Bingo vs Lays

Project Report On I. T. C keno V/S Frito- deposits V/S Submitted By at a lower place the guidance ofSubmitted to Harpratap Singh- Prof. Santosh DharJ. K. Lakshmipat M. B. A II Semester(Professor MBA Dept)University, Mr. Sachin KadamJaipur (Area Executive ITC Mumbai) Declaration I herewith decl be that my Project Report entitled I. T. C keno V/S Frito- write downs is an authentic work d angiotensin-converting enzyme by me. The Project was undertaken as a graphic symbol of the course curriculum of MBA of J. K. Lakshmipat University, Jaipur, Rajasthan. This has not been submitted to any separate examination body in the first place. Date Signature throw in JaipurHarpratap Singh MBA II Semester Ack promptlyledgement I would comparable to express my sincere gratitude to Prof. Santosh Dhar my project guide from Institute of solicitude, J. K. Lakshmipat University, Jaipur, Rajasthan and my company clear Area Executive Mr. Sachin Kadam for the triple-crown completion of my project I. T. C beano v/s Frito- gets. I sincerely thank them for their extended condescend and encouragement from the initial to the final stages enabling me to develop a discontinue discovering and gived me proper and correct direction for the completion of the Project work.Date Harpratap Singh Place Jaipur MBA II Semester Content S. No. title Page No. 1. Title 1 2. Declaration & Acknowledgement 2-3 3. Executive Summary 5 4. confederacy Profile 6-15 5. Industry on the whole over overtake 16-17 6. Project Objectives 18 7. Research methodological analysis 19-20 8. nearly(predicate) keno & seculars 21-34 9. Observations and Findings 35-37 10. Data Collection, Representation & adaptation 38-48 11. Recommendations 49-50 12. closure 51 13. Annexure 52-53 4. References 54 Executive Summary Since its launch period in March, 2007, lotto as a smear has been through a lots of ups and d protests. Both brand and Sales and Distri onlyion aspects of feedstuffing for BINGO conduct been explored and matured to a rafty extent. though the come onput itself is considered to be in a branch stage, with a grocery store trade of 16% in the mark stings provender category, it has been successful to a large extent in creating the unavoidable dirt recall for the category. With the fast gro produceg sell industriousness in India, arguing has make upd amidst the major grocery store place players.Companies atomic number 18 continually laborious to engage and construct innovate ideas to service this food market. This project aims to study close to ITC keno pungencys and its contest Frito-Lays. The project provides information ab emerge the various procedures followed by ITC with respect to dispersal ambit function, and client management and the comparison and description of data aggregateed in regard with the project topic. The project includes a mix of observation, interview and questionnaires. Initially a period of 45 geezer hood was dedicated to contendeucerk under the guidance of Area Executive Mr.Sachin Kadam of ITC limited. An effort was make to understand the various servicing procedure, the typical areas/ topical anaestheticities, and forms of retail merchants, clanes of nodes and the gross sales and dispersal passage and the retailers point of view for keno and Lays Regular interaction was d star with retailers and distri scarcelyors about the response and flow of increase and physiques respectively along with the competitor Lays. by this it makes easy to understand the process of accessing the competitors response in that outlet. week was dedicated to collect information of Frito-Lays regarding their trade strategy, diffusion and sales network and separate physical exerciseful information from the company prescribeds. This project as well as includes the various tasks disposed(p) to me by my AE and then my observation at retail outlets, the routes/areas/localities and the s ales and distri merelyion process. I concluded my project with nigh of my breath and recommendations, and the questionnaire that I had use to collect the primary data. The reckonings and recommendations help in bankrupt understanding the shortcomings in the sales and distri scarcelyion process of beano. As detect) company Profile ITC is whiz of Indias foremost private sector companies with a market capitalization of all over US $ 33 trillion and a disturbance of US $ 7 billion. ITC is rated among the existences topper Big Companies, Asias fab 50 and the Worlds or so Reputable Companies by Forbes magazine publisher, among Indias Most Respected Companies by work World and among Indias Most Valuable Companies by personal credit line Today. ITC excessively ranks among Indias top 10 Most Valuable (Company) mails, in a study conducted by Brand Finance and published by the stinting Times.ITC overly ranks among Asias 50 take up performing companies compiled by Business Week. ITC has a diversified presence in Cigarettes, Hotels, Paperboards Specialty Papers, forwarding, Agri-Business, case diets Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and anformer(a)(prenominal) FMCG products. While ITC is an outstanding market leader in its traditional military controles of Cigarettes, Hotels, Paperboards, encase and Agri-Exports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods Confectionery, Branded Apparel, Personal Care and Stationery.As one of Indias most valuable and reckon corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this character of inspiration a commitment beyond the market. In his own words ITC believes that its aspiration to crap enduring grade for the nation provides the pauperization force to sustain gro make headwayg share holder encourage. ITC practices this philosophy by not neverth eless driving apiece of its businesses towards international competitiveness but by also advisedly contributing to enhancing the competitiveness of the larger value chain of which it is a part.ITCs diversified status originates from its corporate strategy aimed at creating seven-fold drivers of fatherth anchored on its time-tested subject matter competencies unmatched distribution r separately, quality brand- mental synthesis capabilities, effective deliver chain management and acknowledged service skills in hoteliering. Over time, the strategic forays into revolutionary businesses are pass judgment to garner a signifi undersur introducet share of these emerging richly-growth markets in India. ITCs Agri-Business is one of Indias largest exporters of agricultural products.ITC is one of the countrys biggest foreign exchange earners (US $ 3. 