, by the horns, Bingo was up against the odds. But just as the very World Cup campaign
that it was banking on (ITC was an associate sponsor for the Cricket World Cup 2007) to
provide it an initial thrust in the Indian markets, went awry, Bingo hit a green patch in the
Indian markets. Within ten months of launching, the wafer snack brand went on to capture 16
per cent market share branded snack market. The company leveraged its existing distribution
network and easy access to the supply chain (farmers), to attain such rapid growth in such a
short time. However, 30 months after Bingos launch, Frito-Lay continues to be top brand in
this segment. With the increasing stress on Health-Conscious snacks, and launch of Aliva in
June 2009, Frito-Lay is taking the battle in this Rs 2,000 crore branded snack market to the
next level. In this project, we with the help of a consumer survey and a retailer survey have
analysed the branded snack segment and devised a marketing plan for Bingo, as it strives to
capture 50 per cent market share and emerge as the Numero Uno player in this segment.
CHAPTER 1
ABOUT ITC AND BINGO
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1.1 About ITC

ITC limited started as Imperial Tobacco Company in 1910 in Kolkata. It has come a
long way since then. From being in tobacco business ITC has expanded today in lot of
diverse fields. Its business can be divided in 5 major divisions, viz. FMCG, Agri Business,
Hotels, Information Technology & Paperboard and Packaging. Here is brief insight into its
diversified business today:
1.1 (a) FMCG
Cigarettes - ITC is the market leader in cigarettes in India. It popular brands are
Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan,
Berkeley, Bristol and Flake.
Foods - ITC's foray in this field began in August 2001 with the introduction of
'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC launched the
brands mint-o and Candyman confectionery and Aashirvaad atta (wheat flour). In
2003 ITCs Sunfeast was launched as a Company in the biscuits segment. In 2002
ITC's entered the fast growing branded snacks category with Bingo!
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1.1(b) Lifestyle Retailing
ITC entered the Lifestyle Retailing business with the Wills Sport in 2000 and later
expanded its range to include Wills Classic formal wear (2002) and Wills Club life
evening wear (2003). ITC entered into the popular segment with its men's wear brand,
John Players, in 2002.
1.1 (c) Personal Care
In July 2005 ITC introduced Essenza Di Wills, an exclusive range of fine fragrances
and bath & body care products. Inizio, is a signature range that comes under Essenza
Di Wills ,with Inizio Homme for men and Inizio Femme women. Company launched
'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in
September, October and December 2002 respectively. They also have 'Superia' range
of Soaps and Shampoos in the mass-market segment and Vivel De Wills & Vivel
range of soaps in the premium market.
1.1 (d) Stationery
ITC entered into this segment by launching Expressions range of greetings in 2000. A
line of premium range of notebooks under brand Paperkraft in 2002 and a popular
range of notebooks was launched under brand Classmate in 2003. Classmate is
Indias largest brand of note books. In 2008, ITC repositioned the business as the
Education and Stationery Products Business and launched India's first environment
friendly premium business paper.
1.1(e) Safety Matches
ITC markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega
and Aim Metro.
1.1 (f) Agarbattis
ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of
fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and
Nagchampa.
1.1(g) Agri Business
Agri Commodities: They also market Food Ingredients, Food Grains, Edible Nuts,
Marine Products, Processed Fruits, Coffee & Spices.
e- Choupal: e-Choupal initiative began in 2000 with soya farmers in Madhya
Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural
mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the
rural retail front, 24 'Choupal Saagars' are now operatonal in the 3 states of Madhya
Pradesh, Maharashtra and Uttar Pradesh.
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Leaf Tobacco: ITC is the largest buyer, processor and exporter of leaf tobaccos in
India. ITC buys nearly 50 per cent of all cigarette tobacco types grown in India. ITC's
Green Leaf Processing plants at Chirala and Anaparti in Andhra Pradesh.
1.1 (h) Hotels

