market survey of iitc

7/27/2019 market survey of iitc

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A PROJECT REPORT

ON

A Study Of Market Survey of ITC BINGO Snacks

(Padela Distributor)

Submitted to

University of pune

In Partial Fulfilment of Requirement For The Award Of The Degree Of

MASTER OF BUSINESS ADMINISTRATION (MBA)

BY

Mr. MOHD SHOYEB MOHD ILYAS

Under the guidance of

Prof Sagar Pawar

SINHGAD INSTITUTE OF MANAGEMENT

PUNE

(BATCH 2012-14)


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Declaration

I undersigned hereby declare that the project report On STUDY OF MARKET SURVEY OF ITC

BINGO SNACKS Written and submitted by me to the university of pune, in partial fulfilment of the

requirement for the award of degree of Master Of business Administration under the guidance of Pro

Sagar Pawar is my original work and the conclusion drawn therein are based on the material collected

by myself.

Place:

Date: Mohd Shoyeb Mohd Ilyas


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ACKNOWLEDGEMENT

A successful completion of job is based upon the chain of factors combining together to make an

integral outcome. The cooperation of the factors mixed with sincere effort can lead to best performance.

My project is also no exception to this. Therefore I take this opportunity to express deep sense of

gratitude to all those who have contributed significantly by sharing their knowledge and experience in

the completion of this project work.

First of all I would like to thank the Padela Enterprises Distributor of ITC LTD. For giving me the

opportunity to do my two months project training in their esteemed organisation. I am highly obliged to

my external project guide Mr.Afsar khan who gave me a free hand as far as going about the project

work concerned and for his timely response via e-mail and personal meeting, which immensely helped

in giving the project the initial direction it needed.

I also express my sincere thank to Director, Sinhgad Institute Of Management Dr. Nilesh Gokhale and

my internal guide professor Sagar Pawar for his constant support and guidance throughout the project.

Last but not the least, my wholehearted thanks goes to the retailers and consumer with whom Iinteracted and all those people who indirectly or directly helped me with the project.

Mohd Shoyeb Mohd Ilyas


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Executive Summary The report is an earnest endeavour made to understand the present market scenario of chips in the

Parbhani region and simultaneously ascertain visibility and availability of ITC bingo.

Since its launch period in March, 2007, BINGO as a brand has been through a lots of ups and Downs.

Though the product itself is considered to be in a growth stage, with a market share of 16% in the branded snacks food category, it has been successful to a large extent in creating the required Brand

recall for the category. However, the market research of BINGO despite its extensive market reach has

been abiding with a legion of issues which threaten its growth and profitability as a business category.

The project purports to decipher market survey of ITC Bingo.

After a initial exploratory survey of 1 Wholesale Distributor (WD) points, across 6 routes and 800 +

retail outlets, it was identified that there is a More precisely, the retailer did not get the variants he

demanded in most cases. The stock keeping units (SKU) mix that the retailer required were not

serviced to him by the Distributor Salesperson (DS) in the exact proportion. Lastly it was found out that

there is a need of advertisement of bingo so that it will increase the sale

The scope of the project spanned across Parbhani region. ITC for BINGO operates in Parbhani

via 1 WD and has a reach of more than 800+ retail outlets.


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TABLE OF CONTENTS

SR.NO Chapter Page No

1. Introduction 6

2. Review of Literature 7-29

3. Research Methodology 30-32

4. Data analysis and interpretation 33-45

5. Findings 46-47

6. Suggestion and conclusion 48-49

7. Bibliography 50

8. Appendices 51


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INTRODUCTION

ITC was incorporated on 24 August 1910 as the Imperial Tobacco Company of India Limited. Its

beginnings were humble. A leased office on Radha Bazar lane Kolkata was the centre of the company s

existence. The company celebrated its 16th birthday on 24 August 1926, by purchasing the plot of land

situated at 37,Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. This

decision of the company was historic in more ways than one. It was to mark the beginning of a long and

eventful journey into India s future. The company headquarter building, Virginia House , which came

up on that plot of land two years later, would go on to become one of Kolkata s most venerated

landmarks. The company s ownership progressi vely Indianised, and the name of the company was

changed to ITC Limited in 1974.

In recognition of the company s multi business portfolio encompassing a wide range of

business Cigarettes, hotels, Paperboards and specialty paper, packaging Agribusiness, Packaged

Foods and confectionary, Information technology, Branded Apparel, personal care, Stationary Safety

Matches and other FMCG products. While ITC is an outstanding market leader in its traditional

businesses of cigarettes, hotels, Paperboards, Packaging and Agri exports, it is rapidly gaining market

share even in its nascent businesses of packaged foods and confectionary, Branded Apparel, Personal

care and stationary the full stops in the company s name were removed effective September 18,

2001.The company now stands rechristened ITC LIMITED.

It ranks third in Pretax profit among India s private sector corporation. ITC is one of India's

foremost private sector companies with a market capitalization of nearly US $ 22 billion and a turnover

of over US $ 6 billion.

ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable

Companies by Forbes magazine, among India's Most Respected Companies by Business World and

among India's Most Valuable Companies by Business Today. ITC also ranks among India's top 10

`Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the

Economic Times.ITC also ranks among Asia s 50 best performing companies compiled by Bu siness

week.ITC is one of India s most valuable and respected corporation.


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Chapter NO 2

Review Of Literature

Review Of Literature

Fmcg In India

Analysis Of Fmcg Sector

Food Industry

Indian Snacks Industry

Growth of Snacks industry

Major Food Processing Industry

Market Research

Company Profile

Business

ITC Brands

ITC Bingo Snacks

SWOT Analysis of ITC


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Review of Literature

We regularly talk about things like butter, potatoes chips, toothpastes, razors, household care products

packaged food and beverages, etc. But do we know under which category these things come? They are

called FMCGs. FMCG is an acronym for Fast Moving Consumer Goods, which refer to things that we

buy from local supermarkets on daily basis, the things that have high turnover and are relatively

cheaper.