2 billion in the last decade). The Companys e-Choupal possibility is enabling Indian agri burnish significantly enhance its competitiv eness by empowering Indian farmers through the power of the lucre. This transformational strategy, which has already take the subject content of a case study at Harvard Business School, is expected to to a greater extent than and more create for ITC a huge rural distribution al-Qaida, significantly enhancing the Companys marketing r separately.ITCs wholly owned Information Technology subsidiary, ITC InfoTech India Ltd, provides IT services and solutions to leading globose customers. ITC InfoTech has carved a niche for itself by addressing customer challenges through advanced(a) IT solutions. ITCs employment facilities and hotels fox win numerous national and international grants for quality, productivity, recourse and environment management systems. ITC was the scratch line company in India to voluntarily look to a corporate presidential term rating. ITC employs over 26,000 people at more than 60 locations crosswise India.The Company continuously endeavours to enhan ce its riches generating capabilities in a globalising environment to consistently reward more than 4,14,000 shareholders, fulfil the aspirations of its stakeholders and play societal expectations. This over-arching vision of the company is expressively overtaked in its corporate situation statement Enduring Value. For the Nation. For the Shareholder. ITC was incorporated on August 24, 1910 under the image of Imperial Tobacco Company of India express mail. ITC had a humble beginning and in the initial days it used to operate from a leased constituent on Radha Bazar Lane, Kolkata.On its 16th birthday on August 24, 1926, ITC purchased the temporary hookup of land situated at 37, Chowringhee, (now renamed J. L. Nehru Road) Kolkata. Two years later companies headquarter building Virginia House came on that plot. Progressively the ownership of the company Indianised and the name of the Company were changed to I. T. C. Limited in 1974. In recognition of the Companys multi-busines s portfolio encompassing a wide coordinate of businesses, the full stops in the Companys name were removed effective family 18, 2001 and the Company was rechristened as ITC Limited.ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organisational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of comprehensive value creation is backed by brawny corporate governance policies and systems. ITCs corporate strategies are * Create sevenfold drivers of growth by developing a portfolio of world class businesses that best matches organisational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. * Benchmark the health of each business comprehensively crossways the criteria of Market Standing, Profitability and I nternal Vitality. * Ensure that each of its businesses is world class and internationally competitive. * Enhance the competitive power of the portfolio through synergies derived by mingle the diverse skills and capabilities residing in ITC are various businesses. Create distributed leadership deep down the organisation by nurturing talented and focused top management teams for each of the businesses. * Continuously strengthen and refine corporeal Governance processes and systems to catalyse the entrepreneurial energies of management by striking the golden balance betwixt administrator freedom and the need for effective control and accountability. I. T. C and its diversified businesses Cigarettes ITC is the market leader in cigarettes in India and has a wide avow of touristed brands such as Insignia, India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake in its ortfolio. Packaging ITCs Packaging Printing Business is the countrys l argest convertor of paperboard into box. It was set up in 1925 as a strategic backward integration for ITCs Cigarettes business. It affirms a variety of value-added impedeaging solutions for the food beverage, personal products, cigarette, liquor, cellular phone and IT packaging industries. Hotels ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, which was rechristened Hotel Chola. Today ITC-Welcom stem with over 70 hotels is one of the foremost hotel chains in India.Paperboards In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards. ITCs Paperboards business has a manufacturing capacity of over 360,000 tonnes per year and is a market leader in India crossways all carton-consuming subdivisions. Greeting, Gifting & Stationery ITCs letter paper brands Paper Kraft Classmate are widely distributed brands across India. The Paperkraft cause stationery range consists of notepads multi subject notebooks in hard, sof t covers multiple salad dressing formats including spirals, wiros etc.ITCs Greeting & Gifting products include Expressions range of greeting cards and gifting products. Safety Matches ITCs brands of guard matches include iKno, Mangaldeep, VaxLit, Delite and Aim. The Aim is the largest selling brand of Safety Matches in India. ITC also exports premium brands to markets such as Europe, Africa and the USA. Aggarbattis ITC has launched Mangaldeep brand of Aggarbattis with a wide range of fragrances standardized Rose, Jasmine, Bouquet, Sandalwood, sickhur, Durbar, Tarangini, Anushri, Ananth and Mogra.Mangaldeep is also being exported to USA, UAE, Bahrain, Nepal, Sin time outore, Malaysia, Oman and South Africa. life-style Retailing ITC entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed take for men and women in 2000. The Wills Lifestyle chain of undivided stores later expand its range to include Wills Classic formal instituteer (2002) and Wills Clublife evening wear (2003). In 2002, ITC entered into the popular segment with its mens wear brand, John Players.In 2005, ITC introduced Essenza Di Wills, an exclusive line of prestige fragrance products. Food ITC made its entry into the brand & packaged Foods business in August 2001 with the launch of the Kitchens of India brand. In 2002 it grow into Confectionery, Staples and sharpness Foods segments. ITCs brand in Food category includes Kitchens of India, Aashirvaad, Sunfeast, Mint-O, Candyman, and bingo Agri Exports ITCs external Business Division (IBD) is the countrys second largest exporter of agri-products.ITC exports Feed Ingredients (Soyameal), Food grains (Rice, Wheat, and Pulses), Coffee Spices, killable Nuts, Marine Products, and Processed Fruits. E-choupal The e-Choupal model of ITC has been genuinely effective in tackling the challenges be by the unique features of Indian agriculture, characterized by fragmented farms, weak base and the involv ement of numerous intermediaries. Board of Directors Y. C. Deveshwar (Chairman) Executive Director Nakul Anand P. V. DhobaleK. N. Grant Non-Executive Directors A BaijalS.BanarjeeAV Girija Kumar S H KhanS B MathurD K Mehrotra H G PowellP B RamanujamAnthony Ruys Basudeb SenK. VaidyanathB Vijayraghavan demo Winning ITC ITC constantly endeavours to benchmark its products, services and processes to global standards. The Companys seeking of excellence has earned it national and international honours. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of the worlds best big companies. Forbes has also named ITC among Asias Fab 50 and the Worlds Most Reputable Companies.ITC has several(prenominal) startles to its credit ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in conformity (at the highest A+ level) with the latest G3 guidelines of the Netherlands- found Global describe Initia tive (GRI), a UN-backed, multitask holder international inaugural to develop and disseminate globally applicable Sustainability Reporting Guidelines. ITC is the first Indian company and the second in the world to win the prestigious ontogenesis spring Award.It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has obtaind the scale of a movement in rural India. The Development Gateway Award recognizes ITCs e-Choupal as the most exemplary theatrical role in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of its contribution to development priorities kindred poverty reduction, its scale and reliability, sustainability and transparency.ITC has won the inaugural World Business Award, the worldwide business award recognizing companies who incur made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The award has been instituted jointly by the fall in Nations Development Programme (UNDP), outside(a) Chamber of Commerce (ICC) and the HRH Prince of Wales international Business leadership Forum (IBLF). ITC is the first corporate to receive the Annual FICCI Outstanding mess Corporate Triple Impact Award in 2007 for its invaluable contribution capital for the nation.ITC has won the Golden Peacock Awards for Corporate mixer state (Asia) in 2007, the Award for CSR in Emerging Economies 2005 and faithfulness in Corporate Governance in the identical year. These Awards keep up been instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and center field for Corporate Governance. The Companys reverse lightning Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh are the first units of their kind in the world to get ISO 14001-environment management systems credential.ITCs cigarette f actory in Kolkata is the first such unit in India to get ISO 9000 quality certification and the first among cigarette factories in the world to be awarded the ISO 14001 certification ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001 Environment Management Systems certification. ITC Filtrona is the first cigarette filter company in the world to buzz off ISO 14001 ITC InfoTech stimulates pride of place among a select group of SEI CMM Level 5 companies in the world.ITCs Green Leaf Threshing plant in Chirala is the first in India and among the first 10 units in the world to bag the Social Accountability (SA 8000) certification ITC Chairman Y C Deveshwar has received several honors over the years. nonable among them are category Award 2007 SAM/SPG Sustainability lead Award conferred at the International Sustainability Leadership Symposium, Zurich. 2006 Business Person of the family from UK shift & Investment, the UK Government organisation that su pports overseas businesses in that country. 2006 Inducted into the Hall of Pride by the 93rd Indian Science Congress 2005 Honoured with the Teachers Lifetime Achievement Award 2001 coach-and-four Entrepreneur of the course of study from Ernst & Young Retail Visionary of the Year from Images, Indias only fashion and retail trade magazine 1998 Honorary Fellowship from the exclusively India Management Association 1996 Distinguished Alumni Award from IIT, Delhi 1994 Marketing Man of the Year from A&M, the leading marketing magazine 1986 Meridian Hotelier of the Year Some of the other notable recognitions areThe Stockholm Challenge 2006 for the e-Choupal initiative. This award is for using Information Technology for the economic development of rural communities. The Corporate Social Responsibility Crown Award for piddle Practices from UNESCO and Water confirm for its distinguished work carried out in the water sector in India. ITC also received the National Award for Excellence in Water Management 2007 in the beyond the fence category from the CII Sohrabji Godrej Green Business Centre for its leadership role in implementing water and washbowl management practices.The watershed programme also won the Asiatic CSR Award 2007 for Environmental Excellence habituated by the Asian Institute of Management. The Award recognizes and honours Asian companies for outstanding, progressive and world-class projects. The Company also received the Ryutaro Hashimoto Incentive clams 2007 for Environment & Development from the Asia Pacific Forum. This Award aims at promoting information distribution of unattackable practices towards sustainable development in the Asia-Pacific region.The Readers Digest Pegasus Award for corporate social responsibility, recognizing outstanding work through with(p) by socially conscious companies. The Corporate Award for Social Responsibility 2008 from The Energy and Resources Institute (TERI) in recognition of its exemplary initiatives in i mplementing integrated watershed development programmes across 7 states in India. The company also won the award in 2004 for its e-Choupal initiative. The Award provides impetus to sustainable development and encourages ongoing social responsibility processes within the corporate sector.The Enterprise Business Transformation Award for Asia Pacific (Apac), instituted by Infosys Technologies and Wharton School of the University of Pennsylvania for its celebrated e-Choupal initiative. The Business Today Award for the best Managed Company in recognition of its outstanding initiatives in the consumer products segment. The only Indian FMCG company to have featured in the Forbes 2000 list. The Forbes 2000 is a comprehensive be of the worlds biggest companies, measured by a composite of sales, profits, assets and market value. The list spans 51 countries and 27 industries.The NDTV Profit Business Leadership Award for being the Best Food Company of 2007. The Award has been instituted to re cognize organizational excellence. The CNBC-TV18s International Trade Award 2008 for Outstanding Exporter of the Year in the FMCG & Food category. ITC continues its dominance of The Economic Times Brand Equity listing of Indias 100 Biggest FMCG Brands, with three brands from its stable do it to the top five. Gold Flake remains Indias biggest FMCG brand in wrong of sales. Navy Cut ranks at No. 4. ITCs Scissors brand ranks at No 5 and is the only new-fashioned entrant into the top 10.Restaurant magazine has chosen Bukhara at the ITC Maurya, New Delhi as the best Indian eating house in the world and the best