project report on kurkure

INTRODUCTION
The Indian snacks market is worth around US$ 3 billion .The unorganized snacks market is
worthUS$ 1.56 billion .Potato chips and potato-based items from 85 per cent of the
Market. Haldiramsa n d I TC a r e s o me o f t h e l e a d i n g p l a ye r s .F r i t o La y, wi t h a
ma r k e t s h a r e o f 4 5 p e r c e n t ( US $ 5 5 0 million) dominates the market.

P e p s i C o i s a l s o a d o mi n a n t p l a ye r i n t h e s n a c k f o o d s e g me n t i n I n d i a .
P e p s i C o ' s s n a c k f o o d company Frito-Lay is the leader in the branded potato chip
market. It manufactures Lay's PotatoChips; Cheetos extruded snacks, Uncle Chips;
traditional namkeen snacks under the Kurkure andLehar brands; and Quaker Oats.

L a u n c h e d i n 1 9 9 9 , t h i s p e r f e c t ' n a mk e e n ' s n a c k , f u l l y d e v e l o p e d i n I n d i a ,
h a s b e c o me t h e t o r c h bearer of fun and lovable human quirks. It developed an
even stronger identity through celebrityassociations with Juhi Chawla [2003] and
Kareena Kapoor [2008], well-known actors in IndianCinema

Named after the Hindi word for "crunchy", Kurkure is a cheeto-like snack and is the
flagship of Frito Lay's Indian division. It is marketed by Hirani Industries Corp.
(USA incorporated company)in Kenya. It is one of the most popular food products in
India today. The snack comes in 4 flavors.They are Masala Munch (orange pack),
Green Chutney Rajasthani Style (light green pack), ChilliChatka (dark green pack)
and Tamatar Hydrabadi Style (brown pack). There are two new flavorstoo. One is
the Kurkure Xtreme Electric Nimbu and the other is Kurkure Xtreme Risky Chilli.
AS p e c i a l Ed i t i o n f l a v o u r , J a l jh a l o Hi t h a s b e e n r e l e a s e d a s a P u jo S p e c i a l
f o r Du r g a P u ja , 2 0 0 7 . Snacks are of two types extruded & potato chips, Kurkure is the
extruded snack item.

In November 2006, Frito Lay announced plans to release Kurkure to American

markets sometimein 2007. This decision was made after analysts showed increasing
interest in Indian spices in theUSA. Also the introduction in other markets with
a non-resident Indian population such as the UK is planned.

Kurkure was Frito Lay's first big hit in India and succeeded by making a host of
Indian flavours possible and popular in a finger snack. Kurkure is a crunchy new age
namkeen snack brand whichsymbolizes light hearted fun. Embodying the spirit of India,
Kurkure has found a home in the hearts& minds of all and enjoys the position of a strong
Lovemark brand in India.

The spirit and twinkle of Juhi's personality complements and embodies what
Kurkure stands for.O v e r t h e ye a r s , K u r k u r e h a s jo u r n e ye d e f f o r t l e s s l y f r o m
b e i n g a s n a c k wi t h a t wi s t t o b e i n g a n i n t e g r a l p a r t o f t h e t e a t i me me n u t o
b e i n g a n e mb o d i me n t o f l o v a b l e h u ma n ' i mp e r f e c t i o n s ' o r 'tedhapan'

Product Strategy
Features
Building trust and connection by informing the consumers of the authentic
ingredients that go intothe product. Kurkure is a new age Namkeen and made of
edible ingredients including rice meal,corn meal, gram meal, edible oil, seasonings,
salt, spices and condiments and flavours. Its Snack Smart initiative to cut out trans-
fat from its products by using rice bran oil which cuts saturated fat by 40 per cent.
Kurkure has 40% less Saturated Fat, Zero Trans Fats and No Added MSG .All the raw
materials used in Kurkure comply with the Prevention of Food Adulteration Act and Rules
thatgovern the manufacture, distribution and sale of Kurkure. All ingredients are
such that are useddaily in all households today for preparation of various edible
items. Kurkure is a very popular andeasy making product. They are manufactured by
extruding heated dough through a die that forms the particular shape. They may be ball-
shaped, curly, straight, or irregularly shaped. In India, it wascalled "Kurkure". Most popular
were the corn curl kurkure.

Pricing
Competitive pricing Strategy was adopted by the company in order to establish the
brand inIndian markets. Introduction of smaller packs targeted towards small
quantity consumers andmiddle/ low income customers.
Price Range

Small Rs 5/-

Medium Rs 10/-

Large Rs 20/-

Quality Standards
Kurkure is made in automated plants in three locations. These are in Channo (
Punjab ),
Kolkataa n d P u n e . T h e s e p l a n t s a r e a l s o a u d i t e d a n d c e r t i f i e d b y v a r i o
u s e x t e r n a l a g e n c i e s . T h e s e certifications include HACCP (Hazard analysis and
critical control point) certification by
TQCSI( A u s t r a l i a ) , wh i c h c o n f i r ms t h a t p r o d u c t s a r e ma n u f a c t u r e d i n F o o d s
a f e t y e n v i r o n me n t a n d ma n u f a c t u r i n g h a s a d e q u a t e c o n t r o l s t o e n s u r e
p r o d u c t t r a c k i n g , A me r i c a n I n s t i tu t e o f B a k i n g (USA), one of the best auditing
body which confirms process and product safety. Our Plants areISO 14000 certified
which confirms that the manufacturing process ensures environmental safety. The
plants are also certified to ensure that the product, process, environment and people safety
have been maintained at very high level and this certification is issued by OHSAS
18001-(OccupationalHealth and safety assessment series) - (USA).