ITC entered into this field in 1925. They have a branding strategy by which; services
are branded as 'ITC One', Towers, 'Executive Club' and hotels as Welcom Heritage,
Fortune hotels, Luxury collection. They also have branded restaurants like Bukhara,
Dakshin & Dumpunkt. ITC-Welcomgroup now has an exclusive tie-up with Starwood
in bringing its premium brand, the 'Luxury Collection', to India.
1.1 (i) Information Technology
ITCs Infotech has established itself as a key player in offshore outsourcing,
providing outsourced IT solutions and services to leading global customers across key
focus verticals - Manufacturing, BFSI, THT and Media & Entertainment.
1.1 (j) Paperboard and Packaging
Paperboards & Speciality Papers: ITC caters to a wide spectrum of packaging,

graphic, communication, writing, printing and specialty paper requirements through
its four world-class mills in India.
Packaging: ITC is the country's largest convertor of paperboard into packaging. It

converts over 50,000 tonnes of paper and paperboard per annum into a variety of
value-added packaging solutions for the food & beverage, personal products,
cigarette, liquor, cellular phone and IT packaging industries. It has also entered the
Flexibles and Corrugated Cartons business.
1.2 About Bingo

Bingo is one the main success stories in Indian marketing of recent times. A well
crafted brand arising on the basis of an extensive market research followed by a great
channel to distribute is a sure recipe for success. In year 2007, ITC on the backdrop of
Cricket World Cup marked its presence in snack market by Bingo campaigns and it
turned out to be such a success that even the failure of it launch vehicle( Indian team
in World Cup) failed to make any dent in the Bingo success. No Confusion, Just Great
combination The punchline of Bingo looks like serving well even the clear cut
strategy adopted by ITC to serve the market right. Available in different local tastes on
the basis of regional preferences this snack turned out to be major market scooper
even if initially some people perceived it to be less preferred cousin of market leader
FritoLays.
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In a country where local snacks are loved by one and all Bingo filled the void between
tasty and elegant snack option available. The untapped demand of branded version of
local tastes was so well captured by Bingo that it became the case study in major B
schools across the world. The combination of push and pull strategy created by solid
media campaign and colourful racks on the retails stores across India is living
example of crafting a well needed product and serving it best manner. The reason that
Bingo has so much to offer to learn the concepts of marketing makes it an ideal choice
even for us to take it up as our case study.
CHAPTER 2
SITUATIONAL ANALYSIS
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2.1 Savoury Snacks Market Market Summary

The savoury snacks market consists of nuts & seeds, popcorn, potato chips, processed snacks
and other savoury snacks. The market in India is diverse and large with over 1,000 different
snack products and some 300 types of savouries
2.1(a) Market Value and Market Volume
In terms of volume, the savoury snacks market in India has grown by 2.9% in 2008 thereby
reaching a volume of 887.1 million kilograms. The compound annual growth rate of the
market volume in the period 2004-2008 was 3%.The value of the Indian savoury market grew
by 4.5% in 2008 to reach a value of $2.2 billion, with a compounded annual market growth
rate of 4.4%during the period 2004-2008. This market generated total revenues of $2.2 billion
in 2008 where the Potato chips sales proved the most lucrative generating total revenues of
$205.8 million, accounting for 9.3% of the market's overall value
2.1 (b) Market Forecast
In 2013, the Indian savoury snacks market is forecasted to have a volume of 1 billion
kilograms, an increase of 13.5% since 2008 and the compound annual growth rate of the
market volume in the period 2008-2013 is predicted to be 2.6%. In terms of value, in 2013,
the market is forecasted to have a value of $2.6 billion, an increase of 19.5% since 2008. The
compound annual growth rate of the market in the period 2008-2013 is predicted to be 3.6%.
Table 11: India
2.1 (c) Market Segmentation
Potato chips generate 9.3% of revenues in the Indian savoury snacks market. Nuts and seeds
account for a further 3.3%, processed foods 0.80% and pop corn 0.60%, of the market value
and the rest 85.90% is accounted for by the other savoury snacks category. Japan dominates
the Asia-Pacific snack market, holding a 59.5% share overall while India controls over
12.40% of the total Asia Pacific snack market share.
2.1 (d) Distribution
The main distribution channel in the Indian savoury snack market is carried out by the
independent retailers distributing 71% of the total value. Convenience stores are responsible
for an additional 17.1% of distribution.
2.2 Market Growth