restaurant in Asia. Bukhara has also been adjudged one of the top 50 restaurants in the world by the London base magazine The Good Food Guide. Bukhara is the only South Asian restaurant to figure in the list. The Best Supply Chain Practices Award for time-effective and approach-efficient Logistics Management in Organized Retail to ITCs Lifestyle Retailing Business Division (LRBD) Indian snack Industry Snacks are a part of Consumer Convenience/ Packaged Foods segment.Snack is described as a subaltern measuring stick of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed foods tally to the ministry of food processing, the sting food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume. Though precise large and diverse, the insect bites industry is dominated by the unorganized sector. According to an Apeda purview almost 1,000 snack items and 300 types of savories are change across India. The brand snacks are sold at least 25% higher than the unbrand products.Savory snacks have been a part of Indian food habit, since almost ages. Though there is no particular time for snacks, normally they are consumed at teatime. The variety is almost hear-boggling with specialties from all regions, which have gained national acceptance. The industry has been growing roughly 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, payable to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free).AC Nielsens retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional curve towards indigenous snacks and favourable value-for-money perception. Of course the branded segment is such(prenominal) littler at Rs 2,200 crore, which is what makes it so attractive to food Companies that are musical note at bigger shares. In the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldirams at 27% and ITC at 16%. The rest is divided between a legislateful of new entrants, wannabes and legion(predicate) regional players.Of the wide range of snacks acquirable, spud chips constitute a sizingabl e segment of the Indian snack food industry, according to India Infoline. The spud chip market is generally an unorganized industry. Nearly all white tater vine chip snack products are manufactured and sold locally. There is also no uniform standard for packaging, as there is in Europe, the United States and other more developed regions. Many snack foods are sold loose or packaged in poly-pouches, which may only be folded, or in about cases, stapled closed.As the Indian economy continues to grow, and production standards improve, many another(prenominal) snack food companies are making significant investments into plant equipment and packaging machinery. murphy-based snacks, and in particular stump spud chips, are the largest product segment, holding an 85%-share of the salty snack market Pepsi Foods Ltd. , now known as Frito-Lay India Ltd. , produces Indias largest snack food manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lays report card i s an example of how American recipes were adjusted to satisfy local hears.Procter & Gambles Pringles brand of potato crisp was launched in Delhi in 1999. Pringles is also a baked potato crisp, unlike many other potato based Indian snack foods that are fried. P&G currently imports the Pringles product and therefore the product has been priced at a premium and is marketed to a micro-niche. as well to be kept in judgment, organized sector is growing at 15 -20 per cent a year, and unorganized sector is growing at 7-8 per cent. Project Objectives 1. Find and know everything on keno 2. Find out about the competitor Lays . To find out the key points of difference in the process of Distribution & selling, and of lotto and Lays. 4. To understand the workings of DS (Distributor Salesman) 5. To understand the workings of Supervisor 6. To reverse and achieve visibility, accessibility and quality distribution across the identified target outlet. 7. To know and evaluate the response of re tailer about the product. 8. To understand the details of Order Booking and Ready spuding. 9. To find out the key points where Lays has the edge over keno 10.To identify the areas, methods, ideas that can help in increasing bingos sales. Research Methodology It includes the response of beano Snacks from retailers at retail outlets with respect to its competitors. It also includes the responses of competitor Frito-Lays from various sources. Work at retail outlets 1) To check the availability of products. 2) To check visibility of products. 3) SWOT analysis of products. 4) To check how old the product is. 5) To describe the complaints regarding the product. 6) Identifying what would the factor to increase sale.Data collection technique 1) call into question with retailers, customers, distributors, and company officials of ITC. 2) Interview with distributors and company officials of Frito-Lays 3) Primary data via 1) Questionnaire, 2) Observation, 3) Interview 4) Secondary data f rom, 1) Newspaper, 2) Internet sample Plan Sample sizing100 Retailers Sample SegmentationOn the basis Location, & Type of Outlet. Sampling AreaAndheri(includes Andheri East and West, Jogeshweri East & West, Juhu, Irla, J.P. Road, Lalubhai, A. K. Road, Sahar Road,Sher e Punjab, Mahakali, Chakala, Takshila, Lokhandwala, Shastri Nagar, Veera Desai Road, Bhawani Nagar, Marol Military Road, Vile Parle East & West) BINGO No Confusion Great Combination around keno The lotto brand of chips was launched by ITC on 14th March 2007 with an aim to capture at least 25 percent market share of the Rs 2000 crore branded snack market within five yrs.The launch is symbolic of ITC Foods transparent approach of introducing innovative and diametricaliated products in a largely de compared market place. lottos launch was strategically timed around the World Cup. The idea was to get the consumer to take that first bite. This was an extremely driven target according to observers as the market was dominated by the Frito Lay group (owned by Pepsi Co) with a slew of brands like Lays, Kurkure and Uncle Chipps holding 50 per cent of the market share. The other was the Haldiram group with 25 percent of the market share. kenos portfolio includes an array of products in few(prenominal) Potato Chips & Finger Snacks segment. Bingo is positioned as a youthful and innovative snack, offering the consumers a set up(prenominal) of serrated wracks that are fast fitting popular. Bingo used confederacy of leverage synergies, building on consumer insights and high decibel advertising can win the game. The company leveraged its existing distribution network and relationship established with farmers. Its earlier foray into categories like atta and biscuits had already given it access to the supply chain.ITC Foods salted snack brand Bingo continues to tickle consumer