FMCG IN INDIA

Fast Moving Consumer Goods (FMCG) goods are popularly named as consumer packaged goods. Items

in this category include all consumables other than groceries/pulses. The most common in the list are

toilet soaps, detergents, shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and

household accessories and extends to certain electronic goods. These items are meant for frequentconsumption and have a high return. Typical characteristics of FMCG products include products that

often cater to three very distinct but usually wanted for aspects - necessity, comfort, luxury. They meet

the demands of the entire cross section of population. Price and income elasticity of demand varies

across products and consumers. Individual items are of small value (small SKU's) although all FMCG

products put together account for a significant part of the consumer's budget. Often consumer spends

little time on the purchase decision. Brand loyalties or recommendations of reliable retailer/ dealer drive

purchase decisions. Limited inventory of these products (many of which are perishable) are kept byconsumer and prefers to purchase them frequently, as and when required. A major portion of the

monthly budget of each household is reserved for FMCG products. The volume of money circulated in

the economy against FMCG products is very high, as the number of products the consumer use is very

high. Brand switching is often induced by heavy advertisement, recommendation of the retailer or word

of mouth.

Competition in the FMCG sector is very high resulting in high pressure on margins. FMCG companies

maintain intense distribution network. Companies spend a large portion of their budget on maintaining

distribution networks. New entrants who wish to bring their products in the national level need to invest

huge sums of money on promoting brands. Manufacturing can be outsourced. A recent phenomenon in

the sector was entry of multinationals and cheaper imports. Also the market is more pressurized with

presence of local players in rural areas and state brands. The Indian FMCG sector with a market size of

US$13.1 billion is the fourth largest sector in the economy. A well-established distribution network,

intense competition between the organized and unorganized segments characterizes the sector. FMCG

Sector is expected to grow by over 60% by end of 2010.


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Hair care, household care, male grooming, female hygiene, and the chocolates and confectionery

categories are estimated to be the fastest growing segments, says an HSBC report. However penetration

level as well as per capita consumption in most product categories like jams, toothpaste, skin care, hair

wash etc in India is low indicating the untapped market potential. Burgeoning Indian population,

particularly the middle class and the rural segments, presents an opportunity to makers of branded

products to convert consumers to branded products.


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FAST Moving Consumer Goods (FMCG) sector will witness more than 50 per cent growth in rural and

semi-urban India by end of 2010, according to an analysis carried out by the Associated Chambers of

Commerce and Industry of India.

The Indian rural market with its vast size and demand base offered a huge opportunity that FMCG

companies cannot afford to ignore. With 128 million households, the rural population is nearly three

times the urban. Companies in this sector to benefit include known names such as Nirma, HLL, Dabur,

ITC, Godrej, Britannia, Coca-Cola, Pepsi, among others. Availability of key raw materials, cheaper

labor costs and presence across the entire value chain gives India a competitive advantage.

However the FMCG market penetration is less and the demand is more. Thus manufacturers will have to

deepen their concentration for higher sales volumes. Some of the problems associated with rural markets

are acute dependence on the vagaries of the monsoon, seasonal consumption linked to harvests, festivals

and special occasions, poor roads and power problems and low capita disposable income. The other

difficulty that FMCG companies are likely to face is that of logistics. India's 627,000 villages are spread

over 3.2 million sq km. Delivering products to the 750 million Indians living in rural areas is a tough

task.


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Analysis of FMCG Sector

Strengths:

Low operational costs

Presence of established distribution networks in both urban and rural areas Presence of well known brands in FMCG sector

Weaknesses:

Lower scope of investing in technology and achieving economies of scale, especially in small

sectors and low exports level.

Me -too products, which illegaly mimic the labels of the established brands .These products

narrow the scope of FMCG sector products in rural and semi urban markets.

Opportunities:

untapped rural market. Rising income levels i.e. increase in purchasing power of consumer. Large domestic market a population of over one billion. Export potential.

Threats:

Removal of imports restrictions resulting in replacing of domestic brands. Slowdown in rural demand. Tax and regulatory structure


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Industry Analysis

Indian Food Processing Industry

Food processing industry in India is a sunrise sector that has gained prominence in the recent years.

Availability of raw materials, changing lifestyles and relaxation in policies has given a considerable

push to the industry s growth. This sector is among the few that serves as a vital link between the

agriculture and industrial segments of the economy. Strengthening this link is of critical importance to

improve the value of agricultural produce; ensure remunerative prices to farmers and at the same time

create favourable demand for Indian agricultural products in the world market. A thrust to the food

processing sector implies significant development of the agriculture sector and ensures value addition to

it.

Ministry of Food Processing Industries

The Ministry was set up in 1998 and the industry segments that come under its purview are:

Fruit & Vegetable processing (including freezing and dehydration) Grain Processing Processing of Fish (including canning and freezing) Processing and refrigeration of certain agricultural products, dairy products, poultry an eggs

meat and meat products

Industries related to bread, oilseeds, meals (edible), breakfast foods, biscuits confectionery,

Savoury.

Snacks, malt extract, protein isolate, high protein food, weaning food and extruded food

products. (including other ready-to-eat foods)

Beer, including non-alcoholic beer Alcoholic drinks from non-molasses base Aerated water and soft drinks Specialized packaging for food processing industries.

The Ministry of Food Processing Industries, Government of India, has estimated the size of the

Indian food market at US$ 191 bn (Rs 8,600 bn). The processed food market is projected to be over US$

100 bn, of which the primarily processed food market accounts for 60%, while the value-added

processed food market is around 40%. The average annual growth of the food processing industry has

been around 8% between FY01-FY06. The segments that have driven the growth are the beverages and

meat & meat products and processed fish sectors. The food processing industry in India has a share of

1.5% in the total GDP of the country, and as part of total manufacturing accounts for 9%. India s share

in world trade in respect of processed food is about 1.6%


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An extensive and highly fragmented industry, the food processing sector largely comprises of the

following sub-segments: fruits & vegetables, milk and milk products, beer & alcoholic beverages, meat

and poultry, marine products, grain processing, packaged/convenience food and packaged drinks. A

large number of players in this industry are small sized companies, and are largely concentrated in the

unorganized segment. This segment accounts for more than 70% of the output in volume terms and 50%

in value terms. However, though the organized sector is comparatively small, it is growing at a much

faster pace.