Although there has been steady levels of growth in Indian savoury snack industry during the
period 2004 -2008, the market is expected to see some fluctuations and some deceleration in
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the levels of growth between 2008 and 2013.The Indian savoury snacks market generated
total revenues of $2.2 billion in 2008, representing a compound annual growth rate (CAGR)
of 4.4% for the period spanning2004-2008. In comparison, the Japanese and Chinese markets
grew with CAGRs of3.1% and 6.9%, respectively, over the same period, to reach respective
values of$10.6 billion and $2.9 billion in 2008. Market consumption volumes increased with
a CAGR of 3% between 2004-2008, to reach a total of 887.1 million kilograms in 2008. The
market's volume is expected to rise to 1 billion kilograms by the end of 2013, representing a
CAGR of 2.6% for the2008-2013 period.
Potato chips sales proved the most lucrative for the savoury snacks market in 2008,
generating total revenues of $205.8 million, equivalent to 9.3% of the market's overall value.
In comparison, sales of nuts and seeds generated revenues of $73.7 million in 2008, equating
to 3.3% of the market's aggregate revenues. The performance of the market is forecast to
decelerate, with an anticipated CAGR of 3.6% for the five-year period 2008-2013, which is
expected to drive the market to a value of $2.6 billion by the end of 2013. Comparatively, the
Japanese and Chinese markets will grow with CAGRs of 2.6% and 5.5%, respectively, over
the same period, to reach respective values of $12.1 billion and $3.8 billion in 2013.
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2.3 Competition:
The major players in the market are
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CHAPTER 3
SWOT ANALYSIS OF BINGO
3.1 Strengths
Large Distribution network
Abundant availability and easy access to raw material
Vast domestic market
Urbanisation
3.2 Weaknesses
Lack of adequate quality control & testing methods when compared top international
brands like Lays or Pringles
Low availability of adequate infrastructural facilities and technology as it is a new

entrant in this segment
High requirement of working capital
3.3 Opportunities
Expansion of current markets
Rising income levels and changing consumption patterns
Favourable demographic profile and changing lifestyles
Integration of development in contemporary technologies offer vast scope for rapid

improvement and progress
3.4 Threats
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Competition between national and international players
Competition from unbranded players
Affordability and cultural preferences of fresh food especially unbranded ones
High inventory carrying cost
High taxation
High packaging cost
CHAPTER 4
MARKETING OBJECTIVES
To increase the brands market share from 16% to 25% and eventually to 50%
To make Bingo the most preferred brand for 40-50% of branded snack consumers
To increase penetration in the metros and big cities
To increase penetration in the smaller towns and rural markets
To successfully tackle the threat from health-conscious variants of competing brands
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CHAPTER 5
MARKET RESEARCH
The market research is based on two surveys conducted which are:

1. Consumer Survey
2. Retailer Survey
5.1 Consumer Survey:
This survey has been conducted over a sample of 135 people from across India. The
characteristics of the sample are as follows.
Demographics
Total number of respondents = 135
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5.1(a) Preference for a particular product

Internal
The survey revealed that the most important factor for a consumers preference for a
particular brand is the number of flavours (variants) on offer for a particular brand on
snack.
Flavour - Bingo currently offers its potato chips in the following flavours. Masala,
Salted, Tomato, Chatkila Nimbu Achar, Tandoori Paneer Tikka, Tedhe Medhe and
Live Wires. The number on variants on offer for Bingo is larger than any other
competing brand in the market. Frito-Lay with the flavours of American Flavour,
Classic Salted, Tangy Tomato, Classic Salted, Chat Street has lesser number of
flavours.
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However, in the rice-chips category, the Bingo variants of Mad Angles and Tedhe
Medhe are facing stiff competition from Kurkure (also a Frito-Lay brand with 8
flavours). The launch of the Aliva brand, with four Indian flavours of baked-wheat
chips , by Frito-Lay in June is likely to provide further variety to the consumers under
the Frito-Lay banner.
The second most influential factor for a consumer to determine the selection of a
particular brand is the taste appeal.
Most consumers surveyed in their feedback mentioned that the taste and also the aftertaste for any variant of a brand plays a very important role in a consumer opting for
the same. Bingo was said to have sometimes too sour, sometimes too sweet a
taste, by consumers who prefer Frito-Lay over Bingo.
External
Among the external factors affecting the choice of a product, the visibility and
availability of a product were found to be the most important criteria for a consumer
to opt for a particular product. The strong distribution network of ITC across the
country has been leveraged very well by the company, to ensure the availability of its
product across the country. To increase its visibility the company has also distributed
Bingo racks to retailers. It distributed about 4 lakh such large racks to display the
brand at all points of sale. The idea was soon adopted by Frito-Lay too.
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Advertisements and endorsements were found to have minimum impact on a