sample buds with new variants. The latest to hit the shelves is Tangles, the fourth in its portfolio, after Bingo potato c hips, Bingo Tedhe Medhe and Bingo grisly Angles. The product, which took two years to develop, leave behind be launched in select markets in north and south India, forward being scaled up nationally. The market for western format of snacking is pretty nascent in India, and the addition of variants, the company hopes, will help create new pegs of loyalty. In snack food, consumers are always looking for change, and as a brand we strive to provide this through a unique mix of taste, bite and shapes, says Chittaranjan Dar, CEO, ITC Foods. To begin with, Tangles will be visible(prenominal) in a unique pillow pack shape, in two big Hs, Masala and tomato plant. Subsequently, Tangles will be extended to regional flavours. Bingo, which is estimated to be worth Rs 650-700 crore, is expected to break even this year, say analysts. Since its launch in 2007, the brand has given stiff arguing to market leader Pepsi.While Pepsi brands Lays and Kurkure lead by a huge margin, their shares ha ve taken a hit in new calendar months. According to Nielsen 2010 data, Lays potato wafers reported a drop in share from 48 to 45 per cent, and Kurkure witnessed a 3 per cent decline in market share between January-December 2009 to January-December 2010. On the other hand, Bingos potato chips have notched a 1 per cent increase in share, whereas its sub-brands in the keep going category like Tedhe Medhe and worried Angles have seen a small rise in market share.Other players in the snack food arena are mostly Indian players such as Parle Products, Haldiram and Balaji Namkin, besides a host of local and regional brands. The launch of Tangles is in line with the companys strategy to focus on the bridge segment. Dar explains, Today, potato chips represent almost 70 per cent of snack food consumption, with the bridge category still small. In the next a few(prenominal) years, we expect the numbers to reverse. Thats because Indians are used to snacking alternatives as each region in Indi a has its own snack options. With Tangles, ITC will adopt a similar route to communication and distribution as it did for the other Bingo variants. The new television commercial for Tangles, slated to be on air in a month, will continue to flog the youth plank. On the distribution front, the company will invest in sampling and providing innovative racks to trade. Dar admits that unlike biscuits, sales of chips in rural areas is still a very small part of the market. Bingo currently reaches 5. 5 hundred thousand outlets and it aims to increase it by 2 lakh every year. So is a health variant on Dars wishlist?He is not blind to the opportunity, but notes in a category like snacks, where consumption happens in small quantities, the health proposition needs to be weaved in with taste. Variants/Flavours Bingo Potato Chips Potato Chips Variants Product Description Premium Salted Salted crunchy potato chips International Cream N Onion Unique combination of cheese, cream and leaping onion on potato Chips Red Chilli Bijli Potato chips spiced up with red-hot chillies Spicy Masala Remix A mix of spicy masalas on potato chips. Juicy Tomato Ketchup Succulent, ripe tomatoes on crisp and crunchy potato chips Pickle Tickle Tongue-tickling combination of achaari lemons and potato chips Fiery Red Tomato Potato Chips smeared with dry red chillies and juicy red tomatoes Oye Pudina Combination of crunchy potato chips and sprinkling of fresh Pudina leaves Bingo Mad Angles har angles se MmmmOne of the biggest successes from the Bingo portfolio, Bingo Mad Angles has carved a niche for itself in the consumers creative thinker and is synonymous with the correct triangular snack.A combination of innovative flavours on a traditional khakra base, Mad Angles is a snack that is true to taste and holy flavour delivery as well as shape, making it a snack thats trulyhar angles se MmmmWhats new? Bingo brings you the chaat flavour that you can savour without having to stop by thegali ka chaatwala. Let your fingers dive in to the perfect combination of the taste of fresh pudina, tangy tamarind, creamy yoghourt and of course, the crunchiness of khakra triangles. Available in packs of Rs. 5, Rs. 10 and Rs. 20, the new BingoMad Angles Masti Chaat now adds to the excitement of Mad Angles range from Bingo Bingo Mad Angles Mad Angles Variants Product Description Mad Angles Tomato Mischief A combination of khakra-like crunchy triangles with tangy tomato flavour Mad Angles Chilli Dhamaka Crunchy triangles with a taste of chillies Mad Angles Achaari Masti Mouth-watering combination of Mad Angles and sweet-sour mango pickle Mad Angles Masti Chaat A chaat flavor that you can savour without having to stop by the galli kachaatwaala.The perfect combination of fresh pudina, tangy tamarind, creamy yogurt and of course, the perfection ofkhakratriangles. Bingo TanglesThe latest addition to the Bingo portfolio is Bingo Tangles in masala and tomato flavour s. for each one piece of this innovative crunchy snack is made out of strands loaded with backtalk smacking masala or tantalizing tomato flavours. Once bitten, they break into many more delicious strands in the mouth. Be A Little Dillogical About Lays Brand HistoryLays, the worlds largest and favourite snack food brand, has steadily established itself as an indispensable part of Indias snacking culture since its launch in 1995. With its irresistible taste, international and Indian flavours and youth-centric imagery, Lays has established itself as a youth brand and continues to grow in the kindlings and mind of its consumers. Over the years, Lays has become known for its engaging and innovative advances and campaigns. The brand known for its No one can eat just one campaign has moved its stance to Whats the programme? making Lays the main food of every programme Frito-Lay India Ltd. produces Indias largest snack food manufacturers brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lays story is an example of how American recipes were adjusted to satisfy local tastes. Saif Ali Khan has been the face of the brand for over five years, and has recently been joined by the lord of the Indian cricket team M. S. Dhoni. Both embody the youthful zip fastener and appeal of the brand.In 2008, Lays launched the never-before Fight for Your Flavour allowing consumers to vote for the flavour of their choice. The flavour with the maximum votes would continue in the market. The flavours have been selected by the Lays brand ambassadors Saif Ali Khan and M. S. Dhoni with each celebrity rooting for the flavour of their choice. In November 2008, Lays made yet another innovative breakthrough the Chip-n-Sauce pack. This