INDIAN SNACKS INDUSTRY

Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is described as a smallquantity 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 According to the ministry

of food processing, the snack food industry is worth Rs 100 Billion in value and over 4, 00,000 tonnes

in terms of volume. Though very large and diverse, the snacks industry is dominated by the unorganized

sector. According to an Aped survey almost 1,000 snack items and 300 types of savouries are sold

Across India. The branded snacks are sold at least 25% higher than the unbranded products. Savoury

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 mindboggling with specialties

from all regions, which have gained national acceptance. The industry has been growing around 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, due to various reasons like Multiplex culture, snacking at home while watching TV,

pubs and bars (where they are served free). AC Nielsen's retail audit shows that the large sales volumes

are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good

value-for money perception. Of course the branded segment is much smaller at Rs 2,200 crore, which is

what makes it so attractive to food companies that are looking at bigger shares. In the branded snacks


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market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldiram s at 27% and

ITC at 16%. The rest is divided between a handful of new entrants, wannabes and many regional

players. Of the wide range of snacks available, potato chips constitute a sizeable segment of the Indian

snack food industry, according to India Info line. The potato chip market is generally an unorganized

industry. Nearly all potato 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

some cases, stapled closed. As the Indian economy continues to grow, and production standards

improve, many snack food companies are making significant investments into plant equipment and

packaging machinery.

Pepsi Foods Ltd., now known as Frito-Lay India Ltd., produces India's largest snack food

Manufacturer s brands, including Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay's story is an

example of how American recipes were adjusted to satisfy local tastes. Procter & Gamble's 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.

Constraints & Drivers of Growth

Growing urbanization, increasing disposable income, emergence of organised food retail, Changing

lifestyles and food consumption patterns are the key factors driving growth for processed foods in India.

These are post-liberalisation trends that have given an impetus to the sector. Consumption patterns in

India have been undergoing a visible shift. Earlier, the share of cereal products was the highest,

followed by milk & milk products, vegetables, edible oil and meat products. However, in recent years,

the growth rates for fruits, vegetables, meat and dairy products have been higher than cereals and pulses.

This shift in turn implies that there is also a need to diversify the food production base to match the

changing consumption preferences.

This shift in consumption follows the pattern observed in developed countries in the evolution of the

global food demand. There is a shift from carbohydrate staples to animal sources and sugar. Going by

this pattern, in future, there will be increasing demand for prepared meals, snack foods and convenience

foods and further on the demand would shift towards functional, organic and diet foods.

Some of the key constraints identified by the industry include:

Lack of suitable infrastructure in terms of cold storage, warehousing, etc Lack of adequate quality control and testing infrastructure Inefficient supply chain and involvement of middlemen High inventory carrying cost High taxation


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High packaging cost Affordability and cultural preference of fresh food Highest priority has been accorded by the Government for the development of infrastructure.

The Government has already taken several initiatives on this front which include developing of food

parks, packaging centres, modernised abattoirs, integrated cold chain facilities, irradiation facilities and

value added centres. The initiative to develop food parks was taken primarily in order to assist the small

and medium enterprises which are unable to invest in capital intensive activities. So far, 22 food parks

have come into operation which provide common facilities like cold storage, food testing and analysis

laboratories, packaging centres, etc

In terms of policy support, the ministry of food processing has taken the following initiatives:

Formulation of the National Food Processing Policy Complete de-licensing, except for alcoholic beverages Declared as priority sector for lending in 1999 100% FDI on automatic route Excise duty waived on fruits & vegetables processing from 2000 01 Income tax holiday for fruits & vegetables processing from 2004 05 Customs duty reduced on freezer van from 20% to 10% from 2005 06 Implementation of Fruit Products Order Implementation of Meat Food Products Order

Enactment of FSS Bill 2005 Food Safety & Standards Bill, 2005

Apart from these initiatives, the Centre has requested state Governments to undertake the following

reforms:

Amendment to the APMC Act Lowering of VAT rates Declaring the industry as seasonal

Integrate the promotional structure

Investments

The total inflow of foreign direct investment in the food processing sector has been around Rs 52.7

billion (US$ 1.2 b) between 1991 to November 2006. During the last five years, FDI witnessed an

inflow of over Rs 24 bn of foreign investment. The highest investment in a single year was in 2001-02

amounting to Rs 10 bn. Maharashtra was among the front-runners to receive the highest share of FDI infood processing during the last five years. The dairy and consumer industries received FDI worth Rs 2.7


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bn each as foreign investment. Nearly 30 per cent of FDI in the food processing sector comes from EU

countries such as Netherlands, Germany, Italy and France. Perfetti, Cadbury, Godrej-Pillsbury, Nutrition

International, Manjini Coma co are some of the successful ventures from EU countries.

Major Food Processing Companies in India

The entry of multinational companies has increased competition in the food processing industry. At the

same time, these companies are facing tough competition from strong Indian brands. This level of

competition has increased innovations, facilitating a sustained growth of the sector and also improvesglobal competitiveness. The emerging new growth phase of the sector is just in its initial stages with the

potential for India to emerge as a leading food supplier to the world.

Market ResearchMarket research is any organized effort to gather information about markets or customers. It is a very

important component of business strategy. ] The term is commonly interchanged with marketing

research ; however, expert practitioners may wish to draw a distinction, in that marketing research is

concerned specifically about marketing processes, while market research is concerned specifically with

markets.

Market research is a key factor to maintain competitiveness over competitors. Market research provides

important information to identify and analyze the market need, market size and competition.

Market research, which includes social and opinion research, is the systematic gathering and

interpretation of information about individuals or organizations using statistical and analytical methods

and techniques of the applied social sciences to gain insight or support decision making.