consumers preference. On the basis of the survey, the endorsements roped in the from
Bollywood and cricket stars like Saif Ali Khan, M S Dhoni, Kareena Kapoor and
Chitrangada Singh have very little impact in influencing a consumers preference for a
brand.
The greater significane of peer reviews and preferences, implies that word-of-mouth
is the best way to induce the consumer into buying Bingo. Thus, internal factors of
variants (flavours) and taste assume greater significance and would ensure greater
penetration than mass media publicity.
5.1(b) Most preferred brand
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Frito-Lay was surveyed to be the most preferred brand for about 32 per cent of the
sample population. It also needs to be noted that Cheetos and Kurkure, too are brands
owned by PepsiCo, pushing the companys products as the most preferred for 53 per
cent of the surveyed population.
5.1(c) When are branded snacks consumed?

With 44 per cent of the surveyed population consuming snacks during evening and
night and another 19 per cent accepting that they consume branded snacks all through
the day, a clear shift in the eating habits of the youth is observed. With 80 per cent of
the surveyed population less than 24 years in age and 99 per cent less than 35 years in
age, the sample population for the survey has been predominantly young.
With about 75 per cent of the population spending more than Rs 50 every week on the
consumption of branded snacks, they have become a component of the daily diet of
the modern youth. Thus, with time, among similarly priced snacks, the consumers are
likely to prefer healthier brands. The nutrition and calory values of a brand with time,
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may gain prominence with time, over taste and flavours in affecting a consumers
choice among brands and products. The companies too have realised the same. While
Bingo has launched rice chips under the sub-brand Mad Angles, Frito-Lay has three
brands Cheetos, Kurkure and Aliva (since June 2009) that cater cornmeal, rice and
wheat-based snacks, thus focussing on the nutritional value offered at the same price.
5.1(d) Where is Bingo ranked in consumers preferred brands list?
For 12 per cent of the surveyed population, Bingo figures as the most preferred brand,
with another 36 per cent of the population placing it as the second most preferred
brand.
Within a little over a year of its launch, Bingo had captured 16 per cent of the branded
snack market as against the targeted 8 per cent ( AC Neilsen). The brands share in the
total snacks and savouries market stood at 8 per cent by the end of 2008
(Datamonitor). To achieve the new target of 25 per cent of the branded snack market
share, Bingo will not only have to further improve the smoothness in the taste of its
potato chips, but will also have to increase sales of its rice-variants to compete against
Kurkure.
5.1(e) Flexibility of the consumer base
With about 41 per cent of the surveyed population showing readiness to switch to its
second most preferred brand on lack of availability of the first, without making any
extra effort to procure the first brand; there is huge scope for Bingo to increase
penetration within the existing markets.
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5.1(f) What differentiates Bingo from the rest?
The distribution network of ITC that ensures that Bingo is available at every retail
shelf at all points of time is what separates the brand from the rest of the competitors.
About 29 per cent of the surveyed population has accepted, the brands ready
availability across shops at all points of time is its differentiating factor. With taste and
flavours the most important factors, the companies focus on these two factors of
influence to increase sales is justified.
5.2 Retailer Survey

a) Number of retailers surveyed = 20
b) Location Kozhikode
5.2(a) Availability
In Kozhikode, ITC has been successful in leveraging its distribution network. Every
one of the 20 retailers surveyed confirmed that the supply-chain ensures constant
availability of Bingo at their shelves. The retailers also reiterated that ITC was the
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most proactive company as far as ensuring the availability of Bingo at the shop at
every point in time was concerned.
5.2 (b) Fastest moving branded snack

