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MARKETING - II

ANALYSIS OF BINGOS PROMOTIONAL CAMPAIGNS


Submitted to Prof.Srabanti Mukherjee

SECTION EGROUP 8
NAME ANIKET YEVALKAR ANOOP S ASHWIN GOLAPKAR GIRIJESH SINGH MAHRA HITESH CHANDNANI SENAJIT CHAKI SUMITA KERKETTA ROLL NUMBER 2012PGP449 2012PGP050 2012PGP120 2012FPM006 2012PGP136 2012PGP345 2011PGP908

TABLE OF CONTENTS
Introduction .......................................................................................................................................................................... 3 About ITC ............................................................................................................................................................................. 3 AboutBingo .......................................................................................................................................................................... 3 Campaign Strategy and Concept ................................................................................................................................ 4 Impact Analysis ................................................................................................................................................................. 6 Conclusion ........................................................................................................................................................................... 7 Appendix .............................................................................................................................................................................. 8 Bibliography ....................................................................................................................................................................... 8

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INTRODUCTION
This report presents the impact of promotional campaigns of Bingo Chips. Entering a rapidly growing snacks market, Bingo was able to capture a significant market share by virtue of its extensive marketing efforts, part of which were the creative and innovative promotions. This report focuses on 3 channels of promotion used by Bingo TV advertisements, Railway Public Address System and Digital Marketing. The report also covers the results of a survey conducted to evaluate the impact of the wacky TV advertisements. The results of other promotional campaigns are obtained from various secondary sources.

ABOUT ITC
The company was incorporated on 24 August, 1910 as the Imperial Tobacco Company of India Limited; its name was changed to ITC Limited in 1974. ITC has a reputation of being one of the World's Most Reputable Company by Forbes magazine, as the World's Best Big Company, Asia's 'Fab 50' and, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC being market leader in its traditional business of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is also rapidly gaining market share even in its nascent business of Packaged Foods & Confectionery. ITC has tried to position itself as a dedicatedly nation-oriented company. According to chairman Y C Deveshwar this commitment beyond the market helps company to create enduring value for the nation and provides the motive force to sustain growing shareholder value. ITC has projected each of its business to international competitiveness and also consciously contributed to enhance the competitiveness of the larger value chain of which it is a part."

ABOUT BINGO
The Bingo brand of chips was launched by ITC in March 2007 with an objective tocapture at least 25 percent market share of the Rs 2200[1] crore branded snack market withinfive years. The launch was symbolic of ITCs tactic of introducing innovative and differentiated products. Bingo was able to differentiate from itself by indulging in zarahatke promotional campaigns and having different price points to engage most consumers. The idea was to create the temptation to take that first bite.This was an extremely ambitious target as the market wasdominated by the Frito Lay group (owned by Pepsi Co) with brands like Lays,Kurkure and Uncle Chips holding almost 50 per cent of the market share followed by Haldiram group with 25 percent of the market share. Bingos portfolio includes a range of products in both Potato Chips& Finger Snacks segment. Bingo has been positioned as ayouthful and innovative snack, offering the consumers a wide choice of flavours that are fastbecoming popular.
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CAMPAIGN STRATEGY AND CONCEPT


1. TV Commercials Insight and Idea: Bingo positioned their flavours by segmenting and targeting people according to geography and cultural mix. They mixed various desi flavours like buttermilk (chaas), pickle (achaar) and chutney with potato chips. Bingo also came up with international flavours like cheese and onion to compete with rival chips companies. Bingo also tried to give variations to the regular circular chips by introducing triangular chips. They came up with unique historical characters like Alibabaas their marketing strategy. Bingo also launched Tedhe Medhe to capture the market of popular snacks Kurkure. To reap the benefits of the identification of these kinds of snacks by the consumers by its Tedha-medha (Twisted) shape, they named the snack accordingly. They targeted mainly the middle and lower middle class population by introducing extra amount per packet and smaller packs to provide them good value for money and flexibility.