Market Research for Business

Market research is for discovering what people want, need, or believe. It can also involve discovering

how they act. Once that research is completed, it can be used to determine how to market your

product. Peter Drucker believed market research to be the quintessence of marketing.
http://en.wikipedia.org/wiki/Marketshttp://en.wikipedia.org/wiki/Marketshttp://en.wikipedia.org/wiki/Marketshttp://en.wikipedia.org/wiki/Business_strategyhttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Competitorshttp://en.wikipedia.org/wiki/Peter_Druckerhttp://en.wikipedia.org/wiki/Peter_Druckerhttp://en.wikipedia.org/wiki/Competitorshttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Marketing_researchhttp://en.wikipedia.org/wiki/Business_strategyhttp://en.wikipedia.org/wiki/Markets


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COMPANY PROFILE

ITC Limited is an Indian conglomerate founded on 24 August 1910. The company (formerly known as

Imperial Tobacco Company of India Limited) is currently headed by Yogesh Chander Deveshwar. The

company has its registered office in Kolkata. It employs over 20,000 people at more than 60 locations

across India.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-

Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care,

Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its

traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and Agri-Exports, it is rapidly

gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded

Apparel, Personal Care and Stationery.

It ranks third in pre-tax profit among India's private sector corporations. ITC is one of India's foremost

private sector companies with a market capitalization of over US $ 22 billion and a turnover of US $ 6

billion.

ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable

Companies by Forbes magazine, among India's Most Respected Companies by Business World and

among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most

Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic

Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.

ITC is one of India's most valuable and respected corporations.

ITC diversified status originates from its corporate strategy aimed at creating multiple drivers of growth

anchored on its time tested core competency unmatched distribution reach, superior brand building

capability, effective supply chain management and acknowledged service skills in hotel, over time, the

strategies forays into new businesses are expected to garner a significant share of these emerging high

growth markets in India.

ITC s Agri -Businesses is one of India largest exporters of agricultural products.ITC is one of thecountry s biggest foreign exchange earners (US $ 3.2 billion in the last decades).The company e -

choupal initiative is enabling Indian agriculture significantly enhanc e its competitiveness by

empowering Indian farmers through the power of the internet. This transformational strategy, which has

already become the subject matter of a case study at Harvard Business School, is expected to

progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the

company marketing reach.


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HISTORY OF ITC

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India

Limited'. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence.

The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at

37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs 310,000. The Company's

ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in

1974. In recognition of the Company's multi-business portfolio encompassing a wide range of

businesses - Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards &

Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full

stops in the Company's name were removed effective September 18, 2001.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's

Cigarettes business. It is today India's most sophisticated packaging house. In 1975 the Company

launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-

Welcomgroup Hotel Chola'. Since then ITC's Hotels business has grown to occupy a position of

leadership, with over 70 owned and managed properties spread across India. In 1979, ITC entered the

Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become

the market leader in India. In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and

British joint venture. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name

was changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major

supplier of tissue paper to the cigarette industry. Tribeni Tissues Division was merged with the

Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November

2002.

In 1990, leveraging its agri-sourcing competency ITC set up the AgriBusiness Division for export of

agri-commodities. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with

Soya farmers in Madhya Pradesh. Now it extends to 9 states covering over 4 million farmers. ITC's first

rural mall, christened 'Choupal Sagaar' was inaugurated in August 2004 at Sehore. On the rural retailfront, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and

Uttar Pradesh. 18


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In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002,

the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam

books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting

cards in eight languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003,

the company rolled out 'Classmate', a range of notebooks in the school stationery segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality

relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded

its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also

initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006,

Wills Lifestyle became title partner of the country's most premier fashion event - Wills Lifestyle India

Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B

platform for the Fashion Design industry. In 2007, the Company introduced 'Miss Players'- a fashion

brand in the popular segment for the young woman. In 2000, ITC spun off its information technology

business into a wholly owned subsidiary, ITC InfoTech India Limited, to more aggressively pursue

emerging opportunities in this area.

ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal

competencies to create a new driver of business growth. It began in August 2001 with the introduction

of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and

staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaad atta

(wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment.

ITC's entered the fast growing branded snacks category with Bingo in 2007.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain

found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches

brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC forayed into the marketing of agarbattis (incense sticks) in 2003 marked the manifestation of its

partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep

across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and

Nagchampa. ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & bodycare products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills

provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women

(Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the

Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels 19 and Soaps in

September, October and December 2007 respectively. The Company also launched the 'Superia' range

of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De

Wills & Vivel range of soaps in February and Vivel De Vills range of shampoos in June 2008.


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THE ITC LEADESRHIP

Flowing from the concept and principle of corporate governance adopted by the company, leadership

within ITC is exercised at three levels. The Board of director at the apex, as trustees of shareholders,

carries the responsibility for strategic supervision of the company. The strategic management of thecompany rests with the corporate management committee comprising the whole time directors and

members drawn from senior management. The executive management of each business division is

vested with the Divisional Management Committee (DMC), headed by the chief Executive .Each DMC

is responsible for and totally focused on the management of its assigned business. This three tiered

interlinked leadership process creates a wholesome balance between the need for focus and executive

freedom, and the need for supervision and control

ITC VALUES

The ITC Vision

Sustain ITC's position as one of India's most valuable corporations through world class performance,

creating growing value for the Indian economy and the Company s stakeholders

The ITC MissionTo enhance the wealth generating capability of the enterprise in a globalizing environment, delivering

superior and sustainable stakeholder value

BUSINESSES

Cigarettes

ITC is the market leader in cigarettes in India. It s highly popular portfol io of brands includes Insignia,

India Kings, Classic, Gold Flake, Silk Cut, Navy Cut, Scissors, Capstan, Berkeley, Bristol and Flake.

ITC's cigarettes are produced in its state-of-the-art factories at Bangalore, Munger, Saharanpur and

Kolkata. These factories are known for their high levels of quality, contemporary technology and work

environment.

ITC's has presence in overseas markets as well. In the extremely competitive US market, ITC offers

high-quality, value-priced cigarettes and Roll-your-own solutions. In West Asia, ITC has become a key

player in the GCC markets through growing volumes of its brands.


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Foods

ITC made its entry into the branded & packaged Foods business in August 2001 with the launch of the

Kitchens of India brand. A more broad-based entry has been made since June 2002 with brand launches

in the Confectionery, Staples and Snack Foods segments.