first-to-market pack has been launched for cricket lovers as they settle in their sit down to savour the best sporting action of the season.The Lays Chip-n-Sauce large pack comes in two unique flavours Chilli Chinese with a Schezwan Sauce sach et and Chatpata Indian with a Tamarind Sauce sachet inside the pack. In June 2009, Lays launched its new positioning platform Lays Be a Little Dillogical. The new Dillogical concept makes an instant impute with youth caught between the desire to succeed and the desire to remain busy with certain moments that offer a deep emotional fulfilment. This friction is like a game between the heart and the head, a struggle between what you want to do and what you have to do.Its all about making things that matter to the heart, happen. The new platform has been launched with a series of ads built around the universal consumer struggle between what the mind asks one to do and what the heart desires. A powerful 360 degree approach supports the new TVC, and has indeed prompted consumers to be a little Dillogical. WINNING FLAVOUR Lays, the world and Indias No 1 potato chips brand from Frito-Lay India, is all set to provide some new lip smacking tastes to its consumers. The four short listed fla vors from a whopping 1. million ideas came from four winning consumers, each of whom gets Rs 5 lakh for their dillogical flavor ideas. Cheesy Mexicana, Tangy Twist, Mastana Mango and Hip Hop sweeten & jalapeno from a three-month long Give Us Your Delicious hell dust (GUYDF) campaign. The four flavors will be sold in the market across India for the next two months with the theme bachega sirf tastiest (survival of the tastiest). The flavor that elicits the maximum consumer votes will not only continue to stay in the market as the mega winner, but its ideator would be awarded a grand prize of Rs 50 lakh and 1% of sales revenue.KurKure Brand History Launched in 1999, this perfect namkeen snack, developed entirely in India, has come to be identified with fun and lovable mankind quirks. It developed an even stronger identity through associations with celebrities like Juhi Chawla (2003) and Kareena Kapoor (2008), well-known Indian actors. Brand Promise Kurkure is a crunchy new-age namk een snack brand which symbolizes light-hearted fun. Embodying the spirit of India, Kurkure has found a home in millions of hearts and minds and enjoys the position of a strong Lovemark brand in India.Juhis vibrant and fun-loving personality complements and embodies the essence of Kurkure. Over the years, Kurkure has journeyed effortlessly from being a snack with a twist to becoming an integral part of Indias teatime menu and an embodiment of adorable human imperfections or tedhapan. Innovations Kurkure has constantly re-invented itself to sustain its relevance to Indian culture and the Indian ethos. Not only does Kurkure provide an inimitable taste and select quality, it has also brought fame and happiness to many through its Chai-time-achievers face on pack initiative.Kurkure Desi Beats Kurkure Desi Beats is an exciting new range of crunchy triangular snacks in irresistible Indian flavours. This newly launched youth-oriented sub-brand personifies our inherent Desi spirit and give s one the pass to be Desi. Desi Beats celeb place the contemporary Indian youth who straddles both tradition and modernity and is confident of his Indian identity. VARIANTS OF FRITO LAYS CHIPS Kurkure Uncle chips Aliva 1. Spanish tangy tomato 1. Masala grind 1. Spicy treat 1. Special 2. American cream and onion 2. cayenne chatka 2. Chatpata Masala 2.Special tomato 3. Classic salted 3. Funjabi(rajma) Others 3. Special salted 4. Magic Masala 4. Rajhasthani Desi defeat 4. Special mint Winning flavours 5. Hyderabadi New 5. Hip hop honey 6. Solid masti twist 5. Cream & herb 6. Cheesy Mexicana 7. Solid masti khatta-mittha 6. pizza Blast 7. Tangy twist 8. Dewana tomato desi beat 7. Sweet Chilly 8. Mastana mango 9. Flirty lime 8. Apple Delight 10. Naughty tomato 9. milk Minis Sugar Vanilla Competition among the variants of Bingo and Lays Chips 1. Spicy Masala remix Chilly Mexicana . International cream onion American cream and onion 3. Juicy tomato ketchup Spanish tangy tomat o 4. Red chilli bingo Magic Masala 5. Premium salted Classic salted Bridges 6. Mad angle tomato Kurkure Dewana tomato 7. Mad angle chilli Kurkure chili chatka 8. Mad angle achari Kurkure Rajhasthani 9. Hatke-Jhatke Funky Kurkure Funjabi 10. Hatke-Jhatke Tomato Kurkure Naughty Tomato 11. Tedhe-Medhe Kurkure Masala munch Market Pattern (India) S. W. O. T Analysis of Bingo Strengths 1. Excellent branding and advertising on TVCs and print ads 2.Great variety of flavours gives customers options 3. Reasonable pricing ensures unbidden purchase 4. Strong backing of ITC Limited brand name helplessness 1. A slight kerfuffle in demand and supply on bingo 2. Lacking in infrastructure as compared to Lays 3. Shallow insight 4. Not well trained and inexperienced salesman Opportunity 1. Leverage successful brand ITC, especially Atta and biscuits 2. Advertise more to attract target group 3. Buy out smaller competition and tie-ups with resort, food chains bane 1. holy terror from local subs titute snacks 2.Balajis strategy winner in terms of measure Observation at W. D. Point a. The WD point is very well connected to all the nearby areas/locality/potential b. ITC use software that is called SIFY to prepare bills and detail information product wise, variant wise, iterate sales reports are make in the help of this software. Format of sales report code of the well(p)s are in this. c. ITC gives 3. 5% margin to his distributors and d. ITC bears fomite cost. e. CALCULATION OF PRICE TO RETALIER (PTR) = f. MAXIMUM RETAIL PRICE ( MRP) 100 + % leeway g. Basic terms LC Line cutBC poster Cut UBO Unique Bill Outlet ABV Average bill value CFC Collaret Fibre Container alphabet Average Bill Cut ALC Average Line Cut TDP brief Dispatch Time h. The salesman here need the commensurate skills and they are not so knowledgeable about the product and the variants i. They lack persuasion and win over technique j. Majority are inexperienced because they are new k. It has been discover ed that a lot of time is wasted in loading the stock in the vehicles and getting the stocks billed l. Salesman turnover ratio is high. Findings I. Works charge wereTo check the availability, visibility and DND (if any) of Bingo at retail outlet. While doing this, I understood about distribution and stocking process at WD (Wholesale Distributor) point which are as follows A) Ordering Booking Process B) Ready Stock Process. From the higher up mentioned works assigned and the objectives given, the Retailer point of view was clear II. To collect information of Frito-Lays and analyze the data thereafter. For that I have interviewed Frito-Lays distributors and company official i. e. Chetna Traders III. In order to overcome weakness, my recommendations and contributions.In the duration of my project I used to visit the market daily, in the initial 7 days as a DS (distributor salesmen) and from the 8th day onwards as a supervisor with DS and analyze the market of ITC Bingo and Frito-Lays. While checking availability and visibility of Bingo snacks at Retail Outlets I came across spare-time activity observations 1) ITC has a good mix of traditional and modern type of distribution channel. 