Why Pringles are NOT

real Potato chips ?

Discover the interestingly rich history of Pringles
>>>

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Why Pringles are not Potato Chips?
❑ Unlike normal chips, Pringles are not made from raw potato slices.

❑ Pringles are perfectly cut out from a layered paste of dehydrated potato

flakes, corn, rice, wheat, etc. Just like cutting cookies.

❑ 6 Steps to make Pringles. (Actual steps of course involve more complexities)

Step 1: Step 2: Step 3:
Mix paste mixture Spread the paste on Cut-out the perfect pringles shape
along with Oil & water. an even surface. from the paste spread

Step 4: Step 5: Step 6:

Put the cut-out pieces on the tray. Deep-fry it using a saddled stand to Place the fried pringles in a tray and
get the curvy Pringles shape. fill them up in a Pringles Stack box.

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Unfortunately, Britain’s tax law
charged $ 160 Million to Pringles
❑ In 2008 when P&G owned Pringles, before it was sold to Kellogg’s in 2012, they

appealed that Pringles which contains ~42% potato should not be

considered as potato chips but as a normal flavor snack.

❑ P&G initially won the case in High court but lost in supreme court.

❑ P&G’s argument was more of a positioning statement

than a law. Company’s lawyers argued. “It is totally

different with a Pringle; indeed, a Pringle is designed

to melt down on the tongue.”

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Engineering of Pringles’
Hyperbolic Paraboloid Shape
❑ The perfect shape was a result of Fredric Baur’s maths, which took forward by P&G’s

researcher Alexander Liepa in a machine made by a sci-fi author Gene Wolfe.

❑ The hyperbolic paraboloid's intersecting double curvature prevents a line of stress

from forming, which doesn't encourage a crack to naturally propagate.

❑ This makes Pringles’ crunch better

than other chips; also chips at the

bottom of the stack doesn’t break

in a can.

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4P analysis of Pringles
Product
✓ Hyperbolic designed chips with soft
crunchy feels.
✓ More than 100 flavors targeted to
specific region’s preferences.
✓ New product extension such as fat-
free, cracker sticks and light.
Place
✓ Pringles utilizes the distribution of
Kelloggs.
✓ Placement is primarily focused on
premium outlets & modern trade
channels.
✓ Offtake via Hyper-local channels
such as Grofers have increased.
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Price
✓ Pringles operates at premium
pricing structure because of the
uniqueness of product & superior
quality of their chips.
✓ Bundle pricing has been started at
select modern trade channels to
remain competitive.
Promotion
✓ Pringles is focused more on in-shop
point of sale merchandizing.
✓ Pringles has done few TV ads but
not yet very high on spending.
✓ Word-of-mouth marketing & brand
equity from western pop-culture is
currently driving recall in India.
SWOT analysis of Pringles
Strength
✓ Uniqueness of product
(Differentiation).
✓ Packaging superior to competitions.
✓ Flavor availability as per customer
preferences (North America, Asia,
Latin, Europe)
✓ Strong brand recall among affluents.
Opportunity
✓ To launch smaller SKUs to increase
Target group.
✓ To launch an affordable made in
India/ for India version.
✓ To launch product extension into
healthier segment.
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Weakness
✓ High cost of manufacturing.
✓ Product positioning to young
affluent adults.
✓ Low distribution depth, limited to
high-end stores & malls.
✓ High price point.
Threat
✓ Copy-cat products from Local
manufacturer.
✓ Increase in preference for Healthier
alternatives of Chips.
✓ Market saturation in Potato chips
segment due to low entry barrier.
Indian Potato Chips Market Share.
Although a $2 Bn brand Globally, Pringles is
not a major player in Indian Scenario.

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Will India be too tough for
Pringles? Comment.
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