The Foods business strives to deliver quality food products to the consumer. All products of ITC's Foods

business available in the market today have been crafted based on consumer insights developed through

extensive market research. ITC's state-of-the-art Product Development facility is located at Bangalore.

The Foods business is represented in 4 categories in the market. These are:

Ready To Eat Foods Staples Confectionery Snack Foods

ITC s six brand of food include:

Kitchens of India Aashirvaad Sun feast mint-o Candyman Bingo!

Lifestyle retailing

ITC s ventured into Lifestyle Retailing Business Division through its Wills Lifestyle chain of exclusive

specialty stores. Wills Lifestyle, the fashion destination, offers a tempting choice of Wills Classic work

wear, Wills Sport relaxed wear, Wills Club life evening wear, fashion accessories and Essenza Di Wills

an exclusive range of fine fragrances and bath & body care products and Fiama Di Wills - a range of

premium shampoos and shower gels. Wills Lifestyle has also introduced Wills Signature designer wear,

designed by the leading designers of the country. With a distinctive presence across segments at the

premium end, ITC has also established John Players as a brand that offers a complete fashion wardrobe

to the male youth of today.

Education & Stationary

ITC made its entry into the stationery business in the year 2002 with its premium range of notebooks.

ITC's Education and Stationery Products are marketed under the brands "Classmate" and "Paperkraft".

The Classmate range of products is targeted at satisfying education & stationery needs of students &

young adults. The product range includes Notebooks, Math Instruments, Scholastic Products as well as

Writing Instruments.


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The Paperkraft range of products aims at satisfying the stationery needs & office consumables need of

office executives & working professional. The continuously expanding product range under Paperkraft

includes Premium Business Paper, Paper Stationery, Markers & Highlighters.

Safety Matches

ITC s range of Safety matches include popular b rands like i Kno, Mangaldeep, Aim, Aim Mega and

Aim Metro. With differentiated product features and innovative value additions, these brands effectively

address the needs of different consumer segments. The Aim brand is the largest selling brand of Safety

Matches in India.

ITC also exports regular and premium safety matches brands to markets such as Middle East, Africa and

the USA. ITC aims to enhance the competitiveness of the small and medium scale sectors through its

complementary R&D based product development and marketing strengths, especially the breadth and

depth of the Company's trade marketing and distribution.

Aggarbattis

ITC commenced marketing Agarbattis (Incense Sticks) sourced from small-scale and cottage units in

2003. Mangaldeep Agarbattis are available in a wide range of fragrances like Rose, Jasmine, Bouquet,

Sandalwood, Madhur, Durbar, Tarangini, Anushri, Ananth and Mogra.Durbar Gold is a new offering

from Mangaldeep launched in Andhra Pradesh and has received wide consumer acceptance. The

premium range from ITC, Mangaldeep Spriha has two offerings, Pratiti and Sarvatra and is specially

hand rolled by Cottage Industries, Sri Aurobindo Ashram, and Pondicherry.ITC BRANDS


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ITC BINGO SNACKS

Savoury snacks have been a part of Indian food habits since ages. The Rs 2000 crore Indian snacks

market is growing at a rate of 30 percent. The booming retail scenario has only added fuel to the fire.

Bingo, with its unique advertising strategy has come up as a strong player in the snacks market. There

was only one major player in this market before Bingo was launched, Frito Lays. But now with Bingo

flooding the market with its varied flavours; Lays executives have started standing on their toes. In thiscut-throat market, both the players are coming up with newer and innovative ideas to capture a larger

chunk of this market.

ITC has had its success with products like Sunfeast wherein brand ambassadors like Shahrukh Khan

have increased their popularity. They did not apply the same strategy for Bingo keeping in mind that

they had to do something different in order to overpower the market leader, Frito Lays. Hence they have

come up with eye-catching advertisements that attract the consumers, especially the youth. They are

also strategically sponsoring a lot of events for channel V, aiming to target the major consumer of potato

chips, the college going youth. Instead of limiting themselves to conventional mediums of promoting

the product, they are exploring alternatives like a website of their own, www.bingeonbingo.com , which

has interactive role playing games which help in connecting with the consumer better. How Bingo, a

new product, attempts to take over an established player like Lays is why we chose this product. The

ongoing battle between ITC and Frito Lays would be an interesting analysis.

.
http://www.bingeonbingo.com/http://www.bingeonbingo.com/http://www.bingeonbingo.com/http://www.bingeonbingo.com/


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SWOT Analysis Of Bingo

Strengths

Effective utilization of diversified Business Portfolio.ITC has a diversified business portfolio, hence is

optimizing its business by internalizing a lot of its activities across subsidiary businesses. ITC Tobacco

distribution network, which has reach across the country with its 2 million outlets, is being used for

deeper penetration into the supply chain. Since ITC cigarette brands are available at almost all paan

shops across the country, market penetration into the hinterlands would be easier. Flashy packaging for

Bingo is being done internally using its packaging and printing subsidiary. ITC Foods is using its e-

chaupal network and rural retail for sourcing potatoes. Using the business subsidiaries will add synergyto the business by giving better coordination, better products and lower costs. Eye Catchy Promotion,

Brand Recognition

ITC has hired the services of O&M for advertising and branding Bingo. The advertising blitzkrieg

across the country is to create brand awareness and an instant recall among the customers. The

advertisements of Bingo are impeccably etched in the minds of everyone who has seen them once. The

recall value of advertisements like Bingo and Flamingo makes the consumer curious enough to take the

first bite. To promote its brand among youth, Bingo is also sponsoring various events at colleges. ITC is


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offering 4-5 % higher margins to the retailers for promoting Bingo better as compared to the

competitors. According to ITC foods Chief Executive Ravi Naware, The brand name signifies victory.

We have employed various strategies to successfully create an identity in the market in a short span of

time.

The product mix consists of potato chips and finger snacks. The potato chips consist of 10 variants,

including 4 innovative ones like tomato and salted flavours. The finger snacks include 6 variants. The

launches have been made keeping in mind the regional differences in the palate of the Indian populace,

like a dairy option of potato chips launched in South India in particular.