2) The response of customer towards Bingo is positive. 3) At major outlets the sale is good. 4) At big retailers there is a huge demand 5) Like Bingo there is only one Distributor for Lays in Andheri Chetna Traders ) Small Kirana shops and retailer get confused among the variants of Bingo 7) All the shops where Lays and Bingo are not present, Balaji has dominated. 8) Shopkeepers ask for more credit even if they have and are already on credit 9) The total coverage of ITC Bingo snacks falls very short in comparison to Frito-Lays. 10) The problem is the lack of coverage and infrastructure 11) Lack of competent advertisement. 12) Bingo Lacking the theme 13) Balaji is also a cut throat competitor 14) Lays have unflinching PTRs 15) Balaji who who hardly gos on rack and nets also has P TRs and schemes 6) Parts of Jogeshwari, IRLA, lalubhai, Marol Military way are dominated by Balaji and then Lays 17) Unlike Lays and Balaji, Bingo faces a gap in demand and supply. 18) All the variants are never easy at the W. D. point Analysis & Interpretation Demand of Bingo Interpretation 1. The demand for Bingo is good and increasing because Bingo Is positioned as a youthful and innovative snack, offering the consumers with choice in terms of both formats and flavors including Local tastes. 2. Also because the name is catchy, easy to pronounce, recallable, trendy. 3. Bingo identifies itself as a brand which is youthful, fun and colorfulCriteria kept in mind when Retailers sell Bingo Interpretation 1. After having a face to face communication with the retailers it was observed that the major influence they see in the buying pattern of the consumers is that the consumers go for quality first then the size. 2. Similarly the criteria that the retailers keep in mind is at first th e quality then the size but also the margin, because there a lot stiffness among the competitors and their schemes and offers. 3. In low income areas/ spend areas retailers prefer to go for Balaji to any other because the consumers there go for the size/ quantity 4.The big and organized retailer go for the quality and gross profit margin 5. Giving competition to Lays Interpretation 1. Lays has revamped its branding strategy with new promotions featuring actress like Juhi Chawla, Kareena Kapoor etc. 2. About 35 AC BEST buses in Mumbai and vacuum tube in Kolkata are now branded by Kurkure 3. But Bingo has managed to do a dent in Lays market share. Is the fact that ITC spend close to 3 years researching, finding and analyzing the Finger snack segment to come up with its own indigenous variety responsible for Bingos success. Problems go about to sell ITC BingoInterpretation 1. Brand committedness of Lays customer is posing threat to Bingo 2. Stagnant Market Share 3. Unawareness of t he variety of flavours introduced by Bingo 4. Threats of local players like Balaji, Haldiram and Diamond Effect on sales by improving infrastructure Interpretation 1. ITC was the first one to introduce racks which has helped them to achieve a considerable increase in terms of sales and visibility and availability. 2. Lays has heavier promotional activities, weaken infrastructure as it has modified racks which gives the advantage of guardianship more stock 3.It is noted that Lays keeps on bringing in new mailboat ranges which Bingo does not. For e. g. the Rs 15 packets, Rs 30 packet and combo offer of 4 packets of Rs 20 each for Rs 60 4. Lays has more racks than Bingo convince the customer to purchase Bingo Interpretation 1. The convincing is not required because Bingo has maintained the quality throughout since its launch 2. It is in good competition with Lays 3. Consumers can easily recall the brand and the product valuation Bingo and Lays Interpretation 1. It can be seen from the data that at some stages Bingo is at par with the market leader Lays 2.Lays has a better and deeper sixth sense. 3. Lays has more salesman as compared to Bingos 4. Consumers point of view Lays has many and clearly distinguished flavours Rack availability of Bingo as compared to Lays Comparing Bingo To Lays 1. It is difficult to make out the flavour from seeing the colour of the packing which is not the case with Lays 2. Lays penetration is deep, and they have make it by reducing the demand supply gap and arranging better visibility by providing racks more than competitors. 3. Lays also gets the f number hand because it keeps on coming with new schemes, for e. g. hey give 4 Rs20 packet for Rs 60, we have no such schemes 4. Lays even has modified racks, customized to hold/ fit more packets, this is some good strategy keeping in mind that it was ITC who had come up with the rack system. 5. Lays has a higher demand as compared to Bingo because of its promotion, they have charac ters in their advertisement which public/consumers can recollect even at a later stage e. g. Saif Ali Khan, M. S Dhoni whereas in Bingo we do not have such concept. Although it is noticeable but after having a considerable interaction with the retailer this is the most ballpark topic they had put up. 6.The major difference between Lays and Bingo is that Lays as a brand has related itself to cricket. Relating to cricket is the promotion strategy in which the brand relates itself to the events and experience, and in Mumbai or in Maharashtra or in whole of India cricket mean mass, this way Lays already has a strong grip than Bingo. 7. Lays have a better, stronger and an efficient distribution system, talk of the town in terms of availability of product then Lays is always available where Bingo falls short here as the stock is sometimes available and sometimes not causing inconsistency in the availability of the product. 