Creative Execution: The TV ads used a subtle element of humour and creativity to carry the brand message across to the populace. No famous personalities were used in any of the ads; rather they have shown characters representing Indian middle class population to induce an emotional connect. The fun element normally came from exaggeration of product properties. One ad compares the tanginess of Bingo Spicy Masala with the excitement of an action movie by showing a jaded person in a crowded bleak office eating Bingo, and with every bite, there appears a real life chase scene of bandits by the police. In another ad, the hotness of Bingo Red Chilly Bijli causes a flash of fire in the chest pocket of a guy after receiving a flying kiss from a girl eating the product. Throughout all the TV commercials, Bingo branded itself with its characteristic Toingg.. sound as a brand element to make it more identifiable among the target population. Bingo TV ads are popular for the extensive use of melodrama; the ads use an element of overacting and a bit of larger than life incidents. The regional flavours of Bingo are promoted using characters dressed up in regional dresses in a regional set up like the Bingo Chaas Flavour ad.

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2. Railways Public Addressing System (A must watch promotion):

Bingo railway station ad (SD).mp4

Insight and Idea: Bingo designed a unique promotional campaign to address decline in sales by offering more per Rs.5 pack In India 11 million people travel using railways which invariably run late. People wait for long hours at stations and a lot of snacking happens at this time. This was a captive audience waiting to be targeted.

Creative Execution: Bingo addressed the crowds at railway stations using railways public announcement system in same tone and in an unassuming manner. It was done simultaneously across major stations in South India. The announcement translated in English is:
Passengers, may I have your attention please. Train number 116 Temple express from Mysore to Tirupathi has been delayed by 7 Hours. The train will depart from platform number 8 when driver finishes munching on his pack of Bingo! Premium Salted. Inconvenience caused is deeply regretted. However, it is unavoidable because Bingo! Premium Salted has 25% extra chips which takes longer time to finish. Thank you. TOINGGGG!!! Bingo! Premium Salted. No confusion Great combination.

3. Online Campaign www.bingeonbingo.com has offers, online games, downloads and even mobile games 3,423,546 like the Facebook page and 206,213 fans are actively involved in the forum discussions

The Bingo ad campaign follows the AIDA model (Attention, Interest, Desire, and Action). One of the salient attributes of the Bingo ad campaign is the lack of celebrity endorsements. Bingo! Advertisement campaign is inclined towards humour and uses characters with whom the audience can relate to in real life .The promotion campaign also emphasizes the Indian origins of the product which is a novel way to target the burgeoning Indian middle class. The product development was done in synchronicity with the promotion campaign and this led to the development of different shapes for the chips which aided in increasing the brand recall. The advertisements of mad angles, tedhemedhe, chilly bijli etc. highlighted the form factor of the product which was an innovative way to grab the attention of audience in a market saturated with the established players like Lays and Haldiram. The toingg sound at the end of the advertisement is entrenched in the minds of the consumers as belonging to the Bingo! brand, the popularity of which can be gauged by the huge number of users who have set it as their message tone.

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IMPACT ANALYSIS
Primary Research
A survey was conducted to evaluate the impact of creative promotional campaigns employed by Bingo! We decided to use the following metrics to determine the impact: Brand Recall, Brand Awareness, Brand Shifting, Consumption Preferences and Qualities associated with the product. The survey posed 14 questions to the respondents which aided us to understand the effect of the promotional campaigns and helped quantify the metrics. For instance, the question What comes to your mind first about the Bingo! Ads? had choices: Characters of the commercials, Wackiness, Jingle (Toingg) and Tagline. Out of a total of 42 responses, 26 chose the Jingle, which has the unique sound of Toingg. This is one of the key factors of Brand Recall that the company gained from such high-decibel promotions. The consolidated evaluation of the survey is given below (See Appendix for the complete evaluation) Question Which brand comes to your mind when asked about fried snacks? Which fried snacks ad is the most creative Which snacks food has following tagline: No confusion great combination? Which ad did you recall first? How many times do you eat BINGO? Are Bingo Ads creative? Did the Ads influence you to buy it? Factor/Characteristic Unaided Brand Awareness (Top of the Mind) Brand Recall Aided Brand Recall Advertisement Recall Consumption Preferences Brand Association Consumer Purchase Decision Brand Shifting Product Qualities Result 40% as compared to Lays 44% 56% as compared to Lays 23% 83% respondents answered correctly Mad Angles advertisement was recalled the most One of two respondents consumesat least one Bingo! in a week. 50% strongly believed that the ads were creative in nature. 31 out of 55 respondents believed that the advertisements swayed them to try the product 70% of the respondents moved from Lays to Bingo. 61% respondents believed that the Bingo is Fun and Youthful, as portrayed by the advertisements

Which fried snacks did you prefer before eating BINGO? What describes Bingo!