Weaknesses

By providing pack sizes of Rs 5 and Rs 10, and almost 16 flavours of its snacks, Bingo will have a large

number of SKUs to maintain. This would cause problems in forecasting and stocking, thereby causing

more anxiety regarding what to produce and what not to. The distributors and retailers would have to

take small quantities of all varieties, and some high selling flavours might stock out, while sales of the

low selling ones would leave huge stockpiles. The consumer also has to taste 16 different flavours, and

if she does like the first flavour, she might not taste other flavours. Lays also has large number of SKUs,

but Lays has been tested over time and hence has established its brand already. Bingo on the other hand

has flooded the market rather than bringing them gradually.

A lot of reaction to the Bingo advertisements has been very negative. The advertisements are

sometimes classified as irritatingly humorous and some consumers do not like the adverts. Though the

objective of the advertisement is to create immediate brand recognition for an impulse buy product, the

negative response to the advertisements could also shun potential customers

Opportunities

The Indian Organized snacks sector is growing at about 30% annually, with a big untapped market.

Potato chips market is estimated to constitute nearly 85% of India total salty snack food market of about

Rs 2,000 crore. In terms of volume, compound annual growth rate in the period 2001-2005 was 2.5%.

There is only one organized large player, Frito Lays, at the national level in the packed snacks segment

apart from some regional players. This is a big opportunity for Bingo.ITC Bingo biggest competitor and

also the market leader Frito Lays has been facing supply issues regarding potatoes recently. More than

50 percent of the supplies of Frito Lays come from villages of Maharashtra. There has been a


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disagreement between farmers and PepsiCo. ITC, looking to develop its sourcing base from the same

area, can capitalize on this.

Threats

Lays is the market leader in the Potato Chip market. It currently leads the potato chip market with a 77%

share. There is a definite first mover advantage with lays, it has established itself in the snack food

market and has recognition in the market. The backing of Pepsi distribution network has provided a

deep penetration of the potato chips. Lays is also beginning to start with a large variety of chips to

compete with Bingo. Frito Lay is still cashing in on the popularity and brand loyalty .Because of being

the first mover, there is more awareness among consumers with regard to this product. With the number

of years lead that it has against Bingo, it is a more popular brand. Lays was the only major player in the

Chips market, leaving aside premium brands as Pringles, and thus there is a significant amount of

customer loyalty for Lays.

Limited overheads because of local production and distribution, family management, very focused

product lines and lower marketing expenditure help the unorganized sector to grow. Consumers also

consider local brands to be cheaper and fresher as compared to packaged food. For large organized

players like Bingo and Frito lay, the prominent unorganized sector in rural India could thus be a

potential threat. As a response to Bingo advertising blitzkrieg, Frito lay has started a major advertising

campaign for Kurkure. They have started a consumer promotion called chai time achiever where

consumers can send in recipes using Kurkure, out of which 25 winners will be chosen and featured on

packs of Kurkure. This contest is being promoted through television, radio and outdoor campaign, as

well as through display units at points of purchase.

SWOT ANALYSIS OF ITC

Strengths

ITC leveraged it traditional businesses to develop new brands for new segments. ITC is a diversified

company trading in a number of business sectors including cigarettes, hotels, paper, agriculture,

packaged foods and confectionary, branded apparel, personal care, greetings cards, Information

Technology, safety matches, incense sticks and stationery.


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Weaknesses

To fund its cash guzzling FMCG start-up, the company is still dependent upon its tobacco revenues.

Cigarettes account for 47 per cent of the company's turnover, and that in itself is responsible for 80% of

its profits. So there is an argument that ITC's move into FMCG (Fast Moving Consumer Goods) is being

subsidised by its tobacco operations. Its Gold Flake tobacco brand is the largest FMCG brand in India -

and this single brand alone holds 70% of the tobacco market. Unrelated diversification is also a major

weakness of ITC.

Opportunities

Core brands such as Aashirwad, Mint-o, and Bingo! And Sun Feast (and others) can be developed using

strategies of market development, product development and marketing penetration.ITC is moving into

new and emerging sectors including Information Technology, supporting business solutions. e-Choupal

is a well thought of initiative that could be used in other sectors in many other parts of the world. It is

also an ambitious project that has a goal of reaching 10 million farmers in 100,000 villages Per capita

consumption of personal care products in India is the lowest in the world offering an opportunity for

ITC's soaps, shampoos and fragrances under their Wills brand.

Threats

The obvious threat is from competition, both domestic and international. ITC's opportunities are likely

to be opportunities for other companies as well. Therefore the dynamic of competition will alter in the

medium-term. Then ITC will need to decide whether being a diversified conglomerate is the most

competitive strategic formation for a secure future.


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CHAPTER NO 3

RESEARCH METHODOLOGY

Statement of Research Problem

Objective of Study

Limitation of Study

Proposed Methodology

Sources of data


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STATEMENT OF RESEARCH PROBLEM

Management must define a problem in broader way. Because it is said that defining the problem is half

solved and the objective of my research is to study to observe the market survey of bingo.

Objectives of the study

The project aims to achieve the following objectives during its course of study:

1. To observe the market demand of bingo

2. To study the factors which influence the customer buying behaviour

3. To observe the market standing of bingo chips as compare to competitors.

4. To find the most appealing way of advertising the product.

Limitations of the studyThe study though being done at a Parbhani level, takes into account the generalizations and

repeatability of processes to be considered for the models to be implemented, to make them scalable atwider levels of geography. The study has been done on a 75% coverage area Parbhani to eliminate the

risks of unnecessary and avoidable generalizations. The focus on more firsthand data and information

also reduces the error rate in case of data procured from already inefficient sources.

Since, the objectives of the project are implemented and tested across in WD point, it reduces the

chances of erroneous assumptions and wrong premises. However, one limitation of the project can be

the small size of geography covered to infer any results on a national level. But, even 72% of a territory

is far bigger than a good sample space.Thus this limitation actually becomes the strength of the project.

Lastly some obvious limitations of the study are:

Issues related to scalability of the models proposed , though being tested at various Points in

Parbhani , still can be debatable and might undergo changes in case of a Different geography.

