BINGO - ITC This is an individual assignment to analyze ITC’s brand extension Bingo. Indian Institute of Management Brand Management – Sec A Submitted To:- Prof. Sameer Mathur Submitted By:- Raj Kumar – PGP30121
BINGO - ITCThis is an individual assignment to analyze ITC’s brand extension Bingo.
Indian Institute of ManagementBrand Management – Sec A
Submitted To:-Prof. Sameer Mathur
Submitted By:-Raj Kumar – PGP30121
Overview - ITC
Overview - ITC ITC is a conglomerate,
company operates in FMCG-Cigarette, FMCG-others, Hotels, Agri business, Paperboards and packaging
ITC Foods, the company has revenues of Rs 5,000 crore
Overview - Brand
Overview – BingoBingo! was launched in March 2007 with a
wide range of exciting packaged salted snacksThe range includes multiple flavor variants of
Potato Chips & Finger SnacksThe brand is associated with youth, fun and
excitement. It fulfils the consumers need for variety and novelty in snacks
At present Bingo! has 5 sub-brands in its portfolio – Yumitos, Tedhe Medhe, Mad angles, Tangles and Galata Masti for different consumer needs
Overview - CategoryParent category for bingo (chips) is Sweet
and savoury snacks grows by 25% in 2014 to reach INR150 billion
Frito-Lay India maintains its leadership with a 32% value share in 2014
Increasing penetrationin rural India with small pack variants is growth driver
2010 2011 2012 2013 20140
20000
40000
60000
80000
100000
120000
140000
160000
60,938
77,328
95,880
119,567
149,867
Snacks Revenue for past 5 years
Year
Overview - Category In year 2014, Chips/crisp contributed
to of 31% of snacks segment revenue Revenue from chips was 46900 mn
For the year 2013-14
2010 2011 2012 2013 20140%
5%
10%
15%
20%
25%
30%
35%
40%
33.5%
29.1%
23.1% 23.4% 24.7%
31%
34.64%1%
1%
32%Chips/Crisps
Extruded Snacks
Nuts
Popcorn
Others
YoY growth for chips segment – Category Growth
Snacks segment wise distribution for year -2014
Bingo – Market Share The Bingo brand of chips was launched
by ITC on 14th March 2007 Market share of Bingo is 7% with
revenue of 10445 mns Frito Lay is dominant player with
32% share, other players are
Haldiram, Bajaj Wafers
YoY revenue growth for Bingo
Market share of Bingo in Indian Snacks market for year -2014
32%
20%8%
7%
4%
29% Frito-Lay India
Haldiram
Balaji Wafers
ITC - Bingo
Prataap
Others
Bingo!
Product
Place
Price
Promotion
4Ps of Brand extension
Product Actual Product: Bingo! In 19
flavors5 categories with variety of
flavorsYumitos - 9 , Mad Angles – 5, Tangles – 3, Tedhe Medhe – 1, Galata Masti – 1
PromotionBingo’s launch was timed around the World
Cup to get advantage of cricket lovers in the country.
Crowdsourcing: There was no celebrity endorsement
ITC booked 10 to 15 spots per channel per day, 20 spots on radio stations and 1000s hoarding advertisement of the product
Digital media was utilized heavily – 47 Lakhs likes on facebook,
Mad Angles Twister application on facebook was another initiative
PromotionBingo national gaming
championship was launched The advertising revolved around
slapstick seek attention
PlaceGrocery Stores, Karyana Stores,
Bakery, WholesaleHORECA (Hotels, Restaurants and
Cafes), Local shops, and Convenience Stores
High availability at big and small retailers across the country
Distribution of more than 4,00,000 large racks to retailers
PriceAvailable in Rs. 5, Rs. 10 and Rs.
20 packsITC has competitive advantage of
backward integration with e-choupal for supply of raw materials.
ITC’s has advantage of high quality packaging from its printing and packaging business.
Segmentation & Targeting
Psychographic (attitude/behavior)
• Sports enthusiastic
• Outgoing • Sociable• Entertainment
lover• fun• Seek flavor
Demographic(Age / Income)
• 15-35 years• Urban youth• Low price
Geography• North- Chilly Spicy• East- Mustard Sting• West- Salted• South- Spicy
Segmentation is done on basis of psychographic, demographic and geographic basis and target groups are defined accordingly.
PositioningBrand slogan: No Confusion, Great
Combination! Entertainment, Youth, Friendship,Fun and ColorfulInnovative: multiple flavors
Bingo! Is positioned as a youthful and innovative snack, offering the consumers with choice in formats and traditional flavor
Competition Fritolay – Market leader• Owned by Pepsico, Largest player in the market• Lays, Kurkure, Uncle Chipps, Cheetos and Leher• More than 50% share
Bingo – Market Challenger• Owned by ITC, • 16% share
Parle Monaco – Market Nicher• Aalo chaat, health conscious variant of chips• Targeting people who like less spicy and masala chips
Other players – Market Followers • Haldiram, Balaji Wafers, Prakash Snacks and MTR• unorganized offerings, aimed at the price-sensitive, less loyal
audience.• Balaji Wafers is a dominated player in West India
Points of Parity
Product category and features that are similar between the product and its competitor. QualityConsumer awarenessPricePotato Chips category
Points of DifferenceVariety of flavorsRegional tasteAttractive packagingHumoristic
advertisingQuantity –
Comparatively more in Bingo
Distribution channels of ITC
Referenceshttp://
www.itcportal.com/businesses/fmcg/foods.aspx
https://en.wikipedia.org/wiki/ITC_(company)http://bingosnacks.com/potato-chips.htmlhttp://
articles.economictimes.indiatimes.com/2015-03-06/news/59844409_1_pepsi-co-india-snacks-sanjiv-puri
http://www.campaignindia.in/Article/227495,itc-foods-spoofs-dubbed-hollywood-flicks-in-new-bingo-chips-campaign.aspx
http://www.rediff.com/money/2007/may/01bspec.htm
http://www.business-standard.com/article/management/itc-foods-not-so-straight-111102400020_1.html
THANK YOU & Good Bye