However, constant availability and visibility has not yet translated into maximum
preference in the Kozhikode markets. 12 of the 20 retailers confirmed that Frito-Lay
was the fastest moving product. Of the 8 that had Bingo as the fastest moving product,
5 didnt stock Frito-Lay. Bingos move to sell 20% extra in its potato chips snack than
the rivals has also helped tilt the preference of a few undecided consumers towards
Bingo, a few retailers noticed.
5.2(c) Number of flavours of Bingo catered
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Majority of the retailers hosted between 4-6 flavours of Bingo. However, it was
unanimously accepted by most shopkeepers that the bulk of the sales for the brand
came from the Masala, Salted, Tomato and Mad Angles flavours.
5.2 (d) Customer Flexibility
100%
The retailers observed that consumers, usually never mind in shifting from one brand
to the other if the other brand is famous. Every retailer conformed that unavailability
of a brand at a shop, compulsively led to the consumer opting for his second preferred
brand. Usually customers of Frito-Lay dont mind switching to Bingo. Most
consumers in this region perceive Bingo to have an inferior taste/aftertaste compared
to Frito-Lay. However, the availability of the product has resulted in a lot of
consumers reluctant to try it, being forced to do so. These consumers very soon
become regular consumers of Bingo and stop differentiating between the most
preferred brand and Bingo, pointed out a retailer.
5.2 (e) Internal factors affecting consumer preference
The fragmented replies to this question suggested two diverse opinions. The first
stressed on the fact that the brand affiliation for a product weighed heavy over every
other possible influencing internal factor, right from taste to flavours. About 50 per
cent of the responding retailers conformed to this opinion.
Another popular opinion which emerged suggested that if a product has got an
appealing taste, there will be a market for it even if it is unbranded. Low priced salty
snacks which are unbranded or from local brands such as Grooves, had a bigger
market than Lays, Bingo or both combined at a few of the retail outlets.
CHAPTER 6
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MARKETING STRATEGY
6.1Segmentation
The segmentation for the branded snacks market can be done on the following
grounds
6.1(a) Geographic:
Region wise: North, south, west, east, central, north east
Category: Metros, major cities and towns
Geographic segmentation can be employed by the company to develop different
variants (flavours) for different regions based on the local tastes and preferences of
that region. The company can also further segment these regions into metros, cities
and towns. Brand advertising firm Ogilvy and Mather, claimed that Bingo had
achieved its maximum market share in cities, with it being as high as 66 per cent in a
few cities. This clearly indicates, that the brand has been a huge success in a few
geographical locations and lesser so in others.
6.1(b) Demographic:
Age: <18, 18-24, 25-35, >35
Income levels: middle-income and high-income groups
Bingo through its snazzy advertisements that talk of Think Hatke has from the very
onset been clear that its target segment is the 18-24 and 25-35 year olds category. The
lifestyle and eating habits of this segment make it the most lucrative one for the
branded snacks segment.
The products, which are priced at the lower end in the branded packaged snacks
market, are targeting the middle income segment, the segment which has food habits
conducive to packaged snacks and yet would be cost-conscious and would opt for
snacks in the lower end of the cost-spectrum.
6.1(c) Psychographic:
Features: Taste, quality, quantity, price and packaging
Awareness: Brand consciousness, movement towards health-conscious brands
6.1(d) Behavioural:
Time of consumption: Morning, afternoon, evening, night, all through the day.
Weekly expenditure: >Rs 200, Rs 100-200, Rs 50-100, <Rs 50.
Loyalty status: Flexible, Loyalist, Indifferent.
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6.2 Targeting
Bingos current focus would be on increasing its penetration in the metros and cities,
its strongholds. The brand should bank on its strong distribution network to ensure
that it has high visibility in the smaller towns. Taking heed from its advertisements
during the launch face that focused on the cultural diversity in the country Bingo
should look to target each of the geographical regions separately. The company should
continue with its current focus on <35 year olds segment of the middle-income group.
6.3 Positioning
Bingo should not dilute its current market image of youthful trendy brand and should
look to increase penetration in the metros and cities, through its advertisements.
The trickle-down effect, high visibility and availability could also see its market share
in the smaller towns rise. Meanwhile, Bingo should also introduce different variants
that suit the local tastes to target the regional markets.
CHAPTER 7
MARKETING ACTION PROGRAM
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7.1 Product