Proposed MethodologyDetailed Methodology

The basic methodology is to formulate processes and identify the right places to implement them

in order to achieve the objectives. Thereafter, these results obtained from the first hand data

combined with a historical data are used to make inferences regarding the objectives to be

fulfilled. The study then would aim at formulating processes to rectify them.

Covering as many routes as possible with the Distributor Salesperson (DS) on his sales day. Focused group discussion with WD, DS and the retailers across routes.


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To understand the Sales and Distribution chain from WD to Retailer. To understand the various processes involved in the entire chain. To identify the inefficiencies and inaccuracy in the processes.

.

Sources of Data

Primary data: Primary data are those data that are collected for the first time and they are original in

character. Since the undertaken involves an exhaustive study of market survey of ITC bingo snacks

with current market leaders.

The methods for the collection of primary data in this study include direct interviews with the retailer

and filling up of questionnaire with the retailer.

Secondary data: secondary data are those data which are already collected by someone else for a

purpose and are available for the present study.

The various sources of the secondary data used for this study are:

1. The company website

2. The internet

3. Previous reports

4. Marketing Journals and articles


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CHAPTER NO 4

DATA ANALYSIS AND INTERPRETATION


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Q 1. Do you sell Snacks ?

a)Yes 97

b)NO 3

Option frequency percentNo 3 3Yes 97 97Total 100 100

Inference : from the above analysis of the given sample of 100 respondents it is concluded that out of100 people 97 sell snacks and 3 not sell.the availability is 97 percent.

a)Yes97%

b)NO3%

snacks


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Q 2. How frequently do you buy chips?

a)Every alternate day 60b)Weekly 30c) Monthly 6d)less than once a month 4

consumption Frequency PercentEvery alternate day 60 60Weekly 30 30Monthly 6 6Less than once a month 4 4

The above charts show that retailer buy chips 60% every alternate day and 30% on weekly basis and 6%monthly and 4% less than once a month.

0

10

20

30

40

5060

a)Everyalternate day

(60)

b)Weekly(30)

c) Monthly(6)

d)less thanonce a

month (4)

buy chips

Series1


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Q 3. Which type of brand of chips you sell more?a) lays 50b)Bingo 10c)Haldiram 10d)Balaji 25e) Uncle chips 5

Brand name Frequency PercentLays 50 50Bingo 10 10Haldiram 10 10Balaji 25 25Uncle chips 5 5

From the above chart that lays is having 50% availability and balaji having 25%, bingo and haldiram is10%.

a) laysb)Bingo c)Haldiram d)Balaji

e)Uncle chips

50

10 10

25

5

chips sell moreSeries1


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Q 4. According to you whose opinion matters influences most to the customers when theychips to buy?a)Friendsc)Own decisionb)Family

d) celebrities

Opinion Frequency PercentFriends 30 30Own decision 15 15Family 25 25Celebrities 30 30

According to the above analysis it is concluded that friends and celebrities to buy cips and rest are thefamily own decision

30%

15%25%

30%

opininion influencesa)Friends c)Own decision b)Family d) celebrities


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Q 5. Where customers do buys chips mostly?

a)Workplace 5

b) college 20

c) On travelling 50

d)at malls during picnics and outings 25

Where do buy Frequency Percent

Workplace 5 5

College 20 20

On travelling 50 50

At malls during

picnic

25 25

From the above table we can see that customers buy mostly buy chips on travelling and rest of the malls

and colleges.

a)Workplace5%

b) college20%

c) Ontravelling

50%

d)at mallsduring picnicsand outings

25%

customer buy chips


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Q 6. What do customers look for when they buychips?a)Freshness 10

b)Crispiness 50c)Flavors 25d) variety 15

Attributes Frequency Percentfreshness 10 10Crispiness 50 50Flavours 25 25Variety 15 15

From the above chart we can infer that 50% of the retailer feel that crispiness has more demand in their

area when compared to freshness, flavours and variety stands at 10%,25%, 15%.

a)Freshness b)Crispiness c)Flavors d) variety

10

50

2515

looks in chipsSeries1


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Q 7. According to you which media of advertisement attracts more customer to buyBingo?a)Television 60b)Internet 5c) Hoarding 10d)Newspaper 25

Media Frequency PercentTelevision 60 60Internet 5 5Hoarding 10 10

Newspaper 25 25

According to the above analysis it is concluded that television emerges as the best media for advertisement of snacks that compel consumer to buy. It is much more than other ways as out of 100respondent 60are attracted through television media while the internet are the least attracting ,media.

a)Television60%

b)Internet

5%

c) Hoarding10%

d)Newspaper25%

media of advertisement


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Q 8. Which company gives maximum counter sales related to snacks?a)ITC (Bingo) 15b) Frito lays 60c)Haldiram 10d) Balaji 25

Company name Frequency PercentITC (bingo) 15 15Frito lays 60 60Haldiram 10 10Balaji 25 25

From the above graph we can see that see that the maximum sale is given by frito lays which is 60%and it hasthe market leader in snacks.

0

20

40

60

a)ITC (Bingo)(15)

b) Frito lays(60) c)Haldiram

(10) d) Balaji(25)

sales of snacks

Series1


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Q 9. Between Lays and Bingo, which according to you is Popular BrandLays/Bingoa)Lays 75b) Bingo 25

Well known brand

Frequency Percent

Lays 75 75Bingo 25 25

From the above table we can infer that lays is more popular brand compare to bingo.

a)Lays(B138 b) Bingo

75

25

popular brandSeries1


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Q 10. Why?a) Tastes better(90) 90b) Easily Available (10) 10

Taste Frequency PercentTaste better 90 90

Easily available 10 10

From the above the we can say that taste is more preferable than availability.

a) Tastesbetter(90)

90%

b) EasilyAvailable (10)

10%

Chart Title


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Q 11. What are the changes would you like to see in ITCBingo?

a) Flavours 10b) Quantity 50

c) Price 30d) Package 10

Attributes Frequency Percent

Flavours 10 10

Quantity 50 50

Price 30 30

Package 10 10

From the above table we can infer that 50%of the retailer would like to see the change in quantity,10%

in flavours,30% in price,10% in package

0

10

20

30

40

50

a) Flavours b) Quantity c) Price d) Package

changes in bingo

Series1


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Q 12. If your preferred brand is not available for the repeat purchases then what will youdo?a) Wait for availability 20b) change the brand 15c)Go to other wholesaler to search for yourpreferred brand 55

d) Nothing 10

Option Frequency Percent

Wait for availability 20 20

Change the brand 15 15

Go to other wholesaler to search

for your preferred brand

55 55

Nothing 10 10

According to above analysis it is concluded that mostly people are loyal to the brand as in the absence

of availability of their brand mostly people like to search for it sometimes they are ready to postponetheir purchase.