8.Though it can be stated that because Lays has been in the mark et for a much longer period than Bingo so it has the brand advantage but Bingo still lags way behind in the a competent distribution process 9. Lays has 30% more rack installed than Bingo, making it the prime reason for the retailer to buy the product Porters 5 forces Model Threat of new entry * As the market is growing at 30 percent annually, new entrants may consider it a profitable risk * As branded players are priced similarly, new players might penetrate by adopting a lower price or by offering more quantity at the same price (Balaji-strategy) New players with a apparent USP and marketing strategy may find it easier to enter the market (Bingo Strategy) * nonunionised players still account for half of the total wafer segment, thereby discouraging market entry * Veteran players such as Fritolay, Haldiram etc enjoy economies of scale, well-established distribution and good distributor relations. Competitive Rivalry * High Competition Branded Players heterogeneous in cut-throa t competition to increase market share, entice new consumers, find new markets * Low Quality differences among branded players. Quality difference between branded and unbranded offerings is offset by low price offered by unbranded players * Cost of switching is low as all players have a similar pricing strategy * Brand Loyalty is high for branded players Bargaining power of suppliers * Suppliers provide raw materials such as potatoes, spices and other ingredients. * Their ability to raise input costs is high. * Higher cost of input commodities leads to lower margins, making the market unattractive for distributors and retailers (in an already low-margin, high-volume market) shortfall of any input material may also affect production and thereby impact distribution. * Veteran players like Fritolay and ITC already have a well- established network of suppliers. ITCs e-choupal venture permits a steady supply of raw materials at the lowest price. Bargaining power of Buyers * Frito-Lay enj oys a kempt lead with a 45 percent market share for its portfolio of products * rival differentiation is in terms of variants and communication. * Ability to substitute is high as brands are priced similarly and distribution problems for one brand pass on sales for the other. Price Sensitivity is high. An increase in the price of Lays may promote a switch to Bingo for most buyers (except for loyalists) * Threat of substitutes * Indian Snack Segment is high-volume, low-involvement driven (thrives on impulse buy) * All snacks are considered to be substitutes of each other * Biscuits, Wafers and local snacks like Chakli, banana chips, Farsan etc are all substitutes of one another Recommendations/Suggestions 1. For distribution different vehicles should be used which has opening from 3 sides because a lot of time is wasted in the drop the particular order 2.The market report should be prepared more thoroughly 3. The routes should be predefined and the salesman should not mix up the ro utes 4. Some routes are very small to be covered for order booking for Bingo like IRLA Market so it can be combined with Lalubhai market 5. There should be less variations in giving different schemes to multiple shopkeepers as they eventually come to know about the schemes given to other shopkeepers and then they raise their demand to either reduce net rates or give additional schemes 6.Bingo can come up with different shapes of packaging in small areas where there is more sale of Rs 5 packet e. g. triangular packs, as they do not need racks to be put in because different packaging always attracts consumers. 7. Should increase the size of Rs 5 packets, because this is the main reason for less sale of Bingo, on the other hand Balaji is also tough competitor in terms of quantity 8. Company can opt for seasonal promotions because the sales in the month of May-June are very low because the schools are closed. 9.Gift packs or combos with 4-5 flavours can be introduced in this period only 10. Posters on buses and trains can be done for e. g. the way Fanta has utilized the opportunity on local trains of Mumbai 11. Brand ambassadors should be introduced because Bingo has almost completed 5 years in the market, brand ambassadors because people can then relate to the brand and or the product 12. Also because Lays our prime competitor has quite some good brand ambassadors like Saif Ali Khan, M. S. Dhoni 13. Relating Bingo to current burning topics, the same way AMUL does in print ads. 4. Having too many flavours is causing some problem because the customers and even the retailer are not able to differentiate between different variants. 15. Even though its a good strategy as people are forced to try each flavour, the ones which are not going good in the market should be removed from the companys portfolio. 16. This would reduce the problem of confusion amongst the consumers. Conclusion From the survey of the retailers and the market comparison following conclusions can be drawn 1. Bingos sale has noticably increased by providing good infrastructure . Retailers put Bingo next to Lays which is a market leader 3. such an brand image has to created which creates a lasting image, which can be done by introducing a couple of brand ambassadors 4. Lays still has the upper hand because it has been in the market for a longer time as compared to Bingo 5. Improving the distribution level to meet up the competition given by lays is the only way to cover up the demand suppy gap 6. Though Bingo is of good quality as noticed but it is yet to meet International Standards to give more stiff competition to Lays 7.In small localities Balaji is preferrred 8. A lot of time is wasted during the unloading of the order/stock during the ready stock. It is not thecase with Lays because the order for Lays are in bulk and as per the CFC boxes. Annexure QUESTIONNAIRE (RETAIL OUTLET) Outlet Name Outlet Type path 1. How is the demand of Bingo? a) Very good ___b) good ___c) a verage ___ d) at a lower place average __ 2. Stock availability of various brands a) Lays ____ b) Bingo ____ c) Haldiram ____ d) Balaji_____ e) Parle______ 3. What criteria you keep in mind when you sell your product? ) Focus on Quality_____ b) Focus on Price____ c) Focus on Size___ d)Focus on Margin____ 4. How far do you think ITC Bingo has captured market over Lays? a) On a Small Scale_____b) On a Large Scale________ 5. What problem you face to sale ITC Bingo? a) Size____ b) Brand Loyalty for other Brand_____ c) Lack of Awareness_____ d) Any Other 6. Has the sale increased by improving the infrastructure by Bingo? a) Highly Increased____ b) Increased____ c) Somewhat Increased__ d) Not at all increased 7. Do you have to convince customer to purchase Bingo? ) Yes ___ b) No ___ 8. Please assign a value from 1-5 to BINGO & LAYS a) For Excellent5 b) For Very Good4 c) For Good3 d) For Average2 e) For Bad1 9. Do you have a rack of Lays? a) Yes____b) No_____ 10. Do you have a rack of Bin go? a) Yes____b) No_____ References 1. http//www. itcportal. com 2. http//www. nowthatsnifty. com/2012/01/204-lays-potato-chip-flavors-from. html. T9zOwCEggUg 3. http//www. the-top-tens. com/lists/best-flavour-lays-india. asp 4. http//pepsicoindia. co. in/media/fact-sheet. html