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Marketing Strategies uncle chips

Date post: 12-Oct-2015
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Marketing strategies to relaunch uncle chips in untapped areas of country
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Sidharth Nikhra (32), Deepthi P (33), Mohit Paliwal (34), Swarnima Pandey (35), Kavita P (36)Brand HistoryLaunched in 1992, Uncle Chipps was a pioneer in branded potato chips in India.Market leader with 71% market share until 1998.Saw competition bring its market share down to 30-35% by 2000.It was brought down to 0.95% by 2012.Originally owned by theUncle Chipps Company Ltd, it was bought over byFrito-Lay,PepsiCo's snacks division in October 2000.

COMPETITIVE LANDSCAPEPepsiCo Inc enjoys 35.5% market share in Sweet and Savoury Snacks category in 2012.Frito-Lay India maintained category leadership, boasting a 36.5% value share in 2012.In 2012 however value share decreased slightly due to the strong competition from regional players. With many serious players in the market, the price-based competition intensified and customer loyalty enjoyed by the segment was eroded.GeographiesCategoriesCompanies200820092010201120122013IndiaSweet and Savoury SnacksPepsiCo Inc40.139.337.436.736.535.1IndiaSweet and Savoury SnacksHaldiram Foods International Ltd23.024.224.124.123.723.5IndiaSweet and Savoury SnacksBalaji Wafers Pvt Ltd7.07.27.57.98.38.8IndiaSweet and Savoury SnacksITC Group6.66.77.26.86.66.9Market ShareBrand Share

Brand Share- Uncle Chips

CONSUMER BEHAVIOUR ANALYSIS

Manufacturers are expected to launch new products which are both healthy and tasty.

Niche products like low-fat, sugar-free and low-salt snacks are expected to gain popularity.

Consumers will eventually give more importance to the ingredients used in making the product.

Demand is expected to come from rural areas, which are still not saturated like the urban market.

Growth will be mainly attributable to high sales from snacks at lower price points priced between Rs5-10.

Manufacturers will come up with innovative flavours and shapes to drive sales, mainly targeting children.

ObjectivesCurrent market share in the Wafers segment is 8.8% i.e. approximately Rs. 602 crores, hence Uncle Chipps needs to up its ante to compete with local brands as well.Product market expense needs a leverage in order to promote the brand through advertisementsConsumer interaction needs an impetus mainly through social and digital media as well as print mediaThe youth of today needs to see Uncle Chipps in a different lightDue to high recall value of the product, any investment made in marketing will act as a long term benefit.Marketing StrategiesTarget Markets DemographicsGeographical- Current Serial NoProductFlovourState1Uncle Chipps Potato Chips INR 5 Uncle Chipps Potato Chips INR 10Plain SaltedUttar Pradesh, Uttarakhand, Jammu and Kashmir, Himachal Pradesh, Haryana, Punjab, Bihar, West Bengal, Jharkhand, Orissa, Arunachal Pradesh, Assam, Meghalaya, Mizoram, Sikkim, Manipur, Nagaland, Tripura, Chandigarh, National Capital Territory of Delhi, Andhra Pradesh, Chhattisgarh, Goa, Gujarat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Rajasthan, Tamil Nadu, Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu2Uncle Chipps Potato Chips INR 5 Uncle Chipps Potato Chips INR 10 Spicy TreatUttar Pradesh, Uttarakhand, Jammu and Kashmir, Himachal Pradesh, Haryana, Punjab, Bihar, West Bengal, Jharkhand, Orissa, Arunachal Pradesh, Assam, Meghalaya, Mizoram, Sikkim, Manipur, Nagaland, Tripura, Chandigarh, National Capital Territory of Delhi3Uncle Chipps Potato Chips INR 5 Uncle Chipps Potato Chips INR 10

Papri Chat, Sendha Namak, Chilli Masala, Jhakaas Tomato Twist Uttar Pradesh, Uttarakhand, Jammu and Kashmir, Himachal Pradesh, Haryana, Punjab, Chandigarh, National Capital Territory of Delhi

Geographical Proposed Positioning- Proposed1. Connection: Uncle Chipps is warm playful, lively, companionable and traditional-at-heart', just like the Uncle everyone in the family related to and no familygathering is complete without.2. Value addition: The brand will offer various range of chips with many flavors made especially for India. Together with many new flavors, including new addition, it will easily catch the imagination of Indian consumer.

The Original CHIPS of INDIAProduct Line- CurrentExisting Product lineChilli MasalaJhakaas Tomato Twist Paapri ChaatPlain SaltedSendha NamakSpicy Treat

Product Line - Expansion

Price/Quantity- Proposed33%50%25%10%AdvertisingTelevision Commercials/YoutubeTVC will also run in regional languages.Social MediaFacebook & TwitterSign Boards and HoardingTier 1 and Tier 2 Cities and Rural MarketPrint MediaNews Paper , Magzines

More Marketing strategies-Sponsorship College EventsCultural EventsMall kiosk promotional events

2. Continue with the discountsProduct innovation-Introduction of new flavors

3. Collaborating with kids cartoon characters

Distribution OutletCollaboration to retail chains to promote the productVisibilities all across the retail areas with banners, posters and sales offers. Stacks and shelves in cheap rates should be provided to small daily needs shop, so that they also promote our product.It should be in reach of the customer, mode and medium can vary.How are we going to do that?

Social Media- FacebookAn online marketing campaign Share your Hi5MomentThis encourages one to participate in the campaign.People will share their happy moments with family, friends or colleagues that they have enjoyed having uncle chips as a part of the meal.We will winners also, winner will get a special gift hamper of uncle chipsIntroduction to a FB app, which allows customer to play games such as cross word or some math puzzles.

Social Media- TwitterAn online marketing campaign Share your #Hi5MomentwithUncleChipsThis encourages one to participate in the campaign.

#Hi5MomentwithUncleChipsBrand Ambassador- OptionalSomeone who is famous among young and old both.A personality which resemble the positioning of the brand The ORIGINAL Chips of INDIA.The personality can be a from film fraternity, a sports star.

Launching eventGrand launching event It gives a complete media coverageBefore the event prints advertisements in news paper and TVC.We can cash on the Brand name of the brand Ambassador.

This will create a buzz in the market and in the customer also.This buzz and curiosity will give the brand a grand new launch

BudgetsMedia Budgets- TVC- 10 crore (Target- Kids channel, Youth channels)Repeat shows slotsPrint and radio 1 crore Social Media-Facebook App- 50 KTwitter - FreeYoutube - FreePhysical Hoarding and BannersHoarding & Banners- 5 CroreLaunch Event Cost- 35 lakhMiscellaneous Expenses- 1 Crore

Why only Uncle Chipps?As we know Pepsico has a lot of brands in its basket.Uncle chips is the only brand which people can associate with because of its large heritage that they had.People still remember the catchy tag line Bole mere lips , I love uncle chipps .Its Re-introuction will trigger emotional connect easily with the consumer.ConclusionPepsico has lost its market share in recent years.Re- Introduction will ultimately Pepsicos market share will increase. Consumer will get more options to choose from.

THANK YOU


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