Bingo is currently available in eight variants, in addition to the rice-meal snacks.
Based on the market research, the company can incorporate the following
improvements in its product portfolio.
7.1(a) Taste, aftertaste and quality
Bingo, inspite of its high penetration in a very short period of time, was perceived as
less tasty and of a lower quality than Frito-Lay by a large section of the consumer
sample.
The following changes in the product were suggested
Reduce the sharpness in the sour/sweet taste of the product. Tone down the spices
in the product.
Research and try to achieve a good aftertaste (similar to Pringles) for Bingo
products
Work on reducing the oiliness and the amount of masala that sticks to the fingers
during the process of eating.
7.1(b) Different flavors for different regions
The company must look to target each of the regions based on the spices and tastes
prevalent in the region. It should look to introduce specific flavours for each region.
7.1(c) Moving towards health-conscious sub-brands
With competition slowly moving towards health-friendly brands (Aliva from FritoLay), it is imperative for Bingo too to move into cornmeal and baked wheat meal
snacks categories.
7.2 Pricing
Bingo currently is among the lowest priced packaged snacks brands having a national
presence. Bingo was the first brand to introduce, its snacks in Rs 5, Rs 10 and Rs 20
packets. Right now Bingo and its prime competitors, Frito-Lay, Kurkure and Cheetos
are currently priced at the same levels.
In this price range, the consumers preference for a brand has been found to be
indifferent of the exact price of the product. Only 5 per cent of the population has
suggested that its preference for Bingo over its rival brands could be on the basis of its
pricing.
However, share of the branded snacks in the total savouries market currently is about
20 per cent. While lowering of prices might cause all the competing brands also to
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lower prices, it can help the branded snacks industry to increase its share in the
savories market.
7.3 Placement
Both the consumer and the retail surveys have affirmed that Bingos greatest strength
lies in its strong distribution network. The brand, through its appeal to the youth with
the help of its snazzy advertisements, has been able to secure a strong youth customer
base in the cities. High visibility and availability with the help of ITCs strong
distribution network has helped it penetrate into the smaller towns. The company
must continue to leverage its distribution network. Bingo must go local, within India
and devise variants (flavours) specific to each region. The company can also
collaborate with various food joints not associated with PepsiCo , such as McDonalds
to market Bingo as the Indian snacks on offer. It had already entered into a similar tie
up with Big Bazaar retail, last year.
7.4 Promotion
The company must continue to promote itself as a youth-centric brand. This has
helped it grow at a substantial pace in the metros and cities.
With the growing awareness about health-conscious products and Frito-Lays
launching of Aliva and Kurkure (cornmeal and rice snacks, perceived to be healthier
than potato chips), Bingo needs to get into these segments. It needs to promote the
Mad Angles sub-brand as a health-sensitive product.
While the whacky advertisements of the company still find a lot of takers, there is no
need to follow Frito-Lays footsteps and acquire celebrity endorsements as consumer
surveys reveal their relative insignificance.
CHAPTER 8
FINANCIAL OVERVIEW
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8.1 Snacks market and analysis
In 2008 the total snack market in India was 91.2 INR billion. Today in branded snack
market, Frito Lay commands a share of 45%, followed by Haldirams at 27% and ITC at
16%. The rest is divided between new entrants, and regional players. Out of these ITCs
Bingo is a new entrant in the market, which was launched in 2007. Market consumption
volumes increased by 3% between 2004-2008, to reach a total of 887.1 million kilograms in
2008. The market volume is expected to rise to 1 billion kilograms by the end of 2013.
The snacks market is estimated to be a worth US$ 3 billion by 2013. The organised sector of
the snack food market is growing at 15% - 20% a year while the growth rate is around $ 1.56
billion, and for un-organised sector it is 7% - 8%. Consumption level of commercial savoury
snacks is 10 times higher than that in the rural markets. Around 1000 snack items and 300
types of savouries are sold in India. The segment is largely dominated by potato chips and
potato-based products with over 85% share of the salty snack market. Potato chips sales
proved the most lucrative for the savory snacks market in 2008, generating total revenues of
$205.8 million, equivalent to 9.3% of the market's overall value.
Following is the data of 2007 and 2008 showing consumption and growth of snack market
Year
Kilogram (million)
% Growth
2007
2008
861.7
887.1
2.80%
2.90%
Following is market analysis for different categories of snack market and its market
share
Fig.8.2 Details of snacks industry