Ingredients
While concerning the ingredients, it contains major mixture of Rice Meal, Edible
Oil, Corn Meal,Gram Meal, Salt, Spices and Condiments and converted them to
snack like eating crisp sticks thathas never introduced before.

Usage
Kurkure is also positioning itself on the basis of its usage. Its prom
o t i o n a l c a m p a i g n s u r g e consumers to use it on.
Daily basis

At lunch

Dinner

Anytime, anywhere
Servings

With Chaat

With tea

With Raita

With drinks
Occasions

Parties and celebrations

USP

Desi brand name. Easy to idnetify with.

Kurkure
is a synonym of a crunchy food stuff. Infact a brand by the name
TakaTak
tried to imitate it but failed miserably.

Launching its product in indian flavours, which differentiated it from their

competitor itsunique advertisements which features the bubbly Juhi Chawla.

Innovative flavor, affordable price and continuous communication to consumers.

Each Indian region has special snacks. Snacks some time consumed along with
meals or tea, coffeeand other beverages. Banana wafers, chaklis, samosas, namkeens
are few examples of large list of Indian snacks. The change in the family structure is also
changing the food habits in India. Increasein the nuclear families and working women
enhanced the market potential of ready to eat productsand branded snacks. Though
the Indian snack market is highly fragmented with market dominated by home
snacks or those sold by local vendors, changing consumer lifestyle and health
concernmade them to look for hygienic, easy to carry and nutritious branded snacks. Biscuits,
potato wafersand papads are already branded and well received by the consumers.

Pepsi, the late entrant in the Indian snack market decided to find niche market. In the Year
1999,thec o mp a n y l a u n c h e d Ku r k u r e i n t h e I n d i a n M a r k e t . Th e p r o d u c t i s
d e v e l o p e d i n a wa y t h a t i t i s having local taste and western chips. Kurkure is big
success in Indian market. This made Pepsi totake this snack food to other global
markets. Kurkure is already available in the Indian stores in theU S a n d UK
a n d P e p s i w a n t t o e x p a n d i t t o mo r e s t o r e s i n t h e e x i s t i n g g l o b a l m a r k e t s
a s we l l a s expand it to other potential markets. According to the company, Kurkure
will retain its basic flavor but will be adjusted to suit the local requirements. Kurkures
success in the Indian market is mainlyf o r t h r e e r e a s o n s n a me l y i n n o v a t i v e f l a v o r ,
a f f o r d a b l e p r i c e a n d c o n t i n u o u s c o mmu n i c a t i o n t oconsumer. To meet the
regional requirements Kurkure is launched in various flavors like Masala,chilli, green
chutney etc

VARIETIES

Masala Munch (Original)

Solid masti masala twist


Green Chutney Rajasthani Style

Chilly Chatka

Tamatar Hyderabadi Style

Malabar Masala Style

Masala Twists(Solid Masti)

Desi Beats

Naughty Tomatoes

Hyderabadi hangama

S
Sales of top snacks

OTHERS
15%

KURKURE 45%
HALDIRAM 27% KURKURE
ITC
HALDIRAM
ITC 16%
OTHERES

PACKAGING
Style and design matter a lot on the outcome and response of the product. Kurkure
as the product(inside the pack and outside wrapper) has much attractive and catchy
colors style and design whichattracts the customers alot.
Kurkure is available in the market in 3 different packing. Kurkure comes in the air
tight packingand packing material of Kurkure is of high quality so that product will
remain fresh and its tastekeeps secure up to more than four months. Kurkure has
different flavors in the market so the
eachf l a v o r h a s i t s o w n u n i q u e p a c k a g i n g c o l o r c o m b i n a t i o n a c c o r d i n g
 t o i t s t a s t e . B a s i c c o l o r combinations are in green and red colors which all are eye
catching.Ku r k u r e i s a v a i l a b l e t o t h e c o n s u me r o n l y i n p r i ma r y p a c k i n g . No
s e c o n d a r y p a c k i ng i s u s i n g . However they are delivered in container packing from
production plant to shopkeepers or retailers,which carries 48 packs.

Kurkure is available in three different sizes

19 gm

38 gm

75 gm
Promotion Strategy

Kurkure -

Tedha Hai Par Mera Hai

Slogan:

Chai time masti time

Named after the Hindiword for "crunchy",

Kurkure

is acheeto-like snack and is the flagship

of F r i t o La y' s I n d i a n d i v i s i o n . I t i s m a r k e t e d b y

Hirani Industries Corp.

