Presented by Ketaki Desai (B2, roll no 21)

About ITC
Market Capitalization :- US $ 18 billion Turnover :- US $ 4.75 billion India's top 10 `Most Valuable (Company) Brands Diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business,

Packaged Foods & Confectionery,

Information Technology, Branded Apparel, Personal Care, Greeting Cards, Safety Matches and other FMCG products

ITC Foods Launches Bingo

Bingo brand of chips was launched by ITC on 14th March 2007 Innovative and Differentiated Array of products in both Potato Chips & Finger Snacks segment. Fast-moving branded snack market growing 30 % every year

` 2000 Cr Branded Snack Market. Very few National players Frito-Lays and Haldirams

 olitical: P ITC is an established house with a strong presence in the Indian market. Thus to some degree it was insulated from the political atmosphere. conomic: E Rising levels of income. Absence of Lays stock for a prolonged time. ocial: S Developed flavours keeping mind the Indian Audience. echnological: T Introduction of Baked and Non-fried snacks Environment and Legal: Approval from the Food &Drugs Department

STRENGTHS:
-Availability of Raw materials -Availability of Manufacturing facilities -Domestic markets -Urbanization -Catering the market distribution

WEAKNESSES:
-Unable to meet the international standards -High working capital -Large number of intermediaries thus causing a slog in distribution

OPPORTUNITIES:
Change in consumer patterns Rise in income level of customers -Opening of new international markets -Integration of new technologies

THREATS:
Prevalence of cultural taste brands High taxation -Inventory cost -Stiff competition with regional players -Close competing MNC brands

The major competitor of Bingo is Lays with a market share of 45% aldiram with market share of 27% H

Bingo is holding 16%

Regional players are holding rest i.e 22% of the share

3%

6%

8% 3%

Masala Potato chips Salted Potato Chips 8% Tomato Potato chips 3% Chatkila Nimbu Achar Potato Chips Tandoori Paneer Tikka potato chips Mad Angles

8%

Tedhe Medhe
61% Livewires

 SP Unique Selling Proposition U

Unique and Indianised flavors in savory snacks 16 variants

UCP Unique Customer Perception

Innovative Crazy Desi Healthy Adventurous

Target is placement of all merchandising units across the market in a months time reate Identity in a Short Span C Offering a wide range

Reach every nook & corner Distinct Approach ( Innovative & Differentiated products )

12 - 20 years > 50 years 20 35 years 35 50 years

Segmentation: Age Group Attitude/Behavior Geography Taste

Conservative, Reserved, shy ---------------------------Outgoing, Fun loving, Bindaas

Psychographic (Attitude/ Behavior)

Demographic (Age Group)

North

Plain salted

West
South

East

Mustard Nimbu sting flavour Spicy/ Red chilly

Indian Geography

Taste

20-35 Years
west Plain Salted Mustard east Sting Spicy / north Red Chilly

Outgoing, Fun Loving, Bindaas

Nimbu Spicy so th

Recallable

Easy to Pronounce

Catchy

Trendy and Fun

BINDAAS ,MTV, STAR WORLD Channel Website Timed around the World Cup Television Commercials Over 1000 Outdoor Hoardings Merchandise rack (500- 600 0utlets)

Sales Promotion
Promotional Events Tie ups Multi media Campaign including games Advertising Blitzkrieg 4-5 per cent higher margin. The brand also tied-up with the Aero smith rock

concert.
Bingo is using a high-decibel launch campaign strategy.

Product Indian Flavors Variety of Flavors Healthy variants Attractive Packaging Price Leveraging cost-effective manufacturing Frontal Attack on Lays with Packs for` 5,` 10 and` 20

Place 4 Lakh merchandise racks all over India Available in 250000 outlets at the end of 6 months Alliance with Future Group to stock only Bingo Promotion Humor in TV Ads resulting in Awareness and Trial 20 spots on radio Interactive Website www.bingeonbingo.com

Bingo @ Growth Stage

Eaten up Market Share of Lays in 9 months 16% market share @ Snack market Now aiming for 25% Lays share reduce from 65% to 45% High Decibel Advertising Novelty Factor Regional Flavors Distribution Strength

9 MONTHS ENDED 31-12-2010 (UNAUDITED) (RS IN CRORES) NET SALES COST OF GOODS SOLD 415.05 (49.51)

GROSS MARGIN
MARKET EXPENSES MARKET CONTRIBUTION

365.54
(172.35) 193.19

 BRAND PACKAGING ( DIFFERENT SHAPES,COLORS TO DIFERENTIATE THE PRODUCTS) BRAND PROMOTIONS (SEASONAL PROMOTIONS, GIFT PACKS OR COMBOS, TIE-UP WITH BEVERAGES LIKE COCA COLA)

ADVERTISING ( TEMPT THE CONSUMER TO PURCHASE THE PRODUCT BY CREATING AN ANIMATED CHARACTER TO DESCRIBE FLAVOUR)
FLAVORS ( TOO MANY FLAVORS IS CAUSING A PROBLEM WHICH ARE NOT GOING GOOD SHOULD BE REMOVED FROM COMPANYS PORTFOLIO CONTESTS ( LAUNCH A CONTEST LIKE SEND IN YOUR BINGO RECIPE .

References:
w ww.itcportal.com w ww.allbusiness.com w ww.financialexpress.com w ww.wikipedia.org w ww.bingeonbingo.com w ww.google.com