8.2 Competitors
Following is the data showing different companies with their market share in snacks market
Company
% Share
PepsiCo ltd
6.10
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ITC limited
1.40
Haldirams
1.00
Others
91.50
Following are the calculations for knowing the growth of ITC because of BINGO launch.
Since Bingo was launched in 2007, we will take the data of 2008. In 2008 the total snack
market in India was 91.2 INR billion. Out of this ITC limited is having a 1.4% share.
91.2 billion INR * 1.4% = 1276800000 (1.27 INR billion)
So revenue generated by Bingo in 1st year of its operations come out to be Rs 127 crores.
Since snack industry is showing a growth rate of 3% in branded sector there are good
prospects of Bingo to make a lot of profit even in near future.
In the pre launch press release by ITC it was mentioned the company is spending
Rs. 700 crore in setting up a manufacturing facility. Assuming it to be for Bingo, ITC will
have a break even for this product in very short time.
8.3 Sales projection

Following is segmentation (pie chart) of all the product categories of ITC company
Page 30
Fig 8.3- Pie chart of categories of product of ITC on basis of revenue
The above graph clearly shows that ITC has huge 21% of its total revenue from FMCG noncigarette category.
The following are the products of FMCG non-cigarette category.
(a) Foods
(b) Lifestyle retailing
(c) Personal care
(d) Education & Stationery
(e) Safety matches
(f) Incense sticks (Agarbattis)
Its FMCG category is in good growth. This can be understood from the following data.
Page 31
FMCG
FY2008
FY2009
25,068
30,016
(in thousands)
So it is clear that this segment is having a growth of around 20% and Bingo can be a major
contributor to this growth.
CHAPTER 9
RECOMMENDATIONS
Page 32
1) Reduce the sharpness in the sour/sweet taste of the product.

2) Research to arrive at a more widely accepted aftertaste.
3) Reducing the oiliness and the amount of masala that sticks to the fingers during the
process of eating.
4) Launch different local flavours for different regions.
5) Move towards health-conscious products; make the consumers aware about the same.
6) Maintain the prices at current levels.
7) Continue with whacky advertisement campaigns to keep appealing to the city youth.
8) Focus on maintaining visibility and availability at retail outlets across the country.
9) Partner with non-Pepsi brands like McDonalds to market Bingo as the Indian snack.
CHAPTER 10
REFERENCES
1. http://www.flex-news-food.com/pages/17973/India/Snack/india-overview-us$3-billion-snackfood-sector.html
2. http://www.itcportal.com/newsroom/press06june07-b.htm
Page 33

3. http://www.flex-news-food.com/console/PageViewer.aspx?page=9208&str=itc bingo
4. http://www.itcportal.com/itc-annual-reports-2008/pdfs/Balance-sheet.pdf
5. Datamonitor (Published November 2008)
6. www.pepsico.com
7. http://www.itcportal.com/newsroom/press-08jan08.htm
APPENDIX
Consumer Survey
A few questions about the snack you eat
Page 34