(USA incorporatedcompany) inKenya. It is one of the most popular food products

in Indiatoday.In November 2006,Frito Lay announced plans to release Kurkure to
American markets sometimein 2007. This decision was made after analysts showed
increasing interest in Indian spices in theUSA. Also the introduction in other
markets with a non-resident Indian population such as the UK was planned.In India,
actor-celebrity Juhi Chawlaadvertises Kurkure.

Range

Kurkure Flavors

Masala Munch

Naughty Tomato

Chilli Chatka

Green Chutney Rajasthani Style

Hyderabadi Hungama

Kurkure Desi Beats

Deewana Tamatar

Dildaar Masala

Flirty Lime

Kurkure Solid Masti

Masala Twists

Nimbu Masala StyleTo mark 10 years of its existence, Kurkure, FritoLay's Indian innovation in
the salted snack market,is changing tracks, says Sayantani Kar.It came out in December with a
print campaign which told readers how Kurkure is made from whatcan be found in any
Indian kitchen, underlining that the ingredients are as wholesome as what goesinto
home-made food.

Kurkure now on will be less about flavours and more about ingredients.

The product contains rajma and ragi, staple Punjabi food, apart from the usual rice, corn, spices
and lentil.
What started off as an attempt to understand the infrequent Kurkure consumer, or those who are
notaficionados, has become a tool that the company intends to use over the long
term.F r i t o La y M a r k e t i n g Di r e c t o r D e e p i k a Wa r r i e r s a ys : " We wa n t e d t o
d e mys t i f y Ku r k ur e f o r
thec o n s u m e r s . T h a t m e a n t b u i l d i n g t r u s t a n d c o n n e c t i o n b y i n f o r m i n
g t h e m o f t h e a u t h e n t i c ingredients that go into the product. We will have more
surprising and untried ingredients in our product this year." She says the print ad has
already generated a positive response, and expects salesto go up 20 per cent.

Marketing on the basis of ingredients will also help Kurkure stave off competition
from a growingtribe of roasted snacks, including FritoLay's own Aliva, Parle
Product's Monaco Smart Chips andParle Agro's Hippo. Stressing on ingredients that echo
wholesomeness would consolidate its stand.

FritoLay, the snack food division of PepsiCo, has been active in addressing the need
for healthier snacking habits not just through its roasted snack brand. Its Snack Smart
initiative has cut out trans-fat from its products and changed the oil used for Kurkure to
rice bran which cuts saturated fat by 4 0 p e r c e n t . An a t t e mp t t o c o n t r o l p o r t i o n s
c o n s u me d b y u s e r s h a s s e e n i t l a u n c h R s - 3 p a c k s of brands such as Kurkure.In
order to add further zing to its product portfolio, in January 2008, the company launched
KurkureXtreme, a limited edition variant in two flavorsRisky Chilli and Electric Nimbu
(lime). This was perhaps a move to outdo competition from ITCs snack brand Bingo, which
was launched in March2007, in Indianized flavors like Tandoori Paneer Tikka (spiced cottage
cheese) and Chatkila NimbuAchaar (tangy lime pickle).However, ITC, the Kolkata-based
FMCG major, threw down the gauntlet in 2007 when it used its e x t e n s i v e
d i s t r i b u t i o n n e t wo r k a n d a t t r a c t i v e d i s p l a y s h e l v e s t o l a u n c h a n d p o p u l a r i s e
i t s s n a c k brand called Bingo at places where packaged snacks had not gone before
and in flavours that took Kurkure's strategy a notch higher.Kurkure reacted by launching
new flavours and a variant that looked similar to Bingo called Desi Beats. It also upped
its distribution by going to cyber cafes and telephone booths.Kurkure's move to highlight its
ingredients could be a departure from what other brands are doing and would refresh its
brand recall in a category driven by impulse purchases.

The"Kurkure Chai Time Achievers" campaign:

T h i s wa s t h e f i r s t o f i t s k i n d c a mp a i g n i n I n d i a , l a u n c h e d i n M a y 2 0 0 7
a i mi n g a t p r o mo t i n g versatile usage of Kurkure. Powered by an exciting commercial
showcasing crazy consumers tryingto grab the 'Kurkure frame' - their ticket to famedom, this
campaign truly gives consumers a taste of Kurkure in the most innovative way!! Leading
to replacement of Juhi on the Kurkure packs with p i c t u r e s o f t h e i r o wn a n d t h e i r
n e a r a n d d e a r o ne s , i t g a v e t h e c o n s u me r s c h a n c e to b e c o me c e l e b r i t y
o v e r n i g h t b y p r i n t i n g t h e i r p h o t o gr a p h s a n d r e c i p e s o n a mi l l i o n Ku r k u r e
p a c k s . T h e company claims to have received an overwhelming response, with over
100,000 recipes pouring in,within just 6 weeks. For a brand holding out the reward
of instant fame to its consumers, Kurkurehas indeed delivered on its promise.
Volumes shot by 20% in just one month. Sales have increased by 19% over last year.