20

15

55

10

a) Wait foravailability

b) change the brand c)Go to otherwholesaler to search

for your preferredbrand

d) Nothing


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Chapter No 5

Findings


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The study shows that retailer buy chips 60% every alternate day and 30% on weekly basis and 6%

monthly and 4% less than once a month.

When compared chart that lays is having 50% availability and balaji having 25%, bingo and haldiram is

having 10%.

The study shows that friends and celebrities influences to buy chips and rest are the family own

decision.

From the above table we can see that customers buy mostly chips on travelling and rest of the malls and

colleges.

The study shows that television emerges as the best media for advertisement of snacks that compel

consumer to buy. It is much more than other ways as out of 100 respondent 60 are attracted throughtelevision media while the internet are the least attracting, media.

We can see that see that the maximum sale is given by Frito lays which is 60%and it has the market

leader in snacks.

The study shows that 50%of the retailer would like to see the change in quantity, 10% in flavours, 30%

in price, 10% in package.

The study shows that mostly people are loyal to the brand as in the absence of availability of their brand

mostly people like to search for it sometimes they are ready to postpone their purchase.


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Chapter NO 6

Suggestion


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Analyzing and identifying major competitors keeping a tab on their strengths and weakness. ITC should do more promotion of its bingo as it is new to the market to have a leading edge

from its competitors. its needs to capture more markets in rural area as well as some USP.

ITC should concentrate more on advertisement of its products on tv during the peak hours and it

should put on newspaper in the rural areas

Sponsorship to local events would be efficient marketing techniques and should motivate

retailers to sell snacks

Some of the retailer did not keep bingo while keeping with frito lays and balaji. Constant feedback from the customer would be beneficial for the development of the products.


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Chapter No 7

Conclusion


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The overall conclusion derived from this study is that the snacks industry enjoys a very good and strong

position in Indian market, as such chips is demanded and necessary goods of day to day consumption.

Every section of the society whether it is middle, upper or higher segment consume snacks. Basically as

per the research it is found that the major section of the youth population consumes chips in which

crispiness and freshness, flavours plays major role. Low price snacks has major market share in rural

areas. The major aspect of consumer buying behaviour in terms of promotional benefits which came

into being after this research is that consumers are satisfied with the quality and other major aspects of

the respective commodity, some small benefits or schemes are not going to distract them with their

brand loyalty.

As such in this study it is found that although consumers are not satisfied and not having proper

knowledge about various promotional scheme of their snacks, but still they are not satisfied ,want to

continue and recommend the same brand to others too .this over all study reveals the fact that it is the

functionality in terms of efficiency and effectiveness of the product which overall affects the consumer

purchase decision making brand promotion, advertisement celebrity endorsement only cannot attract

customer .so the marketer should use more effective tools to communicate the same to its target

customer from attracting for additional benefits and offers.


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Bibliography1. References2. Internet References (websites)3. ITC PORTAL WEBSITE www.itcportal.com4. ITC E-CHOUPAL WEBSITE www.echoupal.com5. ITC AGRI-BUSINESS WEBSITE www.itcabd.com6 . FRITO LAYS WEBSITE www.pepsico.com7 . FRITO LAYS BLOG www.fritolayindia.blogspot.com8. BINGO WEBSITE www.bingeonbingo.com9. Internet References (articles)10. ITC LAUNCHES BINGOwww.itcportal.com/newsroom/press_releases_14mar07.htm11.BINGO ITC HAS FINALLY GOT IT !!www.rediff.com/money/2007/may/01bspec.htm12. FRITO LOSES MARKET SHARE TO BINGOwww.moneycontrol.com/india/news/business/frito-lay-loses-snack-mkt-share-toitcs-bingo/20/35/30032513. ITC PEPSICO BATTLE IT OUT IN WAFERS MARKETwww.itcportal.com/newsroom/press06june07-b.htm


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APPENEDICES

Questionnaire for RetailerOutlet name:Address:

Q 1. Do you sell snacks ?a)Yes b) No

Q 2. How frequently do you buy chips?a)Every alternate day b)Weeklyc) Monthly d) Less than once a month

Q 3. Which type of brand of chips you sell more?a)Lays b)Bingoc)Haldiram d)Balaji e) Uncle chips

Q 4. According to you whose opinion matters influences most to the customers when theydecide on which chips to buy?a)Friends b)Familyc)Own decision d)Celebrities

Q 5. Where customers do buys chips mostly?a)Workplace b)College

c) On travelling d) At Malls during Picnics and Outings

Q 6. What do customers look for when they buy chips?a)Freshness b)Crispiness c)Flavors d)Variety

Q 7. According to you which media of advertisement attracts more customer to buy Bingo?a)Television b)Internetc) Hoarding d)Newspaper

Q 8. Which company gives maximum counter sales related to snacks?a)ITC (Bingo) b) Frito laysc)Haldiram d) Balaji

Q 9. Between Lays and Bingo, which according to you is Popular Brand Lays/Bingoa)Lays b) Bingo

Q 10. Why?a) Tastes better b) Easily Available

Q 11. What are the changes would you like to see in ITC Bingo?a) Flavours b) Quantityc) Price d) Package

Q 12. If your preferred brand is not available for the repeat purchases then what will you do?a) Wait for availability b) Change the brandc)Go to other wholesaler to search for your preferred brand d) Nothing


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