1
Are you a regular consumer of packaged snacks of brands like Frito

Lays, Kurkure, Haldiram, Pringles, Bingo etc?
Please indicate your sex.
Male
Female
Please select the category that includes your age.
Of the following, which is your most preferred brand of

packaged salted snacks?
Frito Lays
Bingo
Haldiram Namkin
Cheetos
Kurkure
Pringles
Other, please specify
What is it that makes you prefer a particular brand?
Page 35
Brand Name
Variants offered
Price
Anything, which is easily available
Taste
6
Among similar priced products like Lays, Bingo, Kurkure,
Cheetos; would you mind having to switch from your
preferred brand to another on the count of availability?
Survey Page 1

7
Where would Bingo figure in your list of preferred snacks?
When are you most likely to consume salted packaged

snacks?
Morning (I am not a fitness freak, I'd rather have chips
than corn flakes)
Page 36

Afternoon (The most handy and easy to carry snack)
Night, Evening
All through the day
Chips are way too oily to fit in my diet regime
Something to ponder upon, what medium is most likely to

influence your decision in selecting a snack?
Snazzy advertisements in print and electronic media
Your favorite movie star and cricket team captain
endorsing the product
Peer reviews and peer preferences
Visibility and availability in the market
Other, please specify
10
What is the one thing that differentiates Bingo from the rest,
if at all anything does?
Taste
The 8-plus varieties in which it is available
Availability at every single retail outlet, anywhere in the
country
Quality, quantity and pricing
Advertisements
Page 37
Survey Page 2

11
What is your weekly expenditure on branded snacks?
>Rs 200
Rs 100-200
Rs 50-100
<Rs 50
12
13
In which state are you located right now?
What is the one change in the product that would make you
a Bingo loyalist? Any suggestions you got for the brand and
the company?
Retailer Survey
Which are the various brands of salt snacks (Lays/ Bingo/ Pringle) that are catered from
your shop?
Page 38

2 Which are the top three fastest moving products in this category?
What are the factors, according to you that govern the consumer preference for a
particular product? Kindly rank the following
3
1)
2)
3)
4)
Taste
Flavours
Availability
Pricing
For similarly priced products, do the customers mind switching over from their preferred
product, to the one available in your shop?
4 Kindly ask for the percentage of customers that would not purchase from your shop just
because a particular brand is not available.
5
How many flavours of Bingo are available in your shop? Which is the most preferred
flavor?
6 What is it that differentiates Bingo, if at all anything does?

Which is the company that is most proactive in ensuring that it's brands are always there
7 on your shelf? He won't know company names probably, so talk about Bingo, Lays,
Kurkure, Cheetos.
Can he give an age-wise, income-wise and number of consumers that prefer low-priced
8 chips (Bingo, Lays) and high-priced items (Pringles, Haldiram). If he takes care to
answer this, it will be great.
9 Ask him if he has any suggestions for improving sales of Bingo?
Page 39

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MARKETING MANAGEMENT PROJECT

Marketing Management Project: Bingo

ABOUT ITC AND BINGO

SWOT ANALYSIS OF BINGO

MARKETING ACTION PROGRAM

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

1.1 About ITC

1.1 (a) FMCG

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

1.1 (h) Hotels

Paperboards & Speciality Papers: ITC caters to a wide spectrum of packaging,

Packaging: ITC is the country's largest convertor of paperboard into packaging. It

1.2 About Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

2.1 Savoury Snacks Market Market Summary

2.2 Market Growth

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Large Distribution network

Abundant availability and easy access to raw material

Vast domestic market

Low availability of adequate infrastructural facilities and technology as it is a new

High requirement of working capital

Expansion of current markets

Rising income levels and changing consumption patterns

Favourable demographic profile and changing lifestyles

Integration of development in contemporary technologies offer vast scope for rapid

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Competition between national and international players

Competition from unbranded players

Affordability and cultural preferences of fresh food especially unbranded ones

High inventory carrying cost

High packaging cost

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

The market research is based on two surveys conducted which are:

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

5.1(a) Preference for a particular product

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Indian Institute of Management, Kozhikode

Marketing Management Project: Bingo

Advertisements and endorsements were found to have minimum impact on a