From the above results, it can be seen that the promotions played a vital role in ITC Foods capturing significant market share. The promotional campaign was able to achieve the following: High Brand Recall and Association, High Brand Shifting (from Competitors). At the same time, it was able to apprise the consumers about the product qualities. Marketing Project| Bingos Promotional Campaigns Page 6

Secondary Research 1. TV Advertisements On television, the company booked 10 to 15 spots per channel per day on youth channels such as Star World, MTV, V Channel, Star Plus and news channels like NDTV and Headlines Today. They also had fixed 20 spots on a several radio channels and promoted in most leading national dailies. In the prime cities, the product was advertised on over 1000 hoardings. According to market estimates, ITC spent close to Rs 100 crore on marketing. Within a month of the launch of the initial advertisements, 70% of the viewers could recall the brand thus capturing a share of the mind of the consumers. Brand recall along with 16 flavours helped ITC to capture 16% of market share in just 18 months. Impact on Top-line (using Datamonitor Reports): Lays which had a 65% market share (See Appendix) in 2007 and 45% in 2008 after Bingos arrival to the savoury snack market. Bingo had a market share of 16% in the same year. Using the revenues from industry reports, Lays lost on Rs. 219.2 crore worth of sales and Bingo had approximately Rs. 413.2 crore. This was a direct consequence of the vivid and over-the-top promotional campaigns adopted by Bingo. 2.Railway Public Address Campaign
Results:

The results were phenomenal. Unsuspecting people thought that it was a regular announcement until Bingos trademark sound TOINGG!! was heard. It was able to capture attention of the consumers who were waiting at the platform Besides hearty loves and smiles on the faces of travellers there was a 32% rise in sales and campaign lasted for a few months People missed the message but not the train. Ten months after it entered the category with its wafer snack brand, Bingo, ITC's foray into the Rs 1,800-crore branded snack market has fetched the company a 16 per cent market share across the country (Source: AC Nielsen) The Bingo! range of potato chips saw sales growing by 48 per cent during the December 2010 quarter(Source: Company reports)

CONCLUSION
The section summarises the key findings from the primary and secondary study performed on Bingos promotional campaigns. The primary research in the form of a questionnaire was used to understand the effect of the several ad campaigns. Overall, the findings point to a successful campaign in terms of Brand Recall (Unaided and Aided) and Brand Shifting. The findings in the secondary research were also aligned with our findings. They were able to penetrate the rapidly growing market and marked their presence with grandeur.

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APPENDIX
1. Survey Questionnaire - https://qtrial.qualtrics.com/SE/?SID=SV_9QArVoE4y2sj6zb 2. Survey Results

Survey Evaluation.xlsx

3. Market Share Charts

Bingo Market Share.xlsx

4. Links to Adverts Mad Angles; Red Chilly Bijli; International Cream and Onion; Bingo Chaas; VaangoPongo; Spicy Masala

BIBLIOGRAPHY
1. Datamonitor Report on Savoury Snacks Food Industry, India. 2. www.bingeonbingo.com 3. AC Nielsen Survey on Savoury Snacks Food 4. ITC Limited Financial Reports 5. http://www.123helpme.com/bingo-chips-strategy-view.asp?id=163827 6. http://www.fnbnews.com/article/detnews.asp?articleid=29446&sectionid=49 7. http://www.financialexpress.com/news/Just-munch-it/271873/0 8.http://www.itcportal.com/media-centre/press-reportscontent.aspx?id=1070&type=C&news=Bingo-ITC-turns-around-foods-business

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