ACT II
POPCORN
Presented byAbhishek Agarwal
Debjani ChakrabortyDebraj Roy
Ekta MarwahMadhulika Mishra
Malini MathurPriya AroraRahul Arora
Introduction
•Came Into existence as ACT 1 in 1981•In 1984, Golden Valley developed microwave popcorn bag.•In 1991 ,Golden Valley was acquired by ConAgra Inc and launched in 130 countries.•Marketed under ACT II and Orville Redenbacher's brand name.•Various flavors were made available through out the world.•The Microwave popcorn has a shelf life of 1 year.
ACT II IN INDIA• Act II was introduced in India in 1999.• Common consumption was in movie theaters
and outdoor parks.• Earlier Microwave popcorns were made and
later instant popcorns were introduced.• Act II launched in many Indian centric
flavors'.• The brand did promotion Via advertisement
banking on the “Ease Of preparation” & “Even Papa can cook”
• Popcorn are one of the healthiest snack available.
• In 2008 ,ACT II was a Rs 40 Crore Brand.
Objectives
• To know the market share of ACT II popcorn in Gurgaon
• To compare ACT II with other major competitors
• To suggest various measures to increase the market Share of ACT II popcorn
STRENGTHS
• Affordable by all• Instant food• Packaging and Processing• Variety• Healthy and tasty snack
WEAKNESS
• Not considered as a regular snack.
• Negligible presence in the rural sector.
OPPORTUNITIES
• Opportunities for growth.• Target new distribution
channels.• ATFL emphasized more on R&D
to develop new products and flavors.
THREATS
• Strong competition from the snack food.
• Popcorn available at multiplex.• Health hazards for kids.
Data collection methodologyCollection of Primary Data1.Retail Audit
2.Questionnaire
3. Short interviews
Collection of secondary data
QuestionnaireName …………………………………………………….Age …………………………………….................Designation……………………………………………………Q1. Do you eat Popcorn?
a)Yes b)NoQ2. How often do you eat popcorn? a)Daily b) weekly c)Monthly d)whenever I go for a movieQ3. Which Brand do you prefer? a)Act II b)Magic c)street hawker d)local Q4.Which flavors do you like the best? a)Golden sizzle b) Classic salted c) butter pepper d) chili surpriseQ5.What is your favorite snack? a)Chips b) namkeen c)biscuits d) any other…….Q6. Which flavors would you be willing to try? a)Cheese b) schezwan c) caramel d) any other………………………….Q7. Have you gone for a repeated purchase? a) Yes b) NoQ8. What price are you willing to pay for ……gm ? a)Rs 5 b) Rs. 10 C) Rs.30 d)Rs.40Q9 ) Do you think popcorn at movie theaters are overpriced? a)Yes b) No
ACT II32%
Lays49%
Haldirams19%
Market Shares of Different Brands
12%
37%
51%
Family Members
22 to 44 & Above
7%
31%
31%
32%
Consumption Rate
DailyWeeklyMonthlyWhenever I go for a movie
75%
4%
10%10%
Brand Preference
Act IIMagicStreet HawkerLocal
53%
25%
22%
Snack Preference
Lays Chips
Haldiram bhel puri
Others
21%
43%
26%
10%
Flavor Preference
Golden Sizzle
Classic Salted
Butter Pepper
Chilli Surprise
28%
33%
23%
18%
Preferences for new Flavor
Cheese
Schezwan
Caramel
Any Other
80%
20%Ratio of Repeat Purchases
YesNo
19%
61%
15%4%
Prices Willing to be paid by consumers
5 to 1010 to 15 15 to 20`20 & above
85%
15%
Are popcorns available at movie overpriced
Yes No
56%31%
13%
Availability of Packets(Quantity Sold)
30 & above
30 & be-low
Zero
ACT IIpopping its way to the countryside!
1. lack of presence in the rural market
2. Lack of awareness in the lower middle class regarding branded popcorn
3. Expect the prices to be lower than the present prices.
SEGMENTATION
Branded foods variety of flavors Healthy fun snacksConvenience snacks
TARGETING
females middle class market pester power youth
POSITIONING
campaign theme “ even papa can cook “
low in fat and calorie content
Strategic positioning
Product• A warm, nutritious snack that is
fun to share with your family.• Available in two variants:
• Launched in 1999.followed by introduction of ‘ACT II snacks’ which failed miserably
TYPE FLAVORS QUANTITY SERVING EXPIRY
MICROWAVE NaturalButterButter loversSweet n salty
85 gms24gms
4 people 12 months
INSTANT Classic saltedGolden sizzleButter pepperChilli surpriseTomato chilli
60 gms 3 people 8 months
• Nutritional information:Edible oilIodized saltZero transfatCholesterolHigh fiberNo sugar
Recommendations• Introduction of new flavors:Schezwan, cheese, caramel, jeera, green
mango.Help in increasing trial of product• Launch a ‘Zero Fat‘ version• Introduce ready to eat popcorn in the form
of ‘popcorn balls’• Introduce new products like ACT II corn
chips, sweet corn, Potato Starz and Potato Heartz.
Place
• Mostly available in urban market in corner stores, general stores & supermarkets
• Weak penetration in rural market• ACT II vendors are also found
few and far between localized shopping arcades
Recommendations• Increase distribution tie-ups with--- multiplexes---organized DVD retail shops like
seventymm etc---Moser baer model---school and office cafeterias• Increase the distribution channel
margins to wholesalers and retailers• Establish vending machines at malls
, carnivals and other events• Increase the distribution of Rs 5
instant popcorn variant in rural markets
Price
TYPE FLAVOR SERVING QUANTITY PRICE
Microwave NaturalButter loverButterSweet and salty
4 people 85 gm Rs 35
Instant Classic saltedGolden sizzleChilli surpriseButter pepperTomato chilli
3 people 60 gm30 gm100 gm (family pack)
Rs 10Rs 5Rs 15
Collaborate with multiplexes to deliver ultimate cost advantage to consumers
Road side popcorn is priced at Rs 5 for 50 gm
Competition
Frito-Lay lays chips are priced at Rs 10 for 30 gmRs 20 for 70 gm
Haldirams Bhel Puri priced atRs 33 for 200gm
Promotion
• ACT II promotes through media like TV ads, Billboards, Hoardings, Posters, sales promotion , events, Internet etc
• Insignificant promotion initiative in few cricket tournaments
• Two variants of TV ads---”even papa can cook”---”prepare ACT II during
commercial break”
Recommendations • Celebrity endorsements• Promote on the health plank• A snacking alternative for
diabetics• Pop , peek & win promotional
campaign• Movie free with ACT II popcorn• Popfest- movie marathon
• Increase TV presence by releasing ad campaigns
• Add free popcorn recipes inside ACT II packets
• Club with other ATFL products i.e. bundling
• Offer quantity discounts – e.g.. save Rs 5 on 3 packets of ACT II instant popcorn
• Educate consumer about ease of cooking using microwaves
• Sell it as a ‘regular snack’